Media used to reach people in the target mkt the primary media may not have effectively reached. Used to support/reinforce messages sent to target markets through other more “dominant” and/or more traditional media.
Out-of-Home advertising media
The Outdoor Advertising Association of America, Inc. (OAAA) categorizes these media as outdoor (billboards, street furniture, alternative media, and transit) as well as specific forms of radio. [Billboards and street furniture together constitute 72% of outdoor billings]
Advertising specialty items vs. Unconventional Specialties
There are thousands of advertising specialty items (ballpoint pens, coffee mugs, key rings, calendars, T-shirts, and matchbooks). Unconventional specialties (plant holders, wall plaques, and gloves w/ advertiser’s name printed on them) are also used to promote a company/its product; so are glassware, trophies, awards, and vinyl products. [Advertisers spend over 18.1 billion per yr. on specialty advertising items]
[one of the major changes (along w/ the growth of social and mobile media) that has occurred in the area of IMC over past few yrs.] A form of advertising that blends marketing and entertainment through TV, film, music talent, and technology. Goal is to use entertainment media to gain consumers’ attention and exposure to products/brands.
Direct marketing is a valuable tool in the integrated communications program, though it usually seeks somewhat different objectives.
system of marketing by which organizations communicate directly w/ target customers to generate a response/transaction. Response may take the form of an inquiry, purchase, or vote.
Direct Marketing Association
Direct Marketing Association (DMA) defines as: interactive system of marketing which uses one or more adv. media to effect a measurable response/transaction at any location.
Direct Response Media
Direct marketing is an aspect of total marketing (involves marketing research, segmentation, evaluation). Direct marketing uses a set of direct-response media (direct mail, telemarketing, interactive TV, print, the Internet, etc.) These media are tools by which direct marketers implement communication process.
-Combining Direct Marketing w/ Sales Promotions-
Ski shops regularly mail announcements of special end-of-season sales. Airlines send out mailers/e-mails announcing promotional airfares. Nordstrom/other retail outlets call existing customers to notify them of special sales promotions. All are examples of a company using direct-marketing tools to inform customers of sales promotions.
Sales promotion event may support direct-marketing effort. (Databases)
Study conducted by Vertis indicated that marketers could increase effectiveness of their direct-mail campaigns by offering exclusive deals/coupons. 72% of surveyed adults responded to direct-mail offering of BOGO free, and 63% responded to an offer of a percentage discount on merchandise. Databases are often built from the names and addresses acquired from a promotion, and direct mail/telemarketing calls follow.
Not all seek behavioral response
Not all direct marketing seeks a behavioral response. Many organizations use direct marketing to build an image, maintain customer satisfaction, and inform/educate customers in an attempt to lead future actions.
What are the Direct Marketing mediums
Direct marketing employs a # of media. Each medium is used to perform specific functions, although all generally follow a one-step or two-step approach.
medium is used directly to obtain an order. (Ex: TV commercials for products like wrench sets, workout equipment, or magazine subscriptions in which viewer is urged to phone a toll-free # to place order immediately. Goal is to generate an immediate sale when ad is shown.)
may involve the use of more than one medium. The 1st effort is designed to screen, or qualify, potential buyers. 2nd effort generates response (the order). (Ex: Many companies use telemarketing to screen on the basis of interest and then follow up to interested parties w/ more info designed to achieve an order or use personal selling to close sale.)
Lower cost of commercials on cable and satellite channels has led advertisers to new form of adv. (infomercials).
Infomercial: long commercial that is designed to fit into a 30-min or 1-hr time slot. Many are produced by the advertisers and are designed to be viewed as regular TV shows. Uses both one and two-step approaches.
Magazines/newspapers are diff. to use for direct marketing. B/c these ads have to compete w/ clutter of other ads and b/c space is relatively expensive, response rates and profits may be lower than in other media. Print direct-response ads can still be found in specific interest areas (financial newspapers/sports/hobby magazines).
How did marketers perceive the internet in early stages?
In its earliest stages, a # of marketing companies perceived the Internet as a direct-response medium.
How has the world wide web evolved into a different media than anyone expected?
Internet is interactive, allowing for a two-way flow. Consumers not only control when and which messages/content they’re exposed to, but now provide their own content, offer their own goods/services for sale, and provide feedback on the same as provided by others.
Many marketers have found the Internet to be effective medium for stimulating trial of their products/services. Often websites offer electronic coupons in an attempt to stimulate trial of their products. Others offer samples, promotions, and sweepstakes designed to encourage trial. (Ex: Music sites (iTunes) allow for a “sampling” of songs before you purchase, while some business-to-business sites allow you to test their software online before purchasing.)
(more involved agreement) sponsor not only provides dollars in return for name association but also participates in providing the content itself. (In some cases, site is responsible for providing content and having it approved by sponsor; other times, sponsor may contribute all or part of content)
looking for a term, company, etc. on the Internet. (The higher a site appears on a search page, the more visitors it will receive. Often, searchers don’t go past first results page.)
organic and nonorganic searches
organic- those that appear b/c of their relevance to the search terms, not advertisements.
-Advertisers will also attempt to reach consumers through nonorganic or paid search such as paid per click advertising by placing their ads on webpages that display results from search engine queries. (Over $16.9 billion spent on search advertising in 2012)
- Search engine optimization (SEO)
(Used to more specifically target customers who may be interested in an advertiser’s offerings) Process of improving the volume of traffic driven to one’s site by a search engine through unpaid (organic) results as opposed to paid inclusions. Belief is that the higher a site appears on search results list, the more visitors it will receive. SEO considers how search engines work and edits its HTML and coding to increase its relevance to keywords and to remove barriers to the indexing activities of search engines.
based on advertiser’s targeting consumers by tracking their website surfing behaviors, such as which websites they have visited/searches they’ve made.
broad range of interactive digital media that exhibit dynamic motion, taking advantage of enhanced sensory features such as video, audio, and animation. Others state as including all content created in flash. Include: *Online commercials *Video on Demand *Webisodes *Interactive Banner Ads *Expandable Ads *Ads in Videogames *Instant messaging *Podcasts * Video ads w/in blogs
commonly associated w/ Web applications that facilitate interactive info sharing, interoperability, user-centered design, and collaboration on the World Wide Web. A Web 2.0 site allows its users to interact w/ each other as contributors to the website’s content, in contrast to websites where users are limited to the passive viewing of info provided to them.
-Direct Marketing On Internet- and e-commerce
Direct marketing and the Internet approach: the use of direct-marketing tools for communications objectives and e-commerce. Many direct marketing tools (direct mail, infomercials) have been adapted to the Internet. At the same time, e-commerce (selling directly to consumer via Internet) has become an industry all its own.
direct inducement that offers an extra value/ incentive for the product to the sales force, distributors, or the ultimate consumer w/ the primary objective of creating an immediate sale.
Can be broken down into 2 categories: consumer oriented and trade-oriented promotions.
Consumer-oriented sales promotion
(sampling, couponing, premiums, contests and sweepstakes, refunds and rebates, bonus packs, price-offs, frequency programs, and event marketing) Directed at consumers, the end purchasers of goods and services, and are designed to induce them to purchase marketer’s brand.
Trade-oriented sales promotion
(dealer contests and incentives, trade allowances, point-of-purchase displays, sales training programs, trade shows, cooperative advertising, etc.) Designed to motivate distributors and retailers to carry product and make an extra effort to push to their customers.
-Increased promotional sensitivity
-One reason for increase in sales promotion is power shift in marketplace from manufacturers to retailers.
-Increased promotional sensitivity-Consumers aren’t naïve; they know that manufacturers/retailers will offer some type of promotion that encourages them to wait for next deal rather than purchasing a product at full price. Obvious reason for consumers’ increased sensitivity to sales promotion offers is that they save money. Another reason- many purchase decisions are made at point of purchase by consumers who are increasingly time-sensitive and facing too many choices.
(aka- comarketing) a manufacturer collaborates w/ an individual retailer to create a customized promotion that accomplishes mutual objectives.
-Brand equity (consumer franchise)
is an intangible asset of added value/goodwill that results from consumers’ favorable image, impressions of differentiation, and/or strength of attachment to a brand. Some critics argue that sales promotion increases come at the expense of brand equity and every dollar that goes into promotion rather than advertising devalues the brand.
-Nonfranchise-building (non FB) promotions:
designed to accelerate the purchase decision process and generate an immediate increase in sales. Don’t communicate info about a brand’s unique features or benefits of using it, so they don’t contribute to the building of brand identity/image. (price-off deals, bonus packs, and rebates/refunds)
Trade promotions receive most criticism for being nonfranchise building b/c:
*many of promotional discounts/allowances given to trade are never passed on to consumers
*most trade promotions forwarded through channels reach consumers in form of lower prices/special deals and lead them to buy on basis of price rather than brand equity.
involves a variety of procedures whereby consumers are given some quantity of a product for no charge to induce trial. Generally considered most effective way to generate trial, although it’s the most expensive.
problem with coupons
Can be difficult to estimate how many consumers will use a coupon and when. Response to a coupon is rarely immediate; takes anywhere from 2-6 months to redeem.
advantages of direct-mailer coupons and FSI
*Mailing can be sent to broad audience or targeted to specific geographic or demographic markets (teenagers, senior citizens, Hispanics...)
*Firms that mail their own coupons can be quite selective about recipients
*Redemption rate is higher than that of FSI’s (freestanding insert: 4-color multipage printed ad booklet that contains consumer packaged goods coupon offers delivered w/ newspapers).
*Can be combined w/ a sample (good attention-grabber)
are often targeted at sales personnel of wholesalers, distributors/dealers, or retailers. These salespeople are imp. link in distribution chain b/c they’re likely to be familiar w/ the market, more frequently in touch w/ customer (reseller or ultimate consumer), and more numerous than manufacturer’s own sales organization.
An increasing number of marketing-oriented companies have established new responsibilities for public relations. (explain)
PR takes on a much broader (and more marketing oriented) perspective, designed to promote the organization as well as its products and services.
-Disadvantages of marketing public relations
1) There is a lack of control over the media.
2) It is difficult to tie in slogans and other advertising devices.
3) Media time and space are not guaranteed.
may include employees, stockholders, and investors of the firm as well as members of the local community, suppliers, and current customers.
those people who are not closely connected with the organization (public at large).
Public relations often attempts to influence government bodies directly at both local and national levels. (explain)
Successful lobbying may mean immediate success for a product, while regulations detrimental to the firm may cost it millions.
Advantage of PR
Cost-In both absolute and relative terms, the cost of public relations is very low, especially when the possible effects are considered. While a firm can employ public relations agencies and spend millions of dollars on PR, for smaller companies this form of communication may be the most affordable alternative available.
What is a measure of effectiveness method of Marketing Public Relations?
Survey Research- Quantitatively assessing consumers’ attitudes toward the product/brand.
drawing data from multiple sources and integrating them to provide insight into the process. (Mark Weiner in discussing measures of effectiveness of MPRs)
refers to the generation of news about a person, product or service that appears in broadcast or print media. (to many marketers, publicity =PR) Publicity is considered a subset of the PR effort.
One of the factors that most sets off publicity from the other program elements is
the sheer power this form of communication can generate. Unfortunately, for marketers, this power is not always realized in the way they would like it to be. Publicity can make or break a product or even a company.
Publicity offers the advantages of ____ and major problems arise including___
credibility, news value, significant word-of-mouth communications and a perception of being endorsed by the media. Beyond the potential impact of negative publicity, other major problems arise from the use of publicity: lack of control, timing and accuracy.
one of the more controversial form of advertising. Meant to promote the firm overall (doesn’t promote any one specific product/service) by enhancing its image, assuming a position on a social issue or cause or seeking direct involvement in something.
Corporate advertising is a waste of money. (explain)
Given that ads don’t directly appeal to anyone, aren’t understood, and don’t promote anything specific, critics say money is better spent elsewhere.
Reason to measure effectiveness before ads are implemented and after the final versions are completed/fielded?
Determine if IMC objectives are achieved. Research should address whether strategy delivers stated objectives and how appropriate measures used to make assessment are.
Reason for a company not measuring the effectiveness of advertising and promotions strategies:
Research problems- It’s difficult to isolate the effects of promotional elements. Each element in marketing mix affects the success of a product/service. B/c it’s often difficult to measure the contribution of each marketing element directly, some managers become frustrated and decide not to test at all. (“If I can’t determine the specific effects, why spend the money?”)
Continuity vs flighting and advertising weights
continuity is more effective media schedule than flighting.
opportunities associated with increasing advertising weights in periods of downward sales cycles or recessions.
(measures taken before the campaign is implemented) May occur at a # of points, from as early on as idea generation to rough execution to testing the final version before implementing it. More than one pretest may be used.
common among both advertisers and ad agencies (with the exception of testing commercials for wear out). Posttesting is designed to:
1) determine if the campaign is accomplishing the objectives sought
2) serve as input into the next period’s situation analysis
the number of persons able to recall the ad and/or its message (most commonly employed metric used in an on-air test)
-Physiological measures used to test both print and broadcast ads include pupil dilation, galvanic skin response, eye tracking, and brain waves.
variations of one ad appear in diff. copies of the same newspaper/magazine.
-Major advantage of day-after recall tests:
they’re field tests. Natural setting is supposed to provide a more realistic response profile. Also popular b/c they provide norms that give advertisers a standard for comparing how well their ads are performing.
In addition to recall, # of diff. measures of commercial’s effectiveness are now offered, including___
persuasive measures and diagnostics.
Companies are focusing on international markets for a number of reasons. (explain)
Many companies in the United States and Western Europe recognize that their domestic markets offer them limited opportunities for expansion because of slow population growth, saturated markets, intense competition, and/or an unfavorable marketing environment.
the monetary value of our imports exceeding that of our exports (ex: US)
Advertising and promotion are important parts of the marketing program of firms competing in the global marketplace. (explain).
An estimated $177 billion was spent of advertising in the United States in 2009, with much of this money being spent by multinational companies headquartered outside this country.
-Many companies have run into difficulties developing and implementing advertising and promotion programs for international markets.
Companies that promote their products/services abroad face an unfamiliar marketing environment and customers w/ diff. sets of values, customs, consumption patterns, habits, and differing purchase motives/abilities. Languages vary w/in countries and between different ones (ex: India, Switzerland) and media options are quite limited in many countries (lack of availability/limited effectiveness). These factors demand diff. creative and media strategies for foreign markets.
Major demographic differences exist among countries as well as within them. Marketers must consider _____
income levels and distribution, age and occupation distribution of the population, household size, education, and employment rates. (literacy rates in some countries as well)
International advertisers often have problems with language. (explain).
The advertiser must know not only the native tongue of the country but also its nuances, idioms and subtleties. International marketers must be aware of the connotations of words and symbols used in their messages and understand how advertising copy and slogans are translated. Marketers often encounter problems in translating their adv. messages and brand names into various languages.
Problems arising from language diversity and differences in signs and symbols can usually be best solved with ______
the help of local expertise.
-The Japanese dislike ads that confront/disparage the competition and tend to prefer soft rather than hard sells.
-Advantages of Global Marketing and Advertising:
-economies of scale in production and distribution
-lower marketing and advertising costs as a result of reductions in planning and control
-Lower advertising production costs
consumers’ general perceptions of quality for products made in a given country (ex: Swiss watch, French wine, German beer)
While the pros and cons of global marketing and advertising continue to be debated, many companies are taking an in-between approach by _______
standardizing their products and basic marketing strategy but localizing their advertising messages. This approach recognizes similar desires, goals, needs, and uses for products/services but tailors advertising to the local cultures and conditions in each market. Some agencies call this “think globally, act locally” while others describe as “global vision w/ a local touch.”
There are a # of reasons why global marketers consolidate advertising w/ one agency. (explain)
Many companies recognize they must develop a consistent global image for company and/or its brands and speak w/ one coordinated marketing voice around the world. (Ex: IBM officials felt the company had been projecting too many images when its advertising was divided among so many agencies.)
Advertising is controlled by
internal self-regulation and by external state and federal regulatory agencies such as the Federal Trade Commission (FTC), the Federal Communications Commission (FCC), the Food and Drug Administration (FDA), and the U.S. Postal Service.
- Millennium vs. Sidney Frank Case
(Individual consumers/competitors who find ad misleading or have other concerns may file a complaint w/ the (NAD) National Advertising Division).
Grey goose cant say they are the best tasting vodka if they arent ranked that way with consumers
Various groups in the adverting industry also favor self-regulation. 2 major groups do what?
The two major national organizations, the American Association of Advertising Agencies (AAAA) and the American Advertising Federation (AAF), actively monitor and police industrywide advertising practices.
What does the AAAA do?
The AAAA is the major trade association of the ad agency business in the US ad has established standards of practice and its own creative code. Also issues guidelines for specific types of adv. (comparative messages).
What does the AAF do?
The AAF consists of advertisers, agencies, media, and numerous advertising clubs. AAF has standards for truthful/responsible advertising and is involved in advertising legislation. Actively influences agencies to abide by its code and principles.
The four major television networks have the most stringent review process of any media. (explain)
All four networks maintain standards and practices divisions, which carefully review all commercials submitted to network or individual affiliate stations. Advertisers must submit for review all commercials intended for airing on network or affiliate.
-A very frustrating, often expensive, scenario for both an agency and its client occurs when _____
a commercial is approved at storyboard stage and then is rejected after it is produced. Reasons include: violence, morbid humor, sex, politics, and religion.
-The four major networks receive nearly 50,000 commercials a year for review (rejection rate)
nearly two-thirds are accepted, and only 3% are rejected
3 major participants in advertising process:
(advertisers, agencies, and media) work individually and collectively to encourage truthful, ethical, and responsible advertising.
what is the most basic federal law governing advertising in the United States.
Freedom of speech or expression, as defined by the First Amendment to the US Constitution
For many years, freedom of speech protection didn’t include advertising and other forms of speech that promote a commercial transaction. The courts have extended First Amendment protection to commercial speech (speech that promotes a commercial transaction).
Trade regulation rules (TRRs)
industrywide rules that define unfair practices before they occur. (established by the FTC)
legally defined as “advertising or other sales presentations which praise the item to be sold with subjective opinions, superlatives or exaggerations, vaguely and generally, stating no specific facts”
the FTC may require advertisers to include certain types of information in their ads so that consumers will be aware of all the consequences, conditions, and limitations associated with the use of a product or service
Consent and cease-and-desist orders :
Allegations of unfair or deceptive advertising come to the FTC’s attention from a variety of sources, including competitors, consumers, other government agencies, or the commission’s own monitoring and investigations.
an agreement to stop the practice/advertising in question. (For settlement purposes only and doesn’t constitute an admission of guilt by advertiser. Most FTC inquiries are settled by consent orders b/c they save advertiser cost and possible adverse publicity that might result if case went further.)
requires that the advertiser stop the specified advertising claim w/in 30 days and prohibits advertiser from engaging in the objectionable practice until after the hearing is held. (Violation is punishable by fine up to $10,000 a day)
A particular action may be w/in the law and still not be ethical.
A good example involves target marketing. No laws restrict tobacco companies from targeting advertising and promotion for new brands to African Americans. However, given the high levels of lung cancer and smoking-related illnesses among the black population, many people would consider than an unethical business practice. Same in regards to ads targeting children.
critics charge that advertising to children is unfair and deceptive and should be banned/severely restricted. why?
lack the expertise and knowledge to understand and critically evaluate the purpose of persuasive advertising appeals.
preschool children can’t differentiate between commercials and programs, don’t perceive selling intent of commercials, and can’t distinguish between reality and fantasy.
children must understand how advertising works in order to use their cognitive defenses against it effectively.
How can companies advertise to children freely and avoid potential conflict w/ those who believe children should be protected from advertising/forms of promotion?
being sensitive to the naiveté of children as consumers
stresses hard work and individual effort and initiative and views the accumulation of material possessions as evidence of success.
information advertising versus persuasive
Many critics view information advertising (reports price, performance, and other objective criteria) as desirable but persuasive advertising (plays on consumers’ emotions, anxieties, and psychological needs and desires such as status, self-esteem, and attractiveness) as unacceptable. Persuasive advertising is criticized for fostering discontent among consumers and encouraging them to purchase products/services to solve deeper problems.
Defenders of advertising also take issue w/ the argument that it should be limited to dealing w/ basic functional needs.
In our society, most lower-level needs (Maslow’s hierarchy) such as the need for food, clothing, and shelter, are satisfied for most people. It’s natural to move from basic needs to higher-order ones (self-esteem and status or self-actualization). Consumers are free to choose degree to which they attempt to satisfy their desires, and wise advertisers associate their products/services w/ satisfaction of higher-order needs.
Portrayals of adult women in American television and print advertising have emphasized _____ in contrast men have been portrayed as _____
passivity, deference, lack of intelligence and credibility, and punishment for high levels of effort.
constructive, powerful, autonomous, and achieving.
Research on gender stereotyping in advertising targeted to children has found a pattern of results similar to that reported for adults.
A study found sex-role stereotyping in television advertising targeted children in the US as well as in Australia.
Boys are generally shown as being more knowledgeable, active, aggressive and instrumental than girls.