Instructor Solution Manual For Advertising & Promotion 8CE Michael Guolla, George E. Belch, Michael by StudyGuide

Instructor Solution Manual For Advertising & Promotion 8CE Michael Guolla, George E. Belch, Michael A. Belch Chapter 1-19 Chapter 1: Integrated marketing Communication Chapter Overview This chapter provides an overview of advertising and promotion. The first section summarizes how marketing communication conveys marketing mix decisions. The promotional mix is introduced, and the firms involved in promotion planning and execution are highlighted. This chapter introduces integrated marketing communications (IMC) and discusses its evolution, a renewed perspective, and importance. Most marketers understand the value of strategically integrating the communication functions rather than having them operate autonomously and so this provides a foundation of the book’s IMC perspective. A model of the IMC planning process is examined to illustrate the content of a promotional plan. Finally, the organization of the text that is consistent with the planning process is summarized. Learning Objectives 1. Describe the importance of marketing communication within the marketing mix. 2. Identify the content of the promotional mix - advertising, sales promotion, public relations, direct marketing, digital, and personal selling – and summarize their purpose. 3. Illustrate the concept of integrated marketing communications (IMC) by distinguishing its evolution, renewed perspective, and content. 4. Explain the IMC planning process model and express the steps in developing a marketing communication program. 5. Identify how the IMC planning process is continued throughout all chapters. Chapter and Lecture Outline I.

MARKETING COMMUNICATION

This section reviews the definition of marketing and illustrates how advertising and promotion communicates the remaining elements of the marketing mix to support the AMA definition. A

Marketing— Most students have had a marketing course; however, it is helpful to remind them of definition of marketing. The American Marketing Association defines marketing as: the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. A description of marketing should include a summary of the activities involved in the marketing process and the different types of companies that use marketing extensively, including both profit and nonprofit organizations. It is important to indicate that each element of the marketing mix includes several decisions. This reminder leads the way to identifying the text’s scope. The marketing mix point highlights that marketing communication is responsible for drawing attention to product, price and distribution elements in the message received by the audience.

Communicating Product—an organization exists because it has a product, service, idea or cause to offer. Discussion can focus on the value offered by the product and the fact that goods and services offer attributes and benefits that satisfy needs. Benefits are communicated as functional based on their features or attributes. They are also subjectively claimed in ads based on performance. And they are Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-1

communicated emotionally through product consumption. These emotions are positive or negative and are psychologically or socially based. Instructors can show ads that demonstrate these differences since they are the heart of message development and delivery since promotional planners have complete control in deciding which approach to influence consumers. Communication for brand identity is important with respect to brand name, brand logo, brand tagline and packaging. Ads usually identify the brand characteristics clearly to encourage recognition at the point of purchase where decisions are made. Communicating all facets of the product is expected to contribute to brand equity; an intangible asset of added value or goodwill that results from the favorable image, impressions of differentiation, and/or the strength of consumer attachment to a company name, brand name, or trademark. A discussion of the overall assessment of brand can ensue with reference to the data in the brand exhibits. Other brand outcomes are identified (i.e., experience, attachment, love), and instructors can draw on these to see if advertisers are fostering different brand related impressions upon consumers. C

Communicating Price—the price decision of the marketing mix refers to what consumers give up in exchange for a product. Marketing managers are concerned with establishing a price level, developing pricing policies and monitoring consumers’ and competitors’ reactions to market prices. From a marketing communication standpoint, price is often a key piece of information in an ad or is the main selling message. Ad messages are intended to influence consumers knowledge of product category price points and contributes to consumer reference prices.

Communicating Distribution—marketing channels or the place decision of the marketing mix refers to the set of interdependent organizations involved in the process of making a product or service available to customers. The importance of resellers in marketing and promotional strategy should be introduced. Attention should be given to the need to develop promotional programs for the trade or resellers to encourage them to stock and promote a product.

Communicating Value—all marketing activities and marketing communication decisions are designed to enhance and or communicate customer value as conveyed in the AMA definition. Instructors should show examples where there are notable consumer costs beyond economic and how brands communicate value.

II.

THE PROMOTIONAL MIX

Promotion is the coordination of all seller-initiated efforts to set up channels of information and persuasion. Promotion is the communication function of marketing mix as most of an organization’s communication occurs through a carefully planned and controlled program that utilizes elements of the promotional mix. The promotional mix should be defined and the function of each promotional mix element can be discussed along with its advantages and disadvantages. A.

Advertising—paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor. Advantages of advertising: 

cost-efficient way for communicating, particularly with large audiences.

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cost-effective communication of a controlled message (what, when, how, where) if audiences process the message and the message is appropriate for that audience.

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valuable for creating and maintaining communication effects like brand equity by creating images and symbolic appeals.

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flexible application for all sorts of products, market situations, channel members, and target audiences that works with other IMC programs.

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advertising occurs in consumer markets (national, retail/local, direct response), and business and professional markets (industrial, professional, trade).

Disadvantages of advertising: (not in the text)

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cost of producing and placing ads is very high in some media like TV but is offset with inexpensive Internet media exposure.

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difficult to determine advertising effectiveness.

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credibility and image problems associated with advertising.

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numerous ad exposures from multiple brands and product categories have created clutter resulting in concerns of weaker or minimal consumer attention.

Sales Promotion—marketing activities that provide extra value or incentive to the ultimate consumer, or retailers and distributors. Advantages of sales promotion: 

provides incentive to consumers or trade members to purchase or stock/promote a brand.

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way of appealing to price sensitive consumer

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way of generating extra interest in product or ads.

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easily measured direct effects are possible compared advertising.

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can be used as a way of building or reinforcing brand equity.

Disadvantages of sales promotion: 

companies become too reliant on sales promotion and focus on short run results.

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some sales promotions do not contribute to brand image or long-term brand equity.

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consumers become over-reliant on sales promotion that undermine brand loyalty.

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problems with sales promotion clutter as consumers receive many promotional offers.

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sales promotion offerings among competitors lowers margins and price tolerance.

It is important to address the terminology of promotion and sales promotion. In this text the term promotion represents an element of the marketing mix by which firms communicate with their customers and includes the promotional mix elements. However, marketing and advertising practitioners use the term promotion in reference to sales promotion activities. Thus, sales promotion activities in the text refer one specific element of the promotional mix. C.

Public Relations—a corporate communication program designed to enhance the company’s reputation and/or earn public understanding and acceptance of a particular issue. It usually involves a process where management evaluates public attitudes and executes a program of action to earn public understanding and acceptance. In contrast, publicity is the nonpersonal communication that is not directly paid for nor run under identified sponsorship. The distinction should be made between publicity and public relations noting that public relations generally has a broader objective than publicity, as its purpose is to establish and maintain a positive image of the company among its various publics. Publicity is an important communication technique used in public relations however other programs may also be used. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-3

Advantages of publicity: 

credibility of publicity is usually higher than other forms of marketing communication.

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low-cost way of communicating

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often has news value and generates word-of-mouth discussion among consumers.

Disadvantages of publicity:

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lack of control over what is said, when, where and how it is said

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can be negative as well as positive.

Direct Marketing—a system of marketing by which organizations communicate directly with target customers to generate a response and/or a transaction. Advantages of direct marketing: 

consumers are receptive to the convenience of direct-marketed products.

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allows very selective targeting of marketing communications to specific customer segments.

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customized messages fit the needs of specific market segments.

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effectiveness of direct-marketing efforts is easier to assess than other forms of promotion.

Disadvantages of direct marketing:

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unsolicited communication makes consumers less receptive to direct-marketing.

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direct marketing has image problems.

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problems with clutter as direct-marketing messages compete for consumers’ attention.

Digital—digital marketing communication uses interactive media that allows for a back-and-forth flow of information whereby users participate in and modify its form and content instantly. Digital media is used for advertising and communicates or executes all other elements of the promotional mix. Instructors should demonstrate the differences between paid, owned, and earned media within social media and across different content publishers. Advantages of digital: 

used for all integrated marketing communication functions.

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used to target very specific groups of customers with a minimum of waste.

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messages tailored to appeal to the specific interests and needs of the target audience.

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high degree of customer involvement when customers visit a web site or social.

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provide customers with a great deal of product information.

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tremendous creative potential for shopping or influencing brand communication effects.

Disadvantages of internet marketing:

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concern that digital ads are not fully processed by consumers.

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clutter makes it difficult for advertising messages to be noticed and/or given attention.

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audience measurement and effectiveness research are challenging.

Personal Selling—direct person-to-person communication whereby a seller assists and/or persuades prospective buyers to purchase a company’s product or service or act on an idea. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-4

Advantages of personal selling: 

direct contact between buyer and seller allows for more communication flexibility.

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can tailor and adapt message to specific needs or situation of the customer.

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allows for more immediate and direct feedback.

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promotional efforts are targeted to specific markets and customers who are best prospects.

Disadvantages of personal selling: 

high cost per contact

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expensive way to reach large audiences.

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difficult to have consistent and uniform message delivered to all customers.

Participants—the organizations that participate in the integrated marketing communications process are shown to introduce industry members and their responsibilities. However, marketers are also looking for agencies that offer a range of IMC capabilities. The student should become familiar with the players including clients, advertising agencies, media organizations, marketing communications specialist organizations and those who provide collateral services. It is particularly important to note that with the movement toward IMC, marketing communication specialist organizations such as direct response agencies, sales promotion agencies, public relations firms and interactive agencies are increasingly important in the promotional process.

III.

INTEGRATED MARKETING COMMUNICATIONS

The transition from traditional promotional management to IMC planning has evolved over time. These sections provide background information to illustrate the history and current situation. A.

IMC: Evolution—marketers previously built strong barriers around marketing and promotional functions, planning, and managing them separately with different budgets, different views of the market and different goals and objectives. In the 1990s, companies moved toward integrated marketing communications (IMC), which involves coordinating the promotional elements along with other marketing activities that communicate with a firm’s customers. Subsequently, marketers asked their ad agencies to coordinate the use of promotional programs rather than relying primarily upon media advertising. Agencies responded by acquiring public relations, sales promotion, direct marketing firms, and interactive agencies and touting their capability to meet all their clients’ IMC needs. Companies looked beyond advertising agencies and used other promotional specialists to develop and implement their promotional plans. A task force from the American Association of Advertising Agencies (4As) developed one of the first definitions of integrated marketing communications. A concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic direction of a variety of communication disciplines-for example, general advertising, direct response, sales promotion, and public relations- and combines these disciplines to provide clarity, consistency, and maximum communications impact.

IMC: Renewed Perspective—One leading IMC scholar suggests that IMC has reached the stage of being a strategic business process due to multiple audiences for communication and demands placed upon marketing communication to measure its outcomes clearly for accountability. This point raises the issue as to whether IMC is legitimately a new concept and business activity or new terms to describe previous promotional practices. Instructors can allow for debate on this point, although students may not appreciate the subtly of the issue early in the course. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-5

IMC: Audience Contacts—An IMC perspective encourages planners to consider a variety of target audiences and determine the appropriate promotional programs for delivering a relevant message. A successful IMC program requires that a firm find the right combination of promotional programs and techniques and coordinate their use. The focus of market-driven companies is on developing and sustaining customer relationships. Marketers now focus the lifetime value of a customer because studies have shown that reducing customer defections increases profit.

IMC: Paid, Owned, Earned—IMC programs rely on the paid, owned, earned idea of media exposure found in advertising. Figure 1-6 provides ideas to consider how each program works within an IMC program effectively and efficiently. In particular, instructors may wish to contrast the paid, owned, earned characteristics of social media to illustrate the point that a social media promotional program should be articulated clearly as to what will occur for all three parts.

INTEGRATED MARKETING COMMUNICATIONS PLANNING

It is useful to explain the Integrated Marketing Communications Planning Model presented in Figure 1-7 and the supporting details in Figure 1-8. The steps are consistent with the content of an IMC plan and are consistent with the organization of the text. Some material is a review from introductory marketing, but there are additional details that students need guidance with. Instructors can relate the content with the assigned project of the course. V

IMC PLANNING: ORGANIZATION OF TEXT

This begins a continuing reprise throughout the book as a concluding section for all chapters to illustrate how some of the content can be applied to IMC planning. To illustrate the approach, Chapter 1 describes how the book is organized around the planning framework presented in Figure 1-7. Teaching Suggestions This initial chapter provides students with an overview of advertising and promotion. It is useful to define the six elements of the promotional mix, discuss their importance, and discuss their advantages and limitations. Instructors should introduce the concept of integrated marketing communications and discuss its evolution. It is important to review the factors that underlie the adoption of an IMC approach to advertising and promotion. Instructors might also spend time discussing the pros and cons of IMC. During an initial lecture there is latitude to discuss issues concerning each promotional mix variable. For example, perspectives regarding advertising such as its social effect might be noted along with common complaints and criticisms of advertising. Students can be encouraged to evaluate and appraise arguments for and against advertising and other promotional mix elements toward the end of the course. Thus, the final chapter evaluates the regulatory, ethical, social and economic aspects of advertising. It is important in either the first or second lecture to cover the integrated marketing communications planning model in some detail. This text is built around this model and it provides the student with the “big picture” as to the decision sequence and considerations involved in the development of an advertising and promotional program. It is also important to communicate to students that advertising and promotion management is a process. A great deal of analyses, as well as the coordination of the promotional mix elements, is required to develop an effective program of marketing communications that can be integrated into an organization’s overall marketing strategy. Vignette 1.

Telus is a unique example of a successful and long-lasting integrated marketing communication program. Its imagery spans over twenty years for messages communicated in every single element of its IMC program for multiple goods, services and causes. As noted in the vignette, Telus implemented the imagery for both consumer and business markets. The question invites students to suggest a reason why its imagery is so appealing. The importance of this vignette is to see the link between the marketing strategy of building the brand in multiple domains and being a cohesive feature to link all Telus marketing communication activities. The critters resonate with consumers emotionally in so many ways to ensure continued awareness and strengthening other brand communication effects. Instructors can explore this point further in terms of equity, experience, attachment and love. Instructors could provide other example of long-lasting campaigns to encourage students to consider brand messages that will sustain over time. McDonald’s approach with digital media is an example where a major brand exerted greater control of message delivery after experiencing difficulties with its initial social media experiences. By addressing consumers’ questions, McDonald’s directed the content of its message in a way that attempted to clearly focus on the quality of the food, something it had done significantly for a considerably time period. It also attempted to reinforce its brand by showing that it practiced marketing honestly and ethically with its truthful behind-the-scenes stories. IMC Perspective 1-1 1.

What aspect of integrated marketing communication did BMO implement with the Financial Fairness campaign? Chapter 1 shows that there are many types of marketing communication requiring promotional planners to consider all of them and ensure that they are the right ones to achieve important objectives. An important criterion to reinforce is that students should try to make a link of the decisions to how they might have been most effective. This chapter begins the idea permeating the book that it is important to understand how all marketing communication decisions are evaluated for effectiveness. Instructors should make sure students understand how the programs contribute to marketing, behavioural and communication objectives. Depending on the IMC program selected, students should be able to see the link of different IMC agencies as offering services. The BMO example is springboard example to illustrate the above point very well. It indicates that BMO likely delivered the video messages in many types of media due to their varying lengths. Longer videos work very well with owned media (BMO YouTube channel), the standard thirty-second video is perfect for TV, and the shortest videos work well for paid social media (Facebook). BMO logically is using advertising and digital for its campaign advertising. The sign-up aspect is also using digital but in a different way as it implies public relations. The topic and method of telling the story suggests that the approach would likely motivate several people to forward the ad messages or post messages of support indicating a substantial degree of expected earned media exposure.

IMC Perspective 1-2 1.

What direction could the message go in a subsequent phase to encourage more egg eating beyond breakfast? Instructors might consider showing Figure 1-6 to spark student ideas. Instructors could summarize the IMC activities described in the perspective and ask for new ones the brand could try. It is important to move the discussion to the content of Figure 1-7 to indicate that the recommendation should have clear objective which should also prompt recognition of who the idea is targeting. The perspective indicates plans to move light volume users to be medium volume users. Students could use this as a starting point and overlay other segmentation variables such as age into a clearer target. This is starting move into Chapter 3 material, but it allows instructors to indicate the direction of the course. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-7

Answers to Review Questions 1.

Why is marketing communication important for communicating value to consumer? Communicating value is a central tenet in the definition of marketing, so it is imperative for marketers to use marketing communication programs effectively to influence consumers’ value perceptions via product, price, and distribution messages. Messages about product include how the product fulfills needs via its characteristics, brand identity, and brand equity. Marketing communication shows how consumers receive value (e.g., Keg example of offering superior dining and food quality). Brand identity is a combination of the name, logo, symbols, and packaging design that is experienced at any point of contact that consumer has with a brand via marketing communication. This assists consumers in understanding how it fulfills their needs and contributes greater value. The combined effect of these two points contributes to brand equity where consumers see a brand as superior. Marketers go beyond traditional media advertising to communicate value. Consumers have contact with or receive information about a brand through in-store media such as point-of-purchase displays; articles they read, see and/or hear in the media. Companies build brands that via interactive media like web sites to communicate with customers or messaging to mobile phones. Companies are also turning to branded entertainment as a way of connecting with consumers and making their products and services part of entertainment content.

How do smartphone brands use each marketing communication program for communicating messages? Advertising on TV allows smartphones to set an overall image for the brand, and these video messages are linked anywhere virtually to allow greater exposure to digitally-based target audiences. Additional product or service messages communicate salient attributes or benefits at the most relevant point in time (e.g., new featured with updated phone launch). Price promotions are featured on older models when updated smartphones are released. Often smartphone brands are involved with public relations activities for noteworthy causes to enhance their profile. As expected, smartphone brands have an extensive digital presence with websites for comparison purposes and customer service explanations. Social media communication for a variety of purposes have occurred in which student can readily identify and explain their potential effectiveness. This question permits the opportunity to explore a complete IMC plan for an individual brand to see all the decisions in action for a product that it seems virtually all students have experience with.

What are the reasons why marketers are taking an IMC perspective to their advertising and promotional programs? IMC differs from traditional advertising and promotion in that it recognizes the value of using a variety of communication programs rather than just relying primarily on media advertising which might be supplemented with tactical promotions. IMC involves coordinating all a company’s promotional elements, as well as marketing activities, in a synergistic manner to send a consistent message to the target audience. While traditional advertising relies primarily upon the use of ads through the mass media to communicate with the target audience, IMC recognizes that consumers’ perceptions of a company and/or its brands are a synthesis of the bundle of messages or contacts they have with the firm. These contacts include media advertisements, packaging, sales promotion, messages received through interactive media such as web sites and other digital media, point-of-purchase displays, and other forms of communication. The IMC approach seeks to have all of a company’s marketing and promotional activities project a consistent, unified message and/or image to the market and consider which particular element of the promotional mix is the most effective way to communicate with customers in the target audience.

Similarities include the need for a situational analysis, setting of objectives, the development of programs that have both strategic and tactical elements, and finally the implementation and control phases. The differences include the domain (communication vs. marketing mix), the specificity of the situation analysis is related to the communication problem or opportunity. 5.

How is the structure of the book consistent with the content of an IMC plan? An IMC plan should begin with an understanding of advertiser’s agency partners (Chapter 2), and a decision of the target audience (Chapter 3) and an understanding of how the audience would receive the message (Chapter 4) so that the brand manager can set IMC objectives (Chapter 5) to direct the brand positioning strategy (Chapter 6). This strategic direction guides the creative strategy (Chapter 7) and creative tactics (Chapter 8) of the message, which is evaluated (Chapter 9), and planned (Chapter 10) and delivered via media (Chapters 11, 12, 13), or strengthened via sales promotion (Chapter 14), public relations (Chapter 15), directed marketing (Chapter 16) and the digital (Chapters 17 and 18). Ethical guidance of all decisions of the plan is summarized (Chapter 19).

Answers to Application Questions 1.

Consider how a university or college communicates value in its marketing communication to its prospective students and current students. In what ways are the two approaches similar or different? Communication to current students is done extensively via online portals. Information regarding courses, educational resources etc. are at students’ fingertips on a second-by-second basis. Any activities of culture, sport or education origin are easily obtained via numerous digital avenues (website, social media). Essentially, marketing communication via students is a strong representation of what occurs with long-term, repeat purchasing consumers in a relationship marketing setting. In contrast, communication to prospective students occurs via personal communication via high-school visits and campus visits, direct mail of brochures etc., and online communication to the public portions of the institutions website as students shop around for the best fit for their needs. The idea of this question is for students to see that there are unique messages and media directed to customer and non-customers, although there still remains considerable overlap since an institution would want to project a consistent overall image to both groups.

Identify the marketing communication programs that a favourite brand or performance artist is using. Try to explain why these programs were selected. In what ways did the programs support one another? How did they not support one another? Was each program effective or ineffective? This application question encourages students to put into context all the marketing communication that they would have been most exposed to, and therefore, more likely to be able to apply the concepts of this chapter. Instructors can ensure that students find IMC programs and push them to fully explain how the programs work or do not fit together. The question also begins the task for students to try and figure out what effectiveness is and how to estimate it prior to seeing the actual concepts in chapters 4 and 5.

Find one example where all promotional programs of a brand have the same look and feel, and find another example of a brand where the promotional programs have a different look and feel. Why did these decisions occur, based on relevant situation analysis variables? Instructors can find good examples to show such as Telus and Koodo where there is consistent imagery for the phone service. Telus is especially good to reference since it had a consistent nature creative for its phone, but has now decided to us different creative for its TV service and other aspects of its marketing communication in terms of public relations and customer service. Thus, this shows how some parts of the plan are consistent Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-9

while others are different. The explanation is largely due to different competitive spaces, the nature of consumer adoption of technology, and the company’s maturity as it develops into a full-fledged telecommunications organization. 4.

Why is it important for those who work in the field of advertising and promotion to understand and appreciate all IMC programs, not just the area in which they specialize? Marketers use many promotional programs to communicate with their customers. The promotional mix elements are viewed as component parts of an IMC program. An individual promotional activity such as advertising or sales promotion cannot be managed without considering its relationship to other promotional mix elements. Individuals working in various areas of advertising and promotion are expected to understand and use a variety of marketing communication programs, not just the one in which they specialize. For example, advertising agencies no longer confine their services to creating and placing ads. Many agencies are involved in sales promotion, public relations, direct marketing, event sponsorship and other communication areas. Thus, it is important for those who work in advertising and promotion, either on the agency or client side, to understand and appreciate the value and limitations of all the promotional mix elements and how they can be combined to develop an effective program of integrated marketing communications.

How does one of your favourite brands link or integrate its different IMC communication programs? Is it done effectively? Students can address the digital connections here with advertising. For example, what messages and media are used to persuade consumers to investigate online brand communication via social media or websites? Students also might want to observe the connections of the brand’s commitment to a social cause with its social media activities. Similarly, investigations to a contest or another sales promotion might be useful with its connection to Facebook or Instagram. The important point is for students to actively see how brands are connecting their communication for exposure to consumers.

Additional Questions (not shown in text) A. Consider all the marketing communication programs that are used to market a new car that a graduating student might be expected to buy. Explain why each program would be effective to create awareness. Integrated marketing communications is important for marketing automobiles. Many consumers, particularly young people, base their purchase decisions on product related attributes such as price, quality, reliability, durability, and performance, as well as on factors such as style and brand image. A variety of IMC programs are used to provide consumers with information about new cars as well as to create an image that will appeal to the target market for the car. Advertising on television and magazines reinforces an image of a car that is cool, fun, and hip to drive. Direct marketing can be used to build a database of customers who enter a contest on the car maker’s web site and/or request more information about the car. These customers can be sent information about the car and occasionally receive direct mail pieces. The customer can be taken on a virtual journey online to learn more about the car. The car maker can also e-mail a video link to consumers who request more information about the car. The car maker can also generate a considerable amount of publicity through press releases and public relations activities. Finally, promotional efforts can be extended to the dealerships to support the personal selling effort. B.

What is meant by the concept of integrated marketing communications? How might a firm that is using integrated marketing communications differ from one that looks at advertising and promotion in a more traditional way? Integrated marketing communications is a concept of communications planning that involves coordinating the promotional elements and other marketing activities that communicate with a firm’s customers. Companies who use integrated marketing communications recognize the added value of a comprehensive plan that Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-10

evaluates the strategic directions of all communication disciplines, and combines them to provide clarity, consistency, and maximum communications impact. Companies who take the IMC approach identify the most appropriate and effective methods to contact and communicate with their customers. In contrast, companies that view advertising and promotion in a more traditional way build barriers around marketing functions and plan and manage them separately with different budgets, different views of the market, and different goals and objectives. These companies may be sending different messages to the market through their marketing and promotional activities or relying primarily on one promotional mix element such as media advertising. C.

What are audience contact points? Select a company or brand and discuss the various contact points which marketers can use to reach consumers of this product. Audience contact points are each opportunity the consumer sees or hears about the company’s product/brand or have an experience or encounter with it. These contact points can be created by the company and include planned messages delivered through media advertising, packages, collateral materials, in-store displays, and public relations activities. They also can come from interactions with the brand that occur during the process of buying or using the brand as well as from information that consumers receive from word-of-mouth messages. Marketers determine how important the various contact programs are for communicating with their target audience and how they can be combined to form an effective IMC program. Students should be encouraged to select a company or brand and discuss the ways consumers meet it. They might use IMC Contact programs shown in Figure 1-5 of the chapter as a framework for conducting the contact point analysis. Instructors might also ask them to discuss which contacts points are most effective or influential in shaping consumers’ impressions of the company or brand.

D. Sports sponsorship, a public relations program, continues to grow at an increasing degree in the IMC plans or major brands. Explain how this is a good investment of marketing resources. Publicity refers to nonpersonal communication regarding an organization, product, service, or idea that is not directly paid for nor run under identified sponsorship. Public relations is a management function that among other things attempts to control and manage the nature of the publicity an organization receives. Publicity and public relations differ from other of the promotional mix elements since they are supportive rather than being the lead elements, although there are exceptions. Sports sponsorship is advantageous since it generally has the benefits of both public relations and publicity. The imagery with all the communication of the sponsorship acts positively for public relations purposes while the extensive media coverage provides additional exposure from a publicity perspective. Investing in one program, and having the effects of another makes for a good investment as it increases frequency and possibly reach depending upon the extensiveness of the publicity. E.

Describe how can the Internet is to execute the IMC programs described in this chapter? The Internet impacts the way companies design and implement their marketing strategies and IMC programs. Companies ranging from large multinational corporations to small local firms developed websites to promote their products and services by providing current and potential customers with information, building images for their companies and brands and even selling their products directly. The Internet is a communication channel program to execute all elements of the promotional mix. Companies advertise with banner ads or sponsorships on the websites of other companies or organizations. Marketers offer sales promotion incentives (e.g., coupons) or offer contests and sweepstakes to encourage consumers to visit their web sites to enter them. Companies use the Internet for direct marketing and encourage consumers to visit their websites to view merchandise and to place orders online. Companies use the Internet for publicity and public relations as these activities such as the sending of press releases. Companies also maintain press releases on their web sites which can be accessed by the media and other relevant publics to learn more about these companies and their products and services.

IMC Exercise This exercise is designed to give the student the opportunity to think more about the concept of integrated marketing communications and how it might be used by a company. Choose a specific company and discuss how this firm can use the concept of integrated marketing communications in developing a promotional program for one of its products or services. Students should analyze all of the company’s promotional mix elements including advertising, direct marketing, interactive media, sales promotion, publicity/public relations and personal selling and discuss how each one is used in the marketing communications program. Students should also consider how other marketing mix elements such as the brand name, package, price and other factors communicate with the company’s target audience. Is this company using all the promotion mix programs in its marketing communications program? Are they integrated and sending a consistent image and message? IMC Comprehensive Project The purpose of the IMC comprehensive project is to allow a student (or student teams) develop an IMC plan for a product as they proceed through the course. The text is built around a model of the IMC planning process that is presented in Figure 1-7 that is used as a framework. Students update their plan as each chapter and topic area is covered. This encourages students to apply the course material and develop an appreciation for the process a product manager, account executive or marketing communications manager experiences. The project will also help students gain an appreciation for the sources of information used during the promotional planning process. At the conclusion of the project, each student (or team) should have a detailed notebook containing the plan for their product that is turned in for evaluation. Specific assignments for the IMC project occur with each chapter. IMC Project Assignment for Chapter 1 The assignment for Chapter 1 is to familiarize students with the IMC planning process presented in Figure 1-7. Students should study the IMC planning model so they can gain some insight as to what will be involved in developing the IMC project. Each student or team should choose a national, regional, or local brand a product or service for which they will be developing their IMC plan. Students should submit their choice to the instructor with a brief statement as to why they have chosen this brand. The instructor should approve the choice before beginning the project.

CHAPTER 2: WORKING WITH AGENCIES FOR IMC INSTRUCTOR’S MANUAL Chapter Overview The purpose of this chapter is to familiarize the student with the ways that organizations organize for purposes of developing and executing integrated marketing communications programs. The advertising agency industry is briefly identified. A description of the functions of advertising agencies is provided, as is an explanation of how agencies are compensated and evaluated. The chapter also discusses organizations that provide specialized integrated marketing communication services including direct-response, sales promotion, and interactive agencies as well as public relations firms. It is important for students to understand that a variety of different organizations contribute to the development of a company’s IMC program. Learning Objectives 1. Summarize the advertising agency industry. 2. Identify the services a full-service agency provides to its clients. 3. Describe methods for compensating and evaluating advertising agency. 4. Review the functions of specialized marketing communications organizations. 5. Evaluate issues regarding the agency-client relationship. Chapter and Lecture Outline I.

ADVERTISING AGENCIES

Companies work with agencies to develop their advertising programs since specialized creative skills are required to persuade target audiences. These skills require a team and are usually beyond the skills of most marketing managers. A.

Advertising Agency Decision—Companies employ the services of an external advertising agency or use an in-house agency. For an In-House Agency, companies set up their own internal operation, and the design varies from a small advertising department to a large external agency. In the former, the in-house agency operates as a separate entity, and control advertising and promotional expenditures in millions of dollars. This option is usually chosen so that costs are minimized and control over the agency’s activities is maximized. For the latter, organizations select outside agencies for: (1) the skills offered, (2) objectivity and (3) experience.

Advertising Agency Industry—Figure 2-1 captures the state of the major players in the Canadian advertising agency industry. Most agencies are an amalgamation of other agencies like sales promotion, digital, PR etc. and are part of large international consortiums. Not captured in the table are smaller regional or local agencies that remain independent. However, these firms in Figure 2-1 presumably represent a substantial portion of the money spent on agencies. Instructors can review the background and clients of ad agencies for student interest. Their websites show their work and are generally very creative. New trends highlighted in the chapter can be examined also.

II.

FULL-SERVICE ADVERTISING AGENCY

The section reviews the content of Figure 2-2 that reflects the organizational structure of a prototypical full-service advertising agency. Variation naturally exists. A.

Organizational Chart—Full-service agencies offer clients a full range of services in the following areas: client, planning and research, creative, digital creative, production, specialized (e.g., sales promotion, direct, PR, events), and media.

Client—Account executives serve as the liaison between the agency and client and are responsible for coordinating the agency's efforts in planning, creating, and producing ads.

Planning/Research—full-service agencies provide a variety of marketing services to their clients and maintain departments such as research, strategy, and planning. These departments assist the other services by ensuring that the marketing communication strategy addresses the communication issue accurately.

Creative—agency personnel in this department include artists and copywriters who are responsible for the creation and execution of the client’s advertising messages. Creative services may also include print and broadcast production departments, which are responsible for producing the advertising messages and putting them into final form.

Digital creative—these kinds of specialists are part of marketing communication plans as customized messages for Internet media are required.

Production—dedicated staff may be responsible for the physical development of ads in all or select formats. The traffic department coordinates all phases of production and sees that all ads are completed on time and deadlines for submitting the ads to the media are met.

Specialized—full-service agencies provide additional services clients so that a complete IMC plan can be delivered that includes all programs (e.g., sales promotion, PR, direct, digital).

Media—the media department is very important since clients are consolidating their media buying to save money and improve media efficiency. This department analyzes, selects, and contracts for media space and time on behalf of clients.

Organizational Systems—two types or agency organization structures exist. Under the departmental system each of the agency functions is set up as a separate department and is called upon to perform its specialty for all the agency’s clients. In the group system individuals from each department work together as teams to service a particular account. Clients prefer the group system because agency employees become very familiar with their business, and it ensures continuity in servicing the account. Various managers facilitate expected organizational departments (e.g., accounting, finance, human resources).

III.

AGENCY COMPENSATION & EVALUATION

The services that advertising agencies provide may be compensated in a variety of ways including: A.

Commissions from media—the agency is compensated based on the time or space it purchases for its client, historically 15%. The commission system is criticized since it ties agency compensation to media costs and encourages agencies to rely on commissionable media (i.e., TV) that is more expensive than non-commissionable media. However, some prefer this system because it is easy to administer and forces agencies to compete on advertising creative. A negotiated commission system takes the form of reduced percentage rates, variable commission rates and minimum and maximum compensation rates. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-14

Fee arrangements—the agency charges a monthly fee for its services and credits to the client any media commissions earned in a fixed-fee method, alternatively, the agency credits the media commissions received against the fee in a fee-commission combination method.

Cost-plus agreement—the client agrees to pay the agency a fee based on costs of its work plus an agreedon profit margin. This system requires detailed records of costs incurred in working on a client’s account.

Incentive-based compensation—while there are variations, the agency’s compensation level depends on how well it meets predetermined performance goals for its clients such as sales or market share. This is the basis of the performance by results system adopted in Canada a couple of decades ago.

Evaluation of agencies—the client formally evaluates the agency with financial audits and qualitative audits. These audits could be consistent with the PBR of the incentive system. The text offers reasons as to why agencies lose clients. Current issues of Strategy Magazine are useful in providing the instructor with examples of account changes and the reasons the clients decided to change agencies.

III.

SPECIALIZED SERVICES

In addition to advertising agencies, other organizations provide marketers with specialized services that are important in developing and executing integrated marketing communication programs. Instructors can also review websites of specialized service agencies or review a few new developments shown in the chapter. A.

Creative Boutiques—specialize in and provide only advertising creative services. Because of their specialty of creative ideas, clients look to these agencies for new inspiration to portray their brands or for specific messages to more focused target audiences.

Media Buying Services—work with media companies and package offering to clients to meet their media strategy and tactic decisions.

Sales Promotions Agencies—provide promotional services that include promotional planning, creative, research, tie-in coordination, fulfillment, premium design, and contest/sweepstakes management.

Public Relations Firms—develop and implement programs to manage an organization’s publicity, image, and affairs with consumers and other relevant publics including employers, suppliers, stockholders, government, labour, and the public.

Direct Response Agencies—provide their clients services such as data base development and management, direct mail, research, media services, and creative and production capabilities.

Digital Agencies—develop web sites, Internet ads, and other forms of interactive advertising.

IV.

IMC PLANNING: AGENCY RELATIONSHIPS

A trend in the advertising industry is to combine all the above services under one roof. These one-stop service agencies bring together service providers so that the client needs only to use their firm to receive all required marketing services. Advantages and disadvantages of these arrangements include: A.

Integrated IMC Services—The advantages and disadvantages of the one-stop shop include: Advantages of integrated services: 

Greater control of the promotional process allows for more synergy among each of the communication program elements. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-15



More convenient for clients to coordinate all promotional efforts with one agency.



Agencies with IMC capabilities can create a single image for the client.

Disadvantages of integrated services: 

Synergy and economies of scale are often not achieved by a single agency handling all communication areas.



Internal conflicts often arise within various departments within a large agency over areas such as advertising, public relations, or sales promotion.



Limits client’s ability to take advantage of specialists in IMC areas.

Agency-Client Responsibility—Another topic covered in this section is whether the client or advertising agency should have the primary responsibility for planning and coordinating the IMC process. Most marketers believe it is their responsibility to set strategy for and coordinated integrated campaigns while agency executives see this as their domain. The major barrier is a lack of people in agencies with the broad perspective and skills needed to make IMC work effectively. Internal turf battles, agency egos, and fear of budget reductions are also cited as major barriers to successful integrated marketing campaigns.

Agency-Client Relationships—A summary of recent research on the nature of agency-client relationships is presented with a few survey findings. This material can be selectively used to give an idea as to the present situation.

Teaching Suggestions Students may be interested in working for an advertising agency. This chapter familiarizes them with other major participants in the IMC process. While most students are familiar with advertising agencies, they are less likely to know anything about direct response and sales promotion agencies, public relations firms, and digital agencies. You might note that there are some excellent career opportunities available in these areas. It is important for the instructor to keep up to date with current events. Good sources of information on advertising are publications such as Strategy, Advertising Age, AdWeek, and BrandWeek. For excellent articles and sources of information on sales promotion students should be referred to Promo magazine. Students are usually interested in identifying and seeing current advertisements by various agencies. Most agencies have websites that show examples of their advertising, information about their advertising philosophy, approaches to branding and other IMC content. Vignette 1.

What is your opinion of the creative process Rethink follows for its clients? This question gets to the heart of the matter regarding why advertising is creative. Clearly, there is no right answer, but students have an opportunity to develop arguments as to why Rethink’s approach is successful. Astute students will recognize that creative is a lot of hard work with the generation of 100 creative ideas and that the agency and client require a positive relationship for such a thorough process is to occur. Instructors are encouraged to show Ikea ads to understand why Rethink is so successful with unique creatives.

IMC Perspective 2-1 1.

What ideas from this chapter are inferred from these scenarios? These examples illustrate that clients value the creative talent of the agencies. In addition, the examples show how clients are interested in “one-stop-shop” agencies to handle multiple IMC programs for greater efficiency Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-16

and effectiveness. These items reflect a handful of reasons highlighted in Figure 2-5. Instructors could use this figure as a way of guiding a lecture or discussion on how and why these clients changed agencies. An additional key point for students to realize that some of the most creative communication observed in Canada is the work of marketing suppliers (i.e., agencies) and not the actual managers of the products advertisers. While this is relatively elementary of instructors, it is quite illustrative for unfamiliar students. The question encourages an open-ended debate to generate discussion that hopefully would lead to some consensus on the criteria for selecting creative campaigns. It acts as an entry point for much of the material over the next few chapters and can generate some excitement for the early material in the text and the course. IMC Perspective 2-2 1.

Which agency is the most appealing for a student’s first advertising job? Explain your reasoning. These indie examples show the diversity of the agency industry. The examples also allow students to project their career aspirations in many directions. From another point of view, the projection question lets student see how creative services are delivered from many different avenues. Instructors are encouraged to visit the websites of indie agencies to show their work and illustrate how smaller organization perspectives could be quite fruitful when hiring an agency.

Answers to Review Questions 1.

What types of agencies exist in the advertising industry? Students should realize a few distinctions; internal vs. external, independent vs. conglomerate; Canadian vs. International, local vs. national, full-service vs. specialized, small vs. large. Some of these variables are not entirely independent and the characteristics overlap. Instructors might also highlight agencies specialize in specific types of clients like consumer-market vs. business market, and that some agencies win awards more often than others.

How are the characteristics of a full-service agency contrasted with the characteristics of specialized communication agencies? Full-service agencies provide clients with services including planning, creating, and producing the advertising, account planning, marketing research, developing media strategies and selecting and purchasing media. Some full-service agencies also provide non-advertising related services including strategic market planning, direct marketing, promotional programs, interactive marketing and web site design, and public relations. The importance of the services provided by a full-service agency depend upon the client. Some companies want agencies that are very strong in the creative area and can develop ads that strike a responsive chord with consumers. Companies that are competing in markets where brand image and identity is very important may put a major emphasis on creative capabilities in selecting an agency. Some companies want agencies that are very strong in media strategy and buying and can maximize their media expenditures. Specialized agencies offer services that clients may value over the same service provide by a full-service agency due to stronger competency, such as creative boutiques. These smaller agencies turn out excellent creative work and do not have the bureaucracy and politics of larger agencies. Companies also feel that by working with a smaller creative boutique they can get more attention and better access to creative talent than they would at a larger agency. Another reason a company might use a creative boutique is that there are companies available to handle other parts of the advertising and promotional program. Similarly, media specialist companies provide an important service by specializing in the analysis and purchasing of media time and space. Also, because media specialist companies purchase large amounts of Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-17

time and space, they receive large discounts and can save a client money on media purchases or provide them with more exposure from a media budget. Agencies, as well as their clients, have recognized that it is very difficult to staff and operate a media department that can provide the same level of service as media specialist companies. Thus, agencies have been unbundling media buying from the services they offer clients. 3.

Why is compensating with the performance by results approach optimal in comparison with other methods? Agencies are historically compensated in three ways: through commissions from the media, fee arrangement or percentage charges. Compensating agencies through media commissions occurs when the agency receives a specified commission from the media on any advertising time or space it purchases for the client. Under the fixed-fee method the agency charges a basic fee for all of its services and credits to the client and credits any media commissions earned. Agencies are also compensated through a fee-commission combination, whereby the media commissions received by the agency are credited against the fee. The cost-plus system occurs when the client agrees to pay the agency a fee based on the cost of its work plus some agreed-on profit margin. An improved performance-based system where advertisers use incentive-based systems where agency compensation is tied to performance emerged. The performance measures may include objective measures such as sales and/or market share as more subjective measures such as evaluations of the agency’s creative work. As more marketers adopted an IMC perspective, changes in compensation systems occurred. There are several reasons why companies changed the compensation. One of the major reasons is that companies expected greater accountability from their agencies. Companies feel that if agencies really want to be true partners, they will be willing to share in the sales performance of the product or service with them. For many companies, advertising influences product sales. Incentive-based compensation systems also encourage agencies to look beyond traditional mass media advertising and to consider how other IMC programs that might be more effective in driving sales. There are several reasons why an agency might be reluctant to accept an incentive-based compensation system. A system in which the agency is compensated based on the brand’s performance in the marketplace has the potential to be a fair system but may be fraught with problems as well. If the basis for evaluation is tied to communications objectives (as will be discussed later in this text) the system has may be acceptable to the agency. On the one hand, tying the compensation to market performance measures such as brand share and/or sales could be unfair. As the student will learn later in this text, it is very difficult—if not impossible—to tie market share and sales figures directly to advertising. For example, while the advertising may be working very well, other marketing variables may hinder sales and/or market share performance. Excellent advertising will not compensate for poor product quality, over pricing or a poor distribution system. Thus, if one were to see poor performance of the brand in the marketplace, the advertising agency might be punished for problems beyond their control. On the other hand, agencies see incentive-based compensation methods as a way of differentiating themselves and proving to clients that they are confident in their ability to develop advertising that will have a favorable impact on sales. Since clients are expecting more accountability from their advertising and promotional programs, and agencies may feel that their willingness to work under an incentive-based compensation system will increase their likelihood of getting a company’s advertising business.

What are the similar and dissimilar functions of each of the specialized marketing communication agencies? All agencies share a similar function of providing marketing communication recommendations to resolve the communication issue faced by its client. Each is also tasked with offering a customized service with expertise that may not be readily found elsewhere. Furthermore, each has a responsibility of ensuring that their staff is well versed in the latest trends and tools to provide optimal service. While the core service may be consistent to some degree, each agency offers a specialty that others cannot match, and this specialization suggests different processes for delivering service and a unique skill-set to ensure client satisfaction. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-18

What are the issues of using one full-service agency versus multiple specialized agencies? Some marketers prefer to have all their IMC activities performed by one agency rather than using multiple agencies that specialize in various areas such as direct marketing, sales promotion, interactive marketing, and public relations. These companies feel that by having all the IMC functions performed by one agency makes it easier to develop and implement a consistent and uniform program where everyone is working with the same information and toward the same goals and objectives. They also feel that giving one agency control of entire IMC program achieves greater synergy among each of the communication elements. It also makes it easier for the client when all the promotional elements such as advertising, direct mail, event marketing, sales promotion, interactive marketing, and public relations are handled by one large agency.

Answers to Application Questions 1.

Figure 2-1 summarizes the main divisions within each international agency conglomeration. Visit the website of each to see what other agencies that are part of the overall organization. This Internet application question encourages students to investigate and see what creative work is done by different agencies internationally. This task has a language constraint for an individual student but classes with multi-lingual students, instructors could ask students to review the creative work from different countries to see how the messages vary by culture. Alternatively, the variation of many websites might indicate differences in the types of services offered or unique examples from other aspects of promotion. For example, perhaps patterns emerge on how different agencies produce digital work across different countries.

Using Figure 2-1 as a guide for different agency names based in Canada, examine the websites of different types of marketing communication agencies. Using the websites as the main source of information, identify which types of services each agency offers. This Internet application question encourages students to investigate and see what creative work is done by different agencies. In doing so, the services offered by each should be readily seen, thus demonstrating what is occurring in the field. The part of the questions suggests to students early on that they can and should be thinking critically of all marketing communication recommendations that they observe while studying this material.

Which type of compensation system that an agency faced most often from its clients is an environment where a young advertising graduate would most like to work? This is a projective question where students could be describing where they would like to work in the industry. Some might like the pay by performance approach since they enjoy the added pressure and this system places on the creative supplier. Presumably, the environment might be a bit more entrepreneurial and offer great opportunity for career advancement. Others who have certain skills may appreciate the fixed fees, noting that they would like to be recognized for producing their work. Whatever the answer, the key point is for student to look at all facets of how an agency operates to decide where they may like to consider working.

Using Figure 2-1 as a guide for different agency names based in Canada, examine the websites of different specialized marketing communication agencies. Using the website as the main source of information, identify which type of services each type offers. This exercise is an opportunity to achieve the goal of introducing students to all sources of marketing communication services. It is much like question 1 and can be a useful exercise for in-class discussion or minipresentations where students showed each other the work of different agencies.

Given the evaluation of different agencies in the above questions, is the use of a full-service agency or the use of multiple specialized agencies the recommended approach for smartphone brands? For breakfast cereal brands? For energy drink brands? Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-19

Multiple agencies could be suitable for smartphone brands since there are numerous target audiences to direct marketing communication towards across a multitude of segmentation variables with a product still in a growth phase. This could suggest more focused campaigns requiring customized IMC programs to provide a convincing message. Breakfast cereal is a mature product category with less opportunity or need for multiple target audiences. Combined with the fact that many brands have existed for decades, a single agency with one point of contact for all marketing communication may be more suitable. Energy drinks present and interesting option to consider both options, however, in the case of Red Bull and all their varied marketing communication activities, it suggests a multiple agency approach. While the Sid Lee vignette mentions the agency’s involvement with Red Bull the vast international operations of Red Bull would suggest it using additional agencies. Additional Questions (not in text) A.

Discuss the reasons why traditional advertising agencies have been developing IMC capabilities. What changes might these agencies have to make to improve their service? IMC capabilities are developed in agencies because their clients are shifting their promotional dollars away from mass media advertising to other areas of marketing communication. By expanding their capabilities, traditional agencies can offer a full range of IMC services and provide a total communications solution to their clients. By expanding their IMC capabilities and services, traditional agencies can also make money from other areas of their clients promotional spending. The greatest change that traditional agencies must make to improve their IMC capabilities is to develop or acquire expertise in these other areas. Traditionally agencies have been experts in areas related to advertising including creative and media. Agencies have been acquiring these capabilities by purchasing companies such as interactive agencies, public relations and direct marketing firms or promotional agencies. Others have been working to develop these IMC skills internally through their hiring and training processes. The decision as to whether to expand service offerings may not be as easy to make as one might wish. The changes in the advertising marketplace—that is monies shifting from advertising to direct marketing, promotions and other areas may necessitate this expansion just to survive. Certainly, the trend, even among smaller agencies, to provide these services is evidence that they recognize that they need to bring these monies “in house.” Beyond the requirement of the agency side, the client is now becoming more sophisticated and demanding. These clients are now recognizing the need to provide an integrated communications mix, and if it is not provided by their agency they will seek such services elsewhere.

Discuss the pros and cons of using an in-house agency. What are some of the reasons why companies might change from using an in-house agency and hire an outside agency? Some of the reasons why firms use in-house agencies include: (1) cost savings; (2) control; and (3) increased ability to coordinate marketing and promotional activities. Negative aspects include: (1) internal employees may have less experience and inferior skills than their external counterparts; (2) they may be less objective about the product and its capabilities; and, (3) they may be less flexible with respect to what they are willing and able to do with the product and/or brands programs. Companies often use an in-house agency when they have sufficient and capable staff to conduct the advertising and promotional activities themselves; they have a very large advertising and promotional budget and wish to save the costs of fees and commissions; and/or when they believe that the ability to coordinate and control the promotional activities is more feasible with this design. Companies change from using an in-house agency and hire an outside agency for various reasons. Marketers feel that the use of an outside agency provides greater objectivity with respect to the advertising. When an inhouse agency is used, management may get too close to the advertising process and product and lose its objectivity when evaluating the ads. Outside agencies can provide a more objective perspective on the market Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-20

and business that is not subject to internal biases and politics. Companies often move from in-house to outside agencies as they become larger and their advertising and other marketing communication needs become greater. Rather than continuing to expand the in-house agency, companies will move to using an outside agency that has the multiple services and expertise needed by the company. It should be noted that perhaps the major reason why outside agencies are used is that they provide the client with the services of highly skilled individuals who are specialists in the advertising area. Outside agencies also offer more flexibility to an advertiser as they can always switch agencies and hire a new one if they are dissatisfied with the work being done. It is much more difficult to terminate an in-house agency and hire new personnel to replace them. C.

Discuss the reasons why marketers switch advertising agencies. Find an example of a company that has recently changed advertising agencies and analyze the reasons given for the change. The relationship between a client and an agency is influenced by a variety of factors. These include perspectives on compensation policies, the demands clients place on agencies, the level of service the agency provides, the personalities of agency and client personnel, the performance of the client’s product or service, the perceived quality of the agency work in various areas (including account planning and management, creative, media, use of non-traditional media), and changes in the competitive situation. Changes in top management of a client may also affect the agency client relationship. New management may prefer a particular agency or certain approach to advertising and promotion which can affect the client’s relationship with the agency. An advertiser may decide to switch agencies for a number of reasons. These reasons can apply to long-term clients as well. When marketers are having problems such as stagnant or declining sales or losses in market share they will often look to advertising. Often the problems are blamed on advertising agencies. In the competitive world or advertising, agencies are always looking for new business and major advertisers know they can attract a great deal of interest and attention when they put their accounts up for review.

IMC Exercise Find several examples of companies who have switched advertising agencies recently. Conduct research using sources such as Strategy Magazine, The National Post, Advertising Age, AdWeek and The Globe and Mail to determine the reasons why the company decided to change agencies and their rationale for choosing their new agency. Discuss the implications of your findings with respect to client-agency relationships. Find examples of advertising and other promotional programs that were developed by the old agency and examples of ads developed by the new agency. Do you think the advertising campaign and messages being developed by the new agency are better and/or more appropriate for the company than those of the old agency? Why or why not? IMC Comprehensive Project The assignment for this chapter is for the students to determine how they will organize for advertising and promotion both internally and externally. IMC Project Assignment for Chapter 2 Your assignment at this stage of the project is to determine how you will organize your company for advertising and promotion. You must develop an internal organization chart and specify whether you will use an in-house agency or hire an outside agency. If you decide to hire an outside agency you should specify what type of criteria you will use for selecting an agency. Do you plan to use a full-service agency or a creative boutique? What type of agency compensation system do you plan to use and why? How will you evaluate the performance of the agency? Attention should also be given as to whether you will be using any specialized marketing communication services such as direct-response agencies, sales promotion agencies and public relations firms. Would you prefer to use a large agency that has all these integrated services capabilities? Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-21

CHAPTER 3: CONSUMER BEHAVIOUR & TARGET AUDIENCE DECISIONS INSTRUCTOR’S MANUAL Chapter Overview The purpose of this chapter is to review consumer behaviour and to demonstrate how knowledge and understanding of the consumer can be used in developing promotional decisions. This chapter utilizes the consumer decision-making process model as a framework for examining consumer behaviour. Attention is given to the three major variations in the consumer decision-making process: routine response behaviour, limited problem solving and extended problem solving. Consideration is given to how advertising and promotional strategies differ depending on the type of decision-making process consumers are using. The chapter includes a description on how to make the initial decision of a promotional plan, namely, the target audience. It reviews the use of segmentation to determine the most appropriate profile of the target audience and highlights the significance of using current purchase behaviour as the key segmentation variable to initiate this decision. Learning Objectives 1. Describe the consumer decision-making process and how it relates to marketing communication. 2. Investigate the target audience decision based on the use of segmentation variables. 3. Identify the options for making a target audience decision for marketing communication. 4. Express why a profile of the target audience is important for message, media, and IMC decisions. Chapter and Lecture Outline I.

CONSUMER DECISION-MAKING PROCESS

The instructor should point out that a successful marketing communication program begins with an understanding of consumers. Consumer behaviour is defined as the process and activities that people experience when searching for, selecting, purchasing, using, and evaluating products to satisfy their needs and desires. The consumer purchase decision process of Figure 3-1 consists of sequential steps that a buyer experiences when purchasing a product (need recognition, information search, alternative evaluation, purchase decision, post-purchase evaluation). While not shown, consumers may back-track to other stages, the post-purchase eventually returns to the need recognition stage, and the post-purchase evaluation can be continuous and complex, especially with considerable online behavior manifested in social media. When describing the stages of the model, instructors should discuss what occurs at each and how advertising and promotion influences consumer decision-making. A.

Need recognition—the first step in the consumer decision-making process is need recognition, which is caused by a difference between the consumer’s ideal state and actual state. The way a consumer perceives a need and becomes motivated to solve a consumption problem will influence the remainder of the decision making process. To better understand the reasons underlying consumer purchases, marketers develop considerable attention to examining motives or factors that compel or drive a consumer to take a particular action. One approach to understanding consumer motivation is the classic theory of human motivation popularized by Maslow. His hierarchy of needs postulates five basic levels of human needs: physiological needs, safety needs, social/love and belonging needs, esteem needs, and selfactualization needs. The implications of Maslow’s hierarchy for developing advertisements that appeal to different types of needs should be discussed.

Information Search—the second step in the consumer decision making process is information search. Internal search involves a scan of information stored in memory to recall past experiences or knowledge regarding purchase alternatives. External search involves go to outside sources to acquire information such as personal sources, marketer controlled sources, public sources, or through personal experiences such as examining of handling a product.

Alternative Evaluation—after acquiring information during the information search stage the consumer moves to alternative evaluation. At this stage the consumer compares the brands identified as being capable of solving the consumption problem and satisfying the needs or motives that initiated the decision process. The evoked set is a subset of all the brands of which the consumer is aware. A goal of marketers is to ensure that their brands are included in the evoked set of consumers. Consumers evaluate a brand’s attributes and/or benefits when comparing the identified alternatives from their evoked set. Functional benefits are tangible and can be experienced directly by consumers. Performance benefits refer are more intangible and subjective usage outcomes. Experiential benefits are related to how a product makes consumers feel during consumption. . In general, all messages attempt to place a brand within a target audience’s evoked set (e.g., awareness) and contribute to a consumer’s evaluation of the brand (e.g., attitude).

Purchase Decision—as an outcome of the alternative evaluation stage the consumer may develop a purchase intention or predisposition to buy a certain brand. Once a purchase intention has been made and an intention formed, the consumer must still implement it and make the actual purchase. Many purchase decisions are made on the basis of brand loyalty which is a preference for a particular brand that results in its repeated purchase. Purchase decisions for nondurable, low involvement items take place in the store and decision and purchase occur almost simultaneously. For these types of decisions top-of-mind awareness of a brand is important as is the influence of packing, shelf displays, point-ofpurchase material, and sales promotions.

Post purchase Evaluation—the consumer decision process does not end once the product is purchased. After using a product the consumer compares the level of performance with expectations. Satisfaction occurs when the consumer’s expectations are either met or exceeded, while dissatisfaction results when performance is below expectations. Another purchase outcome is cognitive dissonance which refers to a feeling of psychological tension or post purchase doubt a consumer experiences after making a purchase choice. Consumers look to advertising for supportive information regarding the choice they have made.

Types of Decision Making—three variations of the consumer decision making process arise because consumers do not always proceed in all five steps. 1.

Routine response behaviour—purchase decisions for low-priced, frequently purchased products are based on a habitual or routine choice process consisting of recognizing the problem, engaging in brief internal search and making the purchase. Marketers of products characterized by routine response behaviour get and/or maintain their brands in the consumers’ evoked set.

Limited problem solving—consumers with limited product category experience but are aware or knowledgeable of the brands available and/or the criteria to use in making a purchase decision. When consumers purchase a product through limited problem solving, marketers make information available to consumers that will help them make their decision.

Extended problem solving—the most complex and detailed form of decision making occurs when consumers have little, if any, knowledge regarding the criteria to use in making a purchase decision or the brands available. As with limited problem solving, marketers of products characterized by extensive problem solving provide consumers with detailed information that helps them in making their purchase decision. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-23

Group Decision Making Marketers must understand the various roles in the group decision making process such as initiator, information provider, influencer, decision maker, purchaser and user or consumer. They must also determine who is responsible for the roles in the decision making process so messages can be targeted to them. Messages must also be designed so as to appeal to the appropriate member(s). Figure 3-4 shows an application of this with the example of family decision-making. Other applications could include households in which people are not related (e.g., college and university students).

II.

TARGET AUDIENCE DECISION

The target audience decision is akin to the target market decision. Both relay on segmentation variables to define the particular group a promotional program or a marketing program is directed. The distinction between the two is a difficult task and tricky so see when observing what brands do in the market place. These variables and their application for each decision is topic instructors would likely revisit throughout the course. A.

Marketing planning process—involves the steps shown in Figure 3-5. The marketing strategy is directed towards the target market. Selection of the target market is an important for a firm’s marketing strategy, and it has implications for advertising and promotional strategy and tactics since it guides the target audience decision, a primary consideration at the start of the promotional planning process.

Segmentation Variables—segmentation involves the identification of the needs and wants of specific groups of people for the purpose of selecting a target, for either marketing strategies or marketing communication strategies. Several ways of segmentation are available (Figure 3-6).

Geographic—market is divided into geographic units with alternative marketing strategies directed to each

Demographic—division involves demographic variables such as gender, age, birth era, life stage, or household size.

Socioeconomic—division involves variables such as income, education, and occupation.

Psychographic—markets are divided based on the lifestyle, values, personality, culture, and social class. 1.

Lifestyle—activities, interests, opinions (AIO) as measured by commercial applications such as VALS and PRIZIM.

Values—a broad typology from an academic review of many decades of research organizes values along four dimensions comprising ten values.

Personality—enduring characteristics, e.g., introvert and extrovert.

Culture—culture refers to the complexity of learned meanings, values norms, and customs shared by members of a society. Subcultures refer to smaller groups or segments in a society that possess similar characteristics that set them apart from the larger cultural mainstream. Subcultures may be based on age, geography, race, religion, racial, lifestyles, and ethnicity.

Social Class—social class refers to relatively homogenous divisions in a society into which people sharing similar lifestyles, values, norms, interests, and behaviours can be grouped. Social class structures in Canada are based on occupational status, educational attainment, and source of income. Social class is important to marketers because consumers within social stratums often exhibit similar values, life styles and buying behaviour and provide a natural basis for market segmentation. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-24

Behaviour—this form of segmentation divides consumers into groups according to their brand loyalty, category use, usage rate, situation or benefits sought. These characteristics are then usually combined with one of the previously mentioned bases to develop segment profiles. Behaviouristic segmentation also considers both the purchase and the usage situation.

Promotional Planning Process—the promotional planning process uses segmentation variables to identify the target audience. Marketing communication is directed to groups of consumers within the decisionmaking process stages necessitating specific messages or IMC programs to persuade and influence attitudes and behaviours. Instructors should be careful to point out the similarities and difference of target market and target audience and how they may be identical in some circumstances and completely different in others.

III.

TARGET AUDIENCE OPTIONS

R&P state that the primary and most logical factor for initially defining a target audience is the current behaviour of consumers. R&P identified two customer groups and three non-customer groups. A.

Brand-Loyal Customers—direct communication to brand loyal customers who regularly buy their firm’s product.

Favourable Brand Switchers— consumers habitually purchase from a few favourites or those brands within their evoked set for some product categories; thus, favourable brand switchers are a second customer group highlighted by R&P.

New Category Users—New category users are those customers that are not yet purchasing within a product category.

Other Brand Switchers— Other brand switchers purchase a few different brands within a category.

Other Brand Loyals— Other brand loyals purchase only one brand and are completely loyal.

Examples of ads are useful to demonstrate how this approach works. It is fairly obvious to discern whether a message is directed to customers or non-customers, however some students have difficulty making the distinction. Discussion allows instructors to also note examples where it may be less obvious. The additional profiling variables of demographic and other segmentation variables can be highlighted. Multiple examples from one brand can show how a firm could have more than one target audience to reinforce the point in Chapter 1. IV.

IMC PLANNING: TARGET AUDIENCE PROFILE

The implications of consumer behaviour and target audience decision are summarized with a conclusion on the importance of using the segmentation variables appropriately to give direction for decisions in the areas for message creation, media placement and IMC usage. This planning section allows students to see how the IMC plan will unfold with a complete profile of the target audience. Teaching Suggestions Because of the consumer emphasis dictated by the marketing concept, consumer behaviour has increased in importance, and has found its way into virtually every aspect of marketing, including advertising and promotion. Thus, it is very important for the student to understand that advertising and promotion strategies are designed for the purpose of influencing customer behaviour. Promotional planners require understanding of consumer behaviour including the way consumers relate to products and services, the goals and motives they seek to achieve and satisfy, and the process by which they make purchase decisions. You should emphasize that the success Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-25

marketers have in influencing the purchase behaviour of their target customers depends in large part on how well they understand their purchase patterns and behaviour. The chapter links consumer behaviour with the target audience decision. Segmentation approaches are reviewed as the concepts are relevant for both marketing and promotion decisions. Students will be familiar with using segmentation for target market decisions of a marketing plan; however, promotion often requires more precise identification and profile for its intended recipient, or target audience. This important distinction is highlighted and the instructor should be careful to use examples where a specific target audience is in the ad, that is obviously consistent with who the brand may be targeting with its overall marketing plan. Some students may have covered some of this material in a basic marketing or consumer behaviour class. However, this chapter will still be valuable to them since it discusses how this material is used in the development of advertising and promotional programs. Vignette 1. Does it look like Ikea’s new approach for its advertising will encourage consumers to continue shopping at the store? Ikea’s history of minimal use of resources in the production and delivery of furniture is a significant competitive advantage that its advertising often communicated as a key differential advantage (i.e., chapter 6 positioning). The ads identified show continued commitment in this direction, and given the current social environment, it appears to be a key message to communicate to encourage consumers to continue visiting. Of course there are other characteristics about the store to emphasize, but the environmental point or re-use point is certainly very salient for many segments. Instructors are encouraged to show the ads described, and other Ikea ads like it, and link the topic back to the chapter 2 vignette since Ikea’s agency is Rethink! IMC Perspective 3-1 1.

Do you expect future advertising for FinTech brands will be significantly different than current advertising for established financial services brands? Asking students in the early years of learning marketing and advertising to predict the future of advertising in a product category is an ambitious question to address. Instructors might want to show both FinTech and established bank ads so students can understand the current similarities and differences. Probing questions along the lines of how the FinTech brands could continue to differentiate vs. banks to influence various segments is one topic to explore. Additionally, instructors could focus on how the FinTech brands and bank brands both try to influence consumer behaviour along the decision-making process to relate this material to the previous chapter.

IMC Perspective 3-2 1.

Would a comparative ad message to sway loyal Beyond Meat customers be effective for one of these brands? This perspective allows instructors an opportunity to illustrate target audience selection points. The new meat substitutes featuring new brands need to influence consumers of other types or products from a variety of consumptions situations. This implies considerable switching behaviour for some audiences – get chicken meat eaters to try a plant-based chicken variation or get heavy eat meat eaters to eat less with a substitute plantbased alternative. It also implies the potential of attracting new category users – get non-meat eaters to try this variation of a meat-like product!

Answers to Review Questions 1.

What are the stages of the consumer decision-making model? Why are they important for planning marketing communication? Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-26

Marketing communication can be directed to each stage of the model. Ads can highlight need recognition initially (e.g., TV) while additional information can be found at the brand’s website (e.g., information search). Comparisons with other brands could be obtained at independent review website (e.g. JD Power) that influence the alternative evaluation stage. Finally, direct communication on mobile devices indicating a promotional offer from GPS alerts could influence purchase while direct mail pieces can maintain satisfaction levels after purchase. Furthermore, the nature of the message can evolve at each stage as well. Thus, the model is useful for planning the basic marketing communication decisions of message and media, that can be extended to other IMC programs including events etc. 2.

When defining a target audience for communications, why is it a good idea to use consumer behaviour with respect to your brand as the primary variable before using variables such as demographics or lifestyle? The behavioural variable is considered first for two reasons. First, it links the communication plan to the marketing plan more specifically. Secondly, actual behaviour signals or leads to sales, something to which most advertising campaigns hope to achieve as an end result. Most good advertising reflects the underlying purchase motive of the target audience. The purchase motive is related to behaviour because consumers act upon their needs during a goal seeking decision process. Thus, the expected behaviour of the target audience is a prime consideration.

What are the five customer groups? Explain in terms of beverage products like soft drinks or beer. From the point of view of Coca-Cola, advertising could be directed to those who only drink Coca-Cola when drinking a cola product (e.g., brand loyals). Alternatively, the brand could target those who regularly switch between Coca-Cola and Pepsi (e.g., favourable brand switchers). Looking at the other side of customer groups, Coca-Cola could target Pepsi drinkers (e.g., other brand loyals) or those who drink Pepsi and RC Cola, or perhaps a generic cola product like PC (e.g., other brand switchers). Finally, those who do not drink cola may be targeted (e.g., new category users), or those who do not even drink soft drinks (e.g., new category user). Of course these two non-category user groups are derived from different market partitions. An important point to note is that specific brands should be identified so that there is an application of the model.

Why is a complete profile of a target audience important for marketing communication? A complete profile of a target audience is necessary for message, media, and IMC program decisions. Knowing the background of the target audience in terms of specific segmentation variable (e.g., psychographic) allows the planner to know how to construct the persuasive message with accurate visuals and imagery that will resonate. Similarly, knowing the background on variables like geography or usage allows managers to know which media and media vehicles to use to reach the target audience for exposure purposes. Finally, knowing other variables like lifestyle allows the planner to estimate the correct IMC program to use in terms of public relations or social media.

Answers to Applied Questions 1.

Explain the difference between functional, performance, and experiential benefits. Why might the messages recommended in the IMC plan for smartphones focus on each separately or together? Functional benefits are concrete outcomes of product usage that are tangible and objectively related to the purpose of the product. Performance benefits are less tangible and more subjective product usage outcomes based on how the product attributes abstractly affect a consumer. Experiential benefits are related to how consumers feel while consuming the product. These emotions can be psychologically or socially based. Managers deciding upon the messages can select any of the three to emphasize or show the connection among them. Auto commercials are an effective way to explore this point. For example, instructors can highlight ads that communicate the existence of safety features, like the example of air bags in the subcompact car. Other ads could demonstrate how a safety feature works for example (performance). Finally, Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-27

another ad might show the reassurance (feelings) of the safety feature. It is important for students to see that for virtually any message, there is an alternative that could have been considered which opens debate as to whether the most effective was selected. 2.

In what situations is the target audience and the target market the same? In what situations is the size of the target audience larger or smaller than the target market? The target market is the focus of the entire marketing mix while the target audience is the focus of a particular communication program. In some instances, the target audience is smaller than the target market. For example, if a firm runs an ad and promotion to entice consumers to switch to their brand, they are not reaching the complete target market since this would include its own customers. For small firms or firms with a brand new product, both the target market and target audience may be exactly the same. In this case, the firm is not trying to advertise to a particular target audience to increase their usage or alter their purchasing behaviour. The target audience is often larger than the target market for a product in public relations activities. By their very nature, public relations often times attempt to influence a broad community, of which numerous people would not be actual purchasers of the product.

Examine the ads in this chapter and identify the target audience the ad is directed toward using the model of five customer groups. Suggest other relevant segmentation variables to further profile the target audience. Also identify the relevant segmentation variable to pinpoint the target market. This question raises the point that marketers use a variety of segmentation variables to identify their target market, and that many can be considered for executing their marketing strategy. Likely, students will be able to observe that some variables tend to be more common. Furthermore, while a variable or two may be used for segmenting, additional variables are relevant to further describe the market to give more precision for the marketing decisions. For target audience, if students adhere to the R&P idea, they will begin to realize that the customer status (i.e., customer or non-customer) is a strong way to begin one’s promotional planning since the content of the message can be executed more exactly to influence the next purchase.

Which segmentation variables are more useful or appropriate for profiling a target market for an automobile like the Mini? Similarly, which are more useful or appropriate for profiling the target audience for an automobile like the Mini? This question extends the points made in question 5 with an additional application with a particular brand. The exact target market variables selected is reasonably varied and the point to make is that the student should use some information to make a logical conclusion. One might suggest that personality or values may play a prominent role, as would geography as city a consumer maybe most likely. Mini has such low volume it must resort to always targeting new customers in its communication, so it will likely try to attract other brand switchers. Although a good case could be made that much of their advertising encourages those with a certain personality to purchase a brand new car for the first time.

Additional Discussion Questions (not in text) A. After buying a new car, a customer receives direct mail such as a driving magazine or information on automobile care from the manufacturer. Explain why this is effect or ineffective communication. This is likely to be highly effective communication as it contributes to building the relationship between the care company and its current customer. The customer is further informed about the features and benefits of their purchase and the customer receives important information for maintaining the value of their asset in a very significant financial investment. Most customers would likely be interested in articles or pictures of newer car models despite owning their current car since the purchase is typically extensive problem-solving activity that one would like to be prepared for. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-28

Use the model of consumer decision making to analyze the purchase process a consumer would go through in purchasing a laundry detergent versus a new computer. Discuss the role advertising and other forms of promotion would play at each stage of the decision process. The purchase of laundry detergent would be characterized by routine response behaviour since this is a product the consumer has probably purchased many times before. The decision making process would consist of little more than recognizing that one is running low on detergent and replenishing the supply during a shopping trip. The consumer will spend little effort engaging in external search or alternative evaluation as the purchase process for such products is relatively automatic. Decision making will be minimal if the consumer is loyal to a particular brand of detergent. If the consumer is not loyal to any particular brand, they may be influenced at the actual point-of-purchase through shelf displays, price deals or other types of promotion. Advertising will be important in getting a brand of detergent into the consumers evoked set and keeping it there. For a new brand, advertising may be particularly important in generating awareness and interest. Sale promotion techniques such as samples and coupons will also be used to encourage consumers to try new brands or switch brands. The purchase of a new computer will be characterized by limited or extended problems solving, depending on the consumers level of prior knowledge or familiarity with alternative brands. The consumer goes through each stage of the consumer decision making process and spend considerable time and effort on external information search and in identifying and evaluating alternatives. Advertising is important in providing consumers with information about computers and what they should be looking for in evaluating alternatives. Direct marketing may also be used to send consumers information that will be helpful in evaluating a brand and making the purchase decision. Personal selling efforts by in-store sales personnel will also be very important since consumers may rely on knowledgeable sale people to learn about the alternatives and make a choice.

How is it possible for a brand to communicate to both customers and non-customers in an IMC plan? Brands can select different media for advertising or different IMC programs entirely to reach customers and non-customers. For example, if a customer’s personal information is in a data-base, customized promotional offers or advertising messages can be delivered directly. Alternatively, television or other media that reaches a wider audience that would include many non-customers can be used to attract those not currently buying the brand. In each of these cases, the selling message can be tailored specifically. For example, references to past experiences can be part of the message to customers while messages to non-customers might make competitive references or mention sources of dissatisfaction for those considering switching from their current brand.

D. Discuss the three variations of the consumer decision-making process. What is the importance of communications in each type? Three decision making process are (1) routine response, (2) limited problem solving and (3) extensive problem solving. Marketing communications differ in each. Routine response behaviours are close to habits. As a result, they require little external search (if any) and there is little or no reliance on communications. Advertising and promotions reinforce and reminds the consumer that it is time to purchase, and there is less need for providing information for evaluation. Limited problem solving involves both internal and external search behaviours. As a result, marketing communication requirements increase. Consumers are more likely to have recognized the problem, and are using advertising and other forms of communication to provide information for evaluation. Consumers are also more likely to employ a variety of sources of information in the process, and the marketer wants to be sure that his/her product is considered in the evoked set. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-29

The consumer’s most extensive use of communications is likely to occur in the extensive problem solving situation. Decisions are given much more thought, external search is more involved, and there is a much greater reliance on advertising, sales persons, friends, family, etc. as input into the decision. As a result, the responsibility of communications is increased as the marketer wants to have the information readily available to consumers when and where they want it. E.

Explain the concept of an evoked set. Why is this concept important to marketers? Give examples of an evoked set, and how marketers might attempt to influence consumers to gain consideration. The numerous options for purchase in any product category direct consumers to consider only a subset of the alternatives available, leading to an evoked set. Often referred to as a consideration set, this subset of brands are those that will be actively considered in the purchase decision process. This is important since if a brand does not get included in the evoked set, it is not likely to be purchased. Consider the purchase of a new car. The choice of alternatives runs from low end entries like Hyundai, Kia, etc. to expensive luxury and sports cars—not to mention SUV’s and others. It is highly unlikely that a consumer would consider the entire range of possibilities. The list would be narrowed down given decision criteria to a much smaller grouping, based on purchase criteria. It may lead to consideration of only Japanese cars, American cars or German cars. It might be limited based on price or past experiences. Whatever the criteria used, the entire list of cars will not be considered.

IMC Exercise Have the class collect ads that reflect some of the aspects of consumer behaviour discussed in the text such as stages of the decision process, Have them bring the ads to class and explain which aspect it reflects and how marketers might be appealing to this aspect of consumer behaviour. Each of the so-called generations— Generation Y and X have their own unique values, lifestyles, etc. Have students discuss these, and then bring in examples of ads designed to appeal to each. IMC Comprehensive Project At this stage of the project students should be analyzing the consumer decision making process for their product or service and considering different segmentation variables that will be useful. IMC Project Assignment for Chapter 3 Analyze the marketing situation analysis for the product or service you have chosen. You can use the marketing and promotions process model shown in Figure 3-5 as well as some of the factors shown in Figure 1-5 from Chapter 1 as a guideline to conduct your situation analysis. For the consumer analysis, describe the consumer decision process for your product/service as shown in Figure 3-1. Explain what factors are relevant at each stage. What are the implications of your situation analysis for the development of your IMC plan? How will the market for your product/service be segmented? Which segments will be targeted and why? What will be your target audience for your IMC programs?

CHAPTER 4: COMMUNICATION RESPONSE MODELS INSTRUCTOR’S MANUAL Chapter Overview This chapter examines the communication process by introducing the student to the fundamentals of communication and examining models and perspectives of how consumers respond to advertising messages. A model of communication is presented which introduces the controllable elements of the communications process—source, message, channel, and receiver. The chapter is devoted to examining the target audience or receiver and the process by which consumers respond to advertising and other promotional messages. The response process is analyzed in terms of traditional response hierarchy models as well as alternative response models. Attention is given to comparing alternative response models such as the standard learning versus low involvement models. The chapter also examines the cognitive response approach and Elaboration Likelihood Model to show how more detailed analyses can be made of receivers’ cognitive processing of marketing communications. The end of the chapter attempts to resolve the debate with a model more suitable for decision-making. Learning Objectives 1. Explain the elements of the communication process and identify the role of marketing communication. 2. Contrast traditional and alternative response hierarchy models and identify their implications for advertising. 3. Review the specifics of the receiver’s processing of marketing communication. 4. Illustrate a response model for managerial decision making. 5. Construct ideas on how the knowledge of response models is used for IMC planning. Chapter and Lecture Outline I.

COMMUNICATION PROCESS MODEL

A commonality shared by all elements of the promotional mix is that their function is to communicate. Thus, it is important that advertising and promotional planners understand the communication process. Communication is defined as the “passing of information,” the “exchange of ideas,” or the “process of establishing a commonness or oneness of thought between a sender and a receiver.” For communication to occur there must be some common thinking or ground between the two parties and a passing of information. The communications process is often very complex with success depending on factors such as the nature of the message, audience interpretation and the environment in which it is received along with the receiver’s perception of the source and medium. A model of communication that represents the elements of the communications process is shown as Figure 4-1 that include: A.

Source—the sender or source of a communication is the person or organization that has information to share with another person or group. It should be noted that the source is an Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-31

individual (e.g., hired spokesperson) or a nonpersonal entity (e.g., brand, organization). The receivers’ perception of the source influences how the ad received and interpreted. B

Encoding—the process of putting together thoughts, ideas and information into a symbolic form to communicate a message. The sender’s goal is to encode the message in such a manner so as to ensure that it will be understood by the receiver.

Message—the encoding process leads to the development of message content that contains the information/meaning the source/sender conveys. Messages take many forms and symbols. The message content decision is found the creative strategy decisions of Chapter 7. The message is put into a transmittable form that is appropriate for the channel of communication. Advertising messages range from simple written words that are read or heard to the expensive production of elaborate television commercials with a visual impact and imagery. Two components, message structure and message design, are additional decisions reviewed in Chapter 8.

Non-Personal Channel—those which carry a message without involving interpersonal contact between sender and receiver. These channels are referred to as the mass media as messages transmitted through them are sent to many individuals at one time.

Personal Channel—involve direct interpersonal contact with target individuals or groups. For example a salesperson serves as a personal channel of communication when delivering a sales presentation. The growth of social media heightened the influence of personal channels that are mediated by digital communication devices.

Receiver—the receiver is the person(s) with whom the sender shares thoughts or information. Receivers are generally viewed as the consumers in the target audience targeted by the firm’s marketing and promotional program. The target audience may consist of individuals, groups, niche markets, market segments, or a general public or mass audience.

Decoding is the process of transforming and interpreting the sender’s message back into thought and is heavily influenced by the receiver’s frame of reference or field of experience. Effective communication is more likely when common ground or shared meaning or understanding exists or has been established between the sender and receiver.

Noise—throughout the communications process the message is subject to noise which refers to factors that can distort or interfere with adequate reception or comprehension. Noise can occur during the encoding, transmission, or decoding of a message. Noise can also occur because of a lack of common ground or understanding between the sender and receiver.

Response—refers to the reaction the receiver has after seeing, hearing and/or reading the message. These responses can range from non-observable actions such as storing information in memory to taking immediate actions such as ordering a product seen in a direct response ad.

Feedback is the part of the receiver’s response that is communicated back to the sender and takes a variety of forms. Feedback provides the sender with a way of monitoring how the message is being decoded and received by the target audience.

II.

RECIEVER’S RESPONSE

An important aspect of developing effective communication involves understanding the receiver’s response to marketing communication so that promotional planners can design message to persuade and influence a member of the target audience. This section covers three traditional response hierarchy models and then discusses alternative models of the receiver’s response. A.

Traditional Response Hierarchy Models—Figure 4-2 shows three response hierarchy models. These models are discussed giving attention to their origin and implications and include: 1. The AIDA Model (attentioninterestdesireaction) 2. The Hierarchy-of-Effects Model (awarenessknowledgelikingpreferenceconvictionpurchase 3. The Information-Processing Model (presentationattentioncomprehensionyieldingretentionbehaviour)

Implications of the Traditional Hierarchy Response Models—the hierarchy models are useful to promotional planners since they delineate the series of stages potential purchasers experience, moving from a state of no or little awareness to the point where they are ready to purchase. The hierarchy models can also be useful as “intermediate” measures of communication effectiveness. Knowing where potential buyers are with respect to the stages of the hierarchy helps the marketers know the specific communication task that must be performed. All these models view the response process as consisting of movement through a sequence of stages and assume a similar ordering whereby cognitive development precedes affective reaction which in turn precedes behaviour. While this is a logical progression that may be accurate in many situations, the response sequence may not always operate this way which gives rise to alternative response hierarchy models.

Alternative Response Hierarchy Models—research and theorizing led to a questioning of the cognitive  affective  conative sequence of the response process and resulted in the development of alternative orderings of these stages based on perceived product differentiation and product involvement, shown in Figure 4-3. The concept of involvement explains the way consumers process information and make purchase decisions. However, a problem that has plagued the study of involvement has been defining and measuring the construct. 1. Standard learning model—in many purchase situations consumers go through the response process in the manner depicted by the traditional communications models or a “learn  feel  do” sequence or hierarchy. Under this hierarchy the receiver is viewed as an active participant in the communications process who actively seeks or gathers information through “active learning.” 2. Dissonance/attribution model—in some situations consumers may behave first then develop attitudes or feelings as a result of that behaviour and learn or process information that supports their attitudes and behaviour. The dissonance or attributional hierarchy consists of a “do  feel  learn” sequence. This hierarchy may occur when consumers are Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-33

trying to reduce post-purchase dissonance or anxiety that results from doubt or concern over a purchase. This dissonance reduction process involves “selective learning” whereby the receiver seeks information that supports the choice made and avoids information that does not bolster the wisdom of the decision. 3. Low-involvement model—the low involvement hierarchy is thought to characterize situations of low consumer involvement in the purchase process. The response hierarchy under low involvement consists of a “learn  do  feel” sequence and the receiver is viewed as engaging in “passive learning” and “random information catching” rather than active information seeking. D.

Implications of the Alternative Response Hierarchy Models—Promotional planners consider which of the three models is most relevant for describing how their target audience responds to marketing communication. Subsequently, they would set the most realistic objective and make the most logical promotional decisions in terms of message, media and IMC programs.

III.

RECEIVER’S PROCESSING OF COMMUNICATIONS

The hierarchical response models were the primary focus of approaches to studying receivers’ responses to marketing communications for decades. However, the inability of these approaches to explain what might be causing or determining these reactions to the message has led to an interest in understanding the nature of processing of advertising and other persuasive communication. This section reviews the perceptual system to understand how receivers process advertising messages and two models designed to explain what occurs during the processing of ad messages. Processing refers to the time duration when a receiver is watching a video ad message on TV or virtually, reading a display ad in print or online, or listening to an audio message on the radio or digitally (e.g., podcast). Processing concerns how external information (such as an advertising message) is transformed into meanings or patterns of thought and how these meanings are combined to form judgments. A.

Processing of Ad Messages—perception is the process by which an individual receives selects, organizes, and interprets information to create meaning. There are a number of processes involved in perception which determine how marketing information will be received: 1. Selective exposure—consumers choose to make themselves available to information. After sensing ad exposure. 2. Selective attention—consumer focuses attention on certain stimuli while excluding others. 3. Selective comprehension—interpreting information on the basis of the consumer’s own attitudes, beliefs, motives and experiences. 4. Selective retention—consumers do not remember all information they receive and store the most relevant and essential information in their memory.

Cognitive Response Model—a method used for examining consumers processing of advertising messages is through the assessment of their cognitive responses or thoughts that occur to them while reading, viewing, and/or hearing the communication. The focus of this approach, which is commonly used by academic researchers as well as practitioners, is to determine the types of thought evoked by an advertising message and how these responses relate to traditional “outcome” measures such as attitude toward the ad, brand attitudes and purchase intention. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-34

The model shown in Figure 4-4 depicts the three types of cognitive responses and their relationship to attitude the brand, attitude to the ad and purchase intention: 1. Product/Message thoughts—counterarguments and support arguments. 2. Source-oriented thoughts—source derogations and source bolsters. 3. Ad execution thoughts— positive or negative thoughts individuals have toward the ad itself. 4. Attitude to Brand—overall evaluation of the brand. 5. Attitude to Ad—overall evaluation of the ad 6. Purchase Intention—self-instruction to buy the brand. C.

Elaboration Likelihood Model—the Elaboration Likelihood Model (ELM) is a way of analyzing differences in the way consumers process and respond to persuasive messages. The ELM is presented in Figure 4-5 of the text. According to the ELM, there are two processes or routes to persuasion, which are based on motivation and ability to process the message. Under the central route to persuasion the receiver is viewed as a very active and involved participant in the communications process whose ability and motivation to attend, comprehend and evaluate a message are very high. Under the peripheral route to persuasion the receiver is viewed as lacking motivation or ability to process information and is not likely to engage in detailed cognitive processing. The receiver may use “peripheral cues” such as focusing on the message source or executional elements of the ad rather than message content. Classical conditioning, known as a behavioural learning theory, helps explain how the peripheral route works. Behavioural learning theory emphasizes the how external or environmental stimuli causes behaviour while minimizing the significance of internal psychological processes. Classical conditioning assumes that learning is an associative process whereby the relationship between an unconditioned stimulus and conditioned stimulus develops through repetition and contiguity. Classical conditioning has applications in advertising as products become associated with perceptions, images, and emotions that evoke favorable reactions from consumers.

Conclusion of Processing Models— A review of how advertising works concluded that there is little support for the concept of a hierarchy of effects in the sense of a temporal sequence. A key conclusion is that individual responses to advertising should be evaluated based on product category experience and brand experience in addition to cognitive and affective responses as demonstrated in the processing models.

IV. RESPONSE MODEL FOR MANAGERIAL DECISION MAKING This chapter continues with Rossiter and Percy’s perspective presents a managerial framework to make promotional decisions that account for the academic and practitioner research on advertising over the past fifty years. Its similarity to the more theoretical conclusion is readily observed. The experience element is captured by R&P’s view that the target audience based on previous purchase behaviour of a brand be the foremost characteristic initially considered in establishing a communications plan. A.

Processing of Messages— The processing of marketing communication messages is illustrated in Figure 4-6. Moreover, the cognition and affect considerations are noted in the processing stage Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-35

as are the high and low involvement processing consistent with the more recent approaches for understanding audience responses to marketing communication messages. B.

Communication Effects of Messages—The communication effect of marketing communication messages are also shown in Figure 4-6 indicating once again the relevance of cognition and affect as the brand attitude effect is comprised of both elements in its measurement. It is also evident in category need, and need fulfillment is energized via consumer motivation; a psychological process with strong emotion. The brand components shows the managerial applicability with specific effects for an individual brand manager rather than communication in general.

Teaching Suggestions This chapter is designed to introduce the student to the fundamentals of communication. It is the most theoretical chapter in the text. However, this material is very important as it presents the basic elements of communication and provides a detailed examination of the process by which consumers respond to marketing communications. The material also provides the student with a foundation that is important for subsequent chapters of the text. It is very important to stress to the student that communication is the common goal of all promotional mix elements. They must have a solid foundation in this area if they are to evaluate other areas of advertising and promotion such as creative strategy, media strategy and alternatives and effectiveness measurement. It is helpful to emphasize to students that decisions about the controllable elements of the communication program, such as selecting a source, developing a message strategy and appeal, and selecting advertising media, cannot be made unless the promotional planner has some insight into how members of the target audience will respond to these factors. Students need to understand the traditional hierarchical response models including their implications and limitations. It is also important to point out the limitations of the traditional cognitive affective  conative sequence assumed by these models and to cover the alternative response hierarchies. After reviewing the alternative models of the response process, it should be apparent to the student that the traditional standard learning hierarchy may not be appropriate in many communication situations. The final sections show the current direction of advertising theory that accounts for processing and communication effects in which both exhibit cognitive and affective elements, and there is no prescribe hierarchy of the receiver’s response. Vignette 1. What other advertising opportunities might arise within the metaverse in the future? A high percentage of students participate in aspects of social media or online consumption, such as watching video games played on Twitch. .They likely experienced different branded marketing communication in the metaverse and can explain these new “ads” as a way of adding the examples identified in the vignette. Instructors could point out that the exposure of this brand stimuli retains similar communication principles even though the media and message diverge from historic exposures. From this, instructors lead a brain-storming exercise on how these ideas could go in new directions for future applications in this new digital world. IMC Perspective 4-1 Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-36

1. How would you assess the campaign with Jon Hamm in terms of the response hierarchy models? Instructors might like to show the ads as an introduction to the discussion. An important point to raise is how the ads conveyed aspects of the service, particularly the variety of food delivered. Instructors could draw on the approach used to evaluate the Second Cup ad in the text by illustrating how each model provides direction for understanding how the campaign is effective or ineffective. Students could decide which offers a more thorough evaluation and why. The discussion could focus on why the company dropped the agency and the campaign, and figure out if either model offers an answer. IMC Perspective 4-2 1. Would you have continued the GOOAT campaign for the 2021 and 2022 models of the Outback? Why or why not? This opinion-oriented question could potentially present a lively discussion. Some students will find the goat comparison as a genius creative idea to facilitate brand communication effects, while others conclude that the whole idea is completely silly for a major purchase. It is important to point out that the ads are encouraging those in the market to research the Outback and to visit a dealership. While clever, the idea is likely one-year campaign to communicate that the Outback had a major model redesign, something that all car brands do every three to five years. However, the alternative case can be made and instructors could use this direction to brainstorm more creativity. Answers to Review Questions 1. Recall the elements of Figure 4-1 and identify them for all aspects on an IMC plan – advertising, sales promotion, direct marketing, public relations, and Internet marketing. The elements of the communications process include the sender or source, the message, the channel, the receiver, noise, and feedback. The sender or source of a communication is the person or organization that has information to share with another person or group. The source may be an individual such as a salesperson or spokesperson who appears in a company’s advertisements or a nonpersonal entity such as a company or organization itself. The message is the information or meaning the source hopes to convey and may be verbal or nonverbal, oral, written, or symbolic. The channel is the method by which the communication travels from the source or sender to the receiver. At the broadest level there are two types of channels, personal and nonpersonal. Personal channels involve direct interpersonal contact with the receiver while nonpersonal channels carry a message without interpersonal contact between the sender and receiver. Nonpersonal channels are generally referred to as the mass media. The receiver is the person(s) with whom the sender shares thoughts or information. Generally receivers are the customers in the target market or audience who read, hear, and/or see the marketer’s message. Noise refers to extraneous factors in the communications process that can distort or interfere with the communication of a message. Errors or problems in that occur in the encoding of the message, distortions in the transmission of the message, and distractions at the point of reception are possible sources of noise. Feedback refers to the part of the receiver’s response that is communicated back to the sender and may take a variety of forms such as response hierarchy measures including Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-37

awareness, knowledge, attitudes, purchase intentions, preferences and behaviour. The form of feedback of ultimate interest to marketers is, of course, sales. Students should be encouraged to find an example of a current advertising campaign and to analyze it with respect to elements of the communications process. They might evaluate the source being used as a spokesperson in the campaign, the type of message being used, the channels or media where the ads appear, the target audience for the campaign, and the type of feedback that might be used to monitor the effectiveness of the campaign. 2. Explain why the three response models of Figure 4-2 are limited in planning for an IMC campaign? The three models assume a strict order of cognition, affect, and behaviour, something a major review article in Journal of Marketing cited in the chapter suggests is not supported in numerous studies. In addition, the models do not indicate when the stages are occurring, such as when the message is received (i.e., watching television) or when consumers are going about their day-to-day lives. Both of these criticisms are addressed in the subsequent models presented in the chapter. Another way to see how the models are in effective is to consider the following. Each of the response processes could occur at each of the decision-making stages. For example, consumers could see some ads while at the need recognition stage and have a cognitive and affective response and then plan to look at the product in the store. This decision towards a store visit is the behaviour which is actually occurring at the information search stage, the one after the need recognition stage. Consumers could receive a brochure at the store, read it at home and continue along in their information search stage. Again, responding to the communication occurred while in a particular stage of the decision-making process. 3.

Explain what is meant by a central versus peripheral route to persuasion and the factors that would determine when each might be used by consumers in response to an advertisement. Under the central route to persuasion the message recipient is viewed as a very active and involved participant in the communications process whose ability and motivation to process a message are very high. The recipient will pay close attention to message content and will carefully scrutinize the communication for the cogency or quality of the message claims. Under the peripheral route to persuasion the message recipient is viewed as lacking the motivation or ability to process the message and is not likely to engage in any detailed level of cognitive processing. Rather than thinking about or evaluating the information content of the message, the receiver will rely on “peripheral cues” such as an attractive source or other executional factors. Factors that would determine when each might be used by consumer in response to an advertisement include the involvement level of the consumer which will be a function of the nature of the product being purchased, the importance of the product/service being purchased to the individual, the needs of the individual, and the motivation and ability of the consumer to process the message.

4. What are the key difference between the traditional response models and the response model shown in Figure 4-6? The primary difference is that the former assumes a similar cognition-affect-behaviour response sequence while the latter presents a contingency model where by the sequence is influenced by the topical involvement and the perceived product differentiation. The key implication of the sequence Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-38

change is that advertising and promotion have different primary effects depending upon whether the consumer responded one way versus the other. The R&P model build on the previous models by clearly articulating the difference between the immediate reactions of the receiver while experiencing the message and the longer-term results of the communication of the brand. Consequently, there is a need to conceptually represent both dimensions of attitude theory at both places in time. 5. Why is it important to use a response model that is more applicable to managerial decision making? Planning for advertising is dependent on understanding how the target audience will respond to the marketing communication message, however a manager needs to translate or view these responses as potential options to influence when making marketing communication decisions. Furthermore, marketers require a degree of parsimony in using an approach that is clear for focus decisionmaking. Academic contingencies and fine embellishments of model may help explain some variation across major samples to generalize theory, but in the end a manager needs to make concrete decisions. Answers to Applied Questions 1. Consider ads found in social media like Facebook, Twitter and YouTube and assess whether the model in Figure 4-1 is useful for explaining how marketing communication works in these digital contexts. As argued in the text, Figure 4-1 still stands the test of time and is still very applicable for digital media since it has the clear feedback and response mechanism. Students should be able to apply all aspects of the model to any form of digital communication, it is only a matter of seeing how it work by thinking through problem like this to see that the key parts remains. 2. Assume that you are the marketing communications manager for a brand of paper towels. Discuss how the low involvement hierarchy could be of value in developing and advertising and promotion strategy for this brand. For a company selling a low-involvement product such as a paper towel, the consumer is likely to go through a learndo feel response hierarchy whereby some minimal level of awareness or passive learning may precede purchase and attitudes are formed after using the product. An advertiser of a low involvement product must recognize that consumers are less likely to give attention to actual message content and may focus more on non-message elements such as music, characters, slogans or jingles. Advertisers may want to use catchy slogans or jingles that will stick in consumers’ minds and become salient when they are in the actual purchase situation. The use of short messages and heavy repetition schedules will also be important. Advertisers may also use VIPs or visual image personalities that may lead to more involvement with and higher identification and retention of advertisements. Sales promotion techniques such as sampling and coupons may also be used to encourage first time trial. Point-of-purchase displays and advertising might also be used to encourage trial of the brand. If the product performs well the consumer should form a favorable attitude the probability of repurchasing it will increase. 3. Select an ad you think would be processed by a central route to persuasion and one where you think the peripheral processing would occur. Show the ads to several people and ask them to write down Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-39

the thoughts they have about each ad. Analyze their thoughts using the cognitive response categories discussed in the chapter. Under the central route to persuasion the message recipient is viewed as a very active and involved participant in the communications process whose ability and motivation to process a message are very high. The recipient will pay close attention to message content and will carefully scrutinize the communication for the cogency or quality of the message claims. Under the peripheral route to persuasion the message recipient is viewed as lacking the motivation or ability to process the message and is not likely to engage in any detailed level of cognitive processing. Rather than thinking about or evaluating the information content of the message, the receiver will rely on “peripheral cues” such as an attractive source or other executional factors. Students should be encouraged to select examples of advertisements that they feel are representative of each route to persuasion and to explain why the ads would be processed either centrally or peripherally. They should also show the ads to some friends and have them write down what thoughts they were having as they looked at the ad. They might then try to analyze these cognitive responses by categorizing them as product/message related thoughts (counterarguments or support arguments), ad execution related thoughts, or source-oriented thoughts (bolsters or derogations). You might have a few students show the examples they have chosen of ads that might be processed by a central or peripheral route and have the class analyze the cognitive responses they gathered for these ads. 4. Find an example of a print ad and evaluate it using the cognitive response model shown in Figure 46. Identify the specific types of cognitive responses that the ad might elicit from consumers and discuss why these might occur. Students should be encouraged to find a print ad and evaluate it using the cognitive response model shown in Figure 4-6. They might show the ad to their friends or fellow students and have them write down what thoughts they were having as they looked at the ad. They might then try to analyze these cognitive responses by categorizing them as product/message related thoughts (counterarguments or support arguments), ad execution related thoughts, or source-oriented thoughts (bolsters or derogations). You might have a few students show the examples of ads they have chosen and present their analysis of the cognitive responses given in reaction to these ads. They might also discuss why these responses were generated. Similarly, students might find their sample described the emotions experienced when viewing the ads. Students should try to accurately identify the emotions and to assess how strongly felt the emotions experience are. 5. Red Bull has numerous IMC activities including its TV advertising, events, and promotional activities. Check the Red Bull website and any other online material for background, and apply them to the matrix in Figure 4-7 to validate whether each activity assists in planning for IMC. Red Bull presents an interesting example to apply Figure 4-7. Across its IMC programs there is a distinct source, message, and channel to a multitude of target audiences. For example the imagery of its TV ads with cartoons is distinctly different that the imagery of Red Bull Crashed Ice. Furthermore, the exposure procedures and the type of processing and resulting communication effects are correspondingly appropriate for each program as well. In short this planning matrix allows managers to see which the controllable decisions are to influence outcomes that the manager deems important. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-40

Additional Discussion Questions (not in text) A. What is meant by encoding? Discuss how the encoding process differs for radio versus television commercials. Encoding refers to the process by which the sender of a communication puts thoughts, ideas, or information into a symbolic form using words, symbols, pictures, and the like. The encoding of a television commercial involves the use of visual images, sound, motion, color, and words, which provide advertisers with the opportunity to develop very creative messages. The encoding of a radio commercial is limited to the use of sound, which usually comes in the form of words read by an announcer and/or music. However, some astute advertisers may use a process called image transfer whereby the images from a TV commercial are planted in a radio spot by using similar, or even the same, audio portion. The idea is that when consumer hears the radio message, they will make the connection to the TV commercial thus reinforcing the video images. B. Explain the processes of selective perception described in the chapter. Provide examples. Selective exposure – Consumers may selectively decide what they will allow themselves to be exposed to. For example, if a consumer knows information will be provided that may lead to dissonance or the potential for inconsistency, they may consciously avoid the information. If one just purchased a new Ford, having selected this model over Chevrolet, they may avoid advertisements for Chevy’s to not create further dissonance. Changing stations during commercial breaks on television or radio, or leaving the room, skipping over ads in magazines, or simply ignoring banner ads are all forms of selective exposure. On the other hand, consumers may actually seek out information as well. Accessing the Internet to obtain more information, reading Consumer Reports, etc. are also forms of selective exposure. Selective attention—some consumers may stay in the room during commercials, but not pay attention to them. Consumers will be more inclined to pay attention to ads when they are in a search and/or evaluation stage of the decision process and the ad is relevant to this decision. For example, if you were in the market for a new car stereo, you might be more inclined to pay attention to commercials, print ads and publicity regarding brands, sales, etc. Once the purchase has been made, the consumer may engage in selective attention to these messages. Selective comprehension—there is no guarantee that the information provided by an advertiser will be comprehended in the manner intended. Consumers may distort information to meet their needs, or take away a different meaning than intended. For example, a consumer is torn between two attractive alternative automobiles. One gets 9.2 litres per 100 kilometres highway, the other 7.8. Depending on which car is purchased, the differences in gas mileage may be distorted. If the higher of the two was bought, the 9.2 may be made out to be significantly higher than 7.8. If the lower mpg car was purchased, the difference would seem to be much less. Selective retention—using the example of the two cars just above, what is remembered may be a result of selective retention. “Oh, I don’t remember the difference in mpg, but I recall it was only slightly higher” or “I remember there was a significant difference. My car got 1.4 litres per 100 kilometres more, and over a year this would amount to $200 in savings”. Consumers have a tendency to forget that information that is inconsistent or contrary to what they want to believe, and may be more likely to recall that that reinforces their existing beliefs, values, and/or attitudes. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-41

C. Find an example of a print ad and evaluate it using the cognitive response model shown in Figure 44. Identify the specific types of cognitive responses that the ad might elicit from consumers and discuss why these might occur. Students should be encouraged to find a print ad and evaluate it using the cognitive response model shown in Figure 4-4. They might show the ad to their friends or fellow students and have them write down what thoughts they were having as they looked at the ad. They might then try to analyze these cognitive responses by categorizing them as product/message related thoughts (counterarguments or support arguments), ad execution related thoughts, or source-oriented thoughts (bolsters or derogations). You might have a few students show the examples of ads they have chosen and present their analysis of the cognitive responses given in reaction to these ads. They might also discuss why these responses were generated. For example, source bolsters might be given to a trustworthy or likeable spokesperson while source derogations might occur if the source is not liked or is unattractive. Message related thoughts might be generated if there is a lot of information presented in the ad or the position advocated is not agreed upon by the message recipient. Ads that use a great deal of imagery might generate more execution related thoughts. IMC Exercise Choose a “print” ad from print or digital media and evaluate it using the elements of the communications model presented in this chapter. Analysis should address the following areas: 

the source used in advertisement and the source is or is not appropriate for the message.



the way in which the message is encoded including the use of visual and verbal elements.



the channel or medium in which the ad was placed.



the process by which the message is received or decoded by the target audience.

What is your overall opinion of this ad from a marketing communications perspective? What changes, if any, would you recommend to improve the communication effectiveness of the ad? IMC Comprehensive Project Students are encouraged to consider how an understanding of communications and the response process can be of value in developing the IMC plan for the product or service they have chosen. The specific assignment is as follows: IMC Project Assignment for Chapter 4 Use the information from this chapter to analyze how consumers in the target audience for your product or service will respond to elements of your IMC program such as advertising, sales promotion, direct marketing, or your web site. Which of the response hierarchy models discussed in the chapter is most applicable for this product or service? Specify the stages in the response process through which consumers will have to pass before purchasing your product or service.

CHAPTER 5: SETTING OBJECTIVES FOR IMC INSTRUCTOR’S MANUAL Chapter Overview This chapter describes the objectives set in the planning and evaluation of the IMC program, marketing objectives, behavioural objectives, and communication objectives. Promotional planners believe that promotional mix elements communicate, so its effectiveness should be based on how well it communicates and ultimately influences behaviour. The chapter reviews three approaches to communication objectives: the DAGMAR model, and an application of two comprehensive response hierarchies. The chapter then discusses the Rossiter and Percy perspective of communication objectives. Learning Objectives 1. Distinguish among marketing, behavioural and communication objectives and identify the value of setting each type of objective. 2. Describe the historical approaches for setting communication objectives for advertising. 3. Evaluate the options setting behavioural objectives and apply them when constructing a promotional plan. 4. Choose among the options for setting communication objectives and apply them when designing IMC recommendations. 5. Assemble the best combination of behavioural and communication objectives for each stage of the consumer decision-making process. Chapter and Lecture Outline Companies may have difficulty setting realistic objectives to guide the development of the IMC program. They either fail to use specific marketing communication objectives or set ones that are inadequate for guiding the development of the promotional plan or measuring its effectiveness. This view is a result of the uncertainty of the purpose of advertising and promotion and a reliance on sales as an objective. I.

OBJECTIVE SETTING

Objective setting involves organizations knowing the value of objectives and the accurate use of marketing, behavioural and communication objectives during the planning of IMC decisions. A.

Value of Objectives—One reason companies do not set specific objectives for their advertising and promotional programs is their inability to recognize the value. Reasons include: Communication Function—Specific objectives serve facilitate the coordination of groups working on the campaign on both the agency and the client side. Problems are avoided if all parties involved have written and approved objectives to guide their decisions and actions.

IMC Planning and Decisions—Specific objectives are useful as a guide or criterion for decision making. Advertising and promotion planners are faced with several strategic and tactical options in areas such as creative, media, budgeting, and sales promotion. Choices among these options should be made based on how well a strategy or tactic matches the promotional objective. Measurement and Evaluation—Setting specific objectives provides a benchmark or standard against which success or failure of the campaign can be measured. When specific objectives are set it becomes easier for management to measure what has been accomplished by the campaign. B.

Marketing Objectives—Marketing objectives originate in the marketing plan and are statements of what is to be accomplished by the overall marketing program within a given time. Marketing objectives are defined in terms of specific, measurable outcomes such as sales volume, market share, profits, or return on investment. The achievement of marketing objectives depends upon the coordination and execution of all the marketing mix elements, not just promotion.

Sales Objective Debate—Marketing managers may view advertising and promotional programs from a sales perspective and argue that sales or derived measures like market share are the only meaningful goal for advertising. Firms spend money on advertising and promotion to sell their products; thus, money spent on advertising produces measurable sales results. Problems with sales objectives: 

achieving sales could be a function of other marketing mix variables such as product design or quality, packaging, distribution, or price.



the carryover effect which suggests that the effects of advertising on sales are not always immediate and occur over an extended time.



sales objectives offer little guidance or direction to those responsible for planning, developing, and executing the promotional program.

Appropriate use of sales objectives: 

when the promotional efforts are direct action in nature and are designed to induce a more immediate response. For example, sales promotion programs have sales objectives since their goal is often to generate trial or short-term sales increases.



direct response advertising, which measures the success of a campaign in terms of the sales response generated by an ad, however the carryover effect could be strong.

Behavioural Objectives—Behavioural objectives link the marketing objective to the communication objectives by specifying the specific action expected to be taken on the part of the target audience. The idea of gaining sales can occur through different means depending on whether the brand desires greater purchases from current customers (i.e., repeat) or new purchases from non-customers (i.e., trial). Given a different action is required, a different message is required for influence which implies more unique communication objectives.

Communication Objectives—Marketers take the perspective that the advertising’s primary purpose is to communicate, and its effects should be based on communication objectives. Advocates of communication objectives generally use some form of the hierarchical models (e.g., Chapter 4) for setting advertising objectives. Communications objectives should be based Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-44

on the communication tasks that are required to deliver the appropriate message to the target audience. This requires marketing goals to be derived into specific communication objectives. II.

FROM COMMUNICAITON RESPONSE MODELS TO COMMUNICATION OBJECTIVES

This section illustrates examples on how the final point of the previous section is put into practice. A.

DAGMAR—Defining Advertising Goals for Measured Advertising Results is a model developed by Russell Colley in 1961 for setting advertising objectives and measuring the results of a campaign against these objectives. Under DAGMAR an advertising goal involves a communications task that is specific and measurable. A communications task involves something that can be performed by and attributed to advertising. Communication tasks in DAGMAR are based on a hierarchical model like those discussed in Chapter 4. While hierarchical communication effects form the basis of DAGMAR, there are other specific communication tasks that advertising might be expected to perform or help accomplish. A major contribution of DAGMAR was the specification of what constitutes a good objective. Five characteristics of good objectives were noted: 1. Target audience—a good objective should specify a well-defined target audience. The target audience is usually identified in the situation analysis. 2. Measurable task—the communications task or objective should be a precise statement of what appeal or message the advertiser wants to communicate to the target audience. The objective should be measurable in that the method and criteria used for determining if it has been properly communicated should be specified. 3. Benchmark—another important part of setting objectives is having benchmark measures to determine where the target audience stands at the beginning of the campaign with respect to communication response variables such as awareness, knowledge, attitudes, image, etc. 4. Degree of change sought—the objectives should also specify how much change or movement is being sought such as the amount of increase in awareness levels, creation of favourable attitudes or number of consumers intending to purchase the brand, etc. 5. Specified time period—a final characteristic of good objectives is the specification of the time during which the objective is to be accomplished. The time should be appropriate for the communication objective as simple tasks such as increasing awareness levels can be accomplished much faster than a complex goal such as repositioning a brand.

Comprehensive Response Model Applications—the hierarchy of effects model shown in Figure 5-2 is a basis for analyzing the communication response processes of consumers and applied by brands managers to set communication objectives. Figure 5-2 shows examples of the application for each stage for messages and IMC programs, while Figure 5-3 demonstrates how managers might see how many consumers in the market are at each stage. Similarly, the information processing model offers an approach for setting objectives, of which specific measures are applied to assess effectiveness. The usage of these models in practice by professionals is mixed, and the chapter identifies a more applied model (e.g., R&P) for managerial decision-making.

III.

SETTING BEHAVIOURAL OBJECTIVES FOR IMC

R&P’s approach is to establish a behavioural objective for each target audience in terms of trial, repeat purchase, shopping, and repeat consumption. A.

Trial Purchase Objectives—Brand trial purchase is defined as a consumer’s first purchase of a brand. A manager may look to expand sales by setting various trial objectives. A brand trial objective is relevant in scenarios for virtually any business looking to expand its customer base. A brand re-trial objective occurs when consumers have not bought for some time. Category trial is an option where a manager attracts users to the brand from outside its immediate competitive space within a product category. Finally, switching from another brand is an additional situation where trial may be relevant for a manager.

Repeat Purchase Objectives—Repeat purchase is defined as a consumer’s continued purchase of a focal brand within a specified time. Marketing communication programs can influence frequency, amount, or timing.

Shopping Objectives—Action that consumers take that will lead to a higher probability of purchasing the brand are indicative of objectives with respect to shopping that a manager may include in a plan. For example, most people find it imperative to visit a car dealership prior to buying a car. Digital communication has opened the door for marketers to have all sorts of shopping-like experiences that bring their target audiences one step closer to actual purchases.

Repeat Consumption Objectives—For fast moving goods there is ample inventory within a household, and some marketing communication is designed to encourage continued usage of a product that has been purchased. This is tricky idea that some students have difficulty with as they can mix up buying with consuming.

IV.

SETTING COMMUNICATION OBJECTIVES FOR IMC

R&P summarizes four communication effects (Chapter 4) that an ad, advertising campaign, or IMC plan may have on consumers. These are stated as objectives, as follows: A.

Category need—pertains to whether the target audience feels the need to purchase within the actual product category. Options include omit, remind, or sell.

Brand awareness—is a universal communication objective. This means that every single point of communication should contribute to a target audience’s understanding and knowledge of the brand name. Options include recall, recognition or both recall and recognition.

Brand attitude—is another universal communication objective. Like brand awareness, every aspect of a firm’s IMC program should contribute to some aspect of the overall evaluation of the brand from the perspective of the target audience. Stated as specific benefit, attributes to be communicated. Also, more general beliefs and emotions or affect can also be established.

Brand purchase intention—consists of two options; brand purchase intention is assumed, or Brand purchase intention is generated.

IV IMC PLANNING: OBJECTIVES FOR BUYER DECISION STAGES Marketing communication is designed to help the target audience move through the steps of the consumer decision-making process. This process is assessed for each target audience and a conclusion is Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-46

made as to which communication objectives are most relevant for each stage. Refer to Figure 5-5 as an illustration of how this works. Teaching Suggestions This is an important chapter for IMC planning. Students need to understand that setting good objectives guides the planning and development of an advertising campaign as well as for providing a standard against which performance is measured and evaluated. This chapter stresses the difference between marketing and sales versus communication objectives and behavioural objectives. The DAGMAR model relies heavily on the response hierarchy models discussed in Chapter 3. Students should recognize that the specific communication objectives that are appropriate will vary depending on the buying situation. The DAGMAR model is discussed as a viable approach to setting advertising objectives. A very valuable aspect of DAGMAR is the specification of characteristics of good objectives which are discussed in the text. While most companies are not going to meet all the criteria set forth in DAGMAR, it is important that students recognize the characteristics of good objectives. Another important issue to address in discussing this material is the difference between sales versus communication objectives. The instructor may want to find some examples of campaigns which have won awards and/or have been very effective from a communications perspective but not in terms of sales. The chapter ends with a description of the behavioural and communication objectives from the Rossiter and Percy perspective that have a few noteworthy features. These place greater importance on the brand manager responsible for promotional communication. Managerial options for each are identified as a guide for making objective-setting recommendations. More specific behavioural objectives, connected to the target audience, are clearly delineated. There is greater importance placed on the central concept of brand attitude that accounts for both cognitive and affective characteristics. This perspective can be used to set objectives for all levels of communication decisions. Vignette 1. Based on this summary, what objectives is Lululemon trying to attain? Students should recognize that Lululemon appears to be trying to achieve all communication objectives from the R&P perspective, and likely for any objectives from any other communication model. From a behavioural objective standpoint, one would conclude trial, repeat purchase, repeat consumption, and shopping. Given this conclusion, students should recognize that there is variation in the objectives depending on the IMC program as there appears to be multiple target audiences in terms of customer and non-customer and in terms of other segmentation variables. Instructors can lead the discussion towards which variables might be hypothesized with each program. From a marketing objectives point of view, it appears Lululemon is trying to increase sales as it expands its product and market expansion, which is a likely explanation for the rational of the other objectives. IMC Perspective 5-1 1. What forms of paid advertising should Collective Arts consider, and what objectives would it help the brewing company achieve? The task requested for students is challenging, especially before covering the media chapters. However, when teaching IMC it is important to link topics and concepts throughout the course so students can understand where the course is going and where it has been. Students will likely Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-47

suggest paid social media advertising and instructors could explore which media vehicles (e.g., Facebook vs. Instagram) and what ad format would be most useful to achieve awareness and attitudinal objectives. As part of this discussion, instructors could explore how the objectives might vary between customers vs. non-customers. Potentially, students could appreciate wider exposure to improve reach and frequency as a way of increasing sales and suggest out-of-home advertising (e.g., outdoor or location) that could celebrate the artists’ work. A public display of their artwork would be a testament to their creativity and also increase point-of-purchase brand awareness. The question arises whether either social media or outdoor delivers a purposeful message and what does a purposeful message mean? Instructors could explore this issue and the ethical issue of whether Collective Arts supports artists or whether they are somewhat taking advantage of their work with commercial sales. IMC Perspective 5-2 1. What new direction could Sobeys take with its marketing communications to continue its positive momentum? This task is similar to IMC Perspective 5-1 where students are encouraged to propose ideas of different IMC programs to continue attainment of the objectives that Sobeys appears to be attaining. Thus students should establish the reasons why the program described is established, and think of new and innovative ideas that will reinforce these objectives. Again, this question shows students how and why the establishment of objectives is so critical since they guide program decision-making. For both perspectives, instructors can refer to or apply Figure 5-2. Answers to Review Questions 1. Discuss the value of setting objectives for the integrated marketing communications program? What important functions do they serve? Specific goals and objectives are the foundation upon which integrated marketing communications decisions involving advertising and other promotional programs should be made. They serve as communication devices and facilitate the coordination of activities of those working on the campaign. They also serve as a guide to promotional planning and decision making and provide a benchmark or standard against which success or failure of the campaign can be measured and evaluated. 2. What are the strengths and weaknesses of using traditional hierarchy models for setting communication objectives? The traditional hierarchical models have a couple of key strengths. They provide an understanding of consumer’s response to advertising. They also guide the steps for planning advertising objectives. Firms could focus on certain stages for making communication objectives (i.e., awareness). However, there are two important limitations. It is difficult to believe that consumers go through the steps in the prescribed cognitive-affective behaviour process for all purchases. Furthermore, it is difficult also to believe that consumers could not be having both affective and cognitive responses at the same time. 3. Some claim that promotion is all about communication, so we should only focus on communication objectives and not worry about behavioural objectives. Convince them otherwise. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-48

Behavioural objectives are required if one accepts that the target audience’s current behaviour is the prime factor in constructing the message. Behavioural objectives help define the target audience further and they provide a bridge between communication objectives of the promotion plan and the marketing and the marketing objectives of the marketing plan. For example, if a trial is required, then the message might want to focus on imagery of consumers going through the decision-making of buying the product for the first time. Alternatively, if repeat purchasing is required, then the message might pertain to the continued satisfaction of buying once again, or how the brand is better than others to prevent switching out of the brand. 4. If a firm cannot afford large market research studies to quantitatively assess whether communication objectives have been achieved, why should the firm bother setting communication objectives? Communication objectives are still valuable because they guide the rest of the communication decisions. They provide the criteria for managers and agencies to make the appropriate strategic and tactical creative decisions. They can also provide guidance for media and sales promotion decisions. There is also some literature on doing market research very inexpensively that goes beyond traditional sources that large firms use, so tracking campaigns can be feasible even without resources. 5. A firm is running a campaign with advertising, sales promotion, and public relations. Why might it have communication objectives for each IMC tool? This is an application of the model presented at the end of the chapter and picks up on the Rogers example where every part of IMC has some effect. Since consumers go through the decision-making process, at each stage they may be influenced by communications from various sources (i.e., ads, sales promotions, public relations). Ads could generate awareness and an initial favourable attitude about a car. Upon researching the vehicle, ratings and reviews from car publications may solidify the attitude and lead to sales. Sales promotions like financing or rebates could lead to a stronger purchase intention. Answers to Applied Questions 1. In meeting with a client for an energy drink, you are informed that the only goal of advertising and promotion is to generate sales. As an account planner for a marketing communication agency, present reasons why communication objectives must also be considered. The bottom line for for-profit organizations is to increase market share, sales, or both. Thus, for many managers, the goal of advertising is to generate sales. Managers frequently ask the question, “If I increase my advertising budget by X%, what will the impact be on sales?” While the goal of the promotional program may be to increase sales, there are several reasons communications objectives must be considered as well: 

Communications objectives are intermediary objectives often required to generate sales. Creating brand awareness, and favorable attitudes may be required before the consumer purchases. The hierarchical models demonstrate that purchases are not always spontaneous, and that consumers must be moved through a hierarchy of goals. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-49



Communications objectives are measurable, while the relationship between advertising and sales is often difficult to exactly determine. It’s not that sales can’t be measured, but rather that establishing a measurable impact is very difficult.



Other factors beyond advertising contribute to sales. There is an old saying that nothing will kill a poor product faster than good advertising. In other words, if a company has a good advertising program but the product is not good, then sales will not increase. Likewise, if the product is not available due to distribution problems, then the impact of advertising will not be known, or if the price is too high, sales will not be affected. Finally, an excellent marketing program may be negatively impacted by market conditions. Weather, recessions, and other factors may result in a loss or no change in sales even though the advertising program is effective.



Not all advertising is designed to increase sales. Creating a brand or corporate image, generating awareness, appeasing stockholders, etc. are just some of the reasons why companies advertise. Cause-related marketing and advocacy advertising are additional reasons why companies may advertise other than directly influencing sales.

2. Assess what the behavioural objectives would be for each ad in this chapter. Ads that imply trial include 2, 3, 4, 7, 8, 9, 10, 11, 12, 19, 21, 23. Ads that imply repeat purchasing include 5, 13, 17, 20, 22. Some might debate a couple, but the point is that most ads imply a behaviour to see the target audience from a current brand behaviour standpoint. 3. Assess what the communication objectives would be for each ad in this chapter. All should be contributing to awareness and attitudinal communication effects. Students should study each ad to see if the brand is well identified and whether the message clearly influences the target audience’s attitude in any regard. Some ads appear to influence category need, 3, 4, 9, 11, 16, 22, others appear to influence purchase intention, 2, 7, 10. 4. After assessing the objectives for some of the ads of this chapter, check out the brand’s Internet site or social media offerings and determine if the objectives are the same or different. This is an application exercise. It is intended to show students that firms could have different target audiences across different IMC programs, or it could show that the firm is using these two programs to reach the same target audience. In some cases, the advertising is directed to one target audience through selective media purchases, but since the web is universally accessed it could have sections directing various target audiences. Additional Discussion Question (not in text) A. What are the differences between marketing objectives and communications objectives? Why do managers confuse the two? Marketing objectives are statements of what is to be accomplished by an organization’s overall marketing program within a given time. They are usually stated in terms of specific, measurable outcomes such as sales volume, market share, profits or return on investment. Communication objectives are statements of specific communication tasks that are to be accomplished such as Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-50

creating awareness, brand knowledge and interest, favourable attitudes and image, purchase intentions and the like. Managers confuse the two types of objectives because they approach their advertising and promotional programs from a sales perspective and tend to view sales or some related measure as the only meaningful objective of advertising. They tend to think in terms of how the promotional program will influence sales and end up reducing communication objectives to sales-related measures. B. What is meant by an advertising carryover effect? Discuss the problems carryover creates for managers who are trying to determine the impact of their advertising on sales. Experts agree that advertising may have a lagged or carryover effect. That is, the results of the advertising may not be immediately felt. For example, ads are stored in memory, and acted upon later. This effect may cause problems for marketers who are trying to assess the impact of these ads in the short run. If the ad is run now, but effects are not felt until later, it may be difficult to show that the advertising had an impact. Management, impatient as they sometimes may be, may not wish to consider spending waiting for the effects to happen. When the carryover effect is added to the other problems associated with using sales objectives, it makes the job of proving the impact of advertising’s effect on sales even more difficult for the ad manager. C. In what situations would brand awareness be the only communication objective for an advertising campaign? This is a bit of a tricky question and sets up a debate that you may like to pursue. The model presented argues that all communications should contribute to awareness and attitude. If it does not contribute in some manner, then it is, by definition, not effective. If this is true, then there are no situations where a firm would spend money on ads only for awareness. Often, news stories report that a firm or organization is running an awareness campaign. This is, in fact probably a short way of saying that yes, the brand is trying to increase awareness and influence attitudes. If students propose situations where some attitudinal component is not addressed, it is certain that they have not thought hard enough to see that the ad could be contributing to the overall liking of the brand by the target audience – the heart of brand attitude. IMC Exercise Find an example of how a marketer has used a specific promotional mix program other than advertising as the basis for the “big idea” for an IMC program. For example, you might find an example where a company has used innovative packaging, sales promotion, or publicity as the lead element of their IMC program. Why do you think the company chose to lead with this specific promotional mix element? Discuss how other promotional mix programs were used in developing the overall IMC program. IMC Comprehensive Project At this point, students should be prepared to develop specific advertising and promotional objectives that will guide the development of their IMC projects.

IMC Project Assignment for Chapter 5 Specify the objectives for your IMC program. Describe how your objectives have evolved from the marketing and promotional situation analysis you conducted for your product or service. Explain whether you are using sales or communication objectives and the rationale for your choice. Do your objectives satisfy the criteria specified by the DAGMAR model? Carefully state the behavioural and communication objectives of your target audience. Is it possible to state objectives for different stages of the decision-making process?

CHAPTER 6: BRAND POSITIONING STRATEGY DECISIONS INSTRUCTOR’S MANUAL Chapter Overview This chapter bridges the strategic orientation of the marketing plan and the creative decisions of creative specialists. It examines the decisions and process associated with the topic of brand positioning strategy. Promotional planners receive direction from the situation analysis and decisions of the strategic marketing plan and translate that information into communication strategies for its target audiences. In turn, promotional planners collaborate with creative specialists to ensure that the communication strategies are executed with appropriate creative messages. Brand positioning strategy is a key decision involved that links marketing strategy to creative strategy and is the primary consideration of this chapter. Learning Objectives 1. Identify the concepts of market positioning strategy, market position, brand positioning strategy and brand position. 2. Illustrate how to formulate the brand positioning strategy decision. 3. Demonstrate brand positioning strategy opportunities. 4. Interpret brand positioning strategy decisions in other contexts. Chapter and Lecture Outline I.

POSITIONING

The first part of the chapter is devoted to reviewing the market positioning concept to understand the brand positioning concept. The decision-making process for brand positioning is also examined. A. Market Positioning Strategy—A strategic marketing plan evolves from an organization’s corporate strategy and guides specific marketing programs. From a promotional standpoint, planning specialists use the information contained in the marketing plan to create the promotional plan. A key piece of information is the strategic direction of the marketing mix as suggested by the market positioning strategy. Positioning is a guiding idea in the strategic marketing plan that is a result of identifying alternative market opportunities (i.e., areas where the company feels there are favorable demand trends, where customer needs and/or wants are not being satisfied and where it could compete effectively). Firms write a marketing positioning statement in their marketing plan to accurately communicate a market positioning strategy. Planners consider combinations of attributes that research indicates the target market will accept. As the firm develops its market positioning strategy, promotional planners consider market and competitive information to understand the context of the market positioning decisions and the subsequent brand positioning decisions. Implementation of the marketing plan yields outcomes. A critical one is the market position, the resulting consumer Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-53

understanding of where a firm’s product is in the market relative to its main category competitors and related category substitutes. The shampoo example illustrates this idea. B.

Brand Positioning Strategy—A brand positioning strategy relates to the image of the brand relative to a competing brand. It is a key decision prior to determining the most effective message of the advertising or the IMC. The consumers’ reactions to advertising and promotion are referred to as the brand position. The brand position is understood along the lines of salient attribute and/or salient benefits and is displayed with a diagram illustrating where the brand is in relation to other brands within a given competitive space. The chocolate bar example in the text illustrates this application.

Brand Positioning Strategy Decision Process—involves six steps to produce a strategy. 1. Develop a market partition. 2. Determine competitors' position. 3. Assess brand position. 4. Determine brand positioning strategy. 5. Monitor brand positioning strategy. 6. Monitoring the brand positioning strategy.

II.

BRAND POSITIONING STRATEGY DECISIONS

This section provides a detailed approach to explain brand positioning strategy by identifying its key decisions, market definition, differential advantage, target audience persuasion, and consumer purchase motivation. Brand positioning strategy is an approach to see the concept of positioning applied in the context of advertising or marketing communication as compared to the marketing strategy. A.

Market Definition—promotional planners select from four options for market definition. Each of these corresponds to an approach the consumer views when beginning their decision-making. 1. Positioning by end benefit—setting a product apart by stressing a specific characteristic (i.e., attribute) or benefit offered. The examples in the text demonstrate how important and how frequently positioning by end benefit occurs. 2. Positioning by brand name—quality characteristics are emphasized by a brand that lead consumers to believe that it is premium or a luxury brand. Other brands associate with a quality message at a competitive price. Other positioning by brand name occurs when brands directly emphasize their core benefit to the brand name, or the history and origin of the brand name. 3. Positioning by usage situation—teaching consumers how to use a product in new or different situations is a way to grow sales for both new and established products. 4. Positioning by product category—the examples provided in the text reflect this strategy in which the product is positioned against others that while not the same, provide the same class of benefits. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-54

Differential Advantage—the most common approach for establishing and maintaining a differential advantage based on consumers’ beliefs is differential with a product focus. The options here indicate unique alternatives that some brands attempt, central instead of differential, and user focus instead of product focus. 1. Differential Positioning—Advertisers construct messages to establish or reinforce an advantage that a target audience would respond towards favourably. An historic approach is based on quality in which a brand claims stronger delivery on key attributes or benefits that the target audience values the most. Emphasis of key attributes or benefits in other directions (e.g., convenience or consumption experience) are possible if the ad claims support the beliefs of the target audience. 2. Central Positioning—While a differential positioning is the classical or typical approach, a newer idea suggest that a brand may not make claims in relation to being superior to a competitor, but rather claim as if they are the best in the category with their claim defining the category. This is a less common approach but can be seen with useful examples from brand leaders. A couple of suggestions in the text attempt to support this idea. 3. Product Positioning—In this approach, the product is positioned at a particular group of users. The ads provide good examples to demonstrate this strategy in practice as do the examples for the other products identified. In the product focus, the differential advantage is communicated by the superiority of the brand’s ability to deliver benefits. 4. User Positioning—In contrast to the product focus above, messages do not address the product but rather the user of the product to illustrate the differential advantage or central positioning.

Target Audience Brand Attitude—Advertising creates favorable attitudes toward new products, reinforces or maintains existing favorable attitudes, and/or changes negative attitudes. 1. Brand Attitude Persuasion multi-attribute models are used to study consumer attitudes and persuade target audiences. These models view an object such as a product as possessing several attributes that provide the basis on which consumers form their attitudes. According to this model, consumers have beliefs about specific brand attributes and attach different levels of importance to these attributes. Figure 6-13 illustrates an application. There are four approaches for applying this model to persuade consumer attitudes. 2. Influence Attribute Belief—brands attempt to strengthen consumer brand attitude by making claims about an important attribute that the brand delivers well. 3. Influence Attribute Importance—brands attempt to strengthen consumer brand attitude by persuading consumers that an attribute that the brand delivers well is more important than initially considered. 4. Add new Attribute Belief—brands attempt to strengthen consumer brand attitude by making claims about a new and important attribute that the brand delivers well, and in which the brand has not recently claimed. 5. Influence Attribute Belief of Competitor—sometimes brands attempt to weaken consumer beliefs about an attribute that a competitor delivers well on, thereby making the brand relatively stronger from an attitude measurement standpoint. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-55

6. Brand Belief and Emotion—brands communicate cognitively or emotionally in a general sense rather than on specific attributes to influence consumer attitudes. This is an extension of the multi-attribute model by not focusing on a specific attribute to persuade. C.

Consumer Purchase Motive—this highlights the importance of accounting for consumer motives while positioning advertising messages. Eight managerially useful motives are suggested that are grouped into two types, informational and transformational. Examples of Canadian companies using each of the eight motives are provided along with an indication of how the more traditional aspects of positioning are also used. Instructors are encouraged to find other examples to illustrate these concepts. 1. Informational motives—are those in which a consumer perceives deficit in the current state and seeks a product that will return them to a more “normal” state. 2. Transformational motives—are those in which a consumer perceives themselves to be in a “normal” but desires to be improved or enhanced positively through product purchase. 3. Motive and Attribute Importance—Figure 6-15 extends Figure 6-13 by showing how the application of the multi-attribute model is modified by adjusting the attribute importance based on consumer motivation. The data shows how brand attitude scores change if the importance becomes more specific in terms of informational and transformational motives.

III.

BRAND REPOSITIONING STRATEGY

Declining sales or market share may lead a firm to change its brand positioning strategy, sometimes identified as brand repositioning strategy. The origin of the decline could be discovered in the situation analysis (e.g., consumer, competition), as one factor may be a key driver in the need for a change. It is important to show a link from the situation analysis that provides support for the promotional planner to alter the brand positioning strategy. Figure 6-16 guides the remainder of the section by showing that brand repositioning occurs by changing one or more of the four decisions, market definition, differential advantage, target audience persuasion, and purchase motivation along with a target audience. Examples are shown for each of the five target audiences. Often times, brands are not planning to change their price point differential or alter the product or move into alternative distribution avenues yet would like to build sales or gain market share via advertising or some other IMC program. IV

IMC PLANNING: BRAND POSITIONING EXTENSIONS

This concluding section shows that unique brand positioning strategies are developed for specific target audiences. For example, some messages designed to attract new category users would suggest one kind of brand positioning while messages intended to retain existing loyal customers might suggest an alternative brand positioning. The rest of the section extends this idea to suggest that the brand positioning idea can be extended to the different buyer decision making stages and to corporate brands. Teaching Suggestions This chapter in the Canadian edition is different that the US edition; the former contains a whole chapter on positioning while the latter devotes about four pages. This reorganized chapter provides students with a review of the marketing process and marketing strategy decisions to put the strategic communication brand positioning strategy decision into context. The transition from a market positioning of the marketing strategy to a brand positioning strategy of the IMC plan is challenging to Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-56

communicate to students. One method is to investigate the distinction between target market and target audience thoroughly. The difference in this concept distinction is subtle. It is important for instructors to illustrate some of the examples in the text or refer to their own. Naturally, the distinction is difficult to observe practically in some instances, and there may not be any differences for some cases. So it is wise to find examples that are more obvious than ones where it may be less apparent. The chapter provides a more structured and theory supported perspective of positioning. Considering the significance of using the positioning concept to set the direction of a communications strategy, instructors can use either of the developments to give stronger grounding for their students. The use of attitude change strategies and the importance of linking consumer motives to positioning are the two avenues for further explanation. Vignette 1. Which of the four brands discussed in this vignette has the best brand positioning strategy? Instructors can set up a debate on the merits of each strategy. In the wrap-up it is important to identify the full brand positioning strategy of each and suggest how it could change in future. IMC Perspective 6-1 1. Which of the brands discussed in this vignette has the best brand positioning strategy? Instructors can set up a debate on the merits of each strategy. In the wrap-up it is important to identify the full brand positioning strategy of each and suggest how it could change in future. IMC Perspective 6-2 1. Which of the brands featured in this box has the best brand positioning strategy? Instructors can set up a debate on the merits of each strategy. In the wrap-up it is important to identify the full brand positioning strategy of each and suggest how it could change in future. The vignette and two perspectives all have the same style of multiple examples to illustrate the chapter. Variations in the debate/discussion could bring the material to life for students. Answers to Review Questions 1. Why is it useful to distinguish between market positioning strategy, market position, brand positioning strategy and brand position? A market positioning strategy requires consistency among all marketing mix elements. For example, it is difficult for the consumer to perceive that the best brand can also be the least expensive. A highpriced perfume/cologne would certainly lose some of its image if distributed in a discount store. Thus, a market positioning strategy is written within the marketing plan and is dependent upon the whole marketing mix and is derived from the corporate plan regarding a particular product-market. The resulting effect is known as the market position to illustrate the target market’s beliefs. A brand positioning strategy is the planned image while the brand position is the resulting image that the target audience believes about the brand. A manager would naturally like the brand position to be identical to the brand position at the end of the planning period to demonstrate success; however, this may not be the case as the message might get misunderstood or not be the Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-57

right message. Alternatively, a brand position might be stronger than anticipated with an audience for which the brand was not targeted, thus indicating an unexpected success. Distinguishing between these four concepts allows planners to have a clear vision of positioning in the context of their marketing strategy and withing the context of their advertising or IMC strategy. 2. What problems would a brand encounter if it communicated with an incorrect motive? Communicating an incorrect motive can lead to weaker brand effects. For example, a fashionable retailer of men’s clothing (e.g., Harry Rosen) could suggest that men would save time by visiting their store since many men do not enjoy shopping (e.g., problem avoidance). However, this motive is not the correct one as social approval or some other positive motive would be more likely, or at least incomplete satisfaction with one’s current retailer could be plausible. In each case, a better ad would be created and understood by the target audience. 4. What factors would lead a marketer to the use of a repositioning strategy? The most common factors leading to repositioning would be a loss of sales, a growing market, and/or the entry of a new product into the marketplace. Other factors might include an erosion of the product image, a desire to enter new markets and/or even management desires. In any of these cases, the advertiser would look to a new target audience or perhaps a new message that had a different motive. The CASSIES identified in the chapter propose a key feature of the situation analysis that likely contributed to the repositioning strategy. 5. Why is it important to consider unique brand positioning decisions at each of the buyer decision stages? Is it feasible to implement this approach for all product categories? Since brand positioning strategy is the direction the brand would like a target audience see the brand, it is quite likely that users and non-users would have different purchase behaviours; thus necessitating unique messages with varying levels of information to convince them of either repeat buying or trial. The feasibility of this approach is dependent on factors such as size of each audience and the costs to develop the messages and media costs. With lowers costs for both of these via social media, it is entirely possible that brands could consider such an approach. Answers to Applied Questions 1. Examine the social media presence of a brand and assess whether it clearly identifies a brand positioning strategy. This exercise directs students to investigate a topic of interest. Students will likely select a brand they consume and use themselves as a representation of the target audience. With this in mind, the student will implicitly think about how the positioning is occurring with social media vs. what they may have been accustomed to via TV or other mass media. Answers should clearly remark upon all four decisions for a brand positioning strategy and give an indication of effectiveness. 2. Explain why a central positioning strategy is feasible. Do any brands currently use this approach in their marketing communications?

Central positioning is a newer idea, and in a world with iPads, the idea is clearly an option for brands to consider and attempt. As expected, really only one brand in a product category would attempt such a strategy, but it would be an interesting debate if students could identify a product category where two brands attempted the strategy. The option is entirely feasible as the iPad example suggests where the brand attempts to “own” the category as its marketing communication messages indicates that the market is defined via brand name. 3. Develop market partition diagrams for beverages. What repositioning options are available for any brand? This question asks students to apply Figures 6-8 to 6-11 to a different product category other than the automobile market such as soft drinks. A product type partition would include cola and non-cola or diet and non-diet as an initial breakout. An end benefit partition might include refreshing or thirst-quenching among others of a similar nature. A usage situation partition could see soft drinks as a mixer or a beverage for drinking with a meal etc. Finally, Coke and Pepsi view is clearly seen in the brand name partition. For either of these brands, all four options may be applicable for various target audiences, and likely, both brands have used all four types of partitions for different campaigns over time. 4. How can brand positioning decisions be applied to new category users and brand loyals users of smartphones? The attitude towards the product category for new category user and brand loyal is fundamentally different since the former does not consume and is therefore less knowledgeable thereby requiring more extensive communication. This fact suggests a message of an educational nature in order for a brand attitude and category attitude to be established. Encouraging repeat purchasing for a brand loyal is important and brands would use their existing positive (presumed) attitude and use messages to ensure consistency or slight improvement. In both scenarios, an appropriate message is required that will be within the latitude of acceptability for the brand to thrive. Additional Discussion Questions (not in text) A. Establishing brand image is often difficult for new companies. Explain what these companies must do to establish a strong brand image. As noted in the chapter, developing an image requires positioning. The chapter notes that there are six questions answered to develop a position. The organization determines what it wants to be, how it is different from competitors, and whether it can claim and maintain that image. The image then is supported by an IMC program, with each element designed to reinforce the image. Companies fail to achieve a distinct image for a variety of reasons. First, all communications efforts do not support this image, due to inconsistencies. Secondly, the brand or corporate identity does not contribute to the overall image. Most importantly, building an image takes time. Companies that have been successful in building and/or changing their images have invested much time and effort into this endeavor and have stayed with one consistent strategy through thick and thin. B. Discuss the attitude change strategies recognized by the multi-attribute model. Discuss how an airline could use these attitude change strategies in their advertising program. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-59

The multi-attribute model shows how marketers can influence consumer attitudes. Each of these strategies might be used by an airline to influence the attitudes of flyers toward their airline. The first strategy is increasing or changing the strength or belief rating of the airline on an important attribute. The airline should identify which attributes are important to flyers and emphasize them in their ads. For example, most airline flights are priced similarly so they focus their marketing and advertising on the quality of their service. They run ads that stress the high quality of customer service they provide at all levels of the flying experience. Another strategy is changing consumers’ perceptions of the importance or value of an attribute. An airline may want to emphasize a particular feature or benefit and why it is should be important to flyers. For example, airlines talk about their frequent flyer programs and encourage consumers to accumulate miles by being loyal to them. Adding a new attribute to the attitude formation process is another strategy recognized by the multiattribute model. An airline may find a new service or benefit it wants to provide to consumers that isn’t currently offered by competitors. For example, some airlines have increased the amount of leg room they offer in coach class while others offer wider seating. A final strategy is changing perceptions of belief ratings for a competing brand. An airline may identify an area where a competitor is weak or vulnerable and note this in a comparative ad. For example, one airline may have a better offering of flights between two cities or may have a better on-time arrival record. These advantages could be pointed out in a comparative advertisement. C. Why is the brand attitude model important for brand positioning strategy? The model is important since it provides a way of understanding and computing a target audience’s attitude to a brand. It is comprised of general cognition and affect towards the brand and individual cognitive and emotional element as well. These are manifested with beliefs about brand attributes (or benefits) and their importance. Once the decision maker has laid out all the possible attributes, and obtained marker research ratings on them, the focus turns to which one or ones that need to be improved through communication to improve the overall brand effect. A few strategies to do this are shown in the text to plan for individual components to change. IMC Exercise Find examples where an advertiser has multiple brand positioning strategies. Suggest students find communications for a brand that are directed to current customers (e.g., switchers) and others for the same brand that are directed to non-customers (e.g., new category users). Ask the students what makes the positioning unique for each target audience. IMC Comprehensive Project Students should be considering different positioning options at this stage so that the creative strategy and tactics have an appropriate strategic direction.

IMC Project Assignment for Chapter 6 Develop market position and brand position diagrams for the brand you are marketing. Identify certain opportunities for developing an improved brand positioning strategy decision. What attributes or benefits should the brand claim in its new advertising campaign? What method of positioning is most relevant in terms of consumer or competition? Identify the most relevant motive to base your positioning. What sources of information should be used as creative to support the brand positioning strategy?

CHAPTER 7: CREATIVE STRATEGY DECISIONS INSTRUCTOR’S MANUAL Chapter Overview Promotional planners receive direction from the situation analysis and the strategic marketing plan decisions and translate that information into communication strategies for its target audiences. They also work with creative specialists to ensure that the communication strategies are executed with creative messages. This chapter is devoted to advertising creative strategy decisions, creative theme, message appeal, and source characteristics. Approaches used for determining the creative theme that forms the basis of an advertising campaign are described. Message appeals are presented and theoretical conclusions from academic research are provided. Adaptation of a model of source characteristics and its implication for advertising is explored. Learning Objectives 1. Summarize the idea and importance of creativity in an advertising context. 2. Describe the creative strategy planning process. 3. Identify the approaches used for determining the creative theme that forms the basis of an advertising campaign. 4. Summarize the different types of message appeals that advertisers use to persuade their target audience. 5. Identify the source or communicator options a marketer has for a promotional message. 6. Apply source and message appeal options for different ad executions. Chapter and Lecture Outline One of the most important components of an integrated marketing communications program is the advertising message. There are many ways to convey an advertising message, however, underlying the messages is a creative strategy determining what the advertising message will communicate and creative tactics dealing with how the message strategy will be executed. The focus of this chapter is on the development of creative strategy while tactical decisions are covered in Chapter 8. I.

ADVERTISING CREATIVITY

It is relevant to define creativity and explain its importance to see how it is critical for the promotional program. The concept of creativity in general and how it works in advertising is reviewed. A.

Definition of Advertising Creativity—creativity is a commonly used terms in advertising as those who develop advertising messages are referred to as “creative specialists”. Advertising agencies develop reputations for their creativity. So much attention is focused on creativity because the major challenge given to those who develop advertising messages is to be creative. Creativity Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-62

has been defined as “a quality possessed by persons that enables them to generate novel approaches in situations, generally reflected in new and improved solutions to problems.” Advertising creativity refers to “the ability to generate fresh, unique and appropriate ideas that can be used as effective solutions to communications issues.” Creative advertising ideas that are appropriate and effective require relevance and divergence. Relevance pertains to ad to consumer relevance and brand to consumer relevance so that processing and communication effects can take hold. Ads that hold no relevance for consumers are typically ignored. Seemingly in contrast though, divergence is important to break through the clutter of competing ads as it offers a novel scenario via originality, flexibility, elaboration, synthesis, artistic expression. B.

Importance of Advertising Creativity—Perspectives of what constitutes creativity in advertising vary. At one extreme are the “suits” who argue that advertising is creative only if it sells the product. At the other end of the continuum are the “poets” who judge creativity in terms of artistic or aesthetic value and argue that creative advertising must be novel, original, and unique. In truth, advertising creativity is somewhere between these two extreme positions. The creative side of advertising is one of its most interesting aspects. The creative strategy used to communicate an advertising message is an integral part of the promotional process and is often critical to the success or failure of the campaign. Numerous examples are cited of how a good creative strategy was an important factor in determining the success of a product or reversing the fortunes of a struggling brand. The issue of creative versus effective advertising is useful to review as ads may be critically acclaimed from a creative perspective but fail to help brand sales. Differing views of advertising creativity are seen among creative specialists as art directors and copy-writers can disagree on this matter, in addition, advertisers, students and the general public often differ in their views on creativity. Research concludes that processing effects and communication effects are two key indicators of effective creativity.

II.

PLANNING CREATIVE STRATEGY

Those who work on the creative side of advertising face a challenge. They use research, creative briefs, strategy statements, communication objectives and other inputs and transform them into an advertising message. Their job is to write copy, design layouts and illustrations and produce commercials that communicate effectively. Marketers often hire advertising agencies to develop and implement their advertising campaigns because they are specialists in the creative function of advertising and are prepared for the creative challenge. However, the development of creative strategy also involves representatives from the client side and other people in the agency. Planning creative strategy follows a general process that guides the development of the advertising campaign. Various types of research and information provide input and insight into the creative process. A.

Creative Challenge—individuals who work on the creative side of advertising are responsible for developing an effective way of communicating the marketer’s message to their customers. The creative person or team is provided with background information on the target audience, such as their demographics, needs and motives, and communication objectives. However, every marketing situation is different and requires a unique approach. Creative people in agencies may argue that they often follow proven approaches or formulas when creating ads because they are safe and less likely to fail. They note that their clients are very often risk averse and feel Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-63

uncomfortable with advertising that is too different. It is important to note that companies who have very creative advertising are more willing to assume some risk. However, managers are more comfortable with advertising that communicates with customers. B.

Creative Process—advertising people have argued that creativity in advertising is best viewed as a process and that creative success is most likely when some organized approach is followed. While most advertising people reject and/or resist attempts to standardize creativity or develop rules or guidelines to follow, most creative people do follow some type of process when approaching the task of developing an advertisement. There are several models or approaches to the creative process including those of James Webb Young, a former creative vice president at the J. Walter Thompson agency, which suggests that creative thought evolves in five stages Immersion. Read background information. Digestion. Work the information over in one’s mind. Incubation. Get away and let ideas develop. Illumination. See the light or solution. Verification. Refine the idea and see if it is an appropriate solution. Models of the creative process offer an organized way of approaching an advertising problem. These models stress the need for preparation by gathering background information that is relevant to the problem as a first step. A key factor is also the involvement of all participants including client personnel, creative specialists, and account planners.

Account Planning—account planner drives the creative process from the perspective of the client and coordinates the research so that creative and media specialists have sufficient information to make decisions that are effective for the client’s needs.

Research in the Creative Process—specific research occurs at each of the stages of the creative process. There are numerous ways creative specialists can acquire background information that is relevant to the advertising problem. Some of those discussed in the text include. 1. Background research—informal fact-finding activities to gather preliminary information. 2. General preplanning input—gathering market research studies on trends, developments, and happenings in the marketplace to assist in the initial stages of the creative process. 3. Product specific pre-planning input—involves quantitative and qualitative studies to understand consumer behaviour, and possibly market and competitive information. 4. Quantitative research—attitude studies, market structure, and positioning studies such as perceptual mapping and psychographic or lifestyle profiles that provide a descriptive understanding of consumer behaviour. 5. Qualitative research—exploratory techniques such as in-depth interviews or focus groups with customers or ethnographic studies to interpret consumer motives. 6. Evaluative research—at the verification stage specialists evaluate ideas that come from the first stage, reject inappropriate ones, and refine those that remain and help give them final Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-64

expression. Techniques used at this stage include focus groups, message communication studies, portfolio tests, pretesting of ads in storyboard or animatic form. E.

Creative Brief—a creative brief provides a plan that guides the development of an advertising message or campaign. This document is prepared by the agency team or group assigned to the account and may include creative personnel as well as the account coordinator and representatives from media and research. The advertising manager and/or the marketing and product manager from the client side will also be involved in the process and must approve the copy platform. An example of a copy platform outline is shown in the chapter.

Advertising Campaign—a main characteristic of a campaign is multiple executions to tell the story of the brand and to allow consumers an understanding of the brand message. Generally, a minimum of three executions are run for marketing communication to be considered a campaign in comparison to a singular ad placement. This notion of three is not proven, but generally understood and is more of a practical suggestion based on observation.

III.

CREATIVE THEME

Most advertisements are part of a series of messages that make up an advertising campaign, which consists of multiple messages, often in a variety of media that centre on a single theme. The creative theme is a critical decision as it sets the direction for the development of the individual ads that make up the campaign that should reflect the market positioning strategy and establish the brand positioning strategy for the intended target audience. A campaign theme should be a strong idea, as it is the central message that will be communicated in all the advertising and other promotional activities. A.

Origin of Creative Theme—an important part of creative strategy development is determining the central theme that will become the big idea for the ad campaign. There are several approaches for developing the big idea, some of the best known include: 1. Unique selling proposition—is described in Rosser Reeve’s Reality in Advertising and includes three characteristics: 

each advertisement must make a proposition to the consumer



the proposition must be one that the competition either cannot or does not offer



the proposition must be strong enough to pull over new customers to your brand

2. Brand image—some competing brands are so similar it is difficult to find or create a unique attribute or benefit so the creative strategy is based on the development of a strong, memorable identity for the brand through image advertising. 3. Inherent drama—Leo Burnett believed advertising should be based on consumer benefits with an emphasis on the dramatic element in expressing these benefits. 4. Positioning—the idea is that advertising is used to establish or “position” the product in a particular place in the consumer’s mind. Positioning is often the basis of a firm’s creative strategy when it has multiple brands competing in the same market. 5. Storytelling—an emerging creative approach in which advertisers develop longer video messages that provide extensive imagery and characterization that is wrapped up in a story Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-65

format. Internet media provided the opportunity for advertisers to present transformational motivations in more involving messages that consumers select to watch themselves, although some are shown on TV and in cinemas. These approaches to determining the creative theme are used as the basis of the creative strategy for advertising campaigns. These creative approaches represent specific “creative styles” that have become associated with successful advertising creative minds and their agencies. Instructors are encouraged to identify other creative approaches and styles. B.

Campaign Slogans—The campaign theme is usually expressed through a slogan or tagline which briefly summarizes the idea in a few “catchy” words. Guidance on the selection of the best type of slogan is connected to brand attitude, brand awareness, strategic direction, or aesthetics.

Creative Theme Consistency—it is recognized that successful creative themes tend to have consistency so that the target audience instantly understands that it is connected to a specific brand and when a particular execution is part of its respective campaign. The issue of consistency is summarized with examples in terms of time, executions, media, promotional programs, and products. Of course, there are also situations where companies struggle to find a creative formula that works effectively.

Canadian Creative Themes—the essence of a Canadian edition is captured in this chapter that illustrates the success of creative themes for brands marketed in Canada. Instructors can raise the issue as to whether students agree with the conclusions of the culture research and whether the results imply the need for unique Canadian creative themes. A description of the Canadian awards can be contrasted with international competitions, and winners shown.

IV.

MESSAGE APPEALS

The message appeal refers to the approach used in the ad to influence the target audience’s attitude toward the product, service, or cause. The approaches are rational appeals and emotional appeals. A.

Rational appeals—this type of appeal focuses on the consumer's practical, functional, or utilitarian need for the product or service and/or specific reason for owning a particular brand. Examples of a product- or service-related appeal that would fall under the category of a rational appeal are discussed including feature, comparative, price, news, popularity, and reminder.

Emotional appeals—this type of appeal relates to consumers' social and/or psychological needs for purchasing a product. Emotional appeals are popular as marketers observe via research that some purchase decisions are based on feelings and emotions since rational, functional-based differentiation between brands may be difficult.

Types of Emotional Appeals—examples of negative and positive emotions that serve as a basis for an emotional appeal are shown in Figure 7-4 and can be reviewed. The tables represent a typology of emotions based on decades of academic research and provide guidance for specific emotions to build into a campaign. Each represents several secondary, yet important, emotions.

Fear Appeals—are used to create anxiety and arouse individuals to act. Fear stresses negative consequences that may occur if behaviour is not altered such as ads that warn people not to Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-66

smoke or drink and drive. Fear is also used through the threat of social disapproval or rejection that an individual might suffer if they do not use a product. Fear operates as an inverted U effect on persuasion with both facilitating effects for low levels of fear (attract attention, accept fear message) and inhibiting effects for high levels of fear (receiver emotionally blocks message). E.

Humour Appeals—are used for attracting and holding consumers’ attention, putting them in a favorable mood, creating affect that may transfer to the product being advertised, and reducing counterarguing. Problems with a humourous appeal include the possibility of drawing attention to the ad but at the expense of message content. Effective humour is also difficult to create. Top advertising executives’ opinions of the pros and cons of humour are summarized in Figure 7-5.

Combined Rational and Emotional Appeal—some purchase decisions are made with both rational and emotional considerations. Thus rational and emotional appeals may be combined in the advertisement to attempt to influence both types of purchase motives. Sometimes, teaser advertising combines both rational and emotional appeals by talking about a brand but not actually showing it to build curiosity, interest, and/or excitement about a brand.

SOURCE CHARACTERISTICS

The term source refers to the person who communicates the promotional message in either a direct or indirect manner. A direct source is a spokesperson that delivers a promotional message, demonstrates a product, and/or endorses a product. Spokespeople used in advertisements is an example of a direct source. An indirect source does not actually deliver a message but rather is used to draw attention to or enhance the appearance of a promotional message. Decorative models are an example of an indirect source. Most of the theory and research associated with the study of source factors deal with the characteristics of individuals as communicators of a persuasive message and how they influence communication effectiveness and adopted here. The characteristics of the source usually have an impact on the effect of the advertising message. A useful framework for examining source characteristics is the classification scheme developed by Herbert Kelman. This scheme recognizes three categories of source attributes, each involving a different process by which the source influences attitudinal or behavioural change in the message recipient. A.

Source Credibility—refers to the extent to which the source is perceived as having knowledge, skill or experience relevant to the communication topic and can be trusted to give an unbiased opinion or present objective information on the issue. Information from a credible source can influence beliefs, opinions, attitudes, and/or behaviour through a process known as internalization where the receiver desires to have an objectively correct position on an issue. 1. Expertise—is an important dimension of credibility through spokespeople such as doctors or professionals who endorse a brand. Celebrities may be seen as experts in some instances (e.g., sport equipment). Authoritative spokespeople with certain demeanors may also be perceived as experts. 2. Trustworthiness—is another important dimension of credibility through spokespeople who demonstrate characteristics in which the message would be more believable. Using corporate leaders as spokespeople—companies believe the use of their president or CEO is the ultimate expression of the company’s commitment to quality and customer service. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-67

Source Attractiveness—refers to the extent to which the source is perceived as characteristics that are attractive to the receiver. Attractiveness includes similarity, familiarity, and likability as sub-components. The process through which attractiveness leads to persuasion is identification where the receiver seeks some type of relationship with the source by adopting a similar position. 1. Similarity—marketers recognize that people are more likely to be influenced by a message coming from someone with whom they feel a sense of similarity. A common cognitive response to ads with a similar person as the target audience is something along the lines of “I can see myself in that situation”. Ads with a similarity source characteristic often feature a person who looks like an “everyday” person. 2. Likability—marketers use source characteristics that enhance the brand in every imaginable way such as looks, personality or behaviour. A common technique used by advertisers to draw attention to an ad and enhance its effectiveness is the use of a physically attractive model. Often these models are used in a passive or “decorative” manner rather than as active communicators. A number of factors must be considered in using decorative models such as whether they are appropriate or relevant to the product or service being advertised and whether they will draw attention to the ad but not the product or advertising message. 3. Familiarity—advertisers understand the value of celebrities (e.g., entertainment stars, athletes, musicians) to endorse their products. Celebrities have “stopping power” due to their familiarity and draw attention to advertising messages. Another purpose is the expectation that the respect, popularity, and/or admiration the celebrity enjoys will influence consumers’ feelings and, of course, their purchase behaviour toward the brand the celebrity is endorsing. Familiarity also occurs with common people or everyday situations (e.g., work, family).

Celebrity Endorsers—Despite the prevalence of using a celebrity, a number of factors must be considered in using celebrities as a spokesperson such as: 1. Brand Communication—while a celebrity may draw attention to an ad, consumers may focus on the celebrity rather than the product or service and the advertising message. 2. Competing Brand Exposure—consumers recognize that celebrities endorse a product because they are paid to do so. Celebrity endorsements representing several products may become over exposed and lose credibility. 3. Target Audience’s Response—attention must be given to the target audience and whether the celebrity is appropriate for the consumers in this market. For example, younger consumers may be more impressed by celebrities than older people. 4. Advertiser Risk—a risk to the brand occurs if the celebrity’s behavior is inappropriate in some manner that is not agreeable to the target audience. 5. Meaning of Celebrity Endorsers—advertisers use celebrities who are connected to the product they are endorsing. An insightful perspective on celebrity endorsement is based on meaning transfer, which is shown in Figure 7-6. It suggests that a celebrity’s effectiveness as an endorser depends on the culturally acquired meaning brought to the Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-68

endorsement process. Celebrities draw these meanings based on their entertainment or athletic careers. The model suggests that celebrity endorsers bring their meanings into the advertisement and transfer them to the products they are endorsing. These meanings are then in turn transferred to the consumer when they purchase a product. The implications of the meaning transfer model should be discussed. Current examples of celebrities used by marketers who use them in their ads should be noted. VI.

IMC PLANNING: MESSAGE AND SOURCE COMBINATIONS

Examples are highlighted where advertisers use varying combinations of source and message appeals thus suggesting a planning template shown in Figure 7-7. The idea of the IMC planning section is to indicate the variety of choices promotional planners have within the basic creative strategy concepts. Teaching Suggestions Most students find the creative side the most interesting aspect of advertising and promotion, and they typically do not know what occurs during the development of an advertising campaign. They may think that the development of a campaign and individual messages involves only the agency creative department It is important to stress the fact that the development of a campaign involves numerous individuals from the agency as well as the client. Since the creative message is so critical to the goals of so many parties involved, and since the creative has a significant connection to positioning, this chapter has attempted to demonstrate this connection. Most students will not end up being directly involved in the design and creation of advertisements. However, creative strategy is critical to the success of the firm’s integrated marketing communications efforts. Thus, it is important that everyone involved with the marketing and promotional program have some understanding of the creative process that underlies the development of advertising messages, as well as the creative options available to the advertiser. Some interesting discussion can be generated over the issues of what constitutes creative advertising. Students might be asked to debate the different perspectives of advertising creativity. One side can take the “its only creative if it sells” position versus the “aesthetic, novelty/uniqueness” perspective. Some discussions can also be generated over the issue of creative risk taking and just how much latitude the client should give the agency when it comes to creating the advertising message. This chapter is devoted to the three primary decisions that constitute the creative strategy. It is important to make sure the basis definitions are communicated, but it is especially important to investigate actual ads for two purposes. First, students need help identifying the decisions that an advertiser has made in a print ad for example. Thus, basic comprehension questions can be asked with relevant examples. Second, instructors should explain or generate discussion on the reasons why the advertiser might have made their decision and how the ads in question would be appropriate for achieving communication effects and for reinforcing the brand positioning strategy. Lectures and discussions should use examples. Vignette 1. Why would hockey equipment consumers believe that CCM messages are creative? The description of the ad messages is very accurate but does not replace the actual experience, so instructors are encouraged to show the ads to generate responses for this opinion question. In some Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-69

ways, the ad is like other fast-paced messages with multiple scenes and energetic music. However, the juxtaposition of the split screen creates a visually interesting storyline of the message. Collectively, the three ads also represent multiple consumers and the producers to indicate a partnership of sorts between the athlete and the company who assists in their development and fun. In these respects, students could build a point on the creativity’s uniqueness. Instructors could raise the question as to whether the ads build the CCM brand for all of its product lines. Alternatively, instructors could show ads of other equipment manufacturers or athletic wear brands for comparison. Students might see a similarity between CCM and Nike from an inspirational standpoint. IMC Perspective 7-1 1. How do SickKids’ messages achieve both ad divergence and ad relevance? The ads are quite captivating and unexpected for a hospital foundation that does fund raising, so instructors could show the ads. For ad divergence, it is possible to think about one characteristic that encompasses all the ads or consider that each campaign has a unique divergence point. Most people would likely conclude that the best descriptor for ad divergence is originality. The imagery and the use of children in the messages is unexpected and it gives a receiver a very positive view of the children and their bravery and other positive traits. For ad relevance, this captivating approach would certainly surprise non-donors and give them a significant message to consider switching their donation to SickKids or possibly expanding their donation list. Undoubtedly, both ad characteristics would contribute to the brand being in non-donor’s evoked set, a key objective of ad creativity. IMC Perspective 7-2 1. Why is IGA’s use of mixed message appeals and animation a winning combination? A combined rational and emotional appeal seems to work well for IGA since there is an emotional component to food shopping with meal preparation and tastes, and there is a rational component with prices and selection. The combined appeals work well with animation since IGA follow a storytelling theme in many of the executions. Moreover, the storytelling is carried over year-to-year to show how aspects of life are timeless no matter the generation or background of the consumer. In short, the combined appeal provides significant strategic flexibility to communicate IGA’s brand positioning strategy. Answers to Review Questions 1

Television commercials can use unusual creativity that has very little relevance to the product being advertised. Explain why creative specialists would recommend such ads and why the brand managers would approve the production and placement. Creative personnel face a major challenge as they must develop ads that will break through the media clutter and grab the attention of the viewer, listener or reader. This can be particularly difficult in the broadcast media and online as consumers watching TV, listening to radio or browsing the Internet are often trying to avoid ads rather than pay attention to them. While consumers may be more receptive to advertising in magazines or newspapers, the vast numbers of ads that appear in most publications makes it very challenging for any one ad to get noticed. Thus, creative personnel argue that they must use novel tactics such as startling images, sexual or suggestive appeals or very Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-70

irreverent ads that can break through the clutter and get noticed by the consumer. It often appears that the goal of these ads is to entertain the viewer or listener rather than to deliver a strong message to them. These types of ads often do not contain a message that is relevant to the product but do get noticed and register a brand name or attribute association. Creative personnel will also argue the main goal of advertising is to create and maintain top-of-mind awareness and novel or unusual ads are an effective way of doing this. Those who are from the “it is not creative unless it sells” school of advertising argue that the goal of advertising should be to deliver relevant information that helps sell the brand. They do not accept the breaking through the clutter, capturing attention or creating controversy argument as viable excuses for developing ads that do not deliver a relevant message or communicate a selling point. They expect advertising to do more than maintain brand awareness and feel that creative personnel should be challenged to do more than develop irreverent or unusual messages. 2. Describe the types of general and product-specific pre-planning input one might evaluate when assigned to work on an advertising campaign for a new brand of bottled water. General pre-planning input includes overall information on trends, developments and conditions in the marketplace that would be relevant to the marketing of the product. In the case of a new brand of bottled water, the advertiser would want to know about a number of trends and developments affecting the beverage market such as the increasing popularity of new age drinks. Information on the changing lifestyles of consumers and how this might affect their beverage consumption would also be relevant as would product specific information on the bottled water segment of the beverage market. Product-specific preplanning input includes information that is directly relevant to the product or service. Usage and attitude studies regarding bottled water users and nonusers in particular, could be performed as well as psychographic studies. Problem detection studies could be performed to determine what changes or improvements consumers would like to see in bottled water (e.g., taste, flavors, nutritional supplements). The outcome of a problem detection study may provide input for product improvements, reformulations, or new brands. It would also be important to have information on the type of advertising being used by competitors. 3. What is your opinion of advertising awards, such as the Cannes Lions, that are based solely on creativity? If you were a marketer looking for an agency, would you take these creative awards into consideration in your agency evaluation process? Why or why not? There are numerous arguments that can be made both for and against advertising awards that are based primarily on creativity. In defense of awards based on creativity, it should be noted that a major challenge given to the artists, copywriters, and creative directors is basically to be creative. They are given the charge of turning advertising and communication objectives, product/services attributes and benefits, and selling premises into a creative concept that will bring the message to life and capture the attention of consumers. Another argument in favour of the value of creative based awards is that they function as “report cards” from the other creatives who judge them and help the advertising industry set high standards for itself. It has also been argued that creative awards are very motivating to creative people, who often are driven by more than financial compensation, and are a catalyst for creative excellence.

There are also problems with creative awards such as the classic argument that an award-winning ad is of little value unless it results in sales of the product. Critics of awards have also noted that agency personnel have become too obsessed with winning creative awards and too much time, energy and money are devoted to entering advertising award competitions. There is also concern that the creative personnel may be more concerned with the award-winning potential of an ad than its ability to sell the client’s product. It is reasonable for agencies as well as individuals to pride themselves on their creative awards. First, awards recognize that the creative specialists are doing their job very well. Moreover, creative awards can be very important to an agency (and individuals) in terms of recognition, visibility and ultimately more business and income. 4.

Assume that a government agency wants to use a fear appeal message to encourage college and university students not to drink and drive. Explain how fear appeals might affect persuasion and what factors should be taken into consideration in developing the ads. Fear can affect persuasion in both a positive and negative manner. An anti-drinking and driving message with a low level of fear can have facilitating effects if it attracts the attention and interest of students and motivates them to consider how they might try to resolve the threat. This suggests that a mild fear appeal may be effective in changing attitudes and behaviour of college students as it may get them to think about the negative consequences involved and think about how they might avoid them. Fear appeals can also have a negative or inhibiting effect and a message that uses too much fear may cause students to tune it out, perceive it selectively, counter-argue against it or discount the likelihood of the negative consequences happening to them. One potential problem with antidrinking and driving messages targeted at students is that young people tend to perceive themselves as invulnerable and thus they may discount any negative outcomes shown in the message as unlikely to occur to them. A number of factors should be taken into consideration in developing a fear appeal message for this audience. As noted above, students are a market segment that may require special consideration when using a fear appeal message. This audience may be likely to discount fear appeal messages that are too strong or seen as too unrealistic. The credibility of the source used in the message may be very important and consideration might be given to using a source with whom this group identifies and might not easily derogate. Research on fear appeals has shown that they are more effective among non-users of a product than users. Thus it may be more effective to target fear appeals at those students who are not heavy drinkers and encourage them to take responsibility for those students who do drink and drive. The designated driver program and responsible drinking campaigns of liquor and beer companies often do this.

What are source characteristics? What types are there? How do they affect the processing of a message and the communication effects of the message? Source characteristics are source credibility comprised of source expertise and source trustworthiness, and source attractiveness comprised of source similarity, source likability, and source familiarity. Each of these five characteristics can influence the processing in varying ways via low or high involvement or their emotional content (e.g., processing) or communication effects (e.g., awareness). For example, a high-profile celebrity endorser will likely attract attention and facilitate emotional associations to the brand via the spokesperson. Similarly, the celebrity may allow Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-72

stronger recall from the brand connection made in the ad with the fame of the person. This illustration shows the kind of logic a student should use when making creative strategy decisions. The decision must be justified in terms of how it would link to the effects of the communication. 6.

How is it possible that an IMC program could have multiple sources for the message using both rational and emotional appeals? An IMC program will be using multiple media and multiple IMC programs to influence rationally and emotionally. Since the points raised in question five are realistic, the IMC program may use different sources across the media and programs resulting in differing effects. For example, telecommunication brands often will use a more rational appeal on radio and have an entirely different source than those used in the TV ads where the message may be a combined rational and emotional appeal. Alternatively, aspects of digital messaging may be solely emotional leading to an entirely unique source. These points can carry over to IMC programs where the brand may use different sources for public relations activities. For example, Clara Hughes is the focus of Bell’s Let’s Talk campaign in support of mental health, however she is not a spokesperson for Bell’s regular advertising.

Answers to Applied Questions 1. Find an example of a print ad that you think is creative and you feel is dull and boring. Select each element of the ad and figure out how it is contributing to the creativity or the lack of creativity. Students should be asked to find examples of print ads that they find particularly creative as well as dull and explain why they judge them so. Their analysis should focus on specific aspects of these ads that make them exciting or interesting versus dull and boring. It is likely that they will find more creative and exciting ads in publications that are targeted at their age group such as Rolling Stone or fashion magazines. Less exciting ads may be found in general interest publications such as Reader’s Digest, and Time and or business publications. 2. The chapter outlined a few campaigns; look on the Internet to research and figure out the most successful Canadian campaign in recent years. Students should likely find CASSIES in their investigations since this is referenced in the section for LO2. They may also find creative awards presented by each media or by the trade publications. The idea of the question is for students to seek out Canadian examples of very good advertising to understand that very good creative is originating from Canada. An additional point to raise is that students should be in tune with the fact that they are seeing Canadian, American and International campaigns on a daily basis and that understanding the source will give a new found appreciation of the styles and messages. 3. Find an example of an ad or campaign that you think reflects one of the approaches used to develop a creative theme such as unique selling proposition, brand image, inherent drama, or positioning. Discuss how the creative theme is used in this ad or campaign. There are four approaches discussed in the text for developing creative theme/ideas that can serve as the basis of the creative strategy. These include the unique selling proposition, creation of a brand image, the use of inherent drama and positioning. Students should bring in examples of ads that they feel are examples of each approach to developing a creative theme and describe the logic of Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-73

their selection. Instructors should challenge students on why the selection is effective and also investigate whether an alternative approach might have worked as well or better. 4. Describe how a few of the negative emotions conveyed in Figure 7-3 could be used in a campaign for car insurance. Describe how a few of the positive emotions conveyed in Figure 7-3 could be used in a campaign for smartphones. Anger can be shown in a scenario where the policyholder does not have the proper coverage during a claim and is therefore dissatisfied and the ad can show the frustrated consumer moving to a new brand of insurer. An unexpected negative emotion could be envy where a policyholder sees a friend or relative get certain coverage not part of his or her policy. Contentment is often shown in smartphone ads where consumers enjoy and savor the features of the new version. 5. Find a celebrity who is currently appearing in ads for a particular company or brand and use McCracken’s meaning transfer model (shown in Figure 7-7) to analyze the use of the celebrity as a spokesperson. The meaning transfer model provides a very interesting perspective on celebrity endorsements. According to this model, a celebrity’s effectiveness as an endorser depends on the culturally acquired meaning they bring to the endorsement process. Celebrities acquire these meanings from the roles they assume in their careers as entertainers, athletes, politicians and other areas. They then bring these meanings into the advertisements in which they appear and transfer them to the product or service they are endorsing. Students should be asked to find a celebrity who is currently endorsing a product, service or company and analyze his or her endorsement effectiveness in terms of McCracken’s model. They should discuss how the celebrity acquired his or her meaning and whether it transfers well to the company or brand they are endorsing. 6. Actors portraying doctors in ads are often used for rational appeals. In what situation might it make sense to have a doctor for an emotional appeal? What type of emotional appeal would be most logical from Figure 7-3. The purpose of this question is for students to apply the ideas of Figure 7-7. It would be generally unexpected to use a doctor for emotional appeals and that is the idea of Figure 7-7, to allow promotional planners to think beyond traditional means when putting together a creative strategy. In all likelihood, it will be challenging for students to arrive at a scenario where a doctor spokesperson may work for some of the emotions, but the exercise does prove to be a challenge to figure out. Additional Discussion Questions (not in text) A. Discuss the pros and cons of using a comparative advertising appeal. There are several advantages to using a comparative advertising message. A comparative ad may be a way of gaining attention, particularly when a new or lesser-known brand compares itself to a wellknown brand or market leader. Comparative ads also allow a company to directly communicate the features, attributes, benefits, and advantages of its product or service relative to those of its competitor(s). For a new brand, comparative advertising provides a way of positioning the product in the evoked set of brands the consumer might consider. Potential problems with comparative advertising are that consumers may see these ads as less believable and more offensive than nonChapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-74

comparative messages. Users of the attacked brand may be particularly skeptical about the credibility of comparative claims. There is also the possibility that the use of a comparative message may focus more attention on the competitor’s brand and benefit them more than the sponsoring brand. B.

What are the differences between creative strategy and creative tactics? Why is it important to make a distinction between these two concepts? An advertising campaign is the result of a process of determining the creative strategy and creative tactics. The creative strategy indicates what message the campaign communicates. Creative tactics indicate how the campaign communicates the message. A distinction between the two is important because the creative strategy is established before the creative tactics are developed. Another reason is that different agency personnel are typically responsible for strategy decisions (i.e., creative director) and others are responsible for tactics (i.e., copy writer). Finally, the distinction is consistent with a basic management principle of identifying strategy and tactics.

What is meant by a unique selling proposition (USP)? Find an example of an ad your feel uses a unique selling proposition as its major selling idea. Evaluate this ad against the three characteristics of USP’s discussed in this chapter. The concept of the unique selling proposition (USP) was developed by the famous advertising copywriter Rosser Reeves. The concept of a USP is that it offers the consumer a specific feature or benefit that is important to them and unique to this particular brand. The three characteristics of a USP are that each ad must make a proposition to the consumer that tells them the benefit they will get by buying the brand; the proposition must be one that the competition either cannot or does not offer; and the proposition must have motivating power and thus be able to convince consumers to buy the brand. Students should be encouraged to find an example of an advertisement that they feel uses a USP as its major selling proposition. The ad should be evaluated against the three characteristics of USPs discussed here and in the chapter.

D. What are the stages of the creative process? Do you agree with the notion that advertising creativity can or should follow a definitive process? The stages of the creative process of advertising include: preparation  incubation  illumination  verification/revision. The notion that there is some definitive process to advertising creativity is logical although it should not be expected that every creative specialist will follow this procedure in developing an advertisement. Models of stages of the creative process are valuable as they offer an organized way of approaching an advertising problem. Virtually all creative specialists will want to prepare themselves by gathering background information that is relevant to the advertising problem or by examining research or engaging in fact finding that will help them generate creative ideas or solutions. It is also important to subject creative ideas to verification so as to reject any inappropriate ones and refine and polish those that remain in order to give them optimal final expression. E.

Marketers choose message sources with high credibility. Discuss some reasons why it may be unnecessary or even detrimental to use a source that is high in credibility. There are some situations where high source credibility may not be necessary and may even be a liability. A high credibility source is likely to be most effective when message recipients are opposed Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-75

to the position advocated in the message as the credible communicator will inhibit counterarguing and source derogation. However, a high-credibility source may not be needed when the audience has a neutral position and may even be less effective than a moderately credible source when the receiver’s initial attitude is favourable. The reason for this is that when a low credibility source is used the message recipients are encouraged to review personal thoughts that are supportive of their favourable position rather than attributing their feelings to the highly credible communicator. Studies have also shown that high and low-credibility sources are equally effective when they are arguing for a position opposing their own best interest. Another reason a low-credibility source may be as effective as a high-credibility source is because of the sleeper-effect phenomenon. While the immediate impact of a persuasive message may be inhibited because of its association with a low-credibility source, the association of the message with the source diminishes over time and the receiver’s attention focuses on the information in the message. Thus, the positive effects of using a high-credibility source will diminish over time as will the initial negative impact of using a low-credibility source. IMC Exercise Find an example of advertising campaigns that use one of the following source or message factors: celebrity spokesperson, corporate leader such as the president, founder or CEO as an advertising spokesperson, fear appeal message, or humourous appeal message. Analyze the advertisers’ use of this source or message factor. Why do you think they chose to use this source or type of message? Are the spokespersons and/or messages appropriate or inappropriate for this brand? How might the use of this source or message impact how consumers in the target audience respond to the advertising campaign? IMC Comprehensive Project Students should be prepared to begin focusing attention on the advertising component of their IMC plan. They should be able to use the information in this chapter to begin developing the creative approach and campaign theme for their plan. The specific assignment is as follows: IMC Project Assignment for Chapter 7 You should be ready to begin developing the advertising component of the IMC plan for your product or service. Develop a copy platform that contains the basic creative strategy for your advertising campaign. You can use the copy platform outline shown in Figure 7-3 as a guideline. What is the advertising campaign theme you have chosen for your product or service? Are you using any of the approaches discussed in the chapter such as unique selling proposition, brand image, inherent drama or positioning as the basis for your major selling idea? Identify the message appeal that would most suitable and provide justification based on conclusions from your situation analysis. Determine if you will use any key source characteristics to influence the target audience you have previously selected.

CHAPTER 8: CREATIVE TACTICS DECISIONS INSTRUCTOR’S MANUAL Chapter Overview This chapter summarizes three decisions pertaining to creative tactics: execution style, message structure and design elements. The chapter then presents a framework for creative specialists and marketers to help them make the appropriate decisions for the creative tactics to achieve brand awareness and brand attitude communication effects. The framework uses the target audience’s current brand attitude as the starting point for deciding the correct execution style, message structure and design. Learning Objectives 1. Analyze the creative execution styles that advertisers use and the situations where they are most appropriate. 2. Explain different types of message structures used to develop a promotional message. 3. Express design elements involved in the creation of print advertising, video, and audio messages. 4. Apply a planning model for making creative tactics decisions. 5. Illustrate how clients evaluate the creative work of their agencies. Chapter and Lecture Outline I.

EXECUTION STYLE

Creative execution style refers to the way an advertising appeal is presented. An advertising appeal is executed in many ways and an execution style is applied to a variety of advertising message appeals. Styles are combined in an advertising message. For example, slice-of-life ads are used to demonstrate a product or make brand comparisons. Commonly used execution techniques include: A.

Straight-sell—relies on a straightforward presentation of information about the product such as specific attributes or benefits.

Scientific/technical evidence—a variation of the straight sell where scientific or technical evidence or information is presented in the ad to support a claim.

Demonstration—is designed to illustrate the key advantages or benefits of a product or service by showing it in actual use or in some contrived or staged situation.

Comparison—involves a direct or indirect comparison of a brand against the competition.

Slice of life—shows a real-life situation involving a situation consumers face in their daily lives. The ad focuses on showing how the advertiser's product resolves the issue of the situation.

Animation—uses characters or scenes drawn by artists or on computer. Animation is associated with advertising targeted at children, but also works for brands targeting adults.

Personality symbol—involves the use of a central character or personality symbol to deliver the advertising message and with which the brand can be identified. The personality symbol is a spokesperson, animated characters or animals.

Imagery—shows an imaginary situation/illusion involving a consumer and brand. For example, cosmetic companies frequently rely on imagery executions, as do other product categories.

Dramatization—creates a suspenseful situation in the form of a short story. Dramatization can use the problem/solution approach to show how the advertised brand resolves a problem.

Humour—is an advertising appeal, however, it is used for executing the message and presenting other advertising appeals.

II.

MESSAGE STRUCTURE

The structure in which marketing communication message points are presented is very important for the receiver to understand its meaning and to retain the message in memory. Four message structure considerations are discussed. A.

Order of presentation—should important message points or arguments be placed at the beginning of the message, in the middle or at the end? A primacy effect suggests that the information placed at the beginning of the message is most effective while a recency effect suggests that the arguments at the end are most effective.

Conclusion drawing—should a message draw an explicit conclusion for the audience or allow them to form their own conclusions? Research has shown that, in general, messages with explicit conclusions are more easily understood and effective. However, some studies show that the effectiveness of conclusion drawing may depend on the target audience, the type of issue and nature of the situation.

Message sidedness—should a marketing communication use a one-sided message whereby only positive attributes or benefits of a product or service are mentioned or a two-sided message where both strong and weak points or attributes are presented.

Verbal/Visual Balance—both the verbal and nonverbal or visual portions of an advertisement influence the way an advertising message is processed. Verbal or copy aspects of the message are important in conveying rational or factual messages while nonverbal or visual elements of an ad are important for developing emotional and image-based associations.

III.

DESIGN ELEMENTS FOR IMC TOOLS

Once the creative strategy and initial creative tactics decisions are determined, attention turns to creating the actual advertisement. The design and production of an advertising message involves a Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-78

number of activities such as writing copy, developing illustrations and other visual elements of the ad and bringing all of the pieces together in a finished product. A.

Design for Print Message—three aspects of a print ad include the headline/subhead, body copy, and the visual elements or illustrations. These elements are brought together through a layout. 1. Headline—the headline refers to the words in the leading position of the advertisement— those that are likely to be read first or are positioned to draw the most attention. The most important function of a headline is to attract the readers’ attention, act as a segmentation function to attract the most interested to process the remainder of the ad message. 2. Types of Headlines Direct headlines—straightforward/informative in terms of the message presented. Indirect headlines—provoke curiosity/intrigue with questions/challenges/provocations. Subheads—smaller type vs. headline to section off the body copy/key sales points. 3. Body copy—the main text portion of a print ad is referred to as the body copy. Body copy content depends on the type of advertising appeal and/or execution style being used. 4. Visual—another major component of a print ad is the visual elements or illustrations. Visual components often dominate print advertising and play a very important role in determining effectiveness. 5. Layout—a layout refers to the physical arrangement of the parts of the ad including the headline, subheads, illustrations, body copy and any identifying marks.

Design for Video Message—video messages have several components which must work together to create the right impact and communicate the advertiser's message. 1. Visual—video or visual elements are what are seen on the screen. Decisions have to be made regarding the main focus of the visual such as the product, the presenter, action sequences, lighting graphics, color and other factors. 2. Verbal—the verbal portion includes what voices are heard through the direct presentation of a spokesperson or as a dialogue or conversation among people. A method for presenting the audio portion is through a voice-over where the message is delivered or action on the screen is narrated by the voice of an announcer who is not visible. 3. Sound—an important part is music which provides a pleasant background or helps create the appropriate mood/tone. Another musical element is a jingle, which are catchy songs about a brand that usually carry the advertising theme and a simple message. Various sound effects fall under this category of decisions as well. 4. Production of Video Messages—elements are brought together in a script which is a written version of a video message that provides a detailed description of its video and audio content. The script indicates the audio components such as the spoken copy, music, and sound effects. The video portion of the script provides the visual plan. After conceiving the script, the writer and art director produce a storyboard (series of drawings) to present Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-79

the visual plan of a message. Upon client approval of the storyboard, the message is ready for production. C.

Design for Audio Message—audio messages have components which must work together to create the right impact and communicate the advertiser's message. Audio messages are traditionally heard with radio, but technological advancements are making them more prevalent in other domains like podcasts etc. 1. Verbal—the message is organized and structured much like the body copy in a print ad or the dialogue in a video message, however a few styles are used to fit the verbal only format of audio ads. 2. Sound—the sound portion includes several elements such as voice, music, and sound effects, with the latter two becoming very critical for branding purposes.

IV.

PLANNING MODEL FOR CREATIVE TACTICS

The R&P perspective discussed in previous chapters also includes recommendations for creative tactics for two main communication objectives. A.

Tactics for Brand Awareness—Creative tactics are recommended for general awareness, brand recognition, and brand recall. Instructors can review ads to illustrate each of the tactics applied.

Tactics for Brand Attitude—Creative tactics are recommended for all four approaches for influencing brand attitude as shown on the grid embedded within the section. 1. Brand Attitude Grid—the grid indicates attitude persuasion is a function of motivation and involvement, consistent with earlier points identified in previous chapters. 2. Brand Attitude Grid Tactics—using the dimensions of involvement and motivation, the creative tactics recommendations for the four brand attitude cells are outlined. 3. Low Involvement—Informational Creative Tactics—ads should have an obvious benefit claim with an unusual execution style. 4. Low Involvement—Transformational Creative guidelines are critical for this type of attitude.

Tactics—three

emotional

portrayal

5. High Involvement—Informational Creative Tactics—illustrates the importance of information as high involvement implies a requirement of accurate benefit claims. 6. High Involvement—Transformational Creative Tactics—persuasion through this type of attitude formation requires strong emphasis of the emotion. V.

IMC PLANNING: GUIDELINES FOR CREATIVE EVALUATION

While the creative specialists determine the advertising appeal and execution style of the campaign, the client must evaluate and approve the creative approach before any ads are actually produced. A number of different people on the client side may be involved in evaluating and approving the creative work of Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-80

the agency. The amount and influence of these individuals depend on the company's organization and policies, the importance of the product to the company, the role of advertising in the marketing program, and the nature of the advertising approach being recommended. There are two stages in the development of advertising—creation and production. After determining and approving the creative approach, the production process begins which involves a variety of functions needed to produce the ad into a finished form for media placement. The client can review and test the final version of the ad after the production stage. There are guidelines that personnel on the client side might use to evaluate the creative approaches suggested by the agency. Important criteria or guidelines used in evaluating the creative approaches include the following: 

Is the creative approach consistent with the brand's marketing and advertising objectives?



Is the creative approach consistent with the communication objectives?



Is the creative approach appropriate for the target audience?



Does the creative approach communicate a clear and convincing message to the customer?



Does the creative approach keep from overwhelming the message?



Is the creative approach appropriate for the media environment in which it is likely to be seen?



Is the ad truthful and tasteful?

Teaching Suggestions Nearly every student has an opinion about the quality and effectiveness of ads. Students should enjoy reading this chapter and learning about the execution styles that can be used by advertisers. An interesting way of beginning the lecture on creative tactics is to ask the students to identify a message they would rate as the "most outstanding" one seen lately. You might then ask them how they think their list of top ads would compare against that of ad critics. This chapter does not go into detail about the process of creating and producing the advertisement. If more detail is desired in areas such as art and layout, copywriting or print and broadcast production students might be referred to a more traditional advertising principles book such as Contemporary Advertising by William F. Arens. Vignette 1. What new creative steps can No Frills take with the Haulerverse? Instructors could show other aspects of the Haulers campaign to spark greater interest and inspire students to think creatively. It could also be a means of outlining the creative strategy of the campaign and the types of execution styles used in the example. A good in-class activity could occur where small groups present new ideas for the creative tactics. Such an activity would presumably be fun for the students and help them further understand the creative process by briefly living it. IMC Perspective 8-1 1. What cognitive and emotional responses from viewers would Kruger expect from this ad? Instructor should show the ad so message is understood. The intention of this perspective is to relate the creative tactics to the processing of an ad message described in Chapter 4. The multiple Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-81

images and music allow instructors to point out all creative tactics decisions and illustrate how they are designed to attract attention and facilitate cognitive and emotional responses. The question puts onus on the students to identify the intended responses expected by the brand and its agency. Instructors can show how the images and the story line maintain attention during a lengthy video. IMC Perspective 8-2 1. What would you propose for an upcoming moving day campaign? Instructors could show past campaigns for moving day to build on this example. Like the vignette above, this is a good story as a basis for an in-class activity where students would brainstorm new ideas and deliver a pitch where the instructor could award prizes! Answers to Review Questions 1. Identify the difference between a message appeal and a creative execution style. Why is it important to make this distinction? An advertising appeal refers to the approach used in the advertisement to elicit a consumer response or influence feelings toward the product, service, or cause. The creative execution style refers to the way in which a particular appeal is turned into an advertising message and presented to the consumer. A particular appeal is executed in a variety of ways and a particular means of execution are applied to a variety of advertising appeals. For example, a rational appeal that focuses on a product's features or advantages can be executed through a straight-sell, a demonstration or a comparison. A particular execution technique such as animation could be used for a rational appeal or for an emotional appeal. Students should be encouraged to analyze the appeals and execution styles used in selected ads. 2. What is meant by a one-sided versus two-sided message? Discuss some of the reasons marketers may or may not want to use a two-sided message. A one-sided message mentions only positive attributes or benefits associated with a product or a particular issue whereas a two-sided message presents both favourable and unfavourable information or arguments. The advantage of using a two-sided versus one-sided advertising message is that it may enhance perceptions of an advertiser’s credibility. Consumers often know that there are opposing arguments or viewpoints on an issue and an advertiser may be perceived as less biased and more objective if a two-sided message is used. One-sided messages are most often used since a company may only want to mention positive attributes, benefits or features or present only favorable arguments about its product or service. Marketers feel it is too risky to say anything negative about their own company or brands. One-sided messages are most effective when the target audience already holds a favorable position toward the topic and will not hear opposing arguments. They may also work better with less educated audiences. For those individuals with an opposing viewpoint or a better-educated audience, a two-sided message may be seen as less biased and more credible and thus more effective. 3. Are headlines more important for gaining attention or reinforcing awareness? The most important function of the headline is to attract the readers' attention and make them interested in the remainder of the message. Research has shown that the headline is generally the Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-82

first thing people look at in a print ad, followed by the illustration. Headlines also perform a segmentation function by engaging the attention of consumers who may be most likely to buy a particular product. Some ads use little or no body copy so the headline works with the visual portion of the ad to communicate the entire advertising message. Subheads are secondary headlines that are usually smaller than the main headline but larger than the body copy. Subheads are often used to enhance the readability of the message by breaking up large amounts of body copy and highlighting key sales points. Their content often reinforces the headline and advertising slogan or theme. 4. What are the similarities and differences of creative tactics across the four cells of the planning model? The similarities of the creative tactics across the four cells of the R&P framework concern three factors. The first is that all four routes to persuasion have a common structure regarding the emotional portrayal of the motive and the benefit of the brand message. Secondly, within the low involvement quadrants, a couple of the recommendations are quite similar (i.e. number of benefit claims, extra benefit claims). This is also true for the two high involvement cells with respect to the intensity of the benefit claim and the emotional authenticity. Within the informational quadrants, it is not necessary for consumers to like the ad for it to be effective and that unusual creative executions are feasible. Finally, the importance of emotional authenticity as being important within the transformational quadrants. Once the similarities are noted, some of the differences become apparent. While a given cell shares some similarities with another, each has its own specific recommendations for persuading the brand attitude of the target audience. For example, moving from LI/IN to LI/TR the emotional portrayal of the motive becomes more critical. Moving from LI/IN to HI/IN greater amounts of information are required to persuade the target audience. The best way to illustrate these similarities and differences is to have four ads that each represent one of the four cells. 5. Explain how the guidelines for creative evaluation can be applied to ads seen on the Internet. Many internet ads are part of an overall campaign where messages also appear in broadcast, print or out-of-home media. Therefore, all the guidelines identified are applicable for any message in any media. Instructors could let a discussion ensure for a while but eventually students realize creativity exists is reasonably universal irrespective of the media. Answers to Applied Questions 1. Look through ads in other chapters and figure out what execution style is used. Do the same for video ads found online. There are many ads in the earlier chapters that draw on alternative points so this question allows students to take a peek at them once again with a new perspective. Hopefully this provides a good integrative exercise to see how all the decisions operate. Once the execution style is identified, then the student can see the link between the style and the objective for example while examining ads from Chapter 5, or the link of the style and creative strategy decisions while examining ads from Chapter 7, or the link of the style and the positioning decision while examining ads from Chapter 6. Extending this logic, students can look at ads online and perform the same task. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-83

2. What are the limitations of constructing standard print-format ads for Facebook and billboards? These two ads are put together to show similarities of processing despite the divergent locations. In both cases, the receiver is concentrating on another task and may not divert their attention; the message is very short limiting the processing time; the degree of creativity is restricted with the production characteristics such that the cognitive and emotional associations will be minimized. Subsequent communication effects are therefore restricted in essential processing does not occur. 3. Brands are experimenting with long-form video messages online. Using the design elements discussed in the chapter, contrast this approach with a standard 30-second TV ad. When would a brand use both with in its IMC plan? Brands are using long-form video ads online when they want to re-launch their brand positioning strategy or when they want to creative a distinctive image for those who are seeking unique video messages online since they require a degree of effort to locate compared to seeing an ad on TV. Long-form video messages provide greater opportunity for a story to be told thus putting the brand in a more involving context. These kinds of messages are attracting known directors and producers of TV and movies thus creating a newer form of PR compared to the hype surrounding TV campaigns. Brands have the opportunity to run a shorter version of the long-form in cinemas or on TV so that the message is consistent in the public, however, in the end the brand will likely use both formats if they see there is the opportunity to resonate with unique target audiences. 4. Find an ad for each of the four cells of the R&P framework for creative tactics. Identify the design elements that match the guidelines for each cell. This is a fun application exercise where students can compare the list of characteristics found in the latter part of the chapter to the ad that they have selected. It could be a very fun activity in class where students can make mini-presentations. Alternatively, the exercise could be adjusted and instructors could focus on any of the ads in this or any of the other chapters. 5. Apply the guidelines for creative evaluation to a campaign for Telus or Bell or Rogers, and conclude whether it passes all the criteria sufficiently. Similar to question 4, students can have practice arguing how and why the ads are effective based on structured criteria rather than saying trite commentary on whether they liked the ad or not. An important challenge for students when applying the material is to consider the point of view of the target audience rather than their own. Of course, students are consumers of the products of these brands, but instructors should bring in the idea of whether the messages are directed to customers or non-customers, and students can then adjust their thoughts accordingly. Additional Discussion Questions (not shown in text) A. Discuss the use of slice-of-life execution techniques in advertising. For what types of products might this execution technique work best? The slice-of-life format relies on a problem-solution approach that is often presented with a little drama. These spots usually begin by showing consumers facing or talking about a problem. The short drama ends with the problem being resolved by the advertiser’s product. Advertisers feel that the slice-of-life format is a more interesting and effective way to present their message than just Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-84

making performance or efficacy claims. Consumers purchase some products to solve problems and marketers feel the slice-of-life execution format is an effective way of registering a product feature or benefits. The slice-of-life execution format is very popular among packaged-goods companies such as Procter & Gamble because it is an effective way of connecting with consumers by showing common situations or problems they encounter in their everyday lives. B. Explain how a humour execution style differs from a humour message appeal. A humour execution style is typically used to attract the target audience’s attention for a rational message or adds a demonstration of the more rational message to enhance some emotional responses thus allowing the processing to not be completely cognitive. In contrast a humour message appeal presents the attributes or benefits or emotional consequences of consumption consistently through all design elements and reinforces the positioning of the brand. C. Discuss the role music plays in advertising. Why might companies such as Microsoft, Cadillac, and Nike pay large sums of money for the rights to use popular songs in their commercials? Music has a variety of functions in ads. Music provides a pleasant background or creates a mood. In some ads, music is more central to the delivery of the advertising message. It breaks through clutter, establishes an image or position, or adds emotion. Music works via classical conditioning where it creates positive feelings that become associated with the advertised product. Music creates a positive mood state that makes the consumer more receptive toward the advertising message. Companies pay large sums of money for the rights to use these songs such as because they feel the music is central to the feeling or image they want to create in the commercial. IMC Exercise The last section of the chapter discusses criteria or guidelines used for evaluating the ads resulting from the creative process. Answers to these questions are judgmental in nature and are evaluated such as appropriateness for the target audience, communication of a clear and convincing message, whether the creative overwhelms the message, appropriateness for the media environment, and whether the ads are truthful and tasteful. Choose a particular campaign, conduct some research on it in the business press or trade publications, and then evaluate the creative approach as well as some of the individual ads against these guidelines. IMC Comprehensive Project Students should continue to develop the advertising part of their IMC project using the information in this chapter to help them. The specific assignment is as follows: IMC Project Assignment for Chapter 8 In the previous assignment you were asked to develop a copy platform that specified your campaign’s theme, appeal and source. Your assignment for this chapter is to specify the execution style of your ad campaign. What specific type of advertising execution technique will be used to present your appeal? Address any relevant issues of the message structure. What specific tactical design elements will be important in developing your print and broadcast messages? Will your creative approach satisfy the guidelines discussed at the end of Chapter 8? Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-85

CHAPTER 9: MEASURING EFFECTIVENESS FOR IMC INSTRUCTOR’S MANUAL Chapter Overview This chapter discusses a critical issue; while it seems logical that managers on both the agency and client side would like to know whether the programs implemented are effective, most IMC programs go untested. The chapter identifies questions such as why, when where and how organizations measure the effectiveness of their programs. It also describes the types of data effectiveness measuring usually collects, pre-test measuring, and post-test measuring. The chapter concludes with the problems involved in measuring the effectiveness of IMC programs and establishes the essentials for proper testing. Learning Objectives 1. Identify the decisions for measuring promotional program effectiveness. 2. Describe what is measured to assess promotional program effectiveness. 3. Summarize pre-test approaches for measuring promotional program effectiveness. 4. Summarize posttest approaches for measuring promotional program effectiveness. 5. Appraise the requirements of proper effectiveness research. Chapter and Lecture Outline I.

DECISIONS FOR MEASURING EFFECTIVENESS

When an organization decides to measure its advertising effectiveness, a few questions arise as to how to conduct the research. A.

Why Measure Effectiveness 1. avoiding costly mistakes 2. evaluating alternative strategies 3. increasing advertising efficiency 4. determining if objectives are achieved.

What to Measure 1. Creative Strategy decisions—all aspects of the creative strategy can be investigated to assess communication effectiveness. Advertisers assess creative themes for initial approval. Rational versus emotional appeals, or different emotional appeals are studied. Advertisers assess consumer reaction to options for spokespersons. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-86

2. Creative Tactics Decisions—all elements of creative tactics can be evaluated. Advertisers assess consumer acceptance of a unique/unusual execution style. Design elements (e.g., music, visuals) are examined. Message content evaluation occurs such as the body copy. 3. Other Promotional Programs—this chapter addresses advertising message effectiveness. Subsequent chapters examine the effectiveness for sales promotion etc., and the media chapters identify research issues as well. However, these programs generally feature ad-like communication or include ads, which are tested as above. C.

Where to Measure—there are advantages and disadvantages associated with the where question, and two testing environments are discussed. 1. Laboratory tests—are conducted in a facility with specialized equipment etc., for example, labs and theaters are two common ones. The major advantage is control. The major disadvantage is a lack of realism and the potential for testing bias. 2. Field tests—are conducted in natural environments (e.g., homes) with methods such as phone surveys and inquiry tests. The major advantage is the more realistic viewing situation. A lack of control and distracting conditions are disadvantages associated with these methods.

How to Measure 1. Quantitative Methods—Statistics measuring brand awareness, brand attitude, and purchase intention are usually gathered with scaled questions so calculate quantitative statistics. 2. Qualitative Methods—Interviews and focus groups usually provide qualitative data to understand consumer motives, processing responses to ads, and communication effects.

When to Measure 1. Pretesting—Pretesting occurs prior to the implementation of the campaign. 2. Post-testing—Post-testing takes place once the program has been implemented.

II.

MEASURING EFFECTIVENESS

This section identifies the type of questions asked to measure and assess processing of ad measures and communication effects of ads, and ad campaigns. This shows an application of the R&P model, but similar measures can be used for the less useful hierarchical response models shown earlier. A.

Processing Measures 1. Attention—Questions pertaining to what the receiver noted. 2. Learning—Questions addressing message understanding for those who do not perceive much risk of purchasing brand on next occasion. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-87

3. Acceptance—Questions gauging comprehensive evaluation of all ad elements. 4. Emotional Responses—Questions examining affective response to all ad elements. 5. Ad Recognition—Questions assessing ad elements the receiver recognizes with an ad prompt. 6. Ad Recall— Questions assessing ad elements the receiver recalls without an ad prompt. B.

Communication Effects Measures 1. Category Need—Example of category purchase intention question is shown. 2. Brand Awareness—Recall and recognition questions are suggested, in this order. 3. Brand Attitude—Multi-attribute approach to attitude measurement is shown along with questions for overall cognitive and affective evaluations. All measures potentially could be used to obtain a comprehensive measure of brand attitude. 4. Brand Purchase Intention— Example of brand purchase intention question is shown.

III. PRETEST MEASURING The actual testing of ads may take place throughout the campaign. Four types of tests are discussed. A.

Concept Test—concept test occurs very early in the development of the campaign and is designed to explore consumers' responses to ads and/or campaigns being considered. Focus groups and mall intercepts are commonly employed methods at this stage.

Rough Test—Because of the high costs associated with testing completed advertisements, advertisers/agencies conduct tests prior to the completion of the final product. Results of these tests correlate highly with those taken after completed ads.

Pretest of Finished Print Ad—advertisers prefer to test the ad in its finished form. A variety of both print and broadcast measures may be used. 1. Portfolio test—lab method where a portfolio of ads is shown to the target audience. 2. Readability test—assess the difficulty level of body copy writing. 3. Diagnostic copy test—conducted at home with extensive communication measures.

Pretest of Finished Broadcast Ad—advertisers prefer to test the ad in its finished form. A variety of both print and broadcast measures may be used. 1. Theatre test—lab method for pretesting finished commercials. 2. On-air test—field method that usually includes single-source ad research. 3. Physiological testing—pupil dilation, galvanic skin response, eye tracking, brain waves.

IV. POST-TEST MEASURING The actual testing of ads may take place throughout the campaign. Four types of tests are discussed. A.

Post-test of print ad—three common forms of post-testing print ads include: 1. Inquiry test—designed to measure advertising effectiveness based on inquiries generated from ads appearing in print media. 2. Recall test—attempt to measure recall of specific ads. 3. Recognition test – allows the advertiser to measure the impact of the ad

Post-test of broadcast ad—five common forms of post-testing TV ads include: 1. Day-After-Recall Test—a historically popular method, which has since declined in use, which provided recall scores, persuasion measures and diagnostics. 2. Comprehensive Test—Figure 9-12 illustrates the Ipsos-ASI Next *TV test, a commonly employed posttest measures of broadcast commercials. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-89

3. Test marketing—companies conduct tests designed to measure their advertising effects in specific test markets before releasing them nationally. 4. Single source tracking—track the behaviors of consumers from the television set to the supermarket checkout counter. 5. Tracking Studies—measure the effect of advertising on awareness, recall, interest, and attitudes toward the ad and/or brand as well as purchase intentions.

IMC PLANNING: PROGRAM FOR MEASURING EFFECTS

This final section discusses how to establish a sound program for conducting effectiveness research. A.

Criteria for Effective Research—several problems with existing research methods are discussed with the PACT program (Figure 9-13) used as a standard against which to measure these methods. In this section, each of the PACT principles is discussed with suggestions as to how each principle might be met.

Guidelines for Effective Testing—again referring to the PACT program, four suggestions are offered that will improve the effectiveness of the evaluation program. These include: 

use of a consumer response model



establish communications objectives.



use both pretests and posttests.



use multiple measures.



understand and implement proper research.

Teaching Suggestions While this is a research-oriented chapter, this subject matter can be presented in a very interesting fashion with additional material from “real world” applications to counter the technical research methods emphasis that academics tend to dwell on. This is an important topic within promotional planning and its significance should be stressed to students to see the link to Chapters 4 and 5. Applying all the measures and the testing methods to a sample of ad is a fun way for students to see how this works. Vignette 1. What is your impression of neuromarketing? Instructors might want to locate a video online to bring the topic to life. After seeing this visual to go along with the writing, students might opt-in or opt-out and their reasons would likely be amusing to explore. IMC Perspective 9-1 1. Select an ad from this text and identify alternative versions that could have been tested prior to media placement. This mini assignment lets instructors demonstrate how the A/B testing procedure could work by problem-solving the test with the selected ad. Variations of the ad could be imagined to show that multiple tests are possible to see which creative strategy decision and creative tactic decision is effective.

Answers to Review Questions 1. Discuss the differences between pretest measuring and post-test measuring, and lab testing and field testing. Pretests are those tests that take place before the advertisement or commercial is made available for viewing by the public. These tests may take place at a number of points from as early on as idea generation to testing the final version before showing it. Examples of pretests include focus groups, consumer juries, physiological measures, in-home tests, theater tests, etc. Posttests are those that occur once the ad has been placed in the medium and exposed to the public. Post-testing is designed to (1) determine if the campaign is accomplishing the objectives sought, and (2) serve as input into the next period’s situation analysis. Examples of posttests include recall tests, comprehensive tests, diagnostics, inquiry tests, single-source measures and tracking studies. 2. What measure should a marketer use to assess effectiveness for message processing and for communication effects? The question focuses students to understand the link between the content of chapter 4 and chapter 5 as a way of estimating the effectiveness of advertising. The communication response model is used to understand the receiver. Its application provides objectives for the ad. Finally, assessing the ad effectiveness is based on measures that correspond to the objectives set and the ad design to attain optimal processing of the ad message. 3. Why might a firm use theatre testing, on-air testing, and physiological measures to pretest its finished broadcast ads? All these methods are used as a screening to determine whether the ad should be aired in a campaign. Presumably the results would indicate enough “duds” if a marketer regularly used one or all of these methods. Over time, it is argued that the total cost of the research would be less than the enormous amounts of money wasted in media expenditures for a “bad” commercial, not to mention the possible lost contribution from annoying current or potential customers. Each research method offers its own unique strengths, since they are lab, field and physiologically based, and a manager would devise a research strategy based on their interpretation and conclusions. 4. Why is it useful for an advertiser to do tracking research? The PACT criteria ensure that research to measure the effectiveness of ads prior to media release is performed to the highest standards of research as possible. It provides a common understanding of the industry so that are major participants agree on what, when and where to test when assessing ad effectiveness. The criteria are the research requirements related to the performance measures highlighted in the PBR system described in Chapter 2. 5. Why are the PACT criteria important for testing effectiveness? The PACT criteria ensure that the effectiveness of ads prior to media release is performed to the highest standards of research as possible. It provides a common understanding of the industry so that major participants agree on what, when and where to test when assessing ad effectiveness. The Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-92

criteria are the research requirements related to the performance measures highlighted in the PBR system described in Chapter 2. Answers to Applied Questions 1. Select a popular ad campaign and explain whether it should have tested different creative strategy options or different creative tactic options? This question acts as an example to allow students to estimate what could have been tested prior to the launch of the campaign. For virtually any campaign, hindsight evaluation could suggest that a different theme or appeal be used, and this could be the source of investigation. Alternatively, from a tactical standpoint, different music or dialogue or scenes could be suggested as key tactics that could be tested. An astute student will point out different testing if the ad would have had a different move (e.g., move from information to transformational) which would have likely necessitated a change for both creative strategy and tactical decisions. 2. Select an ad from the book and describe questions that should be asked for a post-test for processing and communication effects. This application allows students to adapt the questions in the book to the brand and product category of the ad selected. The process of answering this question should reinforce the communication model understanding and provide additional support for seeing the link of ad content to the measurement of effectiveness. 3. Explain why you would or would not want to personally participate in a focus group of a rough ad. Perhaps the most enjoyable comments will be students’ opinions on the eye-tracking and the other physiological methods. These are much more invasive than completing a survey or participating in a focus group or personal interview. Some interesting views may emerge with those who go to a specialized theatre to watch ads and view “dummy” magazines as these will feel artificial. Essentially this question provides a fun opportunity for students to understand the methods from a personal point of view that might make the learning more enjoyable compared to memorizing. 4. Explain why you would or would not want to personally complete a tracking study questionnaire about a major ad campaign (e.g., Telus). Completing a questionnaire about a brand’s advertising is less invasive; and potentially less interesting for consumers as they have to recall message points and respond to many attribute and benefit measures in addition to other questions of interest for cross-classification purposes. Alternatively, students may find the questions interesting and be intrigued to discover what a brand is interested in measuring to see if advertising is effective. The question allows instructors to present the content of such a questionnaire to gauge student interest and reaction. 5. For any of the print ads located in the previous chapters, design a testing approach based on the final section of this chapter? Either the PACT section or the order in which the text is organized should be the basis for structuring this answer. The important point here is that students should have a clear idea of what to prescribe for each step. Using the latter view, students could apply the R&P model to structure what objectives Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-93

that might have been set for the print ad. Similarly, with a print ad selected, each of the pre and post tests could be investigated that are reviewed in this chapter. The measure is a tricky aspect to the task as students will have to think about key questions to track category need, awareness, and attitude. Finally, the student should be able to offer an intelligent suggestion on how the research will assist in making recommendations on whether the ad will be run or not. Additional Discussion Questions (not in text) A.

Discuss how tracking studies might be tied into the hierarchy-of-effects models. Tracking studies are generally used as posttest measures of the ads effectiveness. In these tests, the impact of the ad is tracked over time or in a particular location. The text notes that one of the major advantages of tracking studies is that they can be tailored to each specific campaign or advertising situation. By combining the tracking study methodology with the hierarchy of effects models, the advertiser can specifically measure the impact of a program on communications objectives. Once the campaign has been run (or while it is being run), measures of the number of people aware of the ad and its message can be taken. In addition, knowledge of the message, the product benefits being stressed and/or the purpose of the ad can also be assessed. In respect to affective reactions, liking, preference, and conviction toward both the ad and the product or service advertised can be measured. While actual purchases may be difficult to attribute to the ad, it is very possible (and common) to measure behavioral intentions. Each of the hierarchy models could be used in this manner, with each step constituting a dependent variable.

Describe physiological measures of advertising effectiveness. Give examples of companies that might find these measures useful. The text describes physiological measures used to measure effectiveness. 

pupil dilation—measures dilation and constriction of the pupils to stimuli



galvanic skin response—measures the skin’s resistance or conductance to current based on reactions to ads and/or commercials.



eye tracking—following the viewer’s eyes as they read an ad or watch a commercial to determine where attention focuses, and what may be attracting attention.



brain waves—alpha waves and hemispheric lateralization measures are taken to determine electrical frequencies occurring in the brain in response to advertising stimuli.

Obviously, a number of companies could make use of these methodologies. While some of these may have more application than others—as well as more validity—it would be up to the individual organization to determine which is most useful to them. For example, Coke has use eye tracking to determine where the respondents’ eyes focus (as has Wrigley’s gum). Insurance companies might use GSR/EDR to determine anxiety created by an ad, and advertisers employing sex in their appeals might use any one of the above. C.

Single-source methods attempt to track the behaviours of consumers from the television set to the check-out counter, measuring the impact of commercials on product purchases. These measures may be used as pretest or posttest measures, as is discussed in the chapter. Marketers feel that single-source measures will change the way that ad effectiveness studies will be conducted if they are successful. Part of the reason for this is that they offer advantages of other commonly employed measures but provide more insights into the possible behavioral effects that advertising might evoke. More specifically, the single-source methods hope to be able to determine advertising effects on sales. At the same time, single-source methods have their critics. Some researchers feel that these methods only measure short-term effects of advertising. Others feel that the data provided is just too complex to be of significant use. The cost of acquiring single-source data is also very high at this time. In sum, there is little doubt that single-source methods hold a great deal of promise for measuring the effects of advertising. These measures offer advantages of both lab and field measures, and provide the capability to measure actions that come closer to showing the effects of advertising on sales. As these systems move out of test markets, and can be used to explain more of the mass market, their value will increase, while costs may go down. D.

Discuss the elements necessary to conduct good advertising testing research. Perhaps the best answer to this question is that the marketer practices a sound market research methodology. This would mean the employment of the proper sample, pretesting of questionnaires, adequate controls, and assessments of reliability and validity. More specifically, the PACT principles might also be used to ensure that a proper research design is implemented. PACT principles state that the research must: (1) be relevant to the objectives of the advertising; (2) achieve agreement as to how the results will be used prior to testing; (3) provide multiple measures; (4) be based on a model of human response; (5) allow for multiple exposures; (6) recognize limitations associated with unfinished copy; (7) provide controls to avoid biases; (8) have a proper sample; and (9) demonstrate reliability and validity.

Discuss aspects of the communication program that advertisers may wish to test. Advertisers may wish to test all creative strategy decisions. Once a particular advertising theme has been exposed for a period of time, advertisers would want to know whether it positions the brand successfully. Alternatively, they may desire to test multiple advertising themes to determine which is most appropriate. Related to the creative theme is the message appeal and advertisers would be concerned as to whether the particular appeal is effective at persuading. Advertisers would like to know whether the source being used is effective and how the target audience will respond to it. A product spokesperson may be an excellent source initially but for a variety of reasons may lose impact over time. Changes in the source’s attractiveness or likeability or other external factors may also lead to changes in source effectiveness. Creative tactics decisions are also critical aspects of measurement. The executional style can be assessed to determine its effectiveness. Message structure issues can be looked at to determine if they are persuading appropriately. Design factors that have an impact on its effectiveness Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-95

include headlines, text, layout, and illustrations. Advertisers can produce different options prior to launching a campaign to assess which might be more liked. Astute students will recognize that the chapter mostly addresses advertising message effectiveness, and that aspects of media effectiveness are relevant. Research pertaining to media is presented in the media chapters and instructors can make reference to it at this stage and use the material in this chapter as a foundation to explore the issues in more detail. IMC Exercise Assign students the responsibility of interviewing at least one business or non-profit organization’s person responsible for the marketing /promotional program. Have them ask whether effectiveness measures are taken. Have them report to the class what measures these are. If none are taken, have them suggest which might be used. IMC Comprehensive Project In your plan you identified a variety of messages that might be employed. Explain which measures of effectiveness would be employed. Report whether they would be used at the pre-test or post-test phase, and whether they would employ lab or field methodologies.

CHAPTER 10: MEDIA PLANNING & BUDGETING FOR IMC INSTRUCTOR’S MANUAL Chapter Overview This chapter introduces the concepts of media planning. The chapter begins with an overview of media planning by introducing the content of the plan and media planning challenges. The chapter then focuses on media strategy decisions and media tactics decisions. The chapter concludes with a description of the budgeting process, theories underlying budgeting decisions, and the managerial approaches to budgeting. Learning Objectives 1. Illustrate how a media plan is developed. 2. Identify the decisions and process for implementing media strategies. 3. Identify the decisions and process for implementing media tactics. 4. Distinguish among the theoretical and managerial approaches for media budget setting. 5. Apply the methods for allocating the media budget to relevant IMC programs and market situations. Chapter and Lecture Outline I.

MEDIA PLANNING

This section presents the media planning process and illustrates that media planning is a process influenced by a range of factors (e.g., media, marketing strategy, product). A.

Overview—a media plan identifies chosen media that delivers the brand message effectively and efficiently. The activities involved are shown in Figure 10-2. A media plan is an actual document detailing these decisions.

Media Plan—media planning involves decisions in delivering the message to the target audience. 1. Media Objectives—the objectives sought by the media plan. 2. Media Strategy—decisions designed to attain media objectives. It includes the medium, the general category of media channels like broadcast, print, or out-of-home, the media type, the specific media category like television or radio for broadcast, and the media class like specialty TV channels. Application for digital media is included. Three concepts for media strategy are: A. Reach—the number of potential audience members exposed once to a media vehicle in each period. B. Coverage—the potential audience that might receive a message through a vehicle.

C. Frequency—the number of times the receiver is exposed to the media vehicle in each period. 3. Media Tactics—the more specific media decisions involving media vehicle (e.g., type of television show to advertise on), fine-tuning the budget and timing of all media purchases. C.

Media Planning Challenges—challenges are identified, each of which directly impacts the planning process such as: insufficient information, inconsistent terminology, need for flexibility, role of media planners and problems in measuring effectiveness of a media plan. An understanding of these problems is critical to the proper design of the media plan.

II.

MEDIA STRATEGY DECISIONS

Media Mix—determines the channels used to deliver a brand’s message based on the objectives and budget constraints. Figure 10-4 summarizes the strengths and limitations in terms of media characteristics and media usage characteristics. This general framework is applicable for all media channel choices, including digital. Descriptive words to indicate the relative intensity of the strength or limitation are not included as this is a judgment and is dependent upon other media decisions and creative decisions. Items for each media are summarized fully in each chapter.

Target Audience Coverage—Figure 10-5 provides a graphic illustration of marketing coverage possibilities. Of course, the marketer would like to achieve full coverage through a combination of media. As noted, this is not an outcome, and decisions must be made that involve trade-offs between less than full market coverage and excessive coverage.

Geographic Coverage—the decision as to where to promote involves geographical considerations. Campaigns focus on major CMAs due to cost considerations. For example, a campaign might focus on the top five, ten or twenty CMA locations. The discussion turns to the use of secondary information and indices as aids in making this decision. The Brand Development Index (BDI), and the Category Development Index (CDI) provide guidance on how to allocate the budget. Figure 10-8 presents strategies alternatives.

Scheduling—marketers typically employ one of three scheduling alternatives since it may not be feasible (or necessary) to maintain a constant advertising schedule. 1. Continuity refers to a continuous pattern of advertising—that is every day, week, or month depending on the planner’s time horizon for planning (food products) 2. Flighting is a scheduling method in which there are intermittent periods of advertising and no advertising (e.g., snow skis) 3. Pulsing is a combination of the two previous methods, in which a continuous schedule is used, though the amount spent varies throughout the period (automobiles).

Reach and Frequency—given that advertisers have differing objectives, and are constrained by budgets, the media decision usually involves a trade-off between reach and frequency. This decision is one of exposing more people to the ad or exposing fewer people more often. In making this decision, the media planner considers a few factors including: Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-98

1. How much reach is necessary? 2. What frequency level is needed? 3. Determining effective reach and frequency. 4. Using gross ratings points (GRP's) III.

MEDIA TACTICS DECISIONS

Media Vehicle—Creative aspects of the ad may require the use of specific media. For example, television may be required to implement certain types of creative campaigns. Likewise, the mood that a medium creates may carry over to the ad itself. For example, certain magazines may create various moods as they are being read. Research may be designed to determine which media class (broadcast vs. print) generates the most effective results, the location within a particular medium (front page or back page) and size or length of time the ad or commercial runs. Another factor is the vehicle source effect— the differential impact that the advertising exposure will have on the same audience member if the exposure occurs in one media option rather than another.

Relative Cost Estimates—costs are considered to determine which media will be employed. Two types of costs are addressed—absolute cost—which is the actual cost to place the ad in the medium—and relative cost—or the relationship between the price paid for advertising time or space and the size of the audience delivered. A comparison of media vehicles is usually necessary, using criteria such as cost per thousand (CPM), and cost per ratings point (CPRP)

Blocking Chart—the blocking chart summarizes the media strategy and media tactics decisions made thus far and includes extensive implementation details that guide the media buyers as they attempt to achieve the media objectives.

BUDGET SETTING

Overview—summary statistics indicate the difficulty of the budget decision.

Theoretical Budget Setting—features two methods that take an economic model view of the effects of advertising on sales. 1. Marginal analysis—Figure 10-19 illustrates marginal analysis. As the figure indicates, as advertising/promotional efforts increase, sales and gross margins will also increase to a point and then level off. In using marginal analysis, the firm would continue to spend promotional dollars so long as the marginal revenues created by these expenditures exceeded the incremental costs. When the dollar expenditures exceed the returns, the budget should be scaled back. In other words, the optimal budget would be at that point where marginal revenues are equal to marginal costs, or where mr = mc. While this economic model seems logical intuitively, in fact, there are two major weaknesses that limit its applicability: (1) The assumption that sales are a direct measure of advertising and promotions efforts, and (2) the assumption that sales are determined solely by advertising and promotions.

2. Sales response models—two budgeting models based on sales response are discussed in the text. The first of these—the concave-downward function—is based on the microeconomic theory of the law of diminishing returns. Essentially, the model states that as the amount of advertising expenditures increases, its incremental value decreases. The basic argument is that those most likely to buy the product are likely to do so because of the earliest exposures. Additional exposures are not likely to increase the probability of their purchasing, nor is it likely to influence those who are undecided or unlikely to buy. Thus, the effects of advertising would rapidly diminish. The second model—the S-shaped response function—takes a different approach. In this model, it is argued that initial outlays of promotional dollars will have negligible impact on sales. As indicated in Figure 10-20, in Range B an impact will begin to be noticed, carrying through to Range C, where additional expenditures again have minor impact. This S-shaped curve suggests that there are incremental values to be accrued from additional dollar outlays, but only to a point. For example, it would be argued that a certain level of expenditure is necessary to make an impact. However, after a certain point (beginning of Range C) these dollars are unlikely to be of value. 3. Situational Factors—In addition to considering the theoretical aspects of budget setting, situational factors are considered including customer factors and the competitive environment. Figure 10-21 demonstrates this point effectively. C.

Managerial Budget Setting—involves methods applied from managerial practice. This section defines the methods and identifies the relative advantages and disadvantages of each. Topdown methods occur when “top” management establishes the budget and passes it down to the managers. Bottom-up methods establish objectives to determine the budget based on the costs required to attain these goals (i.e., methods 6 and 7). 1. Affordable—firm determines what level of advertising and promotions expenditures are based on cash flow or other financial factors. 2. Arbitrary—there is no logical reason for the amount established (e.g., dart board decision!). 3. Percentage of sales—there are variations on this method (e.g., flat percentage of sales, percentage of the product cost, see Figure 10-24). Another variation stems from which year is considered the base year for sales. One approach uses past sales while another uses the percentage of projected future sales. 4. Competitive Parity—budget is set by matching the percentage advertising/sales ratios of competitors. 5. Return on Budget Investment (ROI)—advertising expenditures are an investment with a resulting return on sales, a difficult relationship to empirically demonstrate. 6. Objective and Task—Figure 10-23 demonstrates the steps of the objective and task approach. The process involves establishing objectives, determining the specific tasks associated with attaining these objectives, and determining the costs associated with these tasks. Monitoring and re-evaluation of these steps is critical to the success of this method. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-100

7. Payout Planning—By projecting the revenues that a product is expected to return over a period of two to three years, the marketer develops a payout plan. Based on this expected rate of return, the marketer determines the advertising expenditures necessary. An example of a payout plan is presented in Figure 10-24. V.

IMC PLANNING: BUDGET ALLOCATION

Examples are shown in two figures where the budget allocated across different IMC programs. Managers determine the emphasis across media and IMC programs to maximize media and communication objectives while respecting the budget. Instructors can find other examples such as these to indicate the complexity of IMC programs and to reinforce the audience contact point in Chapter 1. Teaching Suggestions Both the length and complexity of this chapter make it a difficult one for students to comprehend. Unfortunately, the terms and definitions are critical to the students' learning of media planning and strategy. In addition, learning this complex vocabulary is required to participate in the advertising world. One suggestion is to break the chapter into two lectures. The first presents the planning process and reviews the terms and formulas. The second lecture focuses on achieving objectives through the reach and frequency decisions, and budgeting tradeoffs. Vignette 1. How could other organizations apply this example to their marketing communication situation and develop an innovative media decision? This example might spark students’ ideas. One, creative ways in which a QR code could be integrated into other media placements. Two, creative visuals that could go within an outdoor mural. Various digital activities that could occur in social media after consumers are directed from out-of-home media. A critical point is to reiterate that there is a reasonable level of creativity with media decisions and that media is integrated with the creative theme. IMC Perspective 10-1 1. Explain why a media agency is critical for IMC planning. Media agencies are integral to IMC planning since they provide the resources and expertise for promotional planners to make informed media decisions for all IMC programs. Media agencies negotiate with media for favourable rates, understand research to optimize reach, frequency, and coverage decisions, and as the examples show, they innovate with unique media placements. IMC Perspective 10-2 1. Which of these media executions appears to be the most innovative? The awards winners manage to find a good fit with their message, creativity, and media selection. Media decisions in isolation cannot be considered effective as it is predicated on the target and what the brand is attempting to say to the target audience. Combined, the overall effect appears Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-101

quite innovative in an area where it is difficult to innovate. Instructors can show examples of the winners and discuss the merits of each. Answers to Review Questions 1. Explain why media planning involves a tradeoff between reach and frequency. Ideally, advertisers would maximize reach and frequency. Unfortunately, the media planner is forced to choose between reach and frequency due to budgetary constraints. Given the plan’s objectives one or the other may be emphasized. Maximizing reach at the expense of frequency is more logical when the message is simple and easily understood, the receiver is in the initial stages of the response hierarchy (for example, awareness and/or interest) and the target audience is broad. Frequency may be a more important objective when the target audience is at a higher level in the response hierarchy (i.e., comprehension), or when the message is more complex, and/or when the target audience is narrowly defined. For example, messages with lengthy copy that are more difficult to comprehend require greater effective frequency since one or two exposures may not be enough to achieve the media objectives. Likewise, a narrowly defined target audience may require an emphasis on frequency, a minimization of excessive coverage, and less emphasis on reach. 2. Describe what is meant by excessive coverage. The decision must often be made between excessive coverage and under-coverage. Give examples of when the marketer might have to choose between the two, and when it may be acceptable to live with excessive coverage. The optimal situation would be one in which there is a perfect match between the target audience sought and the media coverage, with everyone getting potential exposure to the message, and those not in the market not being exposed. This is not going to happen, so the marketer chooses between the options of under-exposure or paying for coverage for recipients not in the target audience. In some instances, the budget may not allow for full market coverage under any situation. In other situations, the communications objectives, the cost of the media buy, and other factors must be taken into consideration. Most marketers would argue that they would rather live with excessive coverage, ensuring that most if not all in their audience were exposed, rather than undercoverage, as those not exposed are much less likely to purchase the product or service. A recent trend in business-to-business advertising is to purchase ad time and/or ad space in consumer-oriented media rather than the more targeted trade publications. While only a small percent of the audience or readers is in the target audience, media buyers have found that it is still more cost efficient to purchase the less-targeted medium than it would be to buy trade magazines even though there is a high degree of excessive coverage. A final consideration is the potential to convert non-prospects into buyers. While the market may be defined as a specific group (e.g., 1824), those on the fringe (17, 25) may end up seeing the ad and purchasing—even though not in the primary target audience. In such cases, what was thought to be excessive coverage really was not. 3. What is meant by readers per copy? How is this different from CPM? Explain the advantages and disadvantages associated with the use of both. Readers per copy is determined by including a pass-along rate—a figure that includes readers who may not subscribe or have paid for the copy. An advantage of using this number is that it may more accurately reflect potential exposures to the medium. For example, it is well accepted that there is not always a one-to-one circulation to readership ratio. Smart buyers may be able to gain more Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-102

exposure to their ads than they are paying for if they can find a medium with high pass along readership. Consider a magazine like Time or Sports Illustrated. More than one person may read each issue, whether the readership is taking place in the household. In this case, the media buy based on circulation underestimates the reach, and the buy becomes more efficient. The disadvantage associated with using readers per copy is that pass-along rate is difficult—if not impossible—to determine. While one may easily estimate the number of persons exposed to Time magazine in a household, for example, the ability to estimate the number of persons exposed to Business Week in a doctor's office is more complicated and lacks validity. More mediums present relative cost comparisons in terms of CPM to provide the media buyer with a “standard” figure to simplify the media buying process. A limitation of a consistent use of CPM’s is also evident, however. A message appearing in print is different from a message appearing on broadcast. One appearing in a magazine will not have the same impact as one in a newspaper. By providing a standard number the media buyer may be misled in terms of the impression that the ad carries. So long as the media buyer remembers that CPM refers to the cost to potentially expose one’s message to a thousand people, there should be no problems associated with this common term. 4. Identify the information resources required to calculate the budget using the objective and task method. Information requirements are needed to perform the objective and task method; the size and location of the target audience, precise definition of the communication tasks required, cost information for all media considered, reach and frequency estimates for each media vehicle. This list illustrates why this method is not commonly done as the work involved is quite extensive. 5. .What factors influence the budget allocation to different media or different IMC tools? The marketing objective in terms of sales or share is a major factor as these contribute to the target audience selection and the subsequent behavioural and communication objectives. Beyond this, planners would need to consider how media and IMC tools will contribute to these objectives and fit with the decision-making process of the target audience. Internal organizational factors and relationships with the different marketing communication agencies can also influence the decision since these participants will put forth their own suggestions and recommendations. Answers to Applied Questions 1. One long-time advertising agency executive noted that buying media is both an art and a science, with a leaning toward art. Explain what this means and provide examples. There is a wealth of secondary information available to advertisers and media planners. As noted throughout this chapter, audience profiles, media usage, media costs, and competitive information are readily available. However, even given these large volumes of data, media buying may be less scientific a process than one might think. Several reasons can be offered for this position. First, the validity of the data is often questioned due to methodological difficulties. Secondly, there are factors that just do not show up in the numbers. The content of the material, the audience’s impression of or attitude toward a specific DJ, or Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-103

newscaster may not be reflected in the numbers, and must be evaluated more qualitatively. Monthlies may offer greater potential for frequency of exposure than weeklies. Even when the numbers are valid, one must look purely beyond just the data per se. For example, local news ratings for CBC stations may often be highest on a certain night because of the network’s prime time programming. While the numbers may be there, this does not indicate the fact that the stations are more popular, only that people have not switched away from the station they were on. While one might say, “so what, the numbers are there,” the quality of the viewer may not be the same as on other nights when they specifically tuned into the news broadcast. The discussion on CPM vs. Readers per Copy is another example when the media must be looked at and evaluated on criteria other than just the numbers. Most good media buyers know that numbers are important. Most also know, however, that they must look beyond just the numbers in making their decisions. The qualitative aspect or the “art” of media buying may be as important as the hard data. 2. Visit the website for two magazines of the same genre and locate their media kit that tries to attract advertisers to their media vehicle. Investigate how each magazine tries to persuade advertisers and decide which magazine would be most suitable to advertise. This should prove to be an illuminating activity so that students can appreciate the wealth of data available for each media vehicle and to see the extensive promotion of media vehicles to entice advertisers. For example, the media kit for Canadian Living 2014 is a pdf comprised of twenty-two pages with colourful imagery, multiple tables showing the audience profile, the placement costs, production requirements and schedule in addition to a few other items. In contrast, Chatelaine shows a few tabs of the basic information and nothing more. Student could certainly compare others, but these are the foremost magazines with a female readership skew and offer a good example if students do not come to class with a good example. 3. Calculate the CPM for five or six different media vehicles that are interesting or topical. This exercise can be done in conjunction with question 2 since students will be looking at the media kits. Alternatively, students can try to locate multiple print vehicles in CARD and calculate the CPMs. Whatever the selection, the students should be questioned on explaining why the numbers differ. For example, a vehicle could have a very selective audience with a low readership, thus driving up the CPM. Guidelines on comparing similar media vehicles could be offered as an extension to the question. 4. Assume that a new entry level car brand wants to achieve thirty percent awareness among graduated students aged 21 to 24; calculate how much would have to be spent in the budget to achieve this objective. This is a challenging question for students as it is an application of the objective and task method of budget setting. They must estimate the number of students first from a secondary data source. From this, reach and frequency decisions need to be made considering any geographical skews in the data to show how the 30% awareness could be achieved. Media selection is next which would require multiple avenues. This part would open debate on whether TV would still provide sufficient coverage. Alternatively, consideration of Internet ads for young people watching a “TV” show online would be evaluated by most students. Once the media selections have been done, the costs for each Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-104

need to be worked into the calculations along with the earlier estimates for reach and frequency. In the end, an estimated budget based on the task of awareness should arise. An extension question could investigate how the budget would need adjusting to achieve other objectives. 5. For an up-and-coming brand of fashionable jeans, a re-branded local night club for dancing, and an established energy drink, identify the most appropriate media budget allocation (in percentages) to create awareness. Do the same for all three brands with respect to IMC tools. Instructors could tabulate alternatives in a class discussion and get students to express the reason for their decisions. Each of the product selected fit within the life of a young student and all three are at distinct stages of the PLC, new product, rebranded, and mature which should prove to be a challenge to wrestle with and offer divergent opinions across the three options. The first question looks at how the students will allocate the budget across different media in a pure advertising recommendation, while the second looks at the budget for multiple IMC programs. Of course, overlap exists where an IMC program might require advertising. For example, if a brand is sponsoring an event, it might advertise the sponsoring in media, so from a budget and communication effects standpoint, it is both advertising and both an IMC program. So, in the end, this exercise draws upon the key part of IMC planning which is the link between the IMC programs to achieve objectives. Additional discussion questions (not in the text) A.

Using the BDI and CDI indices, explain the least desirable market situation for marketers. Provide an example. Then do the same for the most desirable situation. BDI compares the percentage of the brand's total Canadian sales in each market area with the percentage of the total population in the market. The resulting BDI indicates the sales potential for that brand in that market area. CDI provides information on the potential for development of the total product category rather than specific brands. Figure 10-8 provides an excellent summary of how BDI and CDI can be used to develop marketing strategies. The use of these indices provides marketers with insights into the market potential for the product or brand. This, in turn, provides information regarding the amount of media emphasis, weighting to be allocated. The least desirable situation is one in which the BDI and the CDI are both low. In this situation, there appears to be little potential for either the category or the brand. For example, consider typewriters. If they are still marketed at all, the category is in the decline stage, and any brands would be as well. No amount of advertising is likely to bring back the category or the brand. The most desirable situation is one in which BDI and CDI are both high. In this case, the category is growing, and the potential for the brand to grow is high as well. An example might be PC’s. The use of computers is growing, and new brands may have the potential to grow as well. The advertiser would be more likely to be successful by investing in this situation.

Discuss the factors that are important in determining frequency levels. Give examples of each factor.

Figure 10-14 identifies factors important in determining frequency levels. The three factors and specific examples of each are:

Marketing factors—these include factors such as brand history, brand share, degree of brand loyalty, purchase and usage cycles, competitive share of voice, and target markets.

Message factors—complexity and uniqueness of the message, length of time the campaign has run, image versus product sell, message variation, wear out and advertising units.

Media factors—clutter, editorial environment, attentiveness, scheduling number of media used, and repeat exposures.

Describe the three methods of promotional scheduling. Give examples of products and/or services that might employ each method. The text discusses three scheduling options available. Due to budgetary constraints, and the fact that products do not require year-round exposure, scheduling allows for more efficient allocation of advertising and promotional dollars. The scheduling options available are: Continuity—A continuous schedule refers to constant advertising throughout the year, either daily, weekly, or monthly. Products most likely to employ this scheduling method include those that would be used consistently throughout the year with no seasonal variations (e.g., toothpaste, mouthwash, laundry detergent). Flighting—This schedule has intermittent periods of advertising, with times when there is advertising and others when there is none. The “on” advertising time is referred to as flights. Seasonal products (e.g., snow skis, swim wear) would employ this method. One advantage of flighting is its ability to extend the limited ad budget. Pulsing—A combination of the previous two methods, pulsing employs a continuous schedule with periods of increased advertising to take advantage of intermittent opportunities.

Critics of the percentage of sales method of budget setting contend that this method “reverses the advertising and sales relationship” and that it “treats advertising as an expense rather than an investment” Explain what these arguments mean and discuss their merits. The percentage of sales method, while a commonly employed method of budget setting, has its disadvantages. The major disadvantage is that the advertising budget is based on the number of sales generated, not as a basis for achieving sales; and thus reverses the advertising/sales relationship. By establishing the advertising budget based on the level of sales, sales are dictating what the ad budget will be. Advertising is not considered a progrm for generating sales but is considered more of a cost of doing business. If sales fall, the ad budget is cut. So, what happens is that in periods of declining sales, rather than considering advertising as a program for reversing the trend, it is seen to cut costs to improve profits. In periods of increasing sales, the advertising budget may be raised accordingly (remember it is a % of sales) The argument that this method reverses the advertising sales relationship is a valid one. If one treats advertising as an investment, then the ad budget should increase during downturns in the market, to turn around the declining sales. By slashing the ad budget based on a % of sales, Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-106

management is saying that they do not believe that investing in advertising is a viable strategy for improving sales. IMC Comprehensive Project At this stage, present the specific media objectives. Without specifically naming media (this will be done in following chapters) develop a broad media schedule. Also explain what creative aspects and mood must be taken into consideration. In addition, determination and allocation of the budget is now required.

CHAPTER 11: BROADCAST MEDIA INSTRUCTOR’S MANUAL Chapter Overview The purpose of this chapter is to examine the broadcast media of television and radio. It examines the characteristics of television and radio as well as their strengths and limitations as advertising media. Attention is given to how advertisers use TV and radio as part of their media strategy, how they buy television and radio time, how audiences are measured and evaluated for each medium, and how rates are determined. Recent developments in audience measurement for television are examined. Learning Objectives 1. Describe television media regarding its delivery, types of TV advertising, time periods and programs, audience measurement, and streaming. 2. Summarize the strengths and limitations of television TV as an advertising medium. 3. Describe the types of radio advertising, time periods, and audience measurement. 4. Summarize the strengths and limitations of radio as an advertising medium. 5. Apply the media knowledge of TV and radio for strategic IMC decisions. Chapter and Lecture Outline I.

TELEVISION

There are options available to advertisers purchasing television time, particularly for large companies buying to reach national or regional audiences. A.

Delivery of TV Services—this section reviews the five separate ways consumers receive TV services given the technology changes over the past decade or so. How this occurs influences whether the audience receives advertising while enjoying video content. This is important to review since students watch less conventional TV and do not understand all the delivery systems.

Types of TV Advertising— advertisers allocate their TV media budget among network, specialty network, online network, sponsorship, and product placement options. 1. National Networks—advertisers disseminate their messages by purchasing airtime from a television network which assembles a series of affiliated stations or affiliates to which it supplies programming. Network advertising simplifies the purchasing process for advertisers who want to reach broad target audiences. Most prime-time commercial spots are sold during the up-front market while time is also bought during the scatter market that runs throughout the TV season. Spot advertising refers to commercials shown on local television stations, with the negotiation and purchase of time being made directly from the individual stations. All non-network advertising done by a national advertiser is known as national spot, whereas airtime sold to local firms is known as local advertising.

2. Specialty Networks—specialty networks offer a lower cost, more flexible alternative to regular network advertising and this makes them particularly attractive to smaller advertisers. However, wide-spread acceptance of the channels is limited due to their niche characteristics. About twenty channels have a prominent image and strong following. 3. Network Advertising Online—national and specialty networks sell advertising time to programs that a consumer accesses anywhere, anytime, on any device, featuring apps for mobile delivery. The growth of this is slow but appears poised for substantial increase and instructors can update this as things change quickly. 4. Sponsorship Advertising—under a sponsorship arrangement, an advertiser assumes responsibility for the production and content of the program as well as the advertising that appears within it. 5. Product Placement—advertisers pay to have their products used or featured in television shows. This often works in conjunction with sponsorship deals as well. The source in which the product is placed is critical since the plot, actors or other characteristics of the entertainment vehicle can be associated effectively with the brand. Issues of the amount of time and the number of different vehicles is also highlighted as important. C.

Time Periods and Programs—another consideration in buying television time is the selection of the time and program during which the commercial is shown. Considerations here include the selection of a specific time or daypart segment and audience size and demographic composition. Dayparts are important to advertisers because they attract different demographic groups.

Measuring the TV Audience— An important consideration in using television advertising concerns the size and composition of the TV viewing audience. Audience measurement is critical to advertisers, networks, and stations since they want to know the size and characteristics of the audience they are reaching when they buy time on a particular program. Audience size and composition are important to networks/stations as these figures determine the amount they charged for commercial viewing time. Programming decisions are made based on audience size. 1. Audience Measurement—the source of network TV and local audience information is Numeris. The company uses a diary research method for gathering audience information using standard marketing research practices to ensure valid and reliable information. Numeris implemented people meters to measure national local audiences in major cities. The improved technology offers individual level data and timely measurement. 2. Audience Measures—concern both program rating and share of audience. Program rating is the percentage of viewers in an area that are tuned to a specific program during a specific time-period. A ratings point is a figure that represents 1 percent of the audience in a particular market tuned to a specific program. Share of audience is the percentage of audience watching TV in a specified time that is tuned to a specific program. TV audience share figures are important because they reveal how well as program does with the available viewing audience. 3. Audience Measurement Reporting—Numeris’ subsidiary offers software applications for analyzing the data collected to understand audience composition for TV shows. The Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-109

breakouts of the data include a wide variety of segmentation variables identified in Chapter 3. Other companies offer similar services. E.

SVOD TV Viewing—TV viewing changed significantly with technology and this last section illustrates the trend of accessing TV programming online through new distribution systems. While there are minimal advertising opportunities through this system currently, it offers sponsorship and product placement opportunities, and may indeed be a sizable paid option in the future.

CRTC Regulation—occurs due to the important function broadcasting has in society. 1. Responsibilities—CRTC is responsible for regulating and supervising Canada’s communication system derived from the CRTC Act, the Bell Canada Act, the Broadcasting Act, and the Telecommunications Act. The broad objective of these acts ensures that all Canadians receive broadcasting and telecommunications services. The CRTC regulates media organizations (i.e., television, cable distribution, AM, and FM radio, pay and specialty television, direct-to-home satellite systems, multipoint distribution systems, subscription television, and pay audio) and is responsible for granting the licenses for these media and ensuring that they comply with the Broadcasting Act. 2. Advertising Time Limits—conventional TV stations have no limit regarding the number of advertising minutes per hour. However, the CRTC regulates the amount of TV advertising in other circumstances. 3. Signal Substitution—Signal substitution occurs when a television service provider temporarily replaces the entire signal of one TV channel with another channel that is showing the same program at the same time. Most times this occurs when a Canadian signal replaces an American signal. This protects the interests of the broadcasters who have paid for the rights to show the program in Canada. It also promotes local broadcasting and content creation by allowing these media to retain their audience. Finally, it keeps advertising revenue of about $250 million within the Canadian market. This policy raises complaints and issues historically.

II.

EVALUATING TELEVISION

Television has saturated Canadian households and is mainstay in the lives of most people. They rely on TV for news and information, and it is their primary form of entertainment. The penetration and popularity of television make it the predominant form of mass media. It has often been noted that television represents the ideal advertising medium with its ability to combine visual images, sound, motion, and color. While television has strengths, it also has limitations as an advertising medium. A.

Strengths of Television 1. Creativity for cognitive and emotional responses—the interaction of sight and sound offers tremendous creative flexibility and makes possible dramatic, lifelike representations of products and services. 2. Target audience coverage—marketers selling products and services that appeal to broad target audiences find that TV lets them reach mass markets. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-110

3. Relative cost—extensive coverage across markets permits markets to reach thousands of consumers with little cost per person or cost per thousand. 4. Attention—television commercials are intrusive by interrupting a TV program. Special effort to avoid commercials is required so consumers receive and pay attention to commercials, whether they realize or admit to this occurring. 5. Scheduling flexibility—TV is criticized for being a nonselective medium since it is difficult to reach a defined market segment. However, selectivity is possible due to the composition of audiences because of scheduling flexibility through different programs and broadcast times. 6. Geographic coverage—scheduling flexibility gives rise for advertisers to cover more desirable geographic markets or more strongly emphasize some regions over others. 7. Reach—with 100% penetration of televisions and all Canadian reporting television consumption, advertisers could reach everyone. 8. Frequency—advertisers can control the number of times consumers receive the message through proper scheduling and can optimize their frequency based on their market needs. 9. Media Image—advertising on television places a certain degree of legitimacy upon an advertiser due to the extensive absolute costs involved. B.

Limitations of Television 1. Absolute cost—the absolute costs for commercial time can be remarkably high, particularly on the major networks. Production costs for quality commercials can also be prohibitive. The production costs for a national brand commercial average more than $300,000 and can be much higher for more elaborate spots. 2. Target audience selectivity—advertisers who are seeking a specific, often small, target audience find the coverage of TV extends beyond their market, reducing its relative cost particularly within a local market area. 3. Amount of processing time—most TV commercials are only 15 or 30 second spots and leave nothing tangible for the viewer to examine or consider. 4. Clutter—the problems of short messages and shorter commercials are compounded by the fact that the advertiser’s message is only one of many spots and other non-programming material seen during a commercial break. 5. Viewer attention—the increased penetration of technology and prevalence of remotecontrol channel changing or zapping is a problem for advertisers. 6. Involvement—the overall effect of the characteristics of television implies that low involvement persuasion despite its significant invasiveness. 7

III.

RADIO

Radio is primarily a local advertising medium characterized by highly specialized programming which appeals to very narrow segments of the population. Radio has survived and grown as an advertising media vehicle because it offers advertisers certain advantages despite its limitations. The growth of network radio provides greater appeal to national and regional advertisers. A.

Types of Radio Advertising—purchase of radio time is like television as advertisers select either network, spot or local buys during multiple time periods or dayparts. 1. Network radio—a new option for Canadian advertisers who can purchase advertising time on the newly established radio networks. 2. Spot radio—national and local advertisers use spot radio to purchase airtime on individual stations. 3. Stations Formats—radio is offered in both official languages, along with other languages spoken in Canada, across both AM and FM modes. Distribution of a radio station program is easily done digitally as consumers listen to a “local” radio stations anywhere via the Internet.

Time classifications—the broadcast day for radio is divided into time periods or dayparts. The size of the radio listening audience varies widely across the dayparts, and advertising rates follow accordingly. The largest audiences (and thus the highest rates) occur during the early morning and late afternoon weekday drive times.

Measuring the Radio Audience—Numeris provides information on radio listenership, and this includes person estimates, rating and share including average quarter hour (AQH) figures and cumulative audience data (Cume).

IV.

EVALUATING RADIO

Strengths of Radio 1. Relative cost and absolute cost—radio commercials are inexpensive to produce and the absolute and relative costs for radio advertising time is lower than for television. 2. Reach and frequency—cost implications suggest tremendous opportunity to build strong reach through placement across radio formats and enhanced frequency. 3. Target audience selectivity—allows marketers to focus their advertising on specialized audiences such as certain demographic and lifestyle groups. For example, talk radio reaches the adult market effectively while the top forty music reaches teens and young adults. 4. Geographic coverage—advertisers use radio stations and personalities to enhance their involvement with a local market and to gain influence with local retailers. Radio provides marketers with integrated marketing opportunities such as events and promotions.

5. Scheduling flexibility—radio is the most flexible advertising media because it has a short closing period, which means advertisers can change their message close to airtime. 6. Creativity for cognitive responses—verbal characteristics permit extensive rational messages or ads designed to communicate more information about a product. 7. Media image—consumers rely on radio for basis day-to-day media and good impressions about it are reported by market research. B.

Limitations of Radio 1. Creativity for emotional responses—radio is an advertising medium without a visual image. The radio advertiser cannot show the product, demonstrate it, or use any type of visual appeal or information. However, there is potential for mental imagery. Creative radio ads encourage listeners to use their imagination when processing a commercial message. It can also reinforce TV messages through a process called image transfer where the visual elements of TV commercials are implanted in a radio spot. 2. Amount of processing time—like television, radio features short messages. 3. Target audience coverage—the percentage of the market tuned to any station is small. 4. Attention—radio programming, particularly music, is often the background to some other activity and may not receive the listeners’ full attention. People who listen in their cars preprogram their radios and change stations during commercial breaks. Another factor that is detracting from radio listening in motor vehicles is the rapid growth of cellular telephones. Commuters who own a cell phone are talking on the phone more and listening to less radio. 5. Selective exposure—pre-programmed radios provide instant availability of other stations during ad breaks. Consumers have significant control to avoid ads. 6. Clutter—most radio stations carry an average of 10 minutes of commercials every hour. During the popular morning and evening rush hours, the amount of commercial time may exceed 12 minutes. 7. Low involvement—like television and radio is often construed as a low involvement media.

IMC PLANNING: STRATEGIC USE OF BROADCAST MEDIA

Television—The points raised are built on Figure 5-5 where each media plays a role in the consumer decision-making process and has communication objectives. While TV has specific strengths and limitations, how a promotional planner constructs the message in the media can help achieve varying degrees of the communication objectives options described in Chapter 5.

Radio—The same argument if put forth for radio as seen above for TV. The key strengths of radio allow different advertisers to take advantage of this medium for consumers at the purchase stage of their decision-making.

This chapter is designed to provide the student with a general understanding of the broadcast media of television and radio. The instructor may want to direct the students’ attention to the statistics cited in the text regarding penetration of radio and television and the amount of time spent with these media. It is important for students to understand the typical characteristics of television and radio including their specific strengths and limitations, the role they play as advertising media vehicles, how television and radio time is purchased and how audiences are measured and evaluated for each medium. An interesting and informative website that you may want to visit is ThinkTV. The nature of television as an advertising medium continues to change, especially with the evolution of the Internet. The instructor should encourage the student to explore these changes and consider their impact on advertising in terms of not only media planning, but also creative strategy and sales promotional programs. Radio is a viable media option for national as well as local advertisers. Examples of the creative and effective use of radio are readily available just by spending some time listening to the medium. There are several interesting developments in radio that should be discussed including the growing popularity of talk radio and webcasts of radio stations. Internet distribution of radio is another avenue to pursue. Vignette 1. What is your impression of brands using this form of TV sponsorship and advertising with branded editorial content? This vignette illustrates how major brands use TV sponsorship and branded editorial TV content instead of regular TV ads during commercial breaks. Instructors could review the reasons why each brand preferred the chosen approach in terms of the attainment of brand communication objectives. The examples could spark interesting discussion on whether these options are more persuasive compared to regular TV ads, or whether the persuasion is worth the extra costs. Instructors could follow up with a discussion on what the brands could do to continue the campaign. IMC Perspective 11-1 1. Identify which TV strengths are associated with each of the brand illustrations? These examples illustrate TV’s strengths with respect to processing an ad message. Clever creatives attract attention and generate strong cognitive and emotional responses, with varying degrees of involvement across the creative themes. The examples also show how varying styles of advertising are possible with TV to achieve communication effects such as building awareness and strengthening a brand’s positioning. IMC Perspective 11-2 1. Which issue appears to be the most contentious between TV advertising buyers and sellers? Most students are unaware of simultaneous substitution, and NFL fans will support the decisions and not really care about Bell’s challenge and criticism. For now, one will conclude that this is a testcase to see what will occur. The end of simultaneous substation is a long way off, but under the current chair, the CRTC became more consumer friendly and may investigate other tests to see the impact on the advertising industry. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-114

IMC Perspective 11-3 1. What future direction do you see for radio based on these three trends? Students might observe that rationalization of the radio industry is occurring and that the potential for complete networks is possible in the future. The motivation for this would be economies of scale for the major owners who develop multi-media ad packages for clients that span all three major media, as well as digital possibilities. It is also possible that students might surmise that there may be fewer radio stations in each city, much like the reduction in newspaper publications. Answers to Review Questions 1. “Television is a mass medium that offers little selectivity to advertisers.” Do you agree with this statement? What are some of the ways selectivity can be achieved through TV advertising? For a few decades television functioned as a mass medium. However, some selectivity has always been available due to variations in program content, broadcast time and geographic areas. For example, Saturday morning cartoon shows appeal primarily to children while males primarily watch weekend sports programs. Geographic selectivity is possible through local spot ads in specific markets. With the growth of cable TV television has become less of a mass medium. The major networks now account for less of the prime time viewing audience and the market has become very fragmented. The selectivity of TV has increased significantly as advertisers can reach groups with specific interests such as sports, news, music, the arts, or business on cable channels. There is even greater segmentation within these television programming categories. For example, the Golf Channel is a new cable network devoted entirely to sport. 2. Discuss the strengths of television as an advertising medium and the importance of these factors to major national advertisers and to smaller local companies. Television has often been described as the ideal advertising medium because of its advantages. These include the opportunity TV offers for developing creative and imaginative messages with high impact; its wide coverage and ability to reach large audiences in a cost-effective manner; the captive nature of the TV viewing audience which usually results in attention to commercials; and the selectivity and flexibility television offers for reaching various types of target audiences, particularly with the growth of cable television. These factors are important to major advertisers such as automobile companies or packaged goods marketers. These companies are trying to reach mass audiences with their advertising messages and television is an excellent media vehicle for doing this. However, they can also take advantage of the selectivity TV offers through programs or cable channels to reach more targeted audiences. Automobile companies and packaged goods marketers also rely heavily on the creativity and impact that is possible through TV commercials. These companies use the sight, sound and visuals offered through television to create high impact ads, develop images for their brands, and develop emotional or entertaining appeals. Television advertising can be particularly valuable for creating emotional or entertaining appeals that help make a low involvement product more exciting or interesting. Of course, there are limitations to television as an advertising medium, even for major advertisers with large budgets. Television can be an expensive medium for national advertisers and production costs for high quality commercials are also high. The viewing audience for television programs is becoming increasingly fragmented with the increase in the number of channels available to viewers. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-115

Clutter also is a problem with numerous minutes per hour of commercials. The increase in the number of homes with digital video recorders is not yet a major problem but is likely to be so soon. For smaller local companies, television has become a more viable medium in recent years. Local companies such as retailers, car dealers, restaurants and other merchants are spending a greater portion of their media budget on TV, particularly on local cable where the rates are low, and they can target a specific market segment. Being able to use TV allows them to take advantage of the creative power of television. However, local companies also face the same problems as national advertisers such as audience fragmentation and competition from other media. Local companies also often lack the budget to produce high quality TV commercials which can limit the effectiveness of the commercials they run on television. 3. Discuss the methods used to radio audiences. Do you think that the measurement methods being used for each are producing reliable and valid estimates of the viewing audiences? National network viewing audiences are measured by Numeris. Its methodology uses a diary method that requires respondents to record their viewing at 15-minute intervals. Demographic information is collected for each respondent so that viewership by age, income, occupation, education, and geographic location is estimated. While Numeris receives back 40% of completed diaries, some are not filled out correctly and this may affect reliability. Numeris implemented a people meter program in major markets to overcome the measurement deficiencies associated with diaries. There is debate over the reliability of audience measures. The measurement of television viewing audiences is difficult, and some variability must be accepted. However, since these measures are used to determine advertising rates, marketers want them to be as accurate as possible. The use of the diary method is likely to provide less accurate measures since there are problems with respondents not completing them regularly and/or accurately. There also are problems stemming from consumers zapping commercials and then coming back to the program after the commercial break. This means that the actual viewing audience for the commercial is not as large as expected. One way of improving measurement of local viewing audiences is greater use of the portable people meters rather than relying on the diary system. Another way is by increasing the sample size. Larger sample sizes will decrease sampling error and provide representation of demographic segments. 4. What are the strengths and limitations of advertising on radio? What types of advertisers are most likely to use radio? Advantages of advertising on radio include its low production, absolute and relative costs. This allows advertisers the opportunity to build more reach and frequency into their media schedules. Another major advantage of radio is the high degree of audience selectivity available through program formats and geographic coverage. Radio is also a flexible medium with truly short closing periods for running a spot and offers the potential for mental imagery in the creation of a commercial. Radio stations also offer valuable merchandising assistance and support to advertisers. Disadvantages of radio include creative limitations due to the absence of a visual image, a high level of audience fragmentation because of the large number of stations, chaotic buying procedures for purchasing radio time, limited amount of research data on radio audiences and limited listener attention (particularly in cars where station changing occurs frequently or where commuter are Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-116

talking on cellular telephones). Radio is most likely to be used by local advertisers such as retailers. However, radio has also become a popular medium for national advertisers to extend their reach and frequency. 5. How can TV best be used to work with social media? TV ads can direct viewers to the social media vehicle naturally with their brand at the conclusion of the ad for an extended message. Any other IMC program that may be advertised on TV can be featured (e.g., contest, cause-related activity) and the viewer directed to the social media vehicle for the execution of the sales promotion or request for involvement with the cause. An interactive scenario could be possible where one TV ad invites Twitter comments, and then a subsequent TV ad 30 minutes later could be incorporated with the Twitter messages. Of course, any content seen from any social media vehicle can be the essence of a TV message. Students should be encouraged to think creatively, brainstorming for new ideas or recalling examples they have experienced. Answers to Review Questions 1. Watch a show on TV and make notes on what ads are shown. Find the equivalent show on the network’s website and make notes on what ads are shown. What similarities and differences do you notice?

This should be an interesting short assignment that can be the basis for some interesting class discussion. Students should pick TV shows during non-prime time dayparts (e.g., early morning, afternoon, late fringe) and list the products and services advertised and analyze the type of consumers these advertisers are targeting. Similar time periods and questions can be done for online shows and ads to see if there is any difference. 2. Watch TV or listen to the radio and make note of whether the ad directs the receiver to any aspect of digital media (e.g., social network).

This task represents another perspective of question 5 from both sections of questions. The contribution of each media assisting one another for overall communication effects is one of the most exciting aspects of new media. Students should try to classify whether the usage is straight advertising messages of the brand or whether the media is used in the execution of other IMC programs. 3. Listen to the radio and make notes on what ads are aired. What similarities and differences do you notice in comparison to TV advertising?

This is another comparison task to allow students to observe that ads on the radio will be for products that do not require a visual as much to achieve communication effects. Alternatively, the ads will support the visual media of the brand to gain additional frequency at a lower cost and to encourage purchase intention with reminder messages. Another feature is to encourage students to experience radio messages as they are gravitating away from such media. 4. Listen to a radio station and pay attention to the ads to assess whether any overcome the limitation of a lack of creativity for emotional responses? Imagery transfer refers to a technique whereby the images of a TV commercial are implanted into a radio spot. This can be done by establishing the video image of a TV commercial and then using the Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-117

audio portion as the basis for the radio message so that consumers hearing the radio spot will make the connection to the television ad. Coordination of radio and television commercials is often done by national advertisers. Students should be encouraged to find and evaluate current examples of campaigns using image transfer techniques. 5. How can radio best be used to work with social media? Similar ideas found in question 5 of the other set of questions are quite logical here. Again, students should be encouraged to think of new ideas. Instructors could augment the question to focus on a specific brand if they like to make the exercise more applicable to an identifiable context. Additional Discussion Questions (not in text) A. Analyze reasons for the boom in televised sports programming. How can marketers capitalize on the growth of sports programming in developing IMC programs? The growth in sports programming is due to a number of factors. People have a tremendous interest in sports and are watching sporting events, sports news shows and other types of sports-related programming more than ever. The major broadcast and cable networks have also increased their sports programming because televised sporting events attract free-spending young men, who constitute an important market segment for advertisers. Media companies are improving the quality of sports programming, which is helping attract more viewers. Marketers are capitalizing on the growth in sports programming primarily by building integrated marketing communication programs that center around event sponsorships. Two-thirds of the monies spent on event sponsorship go to sporting events. Sports such as auto racing, golf, tennis, skiing, beach volleyball and others are attracting corporate sponsorships. Marketers are recognizing they can build integrated marketing programs around sporting events that include television advertising, sales promotion, publicity/ public relations, and even interactive media. B.

Discuss the methods used to measure network television viewing audiences and local audiences. Do you think that the measurement methods being used for each are producing reliable and valid estimates of the viewing audiences? How might they be improved? National network viewing audiences are measured by Numeris with the portable people meter that receives a signal from media once the wearer is in proximity. Numeris uses a diary method that requires respondents to record their viewing at 15-minute intervals in smaller markets. Demographic information is collected for each respondent so that viewership by age, income, occupation, education, and geographic location can be estimated. While Numeris receives back 40% of completed diaries, some are not filled out correctly and this may affect reliability. Numeris is implementing a people meter program to overcome some of the measurement deficiencies associated with diaries. There is, of course, a considerable amount of debate over the reliability of audience measures. The measurement of television viewing audiences is difficult, and some variability must be accepted. However, since these measures are used to determine advertising rates, marketers want them to be as accurate as possible. The use of the diary method is likely to provide less accurate measures since there are problems with diary households not filling them out regularly and/or accurately. There also are problems stemming from the fact that consumers are zapping commercials and then coming Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-118

back to the program after the commercial break. This means that the actual viewing audience for the commercial is not as large as that for the program. One way of improving measurement of local viewing audiences is greater use of the portable people meters rather than relying on the diary system. Another way is by increasing the sample size to decrease sampling error and provide better representation of specific demographic segments. C. Discuss the factors that media buyers should take into consideration when buying advertising time on radio. First they must decide whether they want to make a network or spot buy. National advertisers such as automobile companies or major business-to-business marketers are likely to purchase time on one of the radio networks since they are trying to reach a national audience. However, because of the limited geographic coverage of Canadian radio networks and their low ratings, they do not generate remarkably high reach. Companies who are interested in buying time in certain geographic markets and local companies such as retailers will be the major purchasers of radio time on local stations. A second major factor to consider is the audience that can be reached through different radio stations. Radio allows companies to focus their advertising on certain demographic and lifestyle groups. Radio formats vary in popularity among different age groups. Radio stations also can appeal to listeners with specialized interests through programming that focuses on specific topics such as news, sports, finance and investments, computers, and cars. Cost factors are also taken into consideration when buying radio time. As with any other type of media, media planners consider both the absolute and relative cost of advertising time on radio. Radio stations promote their ability to reach specific target audiences, which increases the efficiency of an advertiser’s budget. D. Explain what is meant by zipping and zapping and how they affect television viewing behaviour. Discuss some of the ways advertisers can deal with the zapping problem. Zipping refers to the practice of fast forwarding through commercials during the playback of a program recorded on a PVR. Zapping refers to the use of a remote control to change channels and switch away from commercials during a break. The networks use a variety of tactics to hold viewers’ attention during commercial breaks such as showing previews of upcoming programs or short closing scenes at the end of a program. The ultimate answer to zap-proofing commercials, however, is to produce creative and meaningful spots that will attract and hold the attention of TV viewers. Techniques might help do this include the use of celebrities, humorous appeals, or unique executions. Students should be asked to take note of any commercials that catch their attention and that they like and discuss why they might watch the ad rather than switching channels. IMC Exercise There are advantages to advertising on specialty channels including the opportunity of reaching a very specialized market and greater flexibility in the type of commercials that can be used. Select a popular specialty channel. Analyze several of the different programs and the types of companies who advertise on these shows. Discuss the types of commercials used by the advertisers on these programs with respect to factors such as creative style, objectives, length, and format. Do the commercials appear to differ from those found on the major networks?

IMC Comprehensive Project Students should analyze how the broadcast media of television and radio might be used as part of the media plan for their project. The specific assignment is as follows: IMC Project Assignment for Chapter 11 Analyze the role of television and radio in the media plan for your product or service. Your analysis should focus on how TV and/or radio can be used to reach the target audience and help achieve your media objectives. What are the advantages of using TV and/or radio? What percentage of your media budget will be devoted to broadcast media? Do you plan to use both network and cable programs as part of your TV media schedule? What specific network and cable programs will be used in your media schedule and why? Discuss how radio might be used as part of your media plan.

CHAPTER 12: PRINT MEDIA INSTRUCTOR’S MANUAL Chapter Overview This chapter examines the two types of print—magazines and newspapers. Both are high-involvement media which allow the presentation of detailed information that is processed at the reader’s own pace. The characteristics of each media are examined including the types of magazines and newspapers and their strengths and limitations as advertising media. For both media, attention is given to audience measurement, their rate structures, and the purchase of advertising space. The chapter concludes with an application of magazines and newspapers for strategic IMC decision. Magazines are a highly specialized medium that reaches specific target audiences in both the consumer and business markets. Newspapers are important to local advertisers and retailers to encourage shoppers to visit their store locations. Advertising revenue is extremely important to magazines and newspapers as few could survive without it, however both face difficulty of losing significant advertising revenue to digital alternatives. Learning Objectives 1. Identify the different types of magazines available for advertising, how circulation and readership levels are determined, how audience size and its characteristics are measured, and the factors that influence advertising rates. 2. Evaluate the strengths and limitations of magazines as an advertising medium. 3. Identify the types of newspapers offered for advertising, how circulation and readership levels are determined, how audience size and its characteristics are measured, and how advertising rates are determined. 4. Evaluate the strengths and limitations of newspapers as an advertising medium. 5. Apply the media knowledge of magazines and newspapers for strategic IMC decisions. Chapter and Lecture Outline I.

MAGAZINES

Magazines serve the educational, informational, and entertainment needs and interests of a wide range of readers in both the consumer and business markets and are targeted to specific types of audiences. A.

Classifications of Magazines—a useful way of classifying magazines is provided by Canadian Advertising Rates and Data (CARD) which divides the publications into four broad categories based on the audience to which they are directed. 1. Consumer magazines—are bought by consumers for information and/or entertainment. CARD classifies domestic consumer magazines into topics such as general interest, sports, travel, and women. Consumer magazines represent most advertising revenue. 2. Business publications—are magazines or trade journals published for specific businesses, industries, or occupations. CARD’s major categories of business publications include those Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-121

directed to specific professional groups, industrial magazines directed to manufacturing and production industries, trade magazines, and general-business publications. 3

Farm publications—a major CARD category consists of magazines directed at farmers, an extension of business publications.

4. Ethnic Publications—growth of cultures in Canada has spurred publications in other languages. Some are large and earn reasonable advertising revenue; however, most are early in their development and offer limited options to communicate with less overall quality. B.

Circulation and Readership—two of the most important considerations in deciding whether to utilize a magazine in the media plan are the size and characteristics of the audience reached by the publication. Important considerations include the publication’s circulation and readership. 1. Circulation—circulation figures represent the number of individuals who receive a publication, either through subscription, store purchase or controlled circulation. The number of copies distributed to original subscribers or purchasers is known as primary circulation and is used as the basis for the magazine’s rate structure. Publications base their rates on guaranteed circulation and provide rebates if the number of delivered magazines falls below the guarantee. Most major publications are audited by the Alliance for Audited Media (AAM). 2. Readership—in addition to primary circulation figures, advertisers may be interested in the number of people that a publication reaches because of secondary or pass-along readership. The total audience or readership of a magazine can be determined by taking the readers per copy and multiplying this figure by the circulation of an average issue. Magazines Canada along with Vividata provide information about readership levels and audience characteristics.

Advertising Rates—while magazine rates are primarily a function of the publication’s circulation, rates will vary in response to other variables including size of the ad, position, number of colours, particular editions chosen (geographic, demographic), any special mechanical or production requirements, the number and frequency of insertions and whether the circulation is controlled (free) or paid. Advertising space is sold based on space units such as full page, half page and quarter page. The chapter identifies that rates are available for both print and digital editions. Some digital publicans charge the same as the print version with a cost per page. Other digital publications are more like websites and charge based on a CPM basis.

II.

EVALUATING MAGAZINES

Strengths of Magazines 1. Target audience selectivity—magazines are the most selective of all media except direct mail. Most magazines are published for special interest groups, activities, or obvious segments that marketers use such as demographics. 2. Geographic coverage—national, regional and city coverage is possible with appropriate use of some magazine titles. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-122

3. Control for selective exposure and attention—magazines are purchased because the information they contain interests the reader, and ads provide additional information that may be of value in making a purchase decision. Consumers consider magazines to be one of a few primary sources of information for a variety of products. 4. Creativity for emotional and cognitive responses—magazines are printed on high-quality paper stock and use printing processes that provide excellent reproduction in black and white or colour. These production qualities offer opportunities for advertisers to effectively portray their product. Magazines offer special options that enhance the creative appeal of the ad and increase attention and readership. Examples include gatefolds, bleed pages, inserts, pop-ups, and creative space buys. 5. Amount of processing time and reader involvement—magazines are often kept for reference and/or read over several days. One benefit of the longer life of magazines is that reading occurs at a less hurried pace and there is more opportunity to examine ads in considerable detail thereby increasing the amount of processing time compared to broadcast media. 6. Media image—companies whose products rely heavily on perceived quality, reputation, and/or image often buy space in prestigious publications with high-quality editorial content whose consumers have a high level of interest in the advertising pages. B.

Limitations of Magazines 1. Target audience coverage—magazines typically do not offer very high circulation rates so even the best of magazines can only reach a smaller portion of its target audience relative to other media, and especially the main other print media, newspaper. 2. Scheduling Flexibility—most major publications have a 30- to a 90-day lead time, which means space must be purchased and the ad must be prepared well in advance of the actual publication date. 3. Reach and frequency—the percentage of adults reading any individual publication tends to be much smaller, so magazines have a thin penetration of households. Thus, companies who want to reach mass markets must buy space in a number of magazines. 4. Absolute cost and relative cost—the absolute cost of advertising in large mass-circulation magazines like MacLean's can be expensive, particularly for popular positions such as back covers. The selectivity strength of magazines with smaller readerships provides more expensive CPM compared to other media. 5. Clutter—this is something of a paradox for magazines. The more successful a magazine becomes, the more advertising pages it attracts, which leads to greater clutter.

III

NEWSPAPERS

Newspapers are the second major form of print media and represent the largest of all advertising media in terms of total advertising volume. Newspapers are an especially important advertising medium to local advertisers, and to national advertisers who seek a broad audience. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-123

Classifications—daily publications serving a local community are prevalent, however, other types of newspapers are valuable to advertisers. Classifications of newspapers include: 1. Daily newspapers—published each weekday and found in larger cities and towns across the country. In 2021, there were seventy-four daily newspapers in Canada. 2. Community newspapers—most community newspapers originate in small towns or suburbs where the volume of news and advertising is not adequate to support a daily paper. They appeal primarily to local advertisers because of their limited geographic focus. 3. National newspapers—national newspapers in Canada include The National Post and The Globe and Mail. They appeal primarily to national advertisers and to regional advertisers that use specific geographic editions of these papers. 4. Internet newspapers—the above newspapers offer on-line versions of their newspapers and are experimenting with varying advertising approaches. 5. Special-audience newspapers—there are a variety of papers that offer specialized editorial content and are published for specific groups. Strategy Magazine is an example of a special audience newspaper as are college newspapers. 6. Newspaper supplements—although not a category of newspapers per se, papers also include magazine type supplements. An example is The Globe and Mail’s Report on Business which is published monthly.

Types of Newspaper Advertising—advertising in newspapers has categories including: 1. Display Advertising—display ads are found throughout the paper and use illustrations, headlines, white space, and other visuals in addition to copy text. Display ads are further classified as local or national/general advertising. Local advertising refers to ads placed by local advertisers targeted at the market area served by the newspaper. National or general advertising refers to newspaper display advertising done by marketers of branded products sold nationally or regionally. 2. Classified Advertising—classified ads are those arranged under subheads according to the product, service, or offering being advertised and run in the classified section of the newspaper. Major categories include employment, real estate, and automotive. 3. Special ads—special ads in newspapers include government and financial reports and notices and public notices. Preprinted inserts do not appear in the paper itself but are printed by the advertiser and then distributed with the newspaper. These include circulars, catalogs, brochures, and free-standing inserts (FSIs) which are popular for distributing coupons. 4. Sponsorship Ads—these types of ads look exactly as newspaper content which encourages readership, but somewhere on the page there is a message indicating sponsorship or similar word, so that the reader understands that it is a paid message. Newspapers offer production services to advertisers and their agencies to facilitate this placement.

5. Preprinted Inserts—represent decent advertising revenue for newspapers and a good option for advertisers to deliver a colourful message on good quality stock paper. 6. Digital Ads—digital versions of newspapers attract advertisers who want to reach those reading this form of news. Interestingly, newspapers offer video ads, something they never did in the past owing to their print history. Combined with display ads, this type of news publication offers advertisers a multi-media exposure in one journalistic outlet. C.

Newspaper Circulation and Readership—media planners must understand the size and characteristics of the audience reached by a newspaper 1. Circulation – the basic source of audience information comes from the circulation figures in CARD. The Alliance for Audited Media (AAM) verifies circulation figures for newspapers as shown in the magazine section. The Canadian Community Newspapers Association (CCNA). 2. Readership –Data on newspaper readership characteristics is available from Newspapers Canada and Vividata.

Newspaper Advertising Rates—advertising space in newspapers is sold by the agate line and column width. Most newspapers offer volume discounts (e.g., open-rate structure). There are additional charges for the use of colour and for preferred page and section positions.

IV.

EVALUATING NEWSPAPERS

Strengths of Newspapers 1. Target audience coverage—newspapers permit extensive target audience coverage with its readership. The resulting weaker selectivity is offset by placement in appropriate sections. 2. Geographic coverage—advertisers vary their coverage by choosing a paper or combination of papers that reaches the areas with the greatest sales potential. Major newspapers offer advertisers geographic or zone editions within their market. 3. Scheduling flexibility—newspapers are flexible in terms of requirement for producing and running the ads and from the creative options they make available to advertisers. 4. Reach and frequency—in most areas, 60 percent or more of households read a daily newspaper, and the reach figure may exceed 70 percent among households with higher incomes and education levels. 5. Absolute cost and relative cost—newspapers allow large and small advertisers to find the most appropriately sized ad to fit their overall advertising budget. 6. Amount of processing time and reader involvement —an important feature of newspapers is consumers’ level of acceptance and involvement with the paper, including the ads it contains. Consumers are generally very familiar with the sections of the newspaper and knowledgeable about the types of ads they contain. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-125

7. Creativity for cognitive responses—extensive long-copy appeals are possible for make for more thoughtful and elaborate processing of informational messages. 8. Media Image—consumers rely on newspapers as a trusted source of information and therefore carry a significant source effect as a legitimate media. B.

Limitations of Newspapers 1. Target audience selectivity—while newspapers offer advertisers geographic selectivity, they are not a selective medium in terms of demographics or lifestyle characteristics. The only exception to this is the sections that are available in most newspapers. 2. Control for selective exposure and attention—because a newspaper is kept for less than a day, an ad is unlikely to have any impact beyond the day of publication and repeat exposure is unlikely. 3. Creativity for emotional responses—the course paper used for newspapers, the absence of extensive colour, and the lack of time papers have available to achieve high-quality reproduction limits the quality of most newspaper ads. 4. Clutter—because a high percentage of the average Canadian daily newspaper is devoted to advertising, the advertiser’s message must compete with numerous other ads for consumers’ attention and interest.

IMC PLANNING: STRATEGIC USE OF PRINT MEDIA

Magazines—The points raised reinforce the structure of Figure 5-5 where each media is related to the consumer decision-making process and communication objectives. The promotional planner constructs the message in newspaper media to achieve varying degrees of the communication objectives options described in Chapter 5.

Newspaper—The same argument if put forth for newspaper as seen above for magazines. The key strengths of newspapers allow different advertisers to take advantage of this media for consumers at the purchase stage of their decision-making.

Teaching Suggestions This chapter provides a general understanding of the two major types of print media, magazines, and newspapers. It is important for students to understand the general characteristics of magazines and newspapers including the different types or classifications of each medium, their specific strengths and limitations as advertising media, how readership is measured, and how rates are determined, and advertising space is purchased. The instructor should call students’ attention to the wide variety of magazines available and their ability to reach every consumer interest, lifestyle, and activity as well as most businesses. Discussion could transition towards how aspects of digital media offer a media substitute for magazines, and whether the demise of magazines could change in future like vinyl records. Regarding newspapers, it is important to stress their importance as an advertising medium for local advertisers and discuss how national advertisers might be encouraged to allocate more of their budgets Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-126

to newspapers. Investigating how students consume news physically and digitally could offer insights on the evolution of this type of advertising. The implications of this for advertisers can be discussed. Vignette 1. What creative strategy and creative tactics are effectively used in these print media award winners? This question highlights the interplay between creative and media. While text material must be presented in some kind of order, it is challenging for students to see the links between creative material in chapters 7 and 8 with the media placement in chapters 11, 12 and 13. The Milk-Bone and OLG examples take advantage of the imagery capability of print media to communicate humour and experiences, respectively. The Farnham example illustrates how more involving messages are communicated with print media. This example also reinforces the ad divergence point of Chapter 6. IMC Perspective 12-1 1. How is the experience of reading a print magazine similar to or different from a digital version of the same title? This question continues a line of related questions in other perspectives to generate discussion about how the processing and communication effects may be similar or dis-similar with new media. It also raises the idea of whether an online version of a magazine is really a magazine. In fact, it is a website with a magazine brand name! The interaction is much different even though the content is identical. Moreover, the placement and type of ads are the same, but different as well. All of this suggests that the discussion of media experience is one that students should be exposed towards. IMC Perspective 12-2 1. Why are digital newspapers a stronger or weaker alternative as an advertising medium compared to other digital alternatives? The perspective outlines the key advantage of newspapers over blogs in that there is reliable and credible authenticity of the information content due to the existence of its history of journalism and of an editorial board that questions and reviews the journalists work. In fact, the article highlights the importance of newspapers as a resource for bloggers. While there are no doubt credible bloggers, the view that all bloggers are superior or overtaking newspapers is not a view shared by all. This perspective calls into question the editorial content which an advertiser would want to be associated with and suggests that newspapers retain their credibility still. Answers to Review Questions 1. Discuss how circulation figures are used in evaluating magazines as part of a media plan and setting advertising rates. Circulation figures represent the number of individuals that receive a publication, either through subscription or store/newsstand purchase. Total audience or readership refers to the total number of individuals who read a magazine or newspaper and is determined by taking the readers per copy and multiplying this figure by the circulation of the average issue. Magazines use circulation figures and readership estimates to set their advertising rates. The greater the number of readers the Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-127

publication can deliver, the more than can charge for advertising space. Media buyers prefer circulation figures of a publication in making their purchases since they are more verifiable. Total audience or readership figures rely on estimates of pass-along readership which occurs when individuals other than the primary subscriber read the publication. Media buyers attach greater value to the primary in-home reader versus the out-of-home or pass-on reader as the former spends more time with the publication, picks it up more often and is thus more likely to be attentive and responsive to advertising. 2. Discuss the strengths and limitations of magazines as an advertising medium. How do magazines differ from television and radio as advertising media? There are advantages of magazines as an advertising medium. These include their selectivity or ability to reach specific target audiences, their reproduction quality, creative flexibility in terms of the type, size and placement of advertising material, their permanence or long-life span, the prestige associated with advertising in attractive publications, consumer receptivity to and involvement with magazine advertising, and the special publication services offered. Disadvantages or limitations of magazine advertising include the high absolute costs of advertising, the limited reach and frequency (particularly for individual publications) the long lead time often required for placing an ad, and the problem of advertising clutter and competition among the ads for the readers’ attention. Magazines and newspapers are an important advertising media in an IMC program. They allow the presentation of detailed information that can be processed at the receiver’s own pace whereas TV and radio are externally paced media which means the receiver cannot control the rate at which the information is processed. Magazines are more suitable than broadcast media for delivering detailed ads with a great deal of information or visuals that the reader needs time to study or examine. However, magazines are not as effective as television for reaching mass audiences and they offer advertisers the same creative options that are available through TV commercials. 3. Discuss how circulation figures are used in evaluating newspapers as part of a media plan and setting advertising rates. Circulation figures represent the number of individuals that receive a publication, either through subscription or store/newsstand purchase. Total audience or readership refers to the total number of individuals who read a magazine or newspaper and is determined by taking the readers per copy and multiplying this figure by the circulation of the average issue. Newspapers use circulation figures and readership estimates to set their advertising rates. The greater the number of readers the publication can deliver, the more than can charge for advertising space. Media buyers often prefer to use circulation figures of a publication in making their purchases since they are more verifiable. Total audience or readership figures rely on estimates of pass-along readership which occurs when individuals read the publication other than the primary subscriber or in public locations. 4. Discuss the strengths and limitations of newspapers as an advertising medium. How might the decision to use newspapers in a media plan differ for national versus local advertisers? Newspapers have advantages that make them popular among both local and national advertisers. These include their extensive penetration or market coverage, their flexibility in terms of production requirements and short closing times, the geographic or territorial selectivity of newspapers, the high level of involvement and acceptance consumers have with newspapers and the advertisements therein, and the valuable services offered. Limitations of newspapers include their poor Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-128

reproduction quality, the short life span of daily papers, their lack of selectivity with respect to demographics and lifestyle and the clutter problem that results from the vast number of ads in most papers. The decision to use newspapers in a media plan may differ for national versus local advertisers because of the rate differential that papers charge the two types of advertisers. The rates paid by national advertisers are higher than those paid by local advertisers. Thus, national advertisers may be less willing to use newspaper advertising or may try to avoid the higher rates by channeling their newspaper ads through special category plans, cooperative advertising deals with retailers, and local dealers and distributors that pay the lower local rates. 5. How do magazines and newspapers help achieve brand behavioural and communication effects? Both media are high involvement which contribute to category need, brand attitude and brand purchase intention objectives. Consumers are in a reading situation, and when attended to, the message can be especially convincing with rational arguments augmented with appropriate emotional message content. The desire of readers to experience a magazine on multiple occasions increases frequency potential which can contribute to awareness. The message content can also be designed to maximize brand exposure assisting in brand awareness as well. In short, all communication objectives can be obtained with magazines; however, the coverage is not excellent with many magazines having low readership levels. Newspapers suffer on this latter point as they are discarded daily; however, frequency can be built in with additional exposures during daily placements. Of course, the drawback of this is the additional cost versus magazines. Answers to Applied Questions 1. Explain why advertisers of products such as cosmetics or women’s clothing would choose to advertise in a publication such as Flare, Elle Canada, or Chatelaine. Women are likely to be receptive to ads for cosmetics or clothes in these publications. In fact, one might argue that one of the reasons women buy fashion magazines such as Flare, Elle Canada or Chatelaine is to see the ads. For example, clothing ads provide insight into new styles and fashions and will be of great interest to magazines’ readers. Advertisers will tolerate the high number of ads in these publications because they create a very favourable environment that includes high quality photography and artwork as well as articles that are of interest to women. 2. Select an enjoyable print ad from a magazine and apply the earlier text material. Identify the target audience, behavioural objectives, communication objectives, brand positioning strategy and the creative strategy and tactics decisions; and associate these points with the key strengths of magazines as an advertising media. This represents an assignment that the Canadian author uses. It is a good application of the material and requires the student to decide on a number of points where there is likely some debate or interpretation as to what is really going on. Of course, the brand could have had an entirely different idea on the direction and purpose of the ad, however this exercise gives the student a good opportunity to develop confidence deciding on the key concepts of this and other chapters. 3. Explain why advertisers of products such as smartphones or men’s clothing would choose to advertise in newspapers such as The Globe and Mail, Vancouver Sun, or Metro. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-129

Each of these three media vehicles offer the breadth of selection for newspaper advertising; national newspaper and city newspaper that require payment, and a city newspaper that is free. To some degree Metro is not a city newspaper since much content is not local and fits with all the cities in which it has distribution, so it may be seen as a midpoint between the other two. Each would suit men’s clothing, but distinct brands and different retailers that have corresponding fit between the readership and the target audience. Alternatively, with the widespread usage of smartphones, we could expect to see all major brands advertising in all three publications. In this case though, brands might adjust the message and image to be more fitting of the readership of each newspaper. Of course, brands in each product category may make other adjustments if there is a stronger concentration of their customers with a particular publication. 4. What differences might one conclude between national newspapers and community newspapers regarding the strengths and limitations of newspapers? Community newspapers provide excellent target audience coverage for the local market at a reasonable relative and absolute cost while national newspapers are wasted coverage for local advertisers even with regional editions that they offer. National newspapers offer stronger reproduction quality with their superior printing technology and offer a better emotional experience to influence attitudinally. Other evaluation criteria are quite similar. One might suggest that the media image is different with neither the winner as they each serve a readership niche. This might imply an advantage for certain types of advertisers, however. Students are encouraged to consider one or two other significant differences. 5. Identify how newspapers and magazines can be used for each stage of the decision-making process for automobile purchases. Ads in both media can highlight need recognition very easily with an appropriate headline to attract attention with relevant copy in the message. Newspapers might be more useful for information search and evaluation of alternatives, although one could not claim that magazines are weak in this regard since the format offers good opportunity to do comparative ads. From a purchase decision standpoint, neither might be strong, but the frequency potential with repetitive viewings in a magazine might sway this one. Post-purchase evaluations may be more influential with magazines due to the ability to capture emotionally with better visuals and stronger reproduction. Additional Discussion Question (Not In Text) A. Describe what is meant by selectivity about the purchase of advertising media and discuss some of the ways magazines provide selectivity to advertisers. Selectivity refers to the ability of an advertising media vehicle to reach a specific target audience. Magazines provide selectivity to advertisers. Most magazines are published for readers with specific interests and lifestyles or who are involved with or work in a specific profession, business, or area. Magazines also offer demographic and geographic selectivity. The editorial content of magazines appeals to specific demographic groups based on factors such as gender, income, occupation, and education. Magazines also offer demographic selectivity through special editions that are targeted at different demographic segments. Geographic selectivity is possible as magazines can make it possible for advertisers to focus on certain cities or regions. This can be done by advertising in a magazine that is targeted at a particular geographical area such as a regional or city magazine. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-130

Geographic selectivity can also be achieved in magazines by purchasing ad space in specific geographic editions of national or regional magazines. B. Choose a specific target audience that an advertiser might want to reach. Discuss how magazines and/or newspapers could be used to reach this market in a cost-effective manner. First, selectivity is an inherent advantage of magazines since they are published for special-interest groups and allow advertisers to target segments of the population that are of interest to them. In addition, magazines provide demographic and geographic selectivity through editorial content as well as through special demographic and geographic editions. Magazines also offer greater selectivity through processes such as selective binding and ink jet imaging. Readers can be targeted by postal code, metropolitan area, region, or demographics. Students should be asked to choose a product targeted at a specific market and discuss how magazines are an effective way to reach this group. They might even contact a magazine and ask for a media kit which usually provides detailed information on how the magazine can reach specific target audiences and users of various products and services. Newspapers have the advantage of offering advertisers geographic selectivity since they can reach areas or cities of specific interest to them. However, newspapers are not a selective medium in terms of demographics or lifestyle characteristics. One way advertisers can increase selectivity of newspapers is by advertising in certain sections of the paper such as the sports, food, entertainment, or business section. Within a local market area advertising in specific geographic or zone editions of a paper can enhance selectivity. Newspapers in large metropolitan areas offer zone editions so local retailers can reach readers in their trading area. Again, students might be encouraged to contact a local newspaper (even the college paper) and request a media kit or information on advertising rates. C.

If purchasing magazine advertising space for a manufacturer of snowboarding equipment, what factors should be considered? Would the selection of magazines be limited to snowboarding publications? Why or why not? In purchasing magazine space to advertise snowboarding equipment the media planner would obviously want to know what publications are best suited for reaching snowboarders and their advertising space rates. Consideration should also be given to the amount of advertising for snowboarding equipment that appears in these publications and the problem of getting the company’s ad noticed among all the competing ads. North American marketers of snowboarding equipment limit their advertising to publications that focus specifically on this market such as Snowboard since all the readers of these publications are snowboarders and there would be very little, if any, wasted circulation. Companies might also consider running ads in skiing magazines such as Ski, Skiing or Powder as readers of these publications may also be snowboarders. However, one problem of advertising in snowboarding or skiing publications is the high amount of competition from ads for other companies’ equipment which may make it difficult for the company’s ad to get noticed. Consideration also must be given to the number of snowboarders who may be viable prospects for the equipment but do not read any of the snowboarding skiing publications. To broaden its reach, the company might want to look at other magazines that reach snowboarders such as general sports publications (e.g., Sports Illustrated), outdoor magazines, or other publications that reach this age and lifestyle group. A problem the company faces in advertising in these general publications is that of wasted circulation as readers may not be snowboarders. Thus, Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-131

advertising in general sports or outdoor magazines may not be as cost-effective as the more narrowly targeted snowboarding or skiing publications. IMC Exercise Choose a specific consumer or business magazine and analyze it from an advertising perspective. If time permits you might write or call the publication to request a media kit from the publisher. Your report should include an analysis of the following: 

The target audience for the magazine in terms of both demographics and life style of its readers.

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The percentage of the magazine’s pages devoted to advertising versus editorial content. Is there a clutter problem in the magazine?

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A breakdown of the types of products and services advertised in the magazine. Why do you think these advertisers are attracted to this publication?

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An analysis of the editorial climate and mood created by the publication and how it affects who chooses to advertise in it. How might the editorial climate of the magazine affect readers processing of the advertisements?

IMC Comprehensive Project Students should analyze how magazines and newspapers might be used as part of the media plan for their project. The specific assignment is as follows: IMC Project Assignment for Chapter 12 Analyze the role of magazines and newspapers in the media plan for your product or service. Your analysis should focus on how magazines and newspapers can be used to reach the target audience and help achieve your media objectives. What percentage of your media budget will be devoted to magazines and newspapers? What class of magazines and specific publications do you plan to use and why? If you plan to use newspaper advertising what are the factors you need to consider in making effective use of this medium? You should consult a source such as Canadian Advertising Rates and Data to get rate information on the magazines or newspaper you plan to use. You might also consider contacting the publishers to request media kits for their magazines.

CHAPTER 13: OUT-OF HOME MEDIA INSTRUCTOR’S MANUAL Chapter Overview In addition to the broadcast and print mediums discussed in the two previous chapters, marketers select from a variety of out-of-home media alternatives. In addition to the familiar outdoor ads and transit ads, new out-of-home media appear in public places and point-of-purchase locations. The purpose of this chapter is to explore out-of-home media, and to discuss their strengths and limitations.

Learning Objectives 1.

Identify the options within outdoor media for developing an IMC program and audience measurement, and their strengths and limitations.

Identify the options within transit media for developing an IMC program, and their strengths and limitations.

Identify the options within place-based media for developing an IMC program, and their strengths and limitations.

Show how out-of-home media is an important element of IMC planning.

Chapter and Lecture Outline I

OUTDOOR MEDIA

Outdoor Options—outdoor media are available in a wide variety of formats including posters, backlit posters, bulletins, superboards, spectaculars, street-level posters and transit shelter posters, mobile signage. All these options feature creative opportunities as advertisers look to make a unique public impression to a large audience passing by these media on a regular basis. Most options are sold by most media companies as there is concentration in this industry.

Digital Outdoor—significant selection of digital video and digital display ad formats are available in large cities such as Toronto, Montreal, and Vancouver. Availability beyond these three is varied with modest availability in Calgary and Edmonton and minimal availability in Ottawa.

Audience Measurement—Reach and frequency are measured by the Canadian Outdoor Marketing and Measurement Bureau (COMMB). Their methodology involves using traffic circulation data from municipalities and analyzing this data with respect to the average number of people in the vehicle and the origin of the vehicle within the CMA. COMMB measurement results can be used to estimate reach and frequency levels for outdoor advertising campaigns. Instructors should provide commentary on the sophistication of the research methodology and indicate the strength of the reliability and validity of the audience data. It is easy to be skeptical regarding the quality of this data, but these organizations represent world-class standing on the confidence advertisers can have when purchasing media from these sources.

Strengths of Outdoor Media 

geographic coverage

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scheduling flexibility

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reach

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frequency

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relative cost

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control for selective exposure

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attention

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Limitations of Outdoor Media 

target audience selectivity

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target audience coverage

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absolute cost

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creativity for cognitive responses

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amount of processing time

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low involvement

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clutter

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media image

II.

TRANSIT MEDIA

Transit Options—are available and appear like outdoor options with the same ad formats, however, transit differs since the ads are oriented throughout the transportation systems of buses, taxis, commuter trains, airplanes, and subways. Five types of transit advertising exist: 

interior transit cards are placed in backlit units above the seating area in buses, streetcars, and subway cars.

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interior door cards are placed on both sides of the doors of subway/commuter trains.

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exterior posters are placed on the sides and backs of buses.

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station posters are found where people wait for public transportation stations.

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Digital video network is a system of video display screens located throughout the transit system in larger cities providing advertisers with an alternative message delivery beyond display/poster messages.

Travel between cities offers additional exposure avenues for advertising messages. Video and audio ads are placed in airplanes along with additional collateral material. B.

Strengths of Transit Media 

geographic coverage

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scheduling flexibility

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reach

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frequency

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absolute cost and relative cost

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control for selective exposure

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amount of processing time

Limitations of Transit Media 

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target audience coverage

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attention

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creativity for emotional and cognitive responses

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involvement

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clutter

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media image

III.

PLACE-BASED MEDIA

Place-Based Options—place-based media bring the message to the audience in locations among four domains: recreation, entertainment, professional, and public. This includes examples such as malls, convention centres, movie theatres, hotels, sports venues, and school campuses. Both video and print-like messages are possible in these locations presently. The intention of these messages is to influence consumers when they are shopping or in close physical proximity to shopping. The locations also function as a guide for selectivity. For example, ads in a gym locker room might focus on personal care products or related sports clothing .

VI.

Strengths of Place-Based Media 

target audience selectivity



absolute cost and relative cost



control for selective exposure



attention and involvement

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creativity for processing responses

Limitations of Place-Based Media 

target audience and geographic coverage



scheduling flexibility



reach and frequency



amount of processing time

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clutter



media image

IMC PLANNING: STRATEGIC USE OF OUT_OF_HOME MEDIA

Figure 5-5 summarized a planning approach that indicated a way to consider where each media influences the consumer decision-making process to achieve important communication objectives. OutChapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-135

of-home’s strengths suggest its ability to enhance awareness. Out-of-home media is useful for purchase intention objectives due to the time and location characteristics. Teaching Suggestions Coverage of the characteristics of the media presented can lead to interesting exchanges as to whether out-of-home media is noticed and effective. The characteristics of the various media, the strengths, and limitations, and the available sources of information can be reviewed. Instructors can tie this material back to Chapters 10 and 4 to demonstrate how and when such media might be employed. Vignette 1. Why are advertisers turning toward digital out-of-home media as part of their IMC plan? As noted in the vignette, digital billboards are much more attractive than standard billboards in terms of showing a fresh message with significantly lower production costs. Recall that one of the main reasons of advertising wear-out is a lack of change in the creative. The simple change of a message digitally allows advertisers to keep the message new and different. Mobile communication from the digital billboard provides an additional message opportunity, so the CPM for the media placement is further enhanced. If interested, the consumer is prompted to explore the brand further online (e.g., website, social media). With the penetration of phones, advertisers are looking for as new ways to entice consumers to seek information or experiences with brands electronically. This continues the opportunity of varied creative and cheaper production. IMC Perspective 13-1 1. Why are advertisers turning toward messages delivered by digital transit shelters? This perspective continues the point of out-of-home advertising moving to digital communication. The technology addition helped spur significant growth in advertising revenue for out-of-home media. While print is lagging, this and radio continue to hold their own as key components in an IMC plan for major brands. The transit example shows that the application is different; however, there is still the opportunity to use near-field communication, along with the video screens. Advertisers may see stronger use of mobile devices since people are waiting for transit and have time on their hands to follow up with Internet media. IMC Perspective 13-2 1. In what way is advertising through Cineplex effective? Cineplex offers attractive advertising formats within its media vehicles. This provides advertisers with extensive reach and frequency potential. The mood of movie-goers is positive, since it is in the entertainment field, and advertisers prefer to communicate with audiences in a positive frame. The multi-media available can help with both low and high involvement processing. Instructors can review Cineplex media kit to show students how a media company attracts and convinces advertisers to spend their money. Colourful imagery and the clear application of advertising shows how this is an important and effective option.

Answers to Review Questions 1. Explain how out-of-home ads can be creative and foster emotional responses. Why would brands use outdoor ads for this purpose? Outdoor ads use humour with clever phrases in a message that is primarily text based. In this case, the humour of the ad is consistent with the brand and reinforces the attitude of the target audience. It would be difficult to expect short text messages to have a central route to persuasion and actively contribute to significant attitude change. Alternatively, pictures with limited copy can provide reminders of consumption experiences, or reminders of television commercials. In this case, the transformational experience of television commercials is played once again the target audience’s mind allowing the processing of a television commercial when it is in fact not occurring. For an advertiser to deliver a similar kind of message experience at a lower cost, allows potentially greater ad frequency in the overall media plan. 2. Who is most influenced by exterior bus/train ads? This question encourages students to consider that transit media audiences may have distinctive segmentation variables reflected in its ridership. Students might be encouraged to do research to investigate this question. Alternatively, students may relate their own experiences to identify certain segmentation variables. Naturally, certain lifestyle or attitudinal segmentation variables would be difficult to know, so instructors can guide the discussion like which are possible. 3. Why do advertisers consider place-based media to be a good part of their media mix? Place-based media are excellent for advertisers who want to influence consumers when they are actively shopping or when they are close to the action of shopping. Advertisers are trying to simulate awareness and purchase intention with messages that are in proximity of shopping locations to maximize the response and investment of advertising dollars. 4. How do out-of-home media help achieve awareness objectives? Out-of-home media can be used to achieve communications objectives. Creating awareness is foremost since the message is not processed for long but may be seen very often. In this sense, outof-home media offer a tremendous amount of frequency so that brand name and key images may be recalled or recognized. The volume of auto and pedestrian traffic helps to reach again improving awareness levels. In short, the awareness objective is foremost for these media as they function as a constant reminder. Answers to Applied Questions 1. Find a creative outdoor ad and discuss with one of your friends what makes it creative. Students could consult COMMB to see examples if they do not readily think of any examples or when there is a dry spell in creativity. Instructors could entertain mini presentations from students as they find their examples and ask the students to explain the creative/media link. For example, some creative outdoor ads fit only this media and do not really work well in other media.

3. Travel on a bus/train to school (or elsewhere) and record all the ads that you discover on your trip. Is there a pattern or commonality among the messages?

Hopefully, students appreciate an adventure to look for unusual ads in all sorts of places. Instructors might like to explore whether students have seen ads in unique places when they might have visited other cities for enjoyment or on exchange programs for their studies. The text and Figure 13-1 can give a list for handy reference to prompt recall of different examples. If none emerges in a discussion, instructors might look to Strategy and COMMB for interesting examples to stimulate interest. 4. Explain how out-of-home media might be used as part of an IMC program. Take any of the media discussed in the chapter and explain how they might be used in an IMC program for automobiles, cellular phones, and Internet services. Out-of-home media can be used to achieve communications objectives, awareness, attitude, purchase intention/shopping. Consider the following examples: Automobile-outdoor billboards have been used by all major brands for awareness. When in the market for a new car, auto brands often place themselves in key places for demonstrations (e.g., malls). In short, auto brands typically use all forms of out-of-home. Cellular telephones- outdoor is a favorite of cell phone companies, primarily to create awareness. Cell phone ads have also appeared on transit ads and bus shelters. Internet services-These companies are also frequent users of outdoor and transit advertising for all communication purposes as their messages focus on creating awareness of the service. As you can see in each of these examples, out-of-home media is used by a variety of companies to achieve communications goals. Due to their flexibility these media are creatively used to effectively promote companies and their service offerings. Additional Discussion Questions (Not in Text) A. Discuss advantages and disadvantages associated with advertising in movie theatres. For what types of products might these media be most effective? 

There are advantages associated with these forms of advertising. First, there is the potential for a high number of exposures and for high frequency. The cost in local theatres can be low, though this is typically accompanied by a lack of creative potential. There is little or no clutter, and the Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-138

audience is more likely to be attentive (a captured audience). Recall of movie ads can be quite high and if the experience is an enjoyable one, positive effects of mood are experienced. The most viable products to advertise are consumables, and entertainment and travel related products. 

One of the primary disadvantages is that such ads may lead to dissatisfaction among consumers in that they feel the ads are intrusive. Unlike television, radio and other media, the consumer feels that they have paid a significant price to enjoy their movies and are not happy when they must watch an advertisement. Consumers express that they are paying to watch a movie, and if they wanted to watch television with all the commercials, they could have done so for free at home. A second disadvantage is that of cost—particularly with movie ads. Both absolute and relative costs are high, with the CPMs for movie advertising particularly high relative to other media.

Discuss the advantages and disadvantages of outdoor advertising. Outdoor ads are creative, more attractive, more attention getting, and in more appealing to both advertisers and viewers. More specifically, outdoor advertising has the following advantages: 

wide coverage of local markets—if the budget allows, outdoor advertising is used to cover a broad local customer base. Ads can be placed in strategic locations such as highways, bus terminals, city streets and buildings, allowing for extensive exposure.

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high levels of frequency—because purchase cycles are usually for a minimum of one month, passers-by will have the opportunity to be exposed to frequent messages.

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geographic flexibility—outdoor ads are placed in a variety of locations, potentially reaching drivers, walkers, mass transit users, throughout a number of geographic locations.

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creativity—due to recent technological advances, outdoors is a creative medium. Boards are no longer unidimensional and boring.

Outdoor also has its disadvantages:

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target audience selectivity—outdoor is not a highly effective medium for targeting specific markets. Given that locations are chosen based on the number of potential exposures, the medium is most effective when a mass market is sought.

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limited message capabilities—exposure times are short which requires simple messages.

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media image—the high frequency strength can lead to wear out if viewers see the ad repeatedly for a lengthy period.

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Absolute cost—outdoor is expensive in both an absolute and relative sense.

One of the disadvantages associated with transit advertising involves image. Discuss why this might be a problem and why advertisers might stay away from this medium as a result.

Ads that appear on buses, subway cars, benches, may suffer from image problems. A variety of reasons may contribute to this: 

the image of transit itself—people feel they would never ride a bus, are afraid of the subway and/or have a negative image of taxi drivers—this image may carry over to the advertisers themselves.

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advertisers—while ads on buses, taxis, may involve companies with well-known names and reputations, ads on benches (for example) may be sponsored by less well-known companies. The receiver may impute a lack of credibility or form a negative impression as a result.

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The low cost of the ads can also attract advertisers who could not afford to advertise elsewhere.

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appearance—weather conditions can contribute to the negative image. For example, slush and dirt on motor vehicles, dirt and fading on benches, graffiti on posters.

Problems: 

If the ad does not create a favourable impression this may carry over to the image of the product/service.

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Attributions may be made to the advertiser—as noted above “would you eat in a restaurant you saw on a subway ad?”

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The ad could be defaced beyond recognition.

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Ads on transit vehicles may go to places outside the targeted area. For example, a restaurant ad targeting urban dwellers may reach those on a cab or bus that are not likely to go into the city to eat.

IMC Exercise Stage a contest in which students bring their best example of an out-of-home ad to class (or a description of the same). The contest should be judged on the novelty as well as the potential effectiveness (as explained by the student) of the ad. IMC Comprehensive Project Include a variety of out-of-home media in your media plan. The absolute and relative costs of these should be shown and a rationale for their inclusion should be provided.

CHAPTER 14: SALES PROMOTION INSTRUCTOR’S MANUAL Chapter Overview Sales promotion is the focus of this chapter as it examines how marketers use both consumer and trade promotions to influence the purchase behaviour of consumers as well as wholesalers and retailers. The chapter discusses the scope of sales promotion and the reasons for its increasing importance. The content of a promotion plan is reviewed such as specific promotion objectives, strategic use of promotion regarding consumer franchise-building versus non-franchise-building promotions and key promotion tactics. The chapter reviews consumer and trade sales promotion techniques used by marketers. The chapter concludes with a discussion of IMC issues as they relate to sales promotion. Learning Objectives 1. Explain how sales promotion is a strategic decision in an integrated marketing communications program and examine why it is increasingly important. 2. Identify the objectives, strategy, and tactical components of a sales promotion plan. 3. Describe consumer sales promotion strategy options and evaluate the factors to consider in using them. 4. Describe trade sales promotion strategy options and evaluate the factors to consider in using them. 5. Apply key IMC issues related to sales promotion decisions. Chapter and Lecture Outline I.

SALES PROMOTION

Fully integrated marketing programs include consumer and trade promotions that are coordinated with advertising, public relations, and Internet marketing programs as well as sales force efforts. A.

Characteristics of Sales Promotion—sales promotion is a direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale. There are two important aspects to sales promotion: 

sales promotion involves an inducement that provides an extra incentive (e.g., financial, emotionally based, value oriented, or experiential) to purchase a product.



sales promotion is a volume. acceleration tool that is intended to speed up the selling process and maximize sales volume.

Types of Sales Promotion—sales promotion can be broken down into two major categories: 



Trade sales promotion—includes promotional programs designed to motivate distributors and retailers to stock and promote a manufacturer’s products.

The activities included under each sales promotional category are shown in Figure 14-1. When a promotional push strategy is used, the goal is to persuade the trade to stock, merchandise and promote a company’s products by aggressively selling and promoting to resellers. A company’s sales representatives can offer resellers special programs such as promotional allowances and cooperative advertising. Trade advertising in publications that serve the industry may also be used as part of a push strategy. When a promotional pull strategy is used, the goal is to create demand among end users that will in turn encourage retailers to carry a brand. Heavy spending on consumer advertising and sales promotion is an important part of a pull strategy. C.

Growth of Sales Promotion—The importance of sales promotion in companies’ integrated marketing communications programs have increased dramatically due to several factors: 1. Strategic Importance—sales promotion experts or agencies are part of the brand building team at the start of the planning process as all promotional professionals realize the dual importance of the communication and behavioural effects of sales promotion. 2. Reaching a Specific Target Audience—sales promotion tools are effective in reaching specific geographic, demographic, psychographic and ethnic markets. 3. Promotional sensitivity—the percentage of purchases made in conjunction with a promotional offer has increased. 4. Declining brand loyalty—consumers are less brand loyal, and purchase based on price, value, and convenience, and look for deals and will buy whatever brand is on sale. 5. Brand proliferation—sales promotion is used to encourage consumers to move from trial to repeat purchase at full price for new products. Promotions help in securing and maintaining shelf spaces for new and existing products, respectively. 6. Short-term focus—the increase in sales promotion in motivated by marketing plans and reward systems geared to short-term performance and the immediate generation of sales volume. Managers use sales promotions routinely, not only to introduce new products or defend against the competition, but also to meet quarterly/yearly sales/market share goals. 7. Accountability—companies demand to know what they are getting for their promotional expenditures. They feel that sales promotion programs are more economically accountable than advertising since they often generate a quick and easily measured jump in sales. 8. Power of retailers—recent developments have helped to transfer power from the manufacturers to the retailers. With the advent of optical checkout scanners and sophisticated in-store computer systems, retailers gained access to data concerning how quickly products turn over, which sales promotions are working, and which products make money. Retailers use this information to analyze sales of manufacturers’ products and then demand discounts and other promotional support from manufacturers of lagging brands. 9. Competition—companies are turning to sales promotion to gain or maintain a competitive advantage. A major development in recent years is the use of account-specific marketing (also referred to as co-marketing) whereby a marketer collaborates with customizes promotions for individual retailers. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-142

II.

SALES PROMOTION PLAN

Objectives of Consumer Sales Promotion—companies determine what they hope to accomplish through their promotions and set clearly defined objectives and measurable goals for their sales promotion programs. While the goal of most sales promotion activities is to induce purchase of a brand, there are different objectives the marketer might have for both new and established brands based on the material of Chapter 5. These include obtaining trial purchase, obtaining repeat purchase, increasing consumption, building brand equity.

Consumer Sales Promotion Strategy Decisions 1. Sales Promotion Strategy Options—the options identified in Figure 14-1 are important strategic choices. In making these choices it is important to make the distinction between consumer-franchise building sales promotions and non-franchise building efforts. Consumer-franchise-building promotions are designed to communicate distinctive brand attributes and contribute to the development and reinforcement of brand image and identity. Non-franchise-building promotions are designed to accelerate the purchase decision process and generate immediate increases in sales. An additional decision criterion relates to the incentive characteristic. As illustrated in Figure 14-2, the choice is based on the target audience and the intended behavioural response. Operant conditioning, a form of behavioural learning this approach, can help explain the distinct types of behavioural responses. Learning occurs because of the outcomes or consequences associated with a particular response. Reinforcement refers to a reward or favorable consequences associated with a behaviour and is an essential element of instrumental conditioning. Sales promotion rewards a consumer through the incentive. Operant conditioning concepts that are particularly relevant to sales promotion are schedules of reinforcement and shaping as shown in Figure 14-3. 2. Application across Product Lines—another strategic decision is the degree to which each sales promotion is applied to the range of sizes, varieties, models, or products. 3. Application across Geographic Markets—sales promotions can be run nationally, regionally or in select markets.

Consumer Sales Promotion Tactics Decisions—the value, timing and distribution of the sales promotion offer are key tactical decisions. 1. Value of Incentive—marketers decide on the value of the promotion in terms of discounts offered, the value of premium offers and whether non-economic incentives will be used. 2. Timing—marketers decide during which months, weeks, days and/or seasons the promotion will be run. 3. Distribution—marketers establish how the promotion will get to the consumer and how the consumer will get to the promotion.

III. CONSUMER SALES PROMOTION STRATEGY OPTIONS The consumer sales promotion techniques used by marketers should be discussed along with their strengths and limitations and how they achieve promotional objectives. A.

Sampling—involves procedures whereby consumers are given a quantity of a product for no charge to induce trial. Sampling is used as a way of introducing a new brand to the market although it is also used for established products. 1. Strengths of sampling  

Samples are an excellent way of inducing trial. Sampling allows consumers to experience a product directly and gain an appreciation for its benefits and characteristics.

2. Limitations of sampling  

The costs of sampling programs can be remarkably high. The benefits of a brand may be difficult to gauge from a sample.

3. Sampling Distribution—decisions are made concerning how sample is distributed. The method is important not only in terms of costs, but also in terms of influencing the type of consumer who receives the sample. The more widely used sampling methods include direct, mail, media, package, store, location, and event. B.

Coupons—is a voucher offering a price discount and is effective despite its longevity. 1. Strengths of coupons    

Coupons reduce the price for price sensitive consumers who are attracted to it. Coupons allow the offering of a price reduction without having to rely on retailers. Couponing can be an effective promotional device for generating trial of a new brand. Coupons can be used to encourage trial and increase consumption of established brands.

2. Limitations of coupons    

It can be difficult to estimate the coupon redemption level. Loyal users often redeem coupons targeted to attract new users of established brands. Couponing programs can be expensive. Problems of coupon mis redemption and fraud exist.

3. Coupon Distribution—Coupons are distributed in a variety of ways including media, mail, store, and Internet. C.

Premiums—is an offer of an extra item of merchandise or service either free or at a low price that is used as an incentive for purchase. 1. Strength of premiums—usually inexpensive gifts or items that are included in the product package, distributed with a purchase, or sent to consumers who make mail-in-requests along with proof of purchase. A key feature is that the gift is viewed as a valuable incentive. Secondly, reinforce the brand image and work with co-branding. Third, premiums encourage Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-144

an impulse purchase to do the nature of the first two points. Fourth, premiums work with other IMC tools very well as there is a story or meaning to associate with. Finally, premiums obtain trade support as a push since they can see the pull efforts. 2. Limitations of premiums—while the gifts are inexpensive, they are costly on a per unit basis versus other forms of exposure. One solution is to use self-liquidating premiums that require the consumer to pay some or all the cost of the premium plus handling and mailing costs. Premiums require a degree of effort in some cases where they need to send away for it. Finally, there is a risk of poor acceptance and being stuck with a worthless inventory. D.

Promotional products—are useful and/or symbolic items that are implemented in a marketing communication programs as a sales promotion or message vehicle, or a combination of both. Promotional products are like premiums but are not tied to a purchase and are viewed as a thank you or reward gift to a brand’s stakeholders. In this sense, promotional products are also seen as items given out as part of a company’s public relations activities. 1.

Strengths of promotional products      

Limitations of promotional products      

target audience selectivity and coverage creativity for cognitive responses frequency absolute cost and cost efficiency creativity for emotional responses attention, involvement, and amount of processing time.

media image clutter scheduling flexibility reach geographic coverage selective exposure

Contests and Sweepstakes—a contest is a promotion whereby consumers compete for prizes or money based on skills or ability and winners are determined by judging entries against some predetermined criteria. Contests often provide a purchase incentive by requiring proof of purchase to enter or to obtain an entry form from a dealer or advertisement. A sweepstakes is a promotion whereby winners are determined purely by chance and cannot require proof of purchase as a condition for entry. Another form of a sweepstakes is a game which also has a chance element associated with winning. 1. Strengths of contests/sweepstakes 

Contests and sweepstakes can be an effective way of getting the consumer to become involved with the brand by making the promotion product relevant.

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Contests and sweepstakes can be executed to build brand equity through the consumer franchising building characteristic.

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A contest or sweepstakes promotion may overwhelm the ad or brand and may do little to contribute to the brand franchise or image.

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There are legal problems and considerations that impact the design and administration of contests and sweepstakes.



The presence of professionals or hobbyists who submit large numbers of entries but have no interest in the product can detract from the effectiveness of contests and sweepstakes.

Refunds and Rebates—Refunds or rebates are offers to return a portion of the product purchase price after supplying some sort of proof of purchase. Consumers are responsive to refund or rebate offers, particularly as the size of the savings offer increases. 1. Strengths of Refunds/Rebates 

Refunds and rebates can be effective sales promotional tools for creating new users and for encouraging brand switching.



Refunds and rebates are often perceived as immediate savings or value even though the money is not received until the offer is redeemed and many consumers never follow through on the offer.



Refunds and rebates can allow a marketer to achieve a price reduction for much less than if a direct price deal were utilized.

2. Limitations of Refunds/Rebates



Consumers do not like the delay and effort required to redeem refund and rebate offers.



The terms of some rebate offers are inconvenient or even unrealistic.

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Consumers may have a negative perception of brands that use rebates.



Retailers do not want to become involved with the administration of rebate programs.

Bonus Packs—offer the consumer an extra amount of a product at the regular price by providing larger containers or extra units. Here are some of the strengths and limitations of bonus packs: 1. Strengths of Bonus Packs 

They provide extra value to consumers without having to get involved with things such as coupons or rebate offers.



They can be an effective maneuver against a competitor’s promotion or introduction of a new brand by loading consumers with the product and making them less susceptible to competitors’ promotional efforts.



Bonus packs often receive a favourable response from retailers.

2. Limitations of Bonus Packs 

 H.

They may appeal primarily to current users who may have purchased the brand anyway.

Price-off Deals—provide a reduction in the regular price of the brand, typically right on the package through specially marked price packs. 1. Strengths of Price-off Deals 

They are controlled by the manufacturer, which enables them to ensure that the promotional discount reaches the consumer rather than being kept by the trade.



Price-off deals usually present a readily apparent value to consumers, particularly when they have a reference price point for the brand and recognize the value of the discount.



Price-offs can provide a strong influence when point-of-purchase comparisons are made.



They can encourage consumers to buy larger sizes.

2. Limitations of Price-off Deals 

They can create pricing and inventory problems for consumers.



They may appeal primarily to regular users rather than attracting nonusers.

Event Marketing—Event marketing is a form of promotion where a company establishes specific themed activity associated with the brand. Marketers often do event marketing when sponsoring a popular activity such as a sporting event, concert, fair, or festival. It is important to make a distinction between event marketing and event sponsorships, as the two are often used interchangeably yet refer to different activities. Event sponsorships occur whereby a company develops sponsorship relations with a particular event and provides financial support in return for the right to display a brand name, logo, or advertising message and be identified as a sponsor of the event. As part of this communication, brands hold marketing events at the sponsored activity. Events are used to create experiences for consumers and to promote a product. Events allow a company’s brand to associate it with certain lifestyles and activities. Events are used to distribute samples as well as information about a marketer’s product or to let consumers use the product.

IV.

TRADE SALES PROMOTION STRATEGY OPTIONS

Objectives of Trade Sales Promotion—sale promotion programs targeted to the trade should be based on well-defined objectives and a consideration of what the marketer wants to accomplish by using trade promotions. Objectives for trade promotions include: 1. 2. 3. 4.

Obtain distribution for new products. Maintain trade support for established brands Build retail inventories Encourage retailers to display established brands.

Trade Allowances—financial inducements provided by manufacturers to wholesalers/retailers to encourage them to stock, promote, or display a manufacturer’s products. 1. Buying allowances—a deal or discount offered to resellers in the form of a price reduction on product ordered during a fixed time. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-147

2. Promotional/Display Allowances—discounts provided to retailers for performing certain promotional or merchandising activities in support of a manufacturer’s brand. 3. Slotting Allowances—special fees that retailers charge manufacturers for agreeing to handle a new product and providing a slot/position in their store to accommodate the new product. 4. Strengths of Trade Allowances—special fees that retailers charge manufacturers for agreeing to handle a new product and providing a slot/position in their store to accommodate the new product. 5. Limitations of Trade Allowances—companies are concerned over the abuse of trade allowances by wholesalers, retailers, and distributors. Marketers give retailers trade allowances with the expectation that the savings will be passed on to the consumer in the form of lower prices. However, the trade members may pocket these discounts. Two practices that are particularly bothersome are forward buying and diverting. C.

Point-Of-Purchase Displays— marketers use a variety of point-of-purchase materials including end-of-aisle displays, posters, banners, shelf cards, motion pieces, stand-up racks, and other material. Point-of-purchase displays are an important promotion because they can help a manufacturer obtain more effective in-store merchandising of their products. Products often sell better when they are on display as they are more likely to be noticed by consumers and displays also are often accompanied by price deals. 1. Strengths of Point-of-Purchase Displays—special fees that retailers charge manufacturers for agreeing to handle a new product and providing a slot/position in their store to accommodate the new product. 2. Limitations of Point-of-Purchase Displays —companies are concerned over the abuse of trade allowances by wholesalers, retailers, and distributors. Marketers give retailers trade allowances with the expectation that the savings will be passed on to the consumer in the form of lower prices. However, the trade members may pocket these discounts. Two practices that are particularly bothersome are forward buying and diverting.

Cooperative Advertising—there are three types where multiple groups share the cost of advertising. Vertical cooperative advertising is the most common type of co-op ad program used as part of a trade promotional program where the manufacturer pays for a portion of the advertising a retailer runs to promote its product and its availability in the retailer’s place of business. The limit or amount of co-op funds the manufacturer provides to the retailer is usually based on a percentage of dollar purchases made from the manufacturer. This percentage is usually around 3 to 5 percent. Horizontal cooperative advertising refers to advertising sponsored in common by a group of retailers, companies or other organizations providing products or services to a market. Ingredient sponsored cooperative advertising refers to advertising supported by a raw materials or component manufacturer to help establish end products using the company’s materials.

Contests and incentives—manufacturers use contests and special incentive programs to stimulate greater selling effort from resellers management or sales personnel. An important Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-148

target of contests or special incentives is the sales personnel of the distributors. In addition to using contests, programs targeted to sales personnel may include push money or spiffs. F.

Sales training programs—are promotional assistance for reseller sales personnel. Manufacturers provide sales training assistance to retail salespeople by having formal classes, having their sale reps work with resellers and providing sales manuals, brochures, videos, and other selling aids.

Trade shows—are a type of exhibition where manufacturers display their products to current as well as prospective buyers. Trade shows provide a major opportunity to display and demonstrate products, interact with customers, identify new prospects, gather customer and competitive information, and even write new orders. The social aspects of trade shows are also important as customers use them to entertain key customers and to develop and maintain relationships.

IMC PLANNING: STRATEGIC USE OF SALES PROMOTION

Sales promotion techniques usually work best when used with advertising. Conversely, a consumer sales promotion program can enhance the effectiveness of an ad campaign. When carefully planned and executed to work together, sales promotion can provide a synergistic effect that is much greater than the response that would be generated from either promotional mix element used alone. Proper integration of advertising and sales promotion requires the coordination of several decision areas including: A.

Budget Allocation—allocation depends on the promotional objectives of the campaign, the market. the competitive situation, and the brand’s stage in its life cycle.

Creative Themes—to integrate the advertising and sales promotion programs successfully, the theme of consumer promotions should be tied in with the advertising and positioning themes wherever possible as shown in chapter examples.

Media Support—using a promotion without prior or concurrent advertising can limit its effectiveness and risk damaging the brand’s image. Conversely, a coupon, a premium offer, or an opportunity to enter a sweepstakes or contest can enhance the effectiveness of an ad.

Brand Equity—The increasing use of sales promotion in the marketing program represents a fundamental change in strategic decisions regarding how companies market their products and services. However, the value of this increased emphasis on sales promotion has been questioned by experts. Concerns include the following. Marketers are becoming too dependent on using sales promotion to produce short-term or immediate increases in sales. Investing in sales promotion at the expense of advertising and thus not building the long-term value of the brand franchise. Brands lose their perceived value from the perspective of consumers when they are purchased because of a promotional offer. This has led to concern that the increased use of sales promotion is having a negative effect on brand equity. As noted in Chapter 1, brand equity refers to a type of intangible asset of added value or “goodwill” resulting from the favourable image or differentiation that a brand has achieved. There are examples of situations where a company’s have hurt the brand equity of their products by placing more emphasis on consumer and trade promotions than advertising. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-149

Measuring Sales Promotion Effectiveness—one framework is based on four communications goals: attention, comprehension, persuasion, and purchase. Behavioural measures include brand switching and loyalty, number of inquiries, coupon redemption and contest entries.

Teaching Suggestions This chapter examines sales promotion including the promotional activities directed at consumers as well as trade. It is suggested that this material be covered over two class periods. The first lecture provides an overview of sales promotion, reasons for the shift in marketing dollars to sales promotion and consumer sales promotion. The second lecture covers trade promotion, the coordination of sales promotion with advertising and other promotional mix elements, and the problems of sales promotion. The instructor should review the consumer and trade sales promotion techniques along with their advantages and limitations. Students should be encouraged to evaluate these techniques as strategic and tactical promotional tools and to consider the reasons why marketers use them. It is important to discuss how sales promotion is coordinated with the advertising program. Vignette 1. What is your opinion of Guru’s IMC program with its reliance on sales promotion? A review of the sales promotions indicates a broad use of consumer sales promotions and trade sales promotions, so students’ opinion should acknowledge the value of both push and pull characteristics. The variety of consumer sales promotions keeps the IMC program creatively fresh so that consumers do not experience wear-out, and it allows opportunity for different brand users to switch to Guru. Most students will find the media mix has a good fit with the sales promotion with a balance between digital and non-digital approaches. Expansion to product placement and sponsorship seem to be excellent programs to expand reach and frequency to support the sales promotions. In sum, this is a strong example of a comprehensive IMC program evolving over time. IMC Perspective 14-1 1. Why do brand managers see contests as an effective promotional tool? Contests offer significant brand enhancing capabilities. The examples cited show situations where the activity or prize is significantly related to the brand. Thus, the sales promotion and brand message are simultaneously communicated provide both communication and behavioural effects. Moreover, the excitement of message reception of both the brand and the promotion provides extensive positive processing. Instructors are encouraged to apply the communication model to the sales promotions so students can understand why brands see tremendous success with contests. IMC Perspective 14-2 1. What are the strengths of these promotions in terms of achieving behavioural and communication objectives? Tic Tac’s execution of a sampling program appears unique and would get noticed (i.e., attention). It offers an unexpected and unique experience that reinforces the social need for fresh breath when one is traveling and in proximity to another. Presumably this would lead to reasonably strong cognitive and emotional responses and be memorable (i.e., awareness) and leave people with a Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-150

positive impression (i.e., attitude). A similar argument could be made for Dr. Oetker pizza. In contrast, the execution for Tim Horton’s coffee is not strong experientially with its in-store execution, possibly leading to weaker processing and communication effects. In the middle is Tre Stella with its Voilà execution and familiar in-store presentation. The McCain example show significant creativity with unusual delivery and social media tie-in, and is likely the winner on all fronts. Answers to Review Questions 1. What are the differences between consumer and trade sales promotions? Discuss the role of each firm’s IMC program. Consumer sale promotions are directed at the consumers who purchase goods and services and are designed to provide them with an extra incentive or inducement to buy the marketer’s brand. They are part of a promotional “pull strategy” and designed to help create demand for a brand at the endconsumer level. Trade promotions are targeted to the wholesalers, distributors, and retailers in the channel of distribution and are designed to encourage channel members to stock and promote the marketer’s products. Trade promotions are part of a promotional “push” strategy. Both consumer and trade promotions are a key part of a firm’s integrated marketing communications program. In a competitive market, consumers look for an extra incentive such as a coupon, bonus pack, premium, or price reduction to encourage them to choose one brand over another. Consumer promotions, along with advertising, are an important part of marketers’ “pull strategy” which creates demand for their brands. With the increasing amount of advertising clutter and purchase decisions being made in the store, marketers must do more than just advertise to gain and hold market share. Trade promotions are also important, as marketers motivate channel members to stock, display and promote their brands. Much of the power in channels of distribution has shifted to the retailer and competition as limited amounts of shelf space have intensified. Thus, marketers must focus attention and effort on “pushing” their products through the channels of distribution. Trade promotions are an important part of this strategy. 2. Discuss how sales promotion can be used as an acceleration tool to speed up the sales process and maximize sales volume. There are several ways sales promotion is used as an acceleration tool to speed up the sales process and maximize sales volume. Consumer promotion tools such as premiums, bonus packs, and priceoff deals provide an extra incentive that may motivate consumers to take more immediate action. Coupons usually have expiration dates that require consumers to use them during a specific time, which is another way of accelerating the purchase process. Marketers often use techniques such as in-store sampling programs that may be accompanied by a discount coupon and thus encourage immediate purchase. Trade promotions also accelerate the selling process with retailers. For example, retailers who take advantage of an off-invoice allowance often pass the savings on to consumers in the form of a price reduction, which encourages them to purchase the brand. Promotional allowances are given to retailers for performing certain promotional or merchandising activities such as providing special displays, running in-store promotional programs, or including the marketer’s brand in an ad. These activities will help generate sales volume and encourage immediate purchases by consumers.

3. Post-secondary educational institutions do not usually use sales promotions. Consider which ones could be used and identify the target audience in which they could be effective. The Canadian author offers a bonus pack to students during night classes, students can receive a free hour of education after the 7:00 to 10:00 class. Surprisingly, no student, including very loyal ones, has accepted this promotional offer despite economic theory saying more is better! Another sales promotion could be discounts on tuition for low-enrolment courses or for summer courses when there is less demand, which would even out demand over the twelve-month period. The implementation of discounts could be quite problematic for universities to justify, but an interesting consideration nonetheless for price sensitive students. Universities could offer more promotional products to reinforce the brand image, why not give every student a binder and pen with the university logo upon graduation to remind them to donate Instructors could have some fun with this exercise brainstorming what the effects would be how promotional incentives could work. 4. Explain why a brand might devote more of its budget to trade sales promotions than to consumer sales promotions. Trade promotions are similar in that they attempt to influence behaviour (trial, repeat buying, or action) via an incentive. The incentives are similar with an emphasis on financials, assistance, or experiences. Since in both cases the audience makes a final decision by evaluating the pros and cons of the offer, it is not too surprising to see that there is a strong degree of similarity. The communication effects from the presentation are relevant in terms of awareness and attitude, so overall the strategy and tactics of the decisions have more in common than something dissimilar. 5. Explain why it is important for sales promotion to contribute to brand equity. In what circumstances will brand equity enhancement not be a priority? Brand awareness and brand attitude are a key part of brand equity, and the opportunity for communication beyond the promotion offer is a recent trend in the development and implementation of sales promotions. Coupon offers regularly include a regular print ad. In fact, most promotional offers are combined with advertising or some other IMC tool, it is difficult to find a promotional offer that does not provide enhanced communication that builds brand equity. Given these points, it is hard to imagine very many circumstances where brand equity enhancement would not be a priority, especially given the importance of word-of-mouth communication. So even in transactional situations where there is little expectation of a continued relationship with the brand and the customer, promotional offers should still attempt to build brand equity. Answers to Applied Questions 1. Explain how the consumer sales promotions identified in Figure 14-1 can be executed with Internet media. Electronic samples and premiums can easily and obviously be delivered; and physical samples and premiums can be ordered on company websites or social media locations. Coupons can be disseminated virtually anywhere on the internet for printing at home. It seems like all contests/sweepstakes entries occur online these days as entry software is commonplace. Submitting rebate information can be possible as consumers can enter the data and email physical evidence of proof of purchase, however companies may have concerns of fraudulent claims in this regard and continue to expect mailed in evidence. Bonus packs are an unlikely avenue for Internet delivery Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-152

unless of course the product is ordered online and delivered via mail or courier. Price-offs are the simplest to administer online since it is information based in fact occurs with dynamic pricing systems as people search for hotels, flights etc. Event marketing is a curiosity as to whether that could be executed online, but entertainment activities that are streamed appear as a possibility. Students would add to this list based on their consumption experiences, especially with this final one. 2. What are the differences between consumer-franchise-building and non-franchise-building promotions? Find an example of a promotional offer you believe contributes to the equity of a brand and explain why. Consumer-franchise-building promotions are those that are designed to communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity and image. They are designed to help build long-term brand loyalty or preference and help the marketer achieve the goal of full-price purchase. Non-franchise-building promotions are those that are designed to accelerate the purchase decision process and generate an immediate increase in sales. These promotions do little or nothing to communicate information about a brand’s unique features or benefits and contribute little, if any, to the building of brand identity and image. Students should find promotional offers that they feel are examples of each type and explain why. Examples of non-franchise building promotions are not difficult to find as price-off deals, coupons and refund offers usually fall into this category. Examples of franchise-building efforts might include a contest or sweepstakes that helps develop and strengthen a brand’s image or position or promotional programs that encourage repeat purchase. 3. Phone service providers do not offer premiums all that often. Identify good ones for different brands. Bell could send out…. Bells! – a good symbol that has been a logo for decades previously. This could manifest in a number of ways and be a fitting imagery if the brand decided to go this route. Fido could obviously send out different dogs and be a complete set of valuable collectibles. Telus has in fact handed out beany baby like plush items of the famous animals. Of course, all these premiums are the imagery of the brand in the ads and would reinforce the characters shown. 4. Consider all the trade sales promotions that a major brand like Tassimo would use and explain how they would be effective or ineffective for increasing sales of the machine and the coffee discs. All three types of trade allowances are useful; off-invoice allowances to ensure extra inventory during key selling times, promotional allowances for display information which would be critical for consumers to understand the innovative technology, and slotting allowances to ensure product acceptance in the stores since Kraft did not normally sell in household good locations. Additional dollars for point-of-sales displays would be useful for enhanced consumer communication in-store, especially during Christmas sales or other times. Cooperative advertising might be used with stores that have good flyers like Hudson’s Bay. Certainly, sales training would be useful during launch so that floor staff understood how the product worked and could offer in-store assistance to consumers. 5. Why does the Red Bull Crashed Ice event not use imagery from the advertising with the slogan “Red Bull Gives You Wings”? Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-153

The RBCI event is a good example where the same look and feel is not used across all IMC tools since there is a much different target audience for the event versus the general advertising. The Same imagery is useful when a brand is directing it messages to a common target audience. However, the lifestyle, or a different segmentation variable, may be much more relevant for RBCI compared to the general advertising. In this case the use of the drink is more for social drinking at the event in comparison to the advertising to highlight the stimulating effects of the energy drink. This suggests a different brand positioning strategy for an alternate target audience, a key concept of the planning model of the text. Additional Discussion Questions (not discussed in text) A. Discuss how advertising and sales promotion can have a synergistic effect and what is required to create this effect. Advertising and sales promotion can have a synergistic effect whereby the impact of the combination of the two promotional tools is greater than the response that would be generated if they were used independently. Proper coordination of advertising and sales promotion requires coordinating decisions regarding the allocation of the budget to each area as well as advertising and sales promotion themes, the target audience reached and the timing of various sales promotion activities. For example, by using advertising in conjunction with sales promotion for a new product, marketers can make consumers aware of the brand and its benefits and increase their responsiveness to the promotional offer. Consumers are more likely to redeem a coupon or respond to a price-off deal for a brand they are familiar with or have favorable feelings toward versus a brand they know little about. Moreover, product trial created using sale promotion techniques such as sampling or coupons are more likely to result in long-term usage of the brand when accompanied by advertising. B. What is a slotting allowance? Do you think retailers are justified in charging manufacturers slotting fees? Why or why not? A slotting allowance is a fee that must be paid to retailers to provide a “slot” or position to accommodate a new product in their stores. Retailers argue slotting fees are justified because there are costs associated with taking on a new product such as redesigning store shelves, entering the product into their computers, finding warehouse space, and informing store employees of the new product. They also argue that they are assuming some risk in taking on a new product since a high percentage of new product introductions fail. Manufacturers argue that slotting fees are not justified, as it really does not cost manufacturers that much money to take on a new product. They argue that these fees are excessive and end up going to the bottom line of the retailers. They argue that these fees are another way retailers are extracting money from manufacturers and really are a form of bribery that must be paid to get a new brand on the retailer’s shelves. An excellent discussion on the debate over slotting allowances can be found in an article by Paul N. Bloom, Gregory T. Gundlach and Joseph P. Cannon in the Journal of Marketing, Vol. 64 (April 2000) pp. 92-108. C. Discuss the advantages of cooperative advertising from the perspective of the manufacturer and the retailer.

Cooperative advertising has advantages for manufacturers. It gives them the capability of extending their advertising resources through the purchase of newspaper advertising at local rates. It also allows them to tailor their advertising to local market conditions and to indicate to consumers where their products can be purchased. Cooperative advertising can also enhance the manufacturer’s position with retailers and help get their product promoted at the local level (and often on sale or special). Cooperative advertising can also stretch a company’s promotional budget since the retailer also contributes to the advertising of the product. From the perspective of the retailer cooperative advertising also has advantages. Co-op ads provide a source of funding for retailers to advertise in local markets and bring consumers to their stores. Moreover, when a co-op ad is promoting a well-known brand, it can generate store traffic that results in sales for this brand as well as other merchandise. Astute retailers take advantage of cooperative advertising as it can pay for a large amount of the advertising they do. D.

Explain the process of shaping. Give an example of a marketing communications strategy that employs this technique. Shaping involves the reinforcement of successive acts that lead to a desired behaviour pattern or response. Marketers often use shaping procedures in the introduction of a new product. Using a new cookie product as an example, a company might employ shaping procedures through the following process. First, free samples of the product would be distributed. This might take place through the mail, door to door, or by sampling in grocery stores. Coupons might be given out with the samples to provide an incentive for the customer to make the initial purchase. Next, an additional coupon might be placed on or in the cookie package, encouraging the consumer to rebuy. Follow up coupon distribution through newspaper inserts, direct mailings, and/or magazines might follow—with the coupon amount being reduced. By this time, assuming the product is of excellent quality and is liked, the coupons might be eliminated. Occasional coupons in the future might be used to maintain loyalty.

IMC Exercise The chapter discusses how sales promotion is used to contribute to brand equity by developing a promotional offer that is consistent with the brand positioning. Find an example of a contest, sweepstakes, or premium offer that a marketer is currently running and analyze the promotion with respect to how it contributes to brand equity. You can find examples of contests, sweepstakes or premium offers in magazine ads, freestanding inserts (FSIs) in the newspaper, or on the Internet. Your analysis should include a discussion of the image or positioning the marketer is using for the brand and how the promotional offer supports the advertising campaign being used for the brand. IMC Comprehensive Project After reading and discussing this chapter, students should be prepared to develop the sales promotion portion of their IMC project. The specific assignment is as follows: IMC Project Assignment for Chapter 14 Discuss how you will use sales promotion as part of the integrated marketing communications plan for your product or service. You should specify the consumer and trade sales promotion objectives for your product or service and discuss how specific sales promotion tools discussed in the chapter may be used Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-155

as part of your integrated marketing communications program. You should also discuss how you will coordinate sales promotion with your advertising campaign giving attention to areas such budgeting, ad and promotional theme coordination, and media support and timing.

CHAPTER 15: PUBLIC RELATIONS INSTRUCTOR’S MANUAL Chapter Overview Public relations (PR) are how information about the organization and its products is communicated to benefit the firm and its offerings. Typically, it is used to promote the organization, a cause or position advocated by the organization, or to create goodwill in the marketplace through sponsorship. In addition, it is not always within the marketer’s control, the marketer assumes a reactive posture when addressing publicity issues in news media and increasingly in social media. This chapter discusses public relations and summarizes the content of a public relations plan that is consistent with other IMC programs. Learning Objectives 1. Recognize the importance of public relations in the promotional mix. 2. Explain how to compile a public relations plan. 3. Examine how public relations is generated through news media publicity and argue its strengths and limitations. 4. Illustrate how public relations is managed through corporate advertising. 5. Apply the ideas of public relations within the development of an IMC plan. Chapter and Lecture Outline I.

PUBLIC RELATIONS

PR: Corporate—the chapter differentiates between a corporate view and marketing view of public relations. The former reflects a management function that is responsible for gaining acceptance of the organization’s policies and programs within its various communities.

PR: Marketing—a more marketing-oriented view sees public relations operating in close communication with the marketing department to develop programs and policies.

Publicity—publicity refers to the generation of news about a person, product or organization that appears in news media. It often is the result of a public relations effort. It typically lasts for a brief period, and it is not always positive and under the control of the marketer.

II.

PUBLIC RELATIONS PLAN

A public relations plan ensures that PR is an ongoing process compared to a series of disconnected onetime events and facilitates the integration of PR with other IMC programs. The key elements of a PR plan are like other IMC programs. A.

Situation Analysis—in addition to a review of the situation analysis from the marketing or IMC plan, people’s attitudes towards the firm, its products and/or specific issues should be assessed. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-157

Conducting attitude research provides input into the planning process, serves as an early warning system, secures support internally, increases the effectiveness of communication. B.

Target Audiences—target audiences are internal or external. Internal audiences include employees, stockholders/investors, community members, suppliers/customers. External audiences include media, educators, civic/business organizations, and governments.

Behavioural Objectives—the framework discussed in Chapter 5 is readily applicable for PR. Organizations consider whether the consumer interaction following the communication would be “trial” or “repeat” oriented.

Communication Objectives—The communication objectives set out in Chapter 5 also apply to PR. Firms certainly have awareness objectives and the above point concerning attitude research indicates that communication objectives in this direction are imperative.

Strategy—there are three elements for the PR strategy: message content, message creativity and message delivery consistent with advertising. The focus of the message has a marketing level orientation or a corporate level orientation. Message creativity and message delivery of the PR are key variables as the purpose of the communication is advertising which is to influence a target audience.

Tactics—depend on the type of dissemination used including the media, direct marketing, press conferences, seminars, events, and personal letters.

Effectiveness—the evaluation of PR assesses what has been achieved by PR, how to measure PR achievements quantitatively and how to judge the quality of PR results. PR effectiveness research is concerned with tracking exposure of the PR message in news media (i.e., corporate advertising, cause, sponsorship). For communication effects, typical measurement includes focus groups, attitude surveys, and tracking methods.

III.

NEWS MEDIA PUBLICITY

Media Options—choices for communicating with target audiences include:    

Strengths of Media Publicity       

press releases press conferences exclusives interviews

credibility endorsement cost avoidance of clutter reach specific audiences image building frequency potential

    IV.

brand/corporate identification inconsistent message timing accuracy

CORPORATE ADVERTISING

A firm’s advertising is not always designed to promote a specific product. Corporate advertising is designed to promote the firm overall—by enhancing its image, assuming a position on a social issue or cause, or seeking direct involvement from the market. A.

Corporate Reputation—the decision-making process (like advertising) and the importance of understanding the attitudinal implications of PR via corporate reputation is noted.

Corporate Image Advertising—advertising designed to promote the organization’s overall image may include positioning, television sponsorship, recruitment, financial support, and advocacy.

Cause-Related advertising—a company links with a charity or non-profit organization as a contributing sponsor. Recent findings are summarized for discussion.

Sponsorship—the marketer ties-in with a cause and/or event. Sports and entertainment events are among the most frequently used. Extensive planning issues associated with sports is presented such as positioning, target audience fit, target audience exposure, and brand activities.

IMC PLANNING: STRATEGIC USE OF PR

The section suggests integration of PR with other IMC programs, with PR taking the lead or support role. In either case, the target audience and objectives need to be clearly established for its advantageous use. Teaching Suggestions In addition to lecturing, it is possible to generate class discussion. A multitude of public relations and corporate advertising examples exist, and the discussion of the impact PR can stimulate a student interest. The issue of corporate advertising, particularly advocacy advertising, provides a topic for debate. Students might be encouraged to take a position and discuss the issues. Vignette 1. Why are these brands interested in sponsoring opportunities with TIFF and the NHL? TIFF and NHL share characteristics as attractive sponsorship properties for major brands. There is a strong vehicle source effect being in entertainment domains with positive emotional experiences. Considerable media exposure occurs with visibility in video media. TIFF media exposure is on TV and online while NHL hockey is on TV and online, along with location-based domains with in-store tieins. This media exposure is also likely inexpensive on a cpm basis with repeated exposures over time. The audiences are large and selective to a degree (i.e., movie-lovers, hockey-fans). Image building with celebrities is also a key consideration. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-159

IMC Perspective 15-1 1. What is the appeal to consumers of each example to spur the media exposure through publicity? It is a curious phenomenon where the creativity of advertising and promotional campaigns generate publicity. Research data indicates that consumers avoid ads, dislike ads, or do not believe in ad messages. Yet, the creativity of ad messages is so genuine and interesting at times, it spurs significant consumer responses. Each of the examples are unique and instructors can use them to spur a debate on which is most interesting to students for them to explain why publicity occurred. The examples can also be used to distinguish news media publicity and social media publicity. IMC Perspective 15-2 1. What direction could brands take to support these causes in future years? These innovative examples demonstrate how companies involve their brands with important causes (i.e., diversity, national history, sustainability). Students might take an alternative position by concluding that the organizations take advantage of an important aspect of society for commercial gain. And this is a reasonable point of view since the chapter indicates that organizations use PR for their own reputational gain. These students might recommend that the organizations cease their approach. Supportive students could develop interesting solutions for further the PR programs and this is an opportunity for instructors to show how there are key message and creative element in PR. Answers to Review Questions 1. Identify the key differences between public relations and publicity. In what ways are the two interdependent? The distinction between public relations and publicity is challenging for students and is attributed to the fact that the public relations department typically manages problems and opportunities involving publicity. Thus, the programs used in the creation of public relations programs are the same as those used to generate or control publicity. Effectiveness measurement of these programs are also similar. There are distinct differences between public relations and publicity, with control being foremost. Public relations programs are designed and implemented by the organization, publicity originates from within or outside of the organization. In the latter case, the information is not always favorable to the firm, and the scope of the actions designed to deal with these communications differs significantly. A second difference lies in the cost of public relations and publicity. Public relations programs may be very costly due to staff, materials, etc. Likewise, public relations agencies charge firms for their work. Publicity is expensive for the firm since writing and issuing press releases and managing “leaks,” obviously cost money. But these costs may be much less than those involved in large PR efforts, and—when released by other sources (for example, Consumer Reports)—may be free. Finally, both PR and publicity may be reactive rather than proactive because both respond to an event or communication that poses a potential threat. This also gives an indication their similarity. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-160

2. Describe the reasons why firms use public relations in an IMC program. Provide an example of an appropriate use of public relations in this mix. Advantages include: 

Credibility—due to its perceived news intent (versus selling), PR may have higher credibility than marketing messages.



Cost—PR costs less than marketing messages, due to the lack of media costs



Avoidance of clutter—longer articles, separation from ads and added content help avoid clutter.

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Ability to reach specific groups—through effective targeting, and due to its news value, PR messages may get through to groups advertising cannot.

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Image building—corporate advertising, cause and advocacy advertising, and PR activities in general may help establish a positive image in the mind of receivers.

The major disadvantages of PR are the lack of control over the message and guarantee that it will appear in the media at all. Thus, the intended communication may never take place, or an unintended message is delivered. Marketers can effectively employ PR activities and eliminate the disadvantages. Corporate, advocacy and cause advertising are paid for, and will get the message and media sought delivered. At the same time, they maintain the advantages, as there is no perceived intent to sell. Likewise, sponsorships can be effectively used to get the message delivered. Companies now formally design-in PR programs as part of their IMC program to increase effectiveness. 3. Companies are now trying to generate as much free publicity as they can. Cite examples, and discuss the advantages and disadvantages associated with this strategy. There is an old saying that “any publicity is better than none.” Companies have a designed strategy to generate as much publicity as they can, assuming that most exposures are likely to help them. Students should be encouraged to look for publicity in domains beyond the entertainment industry. Instructors can certainly look at the digital manifestation of publicity and investigate whether social media exposure constitutes true publicity if the reach of the exposure is minimal. For example, a few hundred views of a YouTube video may be quite inconsequential versus newspaper headlines. Alternatively, the quick dissemination of a link to a video on YouTube can be quite damaging. 4. Companies are now taking the position that their charitable contributions should lead to something in return—for example, sales or increased visibility. Discuss the pros and cons of this position. Traditionally, public relations activities have been separating from the marketing department, primarily designed to create goodwill in the community, portraying the organization in a favorable light, etc. In some cases, the organization would attempt to ensure that no profit- motive aspects were realized, (from a sales standpoint) in fear that the goodwill would be negated. The more modern role takes the position that “if we are doing it, why not get credit for it”? In other words, these PR activities may not need to be designed to aid the marketing process, but if they do, Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-161

what is the harm? Still another perspective is to use PR activities to directly aid the organization’s marketing efforts. From a marketing standpoint, one might take the position that if the PR activity is done in good taste, and it does benefit the recipient; why not get credit for it? There is no less value to the receiver, and so long as there is no exploitation involved, everyone benefits. One can take this position too far however, in that the receiver of the benefits now are selected based on potential benefits to the organization not on need. It is this last point that upsets the PR people—especially the traditionalists. They believe that PR was never designed to be a marketing activity and that it should remain independent. In addition to their altruistic convictions, they note the fact that the whole plan could backfire, causing the firm more problems than benefits. Companies still use both forms of PR. Olympic sponsors are one example. Some do so quietly, with little or no recognition. Others buy the sponsorship, using the same in their advertising and promotions to benefit their products or services. 5. Explain how public relations activities and media publicity can be executed with Internet media. Even though public relations practitioners have been some of the slower adopters of this innovation, the Internet offers this field a number of advantages. Traditional PR activities involve the dissemination of press releases, articles, etc. regarding the organization. The process of delivering these is cumbersome and can mount up when paper and mailing costs are considered—particularly when the list of contacts is large. In addition, this distribution takes time. The Internet offers the advantage of speed. Articles and/or newsworthy events can be posted on the site almost immediately after they happen. There are no limits on length, which allows the organization to provide as much detail as they wish. News organizations or others wishing to use this information can access it as needed and remain up to the minute in terms of developments. Knowing that the organization has a website providing this information also allows the user to know where to go to access the same. Rather than having to wait for the pr news, the medium can access the site, and get it themselves. They can go back for updates, additional information, etc., which makes their job much easier, and increases the likelihood of the information getting published or on the broadcast medium. Finally, the cost savings are enormous. There are no paper and printing costs. There are no distribution costs other than putting it on the site, and of course there are no mail costs. Answers to Applied Questions 1. Some marketers and PR people believe that public relations should replace advertising as the primary means of introducing new products. Explain why this would or would not be a good plan. Ries & Ries in their book The Fall of Advertising and the Rise of PR, contend that PR will replace advertising in terms of importance in the marketing communications mix. Advertising—they say— will be used primarily to support existing brands, with PR assuming the primary responsibility for introducing new products. Following are reasons both supporting and opposing this position: Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-162



Supporting--because of the declining effectiveness of advertising, it is no longer effective for introducing and building new brands. The reason for this is because consumers have changed regarding how they learn about new brands, and the communications program must change as well. Consumers now learn about products and brands through means other than advertising. Further, they contend, advertising has lost credibility. Public relations and publicity are considered more objective information. Advertising’s will primarily maintain the brand image.



Opposed--Advertisers feel that it is hard to control the message disseminated through PR channels. Often the complete message does not get told, the message may not appear at all, or may appear at the wrong time. Further, publicity is useful for mature brands beyond the introductory stage, and there is no reason to focus on this aspect only. Finally, more money is currently being spent on advertising as PR. It is highly unlikely that this will reverse, as PR—while important—is still perceived as support for advertising.

In short, an effective situation is when advertising and PR work together for an integrated program. 2. Select an organization that you admire and compile notes on the content of its public relations plan based on Internet research. Students may require guidance on where to look and the instructor may direct them to https://www.newswire.ca/. This website disseminates company news releases that are repurposed in stories found in newspapers or equivalent online sources. Students would go to a company’s website in which they should look for pages covering the brand’s corporate news, social responsibility activities, or community initiatives. Students may also visit a brand’s social media to read about a brand’s owned media postings. Instructors should encourage students to identify the target audience, intended communication and behavioural objectives in addition to the strategic and tactical elements of the execution. Additionally, students may go in the direction of seeing a brand use sponsorship for public relations and look at other resources such as sports news for example. 3. How do music artists take advantage of media publicity? Which strengths do they use? How do they minimize the limitation so of media publicity? This question hopefully resonates with students who are exposed via publicity regarding the artists they follow. It may also bridge the age gap of students and instructors who may not know what is going on with student consumption. A key aspect of the bridge is for the instructor to put structure around the student responses in a class discussion so that they can see the underlying principles. Students will focus on social media exposure of music artists (e.g., seeing video of the artist on YouTube, following artist’s Twitter feed). Instructors can also question the use of artists using other forms such as TV and radio and observe whether students are cognizant of publicity occurring in these media. Instructors can also delve into differences with “indie” artists versus mainstream artists. Logically artists are taking advantage of the lower cost, credibility of the source, and image building. The identification limitation is taken care of with the distinctiveness of the imagery artists typically portray that can be captured with the photos and video exposure. Timing is controlled with the performance schedule and the release of new material. 4. Identify sponsors of different concerts or entertainment activities you have attended and make a conclusion as to why this type of sponsorship may be successful. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-163

This is an experiential exercise that could prove interesting and distressing if there is poor recall, however an easy search can assist in this matter. The process of not recalling and then finding out could prove quite illuminating and this addition to the assignment may be fruitful for instructors to consider. In most cities these days there are music events (e.g., Rock, Blues, Jazz etc.) that the class could focus on. Of course, other cultural activities might spur interesting debate. One useful part to consider is the degree of brand exposure that occurs for a sponsor. In some examples, there are dozens of sponsors, and the logos are so small, the overall clutter of the exposure is so bad, one might wonder why the brand decided to participate. It is important to drive home the point of how the sponsorship contributed to the image and positioning of the brand when evaluating the examples. 5. Explain why a company like RBC would use the tools described in the chapter, including media publicity, corporate image advertising, cause-related advertising, and sponsorship. RBC is an example of a large company that uses all aspects of public relations, and most instructors would likely conclude very effectively across its vast operations domestically and internationally. It published a social responsibility report documenting all its accomplishments. Its most recent effort with respect to water is a particularly good example of cause-related advertising. This program is so comprehensive; the term advertising does not give it full justice; however, the average Canadian would only understand the program from the advertising of it, an important distinction to be made. RBC also has a number of other activities that it sponsors such as the Olympics. In fact, the Blue Water effort is referred to as a sponsorship since it gives money to hundreds of groups who manage the waterways, which shows how the lines between these activities are blurred. However, RBC’s communication of its effort falls into the domain of cause-related advertising. No doubt these activities get covered by the media, which contributes to the positive media publicity RBC often receives. Additional Discussion Questions (not in text) A. Describe the criteria used by companies to measure effectiveness of the public relations program. The text discusses criteria for measuring exposure as part of effectiveness. Also discussed are the means for accomplishing the evaluation process: 

Personal observation and reaction-- personal observation and evaluation by one’s superiors should occur at all levels of the organization.



Matching objectives and results--specific objectives designed to attain the communication objective should be related to actions, activities, or media coverage.



Management by objectives--executives and their managers act together to identify goals to be attained and the responsibilities of the managers. These goals are then used as a standard to measure accomplishments.



Public opinion and surveys--research in the form of public opinion surveys may be used to gather data to evaluate program goal attainment.



Audits--internal audits involve evaluation by superiors or peers. External audits include those that are conducted by consultants, the client, or other parties outside the organization.

B. Explain what is meant by the term cause-related advertising and advocacy advertising. Cite examples of organizations that have used this strategy. Does it work? Cause-related advertising is the term used to describe the linking of companies with charities or non-profit organizations as contributing sponsors. Cause related marketing is a “hot” trend in the business community. Most major companies have participated in cause related marketing for a variety of reasons. First, the goodwill and positive publicity associated with these activities are beneficial to the firm. Secondly, there is the feeling of doing something good for the community. Third, marketing activities such as coupon redemptions and sales have been shown to be positively affected. Participating in a cause-related relationship is not a guarantee of success, however. American Express has suffered negative publicity, as have others when the public feels that all the motives are not altruistic. In addition, some causes (such as AIDS) are too controversial to engage in, creating potential problems in the marketplace as well as within the organization. Advocacy advertising involves the propagating of ideas and elucidating controversial social issues of public importance in a manner that supports the interests of the sponsor. A quick perusal of any major daily newspaper provides examples of this form of advertising. The reasons for advocacy are included. One is to generate public support on an issue. Another is to elicit funds, while a third is to make people aware of an issue. Such ads may range from taking a safe stance (Mobil’s back the police campaign) to extreme depending on the goals of the sponsor. Effectiveness will also vary depending on the goals sought. C. What are some of the reasons for conducting public relations research activities? As with any other part of the communications program, there are reasons for conducting public relations research activities. These include, but are not limited to the following: 

to determine target audiences—some members of society may provide more effective markets than will others.



to determine attitudes and perceptions—it is important to know the audiences’ perceptions of the organizations as well as the programs it may or may not implement.

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to “tune” the program—testing source, message, and media factors is important to ensure the success of the PR program.



to evaluate the effectiveness of the program—follow-up research designed to determine the effectiveness of the program is important.

D. A great deal of money is being spent on sponsorships. Discuss why organizations are increasing their expenditures in this area, and how they can measure the effectiveness of these investments. Sponsoring events focusses on achieving strategic objectives. Chapter 15 discusses some of these reasons, but one of the major ones is to keep the name of the company and/or brand in front of the target market. Major companies pay to have their names on NHL arenas to raise awareness of their brand names. A number of companies offer methods for measuring the effectiveness of sponsorships. These companies use sales audits, exit interviews, and economic impact studies to measure impact. One company provides a measure of event sponsorship and their impact on sales. Still another clocks the amount of time a sponsor’s name is shown and equates this to buying advertising space costs. While all these measures would be useful to the sponsor, one must take a hard look at these methodologies before subscribing to them. In many cases, the measures are questionable (equating exposure to advertising), in others the impact may be overstated (economic impact). As noted in the text, several factors contribute to sales and/or other behaviours, and to attempt to isolate only the impact of sponsorships may not be as easy as suggested. Assuming the measures are valid, they could be used by a variety of companies. For example: 

golf equipment companies—measuring exposure to their name because of players wearing visors, using their balls, carrying their bags, etc.



event sponsors—companies who sponsor tennis events—is their name and association being noted?



underwriters—sponsors of events like concerts, plays, etc., who pay for the cost of the programs.

IMC Exercise Instruct students to gather information of public relations activities engaged in by organizations. These include both traditional and nontraditional methods. Have them collect examples of sponsorships, and describe the target audiences sought, and the pros and cons of the sponsorship. IMC Comprehensive Project Develop a public relations plan as part of the overall program. Describe what the objectives of this program are, how the program will be implemented and how it will be evaluated for effectiveness.

CHAPTER 16: DIRECT MARKETING INSTRUCTOR’S MANUAL Chapter Overview This chapter examines direct marketing in the promotional mix. It discusses the objectives sought in direct marketing programs, direct marketing strategies, the direct response media used to convey the communications message, and the evaluation of the direct marketing program. The chapter also investigates loyalty programs that are typically executed via direct marketing. The direct marketing discussion concludes with a discussion of its strengths and limitations. Learning Objectives 1. Define direct marketing and summarize the importance of a database for direct-marketing communication decisions. 2. Express the decisions of a direct marketing plan. 3. Describe the content of a loyalty program. 4. Evaluate the strengths and limitations of direct marketing. 5. Apply the ideas of direct marketing within the development of an IMC plan. Chapter and Lecture Outline I.

DIRECT MARKETING

Defining Direct Marketing—direct marketing is the interactive use of advertising media to stimulate an immediate behavior that is tracked, recorded, analyzed, and stored in a database for future retrieval and use. The execution of direct marketing uses one or more direct-response media (direct mail, telephone, interactive TV, print, Internet, mobile devices) to solicit a response from a prospect or customer. The use of direct media differs on whether the receiver’s identity is known or unknown.

Developing a Database—a direct marketing program requires a database which is the foundation from which direct marketing decisions evolve. Figure 16-1 shows a typical database content. Key points on where to obtain a database and the need to update the files are highlighted. 1. Database Content—databases are compiled from company records and public and private sources. Some are rich with past purchase history along with extensive profile variables while others are less comprehensive with basic demographic and contact information. Databases include information allowing marketers to send messages to those with no past purchase history and those with past purchase history. This allows marketers to improve the selection of market segments, stimulate repeat purchases, and cross-sell. Databases containing customer information need updating and monitoring to assess the success in terms of frequency and amount of purchasing.

2. Database Use for Targeting—information from the database allows direct marketers to target customers or non-customers depending on the source and content of the database. In either case, a good database allows a direct marketer to use multiple segmentation variables to effectively target as precisely as possible. 3. Database Use for CRM—loyalty programs run on databases to implement customer relationship management (CRM). Such programs are discussed later in the chapter, and a true loyalty program cannot work without extensive use of databases. II.

DIRECT MARKETING PROGRAM PLAN

Target Audiences—the content of the database permits direct communication to those who are both known and unknown so that messages can be customized and or personalized.

Objectives—direct marketers seek a direct response, in terms of trial or repeat purchases. This response need not necessarily be a behavioural response, as direct marketing is now used for other purposes: to build an image, maintain customer satisfaction, and inform and/or educate customers to lead to future actions.

Direct Response Media—direct marketers pursue either a (1) one-step approach or a (2) twostep approach in developing media strategies. In the one-step approach, the medium is used to directly obtain an order (for example, direct response television ads). In the two-step approach, more than one medium is used, with the first effort designed to screen or qualify buyers and the second designed to generate the response. Direct response media include: 1. Direct mail—direct mail is used to communicate with current customers for up-selling. Purchased mailing lists allow advertisers to reach non-customers according to predefined criteria found in the database. Keys to the success of direct mail are the mailing list and the ability to segment markets. 2. Catalogues—Examples of successful catalogue retailers are described. 3. E-mail—Electronic distribution of direct mail is E-mail where consumers agree to receive messages from a brand. Sign-up occurs via online or store-based transactions or through visits to home pages or social media vehicles. Legitimate communication via e-mail is distinguished from unwanted “SPAM” from ruthless illegitimate “marketers.” 4. Broadcast media—The majority of direct marketing broadcast advertising now occurs on TV using TV Spots, Infomercials, and Teleshopping. 5. Telemarketing—consumer and business-to-business telemarketing facilitates personal communication in the selling process.

Effectiveness—the typical measure is cost per order.

III.

LOYALTY PROGRAMS

Purpose of Loyalty Programs—provide rewards to consumers who exhibit significant repurchase behaviour over time that is tracked in a database thus permitting customized and or Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-168

personalized direct communication. Research indicates that both brands and consumers benefit from loyalty programs. Loyalty programs are commonplace in a number of product categories, particularly travel and hospitality, as well as among retailers. Consumer packaged goods companies are also developing loyalty programs that offer consumers accumulated points for continuing to purchase their brands. The points can be redeemed for gifts such as merchandise or for discounts. B.

Loyalty Program Characteristics—are unique compared to sales promotions designed to encourage repeat purchases due to the registration process and retention of consumer information and purchases in a database. Characteristics are summarized in Figure 16-4. Instructors could show a few programs to illustrate how they are consistent across most brands. Loyalty programs work on three mechanisms, point-pressure, reward-behaviour, and personalized marketing. C. Consumer Attitudes & Usage—positive attitude and usage data support the point that consumers enjoy and appreciate loyalty programs. D. Digital Communication—examples show how major brands communicate with their customers via loyalty programs. This section illustrates the customer/non-customer point of the text. Depending on the interest in the topic, instructors could show examples of different programs. Communication between the brand and its loyal customers is part of CRM and consumer attitude and usage to loyalty programs are a key input to their design. Furthermore, loyalty programs are a key means of communicating directly with consumer with digital apps.

EVALUATION OF DIRECT MARKETING

Strengths of Direct Marketing      

Target audience selectivity Target audience coverage frequency scheduling flexibility personalization costs

Limitations of Direct Marketing    

media image target audience coverage control for selective exposure reach

IMC PLANNING: STRATEGIC USE OF DIRECT MARKETING

Decision-Making Process Direct marketing influences trial and repeat purchase primarily at the purchase decision stage. It can also contribute to purchase-related action at any stage such as the information search stage. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-169

Direct Marketing & IMC Tools Direct marketing is a form of advertising. Whether through mail, print, or TV, the directresponse offer is an ad. Sometimes the ad supports the direct selling effort as a brand might run image ads to support its store and catalog sales. Direct marketing media are also employed to support all facets of the IMC program including PR, sale promotion.

Teaching Suggestions As noted, direct marketing is a rapidly growing field. It is a helpful and interesting exercise to start the class with a discussion as to what direct responses students are familiar with, and to point out the fact that some large, reputable firms are engaging in this form of marketing. It is also useful to spend some time discussing the increased use of databases. Seemingly every organization either now has or is in the process of establishing a database from which to market. Students will be able to identify which databases their names might appear on by the fact that the lists are often sold. It is easy to track who is buying lists from each other, as noted in the text. Vignette 1. Why do these brands value direct mail to deliver their ad message? Students would understand seeing pizza brands using direct mail, especially with coupon promotions used substantially. Similarly, Fresii using direct mail is expected as it is also in the quickservice industry. Its use for introducing a new product raises a discussion point on what other brands could use direct mail for new products. However, they are surprised to see that RBC partnered with OVO to deliver direct mail and instructors might want to focus on this example as an illustration to focus the discussion on other situations where unexpected use of direct mail is employed successfully. IMC Perspective 16-1 1. Who would be most attracted to the features of the PC Optimum loyalty program? Consumers who shop at both store locations regularly will benefit significantly with the new program. Interesting to consider is whether consumer might switch to the program and stores based on the expansion of the program. For example, would loyal Esso consumers now gravitate to the two retailers to obtain more points? The concentration of three product categories; groceries, drug stores, and gas suggests geographic location of where people live may be a factor in greater acceptance. Answers to Review Questions 1. Explain how companies use database marketing. How is the information derived from the database used to target audiences? A key factor in the success of direct marketing is developing and maintaining a database. Sources for names to include in a database come from a variety of sources, including customers themselves. When you fill out a warranty card, provide information to receive promotions, or even provide Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-170

information at the cash register, there is a good chance your name will be entered into a database. Once in the database, companies will use your name for a variety of marketing purposes. Sending out notices of sales, phoning members of the database, and sharing your name with other companies or organizations are just some of the activities for which the names will be used. In addition, sophisticated companies spend much time and effort in analyzing their databases. Through their databases they can track sales, determine the impact of sales and promotions, and profile their customers. By selling the names to others, another revenue stream is developed for the company. 2. What is the difference between the one and two-step approaches to direct marketing? Give examples of companies that pursue both methods. In the one-step approach, the direct marketer is trying to get a sale immediately upon exposure to the direct communication. For example, the commercials that ask you to call an 800 number “right now” and place an order would be an example of the one-step approach. Companies selling magazines, gimmicky items, psychic networks, etc. typically use this method. In the two-step approach, two communications are used. Sometimes, as in the case of magazine subscription sales, companies like Publishers Clearing House and others will send a notice of an upcoming sweepstakes, telling the receiver to watch the mailbox to enter, and then send the second piece. Others may use a TV commercial to have the viewer call in for further information, a brochure, etc. then follow-up with another communication to attempt to make the sale. It is interesting to note that some companies that originally used the one-step approach now employ the two-step model. For example, Bowflex, a successful direct marketer employs a variety of media including TV, coupon inserts in the mail, and the Internet in their direct marketing efforts. 3. Why are loyalty programs considered to be a direct-marketing program rather than a sales promotion? Loyalty programs are established activities within an organization that facilitate the ongoing relationship with its customers. Sales promotions are short-term events that are started and stopped with a prescribed time. This distinction is a primary characteristic that is important to point out. As part of this, it should be noted that a simple card keeping track of purchase like coffee where a consumer would get free one after buying ten is not a loyalty program since it does not fulfill the characteristics outlined in the chapter. Likely, this kind of card is akin to a sales promotion since it can be discontinued so very simply by no longer distributing them. A loyalty program operates with customer registration and executes communication and loyalty transactions via the use of a data base. This is more involved and institutionalized compared to a coupon event or running a price discount for a few weeks. 4. One of the disadvantages associated with direct marketing media is the high cost per exposure. Some marketers feel that this cost is not as much as a disadvantage as is claimed. Argue for or against this position. While the higher cost per exposure is often considered a disadvantage associated with direct marketing media, but this cost may be warranted. While most other media have lower costs, their value lies primarily in creating exposure, interest and/or providing information. Direct marketing media seek a response. Thus, a higher cost is warranted if there is a higher, more direct behaviour associated with the communication. The ability to target an audience and eliminate excessive Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-171

coverage is a factor in support of the higher cost of direct marketing media. Finally, the ability to tailor the message may result in a more effective message and improves the likelihood of a behaviour. 5. How does direct marketing influence each stage of the consumer decision-making process as it works with other IMC tools? Direct marketing messages and media can influence every stage of the decision-making stage. No doubt some attempts work at the need recognition stage. For example, direct mailings to households for household services encourage consumers to use a service rather than doing it oneself (e.g., snow removal, lawn maintenance). Consumers may be on an email list for a retailer and receive notification of a sales event or new merchandise and begin the process of information search by visiting the store. A follow-up phone call from a car dealership, along with brochures sent or picked up, assist consumers in the alternative evaluation stage. Any direct response media could be used as each of the stages assuming the right message is associated with the deliver and there are no logistical difficulties to turn off the consumer as they progress through the stages. Answers to Applied Questions 1. Construct a list of variables that a fashion brand might desire in its database to mark to students in college or university. The starting point for this question would be Figure 16-2. Students would add or delete from the list of variables. Given it is a fashion product, the database might be including lifestyle variables that would be related to design etc. If possible the database would include the styles liked or other preferences that its clientele might desire. 2. Collect any direct mail delivered to your household and evaluate whether it is effective. This is another experiential exercise designed so that students can understand the marketing stimuli they encounter on a regular basis. Students can examine the material and assess the degree to which there may be category need, awareness, attitude, and purchase intention effects. As part of this evaluation instructors can link the creative decisions covered earlier to illustrate that they are operational in this media much like other print, TV, and online messaging. 3. Read up online about an interesting loyalty program and apply Figure 16-4 to identify the characteristics and give an assessment of the program’s value. Students may investigate one of the loyalty programs featured in the chapter, so instructors might want to put constraints on the question. For example, Air Miles is referenced quite a bit so perhaps this one might be skipped. Alternatively, Air Miles could be used as a basis, an in-class summary first, and then each student could compare another one to Air Miles. Figure 16-4 represents new material in evaluating loyalty programs as the topic has grown with the maturity of the programs the past couple of decades. Instructors may want to refer to the article as it in very comprehensive shedding new light on a topic that is much more complex than one might expect. In the end, an overall assessment on whether the program fosters loyalty or merely sets up switching cost should be considered and investigated with respect to consumer behavior theory.

4. How might a smartphone service improve its marketing communication with the use of direct marketing? Customers of smartphone service providers can receive regular information flow from email. Conversations via chat can occur when the customer has some kind of difficulty, simple instructions from a service attendant could alleviate extensive dissatisfaction. Alerts can be given when new product and services are available with both options. Glossy communication via a magazine could work as well since the mailing address is in the data base. Also, the personal touch might be helpful with phone calls periodically to answer and questions or concerns. 5. Provide examples for both consumer goods and services of how companies might use direct marketing as part of an IMC program. This is an open question for students to present their findings. They should be encouraged to look for examples that would interest themselves and their fellow students to understand how direct marketing works. Instructors need to be prepared to react to the material presented and offer structure on the type of objectives, strategy and tactic that are used, and to draw connections on how the direct marketing effort may be connected to other IMC programs. This assignment could prove to be interesting to students if the right examples are sought and investigated accordingly. Additional Discussion Questions (not in text) A. Explain how a consumer goods company might employ database marketing. A business-to-business company? A service company? All industries can use of database marketing in a variety of ways. Following are a few examples: 

Consumer goods companies—consider the example of bicycle helmet companies. A helmet is purchased, and the warranty card is filled out. The information is entered into a database. The database can then be used to cross sell the customer on additional bike products, offer an insurance policy in case of helmet failure, and sending a thank you for the purchase. Bike helmets are replaced, on the average every three years. Around this time, the database identifies potential new buyers, and direct mail pieces, coupons, reminders, etc. are sent to the prospective buyers.



Business to business companies—automatic filling and shipping of orders, cross selling and other database programs can be applied. In addition, announcements of new products, sales and/or promotions can be sent from the database. In respect to customer service, the information contained in the database may speed up the entire problem-solving process.



Service companies—banks are extensive users of database marketing programs. New banking services designed to specific demographic and/or socioeconomic groups rely on databases to increase the ability to specifically target these groups with new program offerings, important changes, news, events, etc.

B. Explain why a company like KitchenAid successfully adopted direct marketing techniques. As soon as it started through TV, direct marketing has been proven to be a success for smaller companies and start-ups. Now, large corporations have found these techniques—particularly the Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-173

infomercial—to their liking. Several factors have led to success for these marketers. The low cost of the medium—that is, both production costs and media costs are low. Advertisers can produce an infomercial for a low cost compared to commercials, and the media costs—because of the time periods purchased - are also inexpensive. Beyond the costs, infomercials and other direct marketing programs also offer attractive features. One is the ability to reach the desired target audience. Content of the direct response messages is also a positive attribute. For example, a one-hour infomercial can provide the potential car buyer with a lot of information, right in the comfort of their home, and with little effort. The same is true for other products, some of which the buyer may not be familiar with and may become interested once they have acquired more information. Overall, the infomercial, and direct marketing overall, has evolved from its original platform. Once strictly a sales tool, these media have discovered that they can offer the consumer much more, maintaining their interest and satisfaction, generating goodwill, etc., and still generate sales. To some of these companies, the primary goal is not to sell, but to support other marketing efforts. C. Describe what is meant by a database. What functions do databases perform? A database is a listing of customers and potential customers. These lists may be organized on a variety of factors, including demographic, geographic, and even psychographic. Marketers use databases to: 

Improve segmentation strategies—lists can demonstrate past purchasers, potential purchasers, and (as noted above) be segmented on a variety of criteria.



Stimulate repeat purchases—companies arrange databases in a way that allows them to contact customers when a service is due. For example, car dealers letting customers know when their service is due; carpet cleaners notifying customers that it has been a year since their last cleaning etc.



Cross-selling—once a customer is included in the database because of a purchase, the opportunity exists for cross-selling. For example, camera companies may sell film or developing to recent camera purchasers; tape and disc companies can cross-sell videotapes, etc.

The opportunities for using databases seem endless. A good discussion can ensue on this topic. IMC Exercise Catalogues have become an important direct marketing response media, and many catalog companies have opened retail stores. Have students provide examples of these occurrences, bring in example catalogues, and explain why this is occurring. IMC Comprehensive Project Explain whether the product could be marketed through direct response media. If so, include in the plan the direct media to be used, the cost, budget allocation for their inclusion should be provided.

CHAPTER 17: INTERNET MEDIA INSTRUCTOR’S MANUAL Chapter Overview Internet media has strengths and limitations as an advertising medium much like other media. The chapter provides an overview of Internet media communication by looking at usage, web-site communication along with its objectives, and website strategy. Digital advertising planning is examined next by covering the content of a digital advertising plan. Next different advertising formats: display ads, paid search ads, video ads, audio ads, and classified and directory ads, which are related to the idea of Internet media vehicles. Subsequently, the next section describes mobile advertising and mobile usage including apps and short-messages media. Methods of measuring effectiveness are then summarized and strengths and limitations of the Internet follow. The strategic use of Internet media is then summarized. Learning Objectives 1. Describe Internet media usage and explain website communication. 2. Review Internet media advertising. 3. Identify the advertising formats of Internet media. 4. Explore mobile advertising. 5. Define measures of Internet media effectiveness. 6. Apply the ideas of Internet media within an IMC program. Chapter and Lecture Outline I.

INTERNET MEDIA COMMUNICATION

The section provides an overview of the Internet with respect to marketing communication. A.

Internet Users—Canadian usage statistics are summarized in the figures and are a handy reference to compare to other media.

Website Communication—websites contribute to marketing communication objectives to develop awareness, disseminate information, build a brand image, and facilitate interaction.

Website Strategy—A website is the home of the information the company provides via Internet media. It is also an experiential medium with transformational properties, like TV advertising. The development of interactivity and the idea of website advertising are emphasized. Research of attitude ad and attitude to brand is as applicable to attitude to website and attitude to brand. In this regard, all branded company websites can be viewed as one big ad, and the content of these websites are constructed to carefully influence the audiences’ brand attitude.

II.

DIGITAL ADVERTISING PLAN

This section indicates that a digital advertising plan shares similarities to advertising plans of other media. A.

Overview—the figures show the extent and type of advertising revenue in Canada. Instructors are encouraged to review this for students to understand the big picture.

Target Audience & Objectives—use of segmentation variables described in chapter 3 are applied to digital advertising. Targeting consumers based on their Internet viewing (behavioural targeting) is prominent. Issues of privacy and self-regulation of behavioural targeting are highlighted.

Digital Media Strategy—media strategy decisions identified in chapter 10 (mix, target audience coverage, schedule, geographic coverage, reach & frequency) are applied to digital marketing to illustrate consistency.

Digital Media Tactics—all aspects of Internet media are available for disseminating a marketing message. The figure applies existing media terminology to illustrate how planners can evaluate different media vehicles for ad placement.

III.

DIGITAL AD FORMATS

Promotional planners use Internet media for advertising to their audiences. In most cases, the delivery is like other media in terms of a print message, video message or audio message. In some instances, each offers specific opportunities to reach an audience with characteristics and act as a media vehicle. A.

Display Ads—display ad formats follow technical requirements of industry standards provided by IAB.com and IABCanada.com that were revised in 2017. Old formats are not recommended, and the guidelines enhance the user experience with the LEAN principles. Instructors can highlight these characteristics with examples. The buying and selling of digital ads are quite different compared to other media with ad networks and ad exchanges. This process is complex and is challenging to teach and may be omitted without loss of continuity.

Paid Search Ads—search engine prompts of key words provide links to related websites. These links are an extremely primitive form of a display ad that encourages additional action of the user desiring to process the message further at website or any social media vehicle potentially. Paid search ads are the first step in the two-step direct marketing process described in Chapter 16.

Video Ads—streaming of video messages via internet media increased with broadband growth and penetration giving rise to greater advertising opportunities. Digital Video Ads: Owned—brands place different lengths and formats of video ads in a variety of digital media vehicles in which there is paid fee to a media company. TV Video Ads: Paid—commercials are placed within programming on major TV networks like CTV. Consumers view the ads as the “cost” of seeing content not paid for on the CTV website.

Digital Video Ads: Paid—television-like commercials are viewed in many digital locations (e.g., webs-sites, web-portals). Video available for viewing includes television-like ads that users view prior to receiving the content. These ads are seen without TV show like content. D.

Audio Ads—streaming of audio messages via internet media increased as well. Podcasting—includes audio communication that is sponsored by advertisers with the effect simulating radio ad. Streaming—Audio ads delivered through streaming services appear like radio advertising but features more selective targeting.

Classified Ads—a substitution of ads from newspapers (e.g., classifieds) and directory books (e.g., Yellow Pages) occurred. General (e.g., Kijiji) and specialty websites (e.g., Autotrader) offer advertisers similar targeting options like other media.

Promotional Ads—digital delivery of a promotionally oriented item acts as an advertising format since there are brand messages associated with its presentation.

IV.

MOBILE

The growth of smartphone ownership increased this delivery method for digital advertising. A.

Mobile Ads—expenditures for mobile ads continued to grow with the same ad formats found for desktop ads. Note, IAB separates ad expenditures between these two delivery methods. many figures summarize mobile usage which provides instructors opportunity to communicate how significantly consumes use mobile technology.

Mobile Apps—apps act as a permanently owned media once installed on a user’s phone. Consumers are using apps on a regular basis for many shopping activities in which IMC plans need to account for achieving objectives.

SMS—direct communication from a brand to a consumer is facilitated by SMS. Logically, a considerable amount of this communication is with customers who are loyal or favourable switchers. The messages encourage repeat purchases and provide an opportunity for advertisers to offer promotions or communication of other IMC programs like events.

MEASURING INTERNET MEDIA EFFECTIVENESS

Audience size measurement points described in the previous media chapters indicate that it is important for all media, including digital media. Chapter 9 material is relevant to apply for measuring digital media advertising effectiveness. A.

Audience Measures— determination of audience sizes remains challenging with a lack of consistent standards and established procedures. Nonetheless, advertiser are interested in knowing audience size of the digital media vehicles like other media.

Communication Model Measures—ARF research is noted indicating numerous measures of Internet media usage. While useful, the majority focus on exposure and very few are useful brand specific communication effects (i.e., awareness, attitude). 1. Exposure Measures—include measures such as hits, viewers, unique visitors, clicks, clickthrough rate and impression/page views. 2. Communication Effects Measures—importance and growth of these measures is seen with the growth of cross-media optimization studies.

VI.

IMC PLANNING: STRATEGIC USE OF INTERNET MEDIA The section identifies the communication opportunity of Internet media. It works with all IMC programs and its manifestations act as autonomous IMC programs. With its print, video, audio characteristics, Internet media has all sixteen media characteristics summarized in Chapter 10 as strengths with the right combination of applications. Its pervasiveness allows it to achieve any communication objective for any target audience at any point in the consumer decision-making process. Thus, when one decides to use the Internet, the manager needs to be specific with respect to the strategic intent or else valuable resources can certainly be wasted.

Teaching Suggestions This chapter may be one of the most interesting chapters in the text for students. At the same time, it may be one of the more difficult for instructors to teach. Much of the difficulty arises from the rapid change of Internet media. Another factor that makes the chapter difficult to teach is the high level of knowledge and interest of the students. It is recommended to get the students involved in the discussion from the beginning. Showing examples of effective websites—as defined by the communication objectives—is a good starting point. A review of all the advertising avenues is warranted to see the similarities and differences with advertising on TV or print mediums. It is also instructive to make a link to the media concepts from Chapter 10. For example, the idea of media class and media vehicles can be applied to internet media, as social media may be viewed as a media class and Facebook viewed as a particular vehicle. Vignette 1. What communications objectives are achieved with a digital display and digital video in these examples? Digital display contributes to brand awareness to some degree depending on the creative elements and size, much like what occurs in other static presentations such as magazines or outdoor. With a shorter message and less ability to be creative in many aspects, the brand attitude effects are elusive. However, digital display provides receivers of the message to carry on with the brand to its website or social media presence for further communication which can contribute attitudinally. The link within the ad may assist in purchase intention. digital display are unlikely to contribute category need, but a creative message may make it work. These points are relevant for digital video, however the brand attitude effect may be stronger due the audio-visual characteristics allowing stronger processing. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-178

IMC Perspective 17-1 1. Which example of digital advertising is the most innovative and insightful? This example shows that clear positioning and clever creative elevates a message no matter the media. Additionally, this example demonstrates the opportunity of Internet media to provide a comprehensive digital ad plan. These two points reinforce the importance of advertisers getting the right combination of message and media to achieve communication effect. The measurement points reinforce the importance of moving beyond exposure measures that are commonly overused in Internet media to the detriment of communication measures. IMC 17-2 1.

Does a story like this potentially drive consumers away from retail or QSR apps? The Tim Hortons mishap is an interesting story of how a brand stumbled the privacy issue. While negative publicity ensued, most would consider that the damage was minimal as sales remained strong and consumers still gravitated to the app implementation of the annual contest. Indeed, there did appear to be a mass protest to boycott the brand as seen with mistakes other brand experience. Some students might be aware of negative online consumer reactions that did not materialize in news media, and this could be an idea raised based on chapter 15 material. Instructors can address the point of data collection and privacy as it is a key issue with Internet media.

Answers to Review Questions 1. How has Internet media threatened other media? How has Internet media assisted other media? The Internet may be one of the best things to ever happen to traditional media. Internet marketers very quickly learned that they needed traditional media to promote their sites, and that promoting on the Internet alone would not be sufficient. The result is that traditional media have received the rewards of the Internet companies’ expenditures and are bringing in revenues at a high rate. Recent events have demonstrated that for Internet companies to survive, they will need to adopt more traditional marketing methods, and employ even more traditional media. Traditional media brands are finding ways to deliver content on the internet which has expanded their revenue base. In fact, news readership is stronger with two avenues for consumption. Its only serious decline is the loss of its lucrative classified to online versions. TV encourages interaction with its programming via social media and its revenue has steadily grown, as does radio to some degree. Out-of-home has resurged with the GPS technology connecting to consumers’ smartphones. 2. What are the similarities and differences in planning for digital advertising vs. TV advertising? Similarities include the overall structure of media strategy and media tactic decisions overlapping in terms of scheduling, reach, frequency, target audience coverage, geographic coverage, and relative costs. Differences include the interactive characteristics of many messages and the fact placement in different vehicles in terms of a content provider website vs. social media website. Instructors are encouraged. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-179

3. Explain the advertising formats that advertisers use with Internet media. Discuss the advantages and disadvantages associated with each. Instructors can refer to the above notes regarding the description of the ad formats. A framework for evaluating the ad formats should apply the exposure, processing, communication effect, and action model of the text. A good discussion could arise from such a point of view. Alternatively, instructors can apply the eight media characteristics and eight media usage characteristics. 4. What are the unique characteristics of ads on mobile devices vs. desktop computers? Mobile ads are much smaller and the display of them is quite different compared to dissemination of static and motion ads found in other media. The placement within content is strikingly unique. To see this in action, consider a simple ten second video message shown on a big outdoor screen vs. a small phone screen. Compared to a desktop, the effects are less dramatic, however the sheer size of a desktop screen affects processing significantly. The communication effects of this smaller message delivery must be considered like awareness and brand attitude. Students may find that mobile ads are more aligned with purchase intention as consumers use their phone while shopping. 5. Describe the ways that marketers measure the effectiveness of their use of Internet media. How do these measures relate to more traditional measures? Internet marketers have a number of exposure measures that include: 

Page impression—number of users exposed to a webpage.



Visits—number of user sessions

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Unique visitors—number of different visitors to a site in a specific time

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Ad Impressions—number users exposed to an ad.

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Clicks—number of users interactions with an ad.

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Click-through rate—percentage of ads exposed that user click.



Average time per visit—length of times spent on webpage.

Marketers also adapt other media measures for communication effects to assess awareness and attitudinal results. Behaviour is tracked with respect to repeat visits, frequency, and recency. 6. Discuss the advantages of Internet media. For which types of advertisers is Internet media best suited? Why? The Internet offers some distinct advantages to the marketer such as target audience selectivity, Involvement and processing time, control for selective exposure, creativity, and costs. Most companies may be able to find a way to use the Internet to operate to their advantage. They just need to know how to define what the objectives they are seeking will be in determining their role. Answers to Applied Questions 1. Select a favourite Internet site for a brand and investigate how it achieves the objectives outlined in this chapter. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-180

Students should have an enjoyable time applying the objectives outlined in the first section to their website selection. Of course, they may be looking at sites that are directed for transactions versus communication; however, instructors could still quiz them on how the website communicates the brand as part of completing the transactions. Instructors should make note of how well the student draws on all the characteristics of the web design that are consistent with the design elements looked at in Chapter 8. It may be tempting to delve into the technological elements, but instructors should keep the discussion on point with respect to communication. 2. Suggest a digital ad plan for a leading brand for any product category. This also could potentially be a fun exercise for students to imagine what a digital ad plan would look like for a fashion product or smartphone. The plan should contain all the elements highlighted in the section including target, objectives, strategy, and tactics so that students see the similarities and differences compared to a non-digital ad plan. 3. Visit a number of internet media vehicles and evaluate the effectiveness of the display ads in terms of creativity, message, and ability to reach the intended target audience. Of course, students already looked at many different sites in the past; however, likely they have not critically evaluated the ads. This exercise will allow students to apply the creative decisions of Chapter 7 and 8, as well as the segmentation variables in Chapter 3. To fully address these points, relevant ideas from Chapter 4 and 5 will have to be applied as well. 4. Critically evaluate mobile apps on your smart phone in terms of the brand achieving brand communication objectives. Apps on a phone act as a constant visual reminder of a brand and supports brand awareness. Its existence offers significant control for exposure which may lead to greater frequency of message delivery. As these two points suggest, all the media evaluation criteria of Chapter 10 can be applied to this delivery of brands messages. Instructors can review an application of this idea to see if all criteria are relevant and to see whether it is a strength or a limitation. 5. What measures of marketing communication effectiveness are relevant for each of the four types of social media investigated in this chapter? Students should be able to show that all aspects of measurement are relevant. Brands would want to know the numbers participating with social media, the exposure and processing levels, and try to figure out if there is any attitudinal influence. Behaviour could be especially interesting to talk about what to measure with so many different activities that are possible with each of the different social media. 6. Select a product of interest and explain how each of the four types of social media described in this chapter can be integrated effectively with broadcast, print and out-of-home media. TV and radio ads clearly suggest receivers visit their Facebook page for varying reasons (e.g., information, promotion) and to find the brand’s YouTube channel for example. This covers two of the four social media classes. It is unclear whether brands direct receivers to the other two, but the option certainly exists if there is a compelling communication objective. Print media commonly show the social media icons and given the reading format of this media, it may be more likely that brands Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-181

could direct their target audience to a blog or a cause that is using a wiki for example for increased brand communication. Directing receivers to social media from out-of-home media does not appear as perhaps due to its transient nature. However, this is moving in the right direction with the use of mobile technology (e.g., QR codes. Additional Discussion Question (Not In Text) A. Discuss the objectives marketers may be seeking in their use of the Internet. 

Develop awareness—establishment of a website provides the potential of worldwide exposure. However, it does not guarantee it. By establishing a web presence, companies with limited budgets may now be discovered by potential customers and may establish a website for just this purpose.



Disseminate information—an effective use of the Internet is that of providing information. No other medium can provide more information, at a faster pace and for less cost than the Internet.



Build a brand image—websites can also assist a company in providing the market an image or to communicate their positioning.



Facilitate interaction—all aspects of Internet media facilitate interaction (e.g., reciprocal, responsive, speedy, non-verbal information).

B. Review the limitations of Internet media and assess whether these are as weak as the limitations of other media. Target audience coverage is problematic with Internet media. The placement of one ad on one vehicle is quite limited compared to what may occur with TV for example where a placement of an ad may reach 2% to 4% or upwards of 8% to 10%. A placement of a print ad may be exposed to a few hundred thousand in the case of Canadian Living, but only a few tens of thousands with an online banner ad. Carrying this line of reasoning beyond one placement, reach attained by using multiple vehicles is potentially strong with TV and other media, but a banner ad with Internet media would require even more ad placements to achieve high levels of reach (e.g., 30% or 40%). Banner ads on websites produce significant clutter with while competing for attention, and this may be like newspaper ads, however TV ad placements do not have any other ad playing at one time and many magazine ads are full page without any competing messages. Refer to Figure 11-24 to illustrate the level for receivers’ attention occurs with each media. Much data shows that consumers do not view Internet media ads favourably, so from a media image standpoint, ads in Internet media have a long way to go. All of this is quite curious with the growth of Facebook ads and the placement in other Internet media vehicles. IMC Exercise Have students visit websites and have them evaluate the sites based on the communication objectives discussed in the text, critiquing the site, and offering suggestions for improvement. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-182

IMC Comprehensive Project Develop the Internet strategy. Describe what the website will look like (or design one), and which advertising and promotions forms will be employed. Will the site include public relations sections? How will it contribute to social media usage with respect to the brand?

CHAPTER 18: SOCIAL MEDIA INSTRUCTOR’S MANUAL Chapter Overview The chapter overviews social media in a few directions; key topics in social media communication, social media networking, content communities, blogs and collaborative projects, and social media influence. The point of paid, owned, and earned media is a theme discussed in most of these directions. The chapter wraps up with strategic use of social media. Learning Objectives 7. Identify social media communication. 8. Review social networking. 9. Illustrate content communities. 10. Describe blogs and collaborative projects. 11. Investigate social media influence. 12. Apply the use of social media within an IMC program. Chapter and Lecture Outline I.

SOCIAL MEDIA COMMUNICATION

Social Media Classes—social media is an Internet-based application that allows the creation and exchange of user-generated content resulting in social media classes; collaborative projects (e.g., wiki, social bookmarking), blogs, content communities (e.g., YouTube), social networking sites (e.g., Facebook), virtual worlds. This chapter summarizes the first four for advertising and purposes. It groups two into information-based social media (news, blogs, projects) and identifies the emerging idea of lifestyle social media (e.g., Trip Advisor). Researchers identified the concept of social media attachment that instructors may wish to review in detail to see why advertisers may gravitate to certain social media classes and vehicles. While certain social media vehicles dominate, much of social media is fragmented and the target audience coverage is minimal when placing ads, thus necessitating careful planning and application of existing media knowledge.

Social Media Engagement—advertisers are interested in consumers’ online brand-related activities (COBRAs) like consuming, contributing and creating since they indicate varying degrees of social media engagement. Instructors should highlight the distinction that it is not some abstract idea of engagement, but specific brand related activities that occur in social media only. For example, using the term engagement for consumers to attend a marketing event is not the same since the experience does not involve social media. However, there is social media engagement if consumers took selfies showing brand imagery why at the event.

eWOM—social media engagement also manifests as electronic word-of-mouth (eWOM). A number of interesting findings from the literature are shown and instructors may wish to illustrate the success of positive eWOM, a preferred term over online WOM. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-184

Social Media Usage—figures show social media use which indicate the potential reach across vehicles and across ages, and the potential frequency by the amount of usage. Attaining reach and frequency levels is limited for social media vehicles as noted in non-digital medica vehicles.

II.

SOCIAL NETWORKING

Facebook—paid, owned, and earned media exposure is summarized for Facebook. Depending upon the objectives, a promotional planner can (i) pay to have a message placed within the media, (ii) own a brand page/account to deliver message, or (iii) foster digital word-of-mouth communication of the brand. Statistics summarize the degree of social media engagement.

Twitter— owned, paid, and earned media exposure is summarized for Twitter. Depending upon the objectives, a promotional planner can (i) pay to have a message placed within the media, (ii) own a brand page/account to deliver message, or (iii) foster digital word-of-mouth communication of the brand. Statistics summarize the degree of social media engagement.

III.

CONTENT COMMUNITIES

YouTube—represents the main example of a media vehicle placing ads online alongside video content. The section presents Canadian data and shows the paid, owned and earned characteristics of YouTube for advertisers.

Instagram— represents the main example of a media vehicle placing ads online alongside photo content. The section presents Canadian data and shows the paid, owned and earned characteristics of Instagram for advertisers.

IV.

BLOGS & COLLABORATIVE PROJECTS

Blogs—are usually the personal writings of an individual, although company and brand versions exist and represent the “owned” media in this media class. Blogs often reflect the “earned” media of brands as individuals will post their experiences while using goods and services. Blogs are also an avenue for “paid” media as bloggers will accept ads to support their costs. Blogger owned by Google is one option for bloggers to accept ads and for brands to place ads.

Collaborative Projects—illustrates the ultimate in social media since consumers are contributing and perhaps to some degree creating as a COBRA. This characteristic makes the distinction (e.g., paid, earned, owned) murky as it is difficult to know who is posting what material, and whether they were paid or not. Moreover, the blurring of content and advertising is become enriched with the movement of content from one domain to another like Pinterest. Instructors can raise an interesting discussion on this point with material from Chapter 19 where Advertising Standards information shows that the identity of an advertiser should be known.

SOCIAL MEDIA INFLUENCE The section identifies decisions and issues surrounding the use of influencers in social media. Of note are the guidelines they are expected to adhere based on recommendations from Ad Standards in Canada, which are aligned with similar points from the FTC in the US. Instructors are advised to put this into historical context as the notion of paid influence in marketing existed in marketing long before Internet media and social media.

VI.

IMC PLANNING: STRATEGIC USE OF SOCIAL MEDIA

The section concludes with the point that social media engagement is a manifestation of the feedback stage of the communication model shown in Figure 4-1, and that social media planning is so important such that is requires a detailed plan like other media. The section identifies six planning issues pertaining to the development of a social media plan. Instructors may want to relate some or all these points as they review the material of each social media. Teaching Suggestions Social media usage statistics and social media engagement are two important points to review initially to see how social media is involved with consumers’ lives and to see how feedback occurs to advertisers through social media. Depending on class interest and the instructor’s understanding, all social media domains can be investigated. It is expected that students will want to spend considerable time discussing social media influencers, and discussing Ad Standards guidelines is an important item to review. Vignette 1. Is the boycott evidence of future problems for Facebook paid advertising? Predicting outcomes of negative publicity after boycotts is a tricky task. In general, consumers do not recall protests of this sort, however Facebook’s high profile suggests this could carry on to future boycotts. This story and question open the door for a discussion on the merits of Facebook paid advertising. Information in the story suggests that Facebook advertising may have hit its peak. At some point, equilibrium across media expenditures may emerge due to many factors including privacy issues, switching to other social media, and switching to other media after advertisers experimented with social media. The boycott provided advertisers with an excuse or opportunity to drift away. Digital and Social Media Perspective 18-1 1. What other big brand names could use TikTok in their social media plan? The brands identified in the example are well-known indicating that TikTok achieved certified media status for advertising despite controversy surrounding the popular social media. Instructors might be interested in finding the ads to show or asking students how these brands could use TikTok in their messaging. This could transition towards questions on other brands using TikTok. One avenue is to see what the competitors of these brands could do for their messaging. After the suggestions, instructors could try to find examples of the identified brands. Digital and Social Media Perspective 18-2 1.

What other goods or services could creatively use AR in social media? Students might find the examples entertaining and instructors can focus on these in class to start a conversation on other applications of AR in different social media for many brands. This could potentially be a fun group exercise for 20 minutes and then have the students verbally present their ideas to the class.

Which brand would most benefit from a social media influencer? Students might find the examples entertaining and instructors can focus on these in class to start a conversation on other social media influencers. Presumably, students know notable social media influencers and can relate their positive and negative experiences. Issues of source effects, costs, overall communication effects can be raised by the instructor as follow-up questions.

Answers to Review Questions 1. What is social media engagement? How does social media engagement vary within different social media classes? Social media engagement reflects consumer brand-related activities like consuming, contributing and creating. Consuming is a very weak form of social media engagement, and some may discount this as significant compared to contributing and creating which signal actual production of content on the part of the consumer. None the less, this book uses the word engagement with social media only due to the interactive characteristics. Social media engagement is like a degree across social media classes; however, some are more video oriented while others are more picture oriented, and some in fact are more text content oriented. Given this divergence it suggests that different objectives can be attained depending on the nature of social media engagement a brand tries to encourage with its brand communication. 2. Identify how Facebook offers paid, owned, and earned media for advertisers. This review questions gets students to realize that a Facebook ad campaign could have seven combinations: each independent, three pairs, and all three. This suggests that a social media plan within Facebook requires a clear direction for target, objectives, and message delivery. Paid is like other media where Facebook acts as a media company. Owned acts like a website with a brand page. Earned occurs with various social media engagements that occur from consumers. 3. Identify how YouTube offers paid, owned, and earned media for advertisers. The answer for this question is like question 2. Instructors can show the similarities and differences between the two in terms of the presentation to make a connection on the ability for brands to achieve communication objectives. 4. In what way is Snapchat a good social media vehicle for earned ad messages? Instructors would prefer to get students to verbally discuss this in class since there is a significant skew towards young people using Snapchat, and the likelihood of instructors knowing examples etc. is low. 5. Explain why social media influencers are effective. Social media influencers act as a message source for brands, and in many cases, the key characteristic is source attractiveness. But instructors can discuss those situations where it may be source credibility. Instructors should bring into the discussion as to whether the disclosure or nondisclosure of material connection affects their opinion of the spokesperson. Also, a discussion can ensue on whether the message is perceived as an ad or something completely new. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-188

6. How does social media fit within an IMC plan? Social media is used for brand building with significant imagery for transformational motives such as fashion, travel, and home décor. It is also used for situations of direct marketing to encourage purchase intentions. As these two points indicate, social media fits within an IMC plan to achieve objectives, much like any other program used. This is an important point for instructors to raise which shows how new media still have the fundamental of existing media. Answers to Applied Questions 1. Select a favourite social media site for a brand and investigate how it achieves the communication objectives. Students should have fun with this exercise and instructors need to be ready to comment on whether the students apply the objective correctly and thoroughly. As part of this application, instructors can expand the points by looking at processing and ensuing action. 2. Visit a number of Facebook brand pages and evaluate the effectiveness of the brand posts in terms of creativity, message, and ability to reach the intended target audience. The point of this question is to see that the message and media interaction is significant in social media as seen in other media. One point that should emerge is the creative limitations of this, and most social media, due to the standardized format of presentation. In this sense, the ability to attract attention and facilitate processing may be argued to be less effective with so much similarity of presentation. 3. Visit a number of Instagram brand pages and evaluate the effectiveness of the brand posts in terms of creativity. How do they compare to the equivalent in Facebook? Questions two and three follow a similar idea of the message and media interaction, and this question involves a comparison of this point across two social media. Again, the degree of similarity of presentation of Instagram messages may influence processing, so instructors should delve into this point by comparing the two. 4. Read up about a favourite music artist on Wikipedia. Is it possible to view the content as earned media? While the concept of Wikipedia conjures encyclopedia, the nature of people contributing raises the question as to who they are and what motivates them to write. In addition, this raises the point as to how their information is presented etc. to influence the attitude of the receiver of the message. Some aspects of Wikipedia appear quite factual, while other aspects might be construed as evaluative. Thus, the message will influence in a certain direction much like any other message due to its content. Applying this user generated content along these lines suggests that the point of view taken on the Wikipedia page is consistent with posts people make in other social media, with a vetting mechanism, but it remains earned media exposure. 5. See the postings of many social media influencers and evaluate whether they are adhering to the guidelines set by Ad Standards. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-189

Students can check out the hashtags and messages from influencers to see if there are any violations of Ad Standards guidelines. It would be instructive if instructors asked students to show examples of good and bad messaging along these lines. This question can be discussed with the other influence question. 6. Select a product of interest and explain how a particular social media vehicle could be effectively used for paid, owned, and earned exposure. This question is designed to apply a specific context to an exact social media. For example, Honda for paid, owned, and earned in Facebook, Gucci for paid, owned, earned in Instagram, Cineplex for paid, owned, and earned in Snapchat. The point is for students to see what the plan would look like for a media in a social media vehicle. Additional Discussion Question (Not In Text) A. One of the most difficult objectives is creating a strong brand image. Discuss the factors that make brand building both difficult and possible in social media. A strong brand image goes beyond just creating awareness. Strong brands convey a very distinct impression of the brand; when their names are mentioned, something immediately comes to mind. Development of a strong brand requires that one has well developed, sustaining, and differentiating attributes that distinguish it from competitors. Brand image does not take place over night and can change over time. Brand images can also be enduring which require appropriate messaging. The marketer must be committed to the brand, always being consistent in all marketing efforts on its behalf. Social media is allowing marketers to build brand images in new ways with its combination of video and images along with social media engagement and brand’s responding to social media engagement from consumers. At this point, it is unclear whether this will be successful for all brands across many product categories. B. Explain the three ways in which a promotional planner can achieve positive marketing communication effects in social media. Popular terminology is “owned” media, “paid” media, and “earned” media. All three of these existed historically, but their saliency heightens with a change in the environment. Owned media exists with a brand’s own Facebook page (or website from a non-social media view). Companies have always distributed their own media in different ways; notably collateral material like brochures which represented “owned” media. A brand can have its own presence in social media with its own Facebook page, Twitter feed, or YouTube channel. Presently, a reasonable use of these social media can avoid paying the “paid” media features. Of course, if a brand chose to do so, it could make its marketing communication message go through each of these social media vehicles and pay for the delivery of ads just like what is done broadcast and print. Finally, media publicity represented “earned” media originally, and now it is seen with social media activity like tweeting or retweeting, sending links of YouTube messages to others or communicating via many Facebook options. This is an electronic manifestation of word-of-mouth communication, a key feature of “earned” media for a century or more.

IMC Exercise Have students visit social media websites and have them evaluate the sites based on the communication objectives discussed in the text, critiquing the site, and offering suggestions for improvement. IMC Comprehensive Project Develop the social media strategy by identifying the target audience and objectives which should be aligned with

CHAPTER 19: EVALUATING ISSUES FOR IMC INSTRUCTOR’S MANUAL Chapter Overview This final chapter evaluates the regulatory, social, ethical, and economic issues of advertising. Advertising is a powerful and influential force in society, and this text would not be complete without considering the perspectives and criticisms regarding its effects. Because of its high visibility, pervasiveness, and persuasiveness, advertising receives criticism from groups with different norms, values, and ethical standards that are the basis of this chapter. The first section of the chapter focuses on the regulation of advertising in Canada. This is followed by summarizing the criticisms of advertising from ethical and societal perspectives. Attention is then given to appraising the effects of advertising on the economy including its effect on consumer choice, competition, and product costs and prices. Learning Objectives 1. Describe Advertising Standards, the organization responsible for industry self-regulation in Canada. 2. Evaluate the ethical views of advertising. 3. Explain the social impact of advertising. 4. Examine the economic effects of advertising. Chapter and Lecture Outline I.

AD STANDARDS

The mandate of this industry body is to maintain community confidence in advertising. The primary activities of Ad Standards focus on the Code, complaint process, and clearance services. The section also summarizes noteworthy cases to understand how controversial complaints are handled. A.

The Code—is used as the criteria to assess whether a complaint is legitimate. It includes fourteen criteria in which a consumer complaint is evaluated. Interpretation guidelines are periodic bulletins providing advertisers with information on how AS sees trends or issues in advertising with respect to the Code criteria.

Complaint Process—Ad Standards oversees complaints from consumers and special interest groups, and trade disputes. An annual report summarizes consumer complaints.

Complaints for Debate— the most significant decisions of the AS are summarized for class debate.

Clearance Services—AS provides clearance services for advertisements for alcohol, cosmetics, non-prescription drugs, food, and for ads directed to children outside of Quebec.

II.

ETHICAL VIEWS OF ADVERTISING

While laws and regulations determine what advertisers can and cannot do, not every issue is covered by a rule or guideline. Situations arise where advertisers make decisions regarding appropriate and responsible actions based on ethical considerations rather than what is legal or within industry guidelines. Ethics are moral principles or values that govern the actions and decisions of an individual or group. While a particular action or practice may be within the law, this does not necessarily mean it is ethical. Ethical issues must be considered in making advertising decisions as a lapse in ethical standards or judgment can result in actions that are highly visible and can be damaging to a company’s reputation and image. Ethical controversy in advertising stems from the impact it has on society’s tastes, values, and lifestyles and typically focuses on issues of truthfulness, offensiveness, and the impact on children. A.

Advertising as Untruthful—one of the major attacks against advertising is that ads are misleading or untruthful and end up deceiving consumers. The issue of what constitutes deception is a difficult one. However, a concern of critics is the extent to which advertisers are deliberately untruthful or misleading in their advertising. Most large companies are unlikely to risk their reputation and image or subject themselves to prosecution by regulatory groups by making overtly false or misleading advertising claims. Companies involved in outright fraud or deception are often smaller companies using high-pressure direct marketing tactics to push their products. However, national advertisers will test the limits of industry and governmental rules and regulations and make claims that may give their brands an advantage in competitive markets. Critics of advertising question whether consumers are receiving proper information to make an informed choice since advertisers usually only present information that is favourable to their brands. They feel that advertising should be primarily informative in nature and not be permitted to use puffery or embellished messages. Others argue that advertisers should have the right to present the most favorable case for their products and services. They note that most consumers can protect themselves from being persuaded against their will and that regulatory bodies and mechanisms are sufficient to keep advertisers from deceiving or misleading consumers.

Advertising as Offensive—ads of certain products and particular types of appeal are offensive, tasteless, irritating, boring, or obnoxious. 1. Product Type—consumers are offended or irritated by advertising in a number of ways. Some are offended that a product is even advertised at all (such as contraceptives or personal hygiene products). A research study of prime-time commercials found a strong product class effect with respect to the type of ads consumers perceived as distasteful or irritating.. 2. Sexual appeals—the type of advertising appeals that have received the most criticism for being offensive or in poor taste are those using sexual appeals and/or nudity. These techniques are used as ways of gaining consumers’ attention and in may not even be appropriate to the product being advertised. Even if the sexual appeal is appropriate for the product, people may still be offended. Advertisers who use nudity and sexual suggestiveness argue that their ads are not offensive and are consistent with contemporary values and

lifestyles that are more accepting of this type of advertising. Another common criticism of sexual appeals is that they can be demeaning to people by depicting them as sex objects. C.

Advertising Influencing Children—one of the most controversial topics advertisers must deal with is the issue of advertising to children. Concern has also been expressed over marketers’ use of other promotional vehicles and techniques such as radio ads, point-of-purchase displays, premium offers, and the use of commercial characters as the basis for television shows. Arguments can be presented on both sides of this controversial issue. The Broadcast Code for Advertising to Children recognizes the debate to find a balance between these two points of view. First, arguments against advertising to children include: 

Children, especially young ones, are vulnerable to advertising because they lack the necessary experience and knowledge to understand and evaluate the purpose of persuasive advertising appeals.



Children cannot differentiate between commercials and television programs, do not perceive the selling intent of commercials, and cannot distinguish between fantasy and reality.

Arguments in favor of advertising to children include:

III.



Advertising is a part of life and children must learn to deal with it as part of the consumer socialization process of acquiring the skills needed to function in the marketplace.



Greater market knowledge of the marketplace gives teens a basis on which to evaluate ads and makes them more likely to recognize the persuasion techniques used by advertisers.

SOCIAL IMPACT OF ADVERTSISING

Concern is expressed over the impact of advertising on society, particularly with respect to its influence on values and lifestyles. Opinions regarding the value of advertising as an important social influence agent are negative and it is criticized for a number of reasons. A.

Advertising Encourages Materialism—critics claim that advertising has an adverse effect on consumer values by encouraging materialism, which refers to a preoccupation with material things rather than intellectual or spiritual concerns. Advertising can create materialism such as: 

creating needs rather than showing how a product or service fulfills them.



surrounding consumers with the images of the good life and suggesting that acquisition of material possessions leads to contentment and happiness and adds to the joy of living.



suggesting that material possessions are symbols of status, success, and accomplishment and/or will lead to greater social acceptance, popularity, or sexual appeal.

The criticism of advertising based on creating materialism assumes that materialism is undesirable and done at the expense of non-materialistic goals. Even if one assumes that materialism is undesirable, there is still the issue of whether advertising is responsible for creating and encouraging these values. This brings up the classic argument as to whether Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-194

advertising is a major force contributing to society’s values, such as materialism, or whether advertising merely reflects or mirrors the values of society and does not mold or shape them. B.

Advertising and Persuasion—another common criticism of advertising is that it has the power to manipulate consumers and make them buy things they do not need. Persuasive advertising, which plays on consumers’ emotions, anxieties, and social and psychological needs and desires, is viewed as undesirable. This type of advertising is seen as going beyond basic needs or necessities in appeals to sell products and services. Only informational advertising, which reports factual, functional information such as price performance, and other objective criteria, is viewed as acceptable and desirable. Defenders of advertising offer rebuttals to these criticisms. They argue that a substantial amount of advertising is informational in nature and that it is difficult to separate desirable, informational advertising from undesirable, persuasive advertising. They also note that lowerlevel needs in society are satisfied, and it is natural for consumers to be concerned with higher order needs, and for advertising to appeal to these wants and desires. They also note that advertising cannot make consumers do things against their will and they can defend themselves against advertising. Consumers do have a choice and can ignore ads for products that they do not really need.

Advertising and stereotyping—advertising is accused of creating and perpetuating stereotypes thorough its portrayal of certain groups including women and visible minorities. 1. Women—advertising has received a great deal of criticism for its stereotyping of women. Critics charge that advertising depicts women as being preoccupied with beauty, household duties, and/or motherhood or shows them as decorative objects or sexually provocative figures. Critics also argue that advertisers have failed to acknowledge the changing role of women in society. While sexism and stereotyping of women still exist, advertising’s portrayal of women is improving as ads recognize the changing role of women in society and the importance of portraying them realistically. 2. Visible minorities—recent Canadian trends and commentaries by practitioners suggest that the portrayal of minorities – particularly Chinese, South Asians and Black people can be improved in Canadian advertising even though there has been an improvement in the recent past.

Advertising and the media—since advertising plays such an important role in financing the media has led to concern on the part of many that advertisers can influence or even control the media. 1. Arguments supporting advertiser control of the media: 

The media’s dependence on advertising revenue makes them susceptible to influence such as exertion of control over editorial content, biasing editorial opinions, limiting coverage of controversial topics or stories, and influencing the program content of television.



Newspapers and magazines receive a substantial percentage of their total revenue from advertising, whereas commercial television and radio derive all their income from Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-195

advertising. Thus, the media may be reluctant to carry stories detrimental to companies who purchase large amounts of advertising time or space. 

There have been situations where advertisers have brought pressure to the media and influenced content or programming decisions. Some of these situations have been in response to pressure or the threat of boycotts from consumer groups opposed to program content.

2. Arguments against advertiser control: 

It is in the best self-interest of the media that advertisers do not influence them too much. To retain public confidence, they must report the news accurately and not be perceived as biased or attempting to avoid controversial issues. Media executives point to the vast number of topics they cover and the investigative reporting they do as evidence of their objectivity.



It can be argued that advertisers need the media more than the media need any individual advertiser, particularly when the medium reaches a large audience or does a good job of reaching a specific market segment.

The Canadian media are supported by advertising and allow consumers to enjoy them for a fraction of what it would cost without advertising. Although not perfect, a system of advertisingsupported media provides us with the best option for receiving information and entertainment and is more desirable than the alternatives of paying higher subscription costs, pay-per-view, or having government-supported media. E.

Advertising and social benefit—negative opinions regarding advertising have been around just if the field itself, and it is very unlikely that they will ever disappear. It is important that the advertising industry remains cognizant of, and continually addresses the issues and concerns over, the effects of advertising on society. Advertising is a powerful institution, but it will only remain so if consumers have faith and trust in the ads they see and hear every day. It is important to note that advertising and other integrated marketing communication programs, such as direct marketing and public relations, are also used to promote worthy causes and to deal with problems facing society such as drinking and driving, drug abuse, and are used to raise funds for a variety of humanitarian efforts.

IV.

ECONOMIC EFFECTS OF ADVERTISING

Considerable attention has been given to examining the economic impact of advertising. Advertising plays an important role in a free-market system by making consumers aware of products and providing them with information that can be used to make purchase decisions. However, advertising’s economic role goes beyond this basic function of information provision, as it is a powerful force that can affect the functioning of an entire economic system. It is viewed as a positive force that encourages consumption and fosters economic growth. On the other hand, critics of advertising view it as having detrimental economic effects by not only failing to perform its basic function of information provision adequately, but also adding to the costs of products and services and discouraging competition. Major issues regarding the economic effects of advertising are considered. Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-196

Effects on Consumer Choice—critics argue that advertising has a negative effect on consumer choice as large advertisers use their power to limit consumer options to well-advertised brands. Economists argue that large national advertisers use advertising to achieve differentiation and brand loyalty, at the expense of smaller brands. These large companies often end up charging a higher price and can achieve a more dominant position in the market than smaller companies that cannot compete against their large advertising budgets. When this occurs, advertising restricts choices and becomes a substitute for competition based on price or product quality. Defenders of advertising argue that it does not create brand monopolies and reduces the opportunities for new brand or product introduction. The opportunity to advertise gives companies the incentive to develop new brands and improve existing ones. Advertising is instrumental in helping companies inform consumers about their new products.

Effects on Competition—a common criticism economists have with advertising concerns its effect on competition. They argue that large firms with huge advertising budgets create a barrier to entry, which makes it difficult for other firms to enter the market. This in turn leads to less competition and higher prices. Large advertisers enjoy certain competitive advantages such as economies of scale in advertising, particularly with respect to factors such as media costs. While advertising may have an anticompetitive effect on a market, there is no clear evidence that advertising alone reduces competition, creates barriers to entry and thus increases market concentration. Defenders of advertising note that it is unrealistic to attribute a firm’s market dominance solely to advertising, as there are other factors to consider such as price, product quality, distribution effectiveness, production efficiencies, and competitive strategies. While market entry against large established competitors is difficult, companies with a quality product offered at a reasonable price find that advertising facilitates their market entry by making it possible to communicate with consumers.

Effects on a Product’s Price—A major area of debate among economists, advertisers, consumer advocates and policymakers concern the effects of advertising on product costs and prices. Critics offer reasons why advertising results in higher prices: 

The large sums of money spent on advertising and promotion are an expense that is passed on to consumers in the form of higher prices.

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Advertising increases product differentiation and adds to the perceived value of the product in the mind of the consumer, which allows advertised brands to command premium prices.

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There are often large differences in prices between national brands and private label brands that are physically and functionally similar, which is evidence of the added value created by advertising. Consumers pay higher prices for this added value.

Proponents of advertising offer several counterarguments to the claim that advertising increases prices: 

Price insensitivity and brand loyalty can be created by a number of non-advertising factors such as product quality, packaging, favorable usage experience and market position.

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Advertising can result in lower costs by helping firms achieve economies of scale in product and distribution and helping stimulate demand among mass markets.

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Advertising can make a market more competitive, which often leads to greater price competition. Studies have found lower consumer prices in markets permitting advertising for a product versus those that did not.

Economic Effects Summary—Economists’ perspectives regarding the effects of advertising can be divided into two principal models or schools of thought, each of which makes different assumptions regarding the influence of advertising on the economy: 1. Advertising Equals Market Power—this model reflects traditional economic thinking and views advertising as a way of changing consumers’ tastes, lowering their sensitivity to price, and building brand loyalty among buyers of advertised brands. This results in higher profits and market power for the large advertiser, reduces competition, and leads to higher prices and fewer choices for consumers. Proponents of this viewpoint are negative in their assumptions regarding the economic impact of advertising. 2. Advertising Equals Information—this model takes a more positive viewpoint of advertising’s economic effects, as it views advertising as providing consumers with useful information, increasing their price sensitivity, which moves them toward lower-priced products, and increasing competition in the market. Advertising is viewed as a means of communicating with consumers and telling them about a product and its major features and attributes. More informed consumers put pressure on firms to lower prices and improve quality. Proponents of this model assume that the economic effects of advertising are favorable and view it as contributing to efficient and competitive markets. These two perspectives take very divergent views regarding the economic impact of advertising as shown in Figure 18-6. It is unlikely that the debate over the economic effects of advertising will be resolved soon. Economists will continue to take a negative view of advertising and its effects on the functioning of the economy, while advertisers will continue to view it as an efficient way for companies to communicate with their customers and an essential component of the economic system.

Teaching Suggestion This final chapter evaluates advertising from a societal, ethical, and economic perspective. Advertising is a powerful institution in Canada and has been the target of considerable criticism regarding its social and economic impact. Much of the criticism of advertising concerns the specific techniques and methods used by advertisers, as well as advertising’s effect on societal values, tastes, lifestyles, and behaviour. It examines these criticisms of advertising along with the responses of advertisers to these attacks. It is important to recognize that there are usually two sides to each of these (e.g., critics vs. advertising industry). For example, one of the classic debates over the social impact of advertising concerns the issue of whether advertising is responsible for creating undesirable consumer values, such as materialism, or whether advertising merely reflects or mirrors the values of society rather than molding or shaping them. Arguments can be made on both sides, and it makes an interesting topic for student discussion.

A very good exchange of arguments regarding this issue can be found in articles by Richard W. Pollay, “The Distorted Mirror: Reflections on the Unintended Consequences of Advertising,” Journal of Marketing, April 1986 and Morris B. Holbrook, “Mirror, Mirror on the Wall, What’s Unfair in the Reflections on Advertising,” Journal of Marketing, July 1987 and a rejoinder by Pollay, “On the Value of Reflections in ‘The Distorted Mirror,” which also appeared in the July 1987 issue of JM. Stephen Fox’s book, The Mirror Makers: A History of American Advertising and Its Creators (New York: Morrow 1984) also provides an excellent discussion of arguments concerning the impact of advertising on society. Vignette 1. What is your opinion about the issues surrounding vaping and its advertising regulations? The story of controlling vaping products is familiar to people of a certain age who saw the development of cigarette advertising restriction occur decades ago. This vaping story has similarities in terms of two sides debating the issue, and governments intervening without any consistency. Nevertheless, current students might find the idea of restrictions beneficial or unnecessary, so this situation raises potential for a good debate. Instructors should ensure the debate maintains an advertising focus by discussing what message and media should be curtailed. One noteworthy aspect of the story is the use of public relations by the industry group and instructors could circle back to chapter 15 material. Instructors might want to compare the cigarette vs. vaping restrictions to see any differences and also compare the restrictions for alcohol advertising. Ethical Perspective 19-1 1. What position do you take on American Apparel’s new marketing communication in light of its history? Students will unanimously vote for a yes regarding the telecommunications firms receiving a fine. As for the other cases, there is less use and therefore less chance that feelings will be so strong. Even without much experience, most students can see the logic of the decisions of the other businesses. Instructors can look for more recent cases in the news or on the Competition Bureau’s website. The main teaching point of this vignette is to illustrate that there is strong government action for significant violation of laws that go beyond the AS’s scope. AS takes care of the simple cases, and a handful of controversial ones, however, as seen by these examples, the Competition Bureau steps in when there are significant dollars involved, and where there is potential for future dollars lost by consumers. Ethical Perspective 19-2 1. Can you recall other examples of advertising providing social benefit? Young students are likely to still recall social marketing ads directed to them as teens regarding the ill effects of consuming alcohol, among other items, and should be able to offer an opinion. The research cited does raise the issue of causality direction. For example, heavier drinkers more like to pay attention to ads. Instructors with a stronger research methods orientation can pursue this line of questioning. The vignette raises the question as to whether alcohol advertising encourages drinking or nor and where anti-drinking message curbs it uses. The slopes of the data analysis will show differences on this matter. In any case, instructors can bring about an application of all course Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-199

material to consider whether alcohol advertising can turn non-users into users, or light users into heavy users. Answers to Review Questions 1. Explain why you agree or disagree with the rulings of the rulings of the AS presented in this chapter regarding the Ford Focus and Kia automobile ads. The answers to this question are subjective. Arguments for or against should be based on students’ interpretation of Clause 14 of the Code and principles of the Guideline. Instructors might want to contrast these cases with the others listed or focus on contrasting these two cases with a few others that have had many complaints. The search function on the AS website allows for instructors to call up different examples from the past ten years or so. The intention of this question is to open the door for students to understand the content of the code. 2. Evaluate the arguments for and against advertising to children. Do you feel restrictions are needed for advertising and other forms of promotion targeted to children? There are numerous arguments that are offered by those individuals or groups opposed to advertising to children. They argue that children, especially young ones, are vulnerable to advertising because they lack the necessary experience and knowledge to understand and evaluate critically the purpose of persuasive advertising appeals. They also argue that preschool children cannot differentiate between commercials and television programs and do not perceive the persuasive, selling intent of commercials, and cannot distinguish between reality and fantasy. It has also been argued that advertising directed toward children creates materialism, stifles creativity, creates conflict between the parent and child, and hinders the development of moral and ethical values. In addition to advertising, marketers use other forms of promotion to target children such as premium offers and entertaining web sites on the Internet. Self-regulatory groups as well as government agencies have passed guidelines and legislation to ensure that control the use of these promotions in marketing toward children. Numerous arguments can be offered in favor of advertising to children. It can be argued that advertising is a part of life and children must learn to deal with it as part of the consumer socialization process. Advertising serves as an information source and teaches children the consumption skills necessary to function in the marketplace. It is also argued that it is the responsibility of the parents to help children interpret advertising, to monitor the shows their children watch and to decide whether to purchase a particular product for their children. 3. Discuss how attitudes toward the use of sex in advertising differ between men and women. Discuss the implications of these attitudinal differences for marketers who are developing ads for each gender. The results of an online survey of 200 men and 200 women concerning general opinions about sex in advertising revealed that it is a polarizing issue. While almost half of men indicated that they like sexual ads, very few women felt this way. Two-thirds of the men indicated that sexual ads have high stopping power and get their attention while only a quarter of the women thought the same. Women were also more likely to feel that there is too much sex in advertising, that sexual ads promote a deterioration of moral and social values, and that ads with sexual themes are demeaning of the female models that appear in them. Only a small percentage of both men and women Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-200

indicated that ads with sexual themes make them purchase a product. However, a higher percentage of men than women indicated that ads with sexual themes make them look at them and remember a brand. The results of this survey indicate that men are much more receptive to the use of sexual appeals than are women. Men are much more likely than women to notice an ad that has a sexual theme and remember the brand. They also like sexual ads more and are less likely to view them as demeaning to women. These finding suggest that ads with sexual appeals may be an effective way to get the attention of males and to register a brand name. However, the findings do not suggest that a sexual themed ad will be effective in getting either sex to purchase a product. For women, the results suggest that sexual appeals may not be as effective as they are less likely to notice the ad, even less likely to remember the brand and purchase interventions are extremely low. Moreover, the results show that women do not like ads with sexual themes and find them demeaning to women. Of course, it would be interesting to analyze these findings by age to determine if younger women were more open to sexual themed ads than older women. 4.

Describe the differences between the two major perspectives of the economic impact of advertising: “advertising equals market power” and “advertising equals information.” The Advertising Equals Market Power perspective reflects traditional economic thinking and views advertising as a way of changing consumers’ tastes, lowering their sensitivity to price, and building brand loyalty among buyers of advertised brands. This results in higher profits and market power for large advertisers, reduces competition in the market, and leads to higher prices and fewer choice alternatives for consumers. High prices and excessive profits give advertisers even more incentive to advertise their products and output is restricted compared with conditions of perfect competition. Proponents of this model are negative in their perspective regarding the economic impact of advertising. The Advertising Equals Information perspective views advertising as providing consumers with useful information, increasing their price sensitivity which moves them toward lower-priced products, and increasing competition in the market. Advertising is viewed as a means of communicating with consumers and telling them about a product and its major features and benefits. More informed and knowledgeable consumers result in pressure on companies to provide high quality products at lower prices, and efficient firms remain in the market, whereas inefficient firms leave as new entrants appear. Proponents of this model assume that the economic effects of advertising are favorable and view it as contributing to more efficient and competitive markets.

Answers to Applied Questions 1. Why are the laws for advertising regulation not applied to sponsorship and some other IMC tools? The crux of this question pertains to the fact that advertising is heavily regulated however other IMC programs are not under such scrutiny, yet have similar objectives (e.g., awareness, attitude) for communication and behavior (e.g., trial, repeat purchasing). For example, alcohol advertising is not permitted to have a role model for as a source of the message. However, alcohol companies are permitted to sponsor Hockey Canada even though Hockey Canada acts as an important role model in the life of children’s hockey. Hockey Canada certifies the coaches and administers all aspects of children’s hockey. Other examples are likely to be found. It would be incumbent upon the instructor to look at the regulations and see if there is a similar type of message delivered via other IMC Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-201

programs that appears to skirt the regulations found in advertising. Instructors might draw on the experience of tobacco promotion where much of it is prohibited from advertising to sponsorship to point-of-purchase displays. 2. Find the most offensive ad possible and express why it is so offensive. Apply the AS code to determine which guideline it violates. The Canadian author devotes a day to this material at the end of term with this question as the assignment given at the start of the term, with reminders throughout the course as ethical issues arise when discussing advertising. Often students have difficulty finding examples, a testament to the fact that much advertising is perfectly acceptable, and it is a small percentage that truly offends people. The minimal number of complaints the AS receives is also an indicator. Even further, students who do find examples are hard pressed to find Canadian examples where something is exceptionally offensive. Instructors looking for an extreme case to discuss can follow the story of Fluid Hair Salon based in Edmonton. Its story is documented in the AS complaints report, and followup news stories present an interesting example for interpretation. 3. Explain which position do you agree? “Advertising determines Canadian consumers’ tastes and values and is responsible for creating a materialistic society” or “Advertising is a reflection of society and mirrors it tastes and values.” This question presents the dilemma of whether advertising is responsible for creating materialistic values in consumers or whether it mirrors the values of society rather than molding or shaping them. Those agreeing with the first position argue that advertising encourages materialistic values by seeking to create needs rather than showing how a product fulfills them; surrounding consumers with images of the good life and suggesting that the acquisition of material possessions leads to contentment and happiness and adds to the joy of living; and suggesting that material possessions are symbols of status, and success and/or will lead to social acceptance, popularity, or sexual appeal. Those supporting the second position argue that consumers’ values are defined by the society in which they live, and value systems are the result of extensive long-time socialization or acculturation. They argue that advertisers develop ads in response to prevailing values and are thus reflecting tastes and values rather than molding or shaping them. 4. Do you believe advertising power has ever restricted choice in buying products? Some critics argue that advertising has a negative impact on consumer choice, as large advertisers use their power to limit consumers’ options to a few heavily advertised brands. They argue that advertising is used to achieve differentiation and brand loyalty, which occurs at the expense of smaller brands. Defenders of advertising argue that it does not create brand monopolies and reduce opportunities for new companies and/or brands to enter the market. The opportunity to advertise gives companies the incentive to introduce new brands and improve existing ones. Advertising is viewed as playing a critical role in informing consumers about new products and making it possible for new companies to enter the market. Thus, it helps expand consumer choice rather than limiting it. Arguments that advertising increases the costs of products and services include the fact that the large sums of money spent on advertising constitute a business expense that must be covered and thus is passed on to consumers in the form of higher prices. Advertising can also result in higher Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-202

prices by increasing product differentiation and adding to the perceived value of the product in the mind of the consumer. Brands that have achieved high levels of differentiation or perceived value can command a premium price. Proponents of advertising argue that it can result in lower costs of products and services by helping firms achieve economies of scale in production, distribution, and marketing by stimulating demand among mass markets. Advertising can also lead to lower prices by making a market more competitive, which usually leads to greater price competition. Studies of several industries have shown that advertising results in lower consumer prices. Additional Discussion Questions (not in text) A. Discuss the role of ethics in advertising and promotion. How do ethical considerations differ from legal considerations? While laws and regulations determine what advertisers can and cannot do, not every issue is covered by a rule or guideline. Ethics involve the use of moral principles and values in evaluating a decision or action. Ethical considerations are important in advertising as the use of a particular type of ad or the targeting of a specific group may be legal but may not be ethical. Ethical issues must be considered in making advertising and promotion decisions as a lapse in ethical standards or judgment can result in actions that are highly visible and often very damaging to a company’s image or reputation. Ethical considerations differ from legal considerations in that ethics involves individual or group moral principles or values and can be subjective while legal considerations are much more objective. Legal considerations can be enforced through the regulatory process while ethical problems can only be remedied by voluntary actions of those who are responsible for the unethical actions. B. A common criticism of advertising is that it stereotypes women. Discuss how advertising might stereotype men as well. Find an example of an ad that does this. Advertising has received a tremendous amount of criticism for stereotyping women. Critics argue that advertising depicts women as homemakers or mothers and has failed to acknowledge the changing role of women in society. They also note that ads portray women as decorative objects or sexually provocative figures. While advertising is often criticized for its depiction of women, critics argue that men are often portrayed negatively as well. Some ads poke fun at men’s shortcomings while others use reverse sexism. Critics argue that men are often portrayed as insensitive, as chauvinists, as sexists and as narrow-minded. Several companies have been criticized for using ads that take slaps at men. For example, a print ad for the clothing accessory Bodyslimmers used a headline that read, “While you don’t necessarily dress for men, it doesn’t hurt, on occasion, to see one drool like the pathetic dog that he is.” Another example is a print ad for Liz Claiborne shoes that used the tagline, “Aren’t there enough heels in your life?” The American Floral Marketing Council was also criticized for using a negative image to portray men in its point-of-purchase ad campaign. A poster from the campaign featured a floral arrangement in front of some rocks, resting on nuts and bolts, with the tagline, “Romancing a stone? Send him flowers.” Students should be asked to find other examples of ads that might be portraying men in a negative manner. C.

Advertisers complain that the regulatory bodies and TV networks scrutinize commercials more closely than the shows. Do you think that commercials should be held to higher standards than programs? Why or why not? Chapter 1 – Advertising & Promotion, 8th Canadian Edition ©2023 McGraw Hill Ltd. 1-203

Advertisers often complain about the double standard that exists for commercials versus TV programs, noting that even the most suggestive commercials are bland compared with the sex and violence that appears in television programs. They argue that the regulatory bodies and networks should be more willing to accept commercials that use techniques such as partial nudity or suggestiveness, given what appears in the programs. The networks argue that they must scrutinize commercials more carefully because advertising encourages people to imitate behaviours, whereas programs are merely meant to entertain. Network executives also note the complaints of parents who are concerned about their children seeing certain ads, since they cannot always be there to change the channel or turn off the set when a suggestive or provocative ad comes on TV. IMC Exercise Find several ads that you feel are examples of negative social consequences of advertising discussed in the text such as the following: 

Ads that are offensive or in poor taste because of the product or service they advertise, the type of appeal they or the manner of presentation used.

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Ads that may have an adverse effect on consumer values by encouraging materialism.

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Ads that encourage consumers to purchase a product that they really do not need.

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Ads that stereotype women, men, an ethnic group such as Chinese, South Asians and Black people or some other group such as the elderly.

Be prepared to explain why you feel these ads are examples of negative advertising. How do you think the advertisers might justify the use of the ads you have chosen? IMC Comprehensive Project As a final part of their IMC Comprehensive project, students should be asked to evaluate their advertising and promotional campaigns from a social and ethical perspective. The specific assignment for this chapter is as follows: IMC Project Assignment for Chapter 19 By now you should have developed a completed integrated marketing communications plan for the product or service you chose to promote. The final part of your project requires that you evaluate your IMC plan from a social and ethical perspective. Do you feel you can defend your advertising and promotional plan from a social and ethical perspective? Are there any potential negative social consequences of your advertising and promotional plan? Could any group find your advertising offensive or in poor taste?