978-0134149530 Chapter 12 Lecture Note Part 2

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Selecting Advertising Media

The major steps in advertising media selection are (1) deciding on reach, frequency, and

impact; (2) choosing among major media types; (3) selecting specific media vehicles; and (4)

deciding on media timing.

Deciding on Reach, Frequency, Impact, and Engagement. Reach is a measure of the

percentage of people in the target market who are exposed to the ad campaign during a given

period of time. Frequency is a measure of how many times the average person in the target

market is exposed to the message.

The advertiser must decide on the desired media impact—the qualitative value of a message

exposure through a given medium.

Typically, the advertiser wants to choose media that will engage consumers rather than simply

reach them.

Although Nielsen is beginning to measure levels of television media engagement, such measures

are hard to come by for most media.

Choosing Among Major Media Types (Table 12.2). The media planner has to know the

reach, frequency, and impact of each of the major media types.

Today’s marketers want to assemble a full mix of paid, owned, earned, and shared media that

create and deliver engaging brand content to target consumers.

Another important trend affecting media selection is the rapid growth in the number of media

multitaskers, people who absorb more than one medium at a time.

Use Key Term Advertising Media here.

Use Critical Thinking Exercise 12-7 here.

Use Table 12.2 here.

Major media types:

Television

Online, mobile, and social media

Newspapers

Direct mail

Magazines

Radio

Outdoor

Selecting Specific Media Vehicles. The media planner now must choose the best media

vehicles—specific media within each general media type.

Media planners must compute the cost per thousand persons reached by a vehicle.

The media planner must also consider the costs of producing ads for different media.

The media planner must balance media costs against several media effectiveness factors.

Audience quality

Audience engagement

Editorial quality

Deciding on Media Timing. The advertiser must decide how to schedule the advertising

over the course of a year.

Some marketers do only seasonal advertising: For instance, P&G advertises its Vicks NyQuil

only during the cold and flu season.

1. Evaluating Advertising Effectiveness and Return on Advertising Investment

Advertising accountability and return on advertising investment have become hot issues for

most companies.

Advertisers should regularly evaluate two types of advertising results:

Measuring the communication effects of an ad or ad campaign tells whether the ads and

media are communicating the ad message well.

Sales and profits effects of advertising are often harder to measure. Sales and profits are

affected by many factors besides advertising—such as product features, price, and

availability.

One way to measure the sales and profit effects of advertising is to compare past sales and profits

with past advertising expenditures.

Use Key Term Return on Advertising Investment here.

Use Marketing at Work 12.2 here.

Other Advertising Considerations

Organizing for Advertising

Different companies organize in different ways to handle advertising.

In small companies, advertising might be handled by someone in the sales department.

Large companies set up advertising departments whose job it is to set the advertising budget,

work with the ad agency, and handle advertising not done by the agency.

Use Key Term Advertising Agency here.

Advertising agencies employ specialists who can often perform advertising tasks better than the

company’s own staff.

Most large advertising agencies have the staff and resources to handle all phases of an

advertising campaign for its clients, from creating a marketing plan to developing ad campaigns

and preparing, placing, and evaluating ads.

International Advertising Decisions

International advertisers face many complexities not encountered by domestic advertisers.

The most basic issue concerns the degree to which global advertising should be adapted to the

unique characteristics of markets in various countries.

Standardization produces many benefits—lower advertising costs, greater global advertising

coordination, and a more consistent worldwide image.

There are also drawbacks. It ignores the fact that country markets differ greatly in their cultures,

demographics, and economic conditions.

Global advertisers face several special problems.

Advertising media costs and availability differ vastly from country to country.

Countries differ in the extent to which they regulate advertising practices.

Although advertisers may develop global strategies to guide their overall advertising

efforts, specific advertising programs must usually be adapted to meet local cultures and

customers, media characteristics, and advertising regulations.

Use Linking the Concepts 2 here.

PUBLIC RELATIONS

Public relations departments may perform any or all of the following functions:

Press relations or press agency: Creating and placing newsworthy information in the news

media to attract attention to a person, product, or service.

Product publicity: Publicizing specific products.

Public affairs: Building and maintaining national or local community relations.

Lobbying: Building and maintaining relations with legislators and government officials to

influence legislation and regulation.

Investor relations: Maintaining relationships with shareholders and others in the financial

community.

Development: Public relations with donors or members of nonprofit organizations to gain

financial or volunteer support.

Public relations is used to promote products, people, places, ideas, activities, organizations, and

even nations.

Use Chapter Objective 4 here.

The Role and Impact of PR

Public relations can have a strong impact on public awareness at a much lower cost than

advertising can.

The company does not pay for the space or time in the media.

If the company develops an interesting story or event, it could be picked up by several different

media, having the same effect as advertising that would cost millions of dollars.

It has more credibility than advertising.

Public relations is sometimes described as a marketing stepchild because of its often limited and

scattered use.

Use Discussion Question 12-4 here.

Major Public Relations Tools

Public relations uses several tools:

News

Speeches

Special events

Written materials

Audiovisual materials

Corporate identity materials

Public service activities

Use Discussion Question 12-5 here.

Management should set PR objectives, choose the PR messages and vehicles, implement the PR

plan, and evaluate the results.

Use Critical Thinking Exercise 12-8 here.

Video Case: Kmart

On the heels of its wildly popular “Ship My Pants” ads, Kmart struck again with an ad that was

considered hilarious by some, offensive by others, and a stroke of genius by advertising critics.

Its latest ad, “Big Gas Savings,” was launched on YouTube prior to airing on television. And like

its “Ship My Pants” predecessor, the ad also went viral.

In addition to relying on potty humor to pull its sales out of the toilet, Kmart struck a very timely

note in the tune of customer value—saving money on gasoline. Customers could save 30 cents a

gallon on gas by spending $50 or more in its stores. Millions of customers took advantage of the

offer, driving traffic into Kmart stores.

After viewing the video featuring Kmart, answer the following questions:

12-15. What is the advertising message in the Kmart “Big Gas Savings” ad?

12-16. Why did Kmart choose to air this video on YouTube?

12-17. Is this Kmart ad effective? Explain.

Company Cases

12 Allstate/5 Goldieblox

See Appendix 1 for cases appropriate for this chapter.

Case 12, Allstate: Bringing Mayhem to the Auto Insurance Advertising Wars. With an

endlessly flexible advertising mascot, Allstate is driving its message to consumers and keeping

competitors on their toes.

Case 5, GoldieBlox: Swimming Upstream Against Consumer Perceptions. A new toy

company, GoldieBlox is out to change how people think of toys for girls with the message that

success comes not from playing with dollhouses, but from building them.

MyMarketingLab

If assigned by your instructor, complete these writing sections from your Assignments in the

MyLab.

12-18. Name and describe the various execution styles for presenting messages and

provide an example of each style different from the ones in the chapter. (AACSB:

Communication)

12-19. Discuss the major advertising objectives and describe an advertisement that is

attempting to achieve each objective. (AACSB: Written and Oral Communication;

Reflective Thinking)

GREAT IDEAS

Barriers to Effective Learning

1. Some students will need to have explained in detail the differences among the various

communication methods outlined in the chapter. Figure 12.1 will help in this regard.

Asking students for examples from each channel of communication will also help. Many

students will be able to give examples from their parents’ work.

2. There is a tremendous amount of information delivered in only a few pages in the

advertising section. The differences among informative, persuasive, and reminder

advertising may seem simple to students at first, but these concepts should be studied in

some detail to ensure understanding. Again, examples are a tremendous help here.

3. Message execution is also a key concept. Many students will have trouble with the

various execution styles and will particularly have difficulty with slice of life versus

lifestyle. There may also be difficulty in understanding the difference between fantasy

and mood or image. Again, use examples of your own and from the class, as well as those

shown in the text.

4. Sales promotions, particularly consumer promotions, will be familiar to students. It is

important that they understand the terminology, however. Trade promotion is also fairly

simple, although the difference between a discount and an allowance is crucial to

understand. Business promotions, as well, will go quickly. You can tie this section back

into the push strategy to show how a strategy gets turned into tactics.

5. Public relations is a mystery to almost everyone. There will be some questions regarding

the product publicity done by public relations versus that done by a marketing manager,

but these questions can be answered by the notion of free because the vast majority of

what PR does is to get the company in the press. One of the examples of masterful public

relations the book points out is Johnson & Johnson during the Tylenol product-tampering

scare. This example alone is often enough to explain the importance of this

communication channel.

Student Projects

1. Many supermarkets will give you coupons based on what you purchase. What type of

promotion is this and do you believe it to be effective?

2. Pick up a Sunday newspaper (they always have the most advertisement in them).

Remember the conversation on advertising objectives. Now find two examples of

advertisements that inform, persuade, and remind.

3. Review the five components of the promotion mix. Find a merchant that is utilizing all

five components and describe how they are using each.

4. Why are companies doing less broadcasting and more narrowcasting? What is a

company that uses both and give examples of how they are accomplishing this?

5. Describe the five promotion tools and discuss the factors that must be considered in

shaping the overall promotion mix.

Small Group Assignments

Form students into groups of three to five. Each group should read the opening vignette to the

chapter on GIECO. Each group should then answer the following questions:

1. How did GIECO break through the clutter of all the advertising done by other insurance

companies to get recognized?

2. What type of execution style did GIECO employ in its “15 minutes can save you 15

percent or more” campaign?

3. Would GIECO’s method of marketing communication work in an international

environment? Why or why not?

4. What’s next for GIECO? What new promotional direction would you suggest for them

now?

Each group should share its findings with the class.

Individual Assignments

Marketers can choose from two basic promotion mix strategies—push or pull promotion. First,

describe each. Larger companies typically use a combination of both strategies. Find two

examples of companies that are making successful use of BOTH promotion mix strategies.

Describe what they are doing and why you believe it to be successful.

Think-Pair-Share

Consider the following questions, formulate answers, pair with the student on your right, share

your thoughts with one another, and respond to questions from the instructor.

1. What is an advertising objective?

2. What is the main difference between reach and frequency? Write a definition of each.

3. How is public relations different from advertising and sales promotion?

4. What are the advantages and disadvantages of the various types of media?

5. What form of media do you believe would be best for reaching a 70-year-old retired

school teacher? For reaching a 12-year-old girl?

Classroom Exercise/Homework Assignment

Examine the advertising for cigarettes over time. Spend some time researching how advertising

for cigarettes has changed over the past 50 years. Look at old ads from the 1950s and 60s and

compare them with modern ads. How has the message changed? During which time frame do

you believe the advertising to be the most effective? Why?

Classroom Management Strategies

This chapter is full of good information. Make sure to keep the focus on integrating all

communication channels as you go through the material. As discussed previously in Barriers to

Effective Learning, use examples liberally through your discussion to drive home the importance

of cohesive marketing messaging.

1. The introductory sections are short and can be covered in 10 minutes. These sections set

the stage for the chapter and provide valuable background information so that the

remaining material is put into the proper context. Figure 12.1 illustrates the tools in the

communication process.

2. Setting the Overall Communication Mix goes through the different communications

channels, and 15 minutes should be spent here. Attention should be paid to the push and

pull strategies. Figure 12.2 illustrates these two strategies in a very clear format.

3. The section on Advertising is dense and should take 20 minutes. There are several

subsections here, with the heart of the section in Developing Advertising Strategy. Table

12.1 discusses advertising objectives.

4. Public relations can be covered in 15 minutes. Be sure to talk in some detail about the

different tools PR managers have at their disposal so that the students understand this is

not just about getting mentions in the newspapers, even though that is extremely

important and one of the key focus points for PR departments.

PROFESSORS ON THE GO

Communicating Customer Value: Advertising and Public Relations

Key Concepts

The promotion mix

The need for integrated marketing communications

The communications process

Many companies are adopting the integrated marketing communication concept.

Discuss two major problems that this marketing communications philosophy is

designed to remedy.

Find an example of the communication process shown in Figure 12.1. Illustrate and

explain each component part.

What is integrated marketing communications? Why has a shift in this direction

occurred?

Key Concepts

Steps in developing effective communications

Setting the total promotion budget

Setting the overall communication mix and integrating the mix

The role of public relations

Compare and contrast personal and non-personal communication channels.

How do you determine communications objectives?

Find at least five different forms of appeals in magazine advertisements. Compare and

contrast the effectiveness of each. How were the appeals communicated to you?

Find at least two examples each of push and pull strategies used by marketers.

What is the major advantage of the objective-and-task method for setting the

promotional budget? What is the major drawback?

Describe the six roles that public relations can perform. Which do you believe to be

the most crucial to the success of a business?