Advertising Media Alternatives

• Advertising represents a paid communication method originating from a recognized source and disseminated through a selected channel to influence specific actions.

Advertising and the AIDA Model

• Use both primary and secondary advertising media for optimal results.

Advertising Media Alternatives

• Traditional channels include television, radio, newspapers, magazines, and out-of-home placements.
• Nontraditional (digital) channels encompass the Internet, mobile communications, and video games.

Media Selection

• Television extends wide reach, incorporates both sound and visuals, but is expensive and may benefit competitors.
• Radio is inexpensive, allows selective targeting, and has broad reach, but lacks visuals and struggles with short exposure times.
• Magazines offer targeted advertising and pass-along potential but are inflexible with long lead times.
• Newspapers are flexible, timely, and can be localized, yet may be expensive with a short lifespan.
• Digital media links to detailed content and is interactive, facing challenges from ad-blocking software and potential dilution.
• Out-of-home advertising is inexpensive and allows repeat exposure but lacks targeted reach and faces placement issues.

Product Placement

• Involves integrating products into movies, TV shows, and music videos, accounting for ~$11.5 billion in annual spending.

Sales Promotion

• Serves as incentives for immediate consumer, distributor, or sales force responses.

Consumer Promotions

• Aims to boost purchases and foster brand loyalty.

Trade Promotions

• Provided to channel members, offering marketing and merchandising support.

Types of Consumer Sales Promotions

• Coupons stimulate demand and encourage retailer support but suffer from low redemption rates and high costs.
• Deals encourage product trial by reducing risk and countering competition but risk cheapening value perception.
• Premiums build goodwill and increase perceived value; however, customers might prioritize the premium over the product.
• Contests increase involvement and excitement, requiring creativity and oversight.
• Sweepstakes encourage consumption and minimize brand switching, often followed by sales declines.
• Samples encourage product trial through direct involvement but are costly.
• Loyalty programs encourage repeat purchases and create loyalty at a high cost.
• POP displays increase brand trial with high visibility and in-store support, yet are costly and hard to place.
• Rebates stimulate demand and increase value perception but are easily copied and may simply accelerate usual sales.

Strategic Sales Promotion

• Requires care to avoid merely shifting sales and to consider branding impact for long-term stability.

Internet Impact

• The Internet has become a mass media channel, with ~90% of Canadians and Americans having home access.
• Canadians spend ~5 hours/day online, with the Internet being the primary media for 18–24 year-olds.
• Social media presence is important, measured by "Cost of Ignoring (COI)" rather than strict ROI.

Social Media Use

• Facebook has the largest user base, necessitating consideration of user profiles.
• Canada has 28.4 million wireless subscribers, with 60% accessing the internet via mobile.
• Many (79%) do not leave home without their phones, spending ~2.5 hours/day on mobile devices, mostly on apps.
• Mobile ad revenue totals $903 million, up from $82 million four years prior.

Online Marketing Communications

• Growth is driven by control for consumers and marketers, convenience, and cost-efficiency.

Common Objectives

• Creating awareness, branding, engagement, offering incentives, generating leads, providing customer service, and conducting transactions are all objectives.

Social Media Categories

• Social Network Sites: Facebook, Snapchat, LinkedIn
• Media-Sharing Sites: YouTube, Flickr, Picasa, Instagram
• Thought-Sharing Sites: Corporate, Professional, Personal, and Micro blogs

Needs Served by Mobile Apps

• Mobile apps serve needs for "me time," socializing, shopping, and discovering information.

App Pricing Models

• Pricing includes ad-supported, freemium, paid apps, and paid apps with in-app purchases.

Social Media Engagement

• Follow a three-stage process: LISTEN, ANALYZE, DO.

Listen

• Monitor customer conversations using sentiment analysis tools.

Analyze

• Focus on site traffic, keyword analysis, and user behavior.
• Content analytics track page popularity and load times.
• Social analytics monitor engagement and conversion rates.
• Mobile analytics track mobile app behavior.
• Conversion analytics measure meaningful actions.
• Advertising analytics evaluate ad effectiveness.

Do

• Implement data-driven insights, choose appropriate tactics, adapt traditional IMC tools, and acknowledge data limitations.

Decision-Making

• Consists of the Universal Set, Retrieval Set, and Evoked Set.

Need Recognition

• Occurs when there is a difference between the perceived and desired states, triggered internally or externally, with attention as a key element.

Perception

• Includes selective exposure, attention, comprehension, and retention.

Attitude

• Attitude involves cognition (belief), affection (feeling), and behavior (actions).

AIDA

• Attention: Making the consumer aware of a product or brand.
• Interest: Persuading the customer to investigate the product further.
• Desire: Creating a want for the product.
• Action: Prompting a purchase or other action.

Navigating AIDA

• Moving through the stages may take time due to the lagged effect.
• Requires clear messaging decoded correctly by the audience, using celebrity associations, slogans, and identifiable features.

Marketing Communications Objectives

• Informing/Informative Advertising: Builds awareness.
• Persuading/Persuasive Advertising: Builds interest.
• Reminding/Reminder Advertising: Maintains awareness and interest.

Advertising Functions

• Informative advertising builds the cognitive component of attitude.
• Persuasive advertising builds affective and action components.
• Reminder advertising reignites or fosters attitude and manages product use cycles.

Strategic Communication

• Positioning uses contrast to gain attention, emphasizing a unique selling proposition (USP) and attitude content.

Competition/Market Leadership

• Conveys understood messages by knowing the competition and crafting understandable ads.

Visa's Advertising

• Visa ads from the 80s and 90s aimed to increase service usage by targeting AmEx users and wealthier travelers through mass-market media.

AIDA, Consumer Behavior, & Belief

• Attention aims to get into the retrieval set through thinking.
• Interest aims to get into the evoked set through feeling.
• Desire aims for positive evaluation through feeling.
• Action results in making a purchase.

The 4E Framework and AIDA

• Excite covers attention, interest, and desire.
• Educate covers interest and desire.
• Experience covers interest, desire, and action.

Social Media Uses

• Promote self within a site (1st party) to build followers.
• The site promotes itself (1st party) to build its own brand.
• Promote self on the site (3rd party) using the platform for promotion.

Social Media Categories

• Social Networks: Facebook, Twitter, Snapchat, Instagram, LinkedIn, Untappd
• Media-Sharing: Instagram, YouTube, Tumblr, Podcasts
• Thought-Sharing: Blogs, Microblogs, Twitter
• Product/Brand Apps: Starbucks, Jeremy Renner app

Promotion Objectives

• Coupons stimulate demand.
• Deals encourage trial.
• Premiums build goodwill.
• Contests and sweepstakes increase involvement.
• Samples encourage trial.
• Loyalty programs encourage repurchase.
• POP displays encourage brand trial.
• Rebates stimulate demand.

Sales Promotion Strategy

• It needs to align with promotion and pricing strategies.
• It can be used for short-term boosts or long-term loyalty efforts.
• Target: Consumers or channel members.
• Implement alongside other IMC tools.
• Avoid damaging pricing expectations.

Retailer Metrics

• It includes realized margin, cost of additional inventory, potential sales increase, long-term impact, product switching risks, and new customer attraction.

Trade Channel Sales Promotions

• Include discounts and allowances to encourage supply chain stability.
• Cooperative advertising involves cost sharing with distributors.
• Sales force training provides manuals and support materials.

Sales Promotion Tools

• Utilize pop-up stores for informational purposes and cross-promotions with local businesses.

Advertising Aspects

• Advertising is a visible IMC element that builds awareness.
• It is paid, comes from an identifiable source, and uses communication channels to inform, remind, or persuade.

Advertising Focus

• Can be product-focused or institutional (organization/cause-focused).

Advertising Forms

• PSAs, video spots, product placements, magazine ads, posters, billboards, and internet banners are all forms of advertising.

Product Placement

• It utilizes nontraditional media exposure, influencer content, and behind-the-scenes content.

Public Service Announcements (PSAs)

• PSAs focuses on public welfare and sponsored by non-profits, serving as a form of social marketing.