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Marketing - Chapter 19 - Advertising

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Kevin Krizan

on 9 March 2016

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Transcript of Marketing - Chapter 19 - Advertising

Marketing - Chapter 19
Advertising

Advertising
- non personal promotion which promotes ideas, goods, or services by using a variety of media
(3000 ads per day for average city dweller)

Promotional advertising - advertising designed to increase sales

Institutional advertising - advertising designed to create a favorable image
Volkswagen - Promotional
Advertising
BP - Institutional Advertising
mass advertising - advertising to reach large numbers of people with their messages (TV, radio)
target advertising - carefully select audiences (easier because of technology)
Types of Media
1. Print
2. Broadcast
3. Internet
4. Specialty
Print Media
- includes advertising in newspapers, magazines, direct mail, signs, and billboards
Oldest form of advertising
Daily and Weekly Newspapers
More than 1600 paid circulation daily newspapers and several thousand local weekly papers (Posey County Times; Courier Press)
Market changing dramatically due to technology
Shoppers
- minimal editorial content;
many ads
National Newspapers
- distributed
throughout country; USA Today
and Wall St. Journal
Advantages of Newspapers:
Distribution is known (circulation); Responses are easily tracked; Cost is low compared to other print media
Disadvantages of Newspapers:
Some papers sold outside business's target market; Limited shelf life; Less visually appealing than other print media; Newspaper circulation continues to decline
Magazine Advertising
More than 19,000 magazine
Published as weeklies, monthlies, and quarterlies
Many also have online versions
Consumer Magazines
- developed for personal pleasure or interest
excellent target markets
Business-to-Business Magazines
(trade publications) - for professionals is specific fields
Advertising Age, Mass Market Retailers
Advantages of Magazines
Longer life spans than newspapers; Read more
slowly than newspapers; Better quality print than newspapers; Variety of presentation formats
Disadvantages of Magazines
Cost is higher than newspapers; Not as timely as newspapers;
Direct-Mail Advertising
Highly focused form of adverting
Two forms - printed (US Mail) and electronic (emails)
Many forms of printed direct-mail: catalogs, newsletters, coupons, samplers, price lists
Advantages:
Highly selective; Wide choice of formats
Disadvantages:
Low response rate (1-3%); Image problem (junk mail)
Directory Advertising
Telephone directory
White Pages - businesses and residents receive a free alphabetical listing of their phone numbers and addresses
Yellow Pages - businesses play for an alphabetical listing and a display ad
Advantages:
Inexpensive; 99% adults are familiar with Yellow Pages; Kept at least one year
Disadvantages:
Can't change information until new directory printed
Outdoor Advertising
Non-standardized signs - are used by companies at their places of business or in other locations
Standardized Outdoor signs (billboards) - standard outdoor signs purchased from advertising companies (changed every 3 months to a year)
Miele Vacuum Cleaner Billboard
Formula Toothcare Billboard
Zhangbei Fitness Billboard
BMW Billboard
Nestle Billboard
Transit Advertising - advertisement seen on public transportation (buses, taxis, trains, public benches
Broadcast media
- radio and TV advertisements
Television Advertising
Most ads seen on either:
major network - ABC, CBS, NBC, FOX
cable television (11,600 local cable systems)
Most TV ads are 30 or 60 second spots
Combines sight, sound, action, and color (ultimate mass advertising medium)
Businesses can target message to specific audiences with cable TV (sports, music, history)
Local TV advertising can be used to target specific geographic areas
Disadvantages - highest production costs (average $400,000); High cost to for time purchased (30 second ad for Super Bowl - $3,000,000)
Radio Advertising
Timely medium (updated quickly and easily)
Over 10,000 AM and FM radio stations (reach over 96% population)
Carefully target audiences with the type of station
Presented in 10, 20, 30, or 60 second time periods
Disadvantages - can't be seen and have short life span
Internet Advertising
Involves the World Wide Web or email
Growing rapidly
Email Ads - electronic direct-mail adverting sent via email
Banner Ads - come in various shapes and sizes, but usually as a rectangle at top, bottom or side of a web page
Search engine ads - appear while using a search engine such as Google or Bing (Ex. Google's Ad Words)
Social Media Advertising - invite consumers to interact with their products (special business club, extended videos, contests, and many other ideas)
Specialty Media (Sales Promotions)- inexpensive useful products that are imprinted with he company's name, message or logo (pens, shirts, etc.)
Other Advertising Media:
TV screens at various locations
(airports, subways)
Digital billboards at sports arenas
On-screen movie theater ads
Messages in elevators, bathrooms, airplanes (along beaches)
In-Store Advertising:
Retailers are using in-store advertising more and more (electronic shelf ads, cart displays, coupon machines)
New Media:
Improved ways to access the Internet continue to provide marketers with creative advertising opportunities
Media Planning - process of selecting the appropriate advertising media and deciding the time or space in which ads should appear to accomplish objective
Media Measurement
:
Audience - number of homes or people exposed to an ad
Frequency - number of times an audience sees or hears an advertisement
Impression - a single exposure to an advertising message
Cost per thousand (CPM) - cost of exposing 1,000 readers or viewers to an advertising impression

TV research - AC Nielsen; Radio research - Arbitron
Media Rates
Newspaper Rates
1. Classified Ads - grouped or (classified) into specific categories (help wanted; auto sales)
2. Display Ads - enable the advertiser to depicted the product or service being advertised
Factors that Affect Rates
type of ad
size
day of the week
section or lift-out
page position within a section
color VS black and white
annual spend/expenditure commitment
Newspaper advertising rates quoted by column inch
Multiply the number of columns by the number of inches, then multiply the total column inches by the rate.
3 columns x 2 inches x $20 = $120
Magazine Rates
Based on circulation
Type of readership
Production techniques
Bleed
- means that half or full-page ads are printed to the very edge of the page leaving no white border (up to 20% extra)
Premium position - refers to ad placement (back cover or inside of the first page (most expensive)
Magazine Circulation Rates - Contest???
Internet Rates
Rates are based on the type of advertising
Rates based on the volume of monthly page views

Radio Rates
Network radio advertising - message played nationally (ex. ABC Radio Stations)
National spot radio advertising - message strategically placed in certain regions
Local radio advertising - used locally by local merchants on local channels

Time Slots (most -to- least expensive)
Class AA: Morning drive time - 6:00 am - 10:00 am
Class A: Evening drive time - 4:00 pm - 7:00 pm
Class B: Home worker time - 10:00 am - 4:00 pm
Class C: Evening time - 7:00 pm - midnight
Class D: Nighttime - midnight - 6:00 am
Television Rates (vary with time of day)
Prime time 7:00 pm - 10:00 pm

Top 10 Highest-Priced Programs (2014-15)

1. Sunday Night Football – $545,142 – (NBC)
2. American Idol Wednesday – $340,825 – (FOX)
3. Modern Family – $330,908 – (ABC)
4. New Girl – $320,940 – (FOX)
5. American Idol Thursday – $296,062 – (FOX)
6. The Simpsons – $286,131 – (FOX)
7. Family Guy – $276,690 – (FOX)
8. Big Bang Theory – $275,573 – (CBS)
9. 2 Broke Girls – $269,235 – (CBS)
10. Two & Half Men – $247,261 – (CBS
Promotional Budget Methods
Percentage of Sales - based on past or anticipated sales
All You Can Afford - uses all funds after paying for expenses
Following the Competition - business matches its competitor's ad budget
Objective and Task - determines the cost for promotional activities to meet company goals
Full transcript