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- Other Advertising Media
CHAPTER 14
© 2010 South-Western, a part of Cengage Learning PowerPoint Presentation by Charlie Cook
All rights reserved. The University of West Alabama
Eighth Edition
- Chapter Objectives
After reading this chapter you should be able to:
1. Explain why postal mail advertising is an efficient and
effective ad medium.
2. Understand p-mail’s five distinctive features
compared to mass forms of advertising.
3. Appreciate the role of database marketing, data
mining, and lifetime-value analysis.
4. Appreciate branded entertainment and brand
placements in various venues (movies, TV, etc.).
5. Appreciate the value of yellow-pages advertising.
© 2010 South-Western, a part of Cengage Learning. All rights reserved. 14–2
- Chapter Objectives (cont’d)
After reading this chapter you should be able to:
6. Recognize the growth and role of video-game
advertising (advergaming).
7. Understand the role of cinema advertising.
8. Appreciate the potential value of various “alternative”
ad media.
© 2010 South-Western, a part of Cengage Learning. All rights reserved. 14–3
- Framework for Various Forms of “Other” Advertising
Table 14.1
• Direct Advertising via Postal Mail
• Brand Placements in Movies, in TV Programs, and Elsewhere
• Yellow-Pages Advertising
• Video-Game Advertising (Advergaming)
• Cinema Advertising
• Potpourri of Alternative Ad Media
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 14–4
- Direct Advertising via Postal Mail
• Postal Mail (P-mail) Advertising
Is any advertising matter the postal service delivers to
Is
the person whom the marketer wishes to influence.
the
Letters, postcards, programs, calendars, folders, catalogs,
Letters,
videocassettes, blotters, order blanks, price lists, and menus.
videocassettes,
• Why Use P-mail
Less expensive than television advertising
Better targeting of messages to desired prospects
Easier identification of prospects who purchased
Easier
advertised product
advertised
© 2010 South-Western, a part of
Cengage Learning. All rights consumers toward mail ads
Favorable attitudes of
reserved. 14–5
- Illustrations of Successful P-mail
Illustrations
Campaigns
Campaigns
Highly Successful
Direct Mail
Campaigns
Stacy’s
Caterpillar 414E The Saab
Pita Chip
Industrial Loader 9–5
Campaign
Campaign Campaign
(Consumer Packaged Good)
(B2B) (Consumer Durable Good)
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 14–6
- P-mail’s Distinctive Features
Targetability
Accountability
Measurability
Efficiency
Flexibility
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 14–7
- What Functions Does P-mail Accomplish?
• P-mail Campaigns Can:
1. Increase sales and usage from current customers
2. Sell products and services to new customers
3. Build traffic at a specific retailer or Web site
4. Stimulate product trial with promotional offers and incentives
5. Generate leads for a sales force
6. Deliver product-relevant information and news
7. Gather customer information that can be used in building a
Gather
database
database
8. Communicate with individuals privately to minimize the
Communicate
likelihood of competitive detection
likelihood
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 14–8
- The Special Case of Catalogs
• Effects of Catalogs
Two-thirds of recipients visit cataloguer’s web site
Sales to catalog recipients are 150% greater
Catalog recipients buy more items and spend more
Catalog
money
money
• Advantages of Using Catalogs
Saves time No fear for security
No shopping pressure Ease of purchasing
No
Comparable goods Attractive guarantees
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 14–9
- Growth in Catalog Marketing
Factors in the Slowdown
in the Growth Rate of
Catalog Marketing
Waning interest Increased cost of Third-class postal
in catalogs catalog marketing rates increases
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 14–10
- Audiovisual Advertising
• Audiovisual Advertising
Audiovisual
Involves the use of electronic devices to present
Involves
audiovisual advertising messages captured in the
form of videotapes, CD-ROMs, or DVDs.
form
Appears to be both more effective and less expensive
Appears
than print advertising delivered via direct mail.
than
Research shows customers are less likely to throw
Research
away these mailings than a brochure or other printed
material.
material.
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 14–11
- The Use of Databases
• Benefits of an Up-to-date Database
Directs advertising efforts to the best prospects for a
Directs
company’s products or services
company’s
Offers varied messages to different groups of
Offers
customers
customers
Creates long-term relationships with customers
Enhances advertising productivity
Provides the capability to calculate the lifetime value
Provides
of a customer or prospect
of
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 14–12
- The Use of Databases (cont’d)
• Customer Lifetime Value
Is valuing each present or prospective customer is
Is
viewed not as an address but as a long-term asset
viewed
Is the net present value (NPV) of the profit that a firm
Is
could realize on average new customer during a
given number of years
given
• Augmenting the Lifetime Value of Customers
Increase the retention rate
Increase the referral rate
Enhance the average purchase volume per customer
© 2 Cut direct costs for distribution channel
010 South-Western, a part of
Cengage Learning. All rights
Reduce marcom costs
Reduce
reserved. 14–13
- Customer Lifetime-Value Analysis
Table 14.2
Note: Discount rate assumes an interest rate of 20 percent: D = (1 + i)n
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 14–14
- The Use of Databases (cont’d)
• Database Mining
The computerized process of discovering hidden facts
The
(i.e., revealing relationships among customer buying
behavior variables) contained in a firm’s databases.
behavior
• Database Manipulation and Mail Targeting
R-F-M system of point values
Recency of a customer’s purchase
Frequency of a customer’s purchases
Monetary value of a customer’s purchases
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 14–15
- The Use of Databases (cont’d)
• RFM System in Application
Testing effectiveness:
Categorize customers into quartiles or quintiles cells
Take a representative random sample from each cell
Distribute a catalogue, brochure or other p-mailing
Provide sufficient time for sampled customers to respond
Provide
Determine response rate and average expenditure per cell
Project these statistics to full membership
Based on response-rate and average-expenditure and with
Based
knowledge of the cost of distributing the mailing, calculate
whether this mailing is a profitable proposition
whether
Decision rule: Target direct mailing only to those cells whose
© 2010 South-Western, a outstrips mailing expense
part of
revenue potential
revenue
Cengage Learning. All rights
reserved. 14–16
- Brand Placements in Movies
Brand
and TV Programs
and
• Brand Placement (Branded Entertainment)
Shows evidence of limited but growing effectiveness
Builds brand awareness and enhances recall
Builds
Provides a peripheral route of persuasion
Provides
Is low risk in that it:
Is less intrusive that ads
Is less like to be rejected by younger consumers
Enhances the brand image when appropriately placed
Can be detrimental if placement control is lost
© 2 Can be difficult to part of
010 South-Western, a calculate its effectiveness and ROI
Cengagebecoming All rights
Is Learning. more expensive
reserved. 14–17
- Brand Placements in Movies
Brand
and TV Programs (cont’d)
and
• Factors determining the value of a brand
Factors
placement:
placement:
The amount of onscreen time and foreground or
The
background positioning of the brand in a scene
background
Whether characters use the brand, mention it, and
Whether
exclaim its virtues
exclaim
Whether the brand appears during an important plot
Whether
point
point
• Younger consumers appear to be the most
Younger
© responsive to brand placement in movies
responsive
2010 South-Western, a part of
Cengage Learning. All rights
reserved. 14–18
- Yellow-Pages Advertising
• Yellow Pages
Is an online and print ad medium for both local and
Is
national advertisers that 60% of consumers use
weekly to:
weekly
Save time when they are seeking a product or service
Save
supplier and are prepared to make a purchase
supplier
Save energy and money
Find information quickly
• Typical Users
Are in the 25-to-49 age category
Are college educated
© 2010 South-Western, a part of
Have household incomes of $60,000 and up
Cengage Learning. All rights
reserved. 14–19
- Yellow-Pages Advertising (cont’d)
• Distinguishing Features of Yellow-Pages
Distinguishing
Advertising
Advertising
Ads actively sought by consumers
Quality of ad placements determined by ad size and
Quality
long-term participation of advertisers
long-term
Creative limits on ad format and for entire year
Annualized method of purchasing ad space
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 14–20
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