ADV3008 EXAM 3 REVIEW Trade shows exhibition of product category vendors products sales leads Specialty items keeps the company name in front of the customer premium items give aways Samples Short purchase cycle lower priced items trying product increases the likelihood of a SALES PROMOTION Sales Promotion 3 popular types EX boat shows purchase PUBLIC RELATIONS Public Relations management function action oriented understanding and goodwill target specific publics Free media no control of message time etc Differences between Advertising and Public Relations Advertising Inform and persuade target to buy specific brands of products PR Develop understanding and goodwill PR seen as more credible messages appear in nonpaid media Major advertising costs media time space Major PR costs non media Advertising more control over message can always control PR less control over message can t always control Goals Credibility Cost Control Interest Advertising editorial interest not very important we don t need to generate interest PR critical to success we don t need to generate interest Personnel Advertising more likely to have a business background PR more likely to have a journalism background Similarities between Advertising PR Stimulate interest in a target group ADV target market PR target public Research based situation analysis starts with research foundation Specific objectives Detailed knowledge of media Reasons to use PR Relatively inexpensive compared to advertising Cuts through advertising noise clutter Highly credible Develop new sales leads Difficult to reach some publics w traditional forms of advertising Lobbying is an example of PR Corporate Image Advertising an umbrella category of advertising Benefits to company image Not specific to one product Corporate image advertising relationships to PR Share the same objectives as PR Understanding goodwill Paid time provides a greater control over message and media EX Toyota trying to fix their image after the recall last year ad fixed on overall image instead of 1 specific model Corporate image product advertising differences Corporate image is less tangible than product attributes Direction Tangibility Overall image Not specific products Upper management involvement entire company Corporate image product similarities Gain attention Involve audience Build credibility EX BP showing real people Bill Ford talking Get action get you to do something Types of corporate advertising messages General Image Most popular designed to enhance the basic image of the company Financial anything that deals with money creates a favorable image in the financial community EX Charles Schwaab Advocacy taking a side on something attitude or behavior with the public on a specific issue often controversial alcohol ads don t drink and drive Recruiting presents the company favorably to prospective employees EX Army Special situation corporate living Corporate Advertising Problems Specific purpose often lacking lack of clear cut purpose Limited results measurement What works and what doesn t work isn t always known little knowledge Basic lack of research BUDGET STRATEGIES Predetermined methods all financially oriented allocation is DETERMINED IN ADVANCE of advertising task analysis Affordable deducted from projected revenues and part of what s left in budget simple most straight forward non advertising expenses and the desired profit are Project Revenues Nonadvertising Expense Desired Profit Problems Least reliable No situation analysis Leads to under spending Percent of sales no residual budget is some percent of PAST OR PROJECTED SALES Problems No situational analysis Difficult to use with new products no sales history to build trends with May lead to under spending Competitive Parity leads to spending wars competitive in its category division Company s share of industry exp on advertising should its market share EX Coke Classic large VS Dr pepper Cherry small Objective Task budgeting Set objectives Identify strategies Estimate costs to do strategies Complications use of several media vehicles media interaction with other marketing variables interaction with marketplace variables time to achieve objectives is it long or short term campaign Budgeting for new products Larger budgets needed need to generate sales immediately you spend on analysis etc but have no sales yet Awareness Trial 50 of people Double budget Agency compensation Commission 15 of media billings Fee the role of the full service agency is changing and is more on a fee system Combination reduce media system fee Other Bonus make a lot more on annual bonuses Retainer a fixed expense level steady stream on income RETAIL ADVERTISING Retailing online or brick mortar selling products directly to final consumers personal use non bus Retailing advertising tasks Create awareness within a store or chain Create a unique position store identity Reduce excess inventory Key moving merchandise through the store Differences between retail product advertising Immediacy generate sales to reduce inventory Product vs Location retail advertising STRESSES LOCATION Breadth of product line balance advertising across thousands of products store is constant Geographic coverage often focuses on a specific geographic area Types of retailer advertising Regular price line advertising est for positioning of the store focus on product line and regular prices Positioning advertising Long term EX stapes low prices Sale advertising MOST COMMON Reduced prices for limited time short term response creates a sense of urgency before prices go back up designed to move inventory Clearance advertising MOST EXTREME INTENSE Huge markdowns closeout sales very immediate inventory change over least image oriented Retail Media Selection Media selection issues local media Short term results Print media Newspaper geographic coverage short term results largest source of retail advertising Magazines Weekly Monthly Awareness building Regular price line advertising Broadcast TV high GRPs short time period effective for both sale and regular price line Radio the more narrow the more specific effective with narrow target markets Direct Mail minimal waste coverage current customers credit card have coupons Geographic trading area local Outdoor not as useful not used as often as other retail media limited use longer period image building regular price line geographic segmentation Yellow pages not popular for packaged goods popular but expensive
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