Week 1-Week 12 Pmgtsept-Dec2015

PROMOTIONAL
MANAGEMENT
1.INTRO TO IMC: A BIGGER
PERSPECTIVES OF IMC
SEPT-DEC 2015
Learning Objectives
Understand how advertising has moved from traditional medium to the Internet, (b) how website
owners have more control over their advertising, and (c) the cost of such advertising.
Understand the rapidly changing media environment is making it increasingly difficult to reach
target audiences and communicate effectively with them.
Understand how traditional media is more and more often a pointer to an online device.
Understand the key aspect of IMC is that it encourages marketers to consider a variety of
communication tools and how they can be used to deliver messages about their company or
brands.
Understand that public relations generally has a broader objective than does publicity. Its
purpose is to establish and maintain a positive image of the company among its various publics.
Understand the definition of market positioning and the two approaches that can be taken to
achieve it consumer or competition.
Understand the process of developing a positioning strategy.
Learn the various approaches that can be used to position a brand and differentiate it from the
competition.
Understand the various marketing intermediaries and the role they play in the marketing process.
Understand the concepts of a push versus pull promotional strategy.
Last Updated:March 23, 2016
LMS SEGi education group
Its Googles World
The most powerful brand in the world
Its Googles World
Founded in 1998
Delivers relevant search results by favoring

pages linked to by other sites
Sells ads linked to search keywords
Annual revenue exceeds $10 billion
Keys to success
Simplicity
Speed
Accuracy
Google Adwords
Keyword-targeting advertising
Contextual ads
Text ads at top or side of search results

Advertisers compete for top spot
Cost is per click (CPC)
Appear on other relevant Web sites
Site-targeted
Generates sales and branding

Cost is per thousand impressions (CPM)
Google Rapidly Expanding
Beyond online search advertising
Automated purchase of radio ads

Magazine and newspaper ad-buying
YouTube
Google TV Ads
Partnership with Nielsen Media Research
New varieties of online ads
Rapidly Changing Media Environment
Increasingly difficult to target audiences &

communicate effectively
Consumers no longer passive recipients

They demand more than information
From a myriad of sources
Integrated Marketing Approach
Traditional mass media
Television, radio, magazines, newspapers,

billboards
Now drive consumers to Web sites
Online strategies
Provide detailed information

Be experiential, entertaining, interactive
MySpace, YouTube, Facebook, wireless
mobile media devices, e-mail
The New Look of Advertising
Interactive, Informative, Entertaining
Growth of Advertising and Promotion

Expenditure in Billions of Dollars
Advertising Outside
U.S.
2007
1980
U.S. Advertising
$0
$50
$100
$150
$200
$250
$300
$350
$400
What is Marketing?
An organizational function
Processes for creating,
communicating, and
delivering value to
customers
Managing customer
relationships in ways that
benefit the organization
and its stakeholders
Value
Value
Relationship
Relationship marketing
marketing
Mass
Mass customization
customization
Customer
Customer relationship
relationship
management
management (CRM)
(CRM)
The Scion Web Site
Consumers can now customize

the car they want to purchase
Marketing Mix
The four Ps
Product
Price
Place
Promotion
Coordinated Marketing Elements Build Image
Traditional Marketing Approach

Point of
purchase
Interactive
marketing
Special
events
Media
Advertising
Public
relations
Direct
marketing
Publicity
Sales
promotion
Packaging
Direct
response
Contemporary IMC Approach

Packaging
Sales
promotion
Point of
purchase
Publicity
Interactive
marketing
Media
Advertising
Direct
marketing
Direct
response
Public
relations
Special
events
Defining IMC
IMC
IMC isis aa strategic
strategic business
businessprocess
processused
used
to
toplan,
plan, develop,
develop, execute
execute and
and evaluate
evaluate
coordinated,
coordinated, measurable,
measurable, persuasive
persuasive brand
brand
communication
communication programs
programswith
withconsumers,
consumers,
customers,
customers, prospects
prospectsemployees
employeesand
andother
other
relevant
relevant external
external and
andinternal
internal audiences.
audiences.
The
The goal
goal of
ofIMC
IMCisisto
to generate
generate
short-term
financial
returns
short-term financial returnsand
and
build
long-term
brand
value.
build long-term brand value.
Contemporary Perspective of IMC
Recognized
Recognized as
as aa business
business process
process
IMC
IMC
Importance
of
audience
Multiple
relevant
audiences
Importance
of relevant
relevant
audience
Multiple
relevant
audiences
Demand
accountability
and
Demand for
for
accountability
and
Demand
for
accountability
Demand
for
accountability
measurement
of
outcomes
measurement of outcomes
Test Your Knowledge

Why are marketers decreasing the use of mass media
advertising and increasing the use of integrated marketing
communications?
A) The mass market has become fragmented.
B) New technologies have given consumers
greater control over the communication
process.
C) Use of the Internet and electronic
commerce is growing.
D) New global markets are emerging.
E) All of the above.
Growing Importance of IMC
Strategic integration of communications

functions
Avoids duplication
Synergy among promotional tools
More efficient and effective marketing
Rapidly changing environment
Consumers
Technology
Media
Behind the Growing Importance of IMC

From
Toward
Media
Media advertising
advertising
Multiple
Multiple forms
forms of
of communication
communication
Mass
Mass media
media
Specialized
Specialized media
media
Manufacturer
Manufacturer dominance
dominance
Retailer
Retailer dominance
dominance
General
General focus
focus
Data-based
Data-based marketing
marketing
Low
Low agency
agency accountability
accountability
Greater
Greater agency
agency accountability
accountability
Traditional
Traditional compensation
compensation
Performance-based
Performance-based compensation
compensation
Limited
Limited Internet
Internet availability
availability
Widespread
Widespread Internet
Internet availability
availability
The Role of IMC in Branding
Brand identity is a combination of
Name
Logo
Symbols
Design
Packaging
Performance
Image or associations
IMC plays a major role in

developing and sustaining
brand identity and equity
The Most Valuable Brands in the World

Rank
Brand
Brand Value
(Billions)
Coca-Cola
Microsoft
58.71
IBM
57.09
General Electric
51.57
Nokia
33.70
Toyota
32.07
Intel
30.95
McDonalds
29.39
Disney
29.21
Mercedes-Benz
23.57
10
$65.32
Finding New Ways to Build Brands
Consumers are driving the trend
They view brands as a form of

self-expression
They know more about brands and the
companies that make them
Cynicism about corporations is at an
all-time high
They seek and share information with other
consumers via the Internet
Finding New Ways to Build Brands
Get consumers involved
Apple Computer lets consumers test products

in store
Starbucks positions stores as a community
gathering place
Interaction can be the best marketing
MySpace
Facebook
Google
The Promotional Mix

Advertising
Advertising
Direct
Direct Marketing
Marketing
Interactive/
Interactive/
Internet
Internet Marketing
Marketing
Sales
Sales Promotion
Promotion
Publicity/Public
Publicity/Public
Relations
Relations
Personal
Personal Selling
Selling
Advertising
Paid forms of non-personal communication
About an organization, product, service, or

idea by an identified sponsor
No feedback from audience
Important for products and services aimed
at mass consumer markets
Cost effective
The Most Common Forms of Advertising

National
National Advertising
Advertising
Retail/Local
Retail/Local Advertising
Advertising
Consumers
Primary
Primary vs.
vs. Selective
Selective
Demand
Demand Advertising
Advertising
Business-to-Business
Business-to-Business Advertising
Advertising
Professional
Professional Advertising
Advertising
Trade
Trade Advertising
Advertising
Organizations
Direct Marketing
Direct
Direct
Mail
Mail
Direct
Direct
Response
Response
Advertising
Advertising
Internet
Internet
Sales
Sales
Direct
Direct
Marketing
Marketing
Shopping
Shopping
Channels
Channels
Telemarketing
Telemarketing
Catalogs
Catalogs
Bose Uses Direct Response Advertising
Includes call
for action.
Phone number,
mail-in form,
website address
provided.
Interactive/Internet Marketing
Back-and-forth communication
Users participate in and modify the form and

content of information
Happens in real time
Interactive media
Internet
CD-ROMs
Kiosks
Interactive television
Digital cell phones
Sales Promotion
*Click outside of the video screen to advance to the next slide
Using the Internet as an IMC Tool

The
The
Internet
Internet
Educates
Educates or
or
informs
informs
customers
customers
Obtains
Obtains
customer
customer
database
database
information
information
AA persuasive
persuasive
advertising
advertising
medium
medium
Communicates
Communicates
and
and interacts
interacts
with
with buyers
buyers
AA sales
sales tool
tool
or
or an
an actual
actual
sales
sales vehicle
vehicle
Provides
Provides
customer
customer
service
service and
and
support
support
Builds
Builds and
and
maintains
maintains
customer
customer
relationships
relationships
Sales Promotion
Coupons
Samples
Premiums
Trade Allowances
Contest/Sweepstake
POP Displays
Refunds/Rebates
Training Programs
Bonus Packs
Trade Shows
Loyalty Programs
Events
Coop Advertising
Consumer-oriented
Trade-oriented
[For end-users]
[For resellers]
Sales Promotion
Most of the promotional budget now goes to

sales promotion
Declining brand loyalty

Increased consumer sensitivity to deals
Larger and more powerful retailers are
demanding more trade promotion support
Test Your Knowledge

_____ is nonpersonal communication,
neither directly paid for nor run under,
identified sponsorship.
A)
Advertising
B)
Sales promotion
C)
Publicity
D)
Public relations
E)
Personal selling
Advertising Versus Publicity

Factor
Factor
Advertising
Advertising
Publicity
Publicity
Control
Control
Great
Great
Little
Little
Credibility
Credibility
Lower
Lower
Higher
Higher
Reach
Reach
Measurable
Measurable
Undetermined
Undetermined
Frequency
Frequency
Schedulable
Schedulable
Uncontrollable
Uncontrollable
Cost
Cost
High/Specific
High/Specific
Low/Unspecified
Low/Unspecified
Flexibility
Flexibility
High
High
Low
Low
Timing
Timing
Specifiable
Specifiable
Tentative
Tentative
Publicity Vehicles
Feature
Feature
Articles
Articles
News
News
Releases
Releases
Interviews
Interviews
Publicity
Publicity
Vehicles
Vehicles
Press
Press
Conferences
Conferences
Special
Special
Events
Events
Public Relations
Systematically planning and

distributing information in an attempt to
control and manage image and the nature
of the publicity received.
Public Relations Tools

Cause-related
Marketing
Publicity
Publicity
Vehicles
Vehicles
Special
Special
Publications
Publications
Community
Community
Activities
Activities
Corporate
Corporate
Advertising
Advertising
Public Affairs
Affairs
Public
Activities
Activities
Special
Special Event
Event
Sponsorship
Sponsorship
Personal Selling
Person-to-person communication
A seller attempts to assist and/or persuade

prospective buyers to make a purchase or act
on an idea
IMC Audience Contact Tools

Broadcast
Broadcast
media
media
Print
Print media
media
Public
Public
Relations/
Relations/
publicity
publicity
Internet/
Internet/
interactive
interactive
Direct
Direct
marketing
marketing
Out-of-home
Out-of-home
media
media
Target
Target Audience
Audience
Personal
Personal
selling
selling
Point-ofPoint-ofpurchase
purchase
Sales
Sales
Promotion
Promotion
Word-ofWord-ofmouth
mouth
Events
Events and
and
sponsorship
sponsorship
Product
Product
placements
placements
Test Your Knowledge
The _____ is a written document that

describes the overall marketing strategy
and programs developed for an
organization, product line, or brand.
A) promotional plan
B) marketing plan
C) communications plan
D) marketing audit
E) situation analysis
44
The IMC Planning Process
Developing an integrated marketing

communications plan requires
Planning
Executing
Evaluating
Controlling
Basic Elements of a Marketing Plan

1.
1. AA detailed
detailed situation
situation analysis
analysis
2.
2. Specific
Specific marketing
marketing objectives
objectives
3.
3. AA marketing
marketing strategy
strategy and
and program
program
4.
4. AA program
program for
for implementing
implementing the
the strategy
strategy
5.
5. AA process
process for
for monitoring
monitoring and
and evaluating
evaluating performance
performance
Model of
the IMC Planning Process
Review of marketing plan
Analysis of Promotional program situation
Analysis of communications process
Budget determination
Develop integrated marketing communications program
Advertising
Sales
promotion
PR/
publicity
Personal
selling
Direct
marketing
Develop objectives and strategy for each

Develop message, media strategy, and tactics
Integrate and implement marketing communications strategies
Monitor, evaluate and control IMC Program
Internet/
interactive
The Role of IMC in

the Marketing
Process
48
Under Armour Protects Its House
Under Armour Protects Its House
Keys to Under Armours success
Niche markets
Strong product positioning
Unique brand identity
Strong brand reputation
Marketing and Promotions Process Model

Opportunity
analysis
Identifying
markets
Product
decisions
Promotional
decisions
Competitive
analysis
Market
segmentation
Pricing
decisions
Channel-ofdistribution
decisions
Target
marketing
Advertising
Direct
marketing
Interactive
marketing
Selecting a
target market
Positioning
through
marketing
strategies
Sales
promotion
Publicity
and public
relations
Personal
selling
Promotion
to final
buyer
Internet/
Interactive
Promotion
to trade
Resellers
Purchase
Ultimate
consumer
Consumers
Businesses
Marketing to a Lifestyle
Padres Pitch to the Fans
The Target Marketing Process
Identify
Identify markets
markets with
with unfulfilled
unfulfilled needs
needs
Determine
Determine market
market segmentation
segmentation
Select
Select market
market to
to target
target
Position
Position through
through marketing
marketing strategies
strategies
A Product for Every Market Segment
The Marketing Segmentation Process

Find
Find ways
ways to
to group
group consumers
consumers
according
according to
to their
their needs
needs
Find
Find ways
ways to
to group
group marketing
marketing actions
actions
available
available to
to the
the organization
organization
Develop
Develop aa market/product
market/product grid
grid to
to relate
relate the
the market
market
segments
segments to
to the
the firms
firms products
products and
and actions
actions
Select
Select the
the product
product segments
segments toward
toward which
which the
the
firm
firm will
will direct
direct its
its marketing
marketing actions
actions
Take
Take marketing
marketing actions
actions to
to reach
reach target
target segments
segments
What do NASCAR, Coors, and Unilever know?
Bases for Segmentation

Psychographic
Psychographic
Demographic
Demographic
Customer
Customer
Characteristics
Characteristics
Socioeconomic
Socioeconomic
Geographic
Geographic
Behavior
Behavior
Usage
Usage
Outlet
Outlet Type
Type
Buying
Buying
Situation
Situation
Awareness
Awareness
Benefits
Benefits
Geographic Marketing
Demographic Segmentation
Psychographic Segmentation
Dividing the market on the basis of
Personality
Values
Lifestyle
VALS lifestyle segmentation
Eight lifestyles with distinctive attitudes,

behaviors, and decision-making patterns
Combined with estimate of the resources
on which the consumer can draw
Behavioristic Segmentation
Usage
Buying
Responses
Loyalties
Benefit Segmentation
PRIZM Cluster Profiles

HIGH
LOW
Test Your Knowledge
The key factor in communicating information about

a brand and differentiating it from competitors is:
A) Its perceived price differential
B) Its integrated promotional strategy
C) The market positioning strategy assigned
it by the manufacturer
D) Its distribution intensity
E) The benefits the brand offers
Selecting a Target Market

Determine how many
segments to enter
Determine which segments
have the greatest potential
Market Positioning
Fitting the product or service to one or more segments of the
broad market in such a way
as to set it apart from the competition
Developing a Positioning Strategy

What
What position
position do
do
we
we have
have now?
now?
Does
Does our
our creative
creative
strategy
strategy
match
match it?
it?
What
What position
position do
do
we
we want
want to
to own?
own?
The
The
Position
Position
Do
Do we
we have
have the
the
tenacity
tenacity to
to stay
stay
with
with it?
it?
From
From whom
whom must
must
we
we win
win this
this
position?
position?
Do
Do we
we have
have the
the
money
money to
to do
do the
the
job?
job?
Positioning Strategies
How should
we position?
Attributes
Attributes and
and Benefits?
Benefits?
Price
Price or
or Quality?
Quality?
Use
Use or
or Application?
Application?
Product
Product Class?
Class?
Product
Product User?
User?
Competitor?
Competitor?
Cultural
Cultural Symbols?
Symbols?
Positioning by Use or Application
Developing a Positioning Platform

1.
1.
Identify
Identify the
the competitors
competitors
2.
2.
Assess
Assess perceptions
perceptions of
of them
them
3.
3.
Determine
Determine their
their positions
positions
4.
4.
Analyze
Analyze consumer
consumer preferences
preferences
5.
5.
Make
Make the
the positioning
positioning decision
decision
6.
6.
Monitor
Monitor the
the position
position
Making the Positioning Decision

Is
Is the
the current
current
position
position strategy
strategy
working?
working?
Is
Is the
the segmentation
segmentation
strategy
strategy
appropriate?
appropriate?
The
The
Checklist
Checklist
How
How strong
strong is
is the
the
competition?
competition?
Are
Are there
there sufficient
sufficient
resources
resources to
to
communicate
communicate the
the
position?
position?
Advertising Develops Brand Image
Branding and Product Names
Brand names often communicate

attributes and meaning
Safeguard
I Cant Believe Its Not Butter!
Easy-Off
Arrid
Spic and Span
Branding and Packaging Are Linked

Product
Product Decisions
Decisions
BRANDING
BRANDING
Brand
Brand
name
name
communcommunicates
icates
attributes
attributes
and
and
meaning
meaning
Advertising
Advertising
creates
creates and
and
maintains
maintains
brand
brand
equity
equity
PACKAGING
PACKAGING
Has
Has become
become
increasingly
increasingly
important
important
Often
Often
customers
customers
first
first
exposure
exposure to
to
product
product
A Package is More than a Container
Pricing Decisions
What
What consumers
consumers give
give
up
up to
to purchase
purchase aa
product
product or
or service
service
Factors
Factors the
the firm
firm must
must
consider
consider
Costs
Costs
Demand
Demand
Price
Price Variable
Variable
Time
Time
Mental
Mental activity
activity
Competition
Competition
Perceived
Perceived value
value
Behavioral
Behavioral effort
effort
Relating Price to Ads and Promotion

Pricing
Pricing
Considerations
Considerations
Price
Price must
must be
be consistent
consistent with
with
perceptions
perceptions of
of the
the product
product
Higher
Higher prices
prices communicate
communicate higher
higher
product
product quality
quality
Lower
Lower prices
prices reflect
reflect bargain
bargain or
or
value
value perceptions
perceptions
Price,
Price, advertising
advertising and
and distribution
distribution be
be
unified
unified in
in
identifying
identifying product
product position
position
AA product
product positioned
positioned as
as high
high quality
quality
while
while carrying
carrying aa lower
lower price
price than
than
competitors
competitors will
will confuse
confuse customers
customers
When Price is Not an Issue
Distribution Channel Decisions

Selecting
Selecting
Distribution
Distribution
Channel
Channel
Decisions
Decisions
Managing
Managing
Motivating
Motivating
Distribution Intermediaries
Brokers
Brokers
Distribution
Distribution
Channel
Channel
Intermediaries
Intermediaries
Distributors
Distributors
Wholesalers
Wholesalers
Retailers
Retailers
Promotional Strategy: Push or Pull?

Push
Push Policy
Policy
Pull
Pull Policy
Policy
Producer
Producer
Producer
Producer
Wholesaler
Wholesaler
Wholesaler
Wholesaler
Retailer
Retailer
Retailer
Retailer
Consumer
Consumer
Consumer
Consumer
Information Flow
Test Your Knowledge
An ad in a publication aimed at veterinarians explains why they

should recommend Eukanuba cat food to the owners of the cats
they treat. This is an example of:
A) Consumer advertising
B) A promotional pull strategy
C) A harvesting strategy
D) A consumer promotion
E) A promotional push strategy
TUTORIAL
You plan to draft your assignment

following the chapter 1 marketing process,
outline the structure of your content .
84
PROMOTIONAL
MANAGEMENT
2. ROLE OF ADV AGENCY
JUNE-AUG 2015
On completion of these chapters you

should be able to:
Understand the role of creative boutiques in planning an IMC program.

Analyse the role of media buying services.
Analyse how advertising agencies are compensated for their work.
Understand the agency evaluation, which is often done on a subjective, informal
basis, particularly in smaller companies where ad budgets are low or advertising is
not seen as a critical factors in the firms marketing performance.
Outline the reasons why/how an agency loses clients.
Understand the various ways an agency can gain new business.
Understand about how agencies can use ingenuity to win awards, and how winning
award brings clients.
Analyze the role of sales promotion agencies.
Understands the services provided by public relations firms.
Outline the role of interactive agencies.
Understand the marketing research agency as a collateral service in the promotional
process.
Analyze type of website that would be developed by an interactive ad agency.
86
Participants in the IMC Process
Advertiser
Advertiser (Client)
(Client)
Advertising
Advertising agency
agency
Media
Media organizations
organizations
Marketing
Marketing
communications
communications
specialist
specialist
organizations
organizations
Collateral
Collateral services
services
DirectDirectresponse
response
agencies
agencies
Sales
Sales
promotion
promotion
agencies
agencies
Public
Public
relations
relations
firms
firms
Interactive
Interactive
agencies
agencies
Organizing for Advertising and Promotion
The way a company (the client) organizes

depends on
Its size
The number of products it markets
The role of advertising and promotion in the
marketing mix
The budget
Its marketing organization structure
Advertising Dept. Under Centralized System
President
President
Production
Production
Finance
Finance
Marketing
Marketing
research
research
Marketing
Marketing
Advertising
Advertising Sales
Sales
Research
Research
and
and
developdevelopment
ment
Human
Human
resources
resources
Product
Product
planning
planning
Pros & Cons of a Centralized System

+ Positive
- Negative
Better
Better
communications
communications
Fewer
Fewer
personnel
personnel
Less
Less goal
goal
involvement
involvement
The
The
Centralized
Centralized
System
System
Longer
Longer
response
response time
time
Continuity
Continuity
More
More top
top
management
management
involvement
involvement
Impractical
Impractical for
for
multiple
multiple brands,
brands,
products,
products, divisions
divisions
Decentralized Advertising System

Corporate
Production
Finance
Sales
Marketing
R&D
Product
Management
Brand
Manager
Ad agency
Brand
Manager
Ad agency
Human
Resources
Marketing
services
Advertising
Dept
Marketing
Research
Sales promotion
Package design
Merchandising
Pros & Cons of Decentralization

+ Positive
- Negative
Ineffective
Ineffective
decision
decision making
making
Concentrated
Concentrated
attention
attention
Rapid
Rapid problem
problem
response
response
Increased
Increased
flexibility
flexibility
The
The
Decentralized
Decentralized
System
System
Internal
Internal conflicts
conflicts
Unequal
Unequal
distribution
distribution
of
of funds
funds
Lack
Lack of
of
Authority
Authority
Test Your Knowledge

A major reason why some companies choose to use an in-house
agency is to:
A) Maintain creative freshness
B) Reduce advertising and promotions costs
C) Better understand how advertising works
D) Win advertising awards that will enhance
the image of their brands
E) Do all of the above
In-House Agencies
Benettons in-house agency works with

outside agencies to develop ads
Pros & Cons of In-House Agencies

+ Positive
- Negative
Cost
Cost
savings
savings
More
More
control
control
Better
Better
coordination
coordination
Less
Less
experience
experience
The
The
In-house
In-house
Agency
Agency
Less
Less
objectivity
objectivity
Less
Less
flexibility
flexibility
The Ad Agencys Role
Reasons for using an ad agency
Highly skilled specialists

Specialization in a particular industry
Objective viewpoint of the market
Broad range of experience
Ad Agencies Have Skilled Specialists
Artists
Artists
Writers
Writers
Researchers
Researchers
Photographers
Photographers
Media
Media Analysts
Analysts
Other
Other Skills
Skills
Full-Service Agencies
Planning
Planning
advertising
advertising
Creating
Creating
advertising
advertising
Producing
Producing
advertising
advertising
Full
Full range
range of
of
marketing
marketing
communication
communication
and
and promotion
promotion
services
services
Direct
Direct marketing
marketing
Selecting
Selecting media
media
Interactive
Interactive
capabilities
capabilities
Strategic
Strategic market
market
planning
planning
Sales
Sales
promotions
promotions
Performing
Performing
research
research
Nonadvertising
Nonadvertising
services
services
Package
Package design
design
Public
Public relations
relations
and
and publicity
publicity
Typical Full-Service Agency Organization

Board of
directors
President
VP creative
services
VP account
services
Print
production
Writers
Art directors
TV
production
Traffic
VP marketing
services
Media
Account
supervision
VP management
and finance
Sales
Promotion
Research
Office
management
Account
Executive
Finance
Accounting
Personnel
Services Provided by Agencies

Agency
Agency Services
Services
Account
Account
Services
Services
The
The link
link
between
between
agency
agencyand
and
client
client
Managed
Managed by
by
the
account
the account
executive
executive
Marketing
Marketing
Services
Services
Research
Research
department
department
May
Mayinclude
include
account
account
planners
planners
Media
Media dept.
dept.
obtains
obtains
media
media
space,
space, time
time
Creative
Creative
Services
Services
Creation,
Creation,
execution
execution of
of
ads
ads
Copywriter
Copywriter
artists,
artists, other
other
specialists
specialists
Mgmt
Mgmt &
&
Finance
Finance
Accounting
Accounting
Finance
Finance
Human
Human
resources
resources
New
New
business
business
generation
generation
The Role of Creative Boutiques
Creative
Creative
Boutiques
Boutiques
Provide
Provide only
only creative
creative services
services
Full-service
Full-service agencies
agencies may
may
subcontract
subcontract with
with creative
creative
boutiques
boutiques
Ability
Ability to
to turn
turn out
out inventive
inventive
creative
creative work
work quickly
quickly
Media Buying Can be Specialized
Media
Media
Specialist
Specialist
Companies
Companies
Specialize
Specialize in
in buying
buying media,
media,
especially
especially broadcast
broadcast time
time
Agencies
Agencies and
and clients
clients develop
develop
media
media strategy
strategy
Media
Media buying
buying organizations
organizations
implement
implement the
the strategy
strategy and
and
buy
buy time
time and
and space
space
Test Your Knowledge

Which of the following statements about changes in the way
advertising agencies are being compensated is true?
A) Most clients do not pay full commissions to
their agencies because they prefer fee- or
incentive-based systems.
B) From the viewpoints of both the client and the agency,
the traditional commission system is superior to
negotiated commissions.
C) Most clients want their agencies to be in total charge
of the integrated marketing communications process,
so they prefer to compensate them based on media
commissions.
D) Statements A, B, and C are all true.
Methods of Agency Compensation
Commissions
Commissions
from
from media
media
Compensation
Compensation
Methods
Methods
Fee,
Fee, cost,
cost, and
and incentiveincentivebased
based systems
systems
Percentage
Percentage
charges
charges
Evaluating Agencies
Financial
Audit
Qualitative
Audit
Verify costs, expenses
Planning
Personnel hours charged
Program development
Payments to media
Implementation
Payments to suppliers
Results achieved
Top Agency Value-Add Activities
New media
guidance,
solutions
Brand
driver
evaluation
Talented
people
Integrated
disciplines
& functions
Creative
ideas
Collaboration
Ideas/programs
for multi comm.
programs
Loyalty to a Single Agency
Young & Rubicam

has handled the
Dr Pepper
account for
over 30 years
Why Agencies Lose Clients

Poor
performance
Declining
sales
Personnel
changes
Poor
communications
Payment
conflicts
Changes
in size of client
or agency
Unrealistic
Client demands
Policy Changes
Conflicts of
interest
Policy Changes
Change in
clients strategy
Personality
conflicts
How Agencies Gain Clients
Referrals
Referrals
Presentations
Presentations
Solicitations
Solicitations
Public
Public Relations
Relations
Image,
Image, Reputation
Reputation
The Hottest Agency in the Ad Business
Direct-Marketing Agency Activities
Database
Database
management
management
DirectDirectMarketing
Marketing
Agencies
Agencies
Direct
Direct
mail
mail
Research
Research
Media
Media services
services
Creative
Creative
Database
Database
development,
development,
management
management
Production
Production
Direct-Marketing Agency
Departments in a typical direct-marketing

agency
Account management
Creative
Media
Database development and management
Sales Promotion Agencies

Promotional
Promotional planning
planning
Creative
Creative research
research
Tie-in
Tie-in coordination
coordination
Fulfillment
Fulfillment
Premium
Premium design
design and
and
manufacturing
manufacturing
Catalog
Catalog production
production
Contest/sweepstakes
Contest/sweepstakes
management
management
Functions Performed by Public Relations Firms
Strategy
development
Public
affairs
Special events
Generating
publicity
News releases,
communication
Managing
crises
Research
Coordination
with promotional
areas
Lobbying
Functions Performed by Interactive Agencies
Web
Web
banner
banner ads
ads
CD-ROMs
CD-ROMs
Interactive
Interactive
Media
Media Creation
Creation
Web
Web sites
sites
Kiosks
Kiosks
Search
Search engine
engine
optimization
optimization
Text
Text messages
messages
Website for the California Milk Advisory Board
Marketing Research Companies
Help
Help clients
clients underunderstand
stand target
target audience
audience
Qualitative
Qualitative research
research
Quantitative
Quantitative studies
studies
Pros and Cons of Integrated Services

+ Positive
- Negative
Greater
Greater synergy
synergy
Convenience
Convenience
Single
Single image
image for
for
product
product or
or service
service
Budget
Budget politics
politics
Integrated
Integrated
Services
Services
Poor
Poor
communication
communication
No
No synergy
synergy
Test Your Knowledge

Marketing executives say the biggest obstacle to implementing
IMC is:
A) Lack of management support
B) Insufficient budgets
C) Lack of people with the right perspective
and skills
D) Inexperienced ad agencies
Obstacles to Implementing IMC
Key obstacles
Lack of people with the broad perspective and

skills to make it work
Internal turf battles
Agency egos
Fear of budget reductions
Ensuring consistent execution
Measuring success
Compensation
TUTORIAL
1.
2.
3.
4.
5.
List all IMC

Participants
Why company
refuse to apply IMC
in their organization.
Explain adv of
implementing IMC in
your organization
How to compensate
agency
6.
7.
8.
Why agency loose

client
How agency can
gain clients
Discuss all type of
adv agency
Write a short note on
the following
Creative boutique
Full services/
integrated
Media specialist
company
121
PROMOTIONAL
MANAGEMENT
3. COMMUNICATION PROCESS
JUNE-AUG
2015
The Nature of Communication
The communication process is complex, and often unsuccessful
Source Encoding
Forms of Encoding
Verbal
Verbal
Spoken
Spoken
Word
Word
Written
Written
Word
Word
Song
Song
Lyrics
Lyrics
Graphic
Graphic
Pictures
Pictures
Drawings
Drawings
Charts
Charts
Musical
Musical
Animation
Animation
ArrangeArrange-
Action/
Action/
InstrumInstrum-
Pace/
Pace/
Voices
Voices
Shape/
Shape/
ment
ment
entation
entation
Motion
Motion
Speed
Speed
Form
Form
The Semiotic Perspective
Object
Object
Interpretant
Interpretant
Sign/Symbol
Sign/Symbol
An Image Can Convey More Than Words
What is the symbolic meaning of this Levi ad?

The Model
The Clothes
The Setting
The Statement
The Tag Line
Communication Channel
Personal
Personal
Channels
Channels
Word of
Mouth
Nonpersonal
Nonpersonal
Channels
Channels
Personal
Selling
Print
Media
Broadcast
Media
Marketers Embrace Buzz Marketing
Apples for Dessert
Field of Experience Overlap

Different Worlds
Sender
Sender
Experience
Experience
Receiver
Receiver
Experience
Experience
Moderate Commonality
Sender
Sender
Experience
Experience
Receiver
Receiver
Experience
Experience
High Commonality
Receiver
Receiver
Sender
Sender
Experience
Experience
Experience
Experience
Receiver
Experience
Noise
Successful Communication
Select
Select an
an appropriate
appropriate source
source
Develop
Develop aa properly
properly encoded
encoded message
message
Select
Select appropriate
appropriate channel
channel for
for target
target audience
audience
Receive
Receive feedback
feedback
Identifying the Target Audience
Mass Markets and Audiences

Markets Segments
Niche Markets
Individual
and Group
Audiences
Connecting on an Emotional Level
Cognitive Response
AA method
method for
for examining
examining consumers
consumerscognitive
cognitive
processing
processing of
of advertising
advertising messages
messages by
by looking
looking at
at
their
their cognitive
cognitive responses
responses to
to hearing,
hearing, viewing,
viewing, or
or
reading
reading communications
communications
Examines
Examines thoughts
thoughts that
that are
are evoked
evoked
by
by an
an advertising
advertising message
message
Consumers
Consumers write
write down
down or
or verbally
verbally report
report
their
their reactions
reactions to
to aa message
message
A Model of Cognitive Response
Cognitive Response Categories

Product/Message
Product/Message Thoughts
Thoughts
Counterarguments
Counterarguments
Support
Support arguments
arguments
Source-Oriented
Source-Oriented Thoughts
Thoughts
Source
Source derogation
derogation
Source
Source bolstering
bolstering
Ad
Ad Execution
Execution Thoughts
Thoughts
Thoughts
Thoughts about
about
the
the ad
ad itself
itself
Affect
Affect attitude
attitude
toward
toward the
the ad
ad
Elaboration Likelihood Model

Focuses
Focuses on
on the
the way
way consumers
consumers respond
respond to
to persuasive
persuasive
messages,
messages, based
based on
on the
the amount
amount and
and nature
nature of
of elaboration
elaboration
or
or processing
processing of
of information
information
Routes to attitude change
Central
Central route
route
ability
ability and
and
motivation
motivation to
to process
process
aa message
message is
is high
high and
and
close
close attention
attention is
is paid
paid
to
to message
message content
content
Peripheral
Peripheral route
route
ability
ability and
and
motivation
motivation to
to process
process
aa message
message is
is low;
low;
receiver
receiver focuses
focuses more
more
on
on peripheral
peripheral cues
cues
than
than on
on message
message
content
content
Test Your Knowledge

The elaboration likelihood model (ELM) states that there are two
routes to persuasion, the central route and the peripheral route. With
the peripheral route:
A) The message is more likely to be received
if a celebrity endorser is used
B) The message should lots of information
C) The receiver is viewed as very actively
involved in the communication process
D) The quality of the message claims are
more important than the spokesperson,
headline, pictures, or music bed
E) The sender is dealing with a highinvolvement buying situation
Celebrity Endorsers Can Be Peripheral Cues
How Advertising Works
Promotional Planning Elements
Promotional
Promotional Planning
Planning
Receiver
Receiver
Comprehension
Comprehension
Channel
Channel
Presentation
Presentation
Message
Message
Yielding
Yielding
Source
Source
Attention
Attention
Can
Can the
the
receiver
receiver
comprehend
comprehend
the
the ad?
ad?
Which
Which media
media
will
will increase
increase
presentation?
presentation?
What
What type
type of
of
message
message will
will
create
create
favorable
favorable
attitudes?
attitudes?
Who
Who will
will be
be
effective
effective in
in
getting
getting
consumers
consumers
attention?
attention?
A Direct Source
Source Attributes Receiver Processing Modes
Source Credibility
Ethical
Ethical
Knowledgeable
Knowledgeable
Skillful
Skillful
Trustworthy
Trustworthy
Source
Source
Believable
Believable
Experienced
Experienced
Unbiased
Unbiased
Honest
Honest
Experts Lend Authority to an Appeal
Corporate Leaders as Spokespeople
Limitations of Credible Sources
High- and low-credibility sources
Equally effective when arguing for a position

opposing their own best interest
Sleeper effect
Persuasiveness increases over time
Source Attractiveness
Similarity
Similarity
Resemblance
Resemblance
between
between the
the
source
source and
and
recipient
recipient of
of the
the
message
message
Familiarity
Familiarity
Knowledge
Knowledge of
of the
the
source
source through
through
repeated
repeated or
or
prolonged
prolonged
exposure
exposure
Likeability
Likeability
Affection
Affection for
for the
the
source
source resulting
resulting
from
from physical
physical
appearance,
appearance,
behavior,
behavior, or
or
personal
personal traits
traits
Top Celebrity Endorsers

Top Male Endorsers
Tiger Woods
Michael Jordan
David Beckham
Lance Armstrong
Top Female Endorsers
Maria Sharapova
Jennifer Lopez
Jessica Simpson
Venus/Serena Williams
Annika Sorenstram
Test Your Knowledge

The use of celebrities in commercials is generally based on the
source characteristics of _____ and represents an attempt to induce
persuasion through the ______ process.
A) expertise; yielding
B) expertise; identification
C) power; identification
D) attractiveness; identification
E) attractiveness; internalization
Advertising Risks of Using Celebrities

The
The celebrity
celebrity may
may overshadow
overshadow
the
the product
product being
being endorsed
endorsed
The
The celebrity
celebrity may
may be
be overexposed,
overexposed,
reducing
reducing his
his or
or her
her credibility
credibility
The
The target
target audience
audience may
may not
not be
be
receptive
receptive to
to celebrity
celebrity endorsers
endorsers
The
The celebritys
celebritys behavior
behavior may
may pose
pose
aa risk
risk to
to the
the company
company
Endorser Traits
Meaning Movement & the Endorsement Process
Energy & Power The Athlete and the Product
Yao Ming is a Popular Endorser in China
Choosing a Celebrity Endorser
Match
Match w/audience
w/audience
Trust
Trust
Match
Match w/product
w/product
Risk
Risk
Factors
Image
Image
Familiarity
Familiarity
Cost
Cost
Likability
Likability
Familiarity and Appeal- THE SCIENTIFIC APPROACH
Q-scores
% of those who say one of my favorites

divided by % who have heard of him/her
Sports stars average 17; performers 18
Broken down by demographic criteria
Fame index database
10,000 celebrities rated by 250 criteria
Age, sex, residence, career highlights, charity

affiliations, fears, interests, additions, etc.
Applying Likability: Decorative Models
Source Power
Perceived
Perceived
control
control
Perceived
Perceived
concern
concern
Compliance
Compliance
Perceived
Perceived
scrutiny
scrutiny
Source power depends on several

factors:
1.
2.
The source must be perceived as being able to

administer positive or negative sanctions to the receiver
(perceived control)
The receiver must think the source cares about whether
or not the receiver conforms (perceived concern).
The receivers estimate of the sources ability to observe
conformity is also important (perceived scrutiny).
When a receiver perceives a source as having power,
influence occurs through a process known as
compliance. The receiver accepts the persuasive
influence of the source and acquiesces to his or her
position in hopes of obtaining a favorable reaction or
avoiding punishment.
163
Source Power
Message Structure
Recall
Order of Presentation
Beginning
Middle
End
COMMUNICATION TECHNIQUE
Conclusion Drawing
Message Sidedness
Refutation- TWO SIDE MESSAGE
Verbal vs. Visual Messages
Test Your Knowledge

The campaign centered around the theme Pork, the Other White
Meat is designed to show consumers that pork is as lean as
chicken. Ads in this campaign use:
A) Conclusion drawing
B) A fear appeal
C) A refutational appeal
D) A humorous appeal
E) An affective conclusion
Message Appeal Choices
Appeal
Appeal to
to the
the logical,
logical,
rational
rational minds
minds of
of
consumers
consumers
Appeal
Appeal to
to both
both
Appeal
Appeal to
to the
the feelings
feelings
and
and emotions
emotions of
of
consumers
consumers
Message Appeal Options

Comparative
Comparative
Ads
Ads
Especially
Especially
useful
useful for
for new
new
brands
brands
Often
Often used
used for
for
brands
brands with
with
small
small market
market
share
share
Used
Used often
often in
in
political
political
advertising
advertising
Fear
Fear
Appeals
Appeals
May
May stress
stress
physical
physical danger
danger
or
or threats
threats to
to
health
health
May
May identify
identify
social
social threats
threats
Can
Can backfire
backfire ifif
level
level of
of threat
threat
is
is too
too high
high
Humor
Humor
Appeals
Appeals
Can
Can attract
attract and
and
hold
hold attention
attention
Often
Often the
the best
best
remembered
remembered
Put
Put consumers
consumers
in
in aa positive
positive
mood
mood
Miller Lites Comparative Advertising
Fear Appeals and Message Acceptance
Protection Motivation
Dangers of
Hepatitis A
Havrix
vaccination
Humor Appeals
Pros
Cons
Aids
Aids attention
attention and
and
awareness
awareness
Does
Does not
not aid
aid persuasion
persuasion in
in
general
general
May
May aid
aid retention
retention of
of the
the
message
message
May
May harm
harm recall
recall and
and
comprehension
comprehension
Creates
Creates aa positive
positive mood
mood
and
and enhances
enhances persuasion
persuasion
May
May harm
harm complex
complex copy
copy
registration
registration
May
May aid
aid name
name and
and simple
simple
copy
copy registration
registration
Does
Does not
not aid
aid source
source
credibility
credibility
May
May serve
serve as
as aa distracter,
distracter,
reducing
reducing counterarguing
counterarguing
Is
Is not
not effective
effective in
in bringing
bringing
about
about sales
sales
May
May wear
wear out
out faster
faster than
than
non-humorous
non-humorous ads
ads
Humor in Print Media
Test Your Knowledge
An ad for Snorestop Extinguisher, a nose spray for eliminating

snoring, has the headline, Wife shoots husband and rests in
peace. This ad uses _____ to attract attention and convey a key
selling point.
A) a two-sided message approach
B) a humor appeal
C) comparative advertising
D) a refutational appeal
E) a primacy appeal
Channel Factors
Personal
Personal
Flexible
Flexible
Nonpersonal
Nonpersonal
No
No personal
personal
contact
contact
Geared
Geared to
to aa
large
large audience
audience
Static
Static
Powerful
Powerful
Real
Real time
time
Differences in Information Processing

Self-Paced
Self-Paced
Media
Media
Externally
Externally
Paced
Paced Media
Media
Newspapers
Newspapers
Magazines
Magazines
Direct Mail
Direct Mail
Internet
Internet
Radio
Radio
vs.
Television
Television
Context and Environment
Clutter
Clutter is the amount of advertising in a medium. For

television, clutter includes all the nonprogram material that
appears in the broadcast environment commercials,
promotional messages for shows, public service
announcements (PSAs), and the like.
Clutter is of increasing concern to advertisers because there
are so many messages competing for the consumers
attention. On average, one fourth of a broadcast hour on TV is
devoted to commercials; radio stations carry an average of
10-12 minutes of commercials per hour.
And, commercials have dropped in length from 60 seconds, to
30 seconds, to 15 seconds. That means many more
commercials are now being shown. A viewer watching three
hours of prime-time programming on the major networks
could be subjected to as many as 100 commercial messages.
183
SUMMARY
1.
2.
3.
4.
5.
6.
7.
DEF
COM PROCESS
SOURCE POWER/ CREDIBILITYENDORCER/ SCIENTIFIC APPROACH /
MESSAGE STRATEGIES
TRADITIONAL COM APPROACH AIDA
FCB GRID
CLUTTER
184
TUTORIAL
1.
2.
3.
4.
5.
6.
7.
8.
How FCB grid can be applied as marketing

strategy
Explain FCB Grid
What is the limitation of FCB grid
Explain forms of encoding
How can we minimize clutter in our A&P efforts.
Explain Channel
Explain Source
Describe credibility in A&P
185
PROMOTIONAL
MANAGEMENT
4. OBJECTIVES AND BUDGET
SETTING
JUNE-AUG
2015
Value of Objectives
Objectives
Objectives
Focus
Focus &
&
Coordination
Coordination
Plans
Plans &
&
Decisions
Decisions
Measurement
Measurement
&
& Control
Control
Characteristics of Objectives
Attainable
Attainable
Realistic
Realistic
Measurable
Measurable
Objectives
Objectives
Not
Not Mutually
Mutually
Exclusive
Exclusive
Specific
Specific
Advertising Can Shape Corporate Images
Marketing Versus Communications Objectives

Marketing
Marketing
Objectives
Objectives
Communications
Communications
Objectives
Objectives
Generally stated in the

Generally stated in the
firms
firms marketing
marketing plan
plan
Achieved through the
Achieved through the
overall
overall marketing
marketing plan
plan
Quantifiable, such as
Quantifiable, such as
sales,
sales, market
market share,
share, ROI
ROI
To be accomplished in a
To be accomplished in a
given
given period
period of
of time
time
Must be realistic and
Must be realistic and
attainable
attainable to
to be
be effective
effective
Derived from the overall

Derived from the overall
Vs.
marketing
marketing plan
plan
More narrow than
More narrow than
marketing
marketing objectives
objectives
Based on particular
Based on particular
communications
communications tasks
tasks
Designed to deliver
Designed to deliver
appropriate
appropriate messages
messages
Focused on a specific
Focused on a specific
target
target audience
audience
Many Different Factors Affect Sales
$
$ALE
ALE$
$
Promotion
Promotion
Distribution
Distribution
Product
Product
Competition
Competition Quality
Quality
Technology
Technology
Price
Price Policy
Policy
The
The
Economy
Economy
Sales As Advertising Objectives
Direct Response Ads Seek Sales
Many Ads Seek Communications Objectives
+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advertising and Movement Toward Action

Conative
Realm of motives.
Ads stimulate or
direct desires.
Affective
Realm of emotions.
Ads change attitudes
and feelings
Purchase
Conviction
Preference
Liking
Knowledge
Cognitive
Realm of thoughts.
Ads provide
information and facts.
Awareness
Point of purchase
Retail store ads, Deals
Last-chance offers
Price appeals, Testimonials
Competitive ads
Argumentative copy
Image copy
Status, glamour appeals
Announcements
Descriptive copy
Classified ads
Slogans, jingles, skywriting
Teaser campaigns
Image Ads Can Have a Strong

Effect on Preference
5% Use
20% Trial
25% Preference
40% Liking
Co
g
ni
t iv
Aff
e
ct
iv
Co
na
tiv
Pyramid of Communications Effects
70% Knowledge
90% Awareness
The DAGMAR Approach
Define
Advertising
Goals for
Measuring
Advertising
Results
DAGMAR Difficulties
Legitimate
Legitimate Problems
Problems
Attitude
Attitude -- Behavior
Behavior
Relationship
Relationship
Response
Response Hierarchy
Hierarchy
Problems
Problems
Questionable
Questionable Objections
Objections
Sales
Sales Objectives
Objectives
Needed
Needed
Costly
Costly and
and
Impractical
Impractical
Inhibits
Inhibits Creativity
Creativity
Advertising-Based View of Communications

Advertising Through Media
Acting on Consumers
Balancing Objectives and Budgets
What were
willing and
able to
spend
Dollars
What we need
to achieve our
objectives
Goals
Marginal Analysis
Sales in $
Sales
Gross Margin
Ad. Expenditure
Profit
Point A
Advertising / Promotion in $
BASIC Principle of Marginal Analysis
Increase
Increase Spending
Spending
IfIf the
the increased
increased cost
cost is
is less
less than
than the
the
incremental
incremental (marginal)
(marginal) return
return
Hold
Hold
Spending
Spending
IfIf the
the increased
increased cost
cost is
is equal
equal to
to the
the
incremental
(marginal) return.
return.
Decrease
Decrease Spending
Spending
IfIf the
the increased
increased cost
cost is
is more
more than
than
the
the incremental
(marginal) return
return
Assumptions for Marginal Analysis

Sales are the
result of
advertising and
promotion, and
nothing else
Sales are the

principal
objective of
advertising
and promotion
Advertising Sales/Response Functions
Advertising Expenditures
Initial Spending
Little Effect
Middle Level
High Effect
High Spending
Little Effect
B. S-Shaped
Response
Function
Incremental Sales
Incremental Sales
A. ConcaveDownward
Response Curve
Range A
Range B
Range C
Advertising Expenditures
Top-Down Budgeting
Top
Top Management
Management Sets
Sets the
the Spending
Spending Limit
Limit
The
The Promotion
Promotion Budget
Budget Is
Is Set
Set to
to Stay
Stay Within
Within
the
the Spending
Spending Limit
Limit
Top-Down Budgeting Methods

Competitive
Competitive
Parity
Parity
Arbitrary
Arbitrary
Allocation
Allocation
Top
Top
Management
Management
Return
Return on
on
Investment
Investment
Percentage
Percentage
of
of Sales
Sales
Affordable
Affordable
Method
Method
Bottom-Up Budgeting
Total
Total Budget
Budget Is
Is Approved
Approved by
by
Top
Top Management
Management
Cost
Cost of
of Activities
Activities are
are Budgeted
Budgeted
Activities
Activities to
to Achieve
Achieve Objectives
Objectives
Are
Are Planned
Planned
Promotional
Promotional Objectives
Objectives Are
Are Set
Set
Objective and Task Method
Establish
Establish Objectives
Objectives
(create
(create awareness
awareness of
of new
new product
product among
among
20
20 percent
percent of
of target
target market)
market)
Determine
Determine Specific
Specific Tasks
Tasks
(advertise
(advertise on
on market
market area
area television
television and
and
radio
radio and
and local
local newspapers)
newspapers)
Estimate
Estimate Costs
Costs Associated
Associated with
with Tasks
Tasks
(determine
(determine costs
costs of
of advertising,
advertising,
promotions,
promotions, etc)
etc)
Are There Economies of Scale?

Proposition I
Larger firms can support their brands with lower relative
advertising costs than smaller firms.
No evidence to support this!
Proposition II
The leading brand in a product group enjoys lower advertising
costs per sales dollar than do other brands.
Proposition III
There is a static relationship between advertising costs per
dollar of sales and the size of the advertiser.
High
Low
Competitors
Share of Voice
Ad Spending and Share of Voice
Decreasefind
Decreasefind aa
Defensible
Defensible Niche
Niche
Increase
Increase to
to Defend
Defend
Attack
Attack With
With Large
Large
SOV
SOV Premium
Premium
Maintain
Maintain Modest
Modest
Spending
Spending Premium
Premium
Low
High
Your Share of Market
PROMOTIONAL
MANAGEMENT
5. CREATIVE IN
ADVERTISEMENT SETTING
JUNE-AUG
2015
Advertising Creativity
Creative
Creative
Strategy
Strategy
Determining
Determining what
what the
the
advertising
advertising message
message will
will say
say
or
or communicate
communicate
Creative
Creative
Tactics
Tactics
Determining
Determining how
how the
the
message
message strategy
strategy will
will be
be
executed
executed
Taglines That Set Vegas Part
What happens here, stays here

Be anyone
Your Vegas is Showing
Best Ads of all Time?
Nissan
Enjoy the ride
Alka-Seltzer
Mama Mia! Thats a spicy meatball!

I cant believe I ate the whole thing
Hard- vs. Soft-Sell Advertising
The Power Idea
Describable
Describable
in
in aa simple
simple
word
word or
or
phrase
phrase
Likely
Likely to
to
attract
attract the
the
prospects
prospects
attention
attention
Lets
Lets
prospects
prospects
vividly
vividly
experience
experience
the
the goods
goods
Revolves
Revolves
around
around the
the
clinching
clinching
benefit
benefit
Allows
Allows you
you to
to
brand
brand the
the
advertising
advertising
Creativity and Synergy

Agency
Client
Account
executives
Marketing
managers
Media
planners
Brand
managers
Researchers
Attorneys
Upper
managemen
t
An Absolut World
The Only Rule in Advertising
There are no rules
The Perpetual Debate
Only artistic
value and
originality count
It isnt creative if it
doesnt sell
Stick with
what
works
Try
something
new
Suits
Artists
Wrigley Takes a Creative Risk
Creative Personnel
Unconventional
Abstract
Less
structured
Less
organized
Intuitive
Youngs Creative Process

Immersion
Immersion
Get
Get raw
raw material
material and
and data,
data, and
and
immerse
immerse yourself
yourself in
in the
the problem
problem
Digestion
Digestion
Take
Take the
the information,
information, work
work itit over,
over,
wrestle
wrestle with
with itit in
in your
your mind
mind
Incubation
Incubation
Turn
Turn the
the information
information over
over to
to the
the
subconscious
subconscious to
to do
do the
the work
work
Illumination
Illumination
Eureka!
Eureka! II have
have it!
it! phenomenon
phenomenon
Verification
Verification
Study
Study the
the idea,
idea, evaluate
evaluate it,
it,
reshape
reshape itit for
for practical
practical usefulness
usefulness
Wallas Creative Process Model
Illumination
Seeing the
Solution
Preparation
Gathering
Information
The
Creative
Process
Verification
Refining
the Idea
Incubation
Setting
Problem
Aside
Test Your Knowledge

A client manufactures maternity clothes for businesswomen, and
it wants a new advertising campaign. Visits to obstetrician's
offices to observe the clothes being worn and to maternity shops
to see how they were selected could be a part of the _____ stage
of the creative process.
A) Preparation
B) Verification
C) Revision
D) Reality check
E) Incubation
Getting Creative Input
Read anything
related to the
product or
market!
Conduct studies
of product,
service,
audience!
Use the product

to become
familiar
with it!
Work in and
learn about the
clients
business!
Listen to what
people are
talking about!
Ask everyone
involved for
information!
Branding Research
Got Milk?
Input Verification and Revision

Evaluate
Evaluate ideas
ideas
Reject
Reject the
the inappropriate
inappropriate
Objective
Objective
Refine
Refine the
the remaining
remaining
Give
Give ideas
ideas final
final expression
expression
Directed
Directed focus
focus groups
groups
Message
Message communication
communication studies
studies
Portfolio
Portfolio tests
tests
Viewer
Viewer reaction
reaction profiles
profiles
Techniques
Techniques
Top 10 Slogans of the Century

Company or Brand
Campaign Theme
1. De Beers
Diamonds are forever
2. Nike
Just do it!
3. Coca Cola
The pause that refreshes
4. Miller Lite
Tastes great, less filling
5. Avis
We try harder
6. Maxwell House
Good to the last drop
7. Wheaties
Breakfast of champions
8. Clairol
Does she . . . or doesnt she?
9. Morton Salt
When it rains it pours
10. Wendys
Wheres the beef?
An Advertising Campaign
Integrated
Integrated
Interrelated
Interrelated
Marketing
Marketing
Communication
Communication
Activities
Activities
Coordinated
Coordinated
In
In Different
Different
Media
Media
Centered
Centered on
on aa
Theme
Theme or
or Idea
Idea
Over
Over aa Time
Time
Period
Period
Test Your Knowledge

Advertising campaign themes:
A) Are always tactical in nature and design
B) Set the tone or direction for all of the
individual ads that make up the
campaign
C) Are typically designed by the client and
implemented by the agency
D) Are usually used for ads that run in only
media vehicle
E) Are described by all of the above
one type of
Advertising Campaign Themes
The
The central
central message
message that
that will
will be
be communicated
communicated in
in
all
all IMC
IMC activities
activities
Miller
Miller
Lite
Lite
Marlboro
Marlboro
country
country
BMW
BMW
The
The ultimate
ultimate
driving
driving
machine
machine
General
General Mills,
Mills,
Wheaties
Wheaties
The
The breakfast
breakfast
of
of champions
champions
Developing a Creative Strategy
Creative
Creative Strategy
Strategy
Target
Target
audience
audience
identity
identity
Basic
Basic
problem,
problem,
issue,
issue,
opportunity
opportunity
Major
Major
selling
selling
idea
idea or
or
key
key
benefit
benefit
Any
Any
supportive
supportive
information
information
Copy Platform Outline
Basic problem or issue the advertising must

address
Advertising and communications objectives
Target audience
Major selling idea or key benefits
to communicate
Creative strategy statement
Supporting information and requirements
Model of Marketing Information Flow

Knowledge
of vital
marketing
information
Client/agency
communication
Client gatekeepers
(Brand manager)
Internal client
decision
to share
information
with agency
Internal agency
communication
Agency gatekeeper
(Account manager)
Agency gatekeeper
decision on sharing
client info with staff
Creative staff
Art is created
Successful, Long-Running Campaigns

Company or Brand
Campaign Theme
Nike
Just do it
Allstate Insurance
Youre in good hands with Allstate
Hallmark cards
When you care enough to send

the very best
Budweiser
This Buds for you
Intel
Intel inside
State Farm Insurance
Like a good neighbor,

State Farm is there
Chevy Trucks
Like a rock
Dial soap
Arent you glad you use Dial?
Search for a Major Selling Idea
Positioning
Positioning the
the Brand
Brand
Use
Use aa Unique
Unique
Selling
Selling Position
Position
Seeking
Seeking the
the Major
Major
Idea
Idea
Positioning
Positioning
Create
Create the
the Brand
Brand
Image
Image
The Unique Selling Proposition (USP)

Unique
Unique Selling
Selling
Proposition
Proposition
Benefit
Benefit
Buy
Buy this
this
product/service
product/service
and
and you
you get
get
this
this benefit
benefit or
or
reward
reward
Unique
Unique
Must
Must be
be unique
unique
to
to this
this brand
brand or
or
claim;
claim;
something
something rivals
rivals
can't
can't or
or don't
don't
offer
offer
Potent
Potent
Promise
Promise must
must
be
be strong
strong
enough
enough or
or
attractive
attractive
enough
enough to
to
move
move people
people
Perspectives of Great Ad Men on the Big Idea
David
David Ogilvy
Ogilvy
Leo
Leo Burnett
Burnett
Brand
Brand image
image or
or personality
personality
is
is particularly
particularly important
important
when
when brands
brands are
are similar
similar
Find
Find the
the inherent
inherent drama
drama or
or
characteristic
characteristic of
of the
the
product
product that
that makes
makes
consumers
consumers buy
buy itit
Every
Every ad
ad must
must contribute
contribute to
tothe
the
complex
complex symbol
symbol that
that isis the
the brand
brand
image.
image.
(Inherent
(Inherent drama)
drama)isisoften
often hard
hard to
to
find
find but
but itit isisalways
alwaysthere,
there, and
and once
once
found
found itit isis the
the most
most interesting
interestingand
and
believable
believable of
of all
all advertising
advertising
appeals.
appeals.
Image Advertising
Test Your Knowledge

Which of the following is most often the basis of a marketer's
creative strategy when the company has multiple brands
competing in the same market?
A) Unique selling propositions
B) Brand image
C) Inherent drama
D) Transformational advertising
E) Positioning
Inherent Drama
Inherent
Inherent
Drama
Drama
Messages
Messages generally
generally presented
presented in
in aa
warm,
warm, emotional
emotional way
way
Focus
Focus on
on consumer
consumer benefits
benefits with
with
an
an emphasis
emphasis on
on the
the dramatic
dramatic
element
element in
in expressing
expressing them
them
Positioning
Positioning
Positioning
Establish
Establish aa particular
particular place
place in
in the
the
customers
customers mind
mind for
for the
the product
product or
or
service
service
Based
Based on
on product
product attributes/
attributes/
benefits,
benefits, price/quality,
price/quality, use
use or
or
application,
application, type
type of
of user,
user, problem
problem
solved
solved
IBM as a Provider of Business Consulting Services
Contemporary Approaches to the Big Idea
Appeals and Execution Style
Advertising
Advertising
Appeals
Appeals
Execution
Execution
Style
Style
The
The approach
approach used
used to
to attract
attract
the
the attention
attention of
of consumers
consumers
To
To influence
influence consumer
consumer feelings
feelings
toward
toward aa product,
product,
service
service or
or cause
cause
The
The way
way an
an appeal
appeal is
is turned
turned
into
into an
an advertising
advertising message
message
The
The way
way the
the message
message is
is
presented
presented to
to the
the consumer
consumer
Types of Informational/Rational Appeals

Feature:
Feature: Focus
Focus on
on dominant
dominant traits
traits of
of the
the product
product
Competitive:
Competitive: Makes
Makes comparisons
comparisons to
to other
other brands
brands
Price:
Price: Makes
Makes price
price offer
offer the
the dominant
dominant point
point
News:
News: News
News announcement
announcement about
about the
the product
product
Popularity:
Popularity: Stresses
Stresses the
the brands
brands popularity
popularity
A Rational Appeal
Appealing to Personal States or Feelings

Safety
Security
Fear
Love, Affection
Happiness, Joy
Nostalgia
Sentiment
Excitement
Arousal
Stimulation
Sorrow, Grief
Pride
Achievement
Accomplishment
Self-esteem
Embarrassment
Actualization
Pleasure
Ambition
Comfort
Appealing to Social-Based Feelings
Approval
Approval
Affiliation
Affiliation
EmbarrassEmbarrassment
ment
Acceptance
Acceptance
Status
Status
Social-Based
Social-Based
Feelings
Feelings
Respect
Respect
Belonging
Belonging
Involvement
Involvement
Rejection
Rejection
Recognition
Recognition
TaylorMade Uses an Emotional Appeal
Transformational Ads
Feelings
Feelings
Meanings
Meanings
Richer
Richer
More
More
Exciting
Exciting
Images
Images
The
The ads
ads
create
create .. .. ..
It
It must
must make
make
the
the product
product use
use
experience
experience .. .. ..
Beliefs
Beliefs
Warmer
Warmer
More
More
Enjoyable
Enjoyable
Transformational Advertising for Skyy Vodka
Combining Rational and Emotional Appeals
Levels of Relationships With Brands
Emotions
Personality
Product Benefits
Test Your Knowledge

According to McCann-Erickson's concept of emotional bonding, the
strongest relationship that develops between a brand and a
consumer is based on:
A) Product benefits
B) Brand personality
C) Feelings or emotional attachment to
the brand
D) Rational motives
E) Competitive advantage over similar
products in the market
MasterCard Creates an Emotional Bond
Reminder Advertising
Teaser Ads Excite Curiosity
Ad Execution Techniques
Straight
Straight sell
sell
Animation
Animation
Scientific/Technical
Scientific/Technical
Personality
Personality Symbol
Symbol
Demonstration
Demonstration
Imagery
Imagery
Comparison
Comparison
Dramatization
Dramatization
Testimonial
Testimonial
Humor
Humor
Slice
Slice of
of life
life
Combinations
Combinations
Straight Sell or Factual Image
Mentadent Uses a Demonstration Ad
Slice-of-Life Execution
Test Your Knowledge

Which of the following is an advertising execution approach
designed to illustrate key advantages or features of a product by
showing it in actual use?
A) Comparison
B) Demonstration
C) Scientific evidence
D) Straight-sell
E) Animation
Animation
Personality Symbol
Jeep Uses Imagery for the Wrangler
Basic Components of Print Advertising

Headline
Headline
Words
Words in
in the
the Leading
Leading Position
Position of
of the
the Ad
Ad
Subheads
Subheads
Smaller
Smaller Than
Than the
the Headline,
Headline, Larger
Larger Than
Than the
the Copy
Copy
Body
Body Copy
Copy
The
The Main
Main Text
Text Portion
Portion of
of aa Print
Print Ad
Ad
Visual
Visual Elements
Elements
Illustrations
Illustrations Such
Such As
As Drawings
Drawings or
or Photos
Photos
Layout
Layout
How
How Elements
Elements Are
Are Blended
Blended Into
Into aa Finished
Finished Ad
Ad
Headlines Help Select Good Prospects
Ad Layout
Visual
element
Indirect
headline
Body copy
Ad Layout
Creative Tactics for Television
Sight
Motion
Sound
Nortel Uses Music Creatively
Jingles
Determinants of Creativity
Determinants of Creativity It is generally agreed upon that there are two central determinants of creativity which are
divergence and relevance. Divergence refers to the extent to which an ad contains elements that are novel different or
unusual. Some of the ways divergence can be achieved in advertising include the following:
Originality: Ads that contain elements that are rare, surprising, or move away from the obvious and commonplace.
Flexibility: Ads that contain different ideas or switch from one perspective to another.
Elaboration: Ads that contain unexpected details or finish and extend basic ideas so they become more intricate,
complicated or sophisticated.
Synthesis: Ads that combine, connect, or blend normally unrelated objects or ideas.
Artistic value: Ads that contain artistic verbal impressions or attractive shapes and colors
Relevance reflects the degree to which the various elements or the ad are meaningful, useful, or valuable to the consumer
and can be achieved in two ways. Ad-to-consumer relevance refers to situations where the ad contains execution
elements that are meaningful to consumers. For example, advertisers may use celebrities which whom consumers identify,
music that they like or visual images and other execution techniques that capture their interest and attention. Brand-toconsumer relevance refers to situations where the advertised brand of a product or service is of personal interest to
consumers. Relevance or appropriateness can also be viewed in terms of the degree to which an advertisement provides
information or an image that is pertinent to the brand.
277
Divergence
Originality: Ads that contain elements that are rare, surprising, or

move away from the obvious and commonplace.
Flexibility: Ads that contain different ideas or switch from one
perspective to another.
Elaboration: Ads that contain unexpected details or finish and
extend basic ideas so they become more intricate, complicated or
sophisticated.
Synthesis: Ads that combine, connect, or blend normally unrelated
objects or ideas.
Artistic value: Ads that contain artistic verbal impressions or
attractive shapes and colors
278
Relevance
Relevance reflects the degree to which the various elements

or the ad are meaningful, useful, or valuable to the consumer
and can be achieved in two ways. Ad-to-consumer relevance
refers to situations where the ad contains execution elements
that are meaningful to consumers. For example, advertisers
may use celebrities which whom consumers identify, music
that they like or visual images and other execution techniques
that capture their interest and attention. Brand-to-consumer
relevance refers to situations where the advertised brand of a
product or service is of personal interest to consumers.
Relevance or appropriateness can also be viewed in terms of
the degree to which an advertisement provides information or
an image that is pertinent to the brand.
279
Production Stages for TV Commercials
Preproduction
Preproduction
All
All work
work before
before actual
actual shooting,
shooting,
recording
recording
Production
Production
Period
Period of
of filming,
filming, taping,
taping, or
or recording
recording
Postproduction
Postproduction
Work
Work after
after spot
spot is
is filmed
filmed or
or recorded
recorded
Preproduction Tasks
Select
Select aa director
director
Choose
Choose
production
production
company
company
Preproduction
Preproduction
meeting
meeting
Preproduction
Preproduction
Production
Production
timetable
timetable
Bidding
Bidding
Cost
Cost estimation
estimation
and
and timing
timing
Production Tasks
Production
Production
Location
Location
Timing
Timing
Talent
Talent
Postproduction Tasks
Editing
Editing
Processing
Processing
Release/
Release/
shipping
shipping
Sound
Sound
effects
effects
Postproduction
Postproduction
Audio/video
Audio/video
mixing
mixing
Duplicating
Duplicating
Approvals
Approvals
Opticals
Opticals
Test Your Knowledge

The creative work of an advertising agency may be reviewed and
evaluated by:
A) Brand managers
B) Advertising managers
C) Legal departments
D) Board of directors
E) All of the above
Evaluation Guidelines for Creative Output

Consistent
Consistent with
with brand
brand marketing
marketing objectives?
objectives?
Consistent
Consistent with
with brand
brand advertising
advertising objectives?
objectives?
Consistent
Consistent with
with creative
creative strategy,
strategy, objectives?
objectives?
Communicates
Communicates what
what its
its supposed
supposed to?
to?
Approach
Approach appropriate
appropriate to
to target
target audience?
audience?
Communicates
Communicates clear,
clear, convincing
convincing message?
message?
Does
Does execution
execution overwhelm
overwhelm the
the message?
message?
Appropriate
Appropriate to
to the
the media
media environment?
environment?
Truthful
Truthful and
and tasteful?
tasteful?
The Hispanic Market
Pennzoil Creates Ads for the Hispanic Market
TUTORIAL
1.
2.
3.
Explain the
difference between
creative technique
and tactics (8m)
List 5 suitable
appeals for A&P in
Malaysia and explain
why (10m)
Explain 3 execution
styles (6m)
4. Explain the structure

of print advertisement
(10m)
5. What is creative
determinants? (4m)
6. Explain creative
determinants ( 20m)
288
Explain creative determinants ( 20m)

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Creative determinants is a standard to measure creativety .

When we want to explain or categorized certain categories , we used creative determinants as a
standard measurement
There are two types of CD which are divergence and relevancy .
Divergence explain novelty in a&p .
Divergence can be subdivided into 5 categories namely originality,flexibility , elaboration, artistic and
synthesis
Originality: Ads that contain elements that are rare, surprising, or move away from the obvious and
commonplace.
Flexibility: Ads that contain different ideas or switch from one perspective to another.
Elaboration: Ads that contain unexpected details or finish and extend basic ideas so they become more
intricate, complicated or sophisticated.
Synthesis: Ads that combine, connect, or blend normally unrelated objects or ideas.
Artistic value: Ads that contain artistic verbal impressions or attractive shapes and colors
Relevance reflects the degree of relatedness
Ad-to-consumer relevance refers to situations where the ad contains execution elements that are
meaningful to consumers.
Brand-to-consumer relevance refers to situations where the advertised brand of a product or service is
of personal interest to consumers.
289
PROMOTIONAL
MANAGEMENT
6 . INTERNATIONAL
ADVERTISEMENT
JUNE-AUG
2015
Top 10 Companies by Ad Spending

Outside the U.S.
Slide 20-1
Figure 20-1
Wednesday, March 23, 2016
LMS
Advantages of Global Marketing

and Advertising
Economies of scale in production and

distribution
Lower marketing and advertising costs
Ability to exploit good ideas on a worldwide
basis
Consistent brand and/or company image in all
markets
Simplification of coordination and control of
marketing and promotional programs
LMS
Problems
Problems with
with Global
Global
Advertising
Advertising
Differences in market and economic development,

consumer needs, media availability and legal
restrictions
Cultural differences make advertising

standardization difficult
Usage patterns and perceptions of a product may

vary from one country to another
LMS
When is Globalization
Appropriate?
Brands that can be adapted for a visual appeal

Brands that are promoted with image campaigns
that play to universal appeals
High-tech products and new products coming to
the world for the first time
Products with nationalistic flavor
Products that appeal to a market segment with
universally similar tastes, interests, needs and
values
LMS
Decision Areas in International

Advertising
Organizational structure
Agency selection
Advertising research
Creative strategy
Media strategy and selection
LMS
Criteria
Criteria for
for Selecting
Selecting an
an Agency
Agency
Ability to cover relevant markets
Quality of work
Market research, public relations, and other

services offered
Relative roles of company and agency
Level of communication and control desired by

company
LMS
Criteria
Criteria for
for Selecting
Selecting an
an Agency
Agency
cont.
cont.
Ability to coordinate international campaign

Size of companys international business
Companys desire for local vs. international image
Company organizational structure
Companys level of involvement with international
operations
LMS
Factors
Factors that
that Affect
Affect International
International
Sales
Sales Promotion
Promotion
Economic development
Market maturity
Consumer perceptions
Trade structure
Regulations
LMS
The Role
Public Relations
Toof
manage
relationship with the public
General
Public
Employees
CLIENT
Suppliers
LMS
Customers
Stockholders
Public Relations Management Process
Determination and evaluation of

public
Identification of policies and

procedures
Development and execution of the

program
LMS
Weak
Strong
MARKETING
Four Classes of Marketing

and Public Relations
Example
:
Small social
service
agencies
Example:
Hospitals,
colleges and
universities
Example:
Example:
Small
manufacturin
g companies
Large,
Fortune fivehundred
companies
Weak
Strong
PUBLIC RELATIONS
LMS
Marketing Public Relations

(MPR) Functions
Building marketplace excitement before media

advertising breaks
Creating advertising news where there is no
product news
Introducing a product with little or no advertising
Providing a value-added customer service
Building brand-to-customer bonds
Influencing the influentials (i.e., providing
information to opinion leaders)
Defending products at risk and giving customers

a reason to buy
LMS
Evaluating Public Relations Plans

1.
Does the plan reflect a thorough understanding of the companys

business situation?
2. Has the PR program made good use of research and background
sources?
3. Does the plan include full analysis of recent editorial coverage?
4. Do the PR people fully understand the products strengths and
weaknesses?
5. Does the PR program describe several cogent, relevant
conclusions from the research?
6. Are the program objectives specific and measurable?
7. Does the program clearly describe what the PR activity will be and
how it will benefit the company?
8. Does the program describe how its results will be measured?
9. Do the research, objectives, activities, and evaluations tie
together?
10. Has the PR department communicated with marketing throughout
the development of the program?
LMS
Research on Public Attitudes
Provides input for the planning process
Serves as an early warning system
Secures internal cooperation, support
Increases communications effectiveness
LMS
Public Relations Audiences
Employees of the firm

Stockholders and investors
Community members
Suppliers and customers
Print and broadcast media
Educators
Civic and business organizations
Governments
Financial groups
LMS
Public Relations Tools
Press releases
Press conferences
Exclusives
Interviews
Community involvement
The internet
LMS
Telling the PR Story
Technical methods make it

easier for the press
They increase the likelihood

media will use the story
Telephone press conferences

In-studio media tours
Multicomponent video news
releases (VNR)
Targeted wire stories
LMS
Promotional Publications
Inserts
Enclosures
Annual reports
Posters
Bulletin boards
Exhibits
Audiovisuals
Position papers
Speeches
LMS
News releases
Media kits
Booklets
Leaflets
Pamphlets
Brochures
Manuals
Books
Letters
Advantages of Public Relations
Credibility
Cost
Avoidance of clutter
Lead generation
Selectivity
Image building
LMS
Criteria for Measuring PR Effectiveness
Total number of impressions . . .
Over time
On the target audience
On specific target audiences
Percentage of . . .
Positive articles over time
Negative articles over time
Ratio of positive to negative articles
Percentage of positive and negative articles by . . .
Subject
Publication
Reporter
Target audience
LMS
Corporate Advertising
Types
Image advertising
Event sponsorship
Advocacy advertising
Cause-related advertising
Objectives
Boost employee morale
Smooth labor relations
Help newly deregulated industries
Ease consumer uncertainty
Answer investor questions
Help diversified companies
Establish identity for parent
Decrease reliance solely on brand
LMS
To 30 Companies Based on RQ
(Reputation Quotient)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Johnson & Johnson

Coca-Cola
Hewlett-Packard
Intel
Ben &Jerrys
Wal-Mart
Xerox
Home Depot
Gateway
Disney
Dell
General Electric
Lucent
Anheuser-Busch
Microsoft
83.4
81.6
81.2
81.0
81.0
80.5
79.9
79.7
78.8
78.7
78.4
78.1
78.0
78.0
77.9
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
LMS
Amazon.com
IBM
Sony
Yahoo!
AT&T
FedEx
Procter & Gamble
Nike
McDonalds
Southwest Airlines
America Online
Daimler Chrysler
Toyota
Sears
Boeing
77.8
77.6
77.4
76.9
75.7
75.7
71.9
71.3
71.2
70.6
69.2
69.1
68.6
67.6
67.3
Top 5 Companies for Each of 6 Elements

of Reputation
Social Responsibility
Emotional Appeal
How much the company is
liked, admired, and
respected
1
2
3
4
5
Johnson & Johnson

Coca-Cola
Hewlett-Packard
Ben & Jerrys
Xerox
LMS
Perceptions of the
company as a good
citizen in its dealings
with communities,
employees,
and the
1 Ben & Jerrys
environment
2
3
4
5
Amazon.com
Johnson & Johnson
Wal-Mart
Xerox
Top 5 Companies for Each of 6 Elements of

Reputation
Workplace Environ.
Products & Services

Perceptions of the quality,
innovation, value, and
reliability of its products and
services
1 Johnson & Johnson
2
3
4
5
Intel
Hewlett-Packard
Xerox
Ben & Jerrys
Perception of how well

the company is
managed, how it is to
work for, and the quality
1
Johnson
& Johnson
of its
employees
2
3
4
5
LMS
Lucent
Ben & Jerrys
Hewlett-Packard
Intel
Top 5 Companies for Each of 6 Elements of

Reputation
Vision & Leadership
How much the company
demonstrates a clear vision
and strong leadership
1
2
3
4
5
Microsoft
Intel
Anheuser-Busch
Coca-Cola
Dell
Financial
Performance
Perceptions of its
1 Microsoft
profitability, prospects,
2 Wal-Mart
and risk
3 Coca-Cola
4 Johnson & Johnson
5 Intel
LMS
ADVERTISING
MANAGEMENT
7 . MEDIA
JUNE-AUG
2015
Media Expenditures to Reach $1 Trillion
Traditional Media
Satellite radio
stations
2
Consumer
magazines
5,340
Broadcast
networks (TV and
cable)
100
Newspapers
(daily and
weekly)
8,100
TV stations
3,510
Radio stations
13,898
Media Terminology
Media
Media
Planning
Planning
AA series
series of
of decisions
decisions involving
involving the
the delivery
delivery
of
of messages
messages to
to audiences
audiences
Media
Media
Objectives
Objectives
Goals
Goals to
to be
be attained
attained by
by the
the media
media strategy
strategy
and
and program
program
Media
Media
Strategy
Strategy
Decisions
Decisions on
on how
how the
the media
media objectives
objectives can
can
be
be attained
attained
Media
Media
Various
Various categories
categories of
of delivery
delivery systems,
systems,
including
including broadcast
broadcast and
and print
print media
media
Broadcast
Broadcast
Media
Media
Either
Either radio
radio or
or television
television network
network or
or local
local
station
station broadcasts
broadcasts
Media Terminology
Print
Print
Media
Media
Publications,
Publications, such
such as
as newspapers,
newspapers,
magazines,
magazines, direct
direct mail,
mail, outdoor,
outdoor, etc.
etc.
Media
Media
Vehicle
Vehicle
The
The specific
specific carrier
carrier within
within aa medium
medium
category
category
Reach
Reach
Number
Number of
of different
different audience
audience members
members
exposed
exposed at
at least
least once
once in
in aa time
time period
period
Coverage
Coverage
The
The potential
potential of
of audience
audience that
that might
might
receive
receive the
the message
message through
through the
the vehicle
vehicle
Frequency
Frequency
Number
Number of
of times
times the
the receiver
receiver is
is exposed
exposed to
to
the
the media
media vehicle
vehicle in
in aa time
time period
period
Developing the Media Plan

Situation
Situation
analysis
analysis
Marketing
Marketing
strategy
strategy plan
plan
Creative
Creative
strategy
strategy plan
plan
Setting
Setting media
media objectives
objectives
Determining
Determining media
media strategy
strategy
Selecting
Selecting broad
broad media
media classes
classes
Selecting
Selecting media
media within
within class
class
Media
Media use
use decision
decision
broadcast
broadcast
Media
Media use
use
decision
decision
print
print
Media
Media use
use decision
decision
other
other media
media
Media Planning Difficulties

Measurement
Measurement
Problems
Problems
Lack
Lack of
of
Information
Information
Problems
Problems
in
in Media
Media
Planning
Planning
Time
Time
Pressure
Pressure
Inconsistent
Inconsistent
Terms
Terms
Developing a Media Plan

Analyze
Analyze the
the market
market
Establish
Establish media
media objectives
objectives
Develop
Develop media
media strategy
strategy
Implement
Implement media
media strategy
strategy
Evaluate
Evaluate performance
performance
Analyzing Market Potential
Index Number
Percentage of users
in a demographic segment
Index =
Percentage of population
in the same segment
X 100
Brand and Category Analysis
Brand Development Index
BDI =
Percentage of brand to total

U.S. sales in market
Percentage of total U.S.
population in market
X 100
Category Development Index

Percentage of total product
category sales in market
CDI =
Percentage of total U.S.

population in market
X 100
Test Your Knowledge

In calculating both the brand development index (BDI) and the
category development index (CDI), a media planner obtains the
following results: Low BDI and High CDI. What do these results
imply?
A) High market share; good market
potential
B) Low market share; good market potential

C) High market share; monitor for sales decline
D) Low market share; poor market potential
High CDI
Low BDI
High
High market
market share
share
Good
Good market
market
potential
potential
Low
Low market
market share
share
Good
Good market
market
potential
potential
Low CDI
High BDI
High
High market
market share
share
Monitor
Monitor for
for sales
sales
decline
decline
Low
Low market
market share
share
Poor
Poor market
market
potential
potential
High CDI
Low BDI
The
The market
market usually
usually
represents
represents good
good sales
sales
potential
potential for
for both
both the
the
product
product and
and the
the brand.
brand.
The
The product
product category
category
shows
shows high
high potential
potential but
but
the
the brand
brand isnt
isnt doing
doing well;
well;
the
the reason
reason should
should be
be
determined.
determined.
Low CDI
High BDI
The
The category
category isnt
isnt selling
selling
well
well but
but the
the brand
brand is;
is;
may
may be
be aa good
good market
market in
in
which
which to
to advertise
advertise but
but
should
should be
be monitored
monitored for
for
sales
sales decline.
decline.
Both
Both the
the product
product category
category
and
and the
the brand
brand are
are doing
doing
poorly;
poorly; not
not likely
likely to
to be
be aa
good
good place
place to
to advertise.
advertise.
Target Audience Coverage

Population excluding target market
Target market
Media coverage
Media overexposure
Target
Market
Proportion
Full
Market
Coverage
Partial
Market
Coverage
Coverage
Exceeding
Market
Geographic Coverage
Three Scheduling Methods
Continuity
Flighting
Pulsing
Jan
Feb Mar Apr May Jun
Jul
Aug Sep Oct Nov Dec
Reach and Frequency

A. Reach
of One
OneProgram
Program
A.
Reach of
total
audience
reached
by
B. Reach
of Two
Programs
one program
B. Reach of Two Programs total audience reached by
two programs (including duplicated reach)
C. Duplicated Reach of Both duplicated reach only
(those that were exposed more than once)
D. Unduplicated Reach of Both total reach less
duplication (exposed only once)
C. Duplicated Reach of Both
D. Unduplicated Reach of Both
A. Reach
of One Program total audience

reached by one program
B. Reach of Two Programs total audience
reached by two programs (including duplicated
reach)
C. Duplicated Reach of Both duplicated reach
only (those that were exposed more than once)
D. Unduplicated Reach of Both total reach less
duplication (exposed only once)
334
Graph of Effective Reach
Marketing Factors Determining Frequency
Marketing
Marketing
Factors
Factors
Brand
Brand
Loyalty
Loyalty
Brand
Brand
History
History
Share
Share of
of
Voice
Voice
Brand
Brand
Share
Share
Usage
Usage
Cycle
Cycle
Purchase
Purchase
Cycles
Cycles
Target
Target
Group
Group
Message Factors Determining Frequency
Message
Message
or
or Creative
Creative
Factors
Factors
Message
Message Complexity
Complexity
Message
Message Uniqueness
Uniqueness
New
New Vs.
Vs. Continuing
Continuing Campaigns
Campaigns
Image
Image Versus
Versus Product
Product Sell
Sell
Message
Message Variation
Variation
Wearout
Wearout
Advertising
Advertising Units
Units
Media Factors Determining Frequency
Clutter
Clutter
Repeat
Repeat
Exposure
Exposure
Scheduling
Scheduling
Media
Media
Factors
Factors
Editorial
Editorial
Environment
Environment
Attentiveness
Attentiveness
Number
Number of
of
Media
Media Used
Used
Flexibility in Media Planning Strategies
Market
Market
opportunities
opportunities
Market
Market threats
threats
Flexibility
Flexibility
Changes
Changes in
in media
media
or
or media
media vehicle
vehicle
Availability
Availability of
of
media
media
Test Your Knowledge

Why should an effective media strategy be flexible?
A) Due to the potential development of new
media
B) Due to an alteration of a competitor's
media schedule
C) Due to the unavailability of the desired
medium
D) Due to a drop in the ratings of a show
previously on the media schedule
E) Due to all of the above
advertising
Determining Relative Cost of Print Media
Cost per thousand (CPM)

CPM =
Cost of ad space
(absolute cost)
Circulation
X 1,000
Calculating CPM Based on Target Audience
Determining Relative Cost of Broadcast Media
Cost per rating point (CPRP)

CPRP =
Cost of commercial time

Program rating
Evaluation and Follow-Up
How well did these strategies achieve

the media objectives?
How well did the media plan contribute

to attaining the overall marketing and
communications objectives?
Use again, or analyze flaws
Television Pros and Cons

Advantages
Mass
Mass coverage
coverage
High
High reach
reach
Sight,
Sight, sound,
sound, motion
motion
High
High prestige
prestige
Disadvantages
Low
Low selectivity
selectivity
Short
Short message
message life
life
Low
Low cost
cost per
per exposure
exposure
High
High absolute
absolute cost
cost
Attention
Attention getting
getting
High
High production
production cost
cost
Favorable
Favorable image
image
Clutter
Clutter
Radio Pros and Cons

Advantages
Local
Local coverage
coverage
Low
Low cost
cost
High
High frequency
frequency
Flexible
Flexible
Disadvantages
Audio
Audio only
only
Clutter
Clutter
Low
Low production
production cost
cost
Low
Low attention
attention getting
getting
Well-segmented
Well-segmented audience
audience
Fleeting
Fleeting message
message
Magazine Pros and Cons
Advantages
Segmentation
Segmentation potential
potential
Quality
Quality reproduction
reproduction
Disadvantages
High
High information
information content
content
Long
Long lead
lead time
time for
for
ad
ad placement
placement
Longevity
Longevity
Visual
Visual only
only
Multiple
Multiple readers
readers
Lack
Lack of
of flexibility
flexibility
Newspaper Pros and Cons

Advantages
High
High coverage
coverage
Low
Low cost
cost
Short
Short lead
lead time
time for
for
placing
ads
placing ads
Ads
Ads can
can be
be placed
placed in
in interest
interest
sections
sections
Timely
Timely (current
(current ads)
ads)
Disadvantages
Short
Short life
life
Clutter
Clutter
Low
Low attention
attention getting
getting
Reader
Reader controls
controls exposure
exposure
Poor
Poor reproduction
reproduction quality
quality
Can
Can be
be used
used for
for coupons
coupons
Selective
Selective reader
reader exposure
exposure
Outdoor Pros and Cons
Disadvantages
Short
Short exposure
exposure time
time
Short
Short ads
ads
Advantages
Location
Location specific
specific
High
High repetition
repetition
Easily
Easily noticed
noticed
Poor
Poor image
image
Local
Local restrictions
restrictions
Direct Mail Pros and Cons
Advantages
High
High selectivity
selectivity
Reader
Reader controls
controls exposure
exposure
High
High information
information content
content
Repeat
Repeat exposure
exposure
opportunities
opportunities
Disadvantages
High
High cost
cost per
per contact
contact
Poor
Poor image
image (junk
(junk mail)
mail)
Clutter
Clutter
Internet Pros and Cons
Advantages
Disadvantages
User
User selects
selects product
product
information
information
Limited
Limited creative
creative capability
capability
User
User attention
attention and
and
involvement
involvement
Websnarl
Websnarl
Interactive
Interactive relationship
relationship
Technology
Technology limitations
limitations
Direct
Direct selling
selling potential
potential
Few
Few measurement
measurement
techniques
techniques
Flexible
Flexible message
message platform
platform
Limited
Limited reach
reach
Test Your Knowledge

In terms of media vehicles, ______ would be most efficient medium
for the Got Milk slogan.
A) television
B) interactive media
C) radio
D) outdoor
E) newspapers
TUTORIAL
Explain the following

terms :
Vehicle
Reach
Frequency
When is the best time

to use/ choose the 3
types of scheduling.
The dilemma between

frequency and reach
is well-known.
Discuss.
Explain 2 adv or
disadv of all
traditional medias.
353
PROMOTIONAL
MANAGEMENT
8 . PRINT
JUNE-AUG
2015
The Role of Magazines and Newspapers

Reader sets the
pace
Not
intrusive
Selective
audience
Highinvolvement
High readership
12-355
Magazines Target Specific Markets
12-356
Classifications of Magazines
Consumer
Consumer
Farm
Farm
Business
Business
12-357
Consumer Magazines Target Interests
12-358
Example of a Farm Publication
12-359
Business Publications Target

Professions or Industries
12-360
Advantages of Magazines
Selectivity
Reproduction Quality
Creative Flexibility
Permanence
Prestige
Receptivity, Engagement
Services
12-361
City Magazines Offer Geographic

Targeting
12-362
Readers Digest Promotes Its Regional Editions
12-363
Creative Flexibility
Bleed Pages
Creative
Space
Inserts
Gatefolds
Pop-Ups
Cover
Positions
12-364
Test Your Knowledge

An ad for California Almonds is a close-up view of
a swirl of white and milk chocolate topped with
sliced almonds. The chocolate swirls extend to the
very edge of the page. This ad is an example of
a(n):
A) Gatefold
B) Bleed page
C) Maximum coverage ad
D) Overrun
E) Total page ad
12-365
Smaller Ads Can Extend a Media Budget
12-366
Magazines Can Lend Prestige to a Brand
12-367
Comparing Media on Various Factors
12-368
Special Services Offered by Magazines
Retailer
alerts
Consumer
Split
research studies
runs
Personalized
messages to
tightly targeted audiences
12-369
Disadvantages of Magazines
Costs
Limited Reach
Limited Frequency
Long Lead Time
Clutter
Competition
12-370
Magazine Circulation
Primary
Circulation
Total
Audience
Guaranteed
Circulation
Controlled
Circulation
Circulation
Verification
Pass-Along
Readership
12-371
Readership and Total Audience
Readers per copy X circulation = Total Audience
12-372
Media Research Guides Advertisers
SRDS Data
Reader Data
from Magazines
Syndicated
Research Studies
12-373
Cost Elements of Advertising Space

Circulation
Size of the ad
Position in the publication
Editions chosen
Production requirements
Insertion number/frequency
Use of color
12-374
Magazine Costs and Networks

Advertising
$$$
Time
News
Network
Newsweek
U.S. News & World Report
12-375
The Future for Magazines

Current Problems
Potential Solutions
Declining revenues
Stronger editorial platforms
Decreasing circulations
Better circulation mgmt
Failing publications
Cross-magazine & media deals
Increasing costs
Database marketing
Strong media
competition
Technology advances
Electronic delivery methods
12-376
Characteristics of Newspapers
Still a major
advertising medium
Account for nearly 18%

of ad spending
Especially important to
local retailers
Also used by national

advertisers
12-377
Types of Newspapers
Daily
National
Special-audience
Weekly
Supplements
12-378
College Newspapers Effectively Reach

Students
12-379
Test Your Knowledge

National advertisers tend to avoid weekly
newspapers because of:
A) Their poor image
B) Their high absolute cost
C) Difficulties associated with purchasing
and placing ads in them
D) An overly broad geographic focus
E) The large number of local ads they
typically contain
12-380
Types of Newspaper Advertising

Display Ads
Classified
Ads
Special Ads
and Inserts
Local (mostly retail)

National or general
Small items arranged by topic
Rates based on size, duration
Legal notices - public reports
Notices by people and/or
organizations
Political ads
Circulars, catalogs, brochures
12-381
Newspaper Advantages and Limitations

Advantages
Disadvantages
Extensive penetration
Low production quality
Flexibility
Short life span
Geographic selectivity
Lack of selectivity
Involvement, acceptance
Clutter
Services offered
Limited use of color
12-382
Ways To Break Through the Clutter
12-383
Newspaper Circulation Figures
Other
Zone
Other
Zone
City Zone
Other
Zone
Retail
Trading
Zone
12-384
Purchasing Newspaper Space
General rates
Advertisers are outside

the newspapers designated
market area
Includes national advertisers
Are up to 75% higher than local rates
Retail or local rates
Advertisers conduct business within the

designated market
12-385
The Newspaper National Network
12-386
Newspaper Advertising Rates

Standard
Advertising Units
Sales by
Column Inch
One inch by
2 1/16 inches wide
1 inch deep by
1 column width
Fits in all newspapers that use

this format size
Column widths vary
Simplifies rate quotes
Column width affects ad size,

shape, cost
Simplifies production process
Complicated purchasing and

placement process
12-387
Rate Structures and Terminology
Combination Rates
Open Rates
Run-of-Paper [ROP]
Flat Rates
Preferred Position
12-388
Test Your Knowledge

The Washington Post newspaper has been
involved in a deal with Newsweek magazine,
whereby advertisers can purchase a package that
includes ads in both media. This is an example of:
A) A cross-magazine deal
B) A cross-newspaper deal
C) A cross-media buy
D) Cooperative advertising
E) A standard advertising unit buy
12-389
The Future of Newspapers

Competition
from other
media
Declining
circulation
Problems and
issues
Attracting and
retaining readers
Online delivery
Cross-media
opportunities
12-390
Attracting and Retaining Readers
12-391
PROMOTIONAL
MANAGEMENT
9 . TV AND RADIO
JUNE-AUG
2015
The Impact of DVRs on Television
11-393
Television Advantages
Creativity and Impact

Coverage and Cost Effectiveness
Captivity and Attention
Selectivity and Flexibility
11-394
Top 10 Network TV Advertisers
11-395
Selectivity and Flexibility
11-396
Television Limitations
Fleeting
Fleeting
Message
Message
Limited
Limited
Attention
Attention
Zipping
Zipping
Cost
Cost
Negative
Negative
Factors
Factors
Zapping
Zapping
Negative
Negative
Evaluation
Evaluation
Low
Low
Selectivity
Selectivity
Clutter
Clutter
Distrust
Distrust
11-397
Network versus Spot

Network
Affiliated stations
that are linked
Purchase transactions
are simplified
Spot &
Local
Commercials shown
on local stations
May be local or national
spot commercials
11-398
The CW Network
11-399
Test Your Knowledge

_____ are shows that are sold or distributed on a
station-by-station, market-by-market basis.
A) Spot broadcasts
B) Televised advertorials
C) Affiliate programs
D) Participation programs
E) Syndicated programs
11-400
Syndicated Programs
Sold and
distributed
station by
station
Advertisersupported or
bartered
Off-network syndication
are reruns
First-run syndications
are also featured
Programs sold to stations in

return for air time
11-401
Top 10 Syndicated Programs
11-402
Methods of Buying Time

Sponsorship
1. Advertiser
assumes
responsibility
for the
production
and perhaps
content
2. Sponsor has
control and
can capitalize
on a shows
prestige
Participations
1. Participating
sponsors share
the cost
2. May occur
regularly or
sporadically
Spot
Announcements
1. May be
purchased
by daypart
or adjacency
3. Advertiser
doesnt do
production
4. Participants
lack control
over content
11-403
TV Advertising Buying Decisions

Network Versus
Spot
Reach is the primary consideration

but ease of purchase is important.
National Versus
Local Spot
Considerations are the geographic

markets and ability to acquire airtime.
Sponsor,
Participate,
or Spot
Method of buying affects cost,

commitment, and identification.
Specific Daypart
and Weeks
Scheduling depends on reach and

frequency requirements.
11-404
Common Television Dayparts
11-405
Cable Television
Rapid growth during last 20 years
91% of households have cable TV via wired

cable or satellite
Development of superstations
Independent local stations that send their

signals nationally via satellite
Sports, movies, and reruns of network shows
Carries national advertising
11-406
Advertising on Cable Television

Advantages
1.
2.
National, regional,
and local available
Highly selective
narrowcasting
3.
Low cost
4.
Flexibility
Limitations
1.
Overshadowed by
major networks
2.
Audience
fragmentation
3.
Lacks penetration
in major markets
11-407
The Future of Cable

More
channels
Govt.
regulations
Future
Challenges
DBS services
Competition
New
technology
11-408
Test Your Knowledge

The sole source of network television and
local audience information is:
A) Arbitron Co.
B) Nielsen Media Research
C) RADAR
D) Smart-TV
E) Burke Research
11-409
Measuring the TV Audience

Total Audience
Program
Rating
Share of
Audience
Households
Using TV
11-410
TV Audience Measures
Share of Audience
Program Rating
11-411
National Audience Information
11-412
Local Audience Information
NSI reports
Viewing times
Programs
watched
Audience size
estimates
Demographics
11-413
Sweeps Periods
11-414
Developments in Audience Measurement

Commercial Ratings
Data (C3)
Anywhere Media
Measurement (A2/M2)
Engagement
Metrics
11-415
Radio and TV Similarities

Are time oriented media
Are sold in time segments
Both
Both
Media
Media
Have some network affiliates

Have some independents
Use the public airway
Are regulated by the F.C.C.
Are externally paced media
Are passive, low-involvement
11-416
Advantages of Radio
Cost and Efficiency
Receptivity
Selectivity
Flexibility
Mental Imagery
Integrated Marketing
11-417
Radio Gives Customers a Clearer Picture
11-418
Limitations of Radio
Creative Limitations
Audience Fragmentation
Chaotic Buying
Limited Research Data
Limited Listener Attention
Digital Media Competition
Clutter
11-419
Buying Radio Time

Network
Radio
Three national networks

Over 100 regional/area networks
A multitude of syndicated programs
Spot
Radio
About 20% of all spots

Allows great flexibility, targeting
Purchase transaction can be difficult
Local
Radio
Nearly 80% of advertisers are local

Local CATV is becoming competitive
11-420
Radio Time Classifications
11-421
Test Your Knowledge

Arbitron:
A) Measures local radio audiences

B) Measures listenership to webcasts
C) Provides radio stations with monthly
cume ratings
D) Now owns RADAR, which is a source
of national network rating numbers
E) All of the above
11-422
Audience Information
Person
Person
estimates
estimates
Share
Share
RADAR
RADAR
Arbitron
Rating
Rating
Network
Network audience
audience
measures
measures
11-423
PROMOTIONAL
MANAGEMENT
10 . SUPPORT MEDIA
JUNE-AUG
2015
The Role of Support Media
To
Toreach
reach those
those people
people in
in the
the target
target
audience
audience that
that primary
primary media
media (TV,
(TV,
print,
print, etc.)
etc.) may
may not
not have
have effectively
effectively
reached
reached and
and to
to reinforce,
reinforce, or
or support,
support,
their
their messages.
messages.
13-425
Support Media
Support
Support media
media are
are
also
also referred
referred to
to as
as
Alternative
Alternative
Media
Media
Nonmeasured
Nonmeasured
Media
Media
Nontraditional
Nontraditional
Media
Media
13-426
Out-of-Home Advertising Media
13-427
Top 10 Outdoor Advertising Categories

1.
Miscellaneous services and amusements
2.
Insurance and real estate
3.
Communications
4.
Public transportation, hotels, resorts
5.
Media and advertising
6.
Retail
7.
Restaurants
8.
Financial
9.
Automotive dealers and services
10.
Automotive, auto accessories/equipment

13-428
Attention-Getting Billboards
13-429
Alternative Out-of-Home Media

Aerial
Aerial Advertising
Advertising
Sky
Sky Banner
Banner
Blimp
Blimp
Sky
Sky Writing
Writing
Mobile
Mobile Billboards
Billboards
Trucks
Trucks
Vans
Vans
Trailers
Trailers
13-430
Blimps Carry Messages High and Wide
13-431
In-Store Media
Typical in-store media
In-store ads
Aisle displays
Store leaflets
Shopping cart
signage
In-store TV
13-432
Trucks Become Billboards on Wheels
13-433
Transit Advertising
Inside Cards
Outside Posters
Station, Platform, Terminal Posters

13-434
Posters Gain Attention in Terminals
13-435
Pros of Outdoor Advertising

Wide
Wide local
local coverage
coverage
Creation
Creation of
of awareness
awareness
High
High frequency
frequency
Efficiency
Efficiency
Geographic
Geographic flexibility
flexibility
Sales
Sales effectiveness
effectiveness
Creativity
Creativity
Production
Production capability
capability
Timeliness
Timeliness
13-436
Cons of Outdoor Advertising
Waste
Waste coverage
coverage
High
High cost
cost
Limited
Limited message
message ability
ability
Measurement
Measurement problems
problems
Wearout
Wearout
Image
Image problems
problems
13-437
Transit Advertising
Advantages
Exposure
Frequency
Disadvantages
Reach
Mood of the Audience
13-438
Measurement in Out-of-Home Media

Competitive Media Reports
Simmons Market Research Bureau
Point of Purchase Advertising Institute
Outdoor Advertising Association of America
Traffic Audit Bureau
Scarborough
American Public Transportation Association
13-439
Test Your Knowledge
Which of the following is an example of an out-of-home advertising

medium?
A) A billboard on the top of a taxi
B) An ad placed inside a bus shelter
C) Banners pulled by airplanes
D) An ad on a park bench
E) All of the above
13-440
Promotional Products Marketing
The
The advertising
advertising or
or promotional
promotional medium
medium
or
or method
method that
that uses
uses promotional
promotional
products,
products, such
such as
as ad
ad specialties,
specialties,
premiums,
premiums, business
business gifts,
gifts, awards,
awards, prizes,
prizes,
or
or commemoratives.
commemoratives.
13-441
Pros and Cons of Promotional Products

Advantages
Disadvantages
Selectivity
Poor image
Flexibility
Saturation
Frequency
Lead Time
Cost
Goodwill
High recall
Augmentation
13-442
Measurement of Promotional Products
71% of people surveyed had received

a promo product within the last year
33.7%... still had the item

76%... recalled advertisers name
52%... improved impression of company
73%... used item at least once a week
55%... kept it more than a year
13-443
Forms of Yellow Pages
13-444
Pros and Cons of Yellow Pages

Advantages
Disadvantages
Wide Availability
Market Fragmentation
Action Oriented
Timeliness
Low Cost
Lack of Creativity
Frequency
Lead Times
Non-Intrusiveness
Clutter
Trust
Size Requirements
13-445
Advertising in Movie Theaters

Advantages
Disadvantages
High Exposure
Irritation
Emotional attachment
Cost
Cost
Attention
Lack of Clutter
Proximity
Segmentation
13-446
Nontraditional Support Media

Product
Product
Placements
Placements
Others
Others
Product
Product Integration
Integration
Branded
Branded
Entertainment
Entertainment
Ad-Supported
Ad-Supported
VOD
VOD
Advertainment
Advertainment
Content
Content
Sponsorship
Sponsorship
13-447
Branded Entertainment
Advantages
Disadvantages
High Exposure
High Absolute Cost
High Frequency
Time of Exposure
Media Support
Limited Appeal
Source Association
Lack of Control
Low Cost/High Recall
Public Reactions
Bypass Regulations
Competition
Viewer Acceptance
Negative Placements
Targeting
Clutter
13-448
Measurement in Branded Entertainment
Nielson Media Research
Services
Nielson-IAG Research
Deutsch/iTVX
Brand Advisers
13-449
Test Your Knowledge
Which of the following is the best example of place-based media?

A) Movie ads on popcorn bags
B) Televisions in classrooms
C) Interactive kiosks
D) Internet banners
E) Mobile billboards
13-450
Guerrilla Marketing
a.k.a.
Stealth
Street
Buzz
Ambush
Viral
13-451
Other Media
Parking
Parking lot
lot
ads
ads
Videogame
Videogame
ads
ads
Others
Others
Gas
Gas station
station
pump
pump ads
ads
Place-based
Place-based
media
media
13-452
Alternative Media
Advantages
Disadvantages
Awareness and
Attention
Irritation
Cost Efficiencies
Wearout
Targeting
13-453
1. Support media cannot be used as a sole medium for advertising.

True
/ False Questions
True False
2. Support media is also known as measured media because it is
easy to measure. True False
3. Outdoor advertising is one of the newest methods of advertising
that has developed with the development of new technology.
True False
4. One of the major disadvantages of outdoor advertising is its lack of
persuasiveness. True False
6. Aerial advertising is very expensive in terms of absolute costs
especially when employed to reach specific target markets.
True False
454
PROMOTIONAL
MANAGEMENT
11 . MESUREMENT AND
EVALUATION
JUNE-AUG
2015
Reasons for and Against

Measuring Effectiveness
Reasons to Measure
Reasons Not to Measure
Avoid
Avoid Costly
Costly Mistakes
Mistakes
Cost
Cost of
of Measurement
Measurement
Evaluate
Evaluate Strategies
Strategies
Problems
Problems With
With Research
Research
Increase
Increase Efficiency
Efficiency of
of
Advertising
Advertising in
in General
General
Disagreement
Disagreement About
About What
What
to
to Test
Test
Determine
Determine If
If Objectives
Objectives
Are
Are Achieved
Achieved
Creative
Creative Objections
Objections
Last Update:March 23, 2016
LMS
456
Measuring Advertising Effectiveness

What
to
test
What
to
test
What
to
What to test
test
Where
to
test
Where
to
test
Where
to
Where to test
test
How
How to
to test
test
When
When to
to test
test
Source factors
Source factors
factors
Source
Source factors
Message variables
Message variables
variables
Message
Message variables
Media strategies
Media strategies
strategies
Media
Media strategies
Budget decisions
Budget decisions
decisions
Budget
Budget decisions
Laboratory tests
Laboratory tests
tests
Laboratory
Laboratory tests
Field tests
Field tests
tests
Field
Field tests
Testing guidelines
Testing guidelines
Pretesting
Pretesting
Appropriate tests
Appropriate tests
Posttesting
Posttesting
LMS
457
PRE TEST MEASUREMENT
Pretesting Methods
Laboratory
Field
Consumer
Consumer Juries
Juries
Dummy
Dummy Ad
Ad Vehicles
Vehicles
Portfolio
Portfolio Tests
Tests
On-air
On-air Tests
Tests
Physiological
Physiological Measures
Measures
Theater
Theater Tests
Tests
Rough
Rough Tests
Tests
Concept
Concept Tests
Tests
Reliability
Reliability Tests
Tests
Comprehension
Comprehension and
and
Reaction
Reaction Tests
Tests
LMS
458
Field Posttesting Methods

Recall
Recall Tests
Tests
Tracking
Tracking
Studies
Studies
Association
Association
Measures
Measures
Methods
Methods
Recognition
Recognition
Tests
Tests
Single-Source
Single-Source
Systems
Systems
Inquiry
Inquiry Tests
Tests
LMS
459
Posttesting the Value of a Sponsorship
LMS
460
Positioning Advertising Copy Testing (PACT)

1. Provide measurements relevant to objectives of advertising
2. Require agreement on how results will be used before each test
3. Provide multiple measures (Single measures aren't adequate)
4. Be based on a model of human response to communications
5. Consider multiple versus single exposure to the stimulus
6. Require alternative executions to have the same degree of finish
7. Provide controls to avoid the biasing effects of exposure context
8. Take into account basic considerations of sample definition
9. Demonstrate reliability and validity
LMS
461
The Testing Process

1.Concept
1.Concept Testing
Testing
1.Concept
1.Concept Testing
Testing
2.Rough
2.Rough Testing
Testing
Occurs
Occurs at
at
Various
Various Stages
Stages
3.Finished
3.Finished Art
Art or
or
Commercial
Commercial Testing
Testing
4.Market
4.Market Testing
Testing (Post(Posttesting)
testing)
LMS
462
Concept Testing
Objective
Objective
Explores
Explores Consumers
Consumers Responses
Responses to
to Ad
Ad Concepts
Concepts
Expressed
Expressed in
in Words,
Words, Pictures,
Pictures, or
or Symbols
Symbols
Alternatives
Alternatives Are
Are Exposed
Exposed to
to Consumers
Consumers Who
Who
Match
Match the
the the
the Target
Target Audience
Audience
Method
Method
Reactions
Reactions and
and Evaluations
Evaluations Are
Are Sought
Sought Through
Through
Focus
Focus Groups,
Groups, Direct
Direct Questioning,
Questioning, Surveys,
Surveys, Etc.
Etc.
Sample
Sample Sizes
Sizes Depend
Depend on
on the
the Number
Number of
of Concepts
Concepts
and
and the
the Consensus
Consensus of
of Responses
Responses
Output
Output
Qualitative
Qualitative And/or
And/or Quantitative
Quantitative Data
Data Evaluating
Evaluating
and
and Comparing
Comparing Alternative
Alternative Concepts
Concepts
LMS
463
Rough Art, Copy, and Commercial

Testing
Comprehension
Comprehension and
and Reaction
Reaction Tests
Tests
Consumer
Consumer Juries
Juries
Advantages
Disadvantages
Control
Control
Consumer
Consumer May
May Become
Become aa SelfSelfappointed
appointed Expert
Expert
Cost
Cost Effectiveness
Effectiveness
Number
Number of
of Ads
Ads That
That Can
Can Be
Be
Evaluated
Evaluated Is
Is Limited
Limited
Endorsements
Independent
Endorsements
Endorsements
by Independent
Independent
Endorsements by
Independent
Third
Third Parties
Parties
AA Halo
Halo Effect
Effect Is
Is Possible
Possible
Achievement
Achievement of
of Credibility
Credibility
Preference
Preference for
for Ads
Ads Types
Types
May
May Overshadow
Overshadow Objectivity
Objectivity
LMS
464
Rough Testing Terms

Animatic
Animatic Rough
Rough
Photomatic
Photomatic Rough
Rough
Terms
Terms
Live-action
Live-action Rough
Rough
LMS
465
Animatic rough - includes a succession of

drawings/cartoons, rendered artwork, still
frames and simulated movement
Photomatic rough -successions of
photographs often showing real
people/scenery, etc. with still frames and
simulated movement
Live-action rough - employs live motion,
stand-in involvement often with nonunion
crews, limited props and opticals, and location
settings.
466
Pretesting Finished Print Ads
Portfolio
Portfolio
Tests
Tests
Readability
Readability
Tests
Tests
A
A Laboratory
Laboratory Method
Method
A
Laboratory
A Laboratory Method
Method
Includes
Test
and
Control
Ads
IncludesTest
Testand
andControl
ControlAds
Ads
Includes
Includes
Test
and
Control
Ads
Portfolio
Test
Have
Problems
Portfolio
Test
Have
Problems
Portfolio
Test
Have
Portfolio Test Have Problems
Problems
Based
Based on
on Syllables
Syllables Per
Per 100
100 Words
Words
Other
Other Factors
Factors Also
Also Considered
Considered
Dummy
Dummy
Advertising
Advertising
Vehicles
Vehicles
LMS
467
Pretesting Finished Broadcast Ads

Theater
Theater
Tests
Theater
Tests
Theater Tests
Tests
On-Air
On-Air Tests
Tests
Measures changes in product

Measures changes in product
Insertion in TV programs in
Insertion in TV programs in
preferences
preferences
May also measure . . .
May also measure . . .
Interest in and reaction to
Interest in and reaction to
the
the commercial
commercial
Reaction from an
Reaction from an
adjective
adjective checklist
checklist
Recall of various aspects
Recall of various aspects
included
included
Interest in the brand
Interest in the brand
presented
presented
Continuous (frame-byContinuous (frame-byframe)
frame) reactions
reactions
specific
specific markets
markets
Limitations are imposed by
Limitations are imposed by
day-after
day-after recall
recall
LMS
468
Market Testing Print
Ads
Inquiry
Inquiry Tests
Tests
Recognition
Recognition Tests
Tests
Testing
Testing
Recall
Recall Tests
Tests
Tracking
Tracking Studies
Studies
LMS
469
Starch-Scored
Noted reflect.com
score the Magazine Ad
percentage of readers who
remember seeing the ad
Seen-associated score
the percentage who
remember seeing or
reading any part of the ad
identifying the product or
brand
Read most scorethe
percentage of readers who
+
report reading at least half
LMS
470
Starch-Scored Natures Accents Ad
LMS
471
Day after recall test - the most commonly performed

Market
measure.Testing Broadcast Commercials
Persuasive measures
attempting
to measure persuasive
Day
Persuasive
Day After
After
Persuasive
impact of the commercial
Recall
Measures
Recall Tests
Testson brand selection.
Measures
Diagnostic - measures to determine viewers perceptions of
the commercial including evaluations, perceptions, etc.
Comprehensive measures - a combination of each of the
Tracking
Tracking
three
previous measures.
Diagnostics
Diagnostics
Studies
Studies
Test marketing - testing of finished commercials in specified
Testing
Testing
test markets.
Single source tracking - tracking of the impact of the
commercial
from TV set to the retail store through
the use of
Comprehensive
Comprehensive
Single-source
Single-source
Measures
scanner
data
Measures
Tracking
Tracking
Tracking studies - measuring the effects on various factors
Marketing
(recall, awareness, andTest
attitudes)
over time.
Test
Marketing
LMS
472
Comprehensive Testing by Ipsos-ASI
LMS
+
473
Essentials of Effective Testing

Use
Use aa Consumer
Consumer
Response
Response Model
Model
Establish
Establish
Communications
Communications
Objectives
Objectives
Testing
Testing
Understand
Understand and
and
Implement
Implement
Proper
Proper Research
Research
Use
Use Pretests
Pretests and
and
Posttests
Posttests
Use
Use Multiple
Multiple
Measures
Measures
LMS
474
FOCUS REVIEW CHAPTER
CHAPTER
CHAPTER
CHAPTER
CHAPTER
CHAPTER
CHAPTER
CHAPTER
6
475

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PROMOTIONAL

Last Updated:March 23, 2016

LMS SEGi education group

Its Googles World

The most powerful brand in the world

Its Googles World

Delivers relevant search results by favoring

Text ads at top or side of search results

Generates sales and branding

Google Rapidly Expanding

Beyond online search advertising

Automated purchase of radio ads

Rapidly Changing Media Environment

Increasingly difficult to target audiences &

Consumers no longer passive recipients

Integrated Marketing Approach

Traditional mass media

Television, radio, magazines, newspapers,

Provide detailed information

The New Look of Advertising

Interactive, Informative, Entertaining

Growth of Advertising and Promotion

The Scion Web Site

Consumers can now customize

Coordinated Marketing Elements Build Image

Traditional Marketing Approach

Contemporary IMC Approach

Contemporary Perspective of IMC

Test Your Knowledge

Growing Importance of IMC

Strategic integration of communications

Rapidly changing environment

Behind the Growing Importance of IMC

The Role of IMC in Branding

Brand identity is a combination of

IMC plays a major role in

The Most Valuable Brands in the World

Finding New Ways to Build Brands

Consumers are driving the trend

They view brands as a form of

Finding New Ways to Build Brands

Get consumers involved

Apple Computer lets consumers test products

Interaction can be the best marketing

The Promotional Mix

Paid forms of non-personal communication

About an organization, product, service, or

The Most Common Forms of Advertising

Bose Uses Direct Response Advertising

Users participate in and modify the form and

*Click outside of the video screen to advance to the next slide

Using the Internet as an IMC Tool

Most of the promotional budget now goes to

Declining brand loyalty

Test Your Knowledge

Advertising Versus Publicity

Systematically planning and

Public Relations Tools

A seller attempts to assist and/or persuade

IMC Audience Contact Tools

Test Your Knowledge

The _____ is a written document that