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Chapter 13: Promotion I: Advertising and Sales Promotion
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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 advocacy
advertising.
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
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3.2 Who Creates Advertising?
An advertising campaign 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
advertising agencies to oversee this process. A limited-service
agency provides one or more specialized services, such as media
buying or creative development. In contrast, a full-service
agency 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: The account executive, 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
Copyright © 2018 Pearson Education, Inc.
Chapter 13: Promotion I: Advertising and Sales Promotion
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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. The account planner combines research and account
strategy to act as the voice of the consumer in creating effective
advertising.
Creative services: Creatives are the “heart” of the communication
effort. These people actually dream up and produce the ads.
Research and marketing services: Researchers are the “brains” of the
campaign. They collect and analyze information that will help account
executives develop a sensible strategy.
Media planning: The media planner 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 consumer-generated media (CGM), 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 corrective advertising;
messages that clarify or qualify previous claims.
Other ads, although not illegal, may create a biased impression of
products when they use puery—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.
Exhibit: Land
Rover
Copyright © 2018 Pearson Education, Inc.
Chapter 13: Promotion I: Advertising and Sales Promotion
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Advertising is offensive and in bad taste
Advertising causes people to buy things they don’t
really need
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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.
Figure 13.9
Snapshot: Creative
Elements of
Advertising
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Advertising Appeals
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 celebrity endorser
is a common but expensive strategy.
Slice of life: A slice-of-life format presents a (dramatized) scene
from everyday life.
Lifestyle: A lifestyle 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.
Humor: 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: Some ads appear to sell sex rather than products. Sex
Exhibit: Fresh Step
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Chapter 13: Promotion I: Advertising and Sales Promotion
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appeal ads are more likely to be effective when there is a
connection between the product and sex (or at least romance).
Apprehension/fear: Some ads highlight the negative
consequences of not 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 link the brand to a simple linguistic device that is
memorable (jingles 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 pre-testing,
the research that 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.
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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 means conducting research on consumers’ responses to
advertising messages they have seen or heard as opposed to pre-testing,
Exhibit: Potato
Goodness
Copyright © 2018 Pearson Education, Inc.
Chapter 13: Promotion I: Advertising and Sales Promotion
which as we have seen collects reactions to messages before 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 aided recall test uses the name of the brand and
sometimes other clues to prompt answers.
Attitudinal measures probe a bit more deeply by
testing consumers’ beliefs or feelings about a product before
and after they are exposed to messages about it.
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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
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 product
placements in TV shows and movies 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 advergaming. 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
Exhibit: Print
media
Table 13.2
Pros and Cons of
Media Vehicles
p. 440 3.9 Where to Say It: Digital Media
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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,
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 cookies 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, rectangular graphics at the top or bottom of web
pages, were the first form of web advertising.
Buttons 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, sending 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
permission marketing 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
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results.
►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
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
media schedule 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 dose of advertising at a
much lower cost if the messages from the previous flight were noticed
and made an impact.
Figure 13.10
Snapshot: Media
Schedule for a
Video Game
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Chapter 13: Promotion I: Advertising and Sales Promotion
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►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?
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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 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
Table 13.3
Consumer Sales
Promotion
Techniques: A
Sampler
Figure 13.11
Snapshot: Types of
Consumer Sales
Promotion
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store shelf. Alternatively, companies may offer rebates that
allow the consumer to recover part of the purchase price via
mail-ins to the manufacturer.
Frequency programs, also called loyalty or continuity
programs, 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 special pack 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 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 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
Figure 13.12
Snapshot: Trade
Sales Promotions
Table 13.4
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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
Characteristics of
Trade Sales
Promotion
Approaches
Real People, Real Choices: Here’s My Choice at the Pitch Agency
Sarah chose option #2.
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