ADV 3008 05/18/2010

Public Relations cont.

• PR has more credibility than advertising

• Has 3rd party recommendation.

• PR is growing.

Al Reece: “Advertising is dead. Long live PR.”

Marketing

Strategic planning level for goods and services

Focuses on the 4 P:

1. Product

2. Placement

3. Price

4. Promotion

Advertising

A tool of marketing used to communicate ideas and information about goods and services to

specific audiences.

Two other characteristics:

• Advertising employ paid, time or space.

• Openly identifies advertising

 4=IMC

Take

1. Advertising

2. Public Relations

3. Sales Promotion

4. Direct response

And you have the discipline of integrated.

Advertising Business

How big is advertising?

• Top 100 advertisers spent $105 to $141 billion in US.

How does it work?

• Complex blend of art and science.

• Art-

What does advertising do for people?

1. Allow consumers to make choices

2. Makes consumers aware of competitors

3. Shows consumers what’s available in the market.

4. Promise brands builds trust in product leads to repeat purchases on the part of the consumer.
5. Keeps prices competitive.

6. Good advertising can kill a bad product because it creates trial.

What does advertising do for business?

1. It can create new market

2. Changes people’s perceptions

3. Stabilize markets

4. Long-term capital investment in the brand, therefore build loyalty

5. Keep things competitive for business.

6. Fuels the free market system.

Advertising categories

1. Brand advertising (national advertising)

• Create awareness across wide geography and audience.

• Rarely include price or where to purchase the product

• Coca Cola,

1. Retail

a. Includes price often where to buy it, weekend specials.

b. Furniture stores and newspaper

2. Trade

a. Create by manufacturers are directed towards retailers and whole sellers

1. Business to Business (B2B)

a. Specialty selling, something that the business will use

Directory

• Phonebook : yellow page ad.

• Highly motivated buyers

Corporate advertising (institutional

• Has more of a pr environment

• Try to sell the image and try to establish character

PSA (Public Service Announcement)

• They are not paid due to FCC licenses that they are for the good of the public.

Idea

• Is not about the product, but about issues or causes.

• Public interest groups, gun control, abortion

Political

• Buying of selling of political candidates

• FTC doesn’t regulate them therefore there’s the ability to deceive

End product

• Not for specific products due to people not being able to buy

• Splenda, nurtisweet,

Service ads (FIRE)

• Finance, Insurance, Real Estate= large service based industry

• US is a service based economy

Professional

• Doctors, lawyers like personal

• Try to feature tangibles from customer testimony

• Stress experience or the quality of what they do

Direct response

• A category and not a single type and includes

• Direct advertising= where it comes through you, but not through a media channel

• Direct mail=through the post office, most researched and tested

• Mail order=catalogs

• Telemarketing= phone calls

• Internet= specialized markets

Category

• Not selling a branded product, but the product itself ex. Milk

Infomercials

• Longer running television spots

• Paved a way for longer commercials

Interactive (digital)

• Internet and beyond

• Fastest growing median for advertisement ever

DTC (Direct to Consumer)

• Advertisements that are directed at the end consumer even through they have to go to

an intermediary to get the consumer

• Like medications through doctors

Branded content

• Where product is embedded into the story line of a show/movie

Viral advertising (BUZZ)

• Social network (facebook ,twitter)

• Relies on personal recommendation

Mobile (Cellular Cell)\

Advertising Business

Does advertising make you buy things you don’t want?

• NO, may create need, but not want

The Ad Spiral

Figure out good decision making

All products go through a life cycle

1. Pioneering stage- until they feel they need a product they are in this stage

2. Competitive stage- product faces more competition, usually deals with price and need

3. Retentive stage- product reached maturity and has wide scale acceptance, so the customer

need the brand name in front of them.

a. Few products are entirely in this phase and products are more profitable

*Age has no affect on what stage the product is in, but with deals with acceptance by the

consumer.

Pioneering Stage

Purposes:

• To educate consumers about new products and services.

• Demonstrate a need they didn’t they had which is filled by the product.

• Show that a new product exists which can fulfill a recognized need.

Pros:

Get out in front of the customers before the competition

Define the category to best reflect your product

Become known as the market leader

Cons:

Expensive in both research & development and in advertising cost

Requires advertisers to educate consumers about why they need it.

Risky. 67% failure rate among truly new products.

• Purell Launch

○ $15 million ad budget

• Aleve Launch

○ $50 million ad budget, more competitive

Competitive

• Product’s general usefulness is recognized, but is superiority is not established.

• Pioneering products usually have a short-term advantage here, but must continue to

improve their products to stay ahead.

Retentive Stage (reminder advertisement)

• After general usefulness are already known, a products individual qualities are

appreciated.

• Consumers buy it based on individual need.

• Also known as reminder advertisement.

• The psychological phenomena called cognitive disunite. Post sell regret

• Advertising is high visual and is basically name advertising.

• Often feature a dominant image with very few words.

• Intended to keep present customers and increases the size of total market.
 Assignment

You in a nutshell

8.5 X 11 sheet of paper

visually demonstrate your values, your personality, your identity

must include your name

can have labels

DUE on Tuesday, May 25

CHAPTER 4

Target Marketing

Definition:

Identifying and communicating with groups of prime prospects\

Target influencers (pg129130

1. Household income most importantly disposable income

2. Spending Habits= what you spend your money on, leisure purchases, dining. Get information

off your credit card.

3. Marrieds= your are a perspective buyer for everything

4. Age, Gender, & Single Person Household=

5. Women

a. 110 Million in U.S. 47% of the workforce. 51% of managerial positions. HH (headed

up household) with kids under 18= 33%, 60% bachelor’s and master’s.

b. Influence purchase of 85% of products.

Planning The Advertising

Marketing Segmentation

• Where you focus on a specific group of buyers

Situation Analysis

• Brailing the market place

SWOT=Strengths, Weaknesses, Opportunity, Threats

Geographic Segmentation

1. ADI

a. Area of Dominant Influence,

2. MSA

a. Metropolitan Statistical Area

3. Other

a. Product-user Segmentation

i. Pick a group of ppl based on how much they use their product
 b. Lifestyle Segmentation

i. Identifying certain groups by lifestyle and demographic traits

c. Benefits and Attitude Segmentation

i. Target individuals by what they want ex. Spanks

Niche Marketing

A strategy that focuses on comparitively narrow window of opportunity with a broad product

market or industry.

Benefits to the approach:

1. Provide entry into a larger market

2. Serves needs that existing products don’t

Examples of Niches

Heart Attack

Positioning

Fitting the product into the lifestyle of buyer.

Perception
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