CHAPTER 16 1. Nonpersonal promotions and advertising a.

Thousands of organizations rely on nonpersonal promotions, including advertising and public relations, in developing promotional mixes and integrated marketing communications strategies 4. b. Advertising is the most visible form of nonpersonal promotion c. TV commercials are the obvious formats, but advertisements are now seen in venues never considered before, from live performances on stage to electronically beamed messages on cell phones to multimillion-dollar endorsements by movie stars Advertising

industry, company, organization, person, geographical location, or government agency

d. Institutional advertising is a broader concept

than corporate advertising, which refers to nonproduct advertising sponsored by a specific profit-seeking firm e. Institutional advertising is closely linked to public relations function of an enterprise Objectives of advertising a. Advertising serves three main purposes in the business world and society at large: i. It informs ii. It persuades iii. It reminds b. These three objectives can be used by marketers individually or in combination c. Informative advertising

2.

a. Advertising consists of paid nonpersonal

communication through various media with the purpose of informing or persuading members of a particular audience b. It is used by marketers to reach certain groups of people with messages designed to appeal to business firms, not-for-profits, or ultimate consumers

i. Informative advertising seeks to

develop initial demand for a good, service, organization, person, place, idea, or cause ii. It is a common method used in promoting any new market entry, because at the introductory stage the goal is simply to announce availability d. Persuasive advertising

c. 21st century advertising is closely related to

integrated marketing communications (IMC) d. America remains the home of the worlds leading advertisers i. Procter & Gamble, AT&T, Verizon Communications, and General Motors are the top four advertisers, each spending more than $3 billion annually on advertising ii. U.S. advertising spending varies among industries as well as companies; Retail, automotive, and telecommunicationsincluding Internet services and their providers make up the top three industries, spending $10 billion to $18 billion each year iii. Today we are all bombarded with hundreds of ad messages daily, but advertising remains an efficient, inexpensive, and fast way to reach elusive, increasingly segmented consumer market Types of advertising a. There are two broad categories of advertising: product and institutional

i. Persuasive advertising is designed

to increase demand for an existing good, service, organization, person, place, idea, or cause ii. It is a competitive method suited to the growth stage and early maturity stage of the product life cycle e. Reminder advertising

i. Reminder advertising strives to

reinforce previous promotional activity by keeping the name of the good, service, organization, person, place, idea, or cause in the minds of the public ii. Its common in the latter maturity stage and through the decline stage of the product life cycle Traditionally, marketers thought of advertising objectives as direct sales goals today advertising is a way to achieve the communication objectives of informing, persuading, and reminding customers i. Advertising attempts to condition consumers to adopt favorable views toward a promotional message ii. The goal of an advertisement is to improve the likelihood that a

f.

3.

b. Product advertising is nonpersonal selling of

a particular good or service, the type people picture when they think of promotions

c. Institutional advertising promotes a concept,

an idea, a philosophy, or the goodwill of an

5.

6.

consumer will buy the good or service iii. To get the best value for their investment, firms must first determine their advertising objectives iv. Today advertisements are used by marketers for a number of reasons and in a number of situations g. Reasons for using advertisements i. To enhance consumer perceptions ii. To increase customer loyalty iii. To encourage repeat purchases iv. To protect themselves during a price war v. To show their superiority in order to raise prices Advertising strategies a. As noted, effective advertising strategies accomplish at lease one of three tasks: i. Informing ii. Persuading iii. Reminding b. The key in choosing a strategy is to develop a message that best positions a firms product in the mind of the audience c. Todays marketers design campaigns around one or more types of advertising strategies: comparative, celebrity, interactive advertising, retail and cooperative advertising Comparative advertising

b. They have become popular ways to increase advertising readership in a cluttered promotional environment and improve overall effectiveness of a message i. About one of every five U.S. ads currently includes celebrities ii. In Japan, a majority of ads use celebrities, both local and international stars iii. Professional athletes are among the highest-paid endorsers; actors and directors, musicians, and TV personalities are also used in endorsements iv. The number of celebrity ads and the dollars spent on them have increased in recent years c. Advantages of using celebrities:

i. Improved product recognition in a

media environment crammed with hundreds of competing ads and commercials, referred to as clutter ii. Improved recognition in emarketing, as Internet advertising clutter has dramatically increased in a short time iii. Ability to reach consumers of other cultures iv. A celebrity testimonial generally succeeds when the person is a credible source of information for the product being promoted v. The most effective ads establish relevant links between the celebrities and the product or service vi. Appropriately matched celebrities improve the products believability, recall, brand recognition, and brand equity d. Disadvantages of using celebrities: i. A celebrity who endorses too many products may create marketplace confusion ii. If a celebrity is involved in a scandal or has legal problems, response to ads is affected iii. If the promotion itself borders on scandal, the companys reputation is at stake iv. The match between individual and product may be less than perfect e. Some firms have avoided potential personality conflicts by using cartoon characters as endorsers

a. Comparative advertising is a promotional

strategy that emphasizes advertising messages with direct or indirect comparisons to dominant brands in the industry i. Firms whose products are not the leaders in their markets often favor this format ii. In contrast, market leaders seldom acknowledge in their advertising that competing products even exist b. A generation ago, comparative advertising was not the norm and was often frowned upon c. Today regulators such as the Federal Trade Commission actually encourage it, in the belief that such ads keep the marketplace competitive, keep consumers better informed, and keep prices low Celebrity testimonials

7.

a. Celebrity testimonials involve well-known

individuals who endorse or promote a particular product or service

8.

i. They always say the right thing, do what marketers want them to do, and they cannot get into trouble ii. High licensing fees are the major drawback in using animated characters iii. Firms can avoid fees by creating their own cartoon personalities, and some become celebrities themselves f. Celebrities have now come to be considered as marketing partners rather than just pretty 10. or famous faces who sell things Retail advertising

a. Retail advertising includes all ads by retail

stores that sell products directly to the consuming public i. Consumers are confronted daily with retail advertising ii. While it accounts for a good portion of total advertising expenditures, its effectiveness varies widely iii. Consumers may respond with suspicion or disbeliefsource, message, and shopping experience seem to affect consumer attitudes toward these advertisements iv. Certain words are often seen in retail advertisements, but have been overusedfree, new and sale for instance b. Retail stores once viewed advertising as a secondary activity, but this is changing as local independent retailers delegate an employee to develop an advertising program shares advertising costs with a manufacturer11. or wholesaler, improving dealer relations and strengthening vertical links in the marketing channel Interactive advertising

c. In cooperative advertising, a retailer often

9.

a. Interactive advertising involves two-way

promotional messages sent through communication channels that encourage recipients to take an active part in the promotional effort b. The term has become synonymous with ecommerce and the Web, but it also includes formats such as interactive kiosks in shopping malls and retail stores c. Interactive advertising creates a dialogue between marketers and individual shoppers i. The challenge is to gain and hold a shoppers interest in an environment where shoppers like to be in control ii. So in effect it changes the balance between marketers and consumers

iii. It provides information to help consumers throughout the purchase and consumption processes iv. In a sense it is closer to personal selling than traditional advertising d. Interactive advertising adds value by offering the viewer more than just product-related information or promotion of a brand e. And online ad spending is climbing; it increased 26 percent during a recent year, to more than $26 billion Creating an advertisement a. Marketers spend about $280 billion a year on advertising in the U.S. alone b. With so many dollars at stake, they must create effective and memorable ads that increase sales and enhance a firms image c. Research has led to the creation of better ads by pinpointing goals that ads need to accomplish i. Common goals include educating the public about a products features, enhancing brand loyalty, or improving consumer perception of the brand ii. These objectives should guide the design of the ad iii. Research can identify what appeals to consumers, and ads can be tested with potential buyers before committing funds d. Services present challenges in the development of advertising objectives for servicesmarketers have to find a creative way to demonstrate these often intangible images and convey their benefits Translating advertising objectives into advertising plans a. Once a company defines its objectives, it can develop its advertising plan i. Marketing research helps guide choices in technical areas such as budgeting, copywriting, scheduling, and media selection

II.

Posttests measure the effectiveness of an ad and provide feedback on any needed adjustments (see details later in chapter)

B. A positioning strategy aims at creating a

desired image in the consumers mind and distinguishing the product from those of competitors Advertising then communicates the desired position by stressing certain characteristics features, price, quality, applications, user

c.

12.

needs, or product classes, and competitors shortcomings Advertising messages a. The strategy for creating a message starts with the benefits a product offers and moves to the creative concept phase b. In this phase, an appropriate visual and verbal message is created in an ad with meaningful, believable, and distinctive appeals c. Ads are not created individually but are part of ad campaigns

D. An advertising campaign is a series of

unique but related ads that use a single theme and appear in different media within a specified time period e. In developing a creative strategy, advertisers communicate their marketing message while balancing its many characteristics, such as tone, extent of information given, conclusion, the story it tells and its emphasis on certain verbal or visual elements. Advertising appeals

a. The development and preparation of an ad should flow logically from the promotional theme selected b. Regardless of the chosen target, all ads should: i. Gain attention and interestmust be done in a productive way such as instilling recall ii. Inform and/or persuadethough an ad cannot actually close the sale iii. Eventually lead to a purchase or other desired actionoften neglected in ads that fail to suggest how interested consumers can purchase the product c. Four major elements of a print ad:

I. II. III. IV.

Headlineshould grab interest and attention, along with illustrations Illustrationsphotographs, drawing, artwork Body copyinforms, persuades, and stimulates buying action

13.

A. The advertising appeal, or tone of an ad,

can be practical or emotional, serious or funny, informational or abstract i. Research shows that skeptical consumers are actually more responsive to ads that appeal to their emotions ii. Those less skeptical respond better to informational ads b. Several types of appeals can be used in ads to portray a certain tone or feeling, including those based on fear, humor, or sex i. Fearimplies that incorrect buying decisions could lead to illness, injury, or other negative consequences; but can backfire if viewers tune it out as too strong or 15. unbelievable ii. Humorcreates a positive mood, can improve audience awareness and recall and enhance brand image; but can distract focus away from the product, lose effectiveness quickly, or annoy certain consumers or cultural groups iii. Sexattracts attention but boosts recall only if the appeal is appropriate to the product, can put off sensitive consumers, and can become controversial when targeting younger audiences Developing and preparing ads

14.

Signaturenames the sponsoring organization, may include company name and logo as well as address, phone, Web address, slogan, trademark, or product photo d. After advertisers conceive an idea for an ad that gains attention, informs and persuades, and stimulates purchases, the next step is to refine the thought sketch into a rough layout e. Continued refinements of the rough layout eventually produce the final version of the ad design to be executed, broadcast, printed, or recorded f. Advances in technology allow advertisers to create novel, eye-catching advertisements that blend multiple visual pieces into a single image with a natural, seamless appearance Creating interactive ads a. Web users want engaging, lively content that takes advantage of the mediums capabilities and goes beyond what they find elsewhere b. The Web offers several advantages that help provide this: i. Features speed as a key element ii. Provides information iii. Exchanges input through two-way communications iv. Offers self-directed entertainment v. Allows personal choice c. Web ads have grown from info-based home pages to innovative and active channels through unique new formats such as

banners, pop-ups, keywords ads, advertorials, and interstitials d. Some Internet ads can be initially entertaining, but many are perceived as intrusive and unwanted

I.

Advergames are either online games that promote products, or ads and product placements inserted into games Banners, the trendsetters in online advertising and still the most common type, are ads on a Web page that link to an advertisers site Missiles, which evolved from banners, are messages that appear on the screen at a precise moment Keyword ads, also a relation of banner ads, appear on the results page of a search and are specific to the term searched, allowing certain audiences to be targeted 17. Advertorials are banner designs that evolved into larger ad squares closely resembling Yellow Pages ads Interstitials go even further, delivered through a separate browser window and appearing between Web pages of related content while the user waits for a page to download, often considered unwanted or intrusive Pop-up ads are little windows that appear in front of the top window of a users computer, on the decline due to their annoyance factor as well as lawsuits regarding deceptive practices and computer tampering Adware allows ads to be shown on users screens through software downloaded to their PCs without their consent or through trickery, widely considered as disreputable

II.

III. IV.

ii. Target characteristics are matched with the media best able to reach that particular audience iii. The goal is to achieve adequate media coverage without advertising beyond the identifiable limits of the potential market iv. Finally, cost comparisons are made between alternative media types d. Types of alternatives i. Overall ad expenditures vary among media alternatives ii. As with all marketing elements, there are advantages and disadvantages of each

iii. They fall into several categories:

broadcast media (TV and radio ads), print media (newspapers, magazines, direct mail, and outdoor ads), and electronic media (Internet ads and kiosks) Television a. Televisionnetwork and cable combined accounts for about one of every three advertising dollars spent in the U.S. b. Television can reach local and national markets

V.

VI.

c. Virtual ads, a newer trend, are banner-type

logos and brief messages that are superimposed onto coverage of sports or other events

d. Streaming headlines are text banners run by

news stations, paid for by corporate sponsors whose names and logos also appear e. Other trends in television advertising are the abbreviated spota 15- or 30-second ad that costs less to make and buy and is too quick for most viewers to zap with their remote controland single-advertiser shows f. In the past decade, cable TVs share of ad spending and revenues has grown tremendously, due in part to its boost from satellite TV; almost three-fourths of all Americans now having cable services g. In response to cable growth, declining ratings, and soaring costs, network stations have refocused strategies with a heavy emphasis on the Internet to capture younger audiences

VII.

VIII.

16.

Media selection a. Media selection is a key decision in developing an advertising strategy b. The media selected must be capable of accomplishing the three communications objectives of informing, persuading, and reminding potential customers of the good, service, person, or idea being advertised c. Several steps are seen in selecting media: i. Research identifies the ads target market to determine its size and characteristics

h. Cable TV offers access to more narrowly

defined target audiences than other broadcasting media can provide, referred to as narrowcasting Advantages of television advertising: i. Powerful impact ii. Mass coverage

i.

j.

iii. Repetition of messages iv. Flexibility v. Prestige Disadvantages of television advertising: i. Loss of control of the promotional message to the telecaster, which can lead to loss of impact 19. ii. High costs iii. Some public distrust iv. Lack of selectivity because specific shows may not reach consumers in a target market v. Certain types of products are not allowed (tobacco goods, for instance)

18.

Radio a. In recent years, radio has become one of the fastest growing media alternatives b. Consumers with little time use radio for immediate information and instant entertainment c. Marketers frequently use radio advertising to reach local audiences. But in recent years, it plays an increasingly important role as a nationaland even globallistening favorite

i. Thousands of Internet radio users

listen to online programming, also representing a growing market for those who travel, particularly overseas

20.

ii. Satellite radio services, for the price

of a subscription, provide higherquality digital signals than regular radio iii. Stations can adapt to local preferences by changing format, such as going from country and western to an all-news or sports station

e. Disadvantages of radio: i. Fragmentation, highly segmented audiences ii. The temporary nature of messages iii. Lack of research information as compared to television Newspapers a. Newspaper advertising continues to dominate local markets, accounting for nearly 19 percent, or slightly more than $28 billion, of annual advertising expenditures b. Besides retail advertising, newspapers carry classified ads to add to their revenues c. Despite predictions of their decline, newspapers are more popular than ever d. Several thousand newspapers have their own Web sites, which attracted more than 66 million visitors, or 40 percent of all Internet users, in one quarter during a recent year e. Advantages of newspapers i. Flexibility ii. Intensive coverage for ads iii. Ads can be clipped and saved f. Disadvantages of newspapers i. Short life span ii. Hasty reading iii. Relatively poor reproduction quality Magazines a. Magazines can be divided into two broad categories: consumer and business b. These categories can be subdivided into monthly and weekly publications

c. The top five magazines in terms of

circulation are AARP The Magazine, AARP Bulletin, Readers Digest, Better Homes and Gardens, and National Geographic d. Advantages of magazines: i. Selectivity in reaching precise target markets ii. Quality reproduction iii. Long life iv. Prestige e. Disadvantages of magazines: i. They lack the flexibility of newspapers, radio, and TV ii. For consumers, one issue is considerably more expensive than a newspaper f. Media buyers study circulation numbers and demographic information for various publications to choose placement opportunities and to negotiate rates Direct mail

iv. Webcast radio allows customers to

widen their listening times and choices through their computers d. Advantages of radio: i. Can reach a local audience, and increasingly a national as well as global audience ii. People in cars represent a captive audience iii. The variety of stations allow advertisers to easily target audiences and tailor messages iv. Low costs v. Flexibility vi. Widespread availability of radios vii. Mobility

21.

a. Direct mail consists of sales letters,

postcards, leaflets, folders, booklets, catalogs, and house organs b. Direct mail accounts for nearly $62 billion of advertising spending annually c. Advantages of direct mail: i. Ability to segment large audiences into narrow market niches ii. Speed iii. Flexibility iv. Detailed information 23. v. Personalization d. Disadvantages of direct mail: i. High cost per reader ii. Dependence on the quality of mailing lists iii. Some consumers resistance iv. Perceived by some as junk mail v. Increased clutter due to the growing amount of material stuffed into mailboxes every day e. The advantages of direct mail help to explain its widespread use; research is available on purchase patterns, preferred payment, and household characteristics Outdoor advertising

vi. Effective in high-traffic areas Disadvantages of outdoor advertising: i. Subject to clutter, environmental concerns ii. Brevity of exposure, limited time to view iii. Distraction to drivers, safety concerns iv. Consumer resistance, aesthetic concerns v. Government regulations Interactive media a. Interactive mediaespecially the Internet are growing up i. Interactive advertising budgets for many firms are being increased as Web usage expands c.

ii. Keyword ads dominate online

advertising, accounting for more than 30 percent of annual online ad spending around the world b. Ads have already come to cell phones, as video and broadcast capabilities explode

c. Using GPS (global positioning system)based technology, offers opportunities for advertisers to target promotions at consumers as they walk by certain stores and restaurants Other advertising media a. In addition to the major media, firms use a vast number of other vehicles to communicate their messages; one such device is Total Immersions DFusion system, which allows customers to see themselves on a screen through the Webcam while holding up a two-dimensional brochure of an advertisers product b. Ads are now seen just about everywhere on T-shirts, inlaid in store flooring, on printed theater programs, as previews for DVD movies, on hot-air balloons and blimps, on banners behind airplanes, and on sports scoreboards c. Individuals sometimes agree to paint their own vehicles with advertising messages, or tattoo them onto their bodiesfor a fee Media scheduling a. Once the media is selected to match objectives and budgets, timing and scheduling need to be considered

22.

a. Outdoor advertising, or out-of-home

advertising, is perhaps the oldest and simplest media business around 24.

i. It consists of billboards, painted

bulletins, electronic displays, and transit advertising ii. It represents 2.7 percent of total advertising spending iii. Advertisers are finding new places to put their messages outdoors, including roofs of taxicabs, on bus stop shelters and benches, on entertainment and sporting event turnstiles, in public restrooms, and even on parking meters iv. New technologies are helping to revive outdoor advertising with animation, laser images, digital displays, signage, and posted news or information 25. b. Advantages of outdoor advertising: i. Quickly and immediately communicates a message ii. Uses simple ideas iii. Offers strong selling points, often through humor iv. Repeats exposure to a message v. Offers strong promotion for locally available products

b. Media scheduling refers to setting the timing

c. and sequence for a series of advertisements These decisions can be affected by several factors: i. Sales patternsseasonal ups and downs over the year

ii. Repurchase cyclesproducts with shorter cycles will need ongoing media schedules throughout the year iii. Competitors activitiesavoiding advertising during heavy campaigns for competing products d. Advertisers use the concepts of reach, frequency, and gross rating points to measure the effectiveness of media scheduling plans

i. Reach refers to the number of

different people or households exposed to an advertisement at least once during a certain time period

ii. Frequency refers to the number of

times an individual is exposed to an advertisement during a certain time 28. period

businesses plan and prepare advertisements ii. Advertising is a huge global industry b. Most large advertisers cite several reasons for relying on agencies: i. They have qualified specialists who provide a degree of creativity and objectivity that is difficult to sustain in a corporate setting ii. They may actually reduce costs by allowing the advertiser to avoid many of the fixed expenses associated with maintaining an internal advertising department iii. Whatever organizational structure is chosen, an agency often stands or falls on its relationships with its clients Public relations

iii. By multiplying reach times

frequency, advertisers quantitatively describe the total weight of a media effort, which is called the campaigns gross rating point (GRP) e. The effectiveness of reach and frequency to measure online ad success has been questioned i. The theory of frequency is that the average ad viewer needs a minimum of three exposures to a message to understand it and connect it to the brand ii. For Web surfers, the wear-out is much quickerhence, the greater importance of building customer relationships through advertisements Organization of the advertising function a. The ultimate responsibility for advertising decision making usually rests with top marketing management

A. Public relations involves the firms

communications and relationships with its various publicscustomers, employees, stockholders, suppliers, government agencies, and society at large b. Public relations is an efficient yet indirect communications channel through which a firm can promote products i. It serves broader objectives than those of other components of promotional strategy ii. It is concerned with the prestige and image of all parts of the organization iii. Today it plays a larger role than ever in the promotional mix c. Public relations is in a period of major growth i. There are about 50,000 public relations managers in the United States ii. nearly 200,000 people actually work in the public relations field for both profit-centered and not-for-profit organizations iii. The field is growing due to increased public pressure on firms regarding ethical conduct, environmental and international issues iv. International expenditures on public relations are growing more rapidly than those for advertising and sales promotion d. The PR department acts as the link between the firm and media i. It provides press releases and holds news conferences about new

26.

B. The advertising function is usually organized

as a staff department reporting to the vice president (or director) of marketing c. The tasks that fall under advertising often include research, design, copywriting, media analysis, and sometimes sales and trade promotion Advertising agencies a. Most large firms in industries that demand large advertising expenditures will hire an independent advertising agency

27.

I.

Advertising agencies are firms whose marketing specialists help

29.

products, alliances, management changes, or financial results ii. It may issue its own publications, including newsletters, brochures, and reports e. A PR plan follows steps similar to those of an advertising plan: i. Research to define the role of the firms public relations ii. Decisions on short-term and longterm goals and market iii. Analysis of product features iv. Choice of messages and media channels v. Creation of messages that highlight the firms benefits to each market vi. Measurement of results f. The Internet has changed PR planning 31. i. Messages can be delivered directly to the public ii. They do not have to be filtered through journalists and news media, as has been the tradition in public relations work iii. This direct access gives a firm greater control over the messages it sends Marketing and nonmarketing public relations

ii. Advertising has been described as the hammer and publicity as the nail publicity creates credibility for the advertising to follow b. While publicity generates minimal costs, it does not deliver the message entirely for free c. Firms often pursue publicity to promote their images or viewpoints, to handle management changes or acquisitions or mergers, or to announce research breakthroughsbut usually to give information on their goods, particularly new products d. Many consumers consider news stories to be more credible than advertisements as sources of information, considering the news as coming from the media source, not the company Cross-promotions

A. A cross-promotion is created when

marketing partners share the cost of a promotional campaign that meets their mutual needsan important benefit in an environment of rising costs b. Relationship marketing strategies such as co-marketing and co-branding are forms of cross-promotion c. these joint efforts between established brands benefit both firms and allow them to share costs. Measuring promotional effectiveness a. Each element of the promotional mix represents a major expenditure

A. Nonmarketing public relations refers to a

companys messages about general 32. management issues, involving decisions that affect any of its publics

B. Marketing public relations (MPR) refers to

narrowly focused PR activities that directly support marketing goals, involving the firms relationships with consumers or other groups

B. Firms usually pay a cost per thousand

(CPM) fee, based on cost to deliver the message to viewers, listeners, or readers c. Promotion is very expensive, so firms need to decide whether their campaigns accomplish appropriate promotional objectives d. By measuring promotional effectiveness, firms can evaluate different strategies, prevent mistakes before spending money, and improve their promotional programs e. Determining whether an advertising message has achieved its intended objective is one of the most difficult tasks of marketing Measuring advertising effectiveness a. Measures of advertising effectiveness are both difficult and costly, but are also necessary b. Without them marketers cannot know if goals are being met and dollars are being spent wisely c. Two types of measurement research

I.

Proactive MPR takes the initiative and seeks out opportunities for promoting the firms products, acting as a powerful marketing tool Reactive MPR responds to external situations that have potentially negative consequences for the firm

II.
30.

Publicity a. The aspect of public relations most directly related to promoting a firms products is 33. publicity

I.

Publicity is the nonpersonal stimulation of demand for a product, service, place, idea, person, or organization by unpaid placement of significant news regarding the product in a print or broadcast medium

I.

Media research assesses how well a particular medium delivers the advertisers message, where and when to place the advertisement, and the size of the audience

from memory, without the aid of a copy

VI.

Message research tests consumer reactions to an advertisements creative message iii. Pretesting and posttesting are two methods for performing message research 34. d. Pretesting Pretesting involves the evaluation of advertisements before they actually appear in the chosen medium ii. This allows ads to be evaluated and adjusted while they are being developed iii. Marketers conduct a number of pretests, from the concept phase when they have only rough copy of the ad, to the layout and design phase when the ad is almost finished

II.

Inquiry tests offer gifts or free samples to people who respond to ads, measuring effectiveness by the number of inquiries received

I.

IV. V.

Focus groups are often used to pretest ads, allowing participants to comment and voice their opinions

Blind product tests are also used in pretesting, gathering feedback from participants who are asked to select unidentified products on the basis of ad copy e. Posttesting

I.

Posttesting is an assessment of advertising copy after it has appeared in the appropriate medium ii. Pretesting is often more desirable because it can save the cost of placing ineffective ads, but 35. posttesting can be of help to plan future ads and adjust current programs The Starch Readership Report is a popular posttest in which people who have read selected magazine articles are interviewed about their observation of various ads, with a copy of the magazine used as an aid This and other readership tests, or recognition tests, assume that future sales are related to ad readership Unaided recall tests ask respondents to recall magazine ads

III.

Split runs test two or more ads at the same time by placing different versions in various media, then measuring response to each version Measuring public-relations effectiveness a. PR results should be measured based on their objectives both for the PR program as a whole and for specific activities i. Marketers must then decide what to measure ii. This choice includes determining whether the message was heard by the target audience and whether it had the desired influence b. The simplest and least costly level of assessment involves outputs of the PR program: i. Whether the audience received the messages ii. Whether the audience paid attention to the messages iii. Whether the audience understood the messages iv. Whether the audience retained the messages c. To analyze PR effectiveness more deeply, a firm can conduct focus groups, interviews with opinion leaders, or more detailed and extensive opinion polls d. The highest level of effectiveness measurement always looks at outcomes did the PR program change peoples opinions, attitudes, or behavior? Evaluating interactive media a. Marketers employ several methods to measure how many users view Web advertisements:

VII.

I. II. III. IV.

Hitsuser requests for a file Impressionsnumber of times a viewer sees an ad Click-through ratesnumber of times users click on an ad to get information

IV. V.

View-through ratesresponses to ads over time b. However, some of these measures can be misleading

36.

i. Because each page, graphic, or file equals one hit, simple interactions can easily inflate the hit count ii. To be more effective, advertisers need to give viewers who click through a site something interesting to see, read, or use c. Internet marketers price ad banners based on cost per thousand (CPM) i. Web sites guarantee a certain number of impressionsthe number of times an ad banner is downloaded and presumably viewed ii. Marketers set a rate based on that guarantee, times the CPM rate Ethics in nonpersonal selling a. Advertising ethics i. Many promotions involve ethical issues ii. One debate involves ads that target children, their sheer numbers, and the way they influence household buying iii. Alcoholic beverage ads can be controversial due to heavy TV and magazine spending and influence on young people iv. Ethical issues in Internet ads include those that look like editorial content, and those that use small text files that are automatically downloaded, called cookies b. Puffery and deception Puffery refers to exaggerated claims of a products superiority, or subjective or vague statements about it that may not be literally true ii. Exaggeration in ads is not new consumers seem to accept advertisers tendencies to stretch the truth iii. A couple of tough questions remain: Where is the line between claims that attract attention and those that provide implied guarantees? To what degree do advertisers deliberately make misleading statements?

puffery, not warranties, and the average consumer does not rely on them to make decisions iii. A quantifiable statement, on the other hand, implies a certain level of performance d. Ethics in public relations i. Several public relations issues open organizations to criticismsuch as working with the tobacco industry; defending unsafe products ii. Marketers must weigh ethics before they respond to negative publicity iii. The question remains: do firms admit to problems and product deficiencies, or do they try to cover them up?

I.

C. The Uniform Commercial Code standardizes

sales and business practices in the U.S.

I.

It distinguishes between mere puffery and an actual express warranty, which obligates a firm to stand behind its claim ii. General boasts of superiority and vague claims are considered