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Ch. 12 Advertising

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Brittany Chavez

on 9 May 2013

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Transcript of Ch. 12 Advertising

4 Categories

1. Percentage of Sales: determine a fixed percentage of sales or revenue to use as the basis for advertising allocations.

2. Competitive Parity: This is common in industries with large amounts of trade data. The organization considers competitors when determining the budget.

3. All You Can Afford: This involves first allocating the budget to all important operations then if money is left over using it for advertsing.

4. Objective and Task: This invloves setting objectives and determining the task neccassry to accomplish the object along the hierarchy of effects. What is Advertising? Direct Marketing Classifications of Advertising Conclusion: Conclusion: Nonprofit concerns: Ethics in advertising: Agency Compensation: Alternative Advertising agencies: Working with Advertising Agencies: Integrated Advertising Campaigns: Twitter: Podcast: Facebook: Blogging : The Web 2.0 and Social Media: Internet : Direct Marketing: Print : Broadcast: Evaluate the Response: Internet Advertising Direct Marketing Outdoor advertising Magazines Newspaper Radio Companies can use Concentration or Pulsing as alternative scheduling patterns.
Concentration is when a company spends its advertisement dollars and achieves exposure within a defined, relatively short time period.
Pulsing approach in which advertising expenditures occur at a constant level with occupational , short, heavy expenditures. Two objects often conflict within the constraints of any advertising budget.
Reach refers to the unduplicated audience that an advertising vehicle will deliver .
Frequency refers to the number of times the same person receives a message within a defined time period.
Companies are always trying to maximize both of these , yet to do brings significant cost.
Companies also look at waste, who are the people that are reached through the medium but are not the intended target market. Objective and task: All you can afford: Competitive Parity: Percentage of Sales: Determine the Budget Adoption Trail Evaluation: Interest Determine the Advertising Objectives Define the Target Audience: Developing the Advertising Campaign: Institutional Advertisement:

Product Advertisement: Common Classifications of Advertisement Intro: Of all media this has the ability to transmit sight , sound and motion.
Today almost 98% of all homes in US have TV.
Yet, the cost is a disadvantage, Prime time spots can be up to $100,000.
The production costs are another disadvantage as well as finding the right channel as a vehicle can be very difficult and the right time .
Last disadvantage is that there's many advertising that goes on in a commercial that the advertisers needs to stand out. Television Advertiser have different varieties of media, each of which have distinct characteristics that must be assessed in the final advertising plan.
Television
Radio
Newspaper
Magazines
Outdoor advertising
Direct Marketing
Internet Advertising Picking the Right Medium: Monday Night Football has a rating of 4.3 and the advertiser purchased 14 intersection spots during the season. The number of gross rating points would then be 14x4.3=60.2 and a cost of schedule of $13,000.
Cost-Per Point (CPP)= $13,000 = $215.95
60.2
In buying advertising ,advertiser often use this formula to make comparisons, yet the advertiser must take caution when comparing to different locations.
Example: Salt Lake City Vs. New York City. Calculating the Gross Rating Points and CPP Formula Cost-Per Point (CPP)= Cost of Schedule
Gross Rating Points
In considering the cost for TV, advertiser may use this formula .
The cost index in this medium is based on the audience that it is delivered, or the rate.
Gross rating points are used to measure advertising reach calculated by multiplying the number of spots or ads times the rate. The Cost-Per Point (CPP) Formula : CPM= Cost of the Advertisment x 1000
Circulation
This formula measures the cost of a medium to deliver an audience.
Circulation is the number of people reached by the magazine or the newspaper.
With this the advertiser can compare the cost of advertising with different magazines. Cost-Per Thousand (CPM ) Formula: When choosing which medium to use, advertisers select the most effective vehicle.
Advertiser use formulas to determine which medium to consider.
These are :
Cost-Per Thousand Formula
Cost-Per Point Formula Selecting the Most Cost-Effective Approach This type of scheduling involves heavy amounts of advertising for short period of time.
Flighting has distinct periods where there are large number of exposures.
Its flaw is that companies may lose product awareness between gaps before the next big expendinture. Flighting This schedule involves maintaining the same level of exposure through selected time period.
Example: Physicians referral lines are sponsored by hospitals. People might need to avail this service on any given day. Steady: Some product and services are more highly requested at certain time periods then others.
Example :
Cold medicine in the winter.
Travel clinic in the summer. Seasonal: After the company have determined the balance between reach and frequency , it must know deal with timing fro its messages.
The top three most common timings are:
Seasonal
Steady
Flighting Scheduling : Once the advertisement message is developed and pretested, next comes the selection of the perfect medium and vehicle for delivering the message to the target audience.
Medium refers to the form of communication selected.
Vehicle is the advertisement alternative chosen within each medium.
Example: An advertiser may pick Magazine as its medium and Modern Healthcare magazine as the vehicle. Specify the Communication Program: a Commercial is displayed to physicians and on staff or in the medical group to get approval.
The advertisement must also pretested with target audience of intended consumers. In health care: The most expensive and elaborate form of pretesting.
Example: Consumers are invited to a special viewing of a new movie or a new TV show. They see advertisement displayed through it and then asked to rate the show and provide reactions to the advertisement they see. They record the intensity to which the consumer like or disliked it. Theater Tests: In this version of a pretest , advertisement or variations are shown to a panel of consumers.
Just like in portfolio test, the consumers are asked several dimensions . Jury Tests: This type of pretesting involves testing an alternative copy.
They place it among a group with other sample advertisement.
Consumers are asked to review all samples and then to judge on a series of dimensions such as:
interest
attention
likability
informative value
Example: Fallon Health Plan in Worcester, Massachusetts. Portfolio Tests: Any good advertising should be pretested. Pretesting involves assessing advertising copy options before their general use.
To have an effective pretest, should be conducted with intended target audience.
Focused groups are used to see if the advertisement served its purpose. They usually answer these questions:
interpret the advertisement
Is interested in it
Prefer it over other versions
Other Forms of pretest include: Portfolio Test, Jury Tests and Theater Tests. Pretesting Focus on cause or issues.
Hospitals usually mount advertising campaigns to solicit funding for medical foundation research.
Example: Red cross with blood donations Moral/Social Appeals The most common form used of advertising appeal.
Fear and humor most common.
Fear has had some troubling ethical dilemmas.
Example: Alliance for Health Care Strategy and Marketing developed a set of ethical guidelines for advertisers.
It stated that advertisers should not use emotional appeals to take advantage of individual who are vulnerable due to health care needs. Emotional: This message is directed at distinct functional attributes of the product.
It aims at explaining the value of using this particular service. Rational : This is the third step in designing the advertising program.
Marketing research is essential at this to stage to determine the attributes that are important to the consumer .
Varying appeals include:
Rational
Emotional
Moral/Social Appeals: Develop the Message Adoption Awareness: By :
Jackquisha Henderson
Brittany Chavez
Iliana Lopez Ch. 12 Advertising Evaluate the response
After selecting the media and placing advertisements, most organizations conduct tests to determine the effectiveness of the marketing campaign

The tests can vary and are based on the media used for advertising. Broadcast A common form of post testing for television or radio is day-after recall. Print In a magazine industry posttest scores are often collected through a syndicated data service referred to as Starch. Customer response can be directly measured through follow-up inquiries or purchase orders. Internet It can easily be tracked with click-through to determine how deeply someone is looking at the web page or by counting how often the page is viewed. The web 2.0 and social media The Web 2.0 and Social Media •Blogging- in some way blogging is like keeping a personal diary online.
o Facts: the # of blogs grew from 8 million in 2005 to 133 million in 2008.
o It is known that blogs are consistently one of the top viewed web pages.
•Facebook- is a social networking website
o Individuals use the site to connect to friends /relatives and companies use it for marketing purposes
•Twitter- allows people to send messages fewer than 140 characters in length

The use of twiiter in the healthcare includes, fund-raising, census management , recruitement of health care staff ,hospital reputation monitor and many more Advertisement Agencies Advertising agencies vary in size and in the scope of the functions that they perform.
Alternative advertising agencies:
Full service agencies- provides all the elements necessary to assume the total advertising function. They usually offer sales promotion, public relations, direct marketing , consulting on design and identification and even television programming.
Boutique agencies:
offer limited ranges of services such as creative services or media buying services, or will act as a contractor to put together the range of services needed by the organization. conclusion Advertisement is an important ingredient of any health care organization promotional strategy.

Developing an effective media plan begins with a specification of its objectives.

Any effective advertising requires that there be a mechanism both to pretest and posttest the campaign. Chapter 12 Advertising Brittany Chavez
Jackquisha Henderson
Iliana Lopez Print Portfolio Tests: Jury Tests: After the company have determined the balance between reach and frequency , it must know deal with timing from its messages.
The top three most common timings are:
Seasonal
Steady
Flighting Two objects often conflict within the constraints of any advertising budget.
Reach refers to the unduplicated audience that an advertising vehicle will deliver .
Frequency refers to the number of times the same person receives a message within a defined time period.
Companies are always trying to maximize both of these , yet to do so brings significant cost.
Companies also look at waste, who are the people that are reached through the medium but are not the intended target market. Companies can use Concentration or Pulsing as alternative scheduling patterns.
Concentration is when a company spends its advertisement dollars and achieves exposure within a defined, relatively short time period.
Pulsing approach in which advertising expenditures occur at a constant level with occupational , short, heavy expenditures. n Moral/Social Appeals 3. Moral/ Social Appeals: messages that focus on causes and issues.

Hospitals usually mount advertising campaigns to solicit funding for medical foundation research.
Example: Red cross with blood donations . Pretesting: Pretesting involves assessing advertising copy options before their general use.
To have an effective pretest, advertisers should conduct with intended target audience.
Focused groups are used to see if the advertisement served its purpose. They usually answer these questions:
interpret the advertisement
Is interested in it
Prefer it over other versions This pretesting involves testing an alternative copy.

They place the advertisement among a group with other sample advertisement.

Consumers are asked to review all samples and then to judge on a series of dimensions such as:
interest
attention
likability
informative value


Example: Fallon Health Plan in Worcester, Massachusetts. In this version of a pretest , advertisement or variations are shown to a panel of consumers.
Just like in portfolio test, the consumers are asked several dimensions . Theater Tests: Specify the Communication Program: Once the advertisement message is developed and pretested, next comes the selection of the perfect medium and vehicle.
Medium refers to the form of communication selected.
Vehicle is the advertisement alternative chosen within each medium.
Example: An advertiser may pick Magazine as its medium and Modern Healthcare magazine as the vehicle. Scheduling : Seasonal: Some product and services are more highly requested at certain time periods then others.
Example :
Cold medicine in the winter.
Travel clinic in the summer. Steady: This schedule involves maintaining the same level of exposure through selected time period.
Example: Physicians referral lines are sponsored by hospitals. People might need to avail this service on any given day. Flighting This type of scheduling involves heavy amounts of advertising for short period of time.
Flighting has distinct periods where there are large number of exposures.
Its flaw is that companies may lose product awareness between gaps before the next big expenditure.
Companies can use Concentration or Pulsing as alternative scheduling patterns. The Cost-Per Point (CPP) Formula : Cost-Per Point (CPP)= Cost of Schedule /Gross Rating Points
In considering the cost for TV, advertiser may use this formula .
The cost index in this medium is based on the audience that it is delivered, or the rate.
Gross rating points are used to measure advertising reach calculated by multiplying the number of spots or ads times the rate. Selecting the Most Cost-Effective Approach When choosing which medium to use, advertisers select the most effective vehicle.
Advertiser use formulas to determine which medium to consider.
These are :
Cost-Per Thousand Formula
Cost-Per Point Formula Cost-Per Thousand (CPM ) Formula: CPM= Cost of the Advertisement x 1000 /
Circulation
This formula measures the cost of a medium to deliver an audience.
Circulation is the number of people reached by the magazine or the newspaper.
With this the advertiser can compare the cost of advertising with different magazines. Calculating the Gross Rating
Points and CPP Formula Monday Night Football has a rating of 4.3 and the advertiser purchased 14 intersection spots during the season.
The number of gross rating points would then be 14x4.3=60.2 and a cost of schedule of $13,000.
Cost-Per Point (CPP)= $13,000/60.2 = $215.95 Picking the Right Medium: Advertiser have different varieties of media, each of which have distinct characteristics that must be assessed in the final advertising plan.


Television
Radio
Newspaper
Magazines
Outdoor advertising
Direct Marketing
Internet Advertising Radio : This is the most expensive and elaborate form of pretesting.

Example: Consumers are invited to a special viewing of a new movie or a new TV show. They see advertisement displayed through it and then asked to rate the show and provide reactions to the advertisement they see. They record the intensity to which the consumer like or disliked it. Television Advertising can be defined as any directly paid form of nonpersonal presentation of goods, services, or ideas by an identified sponser.

KEY ASPECTS
1. That it is paid; which distinguishes advertising from publicity
2. That it is nonpersonal; which sparates advertising from personal selling. There are 10 times more radio stations as there are television stations.
Wide array of formats and programs make it a highly medium.
Cost basis for radio is cheaper then that of TV.
Reaches consumers out of it homes.
Disadvantage is that it lacks visual communication.
A advertiser has to many options.
Advertisers must accurately attract its particular target audience. Two Most Common
1. Product Advertising; focuses on a particular product or service.
-Informational Form; these advertisements help to explain the service, how it can be accessed, or its objectives.
-Competitive Form; are more persuasive, they generate selective demand for the organization's service over the competitors.
-Reminder Form; Example would be hospitals that have nurse implemented information hotlines providing callers with health care providers to call for further examination or treatment. 2. Institutional Advertising; builds up or enhances an organizations image rather than just the product.
- Mostly used in healthcare to promote and build good will and enhance the publics view of the organization.
- It can be very competitive like Product Advertisement, but serves more as a reminder to reinforce the impressions of the target audience.
- Advocacy Form; where an organization publicizes its position regarding a particular issue. Of all media this has the ability to transmit sight , sound and motion.
Today almost 98% of all homes in US have TV.
Yet, the cost is a disadvantage, Prime time spots can be up to $100,000.
The production costs are another disadvantage as well as finding the right channel as a vehicle can be very difficult and the right time .
Last disadvantage is that there's many advertising that goes on in a commercial that the advertisers needs to stand out. Of all media available it receives the most advertising dollars.
Most Health care organizations use this media because it’s coverage is local markets.
Cost is way cheaper compared to TV media .
The wait time for an advertiser is relatively short, for them to see their advertisement printed .
Have zone and demographic editions.
Disadvantage is that older populations are the primary consumer. Newspaper Magazines : Have couple of variations:
Billboards
Transit advertisement
Usually viewed as supplemental medium to support exposure in other medium .
Is like a reminder appeal or introduction stage of a service to generate brand name or service recognition.
Used to generate referral lines or health information lines.
Disadvantage is that it is considered to be visual pollution.
States like Alaska, Hawaii ,Maine & Vermont have banned outdoor billboards.
There is fewer constraints in public transportation. Outdoor Advertising: Direct Marketing Is one of the most targeted media choices available.
Computer sophistication have made personalized appeal to recipient easy,
Companies prior to use this medium must :
1. make a refined list of customers or prospects.
Use database marketing to make detailed profiles.
or
2.Purchase a list of prospects from a commercial list broker. Internet Advertising This medium gives advertiser new and exciting ways to advertise.
It allows advertisers:
track the number of users who have viewed their site.
How many times their site has been viewed.
How deeply the site was viewed by a visitor.
The most common internet advertising are:
Banner ads
Button ads
Pop-up ads
E-mail Develope the Message This is the third step in designing the advertsing program, and marketing research is essental at this stage to determine the attributions that are important to customers.

1. Rational: messages that are direct at distinct functional attributes of the product. This is to explain the value in using the product.

2. Emtional: most used are fear and humor.
Example: Alliance for Health Care Strategy and Marketing developed a set of ethical guidelines for advertisers.It stated that advertisers should not use emotional appeals to take advantage of individual who are vulnerable due to health care needs. Develope a Advertising Campaign 1. Define the Target Audience
- The group the organization or sponsors are trying to reach.
2. Determine the Advertising Objective
-This is critical to the success of the campaign.
-Steps include; Awareness, Interest, Evaluation, Trial, and Adoption Determine a Budget Recent dramatically grown in years.
Allow organizations to target specific market segment.
Like newspapers they to have theirs zone and demographic editions.
Have long shelf lives.
Disadvantage is that their is a sheer number of magazine make it more difficult to select the specific publications in which to advertise.
Require 4 to 6 week lead time for placement prior of publication .
In buying advertising ,advertiser often use this formula to make comparisons, yet the advertiser must take caution when comparing to different locations.
Example: Salt Lake City Vs. New York City.
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