BUS-M 300 Lecture 10Outline of Last Lecture I. Product Life CycleII. Creating Product IdentityOutline of Current Lecture III. AdvertisingIV. Product AdvertisingV. Institutional AdvertisementsVI. Target AudienceVII. SchedulingVIII. Executing the Pre-testIX. Sales PromotionsCurrent Lecture- Advertisingo Advertising is nonpersonal communication that is paid for by an identified sponsor using mass media to persuade or inform an audienceo Allows an organization to: Communicate its message in favorable way Repeat the message as often as it deems necessary to have an impact- Product Advertisingo The focus is on selling a good or service and can take three formso Pioneering advertisements Tell people what a product is, what it can do, and where it can be found The key objective is to inform the target marketThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute. Used in the introductory stage of the PLC Tend to be interesting, convincing, and effectiveo Competitive Advertising Promotes a specific brand’s features and benefits Begins in middle/late growth stage is heavy in the maturity stage Objective is to persuade the target market to select the firms brand over a competitor’s Attracts more attention and increases the perceived quality of the advertiser’s brando Reminder Advertising Is used to reinforce previous knowledge of a product  Used in the mature phase of their product life cycle Reinforcement advertising is used to assure current users they made the right choice Can help to build awareness- Institutional Advertisementso Used to support the public relations plan or counter adverse publicityo Can be used in govt. or the private sectoro Objectives Promotes organizational image Stimulates product category demand Build industrial goodwillo Four different kinds Advocacy advertisements- state the position of a company on an issue- Used when organizations make a request related to a particular action or behavior Pioneering institutional advertisements- announce what a company is, what it can do, or where it is located Competitive institutional advertisements- promote the advantages of oneproduct class over another Reminder institutional advertisements- simply bring the company’s name to the attention of the target market again- Target Audience- the precise group of consumers to whom our advertising is directed and among whom our advertising is intended to have its greatest appeal and effecto May be demographic o Should be specific and simpleo May include secondary purchase influences - Schedulingo Buyer turnover- how often new buyers enter the market to buy the producto Purchase frequency- the more frequently the product is purchased, the less repetition is requiredo Forgetting rate- the speed with which buyers forget the brand if advertising is notseeno Types of media scheduling Continuous scheduling- maintains a steady stream of advertising throughout the year Pulsing schedule- varies the amount of advertising throughout the year based on when the product is likely to be in demand- Executing the Pre-Testo Portfolio tests- the test ad is placed in a portfolio with other ads and storieso Jury tests- consumers are asked to rate how they liked it, how much it drew their attention, and how attractive they thought it waso Theater tests- consumers are invited to view new tv shows or movies in which test commercials are shown- Sales Promotionso Programs designed to build interest in or encourage purchase of a product duringa specified time periodo Gets buyers to buy nowo Done by giving them short term incentiveso Build awareness and sales quicklyo Impersonal in