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Advertising

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Prepared for Marketing 106

Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Why Do We Do Advertising
Personal Selling is preferred, because it is so effective - but, it is expensive sometimes to contact EVERYBODY this way Advertising is not as direct as Personal Selling, but you can reach a lot of people

Prepared for Marketing 106

Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Advertising in Canada has to be International


Our Canadian market is very multi-cultural
Advertising in Canada has to acknowledge the international aspects in order to be successful

A large part of the market in Toronto is NOT from the U.K. so we have to have advertising that can be understood by other people

Prepared for Marketing 106

Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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The Top 10 Advertisers in Canada


Rank Name Revenue (thousands of dollars)

1 2

General Motors of Canada Procter & Gamble

113 048.4 84 499.5

3
4 5 6 7 8 9 10

The Thomson Group


BCE John Labatt Ltd. Eatons of Canada Sears Canada Government of Canada The Molson Companies Chrysler Canada
Prepared for Marketing 106

70 159.3
53 972.9 50 036.0 47 135.9 46 582.1 43 928.7 42 873.6 41 171.5 1993 stats
Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Prepared for Marketing 106

Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Advertising Objectives are a Strategy Decision


Every ad should have clearly defined objectives

these objectives guide the people who create the ads

Prepared for Marketing 106

Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Product Advertising
Nonpersonal selling of a particular good or service. - TV ads - billboards

- junk mail
Page 518
Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Institutional Advertising
Also called Advocacy advertising

See slide # 16
Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Pioneering Advertising, also called Informative


tries to develop primary demand Done in the early stage of the Product Life Cycle.

Competitive Advertising Direct Indirect

Prepared for Marketing 106

Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Competitive Advertising Direct


Tries to get you to take action now - buy the product now. Immediate Buying

Indirect
Tries to point out the advantages so if you think about this product later, you will buy their brand

Prepared for Marketing 106

Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Comparative Advertising
Advertising that makes direct comparisons with competitive brands.
Companies used to hesitate to do this, but now they do it freely.

Sometimes it can backfire and cause the viewer to NOT want to buy the product - if the comparison is too harsh eg. Political advertising that is too nasty
Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Comparative Advertising
Some countries do not allow Comparative Advertising.

Other countries allow it,,, but,, you have to prove any statements you make

Prepared for Marketing 106

Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Reminder Advertising
Done in the Maturity and Decline stage of the Product Life Cycle. You already know about the product - they want you to keep using it, even if new competitors come along.

These ads are usually soft-sell and try to be entertaining. Page 521
Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Relationship between Advertising and the Product Life Cycle

Competitive

Comparative

Pioneering Prepared for Marketing 106

Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Institutional Advertising
Promoting a concept, idea, or philosophy, or the goodwill of an industry, company, or organization. This is closely related to the PR program of the company
Also called Advocacy advertising
Prepared for Marketing 106

Page 521

Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Institutional Advertising
Used often by Japanese conglomerates that have many types of products
eg.

Hitachi SONY Mitsubishi Panasonic (Matsushita Electronics) Page 521


Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Retail Advertising
Retail advertising is the advertising done by stores that sell stuff directly to the consumers.

Co-operative Advertising
The sharing of advertising costs between the middlemen and retailer and the manufacturer. This means they will co-operate to display sales promotion material and share the costs of commercials and billboards etc.
Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Page 523 8th edition Page 444 9th edition


Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Prepared for Marketing 106

Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Before we talk about choosing the best way to advertise, we first have to discuss our Position

Prepared for Marketing 106

Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Positioning
Remember Chpt 3

Positioning involves developing a marketing strategy aimed at a particular market segment - in order to achieve a desired position with respect to the competition, in the mind of the buyer. ie. That buyers will think a certain way about a product - re: its competitor
Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Positioning
1. By attributes - shampoo (Pantene Pro V)

2. By price - Zellers lowest price is the law


3. By competitor- Snapple, Were #3

4. By application - Nutrigrain - until we get


beamed to work!

5. By product user - consumer,


specialty goods Prepared for Marketing 106

industry, govt

6. By product class - convenience, shopping,


Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Media Selection
Newspapers

Magazines Television Radio Direct Mail Outdoor


Prepared for Marketing 106

? - in which category is the most money spent

Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Media Selection
Newspapers - largest share of advertising, 26%

Magazines - 12% Television - 2nd major category, 14% Radio - 7% Direct Mail Outdoor, billboards etc. - 6%
Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College

Advantages and Disadvantages of the Various Advertising Media


Media
Newspapers

Advantages
Flexibility Community prestige Intense coverage Reader control of exposure Co-ordination with national advertising Merchandising service Selectivity Quality reproduction Long life Prestige associated with some magazines Extra services Great impact Mass Coverage Repetition Flexibility Prestige

Disadvantages
Short lifespan Hasty reading Poor reproduction

Magazines

Lack of flexibility

Television

Temporary nature of message High cost High mortality rate for commercials Evidence of public distrust Lack of selectivity

Advantages and Disadvantages of the Various Advertising Media

Media Radio

Advantages Immediacy Low cost Practical audience selection Mobility Quick communication of simple ideas Repetition Ability to promote products available for sale nearby Selectivity Intense coverage Speed Flexibility of format Complete information Personalization

Disadvantages Fragmentation Temporary nature of message Little research information Brevity of the message Public concern over aesthetics

Outdoor Advertising

Direct Mail

High cost per person Dependence on quality of mailing list Consumer resistance

Advertising

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Page 528
Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Prepared for Marketing 106

Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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To produce, then additional money to get air time


Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Planning The Best Message


What should an ad accomplish 1. Gain attention and interest

2. Inform and persuade


3. Lead to the person buying

Page531
Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Planning The Best Message


Copy Thrust

the words you say to get the attention


1. Copy - the text

2. Thrust - the intention, direction


Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Planning The Best Message


A I D A
A - Attention I - Interest D - Desire A - Action
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Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Direct Response Ads


Call 1-800-. See our web site at WWW.STUFF.COM

Prepared for Marketing 106

Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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The Advertising Campaign


When developing a mktg comms strategy, you do not restrict your plan to just advertising Many things are also done such as direct mailing, PR, special events, radio, media

Prepared for Marketing 106

Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Assessing the Effectiveness of an Advertisement


Pretesting
The assessment of an advertisements effectiveness before it is actually used.

Post-testing
The assessment of advertising copy after is has been used.

Prepared for Marketing 106

Copyright, Professor W.T.G. Richardson, Seneca College

Page 387

Advertising

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Advertising Agency
A marketing specialist firm that assists the advertiser in planning and preparing its advertisements. They have specialists who know all about the effect of different advertising methods and can help a company with their strategy.

Page 535
Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Celebrity Marketing

Having celebrities lend their name and influence to the promotion of a product.

Prepared for Marketing 106

Copyright, Professor W.T.G. Richardson, Seneca College

Advertising

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Role Model Marketing


Marketing technique that associates a product with the positive perception of a type of individual or role. (ie. Naya water with healthy lifeguards) Sometimes used by companies who cannot afford to pay a celebrity.
Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College

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