LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 18, YOU SHOULD BE ABLE TO:
Explain the differences between product advertising and institutional advertising and the variations within each.
Describe the steps used to develop, execute, and evaluate an advertising program.
Explain the advantages and disadvantages of alternative advertising media.
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Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.LO 18-2LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 18, YOU SHOULD BE ABLE TO:LO 18-1Describe the steps used to develop, execute, and evaluate an advertising program.Explain the differences between product advertising and institutional advertising and the variations within each.LO 18-3Explain the advantages and disadvantages of alternative advertising media.18-*LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 18, YOU SHOULD BE ABLE TO:LO 18-4Discuss the strengths and weaknesses of consumer-oriented and trade-oriented sales promotions.Recognize public relations as an important form of communications.LO 18-518-*WHAT IS THE KILLER APP OF ADVERTISING? TELEVISION!18-*TYPES OF ADVERTISEMENTSPRODUCT ADVERTISEMENTSLO 18-1AdvertisingPioneering(or Informational)Competitive(or Persuasive)ReminderProduct AdvertisementsComparativeReinforcement18-*DiGiorno, Fidelity, and Dove What is the type and purpose of each ad?LO 18-118-*Dial Soap What is the type and purpose of this ad?LO 18-118-*TYPES OF ADVERTISEMENTSINSTITUTIONAL ADVERTISEMENTSLO 18-1Institutional AdvertisementsAdvocacyPioneering InstitutionalCompetitive InstitutionalReminder Institutional18-*Chevron and BridgestoneWhat is the type and purpose of each ad?LO 18-118-*Got Milk? and U.S. ArmyWhat is the type and purpose of each ad?LO 18-118-*DEVELOPING THEADVERTISING PROGRAMLO 18-2Identifying the Target AudienceSpecifying the Advertising ObjectivesSetting the Advertising Budget18-*FIGURE 18-1 The Super Bowl delivers a huge audience if you can afford the cost of placing an ad18-*MARKETING INSITE See Your Favorite Super Bowl AdsAgain, and Again!LO 18-218-*DEVELOPING THEADVERTISING PROGRAMDESIGNING THE ADVERTISEMENTLO 18-2Message ContentInformationalElementPersuasiveElementTypes of AppealsFear AppealsSex AppealsHumorous Appeals18-*World Wide Fund, Candie’s, and Geico What is the appeal and purpose of each ad?LO 18-218-*DEVELOPING THEADVERTISING PROGRAMDESIGNING THE ADVERTISEMENTLO 18-2Creating the Actual MessageCelebritySpokespeopleIdeas andArtworkCostK-Swiss72andSunny18-*DEVELOPING THEADVERTISING PROGRAMSELECTING THE RIGHT MEDIALO 18-2Advertising MediaMaximize ExposureMinimize CostsMedia Planning Goals18-*FIGURE 18-2 Television, direct mail, and newspapers account for more than 60% of all advertising expenditures ($ in millions)18-*DEVELOPING THEADVERTISING PROGRAMSELECTING THE RIGHT MEDIALO 18-2Basic TermsReachRatingFrequencyGross Rating Points (GRPs)Cost per Thousand (CPM)= Reach × Frequency18-*USING MARKETING DASHBOARDS What is the Best Way to Reach 1,000 Customers?LO 18-2Cost per Thousand (CPM) Impressions18-*FIGURE 18-3 Advertisers must consider the advantages and disadvantages of the many media alternatives18-*DEVELOPING THEADVERTISING PROGRAMDIFFERENT MEDIA ALTERNATIVESLO 18-3TelevisionZero TVOut-of-Home TV18-*DEVELOPING THEADVERTISING PROGRAMDIFFERENT MEDIA ALTERNATIVESLO 18-3TelevisionWasted CoverageCable and Satellite TVInfomercials18-*DEVELOPING THEADVERTISING PROGRAMDIFFERENT MEDIA ALTERNATIVESLO 18-3Satellite RadioDrive TimesRadio18-*DEVELOPING THEADVERTISING PROGRAMDIFFERENT MEDIA ALTERNATIVESLO 18-3Regional IssuesMagazines18-*DEVELOPING THEADVERTISING PROGRAMDIFFERENT MEDIA ALTERNATIVESLO 18-3NewspapersFalling Circulation & Ad RevenueNew Types of News OrganizationsOnline and Mobile Editions18-*DEVELOPING THEADVERTISING PROGRAMDIFFERENT MEDIA ALTERNATIVESLO 18-3Yellow Pages18-*DEVELOPING THEADVERTISING PROGRAMDIFFERENT MEDIA ALTERNATIVESLO 18-3Paid SearchRich MediaInternetBanner/Display AdsAssessment18-*FIGURE 18-4 Google, Microsoft, and Yahoo! have the largest shares of Internet searches and offer opportunities for online advertising18-*MAKING RESPONSIBLE DECISIONSWho is Responsible for Click Fraud?LO 18-3Pay-to-ReadClick BotsWebtipping18-*DEVELOPING THEADVERTISING PROGRAMDIFFERENT MEDIA ALTERNATIVESLO 18-3OutdoorBillboardsTransitAdvertising18-*DEVELOPING THEADVERTISING PROGRAMDIFFERENT MEDIA ALTERNATIVESLO 18-3Other MediaPlaced-Based MediaSelection CriteriaMedia HabitsCostProduct Attributes18-*DEVELOPING THEADVERTISING PROGRAMSCHEDULING THE ADVERTISINGLO 18-3Factors to ConsiderBuyer TurnoverForgetting RatePurchase Frequency18-*DEVELOPING THEADVERTISING PROGRAMSCHEDULING THE ADVERTISINGLO 18-3ApproachesContinuous (Steady) SchedulePulse (Burst) ScheduleFlighting (Intermittent) Schedule18-*EXECUTING THEADVERTISING PROGRAMPRETESTING THE ADVERTISINGLO 18-3PretestsPortfolio TestsTheater TestsJury Tests18-*EXECUTING THEADVERTISING PROGRAMCARRYING OUT THE ADVERTISING PROGRAMLO 18-3Full-Service AgencyLimited-Service AgenciesIn-House Agencies18-*FIGURE 18-5 Alternative structures of advertising agencies used to carry out the advertising program18-*ASSESSING THEADVERTISING PROGRAMCARRYING OUT THE ADVERTISING PROGRAMLO 18-3PosttestsAided RecallUnaided RecallNotedRead MostSeen-AssociatedAttitude TestsInquiry TestsSales Tests18-*FIGURE 18-6 Sales promotions can be used to achieve many objectives18-*SALES PROMOTIONCONSUMER-ORIENTED SALES PROMOTIONLO 18-4Consumer-Oriented Sales PromotionCoupons18-*SALES PROMOTIONCONSUMER-ORIENTED SALES PROMOTIONLO 18-4Deals18-*SALES PROMOTIONCONSUMER-ORIENTED SALES PROMOTIONLO 18-4PremiumsSelf-Liquidating: Free Toy in Happy MealDeal-Prone & Value Seeing Consumers18-*SALES PROMOTIONCONSUMER-ORIENTED SALES PROMOTIONLO 18-4Contests18-*SALES PROMOTIONCONSUMER-ORIENTED SALES PROMOTIONLO 18-4SweepstakesValue-Based PrizesExperience-Based Prizes18-*SALES PROMOTIONCONSUMER-ORIENTED SALES PROMOTIONLO 18-4Samples18-*SALES PROMOTIONCONSUMER-ORIENTED SALES PROMOTIONLO 18-4Loyalty Programs18-*SALES PROMOTIONCONSUMER-ORIENTED SALES PROMOTIONLO 18-4Point-of-Purchase Displays18-*SALES PROMOTIONCONSUMER-ORIENTED SALES PROMOTIONLO 18-4Rebates18-*SALES PROMOTIONCONSUMER-ORIENTED SALES PROMOTIONLO 18-4Product Placement18-*SALES PROMOTIONTRADE-ORIENTED SALES PROMOTIONLO 18-4Trade-Oriented Sales PromotionAllowances and DiscountsMerchandise AllowanceFinance AllowanceCase AllowanceFree GoodsFloor Stock ProtectionFreight Allowance18-*SALES PROMOTIONTRADE-ORIENTED SALES PROMOTIONLO 18-4Cooperative AdvertisingTraining of Distributors’ Salesforces 18-*PUBLIC RELATIONSLO 18-5Publicity ToolsNews ReleaseNews ConferencePublic ServiceAnnouncement (PSA)18-*INCREASING THE VALUE OF PROMOTIONLO 18-5Self-RegulationBuilding Long-Term Relationships18-*GOOGLE, INC.: THE RIGHT ADSAT THE RIGHT TIMEVIDEO CASE 1818-*