Marketing analysis

1

Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Chapter 13 Support Media

13-2

Other Terms for Support Media

Alternative media

Below-the-line media

Nonmeasured media

Nontraditional media

13-3

Outdoor Advertising

 Factors contributing to its success

 Increase in the number of:

 Women in the work force

 Vehicles on the road

 Ability to remain innovative through technology

 Digital out-of-home media

 Video advertising networks

 Digital billboards

 Ambient advertising

13-4

Alternative Out-of-Home Media

 Aerial advertising

 Outdoor advertising incorporating use of airplanes

pulling banners, skywriting, and blimps

 Not expensive and reaches specific target markets

 Mobile billboards: Devices that carry

advertisements and are mobile

 Costs depend on the area and the mobile board

company’s fees

13-5

In-Store Media

 Reach shoppers at the place where they buy

 Include:

 In-store ads

 Aisle displays

 Store leaflets

 Shopping cart signage

 In-store TV

13-6

Transit Advertising

 Targets people who are exposed to commercial

transportation facilities

 Gained popularity due to:

 Increased number of women in the work force

 Audience segmentation

 People spending more time outdoors

2

13-7

Types of Transit Advertising

 Inside cards

 Placed above the seats and luggage area inside

public transport vehicles

 Outside posters

 Appear on the sides, backs, and/or roofs of buses,

taxis, trains, and subway and trolley cars

 Station, platform, and terminal posters

13-8

Advantages of Outdoor Advertising

Wide coverage of local markets

Frequency and Geographic flexibility

Creativity

Ability to create awareness

Efficiency and effectiveness

Production capabilities

Timeliness

13-9

Disadvantages of Outdoor Advertising

Waste coverage

Limited message capabilities

Wearout

Cost

Measurement problems

Image problems

13-10

Advantages and Disadvantages of

Transit Advertising

Advantages

• Exposure

• Frequency

• Cost

Disadvantages

• Reach

• Mood of the audience

13-11

Sources of Audience Measurement in

Out-of-Home Media Competitive Media Reports

Simmons Market Research Bureau

Point of Purchase Advertising Institute

Outdoor Advertising Association of America

Traffic Audit Bureau

Scarborough

American Public Transportation Association

13-12

Promotional Products Marketing

 Promotional medium or method that uses the

following promotional products

 Ad specialties

 Premiums

 Business gifts

 Awards

 Prizes

 Commemoratives

3

13-13

Specialty Advertising

 Employs imprinted, useful, or decorative products

for:

 Advertising

 Sales Promotion

 Motivational Communication

 Distributed free

13-14

Advantages and Disadvantages of

Promotional Products Marketing

Advantages

 Selectivity

 Flexibility

 Frequency

 Cost

 Goodwill

 High recall

 Supplementing other media

Disadvantages

 Image

 Saturation

 Lead time

 Reach

13-15

Measurement in Promotional Products

Marketing

 Specialty advertising does not have an established

ongoing audience measurement system

 Studies show that:

 Promotional products have a positive impact on

brand image

 Brand impressions and purchase intent improves by

adding promotional products to integrated media

mix

13-16

Yellow Pages Advertising

 Is declining due to increased preference for online

directories

 Yellow Pages are referred to as a directional

medium

 Directional medium: Ads do not create awareness

or demand for products or services but provide the

location

13-17

Advantages and Disadvantages of

Movie Theater Advertising

Advantages

 Exposure

 Emotional attachment

 Cost

 Attention

 Clutter

 Proximity

 Segmentation

 Integration

Disadvantages

 Irritation

 Cost

13-18

Branded Entertainment

 Blends marketing and entertainment through

television, film, music talent, and technology

 Methods

 Product placements: Refers to advertising within

another program

 Product integration: Placement is integrated

throughout the program content and/or script

4

13-19

Methods of Branded Entertainment

 Advertainment: Creation of audio-visual content

to entertain users while advertising products

 Advergames: Online games that are designed to

promote products

 Content sponsorship

 Ad-supported video on demand (VOD)

 Others

13-20

Advantages and Disadvantages of

Branded Entertainment

Advantages

 Exposure

 Frequency

 Support for other media

 Source association

 Cost

 Recall

 Bypassing regulations

 Acceptance and targeting

Disadvantages

 High absolute cost

 Time of exposure

 Limited appeal

 Lack of control

 Public reaction

 Competition

 Negative placements

 Clutter

13-21

Guerrilla Marketing

 Nontraditional method of marketing

 Known as:

 Stealth

 Street

 Buzz

 Ambush

 Viral marketing

13-22

Miscellaneous Other Media

Videogame ads

Parking lot ads

Gas station pump ads

Place-based media

Others

13-23

Advantages and Disadvantages of

Miscellaneous Alternative Media

Advantages

 Awareness and attention

 Cost efficiencies

 Targeting

Disadvantages

 Irritation

 Wearout

1

Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Chapter 14 Direct

Marketing

14-2

Factors that Led to the Growth of Direct

Marketing

Development and expansion of the Postal Service

Consumer credit cards

Changing structure of American society and the market

Technological advances

Changing values and lifestyles

More sophisticated marketing techniques

The industry’s improved image

14-3

Role of Direct Marketing in the IMC

Program

 Combines:

 Advertising and public relations

 Personal selling and sales promotions

 Support media

 Companies decide:

 Program objectives

 Which markets to target and the strategies to use

 How to evaluate the program’s effectiveness

14-4

Direct-Marketing Objectives

To seek a behavioral response

To build an image

To maintain customer satisfaction

To inform and/or educate customers in an attempt to lead to future actions

14-5

Direct-Marketing Approaches

 One-step approach: Medium is used directly to

obtain an order

 Two-step approach: Uses more than one medium

 First effort – Screens potential buyers

 Second effort – Generates the response

14-6

Direct-Marketing Media

Direct Mail Catalogs E-mail

Broadcast Media

TV Spots Infomercials

Home Shopping

Print Media Telemarketing

2

14-7

Direct Mail

 Unsolicited mail

 Advertisers spend substantially on this medium

 Keys to success

 Mailing list: Database from which names are

generated

 Ability to segment markets and offers

 Threat – The Internet

14-8

Catalogs and E-mail

 Catalogs

 Number of catalogs mailed is decreasing

 Available on the Internet for consumer and business- to-business customers

 E-mail: Electronic version of regular mail

 Direct mail on the Internet

 Lower cost and higher effectiveness than traditional direct mail

 Spam: Electronic equivalent of junk mail

14-9

Broadcast media and TV spots

 Broadcast media

 Categories – Television and radio

 Direct-response advertising: Sales response for the offered product is solicited, through the one- or two- step approach

 Support advertising: Supports other forms of advertising

 TV spots

 Short-form programs, include direct-response commercials seen on TV

14-10

Infomercial and Home Shopping

 Infomercial: Long commercial designed for 30-

minute or 1-hour time slot

 Designed to be viewed as a regular TV show

 Effective with a broad demographic base

 Home shopping

 Substantial growth due to toll-free telephone

numbers and widespread use of credit cards

14-11

Print Media and Telemarketing

 Print media

 Difficult to use for direct marketing

 Ads compete with the clutter of other ads

 Space is relatively expensive

 Response rates and profits are low

 Telemarketing: Sales by telephone

 Declined due to its potential for fraud and deception,

and for annoyance

14-12

Direct Selling

 Direct, personal presentation, and sales in consumers’ homes

 Repetitive person-to-person selling – Salesperson visits the buyer’s location to sell frequently purchased products

 Nonrepetitive person-to-person selling – Salesperson visits the buyer’s location to sell infrequently purchased products

 Party plans – Salesperson offers products to groups of people through parties and demonstrations

3

14-13

Sales Strategy (Methods Used to Generate Sales,

Reported as a 2012 of Sales Dollars)

14-14

Evaluating the Effectiveness of Direct

Marketing

 Cost per order (CPO): Evaluates the relative

effectiveness of an ad based on the number of calls

generated

 Customer Lifetime Value (CLTV): Determines

the dollar value associated with a long-term

relationship with a customer

 Helps determine if a customer should be acquired

 Optimizes existing customers’ service levels

14-15

Advantages and Disadvantages of

Direct Marketing

Advantages

• Selective reach

• Segmentation capabilities

• Frequency

• Testing

• Timing

• Personalization

• Costs

• Measures of effectiveness

Disadvantages

• Image factors

• Accuracy

• Content support

• Rising costs

• Do Not Contact lists