Launch! Advertising and Promotion in Real Time, 2009a

More documents

Recommendations

Info

times like now. We see this situation now quite clearly, for example, in the automotive industry, as the stock market and credit crises have made money scarce, and consumers are pressed to pay higher prices for gasoline, home heating, groceries, and other necessities. It’s not surprising, then, that automotive advertising spending in the United States dropped to $1.99 billion in the first quarter of 2008. That sounds like a lot of money (and it is!)—but it’s down more than 14 percent compared with the same time a year before. As one industry executive observed, ad spending is “sinking as fast as new car sales.” When times are tough, nothing is sacred: Even Tiger Woods’ nine-year relationship as a fixture in General Motors’ advertising got the axe as the industry tries to slash its costs. [1] Top-Down Budgeting In top-down budgeting, top management sets the overall amount the company will spend on promotional activities for the year. This total amount is then allocated among all of the advertising, PR, and other promotional programs. How does top management arrive at the annual promotional budget? Typically, they use a percentage-of-sales method, in which the budget is based on the amount the company spent on advertising in the previous year and the sales in that year. Percentage-of-Sales Method The percentage-of-sales method is the ratio of the firm’s past annual promotional budget divided by past sales to arrive at the percentage of sales. That percentage of sales is then applied to the expected sales in the coming year to arrive at the budget for that year. For example, if the company spent $20 million on advertising last year and had $100 million in sales, the percentage of sales would be 20 percent. If the company expects to achieve $120 million in sales the following year, then 20 percent of $120 million is $24 million, which would be the budget for advertising that year. Figure 7.2 Percentage-of-Sales Method Saylor URL: http://www.saylor.org/books Saylor.org 203
Wall Street analysts sometimes look at changes in the ad-to-sales ratio as a sign of the health of a company. For example, Procter & Gamble’s ad-to-sales-ratio slipped from 10.7 percent in 2004 to 9.9 percent in 2006. Those declines came as P&G faced growing margin pressure from rising commodity costs. Some analysts see strong ad spending as an investment in growth or a sign that a company is having no trouble meeting its earnings targets, so they want to see an ad-to-sales ratio that is consistent or increasing. [2] Industry Averages Method Some companies use industry averages (published by trade associations) as a guide to set their promotional budget. Ad-to-sales ratios vary widely depending on the industry. For example, health services companies had one of the highest ad-to-sales ratios for 2006, at 18.7 percent. Other industries with high ad-to-sales ratios are transportation services (14.2 percent), motion pictures and videotape productions (13.7 percent), food (11.9 percent), newspapers (11.1 percent), and broadcast television stations (10.7 percent). In contrast, computer and office equipment had an ad-to-sales ratio of 1.2 percent, while computers and software wholesale had only a 0.2 percent ad-to-sales ratio. [3] Sometimes a dramatic increase in ad spending by one competitor in an industry spurs others to follow suit. For example, in 2007 German insurance giant Allianz more than quadrupled its annual global advertising budget to 225 million euros after competitor Zurich Financial Services launched a large-scale global awareness campaign. [4] Similarly, the auto insurance industry saw overall ad spending jump more Saylor URL: http://www.saylor.org/books Saylor.org 204
Page 2 and 3:
This text was adapted by The Saylor
Page 4 and 5:
1.1 Why Launch!? LEARNING OBJECTIVE
Page 6 and 7:
1.2 Meet Our Agency Partner: SS+K L
Page 8 and 9:
This perspective is a consumer-cent
Page 10 and 11:
Follow the e-mail trail. Dr. Duke C
Page 12 and 13:
As you can see, it takes a village
Page 14 and 15:
1.3 The Pitch: Win the Account LEAR
Page 16 and 17:
Initial strategic thinking. Before
Page 18 and 19:
Figure 1.9 The Pitch Process How do
Page 20 and 21:
1.4 Let’s Meet the Potential Clie
Page 22 and 23:
1.5 Exercises TIE IT ALL TOGETHER N
Page 24 and 25:
message to them. What do you percei
Page 26 and 27:
LEARNING OBJECTIVES After studying
Page 28 and 29:
eally are trying to fake you out. F
Page 30 and 31:
MySpace. We weren’t early enough
Page 32 and 33:
Specialty print media include bookl
Page 34 and 35:
Ad-Supported Content Ad agencies ar
Page 36 and 37:
[5] “Traditional Radio’s Digita
Page 38 and 39:
the promotional activities that int
Page 40 and 41:
increasingly thin layer of audience
Page 42 and 43:
Figure 2.8 A sales promotion is a t
Page 44 and 45:
2.3 Advertising Industry Structure
Page 46 and 47:
Figure 2.10 Matrix Organization in
Page 48 and 49:
P&G reacted to this problem when it
Page 50 and 51:
Media buyers and media planners eva
Page 52 and 53:
Within a company, the jobs of the a
Page 54 and 55:
[1] Suzanne Vranica, “Ad Houses W
Page 56 and 57:
drumsticks and simulated drumhead p
Page 58 and 59:
Figure 3.1 Build a Foundation Chapt
Page 60 and 61:
3.1 Economic Effects of Advertising
Page 62 and 63:
Broadcast radio and TV rely exclusi
Page 64 and 65:
3.2 The Good: Advertising Enhances
Page 66 and 67:
washing with soap, that remain kill
Page 68 and 69:
share, so they tend to be more stri
Page 70 and 71:
now one of the primary attributes s
Page 72 and 73:
[8] Mister Snitch!, “Top Ten Reje
Page 74 and 75:
here is subjective—your image of
Page 76 and 77:
“If you let me play sports, I wil
Page 78 and 79:
Categories can be made quite specif
Page 80 and 81:
Luxury products are not a bad or wa
Page 82 and 83:
[9] Jean Grow and Joyce M. Wolburg,
Page 84 and 85:
3.4 Advertising Regulation: Who Loo
Page 86 and 87:
Agencies), the ANA (Association of
Page 88 and 89:
[3] American Association of Adverti
Page 90 and 91:
about one-half the size of existing
Page 92 and 93:
Chapter 4 Consumers and the Communi
Page 94 and 95:
messages they see or hear, and when
Page 96 and 97:
4.2 Is the Medium the Message? Comp
Page 98 and 99:
Figure 4.4 SS+K used actor George C
Page 100 and 101:
SS+K developed a comparative messag
Page 102 and 103:
Audio Clip “Ahem” http://app.wi
Page 104 and 105:
After studying this section, studen
Page 106 and 107:
SS+K Spotlight The memes and trends
Page 108 and 109:
4.4 Decision Making LEARNING OBJECT
Page 110 and 111:
Motivation refers to the processes
Page 112 and 113:
4.5 Internal Influences on Consumer
Page 114 and 115:
isn’t sure. And, regardless of hi
Page 116 and 117:
it’s not subliminal; the stimulus
Page 118 and 119:
Product line extensions. Marketers
Page 120 and 121:
1. Sensory memory permits storage o
Page 122 and 123:
Of course, the nature of the ad its
Page 124 and 125:
c. Create an example involving a lo
Page 126 and 127:
[24] Raymond R. Burke and Thomas K.
Page 128 and 129:
products with others and to solicit
Page 130 and 131:
community hub on Yahoo! it calls Po
Page 132 and 133:
4.7 Culture, Globalization, and Adv
Page 134 and 135:
Advertisers have (for the most part
Page 136 and 137:
Why do they bother? Their goal is t
Page 138 and 139:
1a &ex=1369108800&partner=USERLAND&
Page 140 and 141:
advertising and ad men (and women)
Page 142 and 143:
Chapter 5 Know Your Audience: SS+K
Page 144 and 145:
5.1 Types of Data LEARNING OBJECTIV
Page 146 and 147:
preferable but harder and more expe
Page 148 and 149:
One really encouraging finding from
Page 150 and 151:
Figure 5.4 Brand Tags Dig Deeper Th
Page 152 and 153:
irreverent British tastes. “In th
Page 154 and 155: KEY TAKEAWAY Primary data refers to
Page 156 and 157: magazines they prefer, an agency co
Page 158 and 159: a. Identify and discuss the signifi
Page 160 and 161: more natural and objective than int
Page 162 and 163: Results showed that sportier models
Page 164 and 165: 5.5 Using Research to Guide a Succe
Page 166 and 167: they wanted to see recipes for ligh
Page 168 and 169: [1] Quoted in Lisa McTigue Pierce,
Page 170 and 171: a U.S. Army ad, see yourself walkin
Page 172 and 173: audience profiling to become more t
Page 174 and 175: “The key turning point of this wh
Page 176 and 177: Life stage (e.g., empty-nest parent
Page 178 and 179: feather flock together”). PRIZM (
Page 180 and 181: fashionable. Bloomie’s research d
Page 182 and 183: Actualizers, the top VALS2 group, a
Page 184 and 185: Surveys of consumer behavior (for e
Page 186 and 187: generic attribute and not a point o
Page 188 and 189: 2. Demographics are measurable aspe
Page 190 and 191: What Are the Properties of a Good T
Page 192 and 193: conversation. The customer would ha
Page 194 and 195: 6.3 Position Your Brand: Why Will T
Page 196 and 197: The average Buick buyer is a man in
Page 198 and 199: 6.4 Exercises TIE IT ALL TOGETHER N
Page 200 and 201: muscle is being used to bring such
Page 202 and 203: check any information on ethics pro
Page 206 and 207: than 32 percent in just two years w
Page 208 and 209: SS+K Spotlight Since msnbc.com’s
Page 210 and 211: Clients use a variety of methods to
Page 212 and 213: How Loud Are You? Share of voice (S
Page 214 and 215: properties, and sci-fi sites over a
Page 216 and 217: 3. List and discuss the keys to usi
Page 218 and 219: Southern California, and it aims to
Page 220 and 221: are positive or negative and whethe
Page 222 and 223: the company spent on TV advertising
Page 224 and 225: y category (agency fee, production,
Page 226 and 227: You can list the pros and cons of t
Page 228 and 229: AD-VICE 1. A company is trying to d
Page 230 and 231: We are now eight months prior to th
Page 232 and 233: After studying this section, studen
Page 234 and 235: Just as people have personalities,
Page 236 and 237: KEY TAKEAWAY The power of branding
Page 238 and 239: well. It may also reveal indirect c
Page 240 and 241: ealistic feel for its market positi
Page 242 and 243: In contrast, opportunities and thre
Page 244 and 245: 8.3 Define Where You Want to Go: Se
Page 246 and 247: You’ll learn more about how these
Page 248 and 249: adio, or read magazines. It may als
Page 250 and 251: Figure 8.5 Anatomy of a Creative Br
Page 252 and 253: Figure 8.7 The Communications Brief
Page 254 and 255:
KEY TAKEAWAY This section described
Page 256 and 257:
2. Is there a Chick-fil-A in your n
Page 258 and 259:
Chapter 9 Choose Your Communication
Page 260 and 261:
direct mail people, whoever else yo
Page 262 and 263:
Campaigns that utilize multiple med
Page 264 and 265:
9.2 Elements of the Promotional Mix
Page 266 and 267:
team is more relevant and effective
Page 268 and 269:
virtual trade shows that you attend
Page 270 and 271:
newsworthy, such as announcing a ne
Page 272 and 273:
aloud. Salespeople in fashion retai
Page 274 and 275:
drive potential new Sun customers t
Page 276 and 277:
service Loopt, which allows its sub
Page 278 and 279:
Fox: Ads That Can Change Pitch,”
Page 280 and 281:
The third campaign in the series be
Page 282 and 283:
Pool Resources with Associations an
Page 284 and 285:
9.4 Exercises TIE IT ALL TOGETHER N
Page 286 and 287:
1. Assume that you are a proponent
Page 288 and 289:
Chapter 10Plan and Buy Media: SS+K
Page 290 and 291:
10.1 Traditional Advertising Media
Page 292 and 293:
The print portion of the media plan
Page 294 and 295:
The television plan that The Media
Page 296 and 297:
“advertising abhors a vacuum,”
Page 298 and 299:
Lack of messaging. Although sponsor
Page 300 and 301:
KEY TAKEAWAY Traditional media incl
Page 302 and 303:
10.2 New Media LEARNING OBJECTIVES
Page 304 and 305:
In order to maximize the effectiven
Page 306 and 307:
presented by Craftsman at Sears,”
Page 308 and 309:
As the tip of the iceberg, MTV rece
Page 310 and 311:
are used to getting from real-world
Page 312 and 313:
where they select the flavor of the
Page 314 and 315:
catch up to Google (which provides
Page 316 and 317:
[16] Quoted in Paul Hyman, “Burge
Page 318 and 319:
2. Demonstrate how media planning i
Page 320 and 321:
A common place for these negotiatio
Page 322 and 323:
Cost per thousand (CPM) Calculation
Page 324 and 325:
outdoor advertising, online banner
Page 326 and 327:
c. Define and discuss impressions,
Page 328 and 329:
Assume that your advertising agency
Page 330 and 331:
Assume one of two roles: (a) You ar
Page 332 and 333:
11.1 Execute on Media Platforms LEA
Page 334 and 335:
Figure 11.4 The other campaign opti
Page 336 and 337:
Figure 11.8 The client’s new logo
Page 338 and 339:
Subject matter, composition, color,
Page 340 and 341:
visually.” Sound effects reinforc
Page 342 and 343:
from the opposite direction seeing
Page 344 and 345:
TV: Online ads are like TV commerci
Page 346 and 347:
The total spending on alternative m
Page 348 and 349:
[6] Quoted in Martin Pazzani, “Ma
Page 350 and 351:
is a more accurate measure of likel
Page 352 and 353:
position for Apple as revolutionary
Page 354 and 355:
prompted the viewer to think about
Page 356 and 357:
11.3 Exercises TIE IT ALL TOGETHER
Page 358 and 359:
products? What do you think the fut
Page 360 and 361:
Chapter 12 Make the Message Sell: S
Page 362 and 363:
1. Define relevance and resonance.
Page 364 and 365:
The common denominator among the mo
Page 366 and 367:
[5] Quoted in Geoff Colvin, “Sell
Page 368 and 369:
In 2007, Dial rebranded its Soft &
Page 370 and 371:
It also helps when viewers don’t
Page 372 and 373:
The solution? Advertisers need to s
Page 374 and 375:
[2] David Carr and Tracie Rozhon,
Page 376 and 377:
providing our consumers with even m
Page 378 and 379:
Tupperware Chairman-CEO Rick Goings
Page 380 and 381:
KEY TAKEAWAY An executional framewo
Page 382 and 383:
1. Characterize the members of an a
Page 384 and 385:
Art direction has grown in importan
Page 386 and 387:
You can explain why having an emoti
Page 388 and 389:
3. Go to at least one favorite maga
Page 390 and 391:
accomplished this by designing mult
Page 392 and 393:
As you saw in the media plan we pre
Page 394 and 395:
13.4 TV Another important element o
Page 396 and 397:
Figure 13.7 The banners titled “P
Page 398 and 399:
The “Keywords” banner ads were
Page 400 and 401:
13.7 NewsBreaker Game Another insig
Page 402 and 403:
13.8 NewsBreaker Live The final pus
Page 404 and 405:
13.10 Spectrum Home Page Figure 13.
Page 406 and 407:
14.1 ROI: Show Me the Money LEARNIN
Page 408 and 409:
Marketers echo this pessimism; many
Page 410 and 411:
The ROI for any campaign must relat
Page 412 and 413:
[1] Jeff Lowe, “The Marketing Das
Page 414 and 415:
While an advertiser in the 1960s co
Page 416 and 417:
National cable metrics from the msn
Page 418 and 419:
Figure 14.8 msnbc.com purchased a
Page 420 and 421:
Read Most: The percentage of reader
Page 422 and 423:
Double-page spreads and bound multi
Page 424 and 425:
14.3 ROI for Alternative Media LEAR
Page 426 and 427:
Outdoor advertising is quickly movi
Page 428 and 429:
procure products they needed to dre
Page 430 and 431:
Figure 14.15 Chart tracking number
Page 432 and 433:
Online advertising formats have his
Page 434 and 435:
Figure 14.18 In order to optimize o
Page 436 and 437:
In addition to measuring elements o
Page 438 and 439:
Figure 14.24 SS+K compared the rate
Page 440 and 441:
Table 14.1 Final Takeaway and Lesso
Page 442 and 443:
[2] “The Association of National
Page 444 and 445:
14.4 Exercises TIE IT ALL TOGETHER
Page 446 and 447:
site. Summarize what you have learn
show all

Launch! Advertising and Promotion in Real Time, 2009a

Create successful ePaper yourself

Delete template?

Save as template?