BUS M 300 Lecture 10 Outline of Last Lecture I Product Life Cycle II Creating Product Identity Outline of Current Lecture III Advertising IV Product Advertising V Institutional Advertisements VI Target Audience VII Scheduling VIII Executing the Pre test IX Sales Promotions Current Lecture Advertising o Advertising is nonpersonal communication that is paid for by an identified sponsor using mass media to persuade or inform an audience o Allows an organization to Communicate its message in favorable way Repeat the message as often as it deems necessary to have an impact Product Advertising o The focus is on selling a good or service and can take three forms o 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 market These 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 effective o 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 brand o 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 Advertisements o Used to support the public relations plan or counter adverse publicity o Can be used in govt or the private sector o Objectives Promotes organizational image Stimulates product category demand Build industrial goodwill o 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 one product 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 effect o May be demographic o Should be specific and simple o May include secondary purchase influences Scheduling o Buyer turnover how often new buyers enter the market to buy the product o Purchase frequency the more frequently the product is purchased the less repetition is required o Forgetting rate the speed with which buyers forget the brand if advertising is not seen o 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 Test o Portfolio tests the test ad is placed in a portfolio with other ads and stories o Jury tests consumers are asked to rate how they liked it how much it drew their attention and how attractive they thought it was o Theater tests consumers are invited to view new tv shows or movies in which test commercials are shown Sales Promotions o Programs designed to build interest in or encourage purchase of a product during a specified time period o Gets buyers to buy now o Done by giving them short term incentives o Build awareness and sales quickly o Impersonal in nature o