Chapter 16 - Chapter 16 Advertising, Publicity, Sales...

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Chapter 16 Advertising, Publicity, Sales Promotion, and Marketing Strategy Planning The results that marketers actually achieve with advertising, publicity, and sales promotion are actually uneven Publicity involves unpaid media The basic strategy planning decisions for advertising, publicity, and sales promotion are the same regardless of where in the world the target market is located. o However, the choices available to a marketing manager within each of the decision areas may also vary dramatically from one country to another The trust consumers place in publicity and online sources of information differ across countries As firms rely more on the Internet to get their messages out to wider audiences, they need to consider cultural differences Advertising is Big Business By 2010, advertising costs more than $200 billion Over the last decade, the rate of advertising spending has increased even more rapidly in other countries Advertising in the US accounts for about 30% The biggest marketers are investing ad dollars wherever they can find revenue or potential for growth—and increasingly, that’s China, not the US While total spending on advertising seems high, US corporations spend an average of only about 2.5% of their sales dollars on advertising o Worldwide, the % is even smaller o In general, the % is smaller for retailers and wholesales than for producers While total advertising expenditures are large, the advertising industry itself employs relatively few people, o The major expense is for media time and space Advertising Objectives Are a Strategy Decision Advertising objectives should be more specific than personal selling objectives Each ad must be effective not just for one customer, but for thousands and millions of them If a MM really wants specific results, they should be clearly stated Objectives Determine The Kinds of Advertising Needed Two basic types of advertising o Product Advertising tries to sell a product o Institutional Advertising promotes an organization’s image, reputation or ideas rather than a specific product Pioneer Advertising tries to develop primary demand for a product category rather than demand for a specific brand
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o Usually done in the early stages of the product life cycle; it informs potential customers about the new product and helps turn them into adopters Competitive Advertising tries to develop selective demand for a specific brand o A product is forced into competitive advertising as the product life cycle moves along—to hold its own against competitors o Could be direct or indirect Direct aims for immediate buying action Indirect points out product advantages to affect buying decisions Comparative Advertising means making specific brand comparisons—using actual product names o In the US, the FTC decided to encourage comparative ads because it thought they would increase competition and provide consumers with more useful information
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Chapter 16 - Chapter 16 Advertising, Publicity, Sales...

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