Chapter 13 Advertising, Sales Promotions, PR

sales promotion programs designed to build interest in or encourage product purchase during a specified period à focus on short term obj trade promotion focus on members of the trade (distribution channel members such as retail salespeople or wholesale distributors) with whom a firm must work to sell its products merchandising allowance reimburse retailer for in store support of the product case allowance discount to the retailer/wholesaler based on volume ordered co-op advertising sales promotion where the manufacturer and retailer share the cost trade shows events at which many co set up elaborate exhibits to show their products, give away samples, distribute product literature, troll for new business contacts promotional products freebies to build awareness for organization or specific brands point of purchase in store displays and signs; keeps brand name in front of the consumer, reinforces mass media advertising, stimulates impulse purchasing push money a bonus paid by manufacturer to a salesperson, customer, or distributor for selling its product rebates allow consumer to recover part of the purchase price via mail-ins to the manufacturer frequency programs offer a consumer a discount for a free product for multiple purchases over time premiums items you get for free when you buy a product (prize in bottom of cereal product sampling distributing free trial size versions of a product to consumers PR communication function that seeks to build good relationships with an organization’s publics (consumers, stockholders, legislators publicity unpaid communication about an organization that appears in the mass media pr campaign coordinated effort to communicate with one or more of firm’s publics press release info an organization distributes to media (hoping that it is published for free lobbying talking with and providing information to gov’t officials in order to influence activities related to an organization sponsorships companies provide financial support to help fund an event in return for publicized recognition of the company’s contribution product/brand placement companies pay to have their products embedded in movies, TV shows, and other entertainment vehicles advertising non personal communication an identified sponsor pays for that uses mass media to persuade or inform an audience product advertising focuses on a specific good or service advocacy advertising type of public service advertising an organization provides that seeks to influence public opinion on an issue because it has some stake in the outcome public service advertisements advertising run by the media without charge for not for profit organizations or to champion a particular cause advertising campaign coordinated, comprehensive plan that carries out promotion objectives and results in a series of advertisements placed in media over a period of time limited service agency provides one or more specialized services (such as media buying or creative development) full service agency provides most or all of the services needed to mount a campaign, including research, creation of ad copy and art, media selection, production of final msgs corrective advertising clarifies or qualifies previous deceptive advertising claims puffery claims made in advertising of product superiority that can’t be proven true/untrue creative strategy process that turns a concept into an advertisement advertising appeal central idea of the ad unique selling proposition a single, clear reason why one product is better to solve a problem; focuses on a need and points out how the product satisfies it pretesting a research method that seeks to minimize mistakes by getting consumer reactions to ad messages before they appear in the media media planning process of developing media objectives, strategies, tactics for use in an advertising campaign à match target market profile with specific media vehicles aperture - the best place and time to reach a person in the target market group banners internet advertising in rectangular graphics at top or bottom of web pages buttons small banner type advertisements that can be placed anywhere on a web page permission marketing email advertising in which consumers can accept/refuse email out of home media a communication medium that reaches people in public places place based media advertising media that transmit messages in public places (doctors’ offices, airports) where certain types of people congregate branded entertainment marketers integrate products into entertainment venue advergaming brand placements in video games media schedule specifies the exact media to use and when to use it advertising exposure the degree to which the target market will see an advertising message placed in a specific vehicle impressions the number of people who will be exposed to a message placed in one or more media vehicles reach the percentage of the target market that will be exposed to the media vehicle frequency avg number of times a person in the target group will be exposed to the msg gross rating points GRP comparing the effectiveness of dif media vehicles: avg reach x frequency cost per thousand CPM compare relative cost effectiveness of dif media vehicles that have dif exposure rates; cost to deliver a message to 1,000 people or homes posttesting research conducted on consumers’ responses to actual advertising messages they have seen or heard unaided recall questions recognition of seeing an ad during a specified period without giving the person the name of the brand aided recall uses clues to prompt answers from people about advertisements they might have seen attitudinal measures probes a consumer’s beliefs or feelings about a product before and after being exposed to messages about it institutional advertising promotes activities, personality, POV of an organization or CO continuous schedule maintains a steady stream of advertising throughout the year pulsing schedule varies the amt of advertising throughout the year based on when the product is likely to be in demand fighting extreme form of pulsing; advertising appears in short, intense bursts alternating with periods of little to no activity