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Part 4: Deliver and Communicate the Value Proposition

Chapter 13

Promotion I: Advertising and Sales Promotion

I. CHAPTER OVERVIEW

Marketing communication can take many forms from creative slogans printed on t-shirts, to chalk

art printed on university sidewalks, to newspaper advertisements. The list can go on and on and is

limited only by imagination. Chapter 13 focuses on the process of integrated marketing

communication designed to influence target markets and create successful marketing. Students are

introduced to the communication model. Many students enrolled in this course probably believed

that the entire term would be spent on advertising—believing that marketing communications (or

promotions) and advertising is the same thing. In this chapter, the difference becomes apparent.

This chapter teaches the basics of advertising and consumer sales promotion Students learn about

creating advertising campaigns and the basics of consumer sales promotion. This information,

combined with the remaining elements of promotion, discussed in Chapter 14, give students a great

foundation for truly understanding how an integrated marketing communication process works.

II. CHAPTER OBJECTIVES

1. Understand the communication process and the traditional promotion mix.

2. Describe the steps in traditional and multichannel promotion planning.

3. Tell what advertising is, describe the major types of advertising, discuss some of the major

criticisms of advertising, and describe the process of developing an advertising campaign

and how marketers evaluate advertising.

EXPLAIN WHAT SALES PROMOTION IS AND DESCRIBE THE

DIFFERENT TYPES OF CONSUMER AND B2B SALES PROMOTION

ACTIVITIES.

III. CHAPTER OUTLINE

►MARKETING MOMENT INTRODUCTION

Ask students to recall a “negative moment” for a company (such as the finger in chili for

Wendy’s [later proved false] or Martha Stewart and K-Mart). How might this negative publicity

impact a consumer’s perception of a company?

p. 411 Real People, Real Choices—Here’s My Problem at the Pitch

Agency

After a series of business decisions across promotions, operations,

and menu innovation, Burger King was posting U.S. sales gains

when competitors were failing. By mid-2015 Burger King was

outperforming McDonald’s and Wendy’s by significant margins in

sales. However, the brand was lagging its main competitors in

Part 4: Deliver and Communicate the Value Proposition

imagery. In the third quarter we turned our attention to

refining our advertising strategy and optimizing communications.

Mass communications for quick-serve restaurants (QSRs) must

drive traffic quickly, often to promote specific menu items with

immediate and ambitious sales gains. We needed to find a way to

develop and implement long-range brand planning. My role was

to create a strategy that would enable Burger King to tell a

consistent brand story with the flexibility to support a wide range

of new and core menu items. As the brand evolved, The King was

introduced to bring a younger audience and later he was retired in

favor of a broader reaching “Taste is King” campaign. The

question became, what’s next for BK marketing?

As CSO (Chief Strategy Officer) of Pitch, I partnered with Burger

King to get the ultimate strategy, with inputs from data mining,

consumer research, and competitive analysis. We reached a key

decision point for the Burger King brand: Should we bring back

The King or find a new road? Should Burger King’s new

long-range strategy take advantage of latent equity in a past icon?

Sarah considered her options:

1. Leave The King in the past where he belongs.

2. Bring back The King as an instantly recognizable icon.

The vignette ends by asking the student which option he/she

would choose.

Sarah chose option #2.

p. 412

1. COMMUNICATION MODELS IN A DIGITAL WORLD

THAT IS “ALWAYS ON”

Promotion is the coordination of marketing communication

efforts to influence attitudes or behavior. This function is the last

of the famous four Ps of the marketing mix, and it plays a vital

role. Of course, virtually everything an organization says and does

is a form of marketing communication.

Marketing communication performs one or more of four roles:

It informs consumers about new goods and services.

It reminds consumers to continue using certain brands.

It persuades consumers to choose one brand over

others.

It builds relationships with customers.

Integrated marketing communication (IMC) is the process that

marketers use “to plan, develop, execute, and evaluate

coordinated, measurable, persuasive brand communication

programs over time to targeted audiences.

Figure 13.1

Snapshot: Three

Chapter 13: Promotion I: Advertising and Sales Promotion

p. 413

p. 414

p. 415

To achieve marketing communication goals, marketers use a

multichannel promotional strategy where they combine

traditional marketing communications (advertising, sales

promotion, public relations, and direct marketing) activities with

social media and other online buzz-building activities.

Models of Marketing Communication

The traditional communication model, is a “one-to-many”

view in which a marketer sends messages to many

consumers through advertising, including mass media;

out-of-home, such as billboards; and Internet advertising.

The importance of the updated “many-to-many” model of

marketing communication has increased because of social

media and its use in word-of-mouth communication,

whereby consumers look to each other for information and

recommendations.

Marketers also talk one to one with consumers and

business customers.

►Marketing Moment In-Class Activity

Ask students to identify examples of ads that serve a reminder

purpose (e.g., Coke, Pepsi, Got Milk?). Do students see a

tendency to use reminder advertising in a particular stage of the

product life cycle (i.e., maturity)?

1.1 The Communication Model

Promotional strategies can succeed only if customers understand

what we’re trying to say. The communication model is a good

way to understand the basics of how any kind of message works.

In this perspective, a source transmits a message through some

medium to a receiver who (we hope) listens and understands the

message.

1.1.1 The Source Encodes

A person or organization, the source has an idea to communicate

to a receiver. Encoding means we can translate our idea into

different forms to convey the desired meaning.

1.1.2 The Message

The message is the actual content of that physically perceivable

form of communication that goes from the source to a receiver.

1.3 The Medium

No matter how the source encodes the message, it must then

Models of

Marketing

Communication

Figure 13.2

Process:

Communication

Model

Exhibit:

Campbell’s

Exhibit: V8

Part 4: Deliver and Communicate the Value Proposition

p. 415

p. 416

transmit that message via a medium, a communication vehicle

that reaches members of a target audience.

1.1.4 The Receiver Decodes

A receiver is there to get the message. Decoding is the process

whereby a receiver assigns meaning to a message; that is, she

translates the message she sees or hears back into an idea that

makes sense to him or her.

1.1.5 Noise

The communication model also acknowledges that noise—

anything that interferes with effective communication—can block

messages.

1.1.6 Feedback

To complete the communication loop, the source gets feedback

from receivers.

Activity: As you were going through your day you were exposed

to many forms of marketing communication. However, noise

probably interfered with most of the exposures. List five different

instances where noise interrupted your ability to decode a

message. Explain what, if anything, a marketer could have done

to help limit some of the noise.

1.2 The Traditional Promotion Mix

Marketers use the term promotion mix to refer to the

communication elements that the marketer controls.

• Advertising

• Sales promotion

• Public relations

• Personal selling

• Direct marketing

The challenge is to be sure that the promotion mix works in

harmony with the overall marketing mix to combine elements of

promotion with place, price, and product to position the firm’s

offering in people’s minds.

Marketers have a lot more control over some kinds of marketing

communication messages than they do others. As Figure 13.3

shows, mass-media advertising and sales promotion are at one

end of the continuum, where the marketer has total control over

the message she delivers. At the other end is word-of-mouth

(WOM) communication, where everyday people rather than the

Exhibit: Clorox

Table 13.1

A Comparison of

Elements of the

Traditional

Promotion Mix

Figure 13.3

Snapshot:

Control

Continuum

Chapter 13: Promotion I: Advertising and Sales Promotion

p. 416

p. 417

p. 418

company run the show. WOM is a vitally important component of

the brand attitudes consumers’ form and of their decisions about

what and what not to buy. Sandwiched between the ends we find

personal selling and direct marketing, where marketers have

some but not total control over the message they deliver, and

public relations, where marketers have even less control.

1.3 Mass Communication: The One-to-Many Model

Mass communications elements of the promotion mix include

messages intended to reach many prospective customers at the

same time.

Advertising is, for many, the most familiar and visible element of

the promotion mix. It is nonpersonal communication from an

identified sponsor using the mass media. The most important

advantage of advertising is that it reaches large numbers of

consumers at one time.

Consumer sales promotion includes programs such as contests,

coupons, or other incentives that marketers design to build

interest in or encourage purchase of a product during a specified

period. Unlike other forms of promotion, sales promotion intends

to stimulate immediate action (often in the form of a purchase)

rather than build long-term loyalty.

Public relations describes a variety of communication activities

that seek to create and maintain a positive image of an

organization and its products among various publics, including

customers, government officials, and shareholders.

1.4 Personal Communication: One-to-One Model

Sometimes marketers want to communicate with consumers on a

personal, one-on-one level. The immediate way for a marketer to

make contact with customers is simply to tell them how

wonderful the product is. This is part of the personal selling

element of the promotion mix mentioned previously. It is the

direct interaction between a company representative and a

customer. The interaction can occur in person, by phone, or even

over an interactive computer link.

Salespeople are a valuable source of communication because

customers can ask questions and the salesperson can immediately

address objections and describe product benefits. Marketers also

use direct mail, telemarketing, and other direct marketing

activities to create personal appeals. Like personal selling, direct

marketing provides direct communication with a consumer or

Part 4: Deliver and Communicate the Value Proposition

p. 418

p. 419

p. 421

business customer.

2. OVERVIEW OF PROMOTIONAL PLANNING

Just as with any other strategic decision-making process, the

development of this plan includes several steps.

2.1 Step 1: Identify the Target Audience(s)

An important part of overall marketing planning is to identify the

target audience(s). Remember, IMC marketers recognize that we

must communicate with a variety of stakeholders who influence

the target market. Of course, the intended customer is the most

important target audience and the one that marketers focus on the

most.

2.2 Step 2: Establish the Communication Objectives

The whole point of communicating with customers and

prospective customers is to let them know in a timely and

affordable way that the organization has a product to meet their

needs. In most cases, it takes a series of messages that move the

consumer through several stages.

The marketer “pushes” the consumer through a series of steps, or

a hierarchy of effects, from initial awareness of a product to

brand loyalty. The task of moving the consumer up the hierarchy

becomes more difficult at each step. The steps are as follows:

Create awareness

Inform the market

Create desire

Encourage purchase and trial

● Build loyalty

►Marketing Moment In-Class Activity

Ask students to imagine they are responsible for launching new

fitness water. Then ask how they would design am IMC plan to

take a potential customer through each stage of the hierarchy of

effects (e.g., to create awareness, sponsor a tennis match and

show tennis players drinking the water).

2.3 Step 3: Determine and Allocate the Marketing

Communication Budget

While setting a budget for marketing communication might seem

easy—you just calculate how much you need to accomplish your

objectives—in reality it’s not that simple. We need to make three

distinct decisions to set a budget:

2.3.1 Budget Decision 1: Determine the Total Promotion

Figure 13.4

Process: Steps to

Develop the

Promotional Plan

Figure 13.5

Snapshot: The

Hierarchy of

Effects

Figure 13.6

Process: Steps in

Developing the

Marketing

Communication

Chapter 13: Promotion I: Advertising and Sales Promotion

p. 421

Budget

Most firms rely on two budgeting techniques: top-down and

bottom-up.Top-down budgeting techniques require top

management to establish the overall amount that the organization

allocates for promotion activities. The most common top-down

technique is the percentage-of-sales method in which the

promotion budget is based on last year’s sales or on estimates for

the present year’s sales. The percentage may be an industry

average provided by trade associations that collect objective

information on behalf of member companies. The advantage of

this method is that it ties spending on promotion to sales and

profits. Unfortunately, this method can imply that sales cause

promotional spending rather than viewing sales as the outcome of

promotional efforts.

The competitive-parity method is a fancy way of

saying “keep up with the Joneses.” This method assumes that the

same dollars spent on promotion by two different firms will yield

the same results, but spending a lot of money does not guarantee a

successful promotion. Firms certainly need to monitor their

competitors’ promotion activities, but they must combine this

information with their own objectives and capacities.

The problem with top-down techniques is that budget decisions

are based more on established practices than on promotion

objectives. Another approach is to begin at the beginning: identify

promotion goals and allocate enough money to accomplish them.

That is what bottom-up budgeting techniques attempt.

This bottom-up logic is at the heart of the objective-task

method, which is gaining in popularity. Using this approach,

the firm first defines the specific communication goals it hopes to

achieve, such as increasing by 20 percent the number of

consumers who are aware of the brand. It then tries to figure out

what kind of promotional efforts—how much advertising, sales

promotion, buzz marketing etc. —it will take to meet that goal.

2.3.2 Budget Decision 2: Decide on a Push or a Pull Strategy

A push strategy means that the company wants to move its

products by convincing channel members to offer them and entice

their customers to select these items—it pushes them through the

channel. This approach assumes that if consumers see the product

on store shelves, they will be enticed to make a trial purchase. In

this case, promotion efforts will “push” the products from

producer to consumers by focusing on personal selling, trade

advertising, and trade sales promotion activities such as exhibits

Budget

Part 4: Deliver and Communicate the Value Proposition

p. 422

at trade shows.

In contrast, a company that relies on a pull strategy is

counting on consumers to demand its products. This popularity

will then convince retailers to respond by stocking these items. In

this case, efforts focus on media advertising and consumer sales

promotion to stimulate interest among end consumers who will

“pull” the product onto store shelves and then into their shopping

carts.

In contrast, a company that relies on a pull strategy is

counting on consumers to demand its products. This popularity

will then convince retailers to respond by stocking these items. In

this case, efforts focus on media advertising and consumer sales

promotion to stimulate interest among end consumers who will

“pull” the product onto store shelves and then into their shopping

carts.

►Marketing Moment In-Class Activity

Ask students to think about how the pharmaceutical industry

might implement a push or a pull strategy. What would each

strategy “look” like (e.g., a “push” sells to doctors while a “pull”

advertises to customers)? How would the promotion mix differ

using the two strategies?

2.3.3 Budget Decision 3: Allocate the Budget to a Specific

Promotion Mix

Once the organization decides how much to spend on promotion

and whether to use a push or a pull strategy, it must divide its

budget among the elements in the promotion mix. Although

advertising used to get the lion’s share of the promotion budget,

today sales promotion and digital marketing such as buzz building

and the use of social media we talked about earlier in this chapter

are playing a bigger role in marketing strategies.

2.4 Step 4: Design the Promotion Mix

Designing the promotion mix is the most complicated step in

marketing communication planning. It includes determining the

specific communication tools that will be used, what message is

to be communicated, and the communication channel(s) to be

employed.

The message should ideally accomplish four objectives (though a

single message can rarely do all of these): It should get attention,

hold interest, create desire, and produce action. These

communication goals are known as the AIDA model.

Chapter 13: Promotion I: Advertising and Sales Promotion

p. 422

p. 423

Activity: Illustrate how the AIDA model works using an example.

Explain your answer.

2.5 Step 5: Evaluate the Effectiveness of the Communication

Program

The final step to manage marketing communications is to decide

whether the plan is working. It is not so easy. There are many

random factors in the marketing environment.

As a rule, various types of sales promotion are the easiest to

evaluate because they occur over a fixed, usually short period,

making it easier to link to sales volume. Advertising researchers

measure brand awareness, recall of product benefits

communicated through advertising and even the image of the

brand before and after an advertising campaign. The firm can

analyze and compare the performance of salespeople in different

territories, although again it is difficult to rule out other factors

that make one salesperson more effective than another does.

Public relations activities are more difficult to assess because their

objectives relate more often to image building than sales volume.

2.6 Multichannel Promotional Strategies

Many marketers opt for multichannel promotional strategies

where they combine traditional advertising, sales promotion and

public relations activities with online buzz-building activities.

Multichannel strategies boost the effectiveness of either online or

offline strategies used alone. In addition, multichannel strategies

allow marketers to repeat their messages across various channels;

this lets them strengthen brand awareness and it provides more

opportunities to convert customers.

Touchpoints refer to any point where consumers come into

contact with a brand.

3 ADVERTISING

Advertising is so much a part of marketing that many people

think of the two as the same thing. Remember, product, price, and

distribution strategies are just as important as marketing

communications.

Advertising is nonpersonal communication an identified

sponsor pays for that uses mass media to persuade or inform an

audience.

TV everywhere (also known as authenticated streaming) is a

term that describes using your Internet-enabled device, like a

Part 4: Deliver and Communicate the Value Proposition

p. 424

tablet or smart phone, to stream content from your cable or

satellite provider.

p. 425

p. 426

3.1 Types of Advertising

The advertisements an organization runs can take many forms.

3.1.1 Product Advertising

With product advertising, the message focuses on a specific

good or service. Most of the advertising we see or hear is product

advertising.

3.1.2 Institutional Advertising

Institutional advertising promotes the activities, personality, or

point of view of an organization or company. Corporate

advertising promotes the company as a whole instead of the

firm’s individual products.

Some institutional messages state an organization’s position on an

issue to sway public opinion, a strategy we call <keyterm

id=”ch13term5″ linkend=”gloss13_005″ preference=”0″

role=”strong”>advocacy advertising</keyterm>.

Public service advertisements (PSAs) are advertisements the

media runs free of charge. These messages promote not-for-profit

organizations that serve society in some way, or they champion an

issue such as increasing literacy or discouraging drunk driving.

3.1.3 Retail and Local Advertising

Both major retailers and small, local businesses advertise to

encourage customers to shop at a specific store or use a local

service.

Figure 13.7

Snapshot: Types

of Advertising

Exhibit:

Cybermentors

Exhibit:

Geigo

Chapter 13: Promotion I: Advertising and Sales Promotion

p. 426

p. 427

3.2 Who Creates Advertising?

An <keyterm id=”ch13term7″ linkend=”gloss13_007″

preference=”0″ role=”strong”>advertising

campaign</keyterm> is a coordinated, comprehensive

plan that carries out promotion objectives and results in a series of

advertisements placed in various media over a period. Although a

campaign may be based around a single ad idea, most use

multiple messages with all ads in the campaign having the same

look-and-feel.

Although some firms create their own advertising in-house, in

many cases several specialized companies work together to

develop an advertising campaign. Typically, the firm retains one

or more outside <emphasis>advertising agencies</emphasis> to

oversee this process. A <keyterm id=”ch13term8″

linkend=”gloss13_008″ preference=”0″

role=”strong”>limited-service agency</keyterm>

provides one or more specialized services, such as media buying

or creative development. In contrast, a <keyterm id=”ch13term9″

linkend=”gloss13_009″ preference=”0″

role=”strong”>full-service agency</keyterm> supplies

most or all of the services a campaign requires, including

research, creation of ad copy and art, media selection, and

production of the final messages.

Big or small, an advertising agency hires a range of specialists to

craft a message and make the communication concept a reality:

Account management: </title><para><inst></inst>The

<emphasis>account executive</emphasis>, or account manager,

is the “soul” of the operation. This person supervises the

day-to-day activities on the account, and is the primary liaison

between the agency and the client. The account executive has to

ensure that the client is happy while he verifies that people within

the agency execute the desired strategy. </inst><title> </inst>The

<emphasis>account planner combines research and account

strategy to act as the voice of the consumer in creating effective

advertising.

Creative services: Creatives</emphasis> are the “heart” of the

communication effort. These people actually dream up and

produce the ads.

Research and marketing services: Researchers</emphasis> are

the “brains” of the campaign. They collect and analyze

information that will help account executives develop a sensible

Exhibit: Land

Rover

Part 4: Deliver and Communicate the Value Proposition

p 427

p. 427

p. 428

strategy.

Media planning: The <emphasis>media planner</emphasis> is

the “legs” of the campaign. He helps to determine which

communication vehicles are the most effective, and recommends

the most efficient means to deliver the ad by deciding where,

when, and how often it will appear.

3.3 User-Generated Advertising Content

The latest promotional craze is to let your customers actually

create your advertising for you. User-generated content (UGC),

also known as <keyterm id=”ch12term20″

linkend=”gloss12_020″ preference=”0″

role=”strong”>consumer-generated media

(CGM),</keyterm> includes the millions of online consumer

comments, opinions, advice, consumer-to-consumer discussions,

reviews, photos, images, videos, podcasts and webcasts and

product-related stories available to other consumers through

digital technology. Marketers that embrace this strategy

understand that it is OK to let people have fun with their products.

Some marketers encourage consumers to contribute their own

do-it-yourself (DIY) ads.

Crowdsourcing is a practice in which firms outsource marketing

activities (such as selecting an ad) to a community of users, i.e., a

crowd. The idea behind crowdsourcing is that if you want to

know what consumers think and what they like, the most logical

thing to do is to ask them.

3.4 Ethical Issues in Advertising

Advertising is manipulative

Advertising is deceptive and untruthful

In addition to fining firms for deceptive advertising, the FTC also

has the power to require firms to run <keyterm id=”ch13term10″

linkend=”gloss13_010″ preference=”0″

role=”strong”>corrective advertising;</keyterm>

messages that clarify or qualify previous claims.

Other ads, although not illegal, may create a biased impression of

products when they use <keyterm id=”ch13term11″

linkend=”gloss13_011″ preference=”0″

role=”strong”>pu!ery</keyterm>—claims of superiority

that neither sponsors nor critics of the ads can prove are true or

untrue. Many consumers today are concerned about

greenwashing, a practice in which companies promote their

products as environmentally friendly when in truth the brand

Chapter 13: Promotion I: Advertising and Sales Promotion

provides little ecological benefit.

Advertising is offensive and in bad taste

Advertising causes people to buy things they don’t

really need

p. 429

3.5. Develop the Advertising Campaign

The following is a description of the steps in creating an

advertising campaign:

3.5.1 Step 1: Understand the Target Audience

The best way to communicate with an audience is to understand

as much as possible about them and what turns them on and off.

Marketers often identify the target audience for an advertising

campaign from research.

Figure 13.8

Process: Steps to

Develop an

Advertising

Campaign

p. 429 3.5.2 Step 2: Establish Message and Budget Objectives

Advertising objectives should be consistent with the overall

communications plan. Advertising objectives will generally

include objectives for both the message and the budget.

Set Message Objectives

Advertising can inform, persuade, and remind.

Set Budget Objectives

Advertising is expensive. An objective of many firms is to

allocate a percentage of the overall communication budget

to advertising.

Use websites here:

www.abercrombie.com

www.hydroxycut.com

Examples of Sex Appeal

p. 430 3.5.3 Step 3: Create the Ads

The creation of the advertising begins when an agency formulates

a creative strategy, which gives the advertising “creative” (art

directors, copywriters, photographers and others) the direction

and inspiration they need to begin the creative process. The

strategy is summarized in a written document known as a

creative brief; a rough blueprint that guides but does not restrict

the creative process. It provides only the most relevant

information and insights about the marketing situation, the

advertising objective, the competition, the advertising target and,

most importantly, the message that the advertising must deliver.

Advertising Appeals

Figure 13.9

Snapshot:

Creative

Elements of

Advertising

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p. 430

p. 433

An advertising appeal is the central idea of the ad and the basis

of the advertising messages. It is the approach used to influence

the consumer. Informational appeals are based on a unique

selling proposition (USP) that gives consumers a clear,

single-minded reason why the product is better at solving a

problem.

Generally, we think of appeals as informational or emotional. Of

course, not all ads fit into these two appeal categories.

Well-established brands often use reminder advertising just to

keep their name in people’s minds or be sure that consumers

repurchase the product as necessary. Sometimes advertisers use

teaser or mystery ads to generate curiosity and interest in a

to-be-introduced product.

Execution Formats

Execution format describes the basic structure of the message.

Some of the more common formats, sometimes used in

combination, include:

Comparison: A comparative advertisement explicitly

names one or more competitors.

Demonstration: The ad shows a product “in action” to

prove that it performs as claimed: “It slices, it dices!”

Brand Storytelling: Modern storytelling commercials are

like 30-second movies with plots that involve the product

in a peripheral way.

Testimonial: A celebrity, an expert, or a “man in the street”

states the product’s effectiveness. The use of <emphasis>

celebrity endorsers</emphasis> is a common but

expensive strategy.

Slice of life: </inst>A <emphasis>slice-of-life</emphasis>

format presents a (dramatized) scene from everyday life.

Lifestyle:</title><para><inst> </inst>A

<emphasis>lifestyle</emphasis> format shows a person or

persons attractive to the target market in an appealing

setting. The advertised product is “part of the scene,”

implying that the person who buys it will attain the

lifestyle.

Rich media. Rich media advertising provides digital ads

that have advanced features.

Tonality

Tonality refers to the mood or attitude the message conveys.

Some common tonalities include:

Straightforward: Straightforward ads simply present the

information to the audience in a clear manner.

Exhibit: Fresh

Step

Chapter 13: Promotion I: Advertising and Sales Promotion

p. 434

Humor:</inst> Humorous, witty, or outrageous ads can be

an effective way to break through advertising clutter.

Dramatic: A dramatization, like a play, presents a problem

and a solution in a manner that is often exciting and

suspenseful—a difficult challenge in 30 or 60 seconds.

Romantic: Ads that present a romantic situation can be

especially effective at getting consumers’ attention and at

selling products people associate with dating and mating.

Sexy: </inst>Some ads appear to sell sex rather than

products. Sex appeal</emphasis> ads are more likely to be

effective when there is a connection between the product

and sex (or at least romance).

Apprehension/fear: </inst>Some ads highlight the

negative consequences of <emphasis>not</emphasis>

using a product. In general, fear appeals can be successful

if the audience perceives there to be an appropriate level

of intensity in the fear appeal.

Creative Tactics and Techniques

Animation and Art: Not all ads are executed with film or

photography.



Celebrities

Jingles are original words and music written specifically

for advertising executions.

Slogans</emphasis> link the brand to a simple linguistic

device that is memorable

(j<emphasis>ingles</emphasis> do the same but set the

slogan to music).

Activity: Describe some of the different advertising appeals used

in campaigns.

►Marketing Moment In-Class Activity

Ask students to recall an advertisement that used sex appeal. Can students also recall the product

category and brand? Have students notice how many could recall the sex appeal but may not be

able to recall the brand.

Use website here: www.ihop.com IHOP slogan–come hungry, leave happy

►Marketing Moment In-Class Activity

If the instructor is musically inclined, hum some jingles and see if students can identify the

product. Ask students to hum an identifiable jingle. Then, note the large number of students who

recognize it (popular ones include the Oscar Meyer Wiener song and the Coke song).

p. 434 3.5.4 Step 4: Pretest What the Ads Will Say

Advertisers try to minimize mistakes by getting reactions to ad

messages before they actually place them. Much of this <keyterm

id=”ch13term15″ linkend=”gloss13_015″ preference=”0″

role=”strong”>pre-testing</keyterm>, the research that

Part 4: Deliver and Communicate the Value Proposition

goes on in the early stages of a campaign, centers on gathering

basic information that will help planners be sure they’ve

accurately defined the product’s market, consumers, and

competitors.

p. 434

p. 435

3.5.5 Step 5: Choose the Media Type(s) and Media Schedule

Media planning is a problem-solving process for getting a

message to a target audience in the most effective way. Planning

decisions include audience selection and where, when, and how

frequent the exposure should be. Thus, the first task for a media

planner is to find out when and where people in the target market

are most likely to be exposed to the communication.

There is no such thing as one perfect medium for advertising.

3.5.6 Step 6: Evaluate the Advertising

With so many messages competing for the attention of frazzled

customers, it is especially important for firms to evaluate their

efforts to increase the impact of their messages.

Posttesting</keyterm> means conducting research on

consumers’ responses to advertising messages they have seen or

heard as opposed to <emphasis>pre-testing</emphasis>, which as

we have seen collects reactions to messages

<emphasis>before</emphasis> they are actually placed in “the

real world.”

Three ways to measure the impact of an advertisement:

Unaided recall tests by telephone survey or personal

interview whether a person remembers seeing an ad

during a specified period without giving the person the

name of the brand.

An <keyterm id=”ch13term34″ linkend=”gloss13_034″

preference=”0″ role=”strong”>aided

recall</keyterm> test uses the name of the brand and

sometimes other clues to prompt answers.

Attitudinal measures</keyterm> probe a bit

more deeply by testing consumers’ beliefs or feelings

about a product before and after they are exposed to

messages about it.

Exhibit: Potato

Goodness

p. 436 3.6 Where to Say It: Traditional Mass Media

The following is a list of the major categories of media. Table

13.2 summarizes some of the pros and cons of each type.

Television

Radio

Newspapers

Magazines

Exhibit: Print

media

Chapter 13: Promotion I: Advertising and Sales Promotion

p. 439

Directories

Out-of-home media

Internet websites

Place-based media

Branded entertainment

Advergaming

Mobile phones

3.7 Where to Say It: Branded Entertainment

As we noted earlier, more and more marketers rely on paid

<emphasis>product placements in TV shows and movies

</emphasis>to grab the attention of consumers who tune out

traditional ad messages as fast as they see them. These placements

are an important form of branded entertainment; a strategy

where marketers integrate products into all sorts of venues

including movies, television shows, videogames, novels and even

retail settings. Beyond movies and television shows, what better

way to promote to the video generation than through brand

placements in video games? The industry calls this technique

<keyterm id=”ch13term24″ linkend=”gloss13_024″

preference=”0″ role=”strong”>advergaming</keyterm>.

Native advertising has marketing material that mimics or

resembles the content of the website that it is posted on.

3.8 Where to Say It: Support Media

Support media reach people who may not have been reached by

mass media advertising and these platforms support the messages

traditional media delivers.

Directory advertising

Out-of-home media. In recent years, outdoor advertising

has pushed the technology envelope with digital signage

that enables the source to change the message at will.

Place-based media

Table 13.2

Pros and Cons of

Media Vehicles

p. 440 3.9 Where to Say It: Digital Media

The term digital media refers to any media that are digital rather

than analog. The more popular types of digital media advertisers

use today include e-mail, websites, ads placed on other websites

and blogs, social media sites such as Facebook, search engines

such as Google, and digital video such as YouTube.

Digital media can be classified as owned, paid, and earned:

Owned media are Internet sites, such as websites, blogs,

Facebook, and Twitter accounts, that are owned by an

advertiser.

Paid media are Internet media, such as display ads,

Part 4: Deliver and Communicate the Value Proposition

p. 441

sponsorships, and paid key word searches, that are paid

for by an advertiser.

Earned media are word-of-mouth or buzz using social

media where the advertiser has no control.

3.9.1 Website Advertising

Online advertising offers several advantages over other media

platforms. First, the Internet provides new ways to finely target

customers. Web user registrations and

<emphasis>cookies</emphasis> allow sites to track user

preferences and deliver ads based on previous Internet behavior.

In addition, because the website can track how many times an ad

is “clicked,” advertisers can measure in real time how people

respond to specific online messages.

The following is a description of forms of Internet advertising:

Banners</keyterm>, rectangular graphics at the top or

bottom of web pages, were the first form of web

advertising.

Buttons</keyterm> are small banner-type

advertisements that a company can place anywhere on

a page.

A pop-up ad is an advertisement that appears on the

screen while a web page loads or after it has loaded.

3.9.2 E-Mail Advertising

E-mail advertising that transmits messages to very large

numbers of inboxes simultaneously is one of the easiest ways to

communicate with consumers—it is the same price whether you

send ten messages or ten thousand. One downside to this platform

is spam, <emphasis>s</emphasis>ending unsolicited e-mail to

five or more people not known to the sender. Many websites offer

the opportunity to refuse unsolicited e-mail via ad blocking. This

<keyterm id=”ch13term20″ linkend=”gloss13_020″

preference=”0″ role=”strong”>permission marketing</keyterm>

strategy gives the consumer the power to opt in or opt out.

3.9.3 Search Engines

Search engines are Internet programs that search for documents

with specified key words. Search marketing refers to marketing

strategies that involve the use of Internet search engines. With

search engine marketing (SEM), the search engine company

charges marketers to display sponsored search ads that appear at

the top or beside the search results.

Chapter 13: Promotion I: Advertising and Sales Promotion

p. 442

p. 443

►ETHICS CHECK

Find out what other students taking this course would do and why

at www.mymtklab.com. Is it ethical for marketers to pay for links

on websites in order to obtain higher rankings on search engines?

3.9.4 Mobile Advertising

The Mobile Marketing Association defines mobile advertising as

“a form of advertising that is communicated to the consumer via a

handset. Mobile marketing offers advertisers a variety of ways to

speak to customers (ideally with the customer’s permission),

including mobile websites, mobile applications or apps, text

message ads, and mobile video and TV. Developers of mobile

apps must find some way to monetize their product. The best

strategy for in-app advertising is to use advertising that creates

revenue and entertains and engages the user. QR code

advertising offers another way to engage consumers via their

mobile phones.

3.9.5 Video Sharing: Check It Out on YouTube

Video sharing describes the strategy of uploading video

recordings or vlogs (pronounced vee-logs) to Internet sites such as

YouTube so that thousands or even millions of other Internet

users can check them out. For marketers, YouTube provides vast

opportunities to build relationships with consumers</emphasis>.

Ripped from the

Headlines

Ethical/

Sustainable

Decisions in the

Real World

p. 443 3.10 When and How Often to Say It: Media Scheduling

After he or she chooses the advertising media, the planner then

creates a <keyterm id=”ch13term25″ linkend=”gloss13_025″

preference=”0″ role=”strong”>media

schedule</keyterm> that specifies the exact media the

campaign will use as well as when and how often the message

should appear. The media schedule outlines the planner’s best

estimate of which media will be most effective to attain the

advertising objective(s) and which specific media vehicles will do

the most effective job.

A continuous schedule maintains a steady stream of advertising

throughout the year. This is most appropriate for products that we

buy on a regular basis.

A pulsing schedule varies the amount of advertising throughout

the year based on when the product is likely to be in demand.

Flighting is an extreme form of pulsing in which advertising

appears in short, intense bursts alternating with periods of little to

no activity. It can produce as much brand awareness as a steady

Figure 13.10

Snapshot: Media

Schedule for a

Video Game

Part 4: Deliver and Communicate the Value Proposition

p. 444

dose of advertising at a much lower cost if the messages from the

previous flight were noticed and made an impact.

►METRICS MOMENT

Media planners use a number of quantitative factors to develop

the media schedule.

Reach is the percentage of the target market that will be

exposed to the media vehicle at least once during a given

period of time, usually four weeks.

Frequency is simply the average number of times that an

period of time, usually four weeks.

Frequency is simply the average number of times that an

individual or a household will be exposed to the message.

Gross rating points (GRPs) are a measure of the quantity

of media included in the media plan.

To compare the relative cost-effectiveness of different

media, planners use cost per thousand CPM), which

reflects the cost to deliver a message to 1,000 people.

Applying the Metrics

You have a choice of commercials during NCIS or ads in the Wall

Street Journal. NCIS reaches 30 million members of the target

audience, while WSJ reaches 15 million members. CBS is quoting

you $500,000 per 30-second spot; WSJ charges $200,000 for a

full-page four-color ad.

Calculate the CPM for each option.

Which one is the better financial deal?

p. 445

4. SALES PROMOTION

Sales promotions are programs that marketers design to build

interest in or encourage purchase of a good or service during a

specified time. Marketers today place an increasing amount of

their total marketing communication budget into sales promotion

due to growth of channels power and declining brand loyalty.

Marketers target sales promotion activities either to ultimate

consumers or to members of the channel such as retailers that sell

their products. Thus, we divide sales promotion into two major

categories: consumer-oriented sales promotion and trade-oriented

sales promotion.

4.1 Sales Promotion Directed toward Consumers

For consumer sales promotion, the major reason for this is that

most promotions temporarily change the price/value relationships.

4.1.1 Price-Based Consumer Sales Promotion

Many sales promotions emphasize short-term price reductions or

rebates that encourage people to choose a brand, during the deal

Table 13.3

Consumer Sales

Promotion

Techniques: A

Sampler

Figure 13.11

Snapshot: Types

of Consumer

Chapter 13: Promotion I: Advertising and Sales Promotion

p. 447

period. If used too frequently, consumers become conditioned to

purchase only when the product is at a low promotional price.

Coupons are certificates redeemable for money off on a

purchase and are the most common price promotion.

Price deals, refunds, and rebates are temporary price

reductions to stimulate sales. This price deal may be

printed on the package itself, or it may be a price-off flag

or banner on the store shelf. Alternatively, companies may

offer <keyterm id=”ch13term45″ linkend=”gloss13_045″

preference=”0″ role=”strong”>rebates</keyterm>

that allow the consumer to recover part of the purchase

price via mail-ins to the manufacturer.

</inst><keyterm id=”ch13term46″

linkend=”gloss13_046″ preference=”0″

role=”strong”>Frequency programs</keyterm>,

also called <emphasis>loyalty</emphasis> or

<emphasis>continuity programs</emphasis>, offer a

consumer a discount or a free product for multiple

purchases over time.

Special/bonus packs involve giving the shopper more

products instead of lowering the price. A

<emphasis>special pack</emphasis> also can be in the

form of a unique package such as a reusable decorator

dispenser for hand soap.

4.1.2 Attention-Getting Consumer Sales Promotions

Attention-getting consumer promotions stimulate interest in a

company’s products. Some typical types of attention-getting

promotions include the following:

Contests and sweepstakes: a contest is a test of skill, while

a sweepstake is based on chance.

Premiums are items offered free to people who have

bought a product.

Product sampling</keyterm> encourages people

to try a product by distributing trial-size and sometimes

regular-size versions in stores, in public places such as

student unions, or through the mail. Many marketers now

distribute free samples through sites on the Internet.

Use websites here: Online coupon consolidators:

coupons.smartsource.com

Student Project: Discuss some of your favorite sales promotions.

Did the sales promotion actually cause you to buy the product

being promoted? Explain how the promotion worked. Why did it

Sales Promotion

Part 4: Deliver and Communicate the Value Proposition

p. 448

P. 448

p. 449

work? What has been the impact on your future buying behavior?

4.2 Trade Sales Promotion: Targeting the B2B Customer

Sales promotions target the B2B customer—located somewhere

within the supply chain. Such entities are traditionally referred to

as “the trade.”

4.2.1 Discount Promotions

Discount promotions (deals) reduce the cost of the product to the

distributor or retailer or help defray its advertising expenses.

4.2.2 Co-Op Advertising

Another type of trade allowance is co-op advertising. These

programs offer to pay a portion, usually 50 percent, of the cost of

any retailer advertising that features the manufacturer’s product.

4.2.3 Sales Promotion Designed to Increase Industry

Visibility

Other types of trade sales promotions increase the visibility of a

manufacturer’s products to channel partners within the industry.

Forms of sales promotion include the following:



Trade shows



Promotional products



Point-of-purchase displays

Incentive programs

Figure 13.12

Snapshot: Trade

Sales Promotions

Table 13.4

Characteristics of

Trade Sales

Promotion

Approaches

Real People, Real Choices: Here’s My Choice at the Pitch

Agency

Sarah chose option #2.

Chapter 13: Promotion I: Advertising and Sales Promotion

IV. END-OF-CHAPTER ANSWER GUIDE

Chapter Questions and Activities

 QUESTIONS: TEST YOUR KNOWLEDGE

What is promotion? What is integrated marketing communication? What are

multichannel promotional strategies?

Promotion is the coordination of marketing communication efforts to

influence attitudes or

behavior. This function is the last of the famous four Ps of the marketing mix,

and it plays a

vital role. Of course, virtually everything an organization says and does is a

form of marketing

communication. <para>Many marketing experts now believe a successful

promotional strategy

should blend several diverse forms of marketing communication. <keyterm

id=”ch12term2″

linkend=”gloss12_002″ preference=”0″ role=”strong”>Integrated

marketing

communication (IMC)</keyterm> is the process that marketers use to plan,

develop, execute, and evaluate coordinated, measurable, persuasive brand

communication programs over time to targeted audiences. The IMC approach

argues that consumers encounter a company or a brand in many different ways

before, after and during a purchase. Consumers see these points of contact or

touchpoints–a TV commercial, a company website, a coupon, an opportunity to

win a sweepstakes, or a display in a store—as a whole—as a single company

that speaks to them in different places and different ways.

Part 4: Deliver and Communicate the Value Proposition

IMC marketers understand that to achieve their marketing communication

goals, they must

selectively use some or all of these touchpoints to deliver a consistent message

to their

customers in a multichannel promotional strategy where they combine

traditional advertising,

sales promotion, and public relations activities with online buzz-building

activities. That is a lot

different from most traditional marketing communication programs of the

past that made little

effort to coordinate the varying messages consumers received. Today, these

traditional methods

still work in some circumstances. However, many other options are available

that often mesh

better with our “wired” 24/7 cultures. When you take a break from posting to

your friends on

Facebook, you’ll recognize that you also learn about products and services

from your own

social network in addition to ads, billboards, or coupons. For this reason we

need to consider an

updated communication model where marketing messages are what we think of

as many-to-

many.

Describe the traditional communication model.

Chapter 13: Promotion I: Advertising and Sales Promotion

The traditional communication model includes a message source that encodes

an idea into a message and transmits the message through some medium.

Marketing messages exploit a variety of appeals and message structures. The

message is transmitted using one of several different communication media and

is finally delivered to a receiver, who decodes the message and may provide

feedback to the source. Anything that interferes with the communication is

called noise.

13.3 List the elements of the promotion mix and describe how they are used to

deliver personal and

mass appeals.

Advertising is nonpersonal communication from an identified sponsor using the

mass media.

Sales promotions are marketing activities that are used to stimulate immediate

sales by providing extra value or generating interest in a product.

Public relations consists of marketing efforts or activities to portray an

organization and its products positively by influencing the perceptions of

various publics, including customers, government officials, and shareholders.

Personal selling is direct interaction between a company representative and a

customer that can occur in person, by phone, or even by interactive computer

link.

Direct marketing: Marketers also use direct mail, telemarketing, and other

<emphasis>direct marketing</emphasis> activities to create personal appeals.

Like personal selling, direct marketing provides direct communication with a

consumer or business customer. Because direct marketing activities seek to gain

a direct response from individual consumers, as we saw in <link

olinkend=”ch07″ preference=”0″>Chapter <xref label=”7″

olinkend=”ch07″><inst>7</inst></xref></link> the source can target a

communication to market segments of a few or—with today’s technology—even

segments of one.

List and explain the steps in promotion planning.

Part 4: Deliver and Communicate the Value Proposition

Step 1: Identify the Target Audience(s)

An important part of overall marketing planning is to identify the target

audience(s). Remember, IMC marketers recognize that we must communicate

with a variety of stakeholders who influence the target market. Of course, the

intended customer is the most important target audience and the one that

marketers focus on the most.

Step 2: Establish the Communication Objectives

The whole point of communicating with customers and prospective customers is

to let them know in a timely and affordable way that the organization has a

product to meet their needs. In most cases, it takes a series of messages that

move the consumer through several stages. The marketer “pushes” the

consumer through a series of steps, or a <keyterm id=”ch12term22″

linkend=”gloss12_022″ preference=”0″ role=”strong”>hierarchy of e!ects</keyterm>,

from initial awareness of a product to brand loyalty. The task of moving the

consumer up the hierarchy becomes more difficult at each step. The steps are as

follows: Create awareness, inform the market, create desire, encourage

purchase and trial, and build loyalty.

Step 3: Determine and Allocate the Marketing Communication Budget

While setting a budget for marketing communication might seem easy—you

just calculate how much you need to accomplish your objectives—in reality it’s

not that simple. We need to make three distinct decisions to set a budget:

Determine the Total Promotion Budget, Decide on a Push or a Pull Strategy,

Allocate the Budget to a Specific Promotion Mix.

Step 4: Design the Promotion Mix

Chapter 13: Promotion I: Advertising and Sales Promotion

Designing the promotion mix is the most complicated step in marketing

communication planning. It includes determining the specific communication

tools that will be used, what message is to be communicated, and the

communication channel(s) to be employed. The message should ideally

accomplish four objectives (though a single message can rarely do all of these):

It should get attention, hold interest, create desire, and produce action. These

communication goals are known as the AIDA model.

Step 5: Evaluate the Effectiveness of the Communication Program

The final step to manage marketing communications is to decide whether the

plan is working. It is not so easy. There are many random factors in the

marketing environment.

13-5 Explain the hierarchy of effects and how it is used in communication

objectives.

<para>The marketer “pushes” the consumer through a series of steps, or a <keyterm

id=”ch12term22″ linkend=”gloss12_022″ preference=”0″ role=”strong”>hierarchy of

effects</keyterm>, from initial awareness of a product to brand loyalty. The task of moving

the consumer up the hierarchy becomes more difficult at each step. Many potential buyers

may drop out along the way, leaving fewer of the target group inclined to go the distance and

become loyal customers. Each part of this path entails different communication objectives to

“push” people to the next level:<link linkend=”ch12mn28″ preference=”1″/></para>

<para></para>A. Create awareness: <para>The first step is to make members of the target

market aware that there is a new brand of cologne on the market.

B. Inform the Market: <para>The next step is to provide prospective users with knowledge

about the benefits the new product has to offer—to <emphasis>position</emphasis> it

relative other colognes.

C. </para></section>Create Desire: <para>The next task is to create favorable feelings toward the

product and to convince at least some members of this group that they would rather splash on some

Hunk instead of other colognes.

Part 4: Deliver and Communicate the Value Proposition

D. Encourage Purchase and Trial: <para>As the expression goes, “How do ya know ’til ya try

it?” The company now needs to get some of the men who have become interested in the

cologne to try it.</para></section>

E. Build Loyalty: <para>Of course, the real test is loyalty: To convince customers to stay with

Hunk after they have gone through the first bottle. Promotion efforts must maintain ongoing

communications with current users to reinforce the bond they feel with the product.

13-6 Describe the major ways in which firms develop marketing communication

budgets.

Top-down budgeting requires top management to establish the overall

amount that the

organization allocates for promotion activities. This amount is divided among

advertising,

public relations, and other promotion departments. Percentage-of-sales and

competitive parity

are two examples:

Percentage-of-sales—the promotion budget is based either on last year’s sales or

on estimates for this year’s sales. The percentage is often based on an industry

average.

Competitive-parity method—matches whatever competitors are spending.

Bottom-up budgeting means identifying promotion goals and allocating

enough money to

accomplish them. One example is objective and task.

Objective-task—the firm first defines the specific communication goals it hopes

to achieve and then figures out how much and what kinds of promotion efforts

it will take to meet the goal.

Chapter 13: Promotion I: Advertising and Sales Promotion

Describe push versus pull strategies. What is advertising, and what types of

advertising do marketers use most often? What is an advertising campaign?

A push strategy means that the company wants to move its products by

convincing channel members to offer them and entice their customers to select

these items. Promotion efforts will “push” the products from producers to

consumer by focusing on personal selling, trade advertising, and sales

promotions.

A pull strategy means counting on consumers to desire its products and thus

convince retailers to respond to this demand by stocking them. Efforts will focus

on media advertising and consumer sales promotion to stimulate interest among

end consumers who will “pull” the product onto store shelves and then into

their shopping carts.

Advertising is a nonpersonal communication paid for by an identified sponsor

who is using mass media to persuade or inform. Advertising informs, reminds,

and creates (persuades) consumer desire. In other words, advertising is intended

to bring about some change in its audience, whether to create awareness of a

product, to change the way we think about it, or to get us to run out and buy it

immediately.

Product advertising is used to persuade consumers to choose a specific good or

service. Institutional advertising is used to promote an entire organization

(corporate image advertising), to express the opinions of an organization

(advocacy advertising), or to support a cause (public service advertising). Retail

and local advertising are used to promote a local store or service.

Part 4: Deliver and Communicate the Value Proposition

An <keyterm id=”ch13term7″ linkend=”gloss13_007″ preference=”0″

role=”strong”>advertising campaign</keyterm> is a coordinated,

comprehensive plan that carries out promotion objectives and results in a series

of advertisements placed in various media over a certain period. Although a

campaign may be based around a single ad idea, most use multiple messages

with all ads in the campaign having the same look-and-feel.

13-8 Firms may seek the help of full-service or limited-service advertising

agencies for their

advertising. Describe each.

Although some firms create their own advertising in-house, in many cases

several specialized companies work together to develop an advertising

campaign. Typically, the firm retains one or more outside

<emphasis>advertising agencies</emphasis> to oversee this process. A <keyterm

id=”ch13term8″ linkend=”gloss13_008″ preference=”0″

role=”strong”>limited-service agency</keyterm> provides one or more

specialized services, such as media buying or creative development. In contrast,

a <keyterm id=”ch13term9″ linkend=”gloss13_009″ preference=”0″

role=”strong”>full-service agency</keyterm> supplies most or all of the

services a campaign requires, including research, creation of ad copy and art,

media selection, and production of the final messages.

13-9 What is consumer-generated advertising and why is it growing in

importance? What is crowdsourcing and how is it used in advertising?

Chapter 13: Promotion I: Advertising and Sales Promotion

The latest promotional craze is to let your customers actually create your

advertising for you. User-generated content (UGC), also known as c<keyterm

id=”ch12term20″ linkend=”gloss12_020″ preference=”0″

role=”strong”>consumer-generated media (CGM),</keyterm> includes

the millions of online consumer comments, opinions, advice,

consumer-to-consumer discussions, reviews, photos, images, videos, podcasts

and webcasts and product-related stories available to other consumers through

digital technology. Marketers that embrace this strategy understand that it is

OK to let people have fun with their products. Some marketers encourage

consumers to contribute their own do-it-yourself (DIY) ads. Crowdsourcing is a

practice in which firms outsource marketing activities (such as selecting an ad)

to a community of users, i.e., a crowd. The idea behind crowdsourcing is that if

you want to know what consumers think and what they like, the most logical

thing to do is to ask them.

13-10 What are some of the major criticisms of advertising? What is corrective

advertising?

What is puffery?

Advertising is manipulative

Advertising is deceptive and untruthful– in addition to fining firms for

deceptive advertising, the FTC also has the power to require firms to run

<keyterm id=”ch13term10″ linkend=”gloss13_010″ preference=”0″

role=”strong”>corrective advertising;</keyterm> messages that clarify or qualify

previous claims. Other ads, although not illegal, may create a biased impression

of products when they use <keyterm id=”ch13term11″ linkend=”gloss13_011″

preference=”0″ role=”strong”>puffery</keyterm>—claims of superiority that

neither sponsors nor critics of the ads can prove are true or untrue. Many

consumers today are concerned about greenwashing, a practice in which

companies promote their products as environmentally friendly when in truth

the brand provides little ecological benefit.

Advertising is offensive and in bad taste

Advertising creates and perpetuates stereotypes

Part 4: Deliver and Communicate the Value Proposition

Advertising causes people to buy things they don’t really need

FTC also has the power to require firms to run corrective advertising, messages

that clarify

or qualify previous claims. Other ads, although not illegal, may create a biased

impression of

products with the use of puffery—claims of superiority that neither sponsors

nor critics of

the ads can prove are true or untrue.

13-11 Describe the steps in developing an advertising campaign. What is a

creative brief? What

is meant by the appeal, execution format, tonality, and creative tactics used

in an ad

campaign?

An advertising campaign is a coordinated, comprehensive plan that carries out

promotion objectives and results in a series of advertisements placed in media

over a certain time period Various departments of an advertising agency may be

called upon to become involved in the development of an advertising campaign.

Steps in the development of an advertising campaign include:

Understand the target audience

Establish message and budget objectives

Set message objectives

Set budget objectives

Chapter 13: Promotion I: Advertising and Sales Promotion

Create the ads

Pretest what the ads will say

Choose the media type(s) and media schedule

The creation of the advertising begins when an agency formulates a creative

strategy, which gives the advertising “creative” (art directors, copywriters,

photographers, and others) the direction and inspiration they need to begin the

creative process. The strategy is summarized in a written document known as

a creative brief; a rough blueprint that guides but does not restrict the creative

process. It provides only the most relevant information and insights about the

marketing situation, the advertising objective, the competition, the advertising

target and, most importantly, the message that the advertising must deliver.

An advertising appeal is the central idea of the ad and the basis of the

advertising messages. It is the approach used to influence the consumer.

Execution format describes the basic structure of the message. Some of the more

common formats, sometimes used in combination, include:

Comparison: A comparative advertisement explicitly names one or more

competitors.

Demonstration: The ad shows a product “in action” to prove that it performs as

claimed: “It slices, it dices!”

Testimonial: A celebrity, an expert, or a “man in the street” states the product’s

effectiveness. The use of <emphasis> celebrity endorsers</emphasis> is a

common but expensive strategy.

Slice of life: </inst>A <emphasis>slice-of-life</emphasis> format presents a

(dramatized) scene from everyday life.

Lifestyle:</title><para><inst> </inst>A <emphasis>lifestyle</emphasis> format

shows a person or persons attractive to the target market in an appealing

setting. The advertised product is “part of the scene,” implying that the person

who buys it will attain the lifestyle.

Part 4: Deliver and Communicate the Value Proposition

Tonality refers to the mood or attitude the message conveys. Some common

tonalities include:

Straightforward: Straightforward ads simply present the information to the

audience in a clear manner.

Humor: </inst>Humorous, witty, or outrageous ads can be an effective way to

break through advertising clutter.

Dramatic: A dramatization, like a play, presents a problem and a solution in a

manner that is often exciting and suspenseful—a difficult challenge in 30 or 60

seconds.

Romantic: Ads that present a romantic situation can be especially effective at

getting consumers’ attention and at selling products people associate with dating

and mating.

Sexy: </inst>Some ads appear to sell sex rather than products. Sex

appeal</emphasis> ads are more likely to be effective when there is a connection

between the product and sex (or at least romance).

Apprehension/Fear: </inst>Some ads highlight the negative consequences of

<emphasis>not</emphasis> using a product. In general, fear appeals can be

successful if the audience perceives there to be an appropriate level of intensity

in the fear appeal.

Creative Tactics and Technique

Animation and Art: Not all ads are executed with film or photography.

Celebrities

Music, jingles, and slogans: Jingles are original words and music written

specifically for advertising executions. Slogans</emphasis> link the brand to a

simple linguistic device that is memorable (j<emphasis>ingles</emphasis> do

the same but set the slogan to music).

13-12 What is media planning? What are the strengths and weaknesses of

traditional media,

Chapter 13: Promotion I: Advertising and Sales Promotion

that is, television, radio, newspapers, and magazines?

Media planning is a problem-solving process for getting a message to a target

audience in the most effective way. Planning decisions include audience selection

and where, when, and how frequent the exposure should be. Thus, the first task

for a media planner is to find out when and where people in the target market

are most likely to be exposed to the communication.

Strengths Weaknesses

Television

Extremely creative Message impression is fleeting

High impact message Fragmented audience

Radio

Targeted audiences Lack of attention

Low cost Not appropriate for some products

Newspapers

Wide exposure Short time reading

Flexible format Low readership

Magazines

Targeted audiences Expensive

Long life and repeat reading Long deadline dates

What is digital media? What are owned, paid, and earned media? What are the

different advertising activities or techniques included in website advertising,

mobile advertising, and video sharing?

Part 4: Deliver and Communicate the Value Proposition

The term digital media refers to any media that are digital rather than analog.

The more popular types of digital media advertisers use today include websites,

mobile or cellular phones, and digital video such as YouTube.

Website advertising:

Banners</keyterm>, rectangular graphics at the top or bottom of web pages, were

the first form of web advertising.

Buttons</keyterm> are small banner-type advertisements that a company can

place anywhere on a page.

A pop-up ad is an advertisement that appears on the screen while a web page

loads or after it has loaded.

Search engines and directory listings are ways for people to find web pages of interest

to them. A web search engine is a program that searches for documents with

specified keywords. Unlike search engines, a web directory does not display lists

of web pages based on key words but instead lists sites by categories and

subcategories.

E-mail advertising that transmits messages to very large numbers of inboxes

simultaneously is one of the easiest ways to communicate with consumers—it is

the same price whether you send ten messages or ten thousand. One downside to

this platform is the explosion of spam. The industry defines this practice as

<emphasis>s</emphasis>ending unsolicited e-mail to five or more people not

personally known to the sender. Many websites that offer e-mail give surfers the

opportunity to refuse unsolicited e-mail via junk e-mail blockers. This <keyterm

id=”ch13term20″ linkend=”gloss13_020″ preference=”0″

role=”strong”>permission marketing</keyterm> strategy gives the consumer the

power to opt in or opt out.

● Mobile Advertising: The Mobile Marketing Association defines mobile advertising as “ a form

of advertising that is communicated to the consumer via a handset. Video sharing describes the

strategy of uploading video recordings or vlogs (pronounced vee-logs) to Internet sites such as

YouTube so that thousands or even millions of other Internet users can check them out. For

marketers, YouTube provides vast opportunities to build relationships with consumers.

Chapter 13: Promotion I: Advertising and Sales Promotion

13-14 What are different types of branded content? How do marketers use

branded entertainment

and support media, such as directories, out-of-home media, and

place-based media, to

communicate with consumers?

More and more marketers rely on paid <emphasis>product placements in TV

shows and movies </emphasis>to grab

the attention of consumers who tune out traditional ad messages as fast as they

see them.

These placements are an important form of branded entertainment; a strategy

where

marketers integrate products into all sorts of venues including movies, television

shows,

videogames, novels, and even retail settings. Beyond movies and television

shows, what

better way to promote to the video generation than through brand placements

in video

games? The industry calls this technique <keyterm id=”ch13term24″

linkend=”gloss13_024″ preference=”0″

role=”strong”>advergaming</keyterm>.

Support media reach people who may not have been reached by mass media

advertising and these platforms support the messages traditional media

delivers.

Directories

Out-of-home media. In recent years, outdoor advertising has pushed the

technology envelope with digital signage that enables the source to change the

message at will.

Part 4: Deliver and Communicate the Value Proposition

Place-based media

13-15 How do marketers pretest their ads? How do they posttest ads?

Although it is clear that advertising does increase sales, advertisers need to

conduct research to determine whether specific advertisements are effective.

One method of doing this is to conduct pre-testing or copy testing (a procedure

that measures whether an ad is received, comprehended, and responded to in

the desired manner). Versions of this form of testing include concept testing,

testing of TV advertising, and finished ad testing. Advertisers often need more

solid evidence that a campaign is producing a return a on their investment. In

order to do this, advertisers can conduct posttest research to make sure that ads

are doing well. Three ways to measure the impact of an advertisement are

unaided-recall (can consumers remember ads—no prompting is allowed),

aided-recall (prompting is allowed to aid consumers in remembering ads), and

attitudinal measures (probes deeper by examining consumer’s beliefs or feelings

about the product before and after being exposed to messages about it).

13-16 What is media planning? How do media planners use reach, frequency,

gross rating points, and

cost per thousand in developing effective media schedules?

Chapter 13: Promotion I: Advertising and Sales Promotion

After she chooses the advertising media, the planner then creates a <keyterm

id=”ch13term25″ linkend=”gloss13_025″ preference=”0″

role=”strong”>media schedule</keyterm> that specifies the exact media the

campaign will use as well as when and how often the message should appear.

The media schedule outlines the planner’s best estimate of which media will be

most effective to attain the advertising objective(s) and which specific media

vehicles will do the most effective job. There are also a number of quantitative

factors, which the media planner uses to develop the media schedule.

<para><keyterm id=”ch13term28″ linkend=”gloss13_028″ preference=”0″

role=”strong”>Reach</keyterm> is the percentage of the target market that

will be exposed to the media vehicle at least once during a given period, usually

four weeks. Frequency</keyterm> is the average number of times that an

individual or a household will be exposed to the message. Note that this is the

average. Gross rating points (GRPs) are a measure of the quantity of media

included in the media plan. To compare the relative cost-effectiveness of

different media and of spots run on different vehicles in the same medium,

media planners use a measure they call <keyterm id=”ch13term31″

linkend=”gloss13_031″ preference=”0″ role=”strong”>cost per thousand

(CPM)</keyterm>. This figure reflects the cost to deliver a message to 1,000

people.

13-17 What is sales promotion? Explain some of the different types of consumer

sales promotions

marketers frequently use.

Sales promotions are programs that marketers design to build interest in or encourage

purchase of a good or service during a specified period. Marketers have been placing an

increasing amount of their total marketing communication budget into sales promotion for

one simple reason—these strategies deliver short-term sales results.

Consumer sales promotions include (1) price-based promotions (coupons, price deals, refunds

and rebates, frequency programs, and special/bonus packs) and (2) attention-getting

consumer sales promotions (contests and sweepstakes, premiums, sampling,

point-of-purchase promotion, product/brand placements, and cross-promotions).

Part 4: Deliver and Communicate the Value Proposition

13-18 Explain some of the different types of trade sales promotions marketers

frequently use.

Price-based consumer sales promotion includes the following: Coupons, Price

deals, refunds, and rebates, Frequency (loyalty/continuity) programs,

Special/bonus packs

Attention-Getting Consumer Sales Promotions: Contests and sweepstakes,

Premiums, Sampling

Trade Sales Promotion: Targeting the B2B Customer: Co-op advertising, sales

promotion designed to increase industry visibility

Trade shows

Promotional products

Point-of-purchase displays

Incentive programs

ACTIVITIES: APPLY WHAT YOU’VE LEARNED

13-19 Creative Homework/Short Project You work in the marketing department

at your local Red

Cross blood center. Because donations are down, it’s important that you

reach out to the

community for blood donor volunteers. Using the communication model,

explain how you

will create and transmit this message to the consumer. Then describe how

you will determine

Chapter 13: Promotion I: Advertising and Sales Promotion

whether consumers successfully received this message.

MyMarketingLab for answers to Assisted Graded Questions.

13-20 Creative Homework/Short Project Assume you are the director of

marketing for a firm

that markets snack foods. You are developing a promotional plan. Develop

suggestions for each of the following items.

Marketing communication objectives

The method you will use for determining the communication budget

The use of a push strategy or a pull strategy

Elements of the traditional promotion mix you will use

MyMarketingLab for answers to Assisted Graded Questions.

13-21 Creative Homework/Short Project Your company has developed a new

high-end hand

cream, designed to noticeably soften hands and reduce the appearance of age

spots and scars when used daily. Using the hierarchy of effects, develop

communications objectives for your product for consumers who may be at each

stage in the hierarchy. Make sure your objectives are specific.

<para>The marketer “pushes” the consumer through a series of steps, or a <keyterm

id=”ch12term22″ linkend=”gloss12_022″ preference=”0″ role=”strong”>hierarchy of

effects</keyterm>, from initial awareness of a product to brand loyalty. The task of moving

the consumer up the hierarchy becomes more difficult at each step. Many potential buyers

may drop out along the way, leaving fewer of the target group inclined to go the distance and

become loyal customers. Each part of this path entails different communication objectives to

“push” people to the next level:<link linkend=”ch12mn28″ preference=”1″/></para>

Part 4: Deliver and Communicate the Value Proposition

<para></para>A. Create awareness: <para>The first step is to make members of the target

market aware that there is a new hand cream on the market.

B. Inform the Market: <para>The next step is to provide prospective users with knowledge about

the benefits the new product has to offer—to <emphasis>position</emphasis> it relative to other

hand creams.

C. </para></section>Create Desire: <para>The next task is to create favorable feelings toward the

product and to convince at least some members of this group that they would rather use this hand

cream instead of other hand creams.

D. Encourage Purchase and Trial: <para>As the expression goes, “How do ya know ’til ya try

it?” The company now needs to get some of those interested in the hand cream to try

it.</para></section>

E. Build Loyalty: <para>Of course, the real test is loyalty: To convince customers to stay with the

hand cream after they have gone through the first bottle. Promotion efforts must maintain ongoing

communications with current users to reinforce the bond they feel with the product.

13-22 For Further Research (Individual) More and more firms are engaged in

multichannel

promotional programs. You can learn about many of these by searching

library or Internet

sources. Some Internet sources that may be useful are the following:

Brandchannel.com

Adweek.com (Adweek magazine)

NYTimes.com (New York Times)

Adage.com (Advertising Age magazine)

Chapter 13: Promotion I: Advertising and Sales Promotion

Gather information on one or more multichannel promotional programs.

Develop a report

that describes the program(s) and makes suggestions for how it or they

might be

improved.

Students should discuss whether they believe that such multichannel

promotional programs serve the company well and increase their brand

strength/equity in the marketplace. That is, are the bigger global firms relative

to smaller companies using multichannel promotional programs more?

13-23 Creative Homework/Short Project As we discussed in this chapter, many

consumers are

highly critical of advertising. In order to better understand this, conduct a short

survey of (1) your college classmates and (2) a different group of consumers,

such as your parents and their friends. In the survey, ask the respondents about

the criticisms of advertising discussed in this chapter, that is, that advertising (1)

is manipulative, (2) is deceptive and untruthful, (3) is offensive and in bad taste,

(4) creates and perpetuates stereotypes, and (5) causes people to buy things they

don’t really need. Be sure to ask respondents to give you examples of ads that

they feel fall in these categories. Develop a report that summarizes your results

and compares the attitudes of the two consumer groups.

YouTube is an excellent source to tell respondents to use in generating examples

of ads in

these categories. This very interesting assignment is sure to spark thoughtful

discussion

among your students.

Part 4: Deliver and Communicate the Value Proposition

13-24 In Class, 10–25 Minutes for Teams Assume that you are a member of the

marketing

department for a firm that produces several brands of snack foods. Your

assignment is to

develop recommendations for consumer and trade sales promotion

activities for a new low-

fat, low calorie, high protein snack food. Develop an outline of your

recommendations for

these sales promotions. In a role-playing situation, present and defend

your

recommendations to your boss.

In a role-play students can develop an outline of recommendations for the sales

promotion activities for a new low-fat, low calorie, high protein snack food

using the following sales promotion tools:

Price-based consumer sales promotion includes the following: Coupons, Price

deals, refunds, and rebates, Frequency (loyalty/continuity) programs,

Special/bonus packs

Attention-Getting Consumer Sales Promotions: Contests and sweepstakes,

Premiums, Sampling

Trade Sales Promotion: Targeting the B2B Customer: Co-op advertising, sales

promotion designed to increase industry visibility

Trade shows

Promotional products

Point-of-purchase displays

Chapter 13: Promotion I: Advertising and Sales Promotion

Incentive programs

13-25 In Class, 10–25 Minutes for Teams Timing is an important part of a sales

promotion plan.

Trade sales promotions must be properly timed to ensure channel

members fully maximize

the opportunity to sell your product. Assume that the introduction of the

new snack food in

question 13-24 is planned for April 1. Place the activities you