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Copy, illustrations, and any identifying marks. The layout shows where each part of the ad will be placed and gives guidelines to the people working on the ad. For example, the layout helps the copywriter determine how much space he or she has to work with and how much copy should be written. The layout can also guide the art director in determining the size and type of photos. In the ad for Sims Snowboards shown in Exhibit 9-24, the layout is designed to make the ad look like it was reprinted...

Bonus Packs

Bonus packs offer the consumer an extra amount of a product at the regular price by providing larger containers or extra units (Exhibit 16-22). Bonus packs result in a lower cost per unit for the consumer and provide extra value as well as more product for the money. There are several advantages to bonus pack promotions. First, they give marketers a direct way to provide extra value without having to get involved with complicated coupons or refund offers. The additional value of a bonus pack is...

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E-commerce, 494, 501 Economic censorship, 769-771 Economic impact, of advertising, 772-779 competition, 775-776 consumer choice, 774-775 information, 777, 778 market power, 777-778 product costs prices, 776-777 Economic infrastructure, 662 Economies of scale, 231-232, 775 Edward Davis Educational Foundation, 518 Effective reach, 320-321 Effectiveness measurement, 618-654 advertising, 193-194 arguments against, 623-625 arguments in favor of, 621-623 of budgeting decisions, 626 comprehensive...

Budget Allocation

While many companies are spending more money on sales promotion than on media advertising, it is difficult to say just what percentage of a firm's overall promotional budget should be allocated to advertising versus consumer- and trade-oriented promotions. This allocation depends on a number of factors, including the specific promotional objectives of the campaign, the market and competitive situation, and the brand's stage in its life cycle. Consider, for example, how allocation of the...

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Cable television, 364-370 advantages of, 367-369 advertising on, 366-367 future of, 369-370 growth of, 364-366 limitations of, 369 major networks, 365 Campaign theme, 251-254 Cannes Lion Awards, 240 Carryover effect, 199-200 Cash system, 382-383 Catalogs, 474-475 Category development index (CDI), 311-312 Category management system, 73-75 Cause-related marketing, 590-592 Cease-and-desist order, 730 Celebrity endorsement audience receptivity, 173-175, 625 controversial, 165-166 Fame Index,...

Advantages of Magazines

Magazines have a number of characteristics that make them attractive as an advertising medium. Strengths of magazines include their selectivity, excellent reproduction quality, creative flexibility, permanence, prestige, readers' high receptivity and involvement, and services they offer to advertisers. Selectivity One of the main advantages of using magazines as an advertising medium is their selectivity, or ability to reach a specific target audience. Magazines are the most selective of all...

Chapter Opening Vignettes

Each chapter begins with a vignette that shows the effective use of integrated marketing communications by a company or ad agency or discusses an interesting issue that is relevant to the chapter. These opening vignettes are designed to draw the students into the chapter by presenting an interesting example, development, or issue that relates to the material covered in the chapter. Some of the companies, brands, and organizations profiled in the opening vignettes include the U.S. Army, BMW,...

John Hallward

President, Global Product Development Ipsos-ASI Inc, The Advertising Research Company' Twenty years ago I applied to consumer packaged good manufacturers such as Procter & Gamble, General Mills,and General Foods. Having studied marketing and finance, I preferred a marketing career and wanted to follow the brand management path at P& G in Canada. On the P& G application they required students to indicate their three most enjoyed courses, and the three least preferred. I mentioned that...

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Gaffney, John, 795, 801 Gaidis, William C., 126, 797 Galavision, 45, 359, 365 Galbraith, John K., 764, 817 Gale, Bradley T., 819 Gallo, 243 Gallup & Robinson, 448, 583, 634, 642, 643, 644, 646 Game, Deborah, 812 Game Show Network, 365 Gannett Company, 415 Gannett Transit, 441 Gap, 75, 84, 289, 448, 463, 475, 494, 762 Garbett, Tom, 810 Gardener, Elizabeth, 649, 811 Gardner, Meryl Paula, 803 Gateway, 20, 76, 85, 90, 91-92, 171, 452, 586, 608 Gatorade, 137 Gatty, Ronald, 811 Gay, Verne, 805 Gay...

Direct Marketing Strategies and Media

As with all other communications programs discussed in this text, marketers must decide the message to be conveyed, the size of the budget, and so on. Perhaps the major difference between direct-marketing programs and other promotional mix programs regards the use of media. As shown in Figure 14-1, direct marketing employs a number of media, including direct mail, telemarketing, direct-response broadcasting, the Internet, and print. Each medium is used to perform specific functions, although...

Exhibit 1512 Chrysler provides public relations information on its site

As were press kits and a calendar of upcoming events (Exhibit 15-12). The objective of the site was to improve relations with the press, and Chrysler was quite effective in doing so. In addition, Chrysler's newsroom contains many of the articles written about the corporation, including awards won and philanthropic efforts such as its 10 million support for children of the victims of the September 11 terrorist attack. Other examples of effective use of public relations activities on the Internet...

Advertising

Advertising is defined as any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.26 The paid aspect of this definition reflects the fact that the space or time for an advertising message generally must be bought. An occasional exception to this is the public service announcement (PSA), whose advertising space or time is donated by the media. The nonpersonal component means that advertising involves mass media (e.g., TV, radio,...

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Are available on either a network or a local market basis, whereas spot announcements are available only from local stations. Sponsorship Under a sponsorship arrangement, an advertiser assumes responsibility for the production and usually the content of the program as well as the advertising that appears within it. In the early days of TV, most programs were produced and sponsored by corporations and were identified by their name, for example, Texaco Star Theater and The Colgate Comedy Hour....

Combining Personal Selling with Other Promotional Tools

Like the other program elements, personal selling is usually one component of the integrated marketing communications program. Rarely, if ever, is it used alone. Rather, this promotional tool both supports and is supported by other program elements. Exhibit 18-4 Gateway's IMC campaign informs customers that Gateway is in the business-to-business market Exhibit 18-4 Gateway's IMC campaign informs customers that Gateway is in the business-to-business market

Combining Direct Marketing with Public Relations As you will see

Later in this text, public relations activities often employ direct-response techniques. Private companies may use telemarketing activities to solicit funds for charities or cosponsor charities that use these and other direct-response techniques to solicit funds. Likewise, corporations and or organizations engaging in public relations activities may include toll-free numbers or website URLs in their ads or promotional materials. Direct mail has also been shown to be effective in recruiting job...

Audience Measurement in the Yellow Pages Two forms of audience

Measurement are employed in the Yellow Pages industry. As with other print media, circulation is counted as the number of either individuals or households possessing a particular directory. But Yellow Pages advertisers have resisted the use of circulation figures for evaluating audience size, arguing that this number represents only potential exposures to an ad.28 Given that households may possess more than one directory, advertisers argued for a figure based on usage. The National Yellow Pages...

Effective Marketing or Deception and Invasion of Privacy

The direct-marketing industry has taken its share of criticism from consumers and government agencies for a long time. Critics of direct marketing cite junk mail, telemarketing, and the selling of names contained in a database as just some of the reasons for their discontent. While it is a very effective medium for marketers, the mention of direct marketing conjures up negative connotations to many consumers. Now, it appears that the Internet may be taking a similar track. Consider this...

A

AIDA model (5) A model that depicts the successive stages a buyer passes through in the personal selling process including attention, interest, desire, and action. ASI Recall Plus Test (18) A day-after recall test of television commercials (formerly known as the Burke Test). absolute costs (10) The actual total cost of placing an ad in a particular media vehicle. account executive (3) The individual who serves as the liaison between the advertising agency and the client. The account executive...

Combining Personal Selling and Direct Marketing

Companies have found that integrating direct marketing, specifically telemarketing, into their field sales operations makes their sales efforts more effective. The cost of a sales call and the cost associated with closing the sale are already very high and on the increase. Many marketers have reduced these costs by combining telemarketing and sales efforts (a typical telesales call costs about 11 cents for each 1 in revenue generated).17 A number of companies now offer consulting services to...

B

Program cost divided by amount of product sold Coupon Distribution Coupons can be disseminated to consumers by a number of means, including freestanding inserts in Sunday newspapers, direct mail, newspapers (either in individual ads or as a group of coupons in a cooperative format), magazines, and packages. Distribution through newspaper freestanding inserts is by far the most popular method for delivering coupons to consumers, accounting for 84 percent of all coupons distributed in 2001. This...

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Ad views (impressions), 487, 502 Adjacencies, 364 Admazines, 402-403, 404 Advertainment, 68, 749-750 Advertiser-supported syndication, 362 Advertising, 16-18 business-to-business, 19 classifications of, 19 cooperative, 552-554 corporate see Corporate advertising corrective, 730-733 creative strategy see Creative strategy creativity in see Advertising creativity criticisms of, 753-772 deception untruthfulness, 754 offensiveness bad taste, 754-756 sexual appeals, 756-757 social cultural impact...

Basic Model of Communication

Over the years, a basic model of the various elements of the communication process has evolved, as shown in Figure 5-1.2 Two elements represent the major participants in the communication process, the sender and the receiver. Another two are the major communication tools, message and channel. Figure 5-1 A model of the communication process

Combining Direct Marketing with Sales Promotions How many

Times have you received a direct-mail piece notifying you of a sales promotion or event or inviting you to participate in a contest or sweepstakes Ski shops regularly mail announcements of special end-of-season sales. Airlines send out mailers or emails announcing promotional airfares. Nordstom and other retail outlets call their existing customers to notify them of special sales promotions. Each of these is an example of a company using direct-marketing tools to inform customers of sales...

B1b

The goal of the media planner is to extend media coverage to as many of the members of the target audience as possible while minimizing the amount of waste coverage. The situation usually involves trade-offs. Sometimes one has to live with less coverage than desired other times, the most effective media expose people not sought. In this instance, waste coverage is justified because the media employed are likely to be the most effective means of delivery available and the cost of the waste...

For many yearsthe promotional Integrated Marketing Communications

Function in most companies was dominated by mass-media advertising. Companies relied primarily on their advertising agencies for guidance in nearly all areas of marketing communication. Most marketers did use additional promotional and marketing communication tools, but sales promotion and direct-marketing agencies as well as package design firms were generally viewed as auxiliary services and often used on a per-project basis. Public relations agencies were used to manage the organization's...

Buying Radio Time

The purchase of radio time is similar to that of television, as advertisers can make either network, spot, or local buys. Since these options were reviewed in the section on buying TV time, they are discussed here only briefly. Network Radio Advertising time on radio can be purchased on a network basis using one of the national networks. There are currently three major national radio networks, Westwood One, ABC, and Premiere. There are also more than 100 regional radio networks across the...

Concept Generation and Testing

Figure 19-3 describes the process involved in advertising concept testing, which is conducted very early in the campaign development process in order to explore the targeted consumer's response to a potential ad or campaign or have the consumer evaluate advertising alternatives. Positioning statements, copy, headlines, and or illustrations may all be under scrutiny. The material to be evaluated may be just a headline or a rough sketch of the ad. The colors used, typeface, package designs, and...

Effects on Product Costs and Prices

A major area of debate among economists, advertisers, consumer advocates, and policymakers concerns the effects of advertising on product costs and prices. Critics argue that advertising increases the prices consumers pay for products and services. First, they say the large sums of money spent advertising a brand constitute an expense that must be covered and the consumer ends up paying for it through higher prices. This is a common criticism from consumer advocates. Several studies show that...

What Is Pushmoney16

PACT (Positioning Advertising Copy Testing) (19) A set of principles endorsed by 21 of the largest U.S. ad agencies aimed at improving the research used in preparing and testing ads, providing a better creative product for clients, and controlling the cost of TV commercials. page views (15) Number of times a user requests a page that contains a particular ad. Used to indicate the number of times an ad was potentially seen, or gross impressions. participations (11) The situation where several...

Advertising and the First Amendment

Freedom of speech or expression, as defined by the First Amendment to the U.S. Constitution, is the most basic federal law governing advertising in the United States. For many years, freedom of speech protection did not include advertising and other forms of speech that promote a commercial transaction. However, the courts have extended First Amendment protection to commercial speech, which is speech that promotes a commercial transaction. There have been a number of landmark cases over the...

Cable Television

The Growth of Cable Perhaps the most significant development in the broadcast media has been the expansion of cable television. Cable, or CATV (community antenna television), which delivers TV signals through fiber or coaxial wire rather than the airways, was developed to provide reception to remote areas that couldn't receive broadcast signals. Cable then expanded to metropolitan areas and grew rapidly due to the improved reception and wider selection of stations it offered subscribers. Cable...

Examining Consumer Motivations

Marketers recognize that while problem recognition is often a basic, simple process, the way a consumer perceives a problem and becomes motivated to solve it will influence the remainder of the decision process. For example, one consumer may perceive the need to purchase a new watch from a functional perspective and focus on reliable, low-priced alternatives. Another consumer may see the purchase of a watch as more of a fashion statement and focus on the design and image of various brands. To...

First Pages

400 local stations and cable channels were permitting or considering spirits ads, although most had restrictions that the ads had to air after 9 p.m. In December 2001 NBC, which is owned by General Electric Co., made a landmark decision when it announced that it would become the first broadcast network to accept hard-liquor advertising in more than 50 years. NBC decided it was tired of the double standard by which broadcast networks accept beer and wine commercials but not spots for hard liquor...

Advantages and Disadvantages of Publicity

Publicity offers the advantages of credibility, news value, significant word-of-mouth communications, and a perception of being endorsed by the media. Beyond the potential impact of negative publicity, two major problems arise from the use of publicity timing and accuracy. Timing Timing of the publicity is not always completely under the control of the marketer. Unless the press thinks the information has very high news value, the timing of the press release is entirely up to the media if it...

Computers in Market Analysis

Earlier in this chapter, we provided examples of Simmons and MRI data. In Chapter 2, we reviewed the information in Prizm and VALS, as well as other such systems. All these data can be accessed either through an interactive system or on the agency's own PC. For example, MRI offers its clients interactive capabilities with its mainframe or its MEMRI software database that can be used on a PC to cross-tabulate media and demographic data, estimate reach and frequency, and rank costs, in addition...

Communicationhas bn u definedas the The Nature of Communication

Passing of information, the exchange of ideas, or the process of establishing a commonness or oneness of thought between a sender and a receiver.1 These definitions suggest that for communication to occur, there must be some common thinking between two parties and information must be passed from one person to another (or from one group to another). As you will see in this chapter, establishing this commonality in thinking is not always as easy as it might seem many attempts to communicate are...

Defining Direct Marketing

As noted in Chapter 1, direct marketing is a system of marketing by which organizations communicate directly with target customers to generate a response or transaction. This response may take the form of an inquiry, a purchase, or even a vote. In his Dictionary of Marketing Terms, Peter Bennett defines direct marketing as the total of activities by which the seller, in effecting the exchange of goods and services with the buyer, directs efforts to a target audience using one or more media...

Determining the Role of Personal Selling

The first questions a manager needs to ask when preparing the promotional program are what the specific responsibilities of personal selling will be and what role it will assume relative to the other promotional mix elements. To determine its role, management should be guided by four questions 1. What specific information must be exchanged between the firm and potential customers 2. What are the alternative ways to carry out these communications objectives 3. How effective is each alternative...

S

S-shaped response curve (7) A sales response model that attempts to show sales responses to various levels of advertising and promotional expenditures. sales-oriented objectives (7) Budgeting objectives related to sales effects such as increasing sales volume. sales promotion (1, 16) Marketing activities that provide extra value or incentives to the sales force, distributors, or the ultimate consumer and can stimulate immediate sales. sales promotion agency (3) An organization that specializes...

Audience Measurement in Transit Advertising As with outdoor

Advertising, the cost basis for transit is the number of showings. In transit advertising, a 100 showing means one ad appears on or in each vehicle in the system a showing of 50 means half of the vehicles carry the ad. If you are placing such ads on taxicabs, it may be impossible to determine who is being exposed to them. Rate information comes from the sellers of transit advertising, and audience information is very limited. So much of the information marketers need to purchase transit ads...

Additional Federal Regulatory Agencies

The Federal Communications Commission The fcc, founded in 1934 to regulate broadcast communication, has jurisdiction over the radio, television, telephone, and telegraph industries. The FCC has the authority to license broadcast stations as well as to remove a license or deny renewal to stations not operating in the public's interest. The FCC's authority over the airways gives it the power to control advertising content and to restrict what products and services can be advertised on radio and...

Deceptive Advertising

In most economies, advertising provides consumers with information they can use to make consumption decisions. However, if this information is untrue or misleads the consumer, advertising is not fulfilling its basic function. But what constitutes an untruthful or deceptive ad Deceptive advertising can take a number of forms, ranging from intentionally false or misleading claims to ads that, although true, leave some consumers with a false or misleading impression. The issue of deception,...

Frequency Programs

One of the fastest-growing areas of sales promotion is the use of frequency programs (also referred to as continuity or loyalty programs). American Airlines was one of the first major companies to use loyalty programs when it introduced its AAdvantage frequent-flyer program in 1981. Since then frequency programs have become commonplace in a number of product and service categories, particularly travel and hospitality, as well as among retailers. Virtually every airline, car rental company, and...

F

Failure fee (16) A trade promotion arrangement whereby a marketer agrees to pay a penalty fee if a product stocked by a retailer does not meet agreed-upon sales levels. Fairness Doctrine (21) A Federal Communications Commission program that required broadcasters to provide time for opposing viewpoints on important issues. fear appeals (6) An advertising message that creates anxiety in a receiver by showing negative consequences that can result from engaging in (or not engaging in) a particular...

Appraising Self Regulation

The three major participants in the advertising process advertisers, agencies, and the media work individually and collectively to encourage truthful, ethical, and responsible advertising. The advertising industry views self-regulation as an effective mechanism for controlling advertising abuses and avoiding the use of offensive, misleading, or deceptive practices, and it prefers this form of regulation to government intervention. Self-regulation of advertising has been effective and in many...

Geographic Coverage

Snow skiing is much more popular in some areas of the country than in others. It would not be the wisest of strategies to promote skis in those areas where interest is not high, unless you could generate an increase in interest. It may be possible to promote an interest in skiing in the Southeast, but a notable increase in sales of ski equipment is not very likely, given the market's distance from snow. The objective of weighting certain geographic areas more than others makes sense, and the...

Communications

Specific objectives for the IMC program facilitate coordination of the various groups working on the campaign. Many people are involved in the planning and development Exhibit 7-1 The objective of this ad is to demonstrate Exhibit 7-2 State Farm's objectives for this ad may Toyota's concern for the environment be other than sales Exhibit 7-1 The objective of this ad is to demonstrate Exhibit 7-2 State Farm's objectives for this ad may Toyota's concern for the environment be other than sales...

Discussion Questions

The vignette at the beginning of the chapter discusses how Rolling Stone magazine is undergoing major changes to update its image and make it more appealing to a younger audience. Evaluate the changes being made by Rolling Stone to reposition itself and the challenges the magazine faces in trying to compete against other magazines that are targeting young adults. 2. Discuss the role of newspapers and magazines in the development and implementation of an integrated marketing communications...

Iq C

Been promoting the value of magazines in successful marketing and brandbuilding programs with a series of ads such as the one shown Permanence Another distinctive advantage offered by magazines is their long life span. TV and radio are characterized by fleeting messages that have a very short life span newspapers are generally discarded soon after being read. Magazines, however, are generally read over several days and are often kept for reference. They are retained in the home longer than any...

Marketing Research Companies

One of the more widely used collateral service organizations is the marketing research firm. Companies are increasingly turning to marketing research to help them understand their target audiences and to gather information that will be of value in designing and evaluating their advertising and promotions programs. Even companies with their own marketing research departments often hire outside research agencies to perform some services. Marketing research companies offer specialized services and...

How to Test

Our discussion of what should be tested, when, and where was general and designed to establish a basic understanding of the overall process as well as some key terms. In this section, we discuss more specifically some of the methods commonly used at each stage. First, however, it is important to establish some criteria by which to judge ads and commercials. Conducting evaluative research is not easy. Twenty-one of the largest U.S. ad agencies have endorsed a set of principles aimed at improving...

Advertising-example

Advertising Example

Cooperative Advertising The final form of trade-oriented promotion we examine is cooperative advertising, where the cost of advertising is shared by more than one party. There are three types of cooperative advertising. Although the first two are not trade-oriented promotion, we should recognize their objectives and purpose. Horizontal cooperative advertising is advertising sponsored in common by a group of retailers or other organizations providing products or services to the market. For...

Set Tentative Marketing Communication Budget

Monitor, evaluate, and control integrated marketing communications program Monitor, evaluate, and control integrated marketing communications program Examine overall marketing plan and objectives Role of advertising and promotion Competitive analysis Assess environmental influences Analysis of Promotional Program Situation organization Firm's ability to implement promotional program Agency evaluation and selection Review of previous program results External analysis Consumer behavior analysis...

InStore Media

Advertisers spend an estimated 17 billion to promote their products in supermarkets and other stores with untypical media like displays, banners, and shelf signs. These point-of-purchase materials include video displays on shopping carts, kiosks that provide recipes and beauty tips, and coupons at counters and cash registers, LED (light-emitting diode) boards, and ads that broadcast over in-house screens. At one time, Miller Brewing Co. used 30 to 40 agencies to provide these services (it now...

Integrating PR into the Promotional

Given the broader responsibilities of public relations, the issue is how to integrate it into the promotional mix. Philip Kotler and William Mindak suggest a number of alternative organizational designs Either marketing or public relations can be the dominant function both can be equal but separate functions or the two can perform the same roles.6 While each of these designs has its merits, in this text we consider public relations an IMC program element. This means that its broad role must...

Integrating the InternetTV Commercials Hit the

As the Internet moves beyond being a direct-response medium, assuming additional marketing objectives such as branding, the format of the communications are changing as well. Knowing that banner ads and interstitials may not be doing the job, electronic marketers are turning to an old reliable the TV commercial. Only now,the TV commercial is on the Web. As the technology on the Internet improves, more and more marketers have taken their commercials to the Web hoping to attract viewers'...

Interactive Agencies

With the rapid growth of the Internet and other forms of interactive media, a new type of specialized marketing communications organization has evolved the interactive agency. Many marketers are using interactive agencies that specialize in the development and strategic use of various interactive marketing tools such as websites for the Internet, banner ads, CD-ROMs, and kiosks. They recognize that the development of successful interactive marketing programs requires expertise in technology as...

J

Walter Thompson, 77, 81, 199, 244, 404, 646 Jacobson Consulting Applications, 478 JCPenney Co., 17, 46, 51, 301, 354, 474 Johnson & Johnson, 17, 22, 28, 148, 302, 352, 451, 579-580, 587, 592, 637 Johnston & Murphy, 468 Jones, Chris, 81 Jones, John Philip, 230-231, 636, 802, 811 Jordan, Michael, 165, 178, 235, 280, 675

Key Terms

Media planning,30l media objectives, 301 media strategies, 301 medium,301 media vehicle, 301 reach,301 coverage, 301 frequency, 303 sweeps periods, 303 index number, 306 index (BDI), 310 category development index (CDI), 311 waste coverage, 313 continuity, 314 flighting, 314 pulsing, 314 unduplicated reach,318 duplicated reach,318 program rating,318 gross ratings points (TRPs),319 effective reach, 320 average frequency, 321 absolute cost, 323 relative cost, 323 cost per thousand (CPRP), 324...

L

Range A RangeB RangeC Advertising expenditures (for example, word of mouth). At the other extreme, more does not necessarily mean better Additional dollars spent beyond range B have no additional impact on sales and for the most part can be considered wasted. As with marginal analysis, one would attempt to operate at that point on the curve in area B where the maximum return for the money is attained. Weaknesses in these sales response models render them of limited use to practitioners for...

Limitations of Radio

Several factors limit the effectiveness of radio as an advertising medium, among them creative limitations, fragmentation, chaotic buying procedures, limited research data, limited listener attention, and clutter. The media planner must consider them in determining the role the medium will play in the advertising program. Creative Limitations Amajor drawback of radio as an advertising medium is the absence of a visual image. The radio advertiser cannot show the product, demonstrate it, or use...

Limitations of Television

Although television is unsurpassed from a creative perspective, the medium has several disadvantages that limit or preclude its use by many advertisers. These problems include high costs, the lack of selectivity, the fleeting nature of a television message, commercial clutter, limited viewer attention, and distrust of TV ads. Costs Despite the efficiency of TV in reaching large audiences, it is an expensive medium in which to advertise. The high cost of TV stems not only from the expense of...

Liquor Advertising Almost Makes It to Network Television

For more than five decades, distilled spirits were not advertised on television or radio because of a self-imposed ban by members of the Distilled Spirits Council of the United States (DISCUS). Council members agreed in 1936 to avoid radio advertising and extended the ban to TV in 1948. But Seagram, the second-largest distiller in the world, ended the U.S. spirits industry's longstanding ban on broadcast advertising in June 1996 by airing commercials for its Crown Royal Canadian Whiskey brand...

Loosen up a little

Each year Adweek selects the best media plans of the year. The selection is made by a number of top executives of advertising and media agencies, with category winners including Best media plan spending more than 25 million, . . . between 10 and 25 million, between 1 and 10 million, and less than 1 million. In addition, there are winners in specific categories such as best use of cable TV, best use of outdoor, best use of new media, and so on. While we would like to report on all of them, space...

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Sizes, shapes, and formats they can use color or special inserts to gain the interest of readers. Ads can be run in Sunday magazines or other supplements, and a variety of scheduling options are possible, depending on the advertiser's purpose. Geographic Selectivity Newspapers generally offer advertisers more geographic or territorial selectivity than any other medium except direct mail. Advertisers can vary their coverage by choosing a paper or combination of papers that reaches the areas with...

M

Magazine networks (12) A group of magazines owned by one publisher or assembled by an independent network that offers advertisers the opportunity to buy space in a variety of publications through a package deal. mailing list (14) A type of database containing names and addresses of present and or potential customers who can be reached through a direct-mail campaign. major selling idea (8) The basis for the central theme or message idea in an advertising campaign. marginal analysis (7) A...

Magazine Circulation and Readership

Two of the most important considerations in deciding whether to use a magazine in the advertising media plan are the size and characteristics of the audience it reaches. Media buyers evaluate magazines on the basis of their ability to deliver the advertiser's message to as many people as possible in the target audience. To do this, they must consider the circulation of the publication as well as its total readership and match these figures against the audience they are attempting to reach.

Market Positioning

Positioning has been defined as the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competition.7 As you can see, the position of the product, service, or even store is the image that comes to mind and the attributes consumers perceive as related to it. This communication occurs through the message itself, which explains the benefits, as well as the media strategy employed to reach the target group....

Market Segmentation

It is not possible to develop marketing strategies for every consumer. Rather, the marketer attempts to identify broad classes of buyers who have the same needs and will respond similarly to marketing actions. As noted by Eric N. Berkowitz, Roger A. Kerin, and William Rudelius, market segmentation is dividing up a market into distinct groups that (1) have common needs and (2) will respond similarly to a marketing action.4 The segmentation process involves five distinct steps 1. Finding ways to...

Market Testing of

The fact that the ad and or campaign has been implemented does not mean there is no longer a need for testing. The pretests were conducted on smaller samples and may in some instances have questionable merit, so the marketer must find out how the ad is doing in the field. In this section, we discuss methods for posttesting an ad. Some of the tests are similar to the pretests discussed in the previous section and are provided by the same companies. Posttests of Print Ads A variety of print...

Marketing on the Internet

The rapid growth of the Internet as a marketing tool is creating a new area of concern for regulators. Currently marketing on the Internet is subject to only limited government regulation, and many consumer and industry groups are concerned that some marketers will use the new medium to get around regulations and restrictions on other promotional areas. Following a Federal Trade Commission hearing in 1996, then chairman Robert Pitofsky issued a plea for voluntary industry codes rather than FTC...

Marketing Strategy and Analysis Any organization that wants to exchange its

Products or services in the marketplace successfully should have a strategic marketing plan to guide the allocation of its resources. A strategic marketing plan usually evolves from an organization's overall corporate strategy and serves as a guide for specific marketing programs and policies. For example, a few years ago Abercrombie & Fitch decided to reposition the brand as part of the overall corporate effort to attract a younger audience. As we noted earlier, marketing strategy is based...

Measurement and Evaluation of Results

An important reason for setting specific objectives is that they provide a benchmark against which the success or failure of the promotional campaign can be measured. Without specific objectives, it is extremely difficult to determine what the firm's advertising and promotion efforts accomplished. One characteristic of good objectives is that they are measurable they specify a method and criteria for determining how well the promotional program is working. By setting specific and meaningful...

Measuring the Effectiveness of Corporate Advertising

As you can tell from our discussion of the controversy surrounding corporate advertising, there need to be methods for evaluating whether or not such advertising is effective Attitude surveys. One way to determine the effectiveness of corporate advertising is conducting attitude surveys to gain insights into both the public's and investors' reactions to ads. The Phase II study conducted by market research firm Yankelovich, Skelly & White is one of the best-known applications of this...

Measuring the Effectiveness of Nontraditional Media

In Chapter 13, we noted that one of the disadvantages of employing nontraditional media is that it is usually difficult to measure the effectiveness of the programs. But some progress has been made, as shown in these examples The effects of shopping cart signage. Earlier we discussed sales increases that occurred when shopping cart signage was used. We have also noted throughout this chapter that while increasing sales is a critical goal, many other factors may contribute to or detract from...

Measuring the Effectiveness of Sponsorships

In earlier chapters we discussed the growth in sponsorships and the reasons why organizations have increased their investments in this area. Along with the increased expenditures have come a number of methods for measuring the impact of sponsorships. Essentially, measures of sponsorship effectiveness can be categorized as exposure-based methods or tracking measures 43 Exposure methods. Exposure methods can be classified as those that monitor the quantity and nature of the media coverage...

Measuring the Effectiveness of the Sales Force Is It Really Just ROI

Probably for as long as there have been sales forces, managers have sought ways to determine whether they are effective or not. In the past, salespeople were evaluated on the basis of their sales that is, did they reach their sales quotas As the role of the sales force changed from being purely concerned with selling to becoming more involved in marketing and more responsible for maintaining customer relationships, managers recognized the need for expanding evaluative criteria beyond just the...

Measuring the TV Audience

One of the most important considerations in TV advertising is the size and composition of the viewing audience. Audience measurement is critical to advertisers as well as to the networks and stations. Advertisers want to know the size and characteristics of the audience they are reaching when they purchase time on a particular program. And since the rates they pay are a function of audience size, advertisers want to be sure audience measurements are accurate.

Media Selection

One of the most challenging areas for international marketers is media strategy and selection. Companies generally find major differences in the media available outside their home markets, and media conditions may vary considerably from one country to another. In less developed countries such as Vietnam, Kenya, and Egypt, most consumers do not have contact with a marketer's advertising and promotion efforts until they enter a store. Packaging and other point-of-purchase elements, rather than...

Media Support and Timing

Media support for a sales promotion program is critical and should be coordinated with the media program for the ad campaign. Media advertising is often needed to deliver such sales promotion materials as coupons, sweepstakes, contest entry forms, premium offers, and even samples. It is also needed to inform consumers of a promotional offer as well as to create awareness, interest, and favorable attitudes toward the brand. By using advertising in conjunction with a sales promotion program,...

Message Appeals

One of the advertiser's most important creative strategy decisions involves the choice of an appropriate appeal. Some ads are designed to appeal to the rational, logical aspect of the consumer's decision-making process others appeal to feelings in an attempt to evoke some emotional reaction. Many believe that effective advertising combines the practical reasons for purchasing a product with emotional values. In this section we will examine several common types of message appeals, including...

Minds

Sonal products to Nokia cell phones, are symbols of making it among consumers. In Europe and Asia, digital and satellite technology have made localization of programming easier and less expensive,as six feeds can be beamed off one satellite transponder. While some of the programming shown in various countries can originate from the United States, MTV channels worldwide air more locally produced and programmed content. However, in most markets, 70 percent of the video fare is local music, as...

Miscellaneous Other Media

As noted earlier in this chapter, the variety of advertising support media continues to increase, and discussing or even mentioning all is beyond the scope of this text. However, the following are provided just to demonstrate a few of the many options Place-based media. The idea of bringing the advertising medium to the consumers wherever they may be underlies the strategy behind place-based media. TV monitors and magazine racks have appeared in classrooms, doctors' offices, and health clubs,...

MTV Goes Globalbut with a Local Touch

MTV (Music Television) Network was launched in the United States in 1981 as a joint venture between American Express and Warner Communications. Almost from the outset, the pioneering 24-hour music video cable channel put young viewers in a trance, influencing how they looked, talked, and shopped. The outfit that all but invented the rock video has become perhaps the biggest force in the music world. It is also the premiere platform for marketers trying to woo young consumers in 136 countries...

N

Nader, Ralph, 456, 590, 750, 763, 764 National Basketball Association (NBA), 359, 360, 368, 370 National Enquirer, 322, 394, 403 National Football League (NFL), 201, 355, 358, 370, 713 National Geographic, 394, 403, 687 National Geographic Channel, 365 National Geographic Society, 468 National Hog Farmer, 394 National Institute on Media & Family, 764 National Law Review, 395 National SemiConductor, 501 National Yellow Pages Monitor (NYPM), 448 Navistar, 592 NBC, 23, 30, 300, 358, 359, 360,...

Naming Stadiumsan Expensive and Risky Business

There was a time when stadiums and arenas were named after their sports teams and or cities. There were the Boston Gardens in Boston, Tiger Stadium in Detroit, Wimbledon in Wimbledon, and Old Trafford in Old Trafford (where the Manchester United U.K. football team plays). But all of that has changed. Boston Gardens is now the Fleet Center (named after a bank), and stadiums named after companies include Conseco Fieldhouse (home of the Indiana Pacers and named after an insurance company), Reebok...

Networks and Advertisers Battle over Tasteful Advertising

Kicking The Vending Machine Pictures

Before any commercial airs on network television, it is reviewed by the standards and practices departments of the major networks. There are approximately 30 censors working for the four major broadcast networks who dictate to advertising agencies and their clients what they can and cannot show on national television. The censors review ads often as early as in the storyboard stage and comment on about half of the ads they see, most often with questions about accuracy. However, along with...

New Insights

These alternative perspectives and methodologies provide additional insights and expand our knowledge of consumers. For example, the cultural significance of advertising messages in shaping cultures and triggering communities is now better understood. Likewise, marketers now have a better understanding of how advertising campaigns like Got Milk become popular and help shape our culture. Thanks to the many interpretive analyses of advertisements over recent years, we are also more aware of the...

New Methodologies

Whereas psychologists often study consumer responses to advertising and other forms of communication in controlled settings, where environmental variables can be kept constant, sociologists and anthropologists study behavior in context. For this reason, they often employ qualitative methodologies such as individual interviews, participant observation studies, and or ethnographies. These methods help capture the social, cultural, and environmental influences that may affect consumer behavior....

Newspaper Rates

Traditionally, newspaper space for national advertisers has been sold by the agate line. The problem is that newspapers use columns of varying width. Some have six columns per page, while others have eight or nine, which affects the size, shape, and costs of an ad. This results in a complicated production and buying process for national advertisers purchasing space in a number of newspapers. To address this problem and make newspapers more comparable to other media that sell space and time in...

Noise

Throughout the communication process, the message is subject to extraneous factors that can distort or interfere with its reception. This unplanned distortion or interference is known as noise. Errors or problems that occur in the encoding of the message, distortion in a radio or television signal, or distractions at the point of reception are examples of noise. When you are watching your favorite commercial on TV and a problem occurs in the signal transmission, it will obviously interfere with...

O

While the Yellow Pages are somewhat flexible, their creative aspects are limited. 4. Lead times. Printing schedules require that ads be placed a long time before the publications appear. It is impossible to get an ad in after the deadline, and advertisers need to wait a long time before the next edition. 5. Clutter. A recent study by Avery Abernethy indicates that the Yellow Pages (like other media) experience problems with clutter. 6. Size requirements. Response to Yellow...

Outdoor Advertising

Outdoor advertising has probably existed since the days of cave dwellers. Both the Egyptians and the Greeks used it as early as 5,000 years ago. Outdoor is certainly one of the more pervasive communication forms, particularly if you live in an urban or suburban area. Even though outdoor accounts for only about 2.3 percent of all advertising expenditures and the number of billboards has decreased, the medium has grown steadily in terms of dollars billed. In 1982, approximately 888 million was...

P

PACT (Positioning Advertising Copy Testing), 628, 647-648 Page views (impressions), 487, 502 Participations, 363 Pass-along rate, 326 Pass-along readership, 405-406 Pattern advertising, 674 Payout plan, 226-227 People meter, 373-374 Perceived concern, 177 Perceived control, 177 Perceived scrutiny, 177 Percentage charges, 88 Percentage-of-sales method, 218-222 Perception, 113-114 information interpretation, 113-114 information selection, 113 selective, 114 sensation and, 113 subliminal, 114,...

Percentage Charges

Another way to compensate an agency is by adding a markup of percentage charges to various services the agency purchases from outside providers. These may include market research, artwork, printing, photography, and other services or materials. Markups usually range from 17.65 to 20 percent and are added to the client's overall bill. Since suppliers of these services do not allow the agency a commission, percentage charges cover administrative costs while allowing a reasonable profit for the...

Perception

Knowledge of how consumers acquire and use information from external sources is important to marketers in formulating communication strategies. Marketers are particularly interested in (1) how consumers sense external information, (2) how they select and attend to various sources of information, and (3) how this information is interpreted and given meaning. These processes are all part of perception, the process by which an individual receives, selects, organizes, and interprets information to...

Personal Selling on the Internet

The Internet has been both a benefit and a detriment to many of those involved in personal selling particularly those in the business-to-business market. For some, the Internet has been a threat that might take away job opportunities. Companies have found that they can remain effective even increase effectiveness by building a strong Web presence. The high-cost and poor-reach disadvantages of personal selling are allowing these companies to reduce new hires and even cut back on their existing...

PlannersComputers in Media Strategy Development

In the section on strategy development, we discussed the need to make decisions regarding coverage, scheduling, costs, and the trade-off between reach and frequency, among others. Of primary benefit to media planners are the programs that assist in development of these strategies. While there are far too many of these programs to review here, we will provide a small sampling to demonstrate our point. Reach and Frequency Analyses on the Computer Figure 10-28 demonstrates how software programs...

Planning Creative Strategy The Creative Challenge

Those who work on the creative side of advertising often face a real challenge. They must take all the research, creative briefs, strategy statements, communications objectives, and other input and transform them into an advertising message. Their job is to write copy, design layouts and illustrations, or produce commercials that effectively communicate the central theme on which the campaign is based. Rather than simply stating the features or benefits of a product or service, they must put...

Premiums

Premiums Marketing

Premiums are a sales promotion device used by many marketers. A premium is an offer of an item of merchandise or service either free or at a low price that is an extra incentive for purchasers. Many marketers are eliminating toys and gimmicks in favor of value-added premiums that reflect the quality of the product and are consistent with its image and positioning in the market. Marketers spend over 4 billion a year on value-added premium incentives targeted at the consumer market. The two basic...