Kelli Berg MKTG2201 Exam 3 Review 5 Major Promotional Tools Types of Advertising Chapter 15 Advertising Public Relations and Consumer Sales Promotion o Product advertising focus on specific good or service o Institutional advertising promotes the activities personality or point of view of an organization or company o Corporate advertising promotes company as a whole instead of individual products Who Creates Advertising development o Limited service agency one or more specialized services i e creative o Full service agency provides most or all services needed to mount a campaign including research creation of ad copy and art media selection and production of the final messages Steps to Develop an Ad Campaign 1 Understand the target market 2 Establish message and budget objectives 3 Create the ads 4 Pretest what the ads will say Track eye movement skin responses and bran responses Surveys and focus groups 5 Choose media type s and media schedule 6 Evaluate the advertising Advertising Appeals o Rational emphasize practical need for product o Emotional focus on emotional or social benefit o Reminder advertising keep names in people s minds used by well established brands like Arm Hammer baking soda o Teaser ads generate interest in a to be announced product by drawing attention to an upcoming ad campaign without mentioning the actual product o Comparison explicitly names one or more competitors o Demonstration shows a product in action o Testimonial endorsements celebrity expert or normal person o Slice of life dramatized scene from everyday life o Lifestyle shows person people attractive to target market in an appealing setting Execution Formats Tonality o Straightforward present information in clear manner informative o Humor humorous witty or outrageous ads o Dramatic presents problem and solution that is often exciting and suspenseful o Romantic products associated with dating and mating o Sexy sells sex appeal i e Guess jeans ads o Apprehension fear highlight negative consequences of not using a product i e mouthwash deodorant dandruff shampoo life insurance anti drug PSAs Pros and Cons of Media Vehicles Television Radio Pros Creative and flexible Most cost effective Demonstrate product in use High impact use sight and sound Heard outside the home Can use local personalities Short lead time modified quickly Newspapers Use detailed copy Wide exposure Readers are in right mental frame Magazines Narrowly targeted audiences Excellent visual quality Long life Detailed product info with sense Directories Customers actively seek exposure Advertisers determine quality of of authority to ads ad placement Digital Media Cons Rising costs Fewer people view network television Cannot display or demonstrate products Small audience for each individual station Low readership among teens young adults Short life span look at newspapers only once Most expensive besides direct poor mail Long deadlines Clutter Limited creative options May be a lack of color Usually purchased for a full year and cannot be changed Short lead time between placing Reproduction quality of images is to process ads ad and running it o Owned media sites owned by advertiser websites blogs Facebook Twitter o Paid media display ads sponsorships and paid key word searches o Earned media word of mouth or buzz using social media where the advertiser Branded entertainment marketers integrate products into entertainment venues has no control Sidekick phone in Gossip Girl Media Planning Scheduling o Continuous schedule steady stream of ads throughout the year o Pulsing schedule varies based on demand i e sunscreen in the summer o Reach percentage of target market that will be exposed to the ad o Frequency average number of times a person in the target group will be exposed Posttesting research conducted on consumers responses to actual advertising messages to the message they have seen or heard Public Relations o Seeks to build good relationships with an organization s publics i e consumers stockholders and legislators o Do something good and then talk about it o Buzz marketing o Crisis management o Activities include Internal PR Investor relations Press releases Lobbying Speech writing Corporate identity Media relations Sponsorships Special events Guerilla marketing Sales Promotions o Price Based Coupons Price deals Rebates and refunds Frequency loyalty and continuity programs Special bonus packs o Attention Getting Contests and sweepstakes Premiums Sampling Chapter 13 Retailing Retailing the final stop in the distribution channel in which organizations sell goods and services to consumers for their personal use Provides time place and ownership utility to customers Wheel of retailing hypothesis a theory that explains how firms change becoming more upscale as they go through their life cycle o After achieving high end success a store may open a lower end sister store i e Nordstrom and Nordstrom Rack or Gap and Old Navy Retail Life Cycle o Introduction often compete on low price distinct assortment of products different way to distribute items o Growth retailer catches on with shoppers and sales profits rise copycats may arise may need to expand product offering o Maturity copycats of original idea have formed an industry intense competition may cause price cutting Mergers Downsizing o Decline retail businesses become obsolete can expand abroad to avoid decline How are changing demographics altering retail stores o Convenience for working customers expanded hours for working consumers o Recognize ethnic diversity tailor strategies to cultural makeup of specific areas Merchandise mix total set of all products offered for sale by a retailer including all product lines sold to all consumer groups Classify Retail Stores By o What they sell o Level of service o Merchandise selection Major Types of Retailers o Convenience store limited number of frequently purchased items o Supermarkets large selection of food items and limited selection of general o Box stores limited selection of food items many store brands o Specialty stores carry only a few product lines but offer good selection within merchandise the lines they sell Category killer Home Depot Toys R Us Staples Best Buy o Variety stores variety of inexpensive items Dollar Tree o Discount stores broad assortment of items at low prices with minimal service Walmart Target Kmart o Off price retailers buy excess merchandise from well known manufacturers and pass savings on to customers