INSTRUCTOR MANUAL for Advertising and Integrated Brand Promotion, 9e Angeline Scheinbaum, Thomas O'G by StudyGuide

Instructor Manual

Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 1: The World of Advertising and IBP

TABLE OF CONTENTS

Part 1: Advertising and Integrated Brand Promotion in Business and Society ............ 2 Purpose and Perspective of the Chapter ......................................................... 2

Cengage Supplements .................................................................................................. 3 Chapter Objectives ....................................................................................................... 3 Complete List of Chapter Activities and Assessments ..................................... 3 Key Terms..................................................................................................................... 4 What's New in This Chapter ......................................................................................... 8 Chapter Outline ..................................................................................................... 8 Additional Discussion Questions ................................................................................ 19

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 1: The World of Advertising and IBP

PART 1: ADVERTISING AND INTEGRATED BRAND PROMOTION IN BUSINESS AND SOCIETY This book is divided into 5 parts. When starting a new part of the text, it is worth alerting the students to the focus of the chapters within the part. Part 1 sets the tone for the study of advertising. The chapters in this part emphasize that advertising is much more than the old-style mass media messages of the past. But advertising is now more diverse and dynamic and is part of a process called integrated brand promotion (IBP). IBP is the process of using different promotional techniques and tools—from television ads to iPad broadcasts—that send messages about brands to consumers. The rapid ascent of digital media—particularly social networking sites like Facebook and Twitter, have radically changed the landscape for advertising and IBP. Advertising and IBP communications are not just marketing messages. They are also part of a social communication process that has evolved over time with changes in culture, technology, and business strategies. The “brand” plays a leading role in communications. Consumers know brands because they hear about them and use them every day—Apple, Nike, Pantene, Starbucks, and literally hundreds of others. Consumers also know (and learn) by using them and by seeing them being used in society. This first part of this book lays out the broad landscape of the advertising and IBP processes that expose us to brands and what they have to offer.

PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to understand that advertising is distinctive and recognizable as a form of communication by its three essential elements: its paid sponsorship, its use of mass media, and its intent to persuade. It cannot be effective unless some form of communication takes place between the company and the audience. Many different types of organizations use advertising to achieve their business purposes. The world of branding is going through enormous change. Marketing has become much more experiential, as seen in the sustained growth of the sponsorship and event marketing industry. The new world around advertising and IBP centers around the need for measuring these marketing tools and knowing that the lines between information, entertainment, networking, and commercial messages are blurring daily. No aspect of advertising or IBP stands alone—each is connected to the environment, under the larger umbrella of business and society, and each plays a role in communicating with consumers about brands.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 1: The World of Advertising and IBP

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center. • • • • •

Transition Guide (provides information about what is new from edition to edition) Educator’s Guide (describes assets in the platform with a detailed breakdown of activities by chapter with seat time) PowerPoint (provides text-based lectures and presentations) Test Bank (contains assessment questions and problems) Guide to Teaching Online (provides information about the key assets within the product and how to implement/facilitate use of the assets in synchronous and asynchronous teaching environments)

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 1-1

Describe the new world of branding.

1-2

Define what advertising, advertising campaigns, and integrated brand promotion (IBP) are and what they can do.

1-3

Explain advertising as a communication process via a model of mass mediated communication.

1-4

Describe the different ways of classifying audiences for advertising and IBP.

1-5

Explain advertising as a business process.

1-6

Identify the various types of advertising and the economic effects of advertising.

1-7

Identify the shift from advertising to integrated marketing communications to IBP.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 1: The World of Advertising and IBP

content you would like to emphasize in your class based on your objectives. For additional guidance, refer to the Teaching Online Guide. Chapter Objective 1-1 1-2 1-2 1-3 1-3 1-5 1-5 1-6 1-7

Activity/Assessment Icebreaker Knowledge Check 1 Discussion Activity 1 Discussion Activity 1 Debrief Discussion Activity 2 Discussion Activity 2 Debrief Written Reflection Activity Written Reflection Activity Debrief Knowledge Check 2 Knowledge Check 3

Source (i.e., PPT slide, Workbook) PPT Slide 3 PPT Slide 8 PPT Slide 16 PPT Slide 17 PPT Slide 22 PPT Slide 23 PPT Slide 42 PPT Slide 43

Duration

PPT Slide 51 PPT Slide 57

5 minutes 5 minutes

10-15 minutes 5 minutes 10-15 minutes 10-15 minutes 10 minutes 10 minutes 10-20 minutes 10-15 minutes

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KEY TERMS Accommodation a mediating process that lies between the production and reception phases. Accommodation (and negotiation) are the ways in which consumers interpret ads, decoding what the source has encoded. Advertisement A specific message that an organization has placed to persuade an audience. Advertising A paid, mass-mediated attempt to inform, persuade, or remind. Advertising campaign A series of coordinated advertisements and other promotional efforts that communicate a single theme or idea. Audience A group of individuals who may receive and interpret messages sent from advertisers through mass media. Brand A name, term, sign, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers. Brand advertising Advertising that communicates the specific features, values, and benefits of a particular brand offered for sale by a particular organization.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 1: The World of Advertising and IBP

Brand equity Developed by a firm that creates and maintains positive associations with the brand in the mind of consumers, building brand loyalty. Brand extension An adaptation of an existing brand to a new product area; also known as brand variant. Brand loyalty A decision-making mode in which consumers repeatedly buy the same brand of a product as their choice to fulfill a specific need. Chief marketing officers (CMOs) The executive who is in charge of marketing strategy. Client/Sponsor The company or organization that pays for advertising. Also called the sponsor. Cooperative advertising (Co-op advertising) The sharing of advertising expenses between national advertisers and local merchants. Also called co-op advertising. Corporate advertising Advertising intended to establish a favorable attitude toward a company as a whole, not just toward a specific brand. Delayed-response advertising Advertising that relies on imagery and message themes to emphasize the benefits and satisfying characteristics of a brand. Demographics Descriptors of people or consumers such as their age, gender, or income, which help with target marketing. Differentiation The process of creating a perceived difference, in the mind of the consumer, between an organization’s brand and the competition. Direct response Copy research method measuring actual behavior of consumers. Economies of scale The ability of a firm to lower the cost of each item produced because of high-volume production. External position The competitive niche a brand pursues. Global advertising Developing and placing advertisements with a common theme and presentation in all markets around the world where the firm’s brands are sold. Government officials and employees One of the five types of audiences for advertising; includes employees of government organizations, such as schools and road maintenance operations, at the federal, state, and local levels. Gross domestic product (GDP) A measure of the total value of goods and services produced within an economic system.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 1: The World of Advertising and IBP

Household consumers The most conspicuous of the five types of audiences for advertising; most mass media advertising is directed at them. Inelasticity of demand Strong loyalty to a product, resulting in consumers being less sensitive to price increases. Institutional advertising Corporate advertising that takes place in the trade channel. This form of advertising is used most prominently by retailers. Integrated brand promotion (IBP) The process of using a wide range of promotional tools that work together to create widespread brand exposure. It is brand focused. Integrated marketing communications (IMC) The process of using promotional tools in a unified way so that a synergistic communications effect is created for a brand. Internal position The niche a brand achieves with regard to the other similar brands a firm markets. International advertising The preparation and placement of advertising in different national and cultural markets, outside the home market. Local advertising Advertising directed at an audience in a single trading area, either a city or state. Marketing 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. Marketing mix The blend of the four responsibilities of marketing—conception, pricing, promotion, and distribution—used for a particular idea, product, or service. Market segmentation The process of breaking down a large, widely varied market into submarkets that are more similar than dissimilar in terms of consumer characteristics. Members of a trade channel One of the five types of audiences for advertising; the retailers, wholesalers, and distributors targeted by producers of both household and business goods and services. Members of business organizations One of the five types of audiences for advertising; the focus of advertising for firms that produce business and industrial goods and services. Mobile marketing Directing advertising and IBP campaigns to consumers’ mobile devices—smartphones and tablet devices.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 1: The World of Advertising and IBP

National advertising Advertising that reaches all geographic areas of one nation. Negotiation Along with accommodation, the ways in which consumers interpret ads, decoding what the source has encoded to reach an agreement of brand meaning. Positioning The marketer’s attempt to give a brand a certain meaning and distinct place in the consumer’s mind, relative to its competitors. Primary demand stimulation Using advertising to create demand for a product category in general. Professionals One of the five types of audiences for advertising, defined as doctors, lawyers, accountants, teachers, or any other professionals who require special training or certification. Psychographics A form of market research that emphasizes the understanding of consumers’ activities, interests, and opinions. Purpose-driven marketing Marketing (including advertising and IBP) that helps the organization achieve its long-term social purpose. Regional advertising Advertising carried out by producers, wholesalers, distributors, and retailers that concentrate their efforts in a particular geographic region. Repositioning Returning to the process of segmenting, targeting, and positioning a product or service to arrive at a revised positioning strategy, to address changing market or competitive conditions. Segment A portion of the market. Selective demand stimulation Using advertising to stimulate demand for a specific brand within a product category. Social meaning What a product or service means in a societal context. Source The originator or creator of the content. Symbolic value What a product or service means to consumers in a nonliteral way. Target audience A particular group of consumers singled out for an advertisement or IBP campaign. Trade journals Magazines and websites published specifically for members of a trade, containing highly technical articles. Value A perception by consumers that a product or service provides satisfaction beyond the cost incurred to acquire it.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 1: The World of Advertising and IBP

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WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition: •

New key terms: o Accommodation o CMO o Demographics o Psychographics o negotiation

•

New support articles from: o Journal of Consumer Research o Journal of Advertising o Journal of Marketing o Journal of Advertising Research o International Journal of Advertising o JCIRA o Journal of Marketing Research o Journal of Consumer Research

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The New World of Advertising and Integrated Brand Promotion (LO 1, PPT Slides 4-8) i. Consumer preferences and new technologies are reshaping the communication environment. ii. The lines between information, entertainment networking, and commercial messages are blurring. iii. The mass media are not dead, but they are being supplemented and supported by all sorts of new ways to reach consumers.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 1: The World of Advertising and IBP

iv. Analysts speculate that advertising, IBP, and marketing overall will be more digital, more interactive, and more social. v. Mobile marketing is communicating with target markets through mobile devices like smartphones or iPad or Surface tablet devices. A. Old Media/New Digital Media—It’s All about the Brand i. No matter how much technology changes or how many new media options and opportunities are available for delivering messages—it’s still all about the brand! ii. The use of Facebook or Twitter does not change the fundamental challenge and opportunity—communicating effectively about the brand and the brand’s values. B. Knowledge Check 1 (PPT Slide 8, Time duration: 5 minutes) i. What is the industry term that collectively refers to the marketing of informational content such as videos or posts for target audiences online and on social media? a. Answer: D. Content marketing—Content marketing is a hot industry term that collectively refers to the marketing of informational content, such as videos or posts for target audiences online and on social media. Businesses use content marketing in a variety of ways to support growth, so the ability to gauge results is important. II. What Advertising, Advertising Campaigns, and Integrated Brand Promotion Are and What They Can Do (LO2, PPT Slides 9-17) i. Despite the importance of advertising and IBP to firms, it is not a process that the average person understands or values. ii. Many people believe advertising deceives others but rarely themselves. iii. Most think it’s a semi-glamorous profession but one in which people are either morally bankrupt con artists or pathological liars. iv. At worst, advertising is seen as hype, unfair capitalistic manipulation, banal commercial noise, mind control, postmodern voodoo, or outright deception. At best, the average person sees advertising as amusing, informative, somewhat annoying, sort of helpful, and occasionally hip. v. Sometimes advertising is hard-hitting and powerful; at other times, it’s boring and ineffective. vi. Advertising is anything but unimportant -it plays a pivotal role in world commerce and in the way people experience and live their lives. vii. It is part of the language and culture, it is a complex communication process, a dynamic business process, and now a part of the social interaction process. A. Advertising Defined

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 1: The World of Advertising and IBP

Advertising is a paid, mass-mediated attempt to persuade. a. Paid means that a client or sponsor is involved. b. Public service announcements (PSAs) are not ads technically. c. Mass mediated means that the advertising is delivered through a communication medium designed to reach more than one person, typically a large number of people. ii. Advertising is widely disseminated through familiar means—television, radio, newspapers, and magazines—and other media such as direct mail, billboards, video games, the Internet, tablets, and smartphones. a. Attempt to persuade means that ads are designed to get someone to do something. B. Integrated Brand Promotion Defined i. Integrated Brand Promotion (IBP) is the process of using a wide range of promotional tools that work together to create widespread brand exposure. ii. IBP uses a wide range of tools including: a. Advertising in mass media b. Sales promotions (coupons, premiums, contests, etc.) c. Point-of-Purchase (in-store) advertising d. Direct marketing (catalogs, infomercials, email) e. Personal selling f. Internet advertising (display, banner, pop-up/pop-under) g. Social networks h. Blogs i. Podcasting/smartphone messaging j. Event sponsorship k. Brand entertainment (product placement on TV shows, in movies) l. Outdoor signage/billboards m. Public relations n. Influencer marketing o. Corporate advertising C. Advertisements, Advertising Campaigns, and Integrated Brand Promotion i. An advertisement refers to a specific message that an organization has created to persuade an audience. ii. An advertising campaign is a series of coordinated advertisements that communicate a reasonably cohesive and integrated theme about a brand.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 1: The World of Advertising and IBP

iii.

The executive especially interested in IBP is the chief marketing officer (CMO). D. A Focus on Advertising i. Integrated brand promotion is a key concept associated with advertising. It is of great importance to the contemporary marketing effort. E. Discussion Activity 1 (PPT Slide 16, Time duration 10-15 minutes) i. Companies use commercials as one way of getting their company name or product out to consumers. To do so, they must find ways to make the company or product memorable. 1. What are some memorable ads? a. Answer: Answers will vary. If you used the Icebreaker at the start of the slide deck, you may wish to extend that discussion here. 2. What makes you remember them? a. Answer: Possible examples of memorable ads might include Built Ford Tough; the bell ringing in Taco Bell commercials; the Budweiser Clydesdales; dogs driving Subaru cars; Flo from Progressive insurance; the emus from the Liberty Mutual commercials; We Buy Any Cars and its catchy tune. F. Discussion Activity 1 Debrief (PPT Slide 17, Time duration: 10-15 minutes) i. If you were working with a new restaurant in your town that uses only fresh ingredients from local farms. 1. How might you convey the theme of its brand in a memorable way? a. Answer: Answers will vary. Options can include showing images of the local farms, showing fresh ingredients being picked, loaded, and delivered. Showing them cleaned and cut, ready for serving to customers could also be shown. Social media sites, websites, and commercials could also discuss the sources of their ingredients and their commitment to using local farms, etc. III. Advertising as a Communications Process: A Model of Mass-Mediated Communication (LO 3, PPT Slides 18-23) i. Communication is a fundamental aspect of human existence, and advertising is one of these communications. ii. A contemporary model of mass-mediated communication is presented (Figure 1.9) showing mass communication as a process where people, institutions, and messages interact. It has two major components:

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 1: The World of Advertising and IBP

production (by the sender of the message) and reception (by the receiver of the message). Between production and reception are the mediating (interpretation) processes of accommodation and negotiation. iii. The process of production creates the content of a mass communication. An advertisement, like other forms of mass communication, is the product of institutions (such as corporations, organizations, advertising agencies, and governments) interacting to produce content (what is created for a print ad, television ad, radio ad, podcast, or on a computer screen at a company’s website). iv. It is important to recognize that the content that the advertiser puts into a message is not necessarily the same as the meaning an audience takes from a message. a. Accommodation and negotiation are the ways in which consumers interpret ads. b. Each individual receives and interprets communication according to unique values and experiences. A. Discussion Activity 2 (PPT Slide 22, Time duration: 10 minutes) i. Looking at the IBP in Action from the previous slide, consider the following: 1. What does the social media post and commercial screenshot convey to you about Panera Bread? a. Answer: Answers will vary. Comments can include the clean layouts with natural colors. The images of the food are enticing with brightcolored vegetables and plenty of ingredients. The initial text also conveys that this food isn’t typical of other restaurants—it’s unique. The screen capture from the commercial shows a young child eating, which would convey that kids will eat it. 2. Who do they reach through the ads shown? a. Answers will vary. They can include parents, possibly children, anyone who enjoys soups and sandwiches, as well as people who enjoy fresh food, since the sandwiches look to be made with fresh vegetables, meats, and cheese. IV. Different Ways of Classifying Audiences for Advertising and IBP (LO 4, PPT Slides 24-29) ii. An audience is a group of individuals who receive and interpret messages sent from companies or organizations.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 1: The World of Advertising and IBP

iii.

A target audience is a particular group of consumers singled out by an organization for an advertising or IBP campaign. A. Audience Categories i. Household consumers are the most conspicuous audience in that most mass media advertising is directed at them. ii. Members of business organizations are the focus of advertising for firms that produce business and industrial goods and services, such as office equipment, production machinery, supplies, and software. iii. Members of a trade channel include retailers, wholesalers, and distributors. a. These members of the trade channel are a target audience for producers of both household and business goods and services. iv. Professionals form a special target audience and are defined as doctors, lawyers, accountants, teachers, electricians, or any other professional group that has special training or certification. a. Professionals merit special communications. b. Trade journals, like Electrical Contractor, are magazines published specifically for members of a trade and carry highly technical articles. v. Government officials and employees constitute an audience in themselves due to the large dollar volume of buying that federal, state, and local governments do. B. Audience Geography i. Global advertising is advertising that is used worldwide with only minor changes in the visual and message content. ii. It is rare for a brand to have universal cultural appeal, but when it does, global advertising can be used. iii. International advertising occurs when firms prepare and place different in different national markets for the same brand outside their home market. iv. National advertising reaches all geographic areas of a single nation. v. Regional advertising is carried out by producers, wholesalers, distributors, and retailers that concentrate their efforts in a relatively large, but not national, geographic region. vi. Local advertising is directed at an audience in a single trading area, either a city or state.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 1: The World of Advertising and IBP

a. Cooperative advertising or co-op advertising is when national companies will share advertising expenses with local dealers. V. Advertising as a Business Process (LO 5, PPT Slides 30-43) A. The Role of Advertising in the Marketing Mix i. Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. ii. The marketing mix refers to the four primary areas of responsibility and decision making in marketing. iii. The Role of Advertising in Brand Management a. A brand is a name, term, sign, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers. b. Advertising plays a critical role in brand development and management. c. Advertising affects brand development and management in five important ways. iv. Information and Persuasion a. Information and persuasion: Advertising informs and persuades target audiences about the values a brand has to offer. v. Introduction of New Brand or Brand Extensions (Variants) a. A brand extension (also referred to as a brand variant) is an adaptation of an existing brand to a new product area. 1. Advertising is essential to inform consumers about the extension. vi. Building and Maintaining Brand Loyalty Among Consumers a. Brand loyalty occurs when a consumer repeatedly purchases the same brand to the exclusion of competitor’s brands. b. Brand equity is a set of brand assets linked to a brand, its name, and symbol. vii. Creating an Image and Meaning for the Brand a. Advertising can communicate how a brand fulfills needs and desires and therefore plays an important role in attracting consumers to brands they find useful and satisfying. viii. Building and Maintaining Brand Loyalty Within the Trade a. Advertising and integrated promotions can influence brand preferences in wholesalers and retailers. b. Marketers can provide training, point-of-purchase advertising displays, and traffic-building events as well as discount pricing and premiums.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 1: The World of Advertising and IBP

ix. The Role of Advertising in Market Segmentation, Differentiation, and Positioning a. Advertising is critical to segmentation, differentiation, and positioning strategies: 1. Market segmentation is the process of breaking down a large, widely varied (heterogeneous) market into submarkets, or segments, that are more similar in terms of consumer characteristics. 2. Differentiation is the process of creating a perceived difference, in the mind of the consumer, between a brand and its competition. 3. Positioning is the process of designing a brand so that it can occupy a distinct and valued place in the target consumer’s mind relative to other brands. There are three positioning strategic decisions to be made. • A firm must decide on the external position for a brand—that is, the niche the brand will pursue relative to all the competitive brands on the market. • An internal position must be achieved with regard to the other, similar brands the firm itself markets. Finally, repositioning occurs when a firm believes that a brand needs to be revived or updated to address changing market or competitive conditions. x. The Role of Advertising in Contributing to Revenue and Profit Generation a. Advertising communicates persuasive information to audiences based on the values created in the marketing mix related to the product, its price, or its distribution. b. When an organization creates large-scale demand for its brand, the quantity of product produced is increased, and economies of scale lead to lower unit production costs. 1. Advertising contributes to demand stimulation by communicating to the market about the features and availability of a brand. 2. By contributing to demand stimulation, advertising then contributes to the process of creating these economies of scale, which ultimately translates into higher profits per unit for the organization. 3. When consumers are brand loyal, they are generally less sensitive to price increases for the brand - this is known as inelasticity of demand.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 1: The World of Advertising and IBP

4. Advertising contributes directly to brand loyalty by persuading and reminding consumers of the satisfactions and values related to a brand and why they want to choose that brand over competitors’ brands. B. Written Reflection Activity (PPT Slide 42, Time duration 10-20 minutes) i. Advertising is critical in maintaining brand loyalty. Consider the following questions and be prepared to share your responses with the class. 1. Do you find that you are loyal to a particular brand, whether it is conscious or not? (Ex. Cell phone maker, automaker, coffee brand, etc.) a. Answers will vary. Students may find, consciously or unconsciously, that they tend to lean more toward buying coffee from Starbucks, or buying a Chevy or Ford vehicle, or that all of their electronics are made by Apple, LG, or Samsung. They may also find that they prefer to purchase a specific line of clothing, such as Adidas or Under Armour over other brands. 2. What is it about the brand that brings you back repeatedly? a. Answers will vary. In some cases, they may move this way out of habit, or it is something they grew up with and it is familiar to them. Some others may find they had better service or performance from a specific product and prefer to stay with it. If they buy a Chevy that breaks down all the time, but they buy a Toyota vehicle that has no issues at all, then the next time they purchase a vehicle they may remember that Toyota seemed to be a better quality. C. Written Reflection Activity Debrief (PPT Slide 43, Time duration 10-15 minutes) 1. Did any of your answers in the previous activity surprise you? a. Answers will vary. Some may find that they blindly showed preference to one product over another, whether it’s because the advertising stayed with them while they shopped, or if they had a belief that one product is better than another (“real” vs. generic brands). Businesses are considered to have established strong brand quality when they are able to create and sustain positive brand association in the minds of consumers over time. 2. Are there any brands that you avoid? a. Reasons for avoiding certain brands will vary, including bad experiences, not enjoying one product as much as another,

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 1: The World of Advertising and IBP

recommendations from friends, bad experience with the customer service, or even social or political associations. 3. Did you learn anything that you could apply to your own advertising plans? a. Answers will vary. Students may realize what encourages them to shop the way that they do and can use that toward encouraging others the same way. VI. Types of Advertising and the Economic Effects of Advertising (LO 6, PPT Slides 44-51) A. Types of advertising i. Primary versus Selective Demand Stimulation a. In primary demand simulation, a company would be trying to create a demand for an entire product category. The purpose of selective demand stimulation is to point out a brand’s unique benefits compared to competition. The true power of advertising lies here. ii. Direct versus Delayed Response Advertising a. Direct response advertising asks consumers to act immediately. b. Delayed response advertising relies on imagery and message themes that emphasize the benefits and satisfying characteristics of a brand. iii. Corporate versus Brand Advertising a. Corporate advertising is not designed to promote a specific brand but is meant to create a favorable attitude toward a company as a whole. b. Brand advertising communicates the specific features, values, and benefits of a particular brand offered for sale by a particular organization. c. Another form of corporate advertising is carried out by members of a trade channel, mostly retailers. When corporate advertising takes place in a trade channel, it is referred to as institutional advertising. B. The Economic Effects of Advertising i. Advertising’s Effect on Gross Domestic Product a. Gross domestic product (GDP) is the measure of the total value of goods and services produced within an economic system. Advertising is related to GDP in that it can contribute to levels of overall consumer demand when it helps introduce new products, such as DVRs, smartphones, or alternative energy sources. ii. Advertising’s Effect on Competition a. Advertising is alleged to stimulate competition and therefore motivate firms to strive for better products, better production methods, and other

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 1: The World of Advertising and IBP

competitive advantages that ultimately benefit the economy as a whole. Large advertising expenditures, though, can act as barriers to entry in a market. iii. Advertising’s Effect on Prices a. There is no consistent and predictable relationship among advertising, spending, and sales—it all depends on the product category, competition, size of market, and complexity of the message. iv. Advertising’s Effect on Value a. Value refers to a perception by consumers that a brand provides satisfaction beyond the cost incurred to obtain that brand. b. Symbolic value refers to what a product or service means to consumers in a nonliteral way. c. Social meaning refers to what a product or service means in a social context. D. Knowledge Check 2 (PPT Slide 51, Time duration: 5 minutes) i. “The Incredible, Edible Egg” is a slogan that was part of which type of advertising campaign? a. Answer: B. Primary demand stimulation—In primary demand simulation, a company tries to create demand for an entire product category as opposed to a specific brand. The “Got Milk?” campaign is another example of primary demand stimulation. VII. From Advertising to Integrated Marketing Communications to Integrated Brand Promotion (LO 7, PPT Slides 52-57) a. Advertising is only one of many promotional tools a marketer can use to communicate about a brand. b. Beginning in about 1990, the concept of mixing various promotional tools was referred to as integrated marketing communications (IMC). c. IBP involves the use of various promotional tools, including advertising, in a coordinated manner to build and maintain brand awareness, identity, and preference. IBP emphasizes that coordinated messages must have brandbuilding effects, not just communications effects. B. Knowledge Check 3 (PPT Slide 57, Time duration: 5 minutes) i. Promotional strategies in the 21st century place the emphasis on which of the following? a. Answer: C. Brand—The reality of promotional strategies is the 21st century demands that the emphasis on communication give way to an emphasis on

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 1: The World of Advertising and IBP

the brand. Organizations of all types are not interested in merely communicating with potential and existing customers through advertising and promotion. They want to build brand awareness, identity, and preference through advertising and promotion. [return to top]

ADDITIONAL DISCUSSION QUESTIONS The following are discussion questions that do not appear in the text, PPTs, or courseware (if courseware exists) – they are for you to use as you wish. You can assign these questions several ways: in a discussion forum in your LMS; as wholeclass discussions in person; or as a partner or group activity in class. 1. How has the world of advertising and integrated brand promotion changed over time? Are these changes the result of companies striving to meet the challenge of reaching their audience or is there another reason for the change? Do you feel that these changes mean the end of traditional mass media advertising? Why or why not? a. Answer: The world of branding is going through enormous change. Marketing has become much more experiential, as seen in the sustained growth of the sponsorship and event marketing industry. Artificial intelligence–based algorithms help place ads via behavioral targeting and retargeting consumers with ads they have clicked on in the past. In short, consumer preferences and new technologies are reshaping the communication. Advertising, IBP, and marketing overall are rapidly becoming more digital, more interactive, and more social, environment and the future of advertising. Answers will vary. 2. When does advertising become ineffective? How does accommodation and negotiation come into play in the receipt and interpretation of consumers? Why does meaning differ for different consumers? How do companies adapt to these differences? a. Answer: Advertising cannot be effective unless some form of communication takes place between the company and the audience. But advertising is about mass communication. that consumers create their own meanings when they interpret advertisements. A message has a source, and the audience (consumer) accommodates and negotiates the message and its intent. The model includes encoding and decoding of the message, with meanings formed during the interplay with the individual person’s comprehension of the content. Reception takes place in the context of potential interference such as clutter that might disturb the process. No ad contains a single meaning or even the same meaning for each audience member. Ads are interpreted by each

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 1: The World of Advertising and IBP

audience member according to their unique set of experiences, values, and beliefs. Even though companies can identify dozens of different target audiences, many specifically target these categories: household consumers, members of business organizations, members of a trade channel, professionals, and government officials and employees. 3. Is advertising a business or social process? Explain. a. Answer: Advertising is very much a business process as well as a communication process. For multinational organizations like Proctor & Gamble and Johnson & Johnson, as well as for small local retailers, advertising is a basic business tool that is essential to retaining current customers and attracting new ones. It is important to recognize that of all the roles played by advertising in the marketing process, none is more important than contributing to building brand awareness and brand equity. Similarly, firms have turned to more diverse methods of communication beyond advertising that we have referred to as IBP. That is, firms are using communication tools such as public relations, sponsorship, direct marketing, and sales promotion along with advertising to achieve communication goals. 4. Can advertising effect the prices and value of a product? Why or why not? a. Answer: One of the widely debated effects of advertising has to do with its impact on the prices consumers pay for products and services. First, across all industries, advertising costs incurred by firms range from about 2 percent of sales in the automobile and certain retail industries up to 20 percent of sales for luxury products like perfume. Remember that there is no consistent and predictable relationship between advertising spending and sales—it all depends on the product category, competition, size of market, and complexity of the message. It is true that the cost of advertising is woven into product costs, which may be ultimately passed on to consumers. But this effect on price must be judged against a couple of cost savings that lower the price consumers pay. Value, in modern marketing and advertising, refers to a perception by consumers that a brand provides satisfaction beyond the cost incurred to obtain that brand. The value perspective of the modern consumer is based on wanting every purchase to be a “good deal.” Value can be added to the consumption experience by advertising. 5. Are the meanings that culture, society, and consumers attribute to objects important to a brand? How does this affect the perception of its value? a. Answer: Researchers have long argued that objects (brands included) are never just objects. They take on meaning from culture, society, and consumers. It is important to remember that these meanings often become just as much a part of the brand as the physical features. Because advertising is an essential way

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 1: The World of Advertising and IBP

in which the image of a brand is developed, it contributes directly to consumers’ perception of the value of the brand. The more value consumers see in a brand, the more they are willing to pay to acquire the brand. 6. What is most exciting about the future of advertising and IBP? What might be some of the developments in content, industry structure and strategy? How will these affect companies and consumers? a. Answer: Content will be more personal and, ideally, more useful to target audiences. Onscreen ads will seem to “magically” appear for things you really are interested in because you have previously searched online for them (retargeting). The industry structure will also change. Most change relates with technological advances. For instance, virtual agencies will be on the rise. Freelance work is going to be crowdsourced. Advertising revenue models are also in transition, as many must coexist with other business models such as subscriptions to digital services or online communities. Constants are that advertising and IBP, along with marketing, will continually change. A need for strategic and creative brand messaging will also remain constant. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 2: The Structure of the Advertising and Promotion Industry: Advertisers, Agencies, Media, and Support Organizations

Instructor Manual Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 2: The Structure of the Advertising and Promotion Industry: Advertisers, Agencies, Media, and Support Organizations

TABLE OF CONTENTS Purpose and Perspective of the Chapter .......................................................................... 2 Cengage Supplements ........................................................................................................ 2 Chapter Objectives ............................................................................................................. 2 Complete List of Chapter Activities and Assessments .................................................... 3 Key Terms ............................................................................................................................ 3 What's New in This Chapter ............................................................................................... 7 Chapter Outline .................................................................................................................. 8 Additional Discussion Questions ..................................................................................... 19

PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to illustrate how the advertising industry is successfully adapting to the new technologies that consumers are willing or even eager to use because consumers are seeking more control over their information environment. One major trend affecting advertisers, agencies, and the media is that consumers are now in greater control of their exposure to information. Collectively, individuals are gravitating toward sharing and creating information through websites, social media, apps, and video sites. The proliferation of media has created new advertising options, and media firms are becoming multiplatform media giants with television, radio, print, and/or Internet properties. Advertising and promotion agencies come in many varieties and offer services such as market research and marketing planning, the creation and production of ad materials, the planning and purchase of media time or space for ads, and traffic management to keep production on schedule. Media organizations are the essential link in delivering advertising and IBP communications to target audiences. In addition to traditional media organizations, advertisers can reach audiences through interactive media options (online, mobile, social media) and support media.

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 2-1

Identify how the advertising industry is in constant transition.

2-2

Discuss five broad trends transforming the advertising and promotion industry.

2-3

Describe the advertising and promotion industry’s size, structure, and participants.

2-4

Describe the role played by advertising and promotion agencies/consolidated agency networks, the services provided by these agencies, and how the agencies are compensated.

2-5

Identify key external facilitators who assist in planning and executing advertising and integrated brand promotion campaigns.

2-6

Discuss the role played by media organizations in executing effective advertising and integrated brand promotion campaigns.

COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS The following table organizes activities and assessments by objective, so that you can see how all this content relates to objectives and make decisions about which content you would like to emphasize in your class based on your objectives. For additional guidance, refer to the Teaching Online Guide. Chapter Objective 2-2 2-3 2-3 2-4 2-4 2-5 2-6 2-6

Activity/Assessment Icebreaker Polling Activity Discussion Activity 1 Discussion Activity 1 Debrief Discussion Activity 2 Discussion Activity 2 Debrief Knowledge Check 1 Discussion Activity 3 Discussion Activity 3 Debrief Knowledge Check 2

Source (i.e., PPT slide, Workbook) PPT Slide 3 PPT Slide 13 PPT Slide 21 PPT Slide 22 PPT Slide 33 PPT Slide 34 PPT Slide 38 PPT Slide 42 PPT Slide 43 PPT Slide 44

Duration 10-15 minutes 5-10 minutes 5-10 minutes 10 minutes 5-10 minutes 10-15 minutes 5 minutes 5-10 minutes 10 minutes 5 minutes

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KEY TERMS [return to top]

Account planner In an advertising agency, the professional who synthesizes all relevant consumer research and uses it to help the team design a coherent advertising strategy for a client’s brand or product. Account services A team of agency managers that identifies the benefits a client’s brand offers, its target audiences, and the best competitive positioning, and then develops a complete promotion plan. Advertisement A specific message that an organization has placed to persuade an audience. Advertising agency An organization of professionals who provide creative and business services to clients related to planning, preparing, and placing advertisements. Blog Website frequented by individuals with common interests where they can post ideas, opinions, and personal experiences. Such sites have emerged as sophisticated (but not objective) sources of product and brand information. Branded apps A mobile application that is branded, and some of which may feature advertising inside the app and/or encourage digital engagement. Chief executive officers (CEOs) Usually is the highest-ranking executive of a business who is in charge overall of running the business. Chief financial officers (CFOs) The executive who is responsible for the financials and monetary aspects or investments of the firm. Chief technology officers (CTOs) The executive who is in charge of technology and networks. Client The company or organization that pays for advertising. Also called the sponsor. Commission system A method of agency compensation based on the amount of money the advertiser spends on the media. Consolidated agency networks Large holding companies that consist of many agencies or marketing groups. Consultant Individual who specializes in areas related to the promotional process. Consumer sales promotion A type of sales promotion aimed at consumers that focuses on price-off deals, coupons, sampling, rebates, and premiums.

Content marketing Creating and posting relevant informational messages for target audiences online and on social media, accessible whenever targeted decision makers are considering a purchase. Creative boutique An advertising agency that emphasizes copywriting and artistic services to its clients. Creative services A group that develops the message that will be delivered through advertising, sales promotion, direct marketing, event sponsorship, or public relations. Crowdsourcing The online distribution of certain tasks to groups (crowds) of experts, enthusiasts, or even consumers. Database agency Agency that helps customers construct databases of target customers, merge databases, develop promotional materials, and then execute the campaign. Designer Specialist intimately involved with the execution of creative ideas and efforts. Digital/interactive agency Agency that focuses on using online, mobile, and social media for direct marketing and target market communications for clients. Direct-response agency Also called direct marketing agency. Direct marketing agency Agency that maintains large databases of mailing lists; some of these firms can also design direct marketing campaigns either through the mail or by telemarketing. Also called a direct response agency. Event-planning agency Experts in finding locations, securing dates, and putting together a “team” of people to pull off a promotional event. External facilitator An organization or individual that provides specialized services to advertisers and agencies. Fee system A method of agency compensation whereby the advertiser and the agency agree on an hourly rate for different services provided. Fulfillment center Centers that ensure customers receive the product ordered through direct mail. Full-service agency An advertising agency that typically includes an array of advertising professionals to meet all the promotional needs of clients.

In-house agency The advertising department of a firm. Infomercial A long advertisement that looks like a talk show or a half-hour product demonstration. Logo A graphic mark that identifies a company and other visual representations that promote an identity for a firm. Markup charge A method of agency compensation based on adding a percentage charge to a variety of services the agency purchases from outside suppliers. Media planning and buying services Services related to media planning or buying that are provided by advertising agencies or specialized media-buying organizations. Media specialist Organizations that specialize in buying media time and space and offer media strategy consulting to advertising agencies and advertisers. New customer acquisition When a company or business gains a first-time client or customer, which is a goal for many companies especially when the new customer comes from a competitor. Pay-for-results A compensation plan that results when a client and its agency agree to a set of results criteria on which the agency’s fee will be based. Production facilitator An organization that offers essential services both during and after the production process. Production services A team that takes creative ideas and turns them into advertisements, direct mail pieces, or events materials. Promotion agencies Specialized agencies that handle promotional efforts. Public relations firm Firms that handle the needs of organizations regarding relationships with the media, local community, competitors, industry associations, and government organizations. Social media Highly accessible Web-based media that allow the sharing of information between individuals and between individuals and groups. Prominent examples are Facebook, Twitter, and LinkedIn. Steering organization A group of expert advisors and professionals that help give direction and guide strategy and decisions on the brand or organization.

Trade-market sales promotion A type of sales promotion designed to motivate distributors, wholesalers, and retailers to stock and feature a firm’s brand in their merchandising programs. Trade reseller Organizations in the marketing channel of distribution that buy products to resell to customers. User interface (UI) the point of human-computer interaction with a webpage, computer, website or app. Virtual reality A newer technology that advertisers are using with computer models that allow a consumer to interact with 3-D visuals for an immersive, artificial experience.

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition: •

New key terms: o branded apps o CEO o CFO o CTO o customer acquisition o consolidated agency networks o steering organization o user interface o virtual reality

•

Updates to the agency structure overview via new trends transforming the ad and promotion industries.

•

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CHAPTER OUTLINE The following outline organizes activities (including any existing discussion questions in PowerPoints or other supplements) and assessments by chapter (and therefore by topic), so that you can see how all the content relates to the topics covered in the text. The Advertising Industry in Constant Transition (LO 1, PPT Slides 5-7) i. There have always been power struggles in the advertising and promotion industry. Now, however, it is about how the advertising industry can successfully adapt to the new technologies that consumers are willing and, in many cases, eager to use as they seek more control over their information environment. ii. The solution seems to be that advertisers will continue in the “digital divide.” That is, dividing their total advertising spending more into digital media—Web advertising, social media, and mobile marketing—and continue to move away from traditional mass media like television, newspapers, magazines, and radio. II. Trends Affecting the Advertising and Promotion Industry (LO 2, PPT Slides 8-13) A. Consumer Control: Social Media, On-Demand Streaming, and Cutting the Cord i. Consumers are now in greater control of the information they receive about product categories and the brands within those categories. Social media, blogs, and DVRs devices are three prime examples. Advertisers and their agencies are trying to adapt to the concept that consumers are gaining greater control by making more creative ads which will more likely be watched by the consumers. B. Media Proliferation, Consolidation, and “Multiplatform” Media Organizations i. At another level of the industry, media proliferation and consolidation are taking place simultaneously. Media companies of all types tend to pursue more and more “properties” if they are legally allowed to, thus creating what are now referred to as “multiplatform” media organizations. The ultimate multiplatform may be Walt Disney Co., which owns the ABC broadcasting network and the ESPN cable network group, plus multiple other cable stations. C. Media Clutter and Fragmentation Means More IBP i. There are more ways for the advertiser to reach the consumer than ever before. However, given the backlash against advertising that clutter can cause, advertisers and their agencies are rethinking the way they try to communicate with consumers. There is a greater focus on integrating more tools within the overall promotional effort in an attempt to reach more I.

consumers in different ways. Johnson &Johnson moved hundreds of millions of dollars away from traditional media to digital media including the Internet and blogs. D. Crowdsourcing i. Crowdsourcing involves the online distribution of certain tasks to groups (crowds) of experts, enthusiasts, or even consumers. The idea behind crowdsourcing is to get consumers more involved with and committed to a brand in a way that passive, intrusive advertising simply cannot. Consumers help “build the brand” with recommendations for features or even advertising campaign images. They also can communicate about the brand to audiences in ways that seem natural and credible. Refer to Ford and Starbucks as prime examples. E. Mobile Marketing/Mobile Media i. Technology has resulted in significant opportunity for advertisers to reach consumers with messages directed to consumers’ mobile devices—primarily smartphones and tablets. The challenge will be to make the messages relevant and acceptable to consumers. F. Polling Activity (PPT Slide 13, Time duration: 5-10 minutes) i. Which media trend affecting the advertising and promotion industry do you think is most important? o Consumer control o Media proliferation, consolidation, and multiplatform media organizations o Media clutter and fragmentation o Crowdsourcing o Mobile marketing and mobile media a. Answer: Responses will vary. Students could argue for any one of these trends as being the most important. While consumer control is the most problematic for marketers, media clutter is a huge problem too. Crowdsourcing is a big opportunity but comes with problems of its own. Finally, mobile marketing allows new ways of reaching consumers and will be particularly potent at the point of purchase if consumers do not rebel III. The Scope and Structure of the Advertising and Promotion Industry (LO 3, PPT Slides 14-22) i. Worldwide, nearly $600 billion is spent on various categories of advertising. Another perspective on the scope of advertising and promotion is the amount spent on advertising by individual firms. A. Structure of the Advertising and Promotion Industry i. The structure of the advertising and promotion industry clarifies who does what, in what order, during the process. Consider the structure of the advertising and promotion industry by showing who the different participants are in the process. It demonstrates that advertisers can

employ the services of agencies that may (or may not) contract for specialized services with various external facilitators which results in advertising and promotion being directed with the help of various media organizations to one or more target audiences. It is important to note here that advertisers do not always need to employ the services of agencies. Nor do advertisers or agencies always seek the services of external facilitators. Some advertisers deal directly with media organizations and Internet portals for placement of their advertisements or implementation of their promotions. B. Advertisers i. First in the structure of advertising are the advertisers themselves. Advertisers are business, not-for-profit, and government organizations that use advertising and other promotional techniques to communicate with target markets and to stimulate awareness and demand for their brands. Advertisers are also referred to as clients by their advertising and promotion agency partners. The following categories describe the different types of advertisers and the role advertising plays for them. ii. Manufacturers and Service Firms a. Large national manufacturers of consumer products and services are the most prominent users of advertising and promotion, spending billions of dollars annually. Procter & Gamble, General Foods, Verizon, and Anheuser-Busch InBev all have national or global markets for their products and services. b. Students should note here that regional and local producers of household goods and services also rely heavily on advertising. These firms often use ads placed in newspapers and regional editions of magazines. iii. Trade Resellers a. The term trade reseller is simply a general description for all organizations in the marketing channel of distribution that buy products to resell to customers. b. Resellers can be retailers, wholesalers, or distributors. Retailers that sell in national or global markets are the most visible reseller advertisers and promotion users. Walmart, The Gap, and McDonald’s are examples of national and global retail companies that use various forms of IBP to communicate with customers. c. Wholesalers and distributors have little need for mass media and use trade publications, directory advertising trade directories, direct mail, personal selling, and their Internet websites as their main advertising media. iv. Federal, State, and Local Government a. Although it may seem odd to students to list the government as an advertiser, government bodies invest millions of dollars in advertising annually.

b. The U.S. government is one of the largest spenders on advertising in the U.S., with expenditures exceeding $1 billion in annually. The most visible government campaigns are U.S. government advertising for the armed forces recruiting and social issues. v. Social and Not-for-Profit Organizations a. Advertising by social and not-for-profit organizations at the national, state, and local level is common—Red Cross, the Nature Conservancy, and United Way are examples. This advertising is used to raise awareness of the organizations, seek donations, and attempt to shape behavior. b. Organizations such as these use both the mass media and direct mail to promote their causes and services. C. The Role of the Advertiser in IBP i. There is an important role played by the advertiser before the services of an agency are enlisted. Advertisers of all sizes and types, have to be prepared for their interaction with an agency in order for the agency to do its job effectively. That is, it is the advertiser’s role to: a. Describe the value that the firm’s brand provides to users. b. Describe the brand’s position in the market relative to competitive brands. c. Describe the firm’s objectives for the brand in the near term and long term (e.g., brand extensions, international market launches). d. Identify the target market(s) that are most likely to respond favorable to the brand. e. Identify and manage the supply chain/distribution system that will most effectively reach the target markets. f. Be committed to using advertising and other promotional tools as part of the organization’s overall marketing strategy to grow the brand. D. Discussion Activity 1 (PPT Slide 21, Time duration 5-10 minutes) i. The U.S. government spends millions of dollars each year trying to recruit young men and women into the armed services. 1. What forms of advertising and IBP communications would be best suited to this recruiting effort? o Responses will vary. The U.S. government is clearly engaged in a persuasive effort. Mass-mediated advertising combined with direct marketing, event sponsorship, and web-based promotions would likely have a positive impact on the target audience. E. Discussion Activity 1 Debrief (PPT Slide 22, Time duration 5-10 minutes) i. As an advertiser, what is the U.S. government’s role in IBP? o Answer: The advertiser must be able to do the following prior to enlisting the services of an agency: 1. Fully understand and describe the value that the firm’s brand(s) provides to users

2. Understand and describe the brand’s position in the market relative to the competition 3. Describe the firm’s objectives for the brand in the near term and long term (e.g., brand extensions, international market launches, etc.) 4. Identify the target market(s) that are most likely to respond favorably to the brand 5. Identify and manage the supply chain/distribution system that will most effectively reach the target market(s) 6. Be committed to integrating advertising, event sponsorship, and other promotional tools as part of the organization’s overall marketing strategy to grow the brand via both digital and traditional channels. o Advertisers that can do these will be prepared for a productive partnership with an agency. IV. Advertising and Promotion Agencies (LO 4, PPT Slides 23-34) i. Advertisers have a full complement of agencies that specialize in various aspects of advertising and promotion. A. Advertising Agencies i. Advertising agencies provide expertise to help advertisers prepare advertising programs. An advertising agency is an organization of professionals who provide creative and business services to clients related to planning, preparing, and placing advertisements. ii. Consider the world’s 10 largest advertising organizations and their worldwide gross income. The combined ad spending of the top ten U.S. advertisers alone—including corporate giants like Procter & Gamble and Ford—exceeds $29 billion annually. iii. The $3.5 billion spent by General Motors on advertising is only a small fraction of GM’s annual sales. Similarly, Ford spends $2.7 billion yearly, which represents a sliver of its overall sales revenues. So even though the absolute dollars seem huge, the relative spending is often much more modest. iv. The types of agency professionals who help advertisers in the planning, preparation, and placement of advertising and other promotional activities include the following: Account planners Creative directors Marketing specialists Sales promotion and event planners Account executives Copywriters Media buyers Direct marketing specialists Art directors Radio and television producers Graphic designers Web developers Lead account planners Researchers Chief executive officers (CEOs) Interactive media planners Chief financial officers (CFOs) Artists

Chief technology officers (CTOs) Social media experts Chief marketing officers (CMOs) Public relations specialists a. Full-Service Agencies: A full-service agency includes an array of advertising professionals to meet all the promotional needs of clients. Often, such an agency will also offer a global reach to the client. b. Creative Boutiques: A creative boutique emphasizes creative concept development, copywriting, and artistic services to its clients. An advertiser can employ this alternative for the strict purpose of infusing greater creativity into the message theme or individual advertisement. Creative boutiques are idea factories; however, as firms search for IBP programs and make a commitment to IBP campaigns, the creative boutique may be an extra expense and step that advertisers simply don’t feel they can afford. c. Digital/Interactive Agencies: Spending on mobile marketing already exceeds $20 billion annually. These agencies help advertisers prepare communications for new media such as the Internet, mobile marketing, and interactive television. Digital/interactive agencies focus on ways to use Web-based solutions for direct marketing and target market communications. An in-house agency is often referred to as the advertising department in a firm and takes responsibility for the planning and preparation of advertising materials. This option has the advantage of greater coordination and control in all phases of the advertising process. Another advantage is that the firm can keep all commissions that an external agency would have earned. d. Media specialists: Media specialists are organizations that specialize in buying media time and space and offer media strategy consulting to advertising agencies and advertisers. The task of strategic coordination of media and promotional efforts has become more complex because of the proliferation of media options and extensive use of promotional tools beyond advertising. Promotion Agencies a. Focus on promotion efforts that full-service advertising agencies do not specialize in. Promotion agencies handle everything from sampling to event promotions. Descriptions of different types of promotional agencies and their services follow. b. Direct Marketing and Database Agencies (also called direct response agencies): These agencies provide a variety of direct marketing services. Direct marketing agencies and database agencies maintain and manage large databases of mailing lists as one of their services. They design direct marketing campaigns that can use either (1) mail or telemarketing or (2) direct response campaigns using all forms of media. They help advertisers construct and merge databases of

target customers. In many cases, these agencies maintain fulfillment centers, which ensure that customers receive the product ordered through direct mail. In addition, many direct marketing agencies can prepare infomercials for clients. c. Sales Promotion Agencies: These specialists design and then operate contests, sweepstakes, special displays, or coupon campaigns for advertisers. These agencies specialize in consumer sales promotions or trade sales promotions. d. Event-Planning Agencies: Event-planning agencies and organizers are experts in finding locations, securing dates, and putting together a team of people to manage an event. The event-planning agency will also often take on the task of advertising the event. e. Design Firms: Designers help a firm create the visual impression of a firm's advertising materials and also create logos and other visual representations for the brand. They also design most of the material used in supportive communications such as banners, package design, coupons, in-store displays, and brochures. f. Public Relations Firms: Public relations firms manage an organization’s relationships with the media, the local community, competitors, industry associations, and government organizations. B. Agency Services i. Although not every full-service agency offers every service, the services that can be found in full-service agencies are discussed in the following sections. We detail the common structure of a full-service advertising agency that also provides a number of IBP services. ii. Account Services a. Account services entail identifying the benefits a brand offers, its target audience, and the best competitive positioning, and then developing a complete advertising plan. In some cases, an agency can also provide basic marketing and consumer behavior research. Another primary task in account services is to keep the various agency teams—creative, production, and media—on schedule and within budget. iii. Marketing Research Services a. The research services usually entail agency locating studies that have bearing on a client’s advertising and explaining these studies to the client. Account planner positions have been added in many agencies to coordinate the research effort. iv. Creative and Production Services a. The creative services group prepare the client’s message that will be delivered through advertising, sales promotion, direct marketing, social networks, and mobile marketing.

b. Production services include producers (and sometimes directors) who take creative ideas and turn them advertisements, direct mail pieces, and other IBP materials. v. Media-Planning and Buying Services a. Advertising agencies themselves provide media planning and buying services similar to those of the specialized agencies. The central challenge is to determine how a client’s message can most effectively and efficiently reach the target audience. vi. Administrative Services a. Agencies have personnel departments, accounting and billing departments, and sales staffs that go out and sell the agency to clients. Most important to clients is the traffic department, which has the responsibility of monitoring projects to be sure that deadlines are met. Traffic managers make sure the creative group and media services are coordinated so that deadlines for getting ads into media are met. C. Agency Compensation i. The way agencies get paid is somewhat different from the way other professional organizations are compensated. The four most prevalent agency compensation methods are commissions, markup charges, fee systems, and pay-for-results plans, but this is changing. There are different methods: ii. Commission a. The commission system is the traditional method of agency compensation and is based on the amount of money the advertiser spends on media. b. Under this method, 15 percent of the total amount billed by a media organization is retained by the advertising agency as compensation for all costs in creating advertising for the advertiser. The only variation is that the rate typically changes to 16 percent for outdoor media. c. We give students a simple example of how the commission system works. In the last five years, many agencies have challenged this traditional structure and negotiated different percentages for commission. iii. Markup Charges a. Markup charges add a percentage to a variety of services the agency purchases from outside suppliers. b. In many cases, an agency will turn to outside contractors for art, illustration, photography, printing, research, and production. The agency then, in agreement with the client, adds a markup charge to these services. A typical markup on outside services has been 17.65 percent to 20 percent. iv. Fee System

a. A fee system is much like that used by consultants or attorneys, whereby the advertiser and the agency agree on an hourly rate for different services provided. v. Pay for Results a. Many advertisers and agencies alike have been working on compensation programs called pay-for-results or incentive-based compensation that base the agency’s fee on the achievement of agreed-on results. In this type of program, the agency’s fee is based on the achievement of agreed upon results. D. Discussion Activity 2 (PPT Slide 33, Time duration 5-10 minutes) i. Explain the viewpoint that a commission-based compensation system may actually give an ad agency an incentive to do the wrong things for its clients. a. Answer: In a commission-based compensation system, the agency is paid a percentage of the media space or time that it places for a client. This system can have two unwanted effects. First, if compensation is dictated by ad placements in traditional mass media, this may discourage the agency from recommending nontraditional (e.g., event sponsorship or product placements) outlets. Second, working under the commission system, the agency would be taking money out of its own pocket if it ever recommended that the client cut its advertising expenditures. In fact, there will be times when cutting one’s advertising budget is the right thing to do. Agencies working on commission have a hard time seeing any virtue in a budget-cutting recommendation. E. Discussion Activity 2 Debrief (PPT Slide 34, Time duration 5-10 minutes) i. What would be the advantages and disadvantages of a pay-for-results approach instead? a. Answer: Historically, agencies would not (rightly so) agree to be evaluated on results because results were often narrowly defined as “sales.” The key effects on sales are related to factors outside the agency’s control such as brand features, pricing strategy, and distribution programs (i.e., the overall marketing mix, not just advertising or IBP). • An agency might agree to be compensated based on achievement of sales levels, but more often (and more appropriately), communications objectives such as awareness, brand identification, or brand feature knowledge among target audiences will serve as the main results criteria. • A pay-for-results approach, when based upon the appropriate measurements, can allow an agency to be compensated in a way that correlates to the impact it creates. V. External Facilitators (LO 5, PPT Slides 35-38)

i. ii.

iii.

iv.

External facilitators are organizations or individuals that provide specialized services to advertisers and agencies. Marketing and Advertising Research Firms a. Research firms such as Burke and Simmons can perform original research for advertisers using focus groups, surveys, or experiments to assist in understanding the potential market or consumer perceptions of a product or services. b. Other research firms, such as SRI International, routinely collect data (from grocery store scanners, for example) and have these data available for a fee. c. There are also firms that specialize in message testing to determine if consumers find advertising messages appealing and understandable. Consultants a. A variety of consultants specialize in areas related to the promotional process. Advertisers seek out marketing consultants for assistance in the planning stage regarding market segment behaviors and macro-economic and cultural trends. b. Creative and communications consultants provide insight on issues related to message strategy and message themes. Media experts help an advertiser determine the proper media mix and efficient media placement. c. Three new types of consultants have emerged in recent years. One is a database consultant, who works with both advertisers and agencies in developing and managing databases for direct mail campaigns. Production Facilitators a. External production facilitators offer essential services both during and after the production process. Production is an area where advertisers and their agencies rely most on external facilitators. b. For broadcast production, directors, production managers, songwriters, camera operators, audio and lighting technicians, and performers are all essential. c. Production houses can provide the physical facilities, including sets, stages, equipment, and crews, needed for broadcast production. d. Similarly, in preparing print advertising, graphic artists, photographers, models, directors, and producers may be hired from outside the advertising agency or firm to provide the specialized skills and facilities needed in preparing advertisements. Software firms a. An interesting and complex new category of facilitator in advertising and promotion is that of software firms. These firms offer the kind

of expertise that is so esoteric that even the most advanced fullservice or digital agency would have to seek their assistance. A. Knowledge Check (PPT Slide 38, Time duration: 5 minutes) i. Which new type of consultant is particularly useful to an advertiser when planning a direct email campaign? a. Information integration b. Database c. UI d. Website development i. Answer: B. Database—Database consultants help firms identify and then manage databases that allow for the development of integrated marketing communications programs. Database consultants are particularly useful in planning couponing or direct mail (email) campaigns. VI. Media Organizations (LO 6, PPT Slides 39-44) i. Media represent the next level in the industry structure shown. The media available for placing advertising, such as broadcast and print media are well known to students simply because they’re exposed to them daily. We organize this information into five specific categories. a. Broadcast—major television networks like NBC, ABC, as well as national magazines such as Maxim or People, provide advertisers with time and space for their messages at considerable cost. Also included are satellite TV and radio. It is now competing with other content delivery models and smart TVs or live streaming. b. Print—advertisers can choose between magazines, direct mail, newspapers, specialty such as handbills and programs, and banners. c. Interactive Media—it includes choices ranging from online computer services, home-shopping broadcasts, and CD-ROMs to smartphones and e-readers. d. Support Media—includes transit companies (bus and taxi boards), billboard organizations, specialized directory companies, and sports and performance arenas for sponsorships, display materials, and premium items. It includes all those places that advertisers want to put their messages other than mainstream traditional or interactive media. e. Media Conglomerates—this category is included because organizations like Viacom and Comcast own and operate companies in broadcast, print, and interactive media. ii. Target Audiences and Content Marketing a. The structure of the advertising and promotion industry and the flow of communication would obviously be incomplete without an audience.

b. The audiences for promotional communications, with the exception of household consumers, are also the advertisers who use advertising and IBP communications. c. Business and government audiences are key to the success of a large number of firms that sell only to business and government buyers. A. Discussion Activity 3 (PPT Slide 42, Time duration: 5-10 minutes) i. How might the skills of a public relations firm be employed to reinforce the message that a sponsor is trying to communicate through other forms of promotion? a. Answer: New product introduction is likely to be accompanied by some level of advertising support; new product introductions are also an excellent time to engage a public relations firm. A new product should have some features or attributes that are newsworthy. Here is where the tools of public relations—press releases, feature stories, lobbying, spokespersons and company newsletters—may play a critical role in supporting the advertising campaign. If the news media deem the new product launch newsworthy, there can be a tremendous synergy between the messages carried in advertising and the six o’clock news for breaking through to the target audience. B. Discussion Activity 3 Debrief (PPT Slide 43, Time duration: 5 minutes) i. Which types of media organizations would a public relations firm be likely to use to effectively generate publicity for a client? a. Responses will vary. PR firms often make use of TV, radio, magazines, newspapers, and social media for placement of publicity for clients. [return to top]

every store, in every inbox; and they are actively looking for ways to avoid most of them. So the power struggle now is focused on how the advertising industry can successfully adapt to the new technologies that consumers are willing and, in many cases, eager to use as they seek more control over their information environment. The solution, in part, seems to be that advertisers must integrate advertising investments more into targeted digital media, online advertising, social media, and mobile marketing—and synergize the social media and digital content with appropriate traditional mass media like television, magazines, and radio. 2. Briefly describe the major trends affecting the advertising and promotion industry. Which of these do you think is the most important and impactful? Why? a. Answer: The major trends are: • Consumer control, Social Media, On-Demand Streaming and Cutting the Cord • Media proliferation, consolidation, and multiplatform media organizations • Media clutter and fragmentation • Crowdsourcing • Mobile marketing and mobile media Students could argue for any one of these trends as being the most important. While consumer control is the most problematic for marketers, media clutter is a huge problem too. Crowdsourcing is a big opportunity but comes with problems of its own. Finally, mobile marketing allows new ways of reaching consumers and will be particularly potent at the point of purchase if consumers do not rebel. 3. In the structure of the advertising and promotion industry, what role does advertising and promotion agencies play? a. Answer: Advertising and promotion agencies come in many varieties and offer services such as market research and marketing planning, the creation and production of ad materials, the planning and purchase of media time or space for ads, and traffic management to keep production on schedule. Some advertising agencies offer a full array of services under one roof; others, such as creative boutiques, develop a particular expertise with specialized skills. Promotion agencies specialize in one or more of the other forms of promotion beyond advertising. The four most prevalent ways to compensate an agency for services are commissions, markups, fee systems, and the pay-for-results programs. Agency compensation is changing as the industry changes and agencies face more competition from digital media companies and consulting companies. 4. There are many challenges facing advertisers and agencies as consumers have gained greater control of information sources—blocking telemarketing calls, for instance, and carefully guarding the privacy of cell phone numbers and other

contact information. How can advertisers still reach out to consumers and invite them to learn more about their brand or product? Are there ethical issues to consider? How would you navigate privacy concerns? What are the legal risks or potential challenges? a. Answer: It is a difficult landscape advertisers face in trying to navigate increased consumer sensitivity to privacy issues. The possibility of future donot-mail legislation, anti-spam regulations, and efforts to keep marketers from contacting consumers through cell phone text messages are real challenges advertisers must face. Restrictions on sharing and using consumer data (Facebook and other social media sites) and changes in website sharing (cookies) will continue to alter the course for advertisers in the future.

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Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 3: The History of Advertising and Brand Promotion

Instructor Manual

Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 3: The History of Advertising and Brand Promotion

TABLE OF CONTENTS Purpose and Perspective of the Chapter .......................................................................... 2 Cengage Supplements ........................................................................................................ 2 Chapter Objectives ............................................................................................................. 2 Complete List of Chapter Activities and Assessments .................................................... 3 Key Terms ........................................................................................................................... 3 What's New in This Chapter............................................................................................... 5 Chapter Outline ................................................................................................................... 5 Additional Discussion Questions ..................................................................................... 14

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 3: The History of Advertising and Brand Promotion

PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to illustrate how advertising uses consumer culture and current events to its advantage. Some of the best advertising of all time has something in common: it leverages existing anxiety; it seeks to resolve cultural contradictions; it tugs on our heart strings or makes us think; it seeks to calm the individual consumer and reinforces a marketer-friendly vision of society. To understand advertising and succeed in the advertising and integrated brand promotion business, you must understand that successful advertisements convey a particular version of contemporary culture and society. There are valuable lessons to be found in advertising’s history; practical lessons learned in the past that can be applied today and tomorrow. Throughout the decades, advertisers have tried many different strategies and approaches, and you can learn from their successes and failures. Studying advertising history will allow you to know when a given advertising technique is something new, and when and why it worked. You can see how particular advertising strategies leveraged the social forces of their day—and how you can leverage the ones of your day.

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 3-1

Describe the main factors that gave rise to advertising.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 3: The History of Advertising and Brand Promotion

3-2

Discuss eras in the evolution of advertising in the United States and relate changes in advertising practice to fundamental changes in society and culture—noting how successful ads leverage the social and cultural forces of their day.

3-3

Identify forces continuing to affect the evolution of advertising and integrated brand promotion.

Activity/Assessment

3-1 3-2 3-2

Icebreaker Knowledge Check 1 Discussion Activity 1 Discussion Activity 1 Debrief

Source (i.e., PPT slide, Workbook) PPT Slide 3 PPT Slide 10 PPT Slide 36 PPT Slide 37

3-3

Knowledge Check 2

PPT Slide 40

Duration

5 minutes

10 minutes 5 minutes 10-15 minutes 15 minutes

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KEY TERMS Action for Children’s Television A group formed during the 1970s to lobby the government to limit the amount and content of advertising directed at children. Ad blocker Software that consumers install to prevent advertising messages from being visible. Branded entertainment Embedding one’s brand or brand icons as part of any entertainment property (e.g., a sporting event), blending advertising and IBP with entertainment in an effort to impress and connect with consumers in a unique and compelling way.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 3: The History of Advertising and Brand Promotion

Branding The strategy of developing brand names so that manufacturers can focus consumer attention on a clearly identified item. Chain of needs Customer needs lead to products; new needs are created by the unintended side effects of modern times and new products; even newer products solve additional and even newer needs. Consumer-generated content (CGC) Advertisements and other content related to products or brands, created in part or completely by their end users. Consumer culture A way of life centered around consumption. Dailies Newspapers published every weekday; also, in television ad production, the scenes shot during the previous day’s production. Federal Trade Commission (FTC) The government regulatory agency that has the most power and is most directly involved in overseeing the advertising industry. Great Depression A period (1929–1941 for the United States) in which the vast majority of people in many countries suffered from a severe economic decline. Industrial Revolution A major change in Western society beginning in the mid-18th century and marked by a rapid change from an agricultural to an industrial economy. Interactive media Media that allow consumers to access games, entertainment, shopping opportunities, and educational programs, sometimes on a subscription or pay-per-view basis. Such media allow direct measurement of ad exposure and impact. National Advertising Review Board A body formed by the advertising industry to oversee its practice. New normal A term used often during the COVID-19 pandemic, to refer to a shift in behaviors and norms that goes beyond a temporary change, such as a shift towards working from home or ordering groceries online. Principle of limited liability An economic principle that allows an investor to risk only his or her shares of a corporation, rather than personal wealth, in business ventures. Pure Food and Drug Act A 1906 act of Congress requiring manufacturers to list the active ingredients of their products on their labels. Subliminal advertising Advertising alleged to work on a subconscious level.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 3: The History of Advertising and Brand Promotion

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WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition: •

New key term o new normal

•

New era introduced o COVID-19 era and how it impacts consumerism and advertising

• •

New forces discussed that affect advertising and IBP New support articles from: o Journal of Consumer Research o Journal of Advertising o Journal of Marketing o Journal of Advertising Research o International Journal of Advertising o JCIRA o Journal of Marketing Research o Journal of Consumer Research

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Factors Behind the Rise of Advertising (LO 1, PPT Slides 5-10) i. Advertising is sometimes said to have had its origins in ancient times. Well, that is not really the case, at least not in any meaningful sense. Advertising is a product of modern times and modern media. Advertising came into being as a result of at least four major factors: a. The rise of capitalism b. The Industrial Revolution c. The emergence of modern branding d. The rise of modern mass media

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 3: The History of Advertising and Brand Promotion

A. The Rise of Capitalism i. For advertising to become prominent in a society, the society must rely on aspects of capitalism: organizations compete for resources, called capital, in a free market. Part of the competition for resources involves stimulating demand for organization’s goods or services, and advertising, as a strategic process, can be used to do so. B. The Industrial Revolution i. The Industrial Revolution was an economic force that yielded the need for advertising. The revolution began about 1750 in England. It spread to the United States and progressed slowly until the early 1800s, when the War of 1812 boosted domestic production. ii. The Industrial Revolution took American society away from household selfsufficiency to marketplace dependency as a way of life. Industrialization was a basic force behind the rapid increase in mass-produced goods that required stimulation of demand; something that advertising can be very good at. In addition, the railroad could facilitate large demand by expanding geographic markets. iii. In the 1840s, the principle of limited liability, which restricts an investor’s risk in a business venture to only his or her shares in a corporation rather than all personal assets, gained acceptance and resulted in the accumulation of large amounts of capital to finance the Industrial Revolution. C. The Emergence of Modern Branding i. Modern capitalism required branding. Manufacturers had to develop brand names so that consumers could focus their attention on a clearly identified item particularly once the railroad started delivering products long distances from manufacturers’ sites. a. Manufacturers began branding their products in the late 1800s, Ivory (1882), Coca-Cola (1886), Budweiser (1891), and Maxwell House (1892) were among the first branded consumer products to show up on shopkeepers’ shelves. Branding required advertising. b. It’s no accident of history that modern branding and modern advertising agencies appeared at exactly the same time in the late 19th century. D. The Rise of Modern Mass Media i. With the invention of the telegraph in 1844, a communication revolution was set in motion. a. Most important to advertising was the rise of mass-circulation magazines. The ads in these magazines began reaching a more diverse audience and national brands were projected into the national consciousness. b. Also, it is critical to realize that for the most part, mass media in the United States are supported by advertising. Without the rise of mass media, there would be no national brands, and no advertising.

E. Knowledge Check (PPT Slide 10, Time duration: 5 minutes)

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 3: The History of Advertising and Brand Promotion

i. Which of the following national brands was the first to show up on shopkeepers’ shelves in the late 1800s? a. Budweiser b. Coca-Cola c. Ivory d. Maxwell House ii. Answer: C. Ivory—Ivory (1882), Coca-Cola (1886), Budweiser (1891), and Maxwell House (1892) were among the first branded consumer products to show up on shopkeepers’ shelves. II. The Eras of Advertising (LO 2, PPT Slides 11-37) i. Several periods can be identified that gives various perspectives on the process of advertising. A. The Preindustrialization Era (Pre-1800) i. Advertising did not flourish before industrialization. It grew in popularity during the 18th century in both Britain and the American colonies although it existed in a variety of simpler forms—the messages were informational and appeared on the last pages of the tabloid. ii. The Pennsylvania Gazette was the first newspaper to separate ads with blank lines and was the first to use illustrations in advertisements. Advertising was about to change dramatically, however. B. The Era of Industrialization (1800 to 1875) i. Advertisers in this era tried to cultivate markets for growing production as the population dramatically increased. ii. A middle class, spawned by the economic windfall of regular wages from factory jobs, began to emerge. iii. Newspaper circulation was fostered by the railroads. Advertising was not universally hailed as an honorable practice. iv. Without formal regulation, advertising was considered an embarrassment by many segments of society. This image wasn’t helped by the advertising for patent medicines, the first products heavily advertised on a national scale that promised a cure for nearly everything. C. The “P. T. Barnum Era” (1875 to 1918) i. During the years from about 1875 to 1918, advertising ushered in what is known as consumer culture, or a way of life centered on consumption. ii. This was a time of advertising legends: Albert Lasker, head of Lord and Thomas in Chicago, possibly the most influential agency of its day; Francis W. Ayer, founder of N. W. Ayer; John E. Powers, the most important copywriter of the period; Earnest Elmo Calkins, champion of advertising design; Claude Hopkins, influential in promoting ads as “dramatic salesmanship”; and John E. Kennedy, creator of “reason why” advertising. iii. Until 1906, advertising went completely unregulated. In that year, Congress passed the Pure Food and Drug Act, which required manufacturers to list the active ingredients of their products on the labels.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 3: The History of Advertising and Brand Promotion

iv. The ads of this period were bold, carnivalesque, garish, and often full of dense copy that hurled fairly incredible claims at prototype modern consumers—thus the “P. T. Barnum” description. D. The 1920s (1918 to 1929) i. An important advertising logic is that good times always come with side effects, and then a product to remedy the side effect. a. Consumers learned of halitosis from Listerine advertising and about body odor from Lifebuoy advertising. ii. An endless consumption chain was created: Needs lead to products; new needs are created by the unintended side effects of modern times and new products; even newer products solve even newer needs, and on and on. a. This chain of needs is essential to a capitalist economy, which must continue to expand in order to survive. This makes a necessity of advertising. iii. The 1920s were generally prosperous times. Americans enjoyed a previously unequaled standard of living. It was an age of hedonism, and the pleasure principle was appreciated, openly and often. a. Ads of the era exhorted consumers to have a good time and instructed them how to do it. Consumption was not only respectable, but also expected. The average citizen had become a “consumer.” iv. Ads from the 1920s emphasized themes of modernity, the division between public workspace, the male domain of the office, and the private, “feminine” space of the home. v. Science and technology were the new religions of the day, and ads stressed the latest scientific offerings. E. The Depression (1929 to 1941) i. The Great Depression was brutal, broke lives and families. The Great Depression forever changed the way people thought about a great many things: their government, business, money, spending, saving, credit, and, not coincidentally, advertising. ii. Just as sure as advertising was glamorous in the 1920s, it was suspect in the 1930s. It was part of big business, and big business, big greed, and big lust had gotten America into the great economic depression. a. Advertisers responded to this attitude by adopting a tough, no-frills advertising style. The stylish and aesthetic ads of the 1920s gave way to harsher and more cluttered ads. b. The themes in advertisements traded on the anxieties of the day: losing one’s job meant being a bad provider, spouse, or parent, unable to give the family what it needed. iii. Radio emerged as a significant advertising medium. During the 1930s, the number of radio stations rose to 814, and the number of radio sets in use more than quadrupled to 51 million.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 3: The History of Advertising and Brand Promotion

iv. Advertising, like the rest of the country, suffered during this period. Agencies cut salaries and forced staff to work four-day weeks without being paid for the mandatory day off. F. World War II and the 50s (1942 to 1960) i. Many ads during this era made direct reference to the war effort. In fact, the advertising industry set up an Advertising War Council to show its support for the war effort. ii. Following World War II, the economy continued to improve, and the consumption spree was on again. iii. There was great concern about the rise of communism. The issue of “mind control” became an American paranoia, and many people suspected that advertising was a tool of mind control. a. Stories began circulating in the 1950s that advertising agencies were doing motivation research and using a psychological sell, which served to fuel an underlying suspicion of advertising. During this period, Americans began to fear they were being seduced by subliminal advertising. b. The key figure in the subliminal advertising scare—James Vicary—turned out to be a crook and disappeared before his controversial movie theater research could ever be verified. A point to emphasize with students here is that no study has ever been able to replicate his results. iv. Further, while subliminal communication is detectable, there is no evidence that persuasive commercial information can be communicated subliminally. v. The ‘50s were also about sex, youth culture, rock ‘n’ roll, and the emergence of television to portray those images. Nothing like television had ever existed before within U.S. households—advertisers took advantage of this opportunity. vi. This era saw huge growth in the U.S. economy and household incomes. Technological change was relentless—television, telephone, the automatic washer and dryer led advertisers to portray the “modern life.” vii. 1950’s advertising projected a confused, sometimes harsh sometimes sappy presence—this was not the golden age of advertising. Two of the most significant advertising personalities of the period were Rosser Reeves of the Ted Bates agency, who is best remembered for his ultra-hard-sell style, and consultant Ernest Dichter, best remembered for his motivational research, which focused on the subconscious and symbolic elements of consumer desire. G. Peace, Love, and the Creative Revolution (1960 to 1972) i. Advertising during the 1960s was slow to respond to the massive social revolution going on all around it. ii. The nation was struggling with civil rights, the Vietnam War, and the sexual revolution, but advertising was often still portraying women and minorities in subservient roles.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 3: The History of Advertising and Brand Promotion

iii. Advertising did experience a creative revolution in which the “creatives” (art directors and copywriters) had a bigger say in management. The emphasis in advertising turned from ancillary services to the creative product and from science and research to art, inspiration, and intuition. iv. The look of advertising during this period was clean, minimalist, and sparse, with simple copy and the use of humor. Advertising as an industry became aware of its role in consumer culture—it was an icon of a culture fascinated with consumption. H. The 1970s (1973 to 1980) i. This was the age of polyester, disco, blow, and driving 55. ii. Advertising retreated to the tried-and-true but hackneyed styles of earlier decades with a return to the hard sell. iii. Advertisers actually started to present women in new roles and to include people of color in ads for a wide variety of products. iv. The process of advertising encountered new challenges. a. First, there was growing concern over what effect advertising had on children. A group of women in Boston formed Action for Children’s Television (ACT), which lobbied the government to limit the amount and content of advertising directed at children. b. Second, the Federal Trade Commission (FTC) and the National Advertising Review Board demanded higher standards of honesty and disclosure. c. Several firms were subject to legislative mandates and fines because their advertising was judged misleading, for example, Warner-Lambert (for advertising that Listerine mouthwash could cure and prevent colds) and Campbell’s Soup (for putting marbles in the bottom of a soup bowl to bolster its look). v. The most positive aspect of this period was the contribution of technology to the process of advertising. a. The growth in communications technology was unprecedented. b. Consumers began to surround themselves with communication devices. The development of the VCR, cable television, and the laser disc player all occurred during the 1970s. c. Cable programming grew in quality, with viewing options like ESPN, CNN, TBS, and Nickelodeon. I. The Designer Era (1980 to 1992) i. The average American had twice as much real income as his or her parents had at the end of WWII. a. The country made a right, and conservative politics were the order of the day. ii. Ads from this era were class- and values-conscious and openly promoted consumption, but in an understated and conservative way. iii. Several new, high technology trends were emerging in the industry, which led to more creative, bold, and provocative advertising.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 3: The History of Advertising and Brand Promotion

iv. Television advertising of this period was influenced by the rapid-cut editing style of MTV: rapid cuts with a very self-conscious character. J. The E-Revolution Begins (1993 to 2000) i. One can argue with the exact date, but somewhere near the mid-1990s is the point where it becomes clear that Internet adverting and other e-brand promotions were not only here to stay but were going to change the entire advertising landscape. ii. Big advertisers, like P&G and Sprint are warning ad agencies that they must confront a “new media” future that won’t be driven by traditional advertising. iii. Nineties ads were generally more visually oriented and much more selfaware. a. It was believed interactive media would allow direct measurement of ad exposure and impact and thus makes agencies more accountable for ad performance—the measurement never came about but the accountability did. iv. Another significant change in this era is that the center of the advertising universe moved west from New York to Minnesota, Oregon, Washington and California. K. Consumer Access, Connections, Branded Entertainment, and the Great Recession (2000 to present) i. Lots of Internet companies that burned cash like kindling never turned a profit and died. a. Part of the problem was the lack of a good Web advertising revenue model. b. Phase II of the e-ad-evolution (Web 2.0) has been much more successful than Phase I in the late 1990s. ii. Consumer control emerges in this era. a. The issues of consumers “co-creating” ads is raised here and defined as consumer-generated content (CGC). b. Cultural contradictions, social disruptions, and identity issues emerge which can be leveraged by advertising images and themes. iii. E-business is another form of e-advertising and promotion in which companies selling to business customers (rather than to household consumers) rely on the Internet to send messages and close sales. iv. Firms start to invest heavily in new means of connecting with consumers through interactive websites and social media. v. Branded entertainment is the blending of advertising and integrated brand promotion with entertainment—primarily film, music, and television programming. a. A subset of branded entertainment is product placement, the significant and prominent placement of brands within films or television programs. b. Examples are Tom Cruise wearing Ray Bans in the film Top Gun or the cast of Friends drinking Pepsi.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 3: The History of Advertising and Brand Promotion

L. Business and Advertising in a COVID Era (2020-Current) i. (COVID-19) All over the world, consumers often wore masks if in public and avoided the marketplace (and hence exposure to most in-person marketing) due to government shutdowns or personal choice to stay home. ii. Business migrated online or went hybrid, including restaurants moving to contactless delivery of food and curb side pick-up. iii. The focus of advertising messages changed. a. Many brands moved from product promotion to functional messages, promoting their pandemic-related cleaning and service protocols and commitment to customer and employee health and safety. b. Themes of ads were often uplifting. c. One strategy to bring an entertainment component to balance out the more informative appeals consumers were getting that related to hygiene and the pandemic/health communication. d. Creative messages also became more prosocial, connected to social movements such as Black Lives Matter, and marketers embedded social justice messages in their ads (e.g., Nike). iv. Media evolved because entire industries were shut down. a. When live entertainment and professional sport games were halted, message placements like sponsorships couldn’t be activated. b. Media shifted even more online, as many consumers changed to more e-shopping rather than taking the health and safety risks of shopping in person. v. At the industry level, the ad agency or business unit structure changed to become more flexible for remote workers. a. It is not yet known if this shift was a temporary change or the beginning of a new normal which refers to how people and industries alike have made some big shifts in how things operate, and routines and standards became disrupted perhaps for good. M. Discussion Activity 1 (PPT Slide 36, Time duration 10-15 minutes) i. What will the next era of advertising look like? a. Answer: Responses will vary. Some experts predict that smartphones will soon be more important to advertisers than the Internet was during the e-revolution. N. Discussion Activity 1 Debrief (PPT Slide 37, Time duration 15 minutes) i. A well-designed app can put information about products and services at the fingertips of millions of smartphone users. a. What revolutionary ways are advertisers currently using smartphone apps? 1. Answer: Answers will vary. Possible examples: restaurant apps that alert customers about wait times; retailer apps that send sales alerts on select merchandise while the consumer is in or near the store; etc.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 3: The History of Advertising and Brand Promotion

b. Can you think of additional ways advertisers could use apps to drive sales while offering value or solving a problem for their customers? 1. Answer: Answers will vary. Apps are revolutionary because they enable advertisers to reach consumers wherever they roam. Apps can even stimulate on-the-go purchases from mobile customers. To be effective, an app should offer real value or solve a problem for customers. III. Forces Affecting the Evolution of Advertising and IBP (LO 3, PPT Slides 38-40) i. Various forces will continue to affect how advertising and IBP evolves. a. Cyclical nature of history 1. It is valuable to understand history as it could repeat itself. Hygiene appeals were used in advertising during a flu pandemic in the 1920s, and this emerged again as an important reminder during the COVID19 pandemic that was in place by 2020. b. Technology 1. E-commerce and m-commerce, or mobile commerce, are reshaping the way people shop, gather information, attend events, and make purchases. c. The leveraging of contemporary culture 1. Some of the most effective and creative advertising and branding comes out of leveraging contemporary culture to its advantage, no matter what changes our society is experiencing. A. Knowledge Check 2 (PPT Slide 40, Time duration: 5 minutes) i. Advertising was completely unregulated in the United States until which year? a. 1906 b. 1918 c. 1929 d. 1938 ii. Answer: C. 1906—Advertising was completely unregulated in the United States until 1906. In that year, Congress passed the Pure Food and Drug Act, which required manufacturers to list the active ingredients of their products on their labels. The U.S. Congress passed real advertising reform when, in 1938, the Wheeler-Lea Amendments to the Federal Trade Commission Act declared “deceptive acts of commerce” to be against the law; this was interpreted to include advertising. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 3: The History of Advertising and Brand Promotion

ADDITIONAL DISCUSSION QUESTIONS The following are discussion questions that do not appear in the text, PPTs, or courseware (if courseware exists) – they are for you to use as you wish. You can assign these questions several ways: in a discussion forum in your LMS; as wholeclass discussions in person; or as a partner or group activity in class. 1. Describe the main factors that stimulated the rise of advertising. a. Answer: Although some might contend that the practice of advertising began thousands of years ago, it is more meaningful to connect advertising as we know it today with the emergence of modernity and capitalism. The explosion in production capacity that marked the Industrial Revolution gave added importance to demand-stimulation tools. Mass moves of consumers to cities and modern times helped create, along with advertising, consumer culture. 2. The 1950s were marked by great suspicion about advertisers and their potential persuasive powers. Do you see any lingering effects of this era of paranoia in attitudes about advertising today? a. Answer: Consumers remain apprehensive about the motives of advertisers, and concerns about manipulative tactics like subliminal advertising never seem to fade. This is obviously not a question with right or wrong answers, and it is a good question for exploring the class’s concerns about whether advertisers have the power to manipulate consumers. Discussing a question like this can also give an instructor the opportunity to share personal views of the topic. An issue that may arise in the context and is addressed specifically in Chapter 4 is the threat to consumer privacy from spam and transgressions at social media networking sites. 3. How do fundamental changes in society and culture change advertising practices? Provide an example. (Industrialization, Roaring Twenties, The Great Depression, World War II, Cultural Revolution of the 1960’s, COVID Era) a. Answer: Answers will vary since the class may choose different eras to explore but there should be a consensus that fundamental changes in society and culture do effect advertising practices. Students should be able to relate changes in advertising practice to fundamental changes in society and culture— noting how successful ads leverage the social and cultural forces of their day. 4. Why is branded entertainment important to the future of advertising and brand promotion? Provide an example of a successful branded entertainment campaign. a. Answer: Branded entertainment allows advertising and the brands advertised to become more naturally a part of consumer lifestyles and daily existence. The process also features the brand as a “star” in a highly involving consumer context. In addition, the branded entertainment process is not subject to nearly

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 3: The History of Advertising and Brand Promotion

as many regulations and traditional media placement of ads. Answers will vary for examples of branded entertainment campaigns, but one good example is The Wizarding World of Harry Potter, an Orlando theme park that opened in 2010, offers visitors unprecedented immersion into the fantasy world of Harry Potter. The 20-acre park features rides, attractions, restaurants, and shops—all focused on the sale of Potter merchandise. Executives at Universal worked closely with author J.K Rowling to recreate Hogwarts Castle, Dumbledore’s dusty office, and even the warlock sport known as Quidditch. The park’s opening stirred up feverish buzz among Harry Potter fans worldwide. 5. Which of the following forces will have the greatest effect on how advertising and IBP evolves, the cyclical nature of history, technology, or the leveraging of contemporary culture? What is the next era in advertising? a. Answer: Answers will vary. There are various forces that will continue to affect how advertising and IBP evolves; three broad forces are the cyclical nature of history, technology, and the leveraging of contemporary culture. For the cyclical nature of history, it is valuable to understand history as it could repeat itself. For instance, we covered how hygiene appeals were used in advertising during a flu pandemic in the 1920s, and this again emerged as important during the COVID-19 pandemic that was in place by 2020. Technology (particularly ecommerce and m-commerce) is reshaping the way people shop, gather information, attend events, and make purchases. A third force affecting the evolution of advertising and IBP is the contemporary culture. Some of the most effective and creative advertising and branding comes out of leveraging contemporary culture to its advantage, no matter what changes our society is experiencing. Some experts predict that smartphones will soon be more important to advertisers than the Internet was during the e-revolution. Even with these forces affecting constant change, advertising will always be a paid, mass-mediated attempt to inform, persuade, or remind. Understanding history and its cyclical nature can help advertisers and everyone in the advertising industry understand what works and avoid making the same mistakes again. Technology is reshaping the way people shop, gather information, attend events, and make purchases. Consumers will continue to be affected by social and cultural change and provide opportunities for advertisers, thus leveraging of contemporary culture will continue to impact the constant evolution of advertising and IBP. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

Instructor Manual

Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

TABLE OF CONTENTS Purpose and Perspective of the Chapter .......................................................................... 2 Cengage Supplements ........................................................................................................ 2 Chapter Objectives ............................................................................................................. 2 Complete List of Chapter Activities and Assessments .................................................... 3 Key Terms ........................................................................................................................... 3 What's New in This Chapter............................................................................................... 6 Chapter Outline ................................................................................................................... 6 Additional Discussion Questions ..................................................................................... 26

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to consider a wide range of social, ethical, and legal issues related to advertising and the many tools of integrated brand promotion—part of the influence of business and society. As technology, cultural trends, and consumer behavior change, the answers to the questions of what is socially responsible or irresponsible, ethically acceptable, politically correct, or legal are constantly changing as well. As a society changes, so does its perspectives and values. Like anything else with social roots and implications, advertising and promotion will affect and be affected by these changes.

CENGAGE SUPPLEMENTS The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center. • • • • •

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 4-1

Understand a balanced perspective of advertising and IBP by identifying both benefits and problems of advertising and promotion and debating key issues concerning their effects on society’s well-being.

4-2

Explain how ethical considerations affect the development and implementation of advertising and IBP campaigns.

4-3

Explain the role of government agencies, consumers, and industry selfregulation for the regulation of advertising and promotion.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

4-4

Discuss the regulation of the full range of techniques used in the IBP process.

Activity/Assessment

Duration

4-1 4-2 4-2

Icebreaker Polling Activity Discussion Activity 1 Discussion Activity 1 Debrief

Source (i.e., PPT slide, Workbook) PPT Slide 4 PPT Slide 20 PPT Slide 26 PPT Slide 27

4-3 4-3

Discussion Activity 2 Discussion Activity 2 Debrief

PPT Slide 39 PPT Slide 40

10-15 minutes 10-15 minutes

4-3 4-3

Discussion Activity 3 Discussion Activity 3 Debrief

PPT Slide 49 PPT Slide 50

10-15 minutes 10-15 minutes

Knowledge Check

PPT Slide 51

5 minutes

10-15 minutes 10-15 minutes 5-10 minutes 5-10 minutes

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KEY TERMS Advertising Substantiation Program An FTC program initiated in 1971 to ensure that advertisers make available to consumers supporting evidence for claims made in ads. Affirmative Disclosure An FTC action requiring that important material determined to be absent from prior ads must be included in subsequent advertisements. Appropriation The use of pictures or images owned by someone else without permission.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

Behavioral Targeting The process of database development made possible by online tracking markers that advertisers place on a Web surfer’s hard drive to track that person’s online surfing and shopping behavior. Cease-And-Desist Order An FTC action requiring an advertiser to stop running an ad within 30 days so a hearing can be held to determine whether the advertising in question is deceptive or unfair. Click Fraud Occurs when a company’s ads are clicked not by actual humans but by bots designed to mimic what Internet users do, causing the advertiser to overpay. Comparison Advertisements Advertisements in which an advertiser makes a comparison between the firm’s brand and competitors’ brands. Consent Order An FTC action asking an advertiser accused of running deceptive or unfair advertising to stop running the advertisement in question, without admitting guilt. Consumerism The actions of individual consumers to exert power over the marketplace activities of organizations. Consumer Watchdog Groups Groups of consumers or citizens who try and help bring attention and solutions to certain issues. Corrective Advertising An FTC action requiring an advertiser to run additional advertisements to dispel false beliefs created by deceptive advertising. Deception Making false or misleading statements in an advertisement. Defamation When a communication occurs that damages the reputation of an individual because the information was untrue. Ethics Moral standards and principles against which behavior is judged. Geofencing The ability to track consumers’ locations within a certain geographic area via their smartphones. Libel Defamation that occurs in print and would relate to magazine, newspaper, direct mail, or Internet reports. Monopoly Power The ability of a firm to make it impossible for rival firms to compete with it, either through advertising or in some other way.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

National Advertising Review Board (NARB) A body formed by the advertising industry to oversee its practice. Pester Power The strong persuasive influence kids can have on an adult’s purchases even when they have no money. Phishing A form of email spam with which spammers try to entice Web users to enter personal information on fake websites that are forged to look like authentic sites such as a bank, the IRS, or other organizations that will get the email users’ attention. Premiums Items that feature the logo of a sponsor and that are offered free, or at a reduced price, with the purchase of another item. Primary Demand The demand for an entire product category. Puffery The use of absolute superlatives like “Number One” and “Best in the World” in advertisements. Self-Actualization The highest level of Maslow’s hierarchy, where an individual strives for maximum fulfilment of individual capabilities. Self-Regulation The advertising industry’s attempt to police itself. Slander Oral defamation that in the context of promotion would occur during television or radio broadcast of an event involving a company and its employees. Small Print In advertising or marketing, it refers to the writing that is small and difficult to read and is often challenged by customers as being unethical. Spam Unsolicited bulk email sent to a large number (often millions) of personal and commercial email addresses. Unfair Advertising Defined by Congress as “acts or practices that cause or are likely to cause substantial injury to consumers, which is not reasonably avoidable by consumers themselves and not outweighed by the countervailing benefits to consumers or competition.” Vertical Cooperative Advertising An advertising technique whereby a manufacturer and dealer (either a wholesaler or retailer) share the expense of advertising. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition: •

• • •

New key term o consumer watchdog groups o pester power o self-actualization o small print o transcendence Updates on government regulation Updated benefits and problems associated with advertising and IBP New support articles from: o Journal of Consumer Research o Journal of Advertising o Journal of Marketing o Journal of Advertising Research o International Journal of Advertising o JCIRA o Journal of Marketing Research o Journal of Consumer Research

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The Social Aspects of Advertising (LO 1, PPT Slides 5-20) i. The social aspects of advertising are organized issue by issue. We have chosen to raise an issue and then take a pros-and-cons approach to offer students a balanced treatment. ii. If a person finds advertising intrusive and manipulative, the social aspects usually provide fuel for the fires of skepticism. iii. One thing is sure: The social impact of advertising invites vigorous debate about what is positive and negative in the advertising process. A. Advertising Educates Consumers

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

i. Does advertising provide valuable information to consumers, or does it seek only to confuse or entice them? Here’s what the experts on both sides have to say. ii. Pro: Advertising Informs a. Supporters of advertising argue that advertising educates consumers, equipping them with the information they need to make informed purchase decisions. b. By regularly assessing information and advertising claims, consumers become more educated about the features, benefits, functions, and values of products. Educated consumers enhance their lifestyles and economic power through astute marketplace decision making. c. A related argument is that advertising reduces search time for desired products and services, saving consumers both time and money. d. Another aspect of informing the public has to do with the role advertising can play in communicating about important social issues. Example: Miller Brewing devotes millions of dollars a year to promoting responsible drinking with both print and television advertisements. iii. Con: Advertising Is Superficial and Intrusive a. Critics argue that advertising does not provide good product information and that it is so pervasive and intrusive to daily life that it is impossible to escape. The information it does provide is shallow and meaningless. b. All information in an ad is biased, limited, and inherently deceptive. c. Critics claim that ads should contain functional feature information and performance results—things that can be measured and tested brand by brand. d. Advertisers argue in response that in many instances, consumers are interested in more than a physical, tangible material good with performance features and purely functional value and, instead, rely on emotional or hedonic criteria in decision-making. e. We highlight this issue—both are good ads and do communicate information—one functional, one emotional. f. With respect to the intrusive aspect of advertising, the argument is that advertising has become so widespread (in some critics’ view, ubiquitous) that consumers are starting to revolt. In 2020, approximately 73 million Internet users in the United States had installed ad blockers on their devices. Similarly, consumers are getting frustrated with brands working their way into entertainment and information programming. g. Clutter and intrusiveness reduce the effectiveness of advertising. According to one expert, “New media have more potential to deliver even more saturation, clutter, and intrusiveness than traditional media, in which case the new media will only worsen marketing resistance.” B. Advertising Improves the Standard of Living

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

i. Whether advertising raises or lowers the general standard of living is hotly debated. Opinions vary widely on this issue and go right to the heart of whether advertising is a good use or a waste of energy and resources. ii. Pro: The Economic Effects of Advertising Lower the Cost of Products a. Four aspects of the nature of advertising, supporters argue, help lower the cost of products: b. Due to the economies of scale produced by advertising, consumers may pay less. c. Greater variety of choice in products and services stems from the increased probability of success firms realize from being able to introduce new products with the assistance of advertising. d. The pressures of competition and the desire to have products that are easy to advertise stimulate firms to produce improved products and brands and introduce lower-priced brands. e. The speed and reach of advertising aids in the diffusion of innovations. This means that new discoveries can be communicated to a large percentage of the marketplace very quickly. f. All four of these factors can contribute positively to the standard of living and quality of life in a society. g. Advertising may be instrumental in bringing about these effects because it serves an important role in demand stimulation and keeping customers informed. iii. Con: Advertising Wastes Resources and Raises the Standard of Living Only for Some a. Advertising represents an inefficient, wasteful process that “shuffles existing total demand,” rather than expanding total demand. b. Advertising thus brings about economic stagnation and a lower standard of living. c. Similarly, brand differences are trivial, and the proliferation of brands does not offer a greater variety of choice but rather a meaningless waste of resources. d. In addition, some argue that advertising is a tool of capitalism that widens the gap between the rich and the poor. C. Advertising Affects Happiness and General Well-Being i. Critics and supporters of advertising differ significantly in their views about how advertising affects consumers’ happiness and general well-being. ii. Con: Advertising Creates Needs a. A common cry among critics is that advertising creates needs and makes people buy things they don’t really need or even want. The argument is that consumers are relatively easy to seduce into wanting the next shiny bauble offered by marketers. iii. Pro: Advertising Addresses a Wide Variety of Basic Human Needs a. Advertising is not powerful enough to create human needs—refer to Maslow’s hierarchy discussion in the text. Rather, once human needs

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

emerge, advertising (in the context of modern, mass consumption) can offer alternatives to addressing human need states. b. In the pursuit of esteem, many consumers buy products they perceive to have status and prestige: expensive diamonds, clothing, automobiles, and homes. iv. Con: Advertising Promotes Materialism a. It is also claimed that individuals’ wants and aspirations may be distorted by advertising. b. Material goods are placed ahead of spiritual and intellectual pursuits. Advertising, which portrays products as symbols of status, success, and happiness, contributes to the materialism and superficiality in a society. c. It creates wants and aspirations that are artificial and self-centered. This results in an overemphasis on the production of private goods to the detriment of public goods (such as highways, parks, schools, and infrastructure). v. Pro: Advertising Only Reflects Society’s Priorities a. Defenders of advertising argue that it did not create the American emphasis on materialism: Major holidays like Christmas (gifts), Thanksgiving (food), and Easter (candy and clothing) have become festivals of consumption. b. Authors point out that goods and possessions have been used in cultures for centuries to mark special events, play significant roles in rituals, and serve as vessels of special meaning long before there was modern advertising. D. Advertising: Demeaning and Deceitful, or Liberating and Artful? i. Advertisers are always on the lookout for creative and novel ways to grab and hold the attention of their audience. ii. In addition, an advertiser has a very specific profile of the target customer in mind when an ad is being created. iii. Con: Advertising Perpetuates Stereotypes a. The process of targeting audiences yields a negative effect by perpetuating stereotypes. b. The portrayal of women, the elderly, and ethnic minorities in stereotypical roles is of particular concern. c. Women are still predominantly cast as homemakers or objects of desire. d. The elderly are often shown as helpless or ill, even though many active seniors enjoy a rich lifestyle. E. Pro: Advertisers Are Showing Much More Sensitivity i. Advertisers are realizing that a diverse world requires diversity in message images, perhaps signaling the end of stereotyping in advertising. However, many remain dissatisfied with the pace of change. F. Con: Advertising Is Often Offensive i. A pervasive and long-standing criticism of advertising is that it is often offensive, and the appeals are in poor taste.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

a. Taste is just that, a personal and inherently subjective evaluation. What is offensive to one person is merely satiric to another. b. Many times, advertisers get caught in a firestorm of controversy because certain, and sometimes relatively small, segments. c. The text lays out several examples of honest, worthy organizations that have inadvertently offended consumers with their ads. Perhaps, consumers—overloaded with commercial stimuli—are losing their tolerance. G. Pro: Advertising Is a Source of Fulfillment and Liberation i. There are those who argue that the consumption that advertising glorifies is actually quite good for members of society. a. Modern conveniences are appreciated that liberate people from the fouler facets of the natural, such as body odor, close contact with dirty diapers, and washing clothes by hand. b. Before the modern consumer age, the consumption of many goods was restricted by social class. c. Modern advertising has helped bring the democratization of goods. There is a liberating quality to advertising that should be appreciated. H. Con: Advertisers Deceive via Subliminal Stimulation i. Since there is so much confusion surrounding the issue of subliminal advertising, perhaps this is the most appropriate point to provide some clarification: There is no such thing. a. Research by psychologists and marketers alike verifies that the human brain is capable of processing information below the conscious threshold of awareness. b. Although there is some evidence for some types of subconscious ad processing, it is short-lived and found only in laboratories. To date there is no practical application of subliminal advertising. I. Pro: Advertising Is Democratic Art i. There are those who argue that one of the best aspects of advertising is its artistic nature. a. The pop art movement of the late 1950s and 1960s, particularly in London and New York, was characterized by a fascination with commercial culture. The text describes how Andy Warhol demonstrated that art was for the people and that the most accessible art was advertising. b. Some recent integrated brand promotions are combining art with a bit of the democratic process. Patrón Tequila, for example, invites submission of artworks inspired by the brand’s iconic bottle and allows consumers to vote online for their favorites. J. Advertising Has a Powerful Effect on the Mass Media i. Pro: Advertising Fosters a Diverse and Affordable Mass Media

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

a. Advertising fans argue that advertising is the best thing that ever happened to an informed democracy because it is often the financial mechanism for purportedly unbiased media. b. Magazines, newspapers, television, and radio stations are supported by advertising expenditures. c. Advertisers are reaching out to consumers through social media sites such as Snapchat, Twitter, TikTok, and Facebook, which means social media channels are benefitting from advertising dollars as well. d. Others argue that advertising provides invaluable exposure to issues. When noncommercial users of advertising rely on the advertising process, members of society receive information on important social and political issues. ii. Con: Advertising Affects Programming a. Critics argue that advertisers who place ads in media have an unhealthy effect on shaping the content of information contained in the media. b. Some specific examples in the chapter point out the payment to journalists for favorable editorial comments about brands. c. Another charge leveled at advertisers is that they purchase airtime only on programs that draw large audiences. Critics argue that these mass market programs lower the quality of television because cultural and educational programs, which draw smaller and more selective markets, are dropped in favor of mass market programs. d. Finally, programs that deal with important issues such as poverty and AIDS have a hard time attracting advertisers. K. Polling Activity (PPT Slide 20, Time duration 10-15 minutes) a. Advertising is clearly an immensely powerful instrument for the elimination of ignorance.

o Agree o Disagree o Not Sure b. Answer: Responses will vary. This question should lead to a spirited discussion. To help the class appreciate the information available through advertising, it is important to encourage reflection about the differences in information that can be gleaned from various media. It is also important to point out that by helping consumers know what options are available in a product category, even when more information would be called for before purchase, advertising has provided value. In addition, it would be appropriate to discuss advertising’s role in reducing the amount of time consumers must spend in searching for

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

information about products. For example, one could pose a question such as: “Would your efficiency and effectiveness as a shopper be reduced or enhanced if all forms of advertising were eliminated?” Or, on the other side of the argument, “Are people ‘worse’ consumers because they become emotionally taken with ads or become more materialistic because of ads? II.

The Ethical Aspects of Advertising (LO 2, PPT Slides ) i. Ethics are moral standards and principles against which behavior is judged. Honesty, integrity, fairness, and sensitivity are all included in a broad definition of ethical behavior. Much of what is judged as ethical or unethical comes down to personal judgment. A. Truth in Advertising i. Deception is making false or misleading statements in an advertisement. The difficulty regarding this issue is in determining just what is deceptive. a. A manufacturer who claims a laundry product can remove grass stains is subject to legal sanctions if the product cannot perform the task. b. Another manufacturer who claims to have “The Best Laundry Detergent in the World,” however, is within its rights to employ superlatives. The use of absolute superlatives like “Number One” or “Best” is called puffery and is considered completely legal. ii. The “small print” that accompanies many contests or sweepstakes is often challenged by consumers. iii. Consumer watchdog groups try and help bring attention and solutions to these issues. iv. Likewise, it is impossible to legislate against emotional appeals such as those made about the beauty- or prestige-enhancing qualities of a product because these claims are unquantifiable. a. Since these appeals are legal, the ethics of such appeals fall into a gray area. Beauty and prestige, it is argued, are in the eye of the beholder, and such appeals are neither illegal nor unethical. B. Advertising to Children i. Children are viewed as vulnerable consumers and the desire to restrict advertising aimed at children is based on a wide range of concerns, not the least of which is that at one time it was estimated that children between 2 and 11 years old see around 25,600 ads in a year. ii. The desire to restrict advertising to children is based on three concerns. Many critics argue that programs featuring commercial products, especially products aimed at children, are simply long advertisements. iii. It is believed that advertising promotes superficiality and values founded in material goods and consumption. Children are considered inexperienced consumers and easy prey for the sophisticated persuasions of advertisers.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

Advertising influences children’s demands for everything from toys to snack foods. iv. These demands create an environment of child-parent conflict. a. Parents find themselves having to say no over and over again to children whose desires are piqued by effective advertising. This is called pester power, which notes the strong influence kids can have on adult’s purchases even when they have no money. v. Add to that, the historical view held by child psychologists who contend that advertising advocates violence, is responsible for child obesity, creates a breakdown in early learning skills, and results in a destruction of parental authority. vi. One of the earliest restrictions was due to the efforts of the specialinterest group Action for Children’s Television that helped get the Children’s Television Act passed in 1990. This regulation restricts advertising on children’s programming to 10.5 minutes per hour on weekends and 12 minutes per hour on weekdays. vii. There is the fairly well-supported argument that children grow up in a system where consumption is a part of everyday life. viii. These arguments demonstrate that children at a fairly young age understand the rules of commerce, gain a healthy skepticism for advertising, and clearly recognize its intent. C. Advertising Controversial Products i. There are ethical questions about the wisdom of allowing the advertising of controversial goods and services, such as alcoholic beverages, tobacco, gambling and lotteries, and firearms. ii. Critics charge that tobacco and alcoholic beverage firms are targeting adolescents with advertising and making dangerous and addictive products appealing. iii. The controversy over alcohol has moved to the forefront as recent looser restrictions by networks have caused a huge spike in spending and ad placement on television by alcoholic beverage marketers. iv. Recent studies completely contradict research conducted since the 1950s carried out by marketing, communications, psychology, and economics researchers—including assessments of all the available research by the Federal Trade Commission. a. Although children at a very early age can, indeed, recognize tobacco advertising characters like “Joe Camel,” they also recognize as easily the Energizer Bunny (batteries), the Jolly Green Giant (canned vegetables), and Snoopy (life insurance)—all characters associated with adult products. b. Kids are also aware that cigarettes cause disease and know that they are intended as an adult product. v. Research shows that children are more influenced by parents and playmates than by the mass media

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

vi.

Primary demand is demand for an entire product category. a. All of the controversial product categories are mature products and advertising does not affect aggregate demand in mature product categories—revisit Chapter 1. b. Advertising is used to gain and maintain market share for brands. vii. Gambling and state-run lotteries are another controversial product with respect to advertising. a. What is the state’s obligation to protect vulnerable citizens by restricting the placement or content of gambling or lottery advertising? Is the state above the criticisms it levels at advertisers? b. Advertising is not powerful enough to create primary demand in mature product categories like alcohol or tobacco. D. Discussion Activity 1 (PPT Slide 26, Time estimation: 5-10 minutes) i. Why do you think advertising directed at children is the focal point of so much attention? a. Answer: Responses will vary. Advertising critics and regulators focus much of their attention on protecting groups in the population that may be vulnerable to the effects of advertising. Governments around the world commonly seek to the shelter from persuasive effects of advertising. E. Discussion Activity 1 Debrief (PPT Slide 27, Time estimation: 5-10 minutes) i. Do you think kids are particularly vulnerable—or do they know what advertising is all about? i. Answer: Vulnerability could be based in misunderstanding an advertising message or simply not understanding that all advertising is conducted in an effort to persuade. Children are vulnerable in this regard and may be subject to extreme levels of advertising exposure (the-television-as-babysitter syndrome). But careful examination of the literature shows that children as young as five to six years old understand that advertising has the intention to sell them something, and further, they develop skepticism toward advertising at this young age as well. III. The Regulatory Aspects of Advertising (LO 3, PPT Slides 28-40) i. The term regulation immediately brings to mind government scrutiny and control of the advertising process. ii. Three primary groups—consumers, industry organizations, and government bodies—regulate advertising in the truest sense. They shape and restrict the advertising process. A. Areas of Advertising Regulation i. There are three basic areas of advertising regulation: deception and unfairness in advertising, competitive issues, and advertising to children. Each area is a focal point for regulatory action.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

ii. Deception and Unfairness a. Agreement is widespread that deception in advertising is unacceptable. The problem, of course, is that it is as difficult to determine what is deceptive from a regulatory standpoint as it is from an ethical standpoint. b. The Federal Trade Commission (FTC) has a policy statement on deception. It specifies the following three elements as essential in declaring an ad deceptive: 1. There must be a representation, omission, or practice that is likely to mislead the consumer. 2. This representation, omission, or practice must be judged from the perspective of a consumer acting reasonably in the circumstance. 3. The representation, omission, or practice must be a “material” one. The basic question is whether the act or the practice is likely to affect the consumer’s conduct or decision with regard to the product or service. If so, the practice is material, and consumer harm is likely because consumers are likely to have chosen differently if not for the deception. 4. It is also a definition that can lead to diverse interpretations when it is actually applied to advertisements in real life. One critical point about the FTC’s approach to deception is that both implied claims and missing information can be bases for deeming an ad deceptive. 5. This advice is very legal, but practical guidelines can be found on the FTC’s website. The definition of unfairness had been relatively vague. 6. In 1994, Congress ended a long-running dispute in the courts and in the advertising industry by approving legislation that defines unfair advertising as “acts or practices that cause or are likely to cause substantial injury to consumers, which is not reasonably avoidable by consumers themselves and not outweighed by the countervailing benefits to consumers or competition.” B. Competitive Issues i. There are several advertising practices relating to maintaining fair competition that can result in regulation: cooperative advertising, comparison advertising, and the use of monopoly power. ii. Vertical cooperative advertising is an advertising technique in which a manufacturer and dealer (either a wholesaler or retailer) share the expense of advertising. There is nothing illegal, per se, about the practice. The competitive threat inherent in the process is that certain dealers can be given bogus cooperative advertising allowances. These allowances require no effort or expenditure on the part of the dealer and thus represent hidden price concessions, giving these dealers a competitive cost advantage. As such, they are a form of unfair competition and are deemed illegal. If an advertising allowance is

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

granted to a dealer, that dealer must demonstrate that the funds are applied specifically to advertising. iii. Comparison advertisements are those in which an advertiser makes a comparison between the firm’s brand and competitors’ brands. Again, comparison ads are completely legal. However, if the advertisement is carried out in such a way that the comparison is not a fair one, there is an unjust competitive effect. The FTC may require a firm using comparison to substantiate claims made in an advertisement and prove that the claims do not tend to deceive. A slightly different remedy is the use of a disclaimer to help consumers understand comparative product claims. iv. Some firms are so powerful in their use of advertising that monopoly power by virtue of their spending power can become a problem. This issue normally arises in the context of mergers and acquisitions where two powerful competitors and advertisers merge to create a monopolylike power. C. Advertising to Children i. This was raised earlier as a social issue, but here critics argue that continuously bombarding children with persuasive stimuli can alter their motivation and behavior. ii. Although government organizations, such as the FTC, have been active in trying to regulate advertising directed at children, industry and consumer groups have been more successful in securing restrictions. iii. The major television networks have set their own guidelines for advertising aimed at children. The guidelines restrict the use of celebrities, prohibit exhortative language (such as “Go ask dad”), and restrict the use of animation to one-third of the total time of a commercial. D. Regulatory Agents i. Government Regulation a. In the United States, several different government agencies have been given the power and responsibility to regulate the advertising process. We identify the seven agencies that have legal mandates concerning advertising and their areas of regulatory responsibility. b. The newest, the Consumer Finance Protection Bureau (CFPB), was established as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, in part, as a result of the financial crisis in 2009 caused by lack of banking regulations. Its authority includes the regulation of home loan and credit card practices as well as a regulatory system for financial services advertising. c. The FTC is the most powerful of the regulatory bodies and warrants special attention. The FTC has been granted legal power through legislative mandates and also has developed programs for regulating advertising.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

ii. The FTC’s Legislative Mandates a. The Federal Trade Commission was created by the Federal Trade Commission Act in 1914. The original purpose of the agency was to prohibit unfair methods of competition. b. In 1916, the FTC concluded that false advertising was one way in which a firm could take unfair advantage of another, and advertising became a primary concern of the agency. c. In 1938, the effects of deceptive advertising on consumers became an issue for the FTC. The Wheeler-Lea Amendment (1938) was concerned only with the effect of advertising on competition. The amendment broadened the FTC’s powers to include regulation of advertising that was misleading to the public (regardless of the effect on competition). d. Several other acts provide the FTC with legal powers over advertising. The Robinson-Patman Act (1936) prohibits firms from providing phantom cooperative-advertising allowances as a way to court important dealers. e. Consumer protection legislation, which seeks to increase the ability of consumers to make more informed product comparisons, includes the Fair Packaging and Labeling Act (1966), the Truth in Lending Act (1969), and the Fair Credit Reporting Act (1970). The FTC Improvement Act (1975) expanded the authority of the commission by giving it the power to issue trade regulation rules. f. Recent legislation relates to the FTC’s role in monitoring and regulating advertising. The Nutrition Labeling and Education Act 1990 (NLEA) requires uniformity in the nutritional labeling of food products and sets strict rules for claims about the nutritional attributes of food products. The Children’s Television Act (1990) limits the minutes of advertising during television programs for children. iii. The FTC’s Regulatory Programs and Remedies a. The advertising substantiation program of the FTC was initiated in 1971 with the intention of ensuring that advertisers make supporting evidence for their claims available to consumers. The program was strengthened in 1972 when the commission forwarded the notion of “reasonable basis” for the substantiation of advertising. This extension suggests not only that advertisers should substantiate their claims, but also that the substantiation should provide a reasonable basis for believing the claims are true. Simply put, before a company runs an ad, it must have documented evidence that supports the claim it wants to make in that ad. b. The consent order and the cease-and-desist order are the most basic remedies used by the FTC in dealing with deceptive or unfair advertising. In a consent order, an advertiser accused of running deceptive or unfair advertising agrees to stop running the advertisements in question, without admitting guilt. A cease-and-desist order requires that the

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

advertising in question be stopped within 30 days so that a hearing can be held to determine whether the advertising is deceptive or unfair. c. Affirmative disclosure is another remedy available to the FTC. An advertisement that fails to disclose important material facts about a product can be deemed deceptive, and the FTC may require affirmative disclosure in future advertising, whereby the important material absent from prior ads must be included in subsequent advertisements. The absence of important material information may cause consumers to make false assumptions about products in comparison to the competition. d. The most extensive remedy for advertising determined to be misleading is corrective advertising. In cases where evidence suggests that consumers have developed false beliefs about a brand based on misleading or deceptive advertising, the firm may be required to run corrective ads to dispel those false beliefs. e. The FTC has specific rules for advertisements that use celebrity endorsements, testimonials, and bloggers. In the case of experts (those whose experience or training allows a superior judgment of products), the endorser’s actual qualifications must justify his or her status as an expert. In the case of celebrities (such as Jamie Lee Curtis, a former spokesperson for Activia), guidelines indicate that the celebrity must be an actual user of the product, or the ad is considered deceptive. Finally, the FTC has recently issued guidelines, which specify that bloggers who feature brands in their blogs and who receive cash or in-kind payments (e.g., free products) must disclose this material relationship with the firm. iv. State Regulation a. State governments do not have extensive policing powers over the promotional activities of firms because most firms engage in interstate commerce making the jurisdiction federal. Since the 1980s, the National Association of Attorneys General, whose members include the attorneys general from all 50 states, has been active as a group in monitoring advertising and sharing its findings. Overall, however, states will rely on the vigilance of the federal agencies discussed earlier to monitor promotional practices and then act against firms with questionable activities. v. Industry Self-Regulation a. The promotion industry has come far in terms of self-control and restraint. Some of this improvement is due to tougher government regulation, and some to industry self-regulation. Self-regulation is the promotion industry’s attempt to police itself. b. Supporters say it is a shining example of how unnecessary government intervention is, whereas critics point to it as a joke, an elaborate shell game. c. According to the critics, meaningful self-regulation occurs only when the threat of government action is imminent.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

d. Several industry and trade associations and public service organizations have voluntarily established guidelines for advertising within their industries. The reasoning is that self-regulation is good for the advertising community as a whole and promotes the credibility, and therefore the effectiveness, of advertising itself. We consider the various business organizations that have taken on the task of regulating and monitoring advertising. e. The purpose of self-regulation by these organizations is to evaluate the content and quality of promotional activities specific to their industries. The effectiveness of such organizations depends on the cooperation of members and the policing mechanisms used. Industry self-regulation is not just the result of efforts by industry organizations. Firms themselves often voluntarily regulate their behavior. The Walt Disney Company, in an attempt to respond to consumers’ concerns about child obesity, decided to carefully monitor all products advertised on the firm’s child-focused television channels to ensure that all ads complied with strict new nutritional standards. vi. The National Advertising Review Board a. The NARB is the operations arm of the Advertising Self-Regulatory Council (ASRC) which establishes the policies and procedures for advertising industry self-regulation, including the National Advertising Division (NAD), Children’s Advertising Review Unit (CARU), National Advertising Review Board (NARB), Electronic Retailing Self-Regulation Program (ERSP), and Online Interest-Based Advertising Accountability Program (Accountability Program). b. Complaints received from consumers, competitors, or local branches of the Better Business Bureau (BBB) are forwarded to the NAD. After a full review of the complaint, the issue may be forwarded to the NARB and evaluated by a panel. The general procedure for dealing with complaints is detailed. vii. State and Local Better Business Bureaus a. There are more than 140 separate local bureaus. Membership dues paid by area businesses support each local organization. The three divisions of a local BBB—merchandise, financial, and solicitations—investigate advertising and selling practices of firms in their areas. A local BBB has the power to forward a complaint to the NAD for evaluation. Beyond its regulatory activities, the BBB tries to avert problems associated with advertising by counselling new businesses and providing information to advertisers and agencies regarding legislation, potential problem areas, and industry standards. viii. Advertising Agencies and Associations a. An individual agency is legally responsible for the advertising it produces and is subject to sanctions for deceptive or misleading claims. The American Association of Advertising Agencies (4As) has no legal or binding

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

power over its agency members, but it can apply pressure when its board feels industry standards are not being upheld. The 4As also publishes guidelines on advertising messages for its members. One of the most widely recognized industry standards is the 4As’ Creative Code. The code outlines the responsibilities and social impact advertising can have and promotes high ethical standards of honesty and decency. ix. Media Organizations a. Individual media organizations evaluate the advertising they receive for broadcast and publication. b. The National Association of Broadcasters (NAB) has a policing arm known as the Code Authority, which implements and interprets separate radio and television codes. Newspapers have historically been rigorous in their screening of advertising. Many newspapers have internal departments to screen and censor ads believed to be in violation of the newspaper’s advertising standards. Although the industry does not have a formal code, many individual publications have very high standards. c. The Direct Marketing Association (DMA) is active in promoting ethical behavior and standards among its members. It has published guidelines for ethical business practices. d. In 1971, the association established the Mail Preference Service, which allows consumers to have their names removed from most direct mail lists. e. Those whose livelihoods depend on advertising are just as interested as consumers and legislators in maintaining high standards. If advertising is perceived by consumers as an unethical and untrustworthy business activity, the economic vitality of many organizations will be compromised. f. Self-regulation can help prevent such a circumstance and is in the best interest of all the organizations discussed here. x. Internet Self-Regulation a. Because there are few federal guidelines established for advertising and promotion on the Internet (with the exception of anti-spam legislation and COPPA: Children’s On-line Privacy Protection Act), the industry itself has been the main governing body. b. The most significant organization is the Digital Advertising Alliance (DAA) which was launched around the Self-Regulatory Principles for Online Behavioral Advertising which was formulated in 2009. The DAA is a leading industry association applying consumer-friendly standards to online behavioral advertising across the Internet. The DAA operates as a true industry self-regulatory body in that it cannot mandate punishment for what it perceives as a violation of codes of good practice. The only power of the DAA was to issue a “decision” that KIA did not comply with the industry’s guidelines.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

c. Internationally, the United Kingdom has the Internet Watch Foundation and Canada has Canadian Association of Internet Providers offering selfregulation guidelines. xi. Consumers as Regulatory Agents a. Consumers themselves are motivated to act as regulatory agents based on a variety of interests, including product safety, reasonable choice, the right to information, and privacy. b. Advertising tends to be a focus of consumer regulatory activities because of its conspicuousness. Consumerism and consumer organizations have provided the primary vehicles for consumer regulatory efforts. c. Consumerism, the actions of individual consumers to exert power over the marketplace activities of organizations, is by no means a recent phenomenon. The earliest consumerism efforts can be traced to seventeenth-century England. In the United States, there have been recurring consumer movements throughout the twentieth century. d. These movements have focused on the same issue: Consumers want a greater voice in the whole process of product development, distribution, and information dissemination. Consumers commonly try to create pressure on firms by withholding patronage through boycotts. Some boycotts have been effective. Firms as powerful as Procter & Gamble, Kimberly-Clark, and General Mills all have historically responded to threats of boycotts by pulling advertising consumers found offensive. e. Consumer Organizations 1. The Consumer Federation of America (CFA) was founded in 1968 and now includes over 300 national, state, and local consumer groups and labor unions as affiliate members. The goals of the CFA are to encourage the creation of consumer organizations, provide services to consumer groups, and act as a clearinghouse for information exchange. 2. Consumers Union is a nonprofit consumer organization best known for its publication of Consumer Reports. Established in 1936, Consumers Union describes itself as “an expert, independent, nonprofit organization whose mission is to work for a fair, just, and safe marketplace for all consumers and to empower consumers to protect themselves.” This organization supports itself through the sale of publications and accepts no funding, including advertising revenues, from any commercial organization and now claims to have the most subscribers to its website of any organization of its type (www.consumersunion.org). f. These two groups are well known, but there are literally hundreds of such groups organized by geographic location or product category. Consumers have proven that with an organized effort, corporations can and will change their practices. In one of the most publicized events in recent times, consumers applied pressure to Coca-Cola and, in part, were

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

responsible for forcing the firm to remarket the original Coca-Cola formula . E. Discussion Activity 2 (PPT Slide 39, Time duration 10-15 minutes) i. Why does comparative advertising need a special set of guidelines to prevent unfair competition? a. Answer: Comparison advertising involves some claim of superiority versus a competitor’s brand. The competitive brand need not be mentioned explicitly. Comparative ads can be powerful in their effects when strong claims are advanced. Guidelines are important for this type of ad to ensure the accuracy of the claims that competitors advance about one another. F. Discussion Activity 2 Debrief (PPT Slide 40, Time duration 10-15 minutes) i. Do you think self-regulation can be effective, or is government regulation the only truly effective way to control advertising and promotional efforts? a. Responses will vary. Effective controls over advertising often reflect both government intervention and the industry self-regulation. One important example of this is the 1998 multi-billion-dollar settlement between cigarette manufacturers and the states. The agreement was a powerful combination of government action and the industry selfcorrection. In addition to paying billions of dollars to settle lawsuits brought by the state attorneys general to recoup money spent on smoking-related illnesses, tobacco companies also agreed to end advertising at sporting events and to stop marketing to young people. IV. The Regulation of Other Promotional Tools i. As other promotional tools gain prominence, the regulation of these promotions becomes more relevant. This is a regulatory environment that is emerging. A. Regulatory Issues in Direct Marketing and the Internet i. The most pressing regulatory issue facing direct marketing and e-commerce is database development and the privacy debate that accompanies the practice. ii. Privacy a. Online privacy issues focus on a wide range with behavioral targeting issues made possible by technology. b. Behavioral targeting is the process of database development facilitated by online tracking markers that advertisers place on a Web surfer’s devices in order to track that person’s online behavior. c. Big online content providers, like Facebook, Google, and Apple, don’t charge users a fee for access to a variety of data and information services. As such, they have to generate revenue somehow from these services, so they sell your online behavior patterns to advertisers. d. Another iteration of this privacy invasion is the now widespread capability to track consumers’ physical whereabouts by virtue of GPS devices embedded in smartphones. Advertisers can use geofencing to identify

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

smartphone users within a given geographic area (such as inside a hotel or near a restaurant) and then offer these nearby consumers special deals or monitor their social media posts. e. There is some hope for improved privacy. Twitter has recently agreed to adopt a “do-not-track” policy option, which is a privacy initiative being heavily promoted by the FTC, privacy advocates, and even Mozilla (the developer of the Firefox Web browser). In addition, Google said it is considering implementing the do-not-track option on its Chrome browser. iii. Spam a. Spam refers to the unsolicited commercial messages sent over the Internet and is a serious problem. b. “Phishing” is fraudulently attempting to acquire private consumer information, such as usernames, passwords, social security numbers, and credit card details, by pretending to be a trustworthy entity—a bank, the IRS, or other organization that will get the email user’s attention. To put the problem into perspective, it is estimated that about 7.7 trillion spam messages are sent every year. Internet providers have tried to form coalitions to fight spam. c. Technological solutions (anti-spam software) are getting more sophisticated. The U.S. Senate passed the CAN SPAM Act in November of 2003. Be sure students recognize that not all spam is blocked by this Act—only fraudulent, deceptive, or pornographic messages. There have been several prosecutions under the CAN SPAM Act and violators are spending time in jail. iv. Contests, Sweepstakes, Coupons a. Even though privacy and spam are huge direct marketing and ecommerce issues, they are not the only ones. The next biggest legal issue has to do with sweepstakes, contests, and coupons. b. Direct mail sweepstakes are required to state that a purchase is not necessary to win. These activities give marketers the opportunity to construct databases of customers. If customers request that their names be removed, this must be done promptly. In addition, penalties can be imposed on marketers who do not promptly remove consumers’ names from mailing lists at the consumer’s request. c. Coupon fraud regulation is needed to protect marketers rather than consumers. Coupons distributed through direct mail, newspapers, magazines, or the Internet requires legal protection for the marketer more than anything else. Fraud abounds in the area of couponing, aggravated by the fact that approximately 90 percent of the U.S. population still uses coupons and redeems billions of dollars’ worth of coupons a year. Safeguards like stating strict limitations on redemption, geographic limitations, or encrypted bar codes that can be scanned to detect fraud are all ways to reduce problems with contests, sweepstakes, and coupons.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

v. Telemarketing a. Another legal issue in direct marketing that has hit the headlines in recent years has to do with telemarketing practices. The first restriction on telemarketing was the Telephone Consumer Fraud and Abuse Prevention Act of 1994. Telemarketers are required to state their names, the purpose of the call and the company they work for. Telemarketers are only allowed to make calls between 8 A.M. and 9 P.M., and they cannot call the same customer more than once every three months. In addition, they cannot use automatic dialing machines with a recorded message, and they must keep a list of consumers who do not want to be called. The “do-not-call-registry” was created by the Federal Trade Commission on October 1, 2003. Be sure students understand that 60 million phone numbers have been registered, not 60 million consumers. B. Regulatory Issues in Sales Promotion i. Regulatory issues in sales promotion focus on three areas: premium offers, trade allowances, and contests and sweepstakes. ii. Premium Offers a. Premiums are items offered for free or at a greatly reduced price with the purchase of another item. Marketers must state the fair retail value of the item offered as a premium. iii. Trade Allowances a. In the area of trade allowances, marketers need to be familiar with the guidelines set forth in the original Robinson-Patman Act of 1936. Even though this is an old piece of legislation, it still applies to contemporary trade promotion practices. Customers need to be offered similar prices on similar merchandise. This means marketers cannot use special allowances to highly attractive customers. iv. Contests and Sweepstakes a. The issues discussed in the e-marketing section apply as FTC has specified four violations of regulations that marketers must avoid in carrying out sweepstakes and contests: 1. Misrepresentation of value. 2. Failure to provide complete disclosure about the conditions necessary to win. 3. Failure to disclose the conditions necessary to obtain a prize. 4. Failure to ensure that a contest or sweepstakes is not classified as a lottery. v. Product/Brand Placement (Insertion) a. The area of sales promotion receiving attention most recently in the regulatory arena is brand/product placement in television programs and films. As discussed earlier, consumer groups feel that unless television networks and film producers reveal that brands are placed into a program or film for a fee, consumers could be deceived into believing that the product use is natural and real.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

C. Regulatory Issues in Public Relations i. Privacy a. The privacy problems facing a public relations firm center on the issue of appropriation. Public relations firms cannot use pictures or images owned by someone else—appropriation. b. The same is true of public relations materials prepared for release to the press or as part of a company’s public relations kit. ii. Copyright Infringement a. Copyright infringement can occur when a public relations effort uses written, recorded, or photographic material from others’ works. iii. Defamation a. When a communication occurs that damages the reputation of an individual because the information is not true, it is referred to as defamation of character. b. Slander is oral defamation over a TV or radio broadcast. c. Libel is defamation that occurs in print such as in magazines, newspapers, on the Internet, or direct mail. D. Discussion Activity 3 (PPT Slide 49, Time duration 10-15 minutes) i. Spam and phishing are considered the scourge of not just the Internet, but IBP as well. a. What are some ways that spam can be limited—or eliminated? 1. Answer: Answers will vary. As in other forms of advertising, regulation efforts to control spam ultimately may combine industry selfregulation and government enforcement. As technology allows consumers to “opt in” to receive email targeting their personal interests or consumption patterns, advertisers can more efficiently reach consumers most receptive to receiving some electronic marketing messages if they are confident that the government is monitoring and willing to take action against errant marketers sending masses of unwanted emails. E. Discussion Activity 3 Debrief (PPT Slide 50, Time duration 10-15 minutes) i. Has the federal government’s Do Not Call registry been effective in controlling spam messages? a. Answer: While the registry probably reduces the number of spam calls, far too many slip through the cracks. The robo-calling industry seems to feel that the financial rewards of bothering people outweigh the risk of getting caught. With the advent of Caller ID spoofing, the issue has been taking a dramatic turn for the worse in recent years. Some students likely have experienced Caller ID spoofing where the number being spoofed is of their own, making it look like the call is coming from themselves!

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

F. Knowledge Check (PPT Slide 51, Time duration: 5 minutes i. Which federal agency regulates deceptive advertising? a. CFPA b. FCC c. FTC d. SEC ii. Answer: C. FTC—The Federal Trade Commission (FTC) controls unfair methods of competition, regulates deceptive advertising, and has various programs for controlling the advertising process. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

b. Answer: Advertising audiences are increasingly skeptical of the information they receive, whether it comes from traditional sources such as newspapers and magazines, or newer forms of commentary and news, such as blogs. A key question is whether the information has been influenced in any way, whether by the individual bias of the writer (an automobile reviewer, say, who simply prefers German cars to American automobiles) or by the influence of a third party (he or she has been compensated by BMW to write favorably about their new vehicles). In some instances, disclosing a relationship with a source or subject can be useful. It might come in the form of an editor’s note, for instance, acknowledging that the reviewer’s personal car is German-made. But when the writer acknowledges accepting payment for favorable commentary, marketers may risk audience alienation. The FTC considers this an important enough issue that it now has specified guidelines regarding the disclosure of affiliation for “incentivized” bloggers. 3. You have probably been exposed to hundreds of thousands of advertisements in your lifetime. In what ways does exposure to advertising make you a better or worse consumer? a. Answer: This question should lead to a spirited discussion about the information available from advertising. Showing this passage on an overhead projector could motivate such a discussion: Advertising is clearly an immensely powerful instrument for the elimination of ignorance. To help the class appreciate the information available through advertising, it is important to encourage reflection about the differences in information that can be gleaned from various media. It is also important to point out that by simply helping consumers know what options are available in a product category, even when more information would be called for before purchase, advertising has provided value. In addition, it would be appropriate to discuss advertising’s role in reducing the amount of time consumers must spend in searching for information about products. For example, one could pose a question such as: “Would your efficiency and effectiveness as a shopper be reduced or enhanced if all forms of advertising were eliminated?” Or, on the other side of the argument, “Are people ‘worse’ consumers because they become emotionally taken with ads or become more materialistic because of ads?” 4. Are there product categories (other than cigarettes) that should require some kind of advertising regulation? Do you think they require government regulation, industry self-regulation, or consumer regulation? Explain. a. Answer: This can be a very interesting exercise and discussion. Products aimed at teens would be good choices as teens are always cited as being vulnerable to the images and appeals of advertising. Other product categories that would be good are beer and diet products. This is a good exercise to

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 4: Social, Ethical, and Regulatory Aspects of Advertising and Promotion

have students pair agencies with product categories and to think about the role of consumer watchdog agencies such as MADD. Governments typically are involved in the regulation of advertising and promotion to combat deception and unfairness, deter unfair competition, and protect children. Some of the most important controls on advertising and promotion are voluntary; that is, they are a matter of self-regulation by advertising and marketing professionals (i.e., industry self-regulation). 5. Although public service announcements (PSAs) exist to educate society and are not a form of paid advertising, a recent texting-while-driving warning from England’s South Wales Police Department was so graphic that many television networks banned it. In the spot, three British teenage girls text-and-drive their way into a head-on collision. The gruesome real-life highway carnage staged by professional filmmaker Peter Watkins-Hughes left international viewers shocked and in tears. Discuss the conflict between advertising’s ability to educate and its potential to be offensive. When do edgy ads cross the line, and who decides? a. Answer: The traffic safety PSA from the South Wales Police Department can be found online by searching for “texting while driving PSA.” With motorists at risk from texting while driving, highway safety agencies seek to deliver the urgent message that texting kills. Research conducted on this driver-safety ad showed that the spot was highly persuasive: A full 86 percent of viewers said the PSA was extremely effective, and 80 percent said they would be less likely to text and drive after watching the video. It is no surprise that health and safety organizations use emotional and rational appeals—usually a mix of staggering statistics and scare tactics—to persuade audiences. However, many viewers complained the visual presentation was too disturbing for television, and the ad was banned in many countries. The creatives felt that shock-logic was necessary and justified given the urgency of the message, the challenges of media clutter, and the problem of teenage indifference. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 5: Advertising, Integrated Brand Promotion, and Consumer Behavior

Instructor Manual Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 5: Advertising, Integrated Brand Promotion, and Consumer Behavior

TABLE OF CONTENTS Part 2: Analyzing the Environment for Advertising and Integrated Brand Promotion .. 2 Purpose and Perspective of the Chapter .......................................................................... 2 Cengage Supplements ........................................................................................................ 2 Chapter Objectives ............................................................................................................. 3 Complete List of Chapter Activities and Assessments .................................................... 3 Key Terms ............................................................................................................................ 4 What's New in This Chapter ............................................................................................... 6 Chapter Outline .................................................................................................................. 7 Additional Discussion Questions ..................................................................................... 16

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 5: Advertising, Integrated Brand Promotion, and Consumer Behavior

PART 2: ANALYZING THE ENVIRONMENT FOR ADVERTISING AND INTEGRATED BRAND PROMOTION The book is divided into five parts. It is worth alerting the students to the focus of the chapters within the part. Part 2 sets the tone for the successful advertising and brand communication. The chapters in this part emphasize that successful advertising and integrated brand promotion rely on a clear understanding of how and why consumers make purchase decisions. Successful advertising and brand communication are rooted in sound marketing strategies and research about a brand’s market environment. This understanding of consumers and the market, strategy, and research are brought together in an advertising and IBP plan.

PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to consider the two complementary perspectives of consumer behavior as it relates to advertising and IBP. Consumer behavior is defined as all things related to how humans operate as consumers—from need recognition and acquisition to use and disposal of a good, an idea, or a service. It is far better for advertisers to understand consumer behavior than not. Due to simply being the first, the biggest, or the luckiest, some companies do well with only a thin understanding of how and why their customers choose their brands. This chapter summarizes the concepts and frameworks most helpful in trying to understand consumer behavior as it relates to advertising and integrated brand promotion. Consumer behavior stems from two different perspectives, one psychological and one sociocultural.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 5: Advertising, Integrated Brand Promotion, and Consumer Behavior

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Guide to Teaching Online (provides information about the key assets within the product and how to implement/facilitate use of the assets in synchronous and asynchronous teaching environments)

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 5-1

Describe consumer behavior from a decision-making perspective and the four stages of the consumer decision-making process along with the roles of involvement, experience, memory, and emotion.

5-2

Discuss consumer behavior from a social and cultural perspective and the role of social class, taste, and cultural capital that influence consumer behavior.

5-3

Explain how meaning is derived from advertising and how effective advertising uses sociocultural meaning.

Activity/Assessment Icebreaker Discussion Activity Discussion Activity Debrief Polling Activity Knowledge Check

Source (i.e., PPT slide, Workbook) PPT Slide 3 PPT Slide 24 PPT Slide 25 PPT Slide 35 PPT slide 38

Duration

10-15 minutes 10 minutes 10-15 minutes 5 minutes

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Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 5: Advertising, Integrated Brand Promotion, and Consumer Behavior

KEY TERMS Accessibility How easy (quick) it is to remember something. Accessibility Bonus A psychological phenomenon in which easily remembered brands are also believed to be more prevalent (common), more popular, and better. Advertising Clutter An obstacle to advertising resulting from the large volume of similar ads for most products and services. Attitude An overall evaluation of any object, person, or issue that varies along a continuum, such as favorable to unfavorable or positive to negative. Brand Ambassadors A consumer who actively recommends a brand to others. Brand Communities Groups of consumers who feel a commonality and a shared purpose related to a consumer good or service. Cognitive Dissonance The anxiety or regret that lingers after a difficult purchase decision. Community A group of people loosely connected by some common characteristic or interest; a community may share a sense of kinship and exert influence. Consideration Set The subset of brands from a particular product category that becomes the focal point of a consumer’s evaluation. Consumer Behavior Those activities directly involved in obtaining, consuming, and disposing of products and services, including the decision processes that precede and follow these actions. Consumer Package Goods (CPG) Low-involvement consumer products, typically lowpriced items such as paper towels, batteries, toothpaste, laundry products, and frozen or canned food. Consumer–Brand Relationship The affiliation between consumer and brand, meaning the consumer’s emotional attachment to a brand or category. Conversion A process where consumers go on from trying a brand to buying it a second time. Culture What people do—the ways they eat, groom themselves, celebrate, mark their space and social position, and so forth.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 5: Advertising, Integrated Brand Promotion, and Consumer Behavior

Customer Satisfaction Good feelings that come from a favorable post-purchase experience. Evaluative Criteria The product attributes or performance characteristics on which consumers base their product evaluations. Evoked Set The set of brands that comes to mind when a category is mentioned. Extended Problem Solving A decision-making mode in which consumers are inexperienced in a particular consumption setting but find the setting highly involving. External Search A search for product information that involves visiting retail stores to examine alternatives, seeking input from friends and relatives about their experiences with the products in question, or perusing professional product evaluations. Habit A decision-making mode in which consumers buy a single brand repeatedly as a solution to a simple consumption problem. Identity Who one perceives themselves to be. Internal Search A search for product information that draws on personal experience and prior knowledge. Involvement The degree of perceived relevance and personal importance accompanying the choice of a certain product or service within a particular context. Life-Stage A circumstantial variable, such as when a family’s youngest child moves away from home, which changes the consumption patterns of the family. Limited Problem Solving A decision-making mode in which consumers’ experience and involvement are both low. Materialism When people place particular emphasis on money and material goods. Meaning What an advertisement intends or conveys. Mindshare Brands Brands that are promoted and purchased largely through memory of the brand name and sometimes one simple quality or attribute. Need State A psychological state arising when one’s desired state of affairs differs from one’s actual state of affairs. Opinion Leaders People who influence the opinions and behaviors of consumers.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 5: Advertising, Integrated Brand Promotion, and Consumer Behavior

Predecisional Distortion A psychological bias in favor of a brand that unconsciously weights incoming information in the direction of the favored brand. It is thought to be due to an emotional response to the brand. Rituals Repeated behaviors that affirm, express, and maintain cultural values. Self-Transformative Something or an experience that is used by the consumer to help create or transform their sense of self. Stratification A person’s relative standing in a social system as produced by systematic inequalities in things such as wealth, income, education, power, and status. Also referred to as social class. Taste A generalized set or orientation to consumer preferences. Top-Of-Mind A measure used by advertisers which is the first brand one can remember when asked to name the brands in a category. Variety Seeking A decision-making mode in which consumers switch their selection among various brands in a given category in a random pattern, often because they enjoy new experiences. [return to top]

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition: •

New key term o Self-transformative o Top of mind

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Updated examples of cultural branding

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Updated examples of social class and taste and consumer behavior

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New support articles from: o Journal of Consumer Research o Journal of Advertising o Journal of Marketing o Journal of Advertising Research

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 5: Advertising, Integrated Brand Promotion, and Consumer Behavior

o o o o

International Journal of Advertising JCIRA Journal of Marketing Research Journal of Consumer Research

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CHAPTER OUTLINE The following outline organizes activities (including any existing discussion questions in PowerPoints or other supplements) and assessments by chapter (and therefore by topic), so that you can see how all the content relates to the topics covered in the text. I. Consumer Behavior Perspective One: The Consumer as Decision Maker (LO 1, PPT Slides 6-25) i. One way to view consumer behavior is as a fairly predictable sequential process culminating with the individual’s gaining a set of benefits from a product or service that satisfies that person’s perceived needs. ii. In this basic view, individuals can be thought of as purposeful decision makers who weigh and balance alternatives, or resort, typically in times of complexity and too much information, to simple decision rules of thumb (heuristics) to make decisions. A. The Consumer Decision-Making Process i. Need Recognition a. The consumption process begins when people perceive a need. A need state arises when one’s desired state of affairs differs from one’s actual state of affairs. One way advertising works is to point to and thereby activate needs that will motivate consumers to buy a product or service. ii. Information Search and Alternative Evaluation a. Need recognition simply sets in motion a process that may involve extensive information search and careful evaluation of alternatives prior to purchase. b. During this search and evaluation, there are numerous opportunities for the advertiser to influence the final purchase decision. c. Information for the purchase decision is acquired through an internal or external search. 1. The consumer’s first option for information is to draw on personal experience, prior knowledge, and prior exposure to advertising and this is known as internal search. The internal search results in the recall of a set of brands (an evoked set).

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 5: Advertising, Integrated Brand Promotion, and Consumer Behavior

This is closely related to the consideration set—a set of brands the consumer will consider for purchase. 2. It is possible that internal search will not turn up enough information to yield a decision. The customer then proceeds with an external search which involves visiting retail stores or looking online to examine the alternatives, seeking input from friends and relatives about their experiences with the products in question, or perusing professional product evaluations furnished in various publications like Consumer Reports. 3. When consumers are in an active information-gathering mode, they also may be receptive to detailed, informative advertisements delivered through any of the print media, or they may deploy a shopping agent or a search engine to scour the Internet for the best deal or for opinions of other users. d. As the search-and-evaluation process proceeds, consumers form evaluations based on the characteristics or attributes of the brands in their consideration set have in common. These product attributes or performance characteristics are referred to as evaluative criteria. Evaluative criteria differ from one product category to the next and can include many factors, such as price, texture, warranty terms, color, scent, or carb content. iii. Purchase a. It would be a big mistake to view purchases as the culmination of the decision-making process. What happens after the sale is very important to advertisers. Advertisers want trial; they then want conversion (repeat purchase). They want brand loyalty. Some want to create brand ambassadors, users who will become apostles for the brand, spreading its gospel. iv. Postpurchase Use and Evaluation a. The goal for marketers and advertisers must not be simply to generate a sale; it must be to create satisfied and perhaps even loyal customers. b. Advertising can play an important role in inducing customer satisfaction by creating appropriate expectations for a brand’s performance, or by helping the consumer who has already bought the advertised brand to feel good about doing so. c. Cognitive dissonance is the anxiety or regret that lingers after a difficult decision. When dissonance is expected, it makes good sense for the advertiser to reassure buyers with detailed information about its brands. B. Four Modes of Consumer Decision Making i. Consumers aren’t always deliberate and systematic as a decisionmaking sequence like the one above would suggest.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 5: Advertising, Integrated Brand Promotion, and Consumer Behavior

ii.

The search time that people put into their purchases can vary dramatically for different types of products. iii. The text elaborates on four decision-making modes that help advertisers appreciate the richness and complexity of consumer behavior. These four modes are determined by a consumer’s involvement and prior experiences with the product or service in question. iv. Sources of Involvement a. Involvement is the degree of perceived relevance and personal importance accompanying the choice of a certain product or service within a particular context: How much it matters to the consumer. b. Many factors contribute to the level of involvement in a consumption decision. Interests and avocations, like cooking, photography, pet ownership, or exercise and fitness, can enhance involvement levels. c. When risk is associated with a purchase—perhaps as a result of the high price of the item, or because the consumer will have to live with the decision for a long time—elevated involvement is likely. d. Consumers can also derive important symbolic meaning from products and brands. Higher involvement may be a function of a consumer– brand relationship. Relationship means that the consumer has come to have some sort of emotional attachment to the brand, or even the category. Involvement levels vary among product categories for an individual and also among the individuals for any given product category. v. Extended Problem Solving a. When consumers are inexperienced in a particular consumption setting, yet find the setting highly involving, they are likely to engage in extended problem solving. b. Consumers go through a deliberate decision-making process that begins with explicit need recognition, proceeds with careful internal and external search, continues through alternative evaluation and purchase, and ends with a lengthy post-purchase evaluation. vi. Limited Problem Solving a. Experience and involvement are both low in limited problem solving. This is a common mode of decision making. In this, a consumer will be less systematic in his or her decision making. b. The consumer has a new problem to solve, but it is not a problem that is interesting or engaging, so the information search is limited to simply trying the first brand encountered. vii. Habit or Variety Seeking a. Habit refers to buying a single brand repeatedly as a solution to a simple consumption problem. This occurs where a decision is not involving and a consumer repurchases from the category over and over again.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 5: Advertising, Integrated Brand Promotion, and Consumer Behavior

b. Variety seeking refers to the tendency of consumers to switch their selection among various brands in a given category in a seemingly random pattern. This is not to say that a consumer will buy just any brand; he or she probably has two to five brands that provide similar levels of satisfaction to a particular consumption problem. However, from one purchase occasion to the next, the individual will switch brands from within this set, for the sake of variety. viii. Brand Loyalty a. This mode is typified by high involvement and rich prior experience. Consumers demonstrate brand loyalty when they repeatedly purchase a single brand to fulfill a specific need and have some degree of emotional connection to the brand. b. It is important to distinguish brand loyalty from simple habit. Brand loyalty is based on emotional connection toward the brand and a conscious commitment to find this brand each time the consumer purchases from this category. c. Conversely, habits are merely consumption simplifiers that are not based on the power of an emotional relationship with the brand. C. Advertising, Consumer Behavior, and Memory i. Semantic/Word Memory a. Semantic memory is the kind of memory through which names, words, and concepts are stored and retrieved from our minds. It is the type of memory that drives a great deal of low involvement or mindshare brands. It is a relatively well-understood form of human memory and is very easily used by advertisers. The more easily you can retrieve something from semantic memory, the more accessible it is. b. Greater accessibility is a good thing for advertised brand names. The more easily (or more quickly) one retrieves something from memory, the more frequent or popular one believes it to be. This is called the accessibility bonus. ii. Episodic Memory a. Episodic memory is just like it sounds: memories of episodes. It is your memory of events, what you did last night, your friend’s party, and so on. It could also be a consumption experience like driving a certain car or eating a brand of ice cream. It could also be an ad, most likely a television ad. Episodic memory is not as well understood as semantic memory. iii. Emotion a. Emotion is incredibly important in consumer behavior. b. Researchers have shown that if a brand is associated with a positive emotion or feeling, the subsequent information about the brand is actually distorted in favor of the emotion-linked brand and against others.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 5: Advertising, Integrated Brand Promotion, and Consumer Behavior

c. It then affects subsequent consumer decisions in favor of the emotionlinked brand. This power clearly favors the use of emotional branding techniques, brand relationship building, including advertising. iv. Information Overload and Simplification a. Consumers appear to have a strong desire to have as much information as possible; they have always been told that good consumer decisions are based on having the most information. But it turns out to those who study consumer decision making that there is such a thing as information overload. b. Consumers simply get too much information and confront too many choices to be able to comprehensively and effectively apply all the information to the choice task. What they do then is to use a decision heuristic, or way of simplifying the task. c. Common ones include buying the most popular brand, the least expensive, the most expensive, the one you have heard the most about, or the one you bought last. v. Clutter and Attention a. Advertising clutter derives from the context in which ads are processed. Even if a person wanted to, it would be impossible to process and integrate every advertising message that he or she is exposed to each day. b. The clutter problem is further magnified by competitive brands making very similar performance claims. c. Advertisers employ a variety of tactics to break through the clutter. Popular music, celebrity spokespersons, sexy models, rapid scene changes, and anything that is novel are devices for combating selective attention. d. The battle for consumers’ attention poses another dilemma for advertisers. Without attention, there is no chance that an advertiser’s message will have its desired impact; however, the provocative, attention-attracting devices used to engage consumers often become the focal point of consumers’ ad processing. D. Discussion Activity (PPT Slide 24, Time duration 10-15 minutes) i. A key issue in post-purchase evaluation is cognitive dissonance—the anxiety or “buyer’s remorse” that can linger after high involvement purchasing decisions. Research has shown that some consumers are more likely to read ads for a product they already have purchased than ads for competing brands. With this in mind, imagine that you have been hired by the luxury watchmaker Breitling to design an ad campaign specifically intended to ease potential cognitive dissonance. a. What steps could the company make to reach out to consumers after the purchase? 1. Answer: Answers will vary. The work of marketers and advertisers does not stop once a sale is made. That is particularly true for

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 5: Advertising, Integrated Brand Promotion, and Consumer Behavior

high involvement, high-cost products and services, where consumers are likely to be more susceptible to the problem of cognitive dissonance. An unsatisfactory post-purchase evaluation can lead consumers to return the item in the short term or fail to make repeat purchases when it is time to replace that automobile, expensive watch, or high-tech mobile phone. Students should demonstrate an understanding of this important concept as they develop ideas for the luxury watch manufacturer. Ideas might include email or traditional mail outreach, using contact information gathered for warranty purchases. E. Discussion Activity Debrief (PPT Slide 25, Time duration 10 minutes) i. What advertising messages and imagery could be most effective in reinforcing the consumer’s decision to purchase the watch? Answers will vary. The watchmaker might emphasize the notion of the watch’s status, longevity, or resilience–or very possibly all threeII. Consumer Behavior Perspective Two: The Consumer as Social Being (LO 2, PPT Slides 26-35) i. Consumers are more than information processors, and ads are more than socially isolated attempts at attitude manipulation. ii. In this approach, meaning is the focus, and consumer behavior is meaningfully social. The social meaning-based approach centers on knowing how to connect with human beings around their lives and consumption practices with advertising and other brand promotion. A. Consuming in the Real World i. Culture a. Culture is what a people do, or “the total life ways of a people, the social legacy the individual acquires from his or her group.” It is the way we eat, groom ourselves, celebrate, and mark our space and position. b. Cultures may be large and national, or they may be regional or local, or not geographic at all: urban hipster culture, teen tech-nerd, etc. c. Culture surrounds the creation, transmission, reception, and interpretation of ads and brands, just as it touches every aspect of consumption. d. Rituals are “often-repeated formalized behaviors involving symbols.” Cultures participate in rituals; consumers participate in rituals. Cultures affirm, express, and maintain themselves through rituals. If an advertiser can successfully incorporate the consumption of brand into an existing ritual, success is much more likely. Rituals don’t have to be the biggest events of the year. ii. Stratification a. Stratification provides a broad context and refers to systematic inequalities in things such as wealth, income, education, power, and status. Social class and stratification was supposed to be reflected in a consumer’s taste and thus their consumption.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 5: Advertising, Integrated Brand Promotion, and Consumer Behavior

iii.

iv.

b. The traditional view was that advertisers cared about social class and stratification because consumers used their choices to reflect their class. But this assumption has been challenged lately. c. Some believe that traditional social class–consumption taste hierarchies have collapsed, or at least become much less stable. Another factor is that the current period is a time of great and increasing income inequality. Taste a. Taste refers to a generalized set or orientation to consumer aesthetic preferences. b. Social class impacts consumption through tastes and media habits. Marketers of social class include what one wears, where one lives, and how one talks. c. Cultural capital is the value that cultures place on certain consumption practices and objects, such as ordering wine with dinner, flying first class, having an original piece of artwork hanging on your walls. This is cultural capital for some consumers. Family a. Although some kinds of purchases are handled by one family member, many decisions are actually diffused nondecisions, arrived at through what consumer researcher C. W. Park aptly calls a “muddling-through” process. These “decisions” just get made, and no one is really sure who made them, or even when. b. Advertisers capitalize on the flexibility of this social system by suggesting in their ads who should take charge of a given consumption task, and then arming that person with the appearance of expertise so that whoever wants the job can take it and defend his or her purchases. c. Advertisers focus on the major gross differences in families as this impacts consumption. Family roles change when both parents are employed or when children leave home to go to college. In addition, today the concept of family is very open: there are many single parent households, second marriages, and gay and lesbian households. d. Advertisers are often interested in things like the age of the youngest child, the size of the family, and the family income. For example, the age of the youngest child living at home tells an advertiser where the family is in terms of needs and obligations (that is, toys, investment instruments for college savings, clothing, and vacations). This is called a life-stage variable and is used frequently in advertising and promotion planning. Race and Ethnicity a. The question of how race figures into consumer behavior is difficult. We experience discomfort from the desire to say, “Race doesn’t

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 5: Advertising, Integrated Brand Promotion, and Consumer Behavior

matter, we’re all the same,” and on the other hand, not wanting (or not being able) to deny the significance of race in reaching ethnic subcultures with advertising that has ethnic significance and relevance. b. Still, race is something that does inform one’s social identity to varying degrees. One is not blind to one’s own ethnicity. AfricanAmericans, Latinos, and other ethnic groups have culturally related consumption preferences that can be communicated about in advertising. vi. Politics a. This broad influence plays itself out in factors such as increased globalization of brands and greater world-wide acceptance of consumer culture. In addition, global movements, like country labor practices and politics, can create preferences for “green brands.” vii. Gender a. There is, however, no definitive list of gender differences in consumption, because the expression of gender, just like anything else social, depends on the situation and the social circumstances. In the 1920s, advertisers openly referred to women as less logical, more emotional, and the cultural stewards of beauty—all untouchable in advertising in today’s context. b. Marketers must be aware of gender and be careful not to use gender to patronize, insult, or ignore. One market where this holds true is LGBTQ+ consumers. c. Understanding the nuances of different cultures is a business imperative. viii. Community a. Community is a powerful and traditional sociological concept. The idea of community extends well beyond the idea of a geographic place. Advertisers are becoming increasingly aware of its power. It is important in at least two major ways. 1. Products have social meanings, and community is the quintessential social domain, so consumption is inseparable from the notion of where we live. Communities may be the fundamental reference group. 2. Brand communities are groups of consumers who feel a commonality and a shared purpose grounded or attached to a consumer good or service. B. Cultural Branding and Advertising i. Cultural branding is a type of branding that leverages sociocultural forces to create and maintain great brands. It is often dependent on advertising.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 5: Advertising, Integrated Brand Promotion, and Consumer Behavior

ii.

The basic idea is to find some rift or stress in the seams of society and culture and then use this to offer a solution in the form of a branded good. iii. Rebellion and Advertising a. Scholars have noted that consumers sometimes use their consumption choices to stake out a position in a “revolution” of sorts. b. It must be remembered that anytime there is a significant social movement, a time of rapid change, opportunities galore are opened to the advertiser. c. When the earth moves under our feet, we feel off balance and in need of reassurance, and advertised products often promise that reassurance. iv. Authenticity and Opinion Leaders a. Among the attributes advertising can give to a brand, authenticity (in the eyes of others) is one of the very most powerful. b. If an advertiser can convince consumers that their brand is the “real,” the authentic choice of those in the know, the original, then it is often seen as the best. This is a simple but very powerful brand statement. Sometimes companies just claim to be real so long that it eventually becomes true sometimes. c. Opinion leaders influence the opinions and behaviors of consumers. C. Polling Activity (PPT Slide 35, Time duration 10-15 minutes) i. In today’s modern, highly educated society, there is simply no reason to separate various genders into different target segments. Gender just should not be an issue in the development of marketing and advertising strategies. i. Agree ii. Disagree iii. Not sure ii. Answer: Opinions will vary. Although our society has witnessed major changes in the norms and equity, many marketers and advertisers still feature gender in their segmentation strategies (e.g., Gillette takes distinctive approaches in marketing its razors to men versus women.) Different genders obviously have different needs when it comes to some products and services. However, an interesting direction might be to ask the class for suggestions about products in which marketers are missing the boat in their gender-oriented strategies. Are some brands missing an opportunity by focusing too strongly on males or females when all genders represent possible markets? Could some brands benefit by abandoning their genderspecific strategies to pursue a more gender-neutral approach? III. How Ads Transmit Meaning (LO 2, PPT Slides 36-38)

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 5: Advertising, Integrated Brand Promotion, and Consumer Behavior

Advertising can be thought of as “text” which is read and interpreted by consumers. ii. Ads can turn already meaningful things into things with very special meaning—brands can become “cool” or develop high cultural capital through advertising. Ads turn products into brands. iii. Meaning to consumers is transmitted from ads only because there is an intelligible social context for the ad. iv. Ads have become part of consumers’ everyday language and conversation. v. Ads in many ways are the sociocultural text of our time. vi. Ads also become part of consumers’ everyday language by picking up phrases, slogans, ideas, and agendas from ads. A. Knowledge Check (PPT Slide 38, Time duration: 5 minutes) i. The anxiety or regret that lingers after a difficult decision is called: A. Alternative evaluation B. Cognitive dissonance C. Conversion D. Predecisional distortion ii. Answer: B. Cognitive dissonance—cognitive dissonance is the anxiety or regret that lingers after a difficult decision, sometimes called “buyer’s remorse.” Often, rejected alternatives have attractive features that lead people to second-guess their own decisions. If the goal is to generate satisfied customers, this dissonance must be resolved in a way that leads consumers to conclude that they did make the right decision after all. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 5: Advertising, Integrated Brand Promotion, and Consumer Behavior

and balance alternatives or resort to simple decision rules of thumb (heuristics) to make decisions if the decision is complex and they are overwhelmed with information. A second perspective on consumer behavior, branding, and advertising, a perspective based on social and cultural factors. Consumers are more than information processors, and ads are more than socially isolated attempts at attitude manipulation with this approach, meaning is the focus, and consumer behavior is meaningfully social. The social meaning-based approach centers on knowing how to connect with human beings around their lives and consumption practices with advertising and other brand promotion tactics. Answers will vary when students consider their own consumer behavior and what leads them to their decisions, but discussion should include the different consumer behavior perspectives. 2. Is cognitive dissonance a good thing or a bad thing from an advertiser’s point of view? Explain how and why advertisers should try to take advantage of the cognitive dissonance their consumers may be experiencing. a. Answer: Cognitive dissonance is the anxiety or regret that lingers after a difficult decision. Advertisers might view cognitive dissonance as a good thing. As the consumer is experiencing dissonance, that individual is likely to be more receptive to information from the advertiser. Dissonance reduction is a relevant goal when customer satisfaction is given high priority by the marketer. Providing detailed information and advice about proper use of the product can be very important after purchase as a way of reducing dissonance and simultaneously enhancing the customer’s satisfaction with his or her purchase. 3. Explain the difference between brand-loyalty and habitual purchasing. When a brand-loyal customer arrives at a store and finds his or her favorite brand is out of stock, what would you expect to happen next? a. Answer: Habitual purchasing involves buying a single brand repeatedly as a solution to a mundane consumption problem. The motive is just to keep things simple. With brand loyalty, we also see repeat purchasing of a single brand, but in this case the sequence of purchases is based on highly favorable brand attitudes and a conscious commitment to the brand. For the brand-loyal customer a stock-out means that he or she will not buy from the category on the purchase occasion when the stock-out was experienced. For the habitual purchaser, a stock-out simply provides an incentive to try another brand. 4. Consider the following quote: “In today’s modern, highly educated society, there is simply no reason to separate men and women into different target segments. Gender just should not be an issue in the development of marketing and advertising strategies.” Do you agree or disagree with this comment? Explain. a. Answer: Although our society has witnessed major changes in sex-role norms and gender equity, many marketers and advertisers still feature gender in their segmentation strategies (e.g., Gillette takes distinctive approaches in marketing

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 5: Advertising, Integrated Brand Promotion, and Consumer Behavior

its razors to men versus women). Men and women obviously have different needs when it comes to some products and services. However, an interesting direction might be to ask the class for suggestions about products in which marketers are missing the boat in their gender-oriented strategies. Are some brands missing an opportunity by focusing too strongly on males or females when both sexes represent possible markets? Could some brands benefit by abandoning their gender-specific strategies to pursue a more unisex approach? 5. Who is responsible for determining the cultural code or meaning in advertising? Is it the consumer or the advertiser? How does advertising work as a mechanism of cultural meaning transfer? Explain. a. Answer: Ads try to turn already meaningful things into things with a very special meaning, a crafted connotation with the purpose of selling. Consumers are free to accept, reject, or adjust that meaning to suit their taste. Likewise, consumers determine what is or is not cool, what has cultural value (capital) to them, and how much. But advertisers are a big part of that conversation. To understand advertising as a mechanism of cultural meaning transfer is to understand a great deal about advertising. In fact, one could legitimately say that advertisers are really in the meaning-transfer business. You take meaning that exists in the culture and massage it, shape it, and try to transfer it onto your brand. When a consumer purchases or otherwise incorporates that good or service into their own life, the meaning is then transferred to the individual consumer. Meaning is thus moved from the world to the product (via advertising) to the individual. When the individual uses the product, that person conveys to others the meaning they and the advertisement have now given it. Ads also become part of consumers’ everyday landscape, language, and reality. Characters, lines, and references all become part of conversations, thoughts, and—coming full circle— the culture. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 6: Market Segmentation, Positioning and the Value Proposition

Instructor Manual

Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 6: Market Segmentation, Positioning and the Value Proposition

TABLE OF CONTENTS Purpose and Perspective of the Chapter .......................................................................... 2 Cengage Supplements ........................................................................................................ 2 Chapter Objectives ............................................................................................................. 3 Complete List of Chapter Activities and Assessments .................................................... 3 Key Terms ........................................................................................................................... 4 What's New in This Chapter............................................................................................... 5 Chapter Outline ................................................................................................................... 6 Additional Discussion Questions ..................................................................................... 14

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 6: Market Segmentation, Positioning and the Value Proposition

PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to consider another set of elements to be analyzed within the environment: the interconnected processes of segmentation, targeting, positioning, and the value proposition. Understanding these processes is essential for effective integrated brand promotion. The term STP marketing refers to the process of segmenting, targeting, and positioning. Marketers pursue this set of activities in formulating marketing strategies for their brands. STP marketing also provides a strong foundation for the development of advertising campaigns. In market segmentation, the goal is to break down a heterogeneous market into more manageable subgroups or segments. Many different bases can be used for this purpose. Markets can be segmented based on usage patterns and commitment levels, demographics, geography, psychographics, lifestyles, benefits sought, NAICS business categories, or stages in the purchase process. In pursuing STP marketing, an organization must get beyond the stage of segment identification and settle on one or more segments as a target for its marketing and advertising efforts. The “P” in STP marketing refers to the positioning strategy that must be developed as a guide for all marketing and advertising activities that will be undertaken in pursuit of the target segment. Effective positioning strategies should be linked to the substantive benefits offered by the brand. Many complex considerations underlie marketing and advertising strategies, so the value proposition is a useful way of summarizing the essence of the brand’s strategy. A value proposition is a statement of the various benefits (functional, emotional, and self-expressive) offered by a brand that create value for the customer. These benefits as a set justify the price of the product or service. Clarity in expression of the value proposition is critical for development of advertising that sells.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 6: Market Segmentation, Positioning and the Value Proposition

•

Guide to Teaching Online (provides information about the key assets within the product and how to implement/facilitate use of the assets in synchronous and asynchronous teaching environments)

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 6-1

Explain the process known as STP marketing.

6-2

Describe different bases that marketers use to identify segments.

6-3

Identify the criteria used to target a segment.

6-4

Identify the essential elements of an effective positioning strategy.

6-5

Define the necessary ingredients for creating a brand’s value proposition.

Activity/Assessment Icebreaker Discussion Activity 1 Discussion Activity 1 Debrief Discussion Activity 2 Discussion Activity 2 Debrief Discussion Activity 3 Discussion Activity 3 Debrief Knowledge Check

Source (i.e., PPT slide, Workbook) PPT Slide 6 PPT Slide 20 PPT Slide 21 PPT Slide 25 PPT Slide 26 PPT Slide 32 PPT Slide 33 PPT Slide 37

Duration 10 minutes 5-10 minutes 5 minutes 5-10 minutes 10 minutes 10-15 minutes 10 minutes 5 minutes

[return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 6: Market Segmentation, Positioning and the Value Proposition

KEY TERMS Benefit Segmentation A type of market segmenting in which target segments are delineated by the various benefit packages that different consumers want from the same product category. Brand Platform A core idea that frames an ambition or aspiration for the brand that will be relevant to target audiences over time. Brand Promise A statement of the key value of the brand. The promise a brand makes to the consumer that may be implied via advertising Business Markets The institutional buyers who purchase items to be used in other products and services or to be resold to other businesses or households. Competitive Field The companies that compete for a segment’s business. Consumer Markets The markets for products and services purchased by individuals or households to satisfy their specific needs. Demographic Segmentation Market segmenting based on basic descriptors like age, gender, race, marital status, income, education, and occupation. Emergent Consumers A market segment made up of the gradual but constant influx of first-time buyers. Geodemographic Segmentation A form of market segmentation that identifies neighborhoods around the country that share common demographic characteristics. Heavy Users, Committed Users, Lead Users Consumers who purchase a product or service much more frequently than others. Also known as committed users or lead users. Lifestyle Segmentation A form of market segmenting that focuses on consumers’ activities, interests, and opinions. Niche Marketing The practice of narrowly targeting a relatively small segment of a market in which the consumers are typically willing to pay a premium price for the brand. Point-Of-Entry Marketing Advertising strategies designed to win the loyalty of consumers whose brand preferences are still under development, in hopes of gaining their loyalty.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 6: Market Segmentation, Positioning and the Value Proposition

Position A brand’s meaning relative to its competitors. Positioning Strategy The key themes or concepts an organization features for communicating the distinctiveness of its product or service to the target segment. Psychographics A form of market research that emphasizes the understanding of consumers’ activities, interests, and opinions. Segment A portion of the market. Stigmatized When someone’s personal attribute is a source of devaluation in the marketplace or by other people. STP Marketing For segmenting, targeting, positioning. A marketing strategy employed when advertisers focus their efforts on one subgroup of a product’s total market. Switchers A market segment made up of consumers who often buy what is on sale or choose brands that offer discount coupons or other price incentives. Target To focus advertising and promotion effort upon a given segment or segments. Value Proposition A statement of the functional, emotional, and self-expressive benefits delivered by the brand, which provide value to customers in the target segment. Variety Seekers Consumers who enjoy new experiences and switch brands or products for that reason, not necessarily for lower prices or another incentive. [return to top]

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition: •

New key term o Stigmatized o Variety seekers

•

Updated examples of segmentation and targeting

•

Updated examples of value and branding

•

Example via Apple on consumer privacy as a value source

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 6: Market Segmentation, Positioning and the Value Proposition

•

II.

STP Marketing and Advertising (LO 1, PPT Slides 5-6) i. Very few marketers advertise to everyone. It is way too expensive and wasteful. a. So, advertisers usually have to segment their market—that is, cut it into pieces and focus on the piece or pieces (segments) that make the most sense. b. They then have to target (focus advertising and IBC for delivery upon) that segment or segments with advertising and integrated brand promotion. c. Then they have to position their brand for that segment(s). d. Positioning means to attempt to give a brand a certain meaning relative to its competitors. e. Doing the three together is called the STP marketing approach. Markets are segmented; segments of markets (groups of potential customers) are targeted, and brands are positioned. Segmenting Markets (LO 2, PPT Slides 7-21) i. The first step in STP marketing involves market segmentation— breaking down large, broader markets into more manageable submarkets or customer segments. ii. Advertisers need to identify a segment with common characteristics that will lead the members of that segment to respond distinctively to a marketing program.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 6: Market Segmentation, Positioning and the Value Proposition

iii.

This section reviews several ways that consumer markets are commonly segmented. A. Usage and Commitment Level i. It is important to recognize that for most products and services, some users will purchase much more, and more frequently, than others. ii. These consumers are called heavy users, committed users, or lead users. a. It is common to find that heavy users in a category account for the majority of a product’s sales and become the preferred or primary target segment. A heavy-user focus, however, takes attention and resources away from those who need encouragement to purchase the market’s brand. Perhaps most important, heavy users may differ significantly from average or infrequent users in terms of their motivations to consume, their approach to the brand or their image of the brand. They may be brand-freaks, consumers who are so committed to the brand that their consumer behavior toward it borders on the pathological. B. Switchers and Variety Seekers i. These consumers often buy what is on sale or choose brands that offer discount coupons or other price incentives. ii. Whether they are pursued through price incentives, high-profile advertising campaigns, or both, switchers turn out to be a costly target segment. iii. Much can be spent in getting their business merely to have it disappear just as quickly as it was won. C. Emergent Consumers i. Emergent consumers offer the organization an important business opportunity. ii. In most product categories there is a gradual but constant influx of first-time buyers. a. The reasons for this influx vary by product category and include purchase triggers such as puberty, college graduation, marriage, a new baby, divorce, a new job, a big raise, or retirement. b. Immigration can also be a source of numerous new customers in many product categories. c. Emergent consumers are motivated by many different factors, but they share one notable characteristic: Their brand preferences are still under development. d. Developing advertising campaigns to win with first-time users is often referred to as point-of-entry marketing. D. Demographics i. Demographic segmentation is used in selecting target segments and includes basic descriptors like age, gender, race, marital status, income, education, and occupation.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 6: Market Segmentation, Positioning and the Value Proposition

a. Demographic information has special value in market segmentation because if an advertiser knows the demographic characteristics of the target segment, choosing media to efficiently reach that segment is much easier. b. Demographic information has two specific applications: 1. Demographics are commonly used to describe or profile segments that have been identified with some other variable. If an organization had first segmented its market in terms of product usage rates, the next step would be to describe or profile its heavy users in terms of demographic characteristics like age or income. 2. Demographic categories are frequently used as the starting point in market segmentation. E. Geographic Location i. Geographic segmentation may be conducted within a country by region (for example, Pacific Northwest versus New England), by state or province, by city, or even by neighborhood. ii. Climate and topographical features yield dramatic differences in consumption by region for products like snow tires and surfboards, but geography can also correlate with other differences that are not so obvious. iii. Eating and food preparation habits, entertainment preferences, recreational activities, and other aspects of lifestyle have been shown to vary along geographic lines. iv. Marketers have merged information on where people live with the U.S. Census Bureau’s demographic data to produce a form of market segmentation known as geodemographic segmentation that identifies neighborhoods (by zip codes) around the country that share common demographic characteristics. One such system, known as PRIZM (Potential Rating Index by Zip Marketing), identifies 62 market segments that encompass all the zip codes in the United States. F. Psychographics and Lifestyle i. Psychographics is a term that refers to a form of research that emphasizes the understanding of consumers’ activities, interests, and opinions (AIOs). a. Psychographics were created as a tool to supplement the use of demographic data. b. Because focus on consumers’ activities, interests, and opinions often produces insights into differences in the lifestyles of various segments, this approach usually results in lifestyle segmentation. c. Knowing details about the lifestyle of a target segment can be valuable for creating advertising messages that ring true to the consumer. G. Benefit Segmentation

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 6: Market Segmentation, Positioning and the Value Proposition

In benefit segmentation, target segments are delineated by the various benefit packages that different consumers want from competing products and brands. H. Segmenting Business-to-Business Markets i. The discussion of segmentation has focused on ways to segment consumer markets—the markets for products and services purchased by individuals or households to satisfy their specific needs. ii. Consumer marketing is often compared and contrasted with businessto-business marketing. iii. Business markets are the institutional buyers who purchase items to be used in other products and services or to be resold to other businesses or households. Business markets can be segmented using several of the options already discussed. I. Discussion Activity 1 (PPT Slide 20, Time duration 5-10 minutes) i. In most product categories, there is a gradual but constant influx of first-time buyers. a. How would you explain the appeal of emergent consumers as a target segment? b. Answer: Emergent consumers are first-time buyers with no brand loyalty. Emergent-consumer segments are appealing because of their long-term potential. Marketers who target such segments may be able to cultivate lifetime relationships that can lead to substantial revenue streams. J. Discussion Activity 1 Debrief (PPT Slide 21, Time duration: 5 minutes) i. Can you identify a current ad campaign targeting an emergentconsumer segment? a. Answers will vary. One example might be a college newspaper containing ads for credit-card companies working the campus to solicit new cardholders: this is emergent-consumer targeting. III. Prioritizing Segments (LO 3, PPT Slides 22-26) i. Segmenting markets typically yields a mix of segments that vary in their attractiveness to the advertiser. ii. In pursuing STP marketing, the advertiser must get beyond this potentially confusing mixture of segments to a selected subset that will become the primary target for its marketing and advertising programs. iii. Perhaps the most fundamental criterion in segment selection revolves around what the members of the segment want versus the organization’s ability to provide it. a. Every organization has distinctive strengths and weaknesses that must be acknowledged when choosing its target segment. b. Another major consideration in segment selection entails the size and growth potential of the segment.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 6: Market Segmentation, Positioning and the Value Proposition

c. Segment size is a function of the number of people, households, or institutions in the segment, plus their willingness to spend in the product category. iv. A second consideration is the forecasted return on investment (ROI) for the segment. v. A third selection criterion is the competitive field—companies that compete for the segment’s business. a. Advertisers must first look at the competitive field and then decide whether it has a particular expertise, or perhaps just a bigger budget, which would allow it to serve the segment more effectively. vi. The smaller-is-better segmentation principle has become so popular in choosing segments that it is now referred to as niche marketing. a. A market niche is a relatively small group of consumers who have a unique set of needs and who typically are willing to pay a premium price to the firm that specializes in meeting those needs. A. Discussion Activity 2 (PPT Slide 25, Time duration 10 minutes) i. A market niche is a relatively small group of consumers within a segment that has a distinctive set of needs or that seeks very specific benefits. a. Explain why smaller is better when selecting segments to target in marketing strategies. 1. Answer: Large segments typically are familiar to most of the key players in the competitive field, and they may be characterized by intense competitive rivalries. Smaller segments can be very attractive in that they may not offer enough business to support more than one company, but if yours is that one company, serving a small segment can be profitable. Those who seek to identify and pursue “one-company” segments are commonly focused on market niches. B. Discussion Activity 2 Debrief (PPT Slide 26, Time estimation: 10 minutes) i. As Chobani secured shelf space in major U.S. supermarket chains and introduced new products, competitors saw how consumers responded, and launched their own products. Now Greek yogurt accounts for roughly half of all U.S. yogurt sales—even though it was a tiny niche when it started. a. What are some examples of products that serve a niche market? 1. Answer: Answers will vary. Products can include medications for specific medical problems, medical journals, and legal texts. b. What are some other examples of products that were considered niche in the beginning, but are now widely found and purchased? 1. Some possible examples include soy milk (Silk), rice milk (Rice Dream), oat milk (Oatly), and meat alternatives such as Beyond Meat and Impossible Foods. IV. Targeting (LO 4, PPT Slides 27-33)

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 6: Market Segmentation, Positioning and the Value Proposition

A. Positioning/Repositioning i. Positioning or repositioning is where the advertiser and IBP pros work on crafting the meaning of the desired brand. B. Positioning Opportunity i. The best positioning model comes from Anne Bahr at InterBrand. InterBrand is the world’s largest and most successful brand consultancy. It has four factors represented by overlapping circles. ii. The point at which these four meet is considered the best opportunity, the brand’s best position. They are: a. Relevance: Where is the strong consumer connection? What is the revealed need(s) of consumers? b. Differentiation: Can the brand stand out as significantly different from others? c. Credibility: Will consumers believe it? d. Stretch: Will the brand’s meaning have continued relevance in changing times? Will it foster brand extensions? iii. To derive a brand’s best positioning, you should find the place where the answer to all four questions is “yes.” Then you know that your positioning is good and sustainable. C. Essentials for Effective Positioning Strategies i. Effective positioning strategies are based on meaningful commitments of organizational resources to produce substantive value for the target. ii. Deliver on the Promise a. For a positioning strategy to be effective and remain effective over time, the organization must be committed to creating substantive value for the customer. iii. There’s Magic in Consistency a. A positioning strategy also must be consistent internally and consistent over time. b. Regarding internal consistency, everything must work in combination to reinforce a distinct perception in the consumer’s eyes about what a brand stands for. c. A strategy also needs consistency over time. Consumers have perceptual defenses that allow them to screen or ignore most of the ad messages they are exposed to. Breaking through the clutter and establishing what a brand stands for is a tremendous challenge, but it is a challenge made easier by consistent positioning. iv. Make it Different Simply a. Simplicity and distinctiveness are essential to the advertising task. b. No matter how much substance has been built into a product, it will fail in the marketplace if the consumer doesn’t perceive what the product can do.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 6: Market Segmentation, Positioning and the Value Proposition

c. The basic premise of a positioning strategy must be simple and distinctive if it is to be communicated effectively to the target segment. D. Discussion Activity 3 (PPT Slide 32, Time duration 10-15 minutes) i. Most advertising that consumers are exposed to has no effect on them. a. What essential elements of a positioning strategy can help overcome the consumer’s natural tendency to ignore, distort, or forget most of the advertisements that they are exposed to? 1. Answer: A sound positioning strategy can be important in overcoming the consumer’s natural tendency to screen out most commercial messages. The distinctiveness and simplicity of a positioning strategy are essential elements that help an advertiser break through the clutter to reach the consumer. Consistency over time is another critical element for overcoming consumers’ innate perceptual filters—communicating the same basic themes to the target segment over time helps the message to stick in the minds of consumers. E. Discussion Activity 3 Debrief (PPT Slide 33, Time duration 10 minutes) i. As you think about failed General Motors’ brands like Pontiac and Oldsmobile, which essentials did they fail to meet? a. Answers will vary. Pontiac began an important turnaround during the 1980s with its "We Build Excitement" and “Grand Am—Excitement Well Built” campaigns. The automaker's positioning strategy had simple, distinctive themes, and was consistent over time. Unfortunately, when Pontiac failed to deliver substance to back up its claim of being "well built," consumers turned away. Plastic fenders, under-powered engines borrowed from GM's Chevy and Buick divisions, and premium pricing turned off the customer segment looking for excitement. With Oldsmobile, the demise started with an ill-conceived and ill-fated campaign “This is not your father’s Oldsmobile.” Problem was—it WAS your father’s Oldsmobile with outdated handling and styling. This was a classic case of failing to deliver on the brand promise. V. Working with a Value Proposition and a Brand Platform (LO 5, PPT Slides 3437) i. Brand positioning is often summarized as a value proposition, a brand promise, or a brand platform. ii. One of the ways to capture and keep a record of what our brand is supposed to stand for in the eyes of the target segment is by articulating the brand’s value proposition. a. A value proposition is a natural extension of concepts that are already familiar; it simply consolidates the emphasis on customer benefits that has been featured in this chapter. It is a simple

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 6: Market Segmentation, Positioning and the Value Proposition

sentence or two that clearly says just what value the brand will be to the customer. b. The brand promise is another name for this idea. It is instead expressed in terms of what it is that the brand promises the customer. iii. McDonald’s Value Propositions a. Another way of summarizing or “putting it all together” is known as the brand platform—a core idea that frames an ambition or aspiration for the brand that will be relevant to target audiences over time. A. Now, Making It Happen i. The strategic planning triangle proposed by advertising researchers Esther Thorson and Jeri Moore will be helpful to pull together the concepts presented in this chapter. The apexes of the planning triangle entail the segment(s) selected as targets for the campaign, the brand’s value proposition, and the array of persuasion tools that will be deployed to achieve campaign goals. ii. Thorson and Moore place identification and specification of the target segment as the paramount apex in their model. The second important apex in the planning triangle entails specification of the brand’s value proposition. The final apex of the planning triangle considers the various persuasion tools that may be deployed as part of the campaign. B. Knowledge Check (PPT Slide 37, Time duration: 5 minutes) i. Which market segmenting strategy is likely to be most effective for business-to-business marketing? a. By benefit segmentation b. By usage patterns c. By providing variety d. By using psychographics ii. Answer: B. By usage patterns—Market segmentation by usage patterns and geographic factors can be highly effective in reaching specific business markets, where customers generally have established purchasing, shipping, and manufacturing schedules. In general, simpler segmentation strategies are likely to be most effective in B2B settings, such as targeting business customers by their experience with the purchasing process. Segmentation strategies based on customer motivation, such as lifestyle measures or psychographics, typically do not translate to business climate where the emotional factor in purchasing decisions is greatly reduced. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 6: Market Segmentation, Positioning and the Value Proposition

ADDITIONAL DISCUSSION QUESTIONS The following are discussion questions that do not appear in the text, PPTs, or courseware (if courseware exists) – they are for you to use as you wish. You can assign these questions several ways: in a discussion forum in your LMS; as wholeclass discussions in person; or as a partner or group activity in class. 1. Why is the STP (segmenting, targeting and positioning) marketing approach important in the success in marketing and advertising strategies? Describe one example of a marketing campaign that uses this approach effectively. a. Answer: Marketers pursue this set of activities in formulating marketing strategies for their brands. STP marketing also provides a strong foundation for the development of advertising campaigns. While no single approach can guarantee success in marketing and advertising, STP marketing should always be considered when consumers in a category have heterogeneous wants and needs. Answers will vary for the examples of successful STP marketing approaches. The chapter uses is Hilton, who markets more than a dozen hotel brands and one vacation brand, each of which is aimed at specific segments of the consumer and business markets for lodgings and meeting space. Its Tru by Hilton brand targets travelers who want affordable accommodations and who have a “millennial mindset,” meaning those who are younger than 35 or feel like they’re in that age bracket. Hilton’s Waldorf Astoria hotel brand targets affluent travelers who desire a luxurious experience with personalized service. The Hilton Hotel brand stands for full- service accommodations (restaurants, room service, spas, meeting rooms). The Hilton Hotels Worldwide website describes each brand in the portfolio and what it offers the targeted segment. 2. It is often said that psychographics was invented to overcome the weaknesses of demographic information for describing target segments. What unique information can psychographics provide that would be of special value to advertisers? a. Answer: Psychographic variables gauge consumers’ activities, interests, and opinions. When used to describe segments, they are likely to stimulate insights about the motives of consumers in the target segment. Psychographic descriptors can also be quite useful to the art and creative directors and copywriters responsible for developing specific advertisements. Psychographic information helps those who prepare advertisements to better understand the consumer they are trying to reach and engage. 3. What are the considerations when determining an organization’s target segment? Explain why smaller can be better when selecting segments to target in marketing strategies. a. Answer: Several criteria are useful in establishing the organization’s target segment. First, the organization must decide whether it has the proper skills to serve the segment in question. The size of the segment and its growth potential

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 6: Market Segmentation, Positioning and the Value Proposition

must also be taken into consideration. Another key criterion involves the intensity of the competition the firm is likely to face in the segment. Often, small segments known as niches can be attractive because they have few, if any, competitors and may have significant growth potential. Smaller really can be better when it comes to selecting target segments. Large segments typically are familiar to most of the key players in the competitive field, and they may be characterized by intense competitive rivalries. Smaller segments can be very attractive in that they may not offer enough business to support more than one company, but if yours is that one company, serving a small segment can be profitable. Those who seek to identify and pursue “one-company” segments are commonly focused on market niches. 4. What essential elements of a positioning strategy can help overcome the consumer’s natural tendency to ignore, distort, or forget most of the advertisements that she or he is exposed to? a. Answer: Most advertising that consumers are exposed to has no effect on them. A sound positioning strategy can be important in overcoming the consumer’s natural tendency to screen out most commercial messages. The distinctiveness and simplicity of a positioning strategy are essential elements that help an advertiser break through the clutter to reach the consumer. Consistency over time is another critical element for overcoming consumers’ innate perceptual filters—communicating the same basic themes to the target segment over time helps the message to stick in the minds of consumers. 5. How do segmentation and value proposition add to the effectiveness of marketing strategies? Electronic reading devices are hot, and Amazon’s Kindle and Apple’s iPad are in a heated battle to win over the bookworms of the world. Kindle focuses solely on reading, whereas iPad offers reading, movies, music, office computing, and more. Some analysts predict that iPad will eclipse Kindle because it offers many powerful multimedia features; others think Kindle can hold its own. Make a case for how Amazon might use segmentation and a clever value proposition to dominate the growing e-books market with its Kindle stand-alone reader. a. Answer: Markets can be segmented on the basis of many things, but usage patterns and commitment levels, demographic and geographic information, psychographics and lifestyles, or benefits sought are some of the most commonly used approaches that help create an effective advertising strategy. A value proposition is a statement of the various benefits (functional, emotional, and self-expressive) offered by a brand that create value for the customer. These benefits as a set justify the price of the product or service. Clarity in expression of the value proposition is critical for development of advertising that sells. If Kindle and iPad are equal when it comes to reading books, the outcome of the e-book wars may depend on which company is better at segmenting audiences and formulating a value proposition. The right segmentation and value proposition could give Kindle an edge over iPad,

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 6: Market Segmentation, Positioning and the Value Proposition

despite the latter’s comprehensive computing features. Kindle has a welldefined niche as a stand-alone reader for people who like to read books. And while “people who like to read books” is a much smaller consumer segment than the one Apple is targeting with iPad, Amazon has the edge on serving that smaller niche. The outcome of the e-book wars may be determined by who has the better online bookstore, who sponsors the best social networking clubs at Facebook and Twitter, and who has the most literary credibility in the minds of people who frequent traditional bookstores. Such functional and emotional benefits can be influenced by advertising and promotion, especially by skillful market segmentation and a well-defined value proposition. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 7: Advertising Research

Instructor Manual

Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 7: Advertising Research

TABLE OF CONTENTS Purpose and Perspective of the Chapter .......................................................................... 2 Cengage Supplements ........................................................................................................ 2 Chapter Objectives ............................................................................................................. 3 Complete List of Chapter Activities and Assessments .................................................... 3 Key Terms ........................................................................................................................... 4 What's New in This Chapter............................................................................................... 7 Chapter Outline ................................................................................................................... 8 Additional Discussion Questions ..................................................................................... 18

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 7: Advertising Research

PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to understand that advertising and brand promotion research is research that aids in the development, execution, or evaluation of advertising and promotion. Research is an essential element in analyzing the environment. In the past 20 years, several advertising agencies have come to believe that stand-alone research departments are a luxury that they can no longer afford, given the increased demands for accountability, profit, and relevance. As such, much of the advertising research comes from consultants, professors, and other vendors for agencies without in-house research departments. Because information is such a critical resource in the decision-making process, several sources of data are widely used. Copy research (evaluative research) aims to judge the effectiveness of actual ads. Advertisers and clients try to determine if audiences “get” the joke of an ad or retain key knowledge concerning the brand. Tracking changes in audience attitudes, feelings and emotions, behavior, and physiological response is important in gauging the overall success of an ad, and various methods are employed before and after the launch of a campaign to assess the impact on audiences. Once an ad campaign has reached the marketplace, agencies and firms turn to results-oriented research to try to determine whether the ad has succeeded—whether, quite simply, the ad prompted consumers to buy the product or service. Another issue is that advertising is often more art than science; it wraps culture around goods and services in order to give brands meaning. Some current research methods are at odds with that reality. Therefore, advertisers and agencies need more culturally- and socially-based methods combined with more traditional experimental research to capture the nuances of brand meaning, communication, and consumer reaction.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 7: Advertising Research

•

Guide to Teaching Online (provides information about the key assets within the product and how to implement/facilitate use of the assets in synchronous and asynchronous teaching environments)

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 7-1

Explain the purposes served by and the methods used in developmental advertising research.

7-2

Identify sources of secondary data that can aid the IBP planning effort.

7-3

Discuss the purposes served by and the methods used in copy research.

7-4

Discuss the research methods used after ads are in the marketplace along with the differences between advertising research and account planning.

Source (i.e., PPT slide, Workbook) PPT Slide 3 PPT Slide 23 PPT Slide 24 PPT Slide 28 PPT Slide 29 PPT Slide 42 PPT Slide 43 PPT Slide 50

Duration 10 minutes 10-15 minutes 10 minutes 5-10 minutes 5-10 minutes 5-10 minutes 5-10 minutes 5 minutes

[return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 7: Advertising Research

KEY TERMS Account Planning A system by which, in contrast to traditional advertising research methods, an agency assigns a coequal account planner to work with the agency team, analyzing research data related to a client’s brand or product. Advertising Effectiveness A measure of how effective a particular ad or marketing approach is in meeting its goal. Attitude An overall evaluation of any object, person, or issue that varies along a continuum, such as favorable to unfavorable or positive to negative. Attitude Study A research method that measures consumer attitudes after exposure to an ad or measures attitudes about a company’s product, as well as that of the competing brand. Behavioral Intent Refers to essentially what consumers say they intend to do but is not always a great substitute for actual consumer behavior. Big Data Term used to refer to massive data that have become available through social media where researchers find patterns in using computer algorithms. These data may include email surveillance and analysis, frames per second (fps) tracking, and capturing every single click, location, and words users of smartphones create as examples relevant to advertising. Brand Knowledge What a customer knows about a brand, which may take several forms such as a brand claim or a belief about the brand. Communication Test A type of pretest message research that simply seeks to see if a message is communicating something close to what is desired. Concept Test A type of developmental research that seeks feedback designed to screen the quality of a new idea, using consumers as the final judge and jury. Consumer Insights Knowledge of how consumers think about, use, or otherwise view brands, good, or services within the context of their lives. These insights are typically derived through ethnographic methods. Dialogue Balloons A type of projective technique that offers consumers the chance to fill in the dialogue of cartoonlike stories, as a way of indirectly gathering brand information. Direct Response Copy research method measuring actual behavior of consumers.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 7: Advertising Research

Embedded Consumption practices tightly connected to a context. Ethnographic Research Researchers observe and interview consumers in real-

world settings.

Evaluative Research Research on the actual ads or promotional language, finished or unfinished and is used to judge or evaluate ads and promotions, usually right before or after the ad is finalized (sometimes also referred to as copy research). Eye-Tracking System A type of physiological measure that monitors eye movements across print and online ads during research studies. Fieldwork Research conducted outside the agency, usually in the home or site of consumption. Focus Group A brainstorming session with a small group of target consumers and a professional moderator, used to gain new insights about consumer response to a brand. Frame-By-Frame Tests Copy research method that works by getting consumers to turn dials (like/dislike) while viewing television commercials in a theater setting, to assess response. Implicit Memory Measures Techniques used to obtain feedback that determines consumers’ recognition of advertising, characterized by questions or tasks that do not explicitly make reference to the advertisement in question. The perceived advantage of this type of test is a more subconscious, unadulterated response. In-depth interviews A form of qualitative research done with consumers that bring a deep understanding and are often used to supplement the findings from AIO research. Inquiry/Direct Response Measures A type of posttest message tracking in which a print or broadcast advertisement offers the audience the opportunity to place an inquiry or respond directly through a reply card or toll-free number. Lifestyle (AIO) Research Survey-based knowledge derived through questions about consumers’ activities, interests, and opinions (AIO). It is used to help develop messages and target profiles of consumers.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 7: Advertising Research

Long Interview A one-on-one interview, as long as one hour, with a consumer in which the interviewer probes to get at deeper connections between brands, consumption practices, and consumers’ real lives. Netnography A research method to understand online communities or online cultures. Normative Test Scores Scores that are determined by testing an ad and then comparing the scores to those of previously tested, average commercials of its type. Physiological Assessment The research interpretation of certain biological feedback generated from viewers who are exposed to an ad or IBP message, using brain imaging and other neuroscience techniques. Primary Research A type of systematic discovery-seeking or testing when the researcher designs their own study and/or collects their own original research/data. Projective Techniques A type of developmental research designed to allow consumers to project thoughts and feelings (conscious or unconscious) in an indirect and unobtrusive way onto a theoretically neutral stimulus. Qualitative Research Entails research that has data that is descriptive and entails phenomena that are observed rather than measured. Quantitative Research A form of systematic information gathering and analysis based on measures of quantities or numbers. Recall Tests Tests of how much the viewer of an ad remembers of the message; they are used to measure the cognitive residue of the ad. These are the most commonly employed tests in advertising. Recognition In a test when the audience members indicate that they have seen an ad before. Recognition Tests Tests in which audience members are asked if they recognize an ad or something in an ad. These are the standard cognitive residue test for print ads and promotion. Resonance Test A type of message assessment in which the goal is to determine to what extent the message resonates or rings true with target audience members. Secondary Research Research when the researcher does not collect the data, but acquires it from another source.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 7: Advertising Research

Single-Source Data Information provided from individual households about brand purchases, coupon use, and television advertising exposure by combining grocery store scanner data with TV-viewing data from monitoring devices attached to the households’ televisions. Story Construction A type of projective technique that asks consumers to tell a story about people depicted in a scene or picture, as a way of gathering information about a brand. Thought Listing (Cognitive Response Analysis) A type of pretest message research that tries to identify specific thoughts that may be generated by an advertisement. Also known as cognitive response analysis. Tracking Studies Studies that document the apparent effect of advertising over time, assessing attitude change, knowledge, behavioral intent, and self-reported behavior. They are one of the most commonly used advertising and promotion research methods. Trendspotting Identifying new trends in the marketplace. Zaltman Metaphor Elicitation Technique (ZMET) A research technique to draw out people’s buried thoughts and feelings about products and brands by encouraging participants to think in terms of metaphors. [return to top]

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition: •

New key terms o advertising effectiveness o behavioral intent o big data o brand knowledge o evaluative research o primary research o qualitative research o quantitative research o secondary research

•

Updated content on research methods such as online methods and account planning

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 7: Advertising Research

•

New trends added from JWT (ad agency) such as cryptocurrency and machine learning

•

Content on media multitasking

•

Stage One: Developmental Advertising and IBP Research (LO 1, PPT Slides 5-24) i. Developmental advertising and promotion research is used to generate opportunities and messages. ii. It helps creatives (the people who dream up and actually make the ads) and the accounts team figure out the target audience’s identity, what they perceive themselves as needing in a given good or service, and their usage expectations, history, and context, among other things. iii. It is conducted early in the process to influence the way the ads, branded entertainment, or other IBPs turn out. It is sometimes called consumer insights. A. Design Thinking i. Design thinking is a newer way of looking at the integration of research and product development. It is finding its way into advertising and brand promotion as well. a. The idea is to get marketers and advertisers to think like designers. b. Designers use a type of thought process that emphasizes getting rid of any preconceived notions of what a good or service is currently

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 7: Advertising Research

and replaces it with a process in which designers partner with users/potential users to actually create from scratch what the good or service should actually look like. c. Design thinking emphasizes data acquired from close work with consumers that reveals what they really need and want in a good or service, not what some engineer screwed together, or what they told you in a focus group. d. It then uses an ongoing process of prototyping, use, feedback, prototyping again (and again and again sometimes), and then communicating what the brand really does (or could do) for real consumers. B. Concept Testing i. A concept test seeks feedback designed to screen the quality of a new idea, using customers as the judge and jury. a. Concept testing may be used to screen new ideas for specific advertisements or to assess new product concepts. b. Before a new product is launched, the advertiser should have a deep understanding of how the product fits current needs and how much consumers are willing to pay for the new product. c. Concept tests of many kinds are commonly included to get quick feedback on new product or advertising ideas. C. Audience Profiling i. Creatives need to know as much as they can about the people to whom their ads will speak. a. This audience profiling is done in many ways. b. One way is through lifestyle research, also known as AIO (activities, interests, and opinions). D. Focus Groups i. A focus group is a discussion session with (typically) 6 to 10 target customers who have been brought together to come up with new insights about the good or service. a. Focus groups offer the opportunity to gather in-depth data. It takes great skill and training to run focus groups effectively. E. Projective techniques i. Projective techniques are designed to allow consumers to “project” their thoughts, but mostly feelings (conscious or unconscious), onto a “blank” or neutral “surface.” The most common projective techniques are: A. Dialogue balloons offer consumers the chance to fill in the dialogue of cartoon-like stories. The story usually has to do with a product use situation. B. Story construction asks consumers to tell a story about people depicted in a scene or picture.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 7: Advertising Research

C. The Zaltman Metaphor Elicitation Technique (ZMET) claims to draw out people’s buried thoughts and feelings about products and brands by encouraging participants to in terms of metaphors. ZMET draws metaphors from consumers by asking them to spend time thinking about how they would visually represent their experiences with a particular product or service. F. Method: Fieldwork/Long Interviews i. Two methods of obtaining information about day-to-day consumer behavior is through fieldwork and long interviews. a. Fieldwork 1. Fieldwork is conducted outside the agency (i.e., in the “field”), usually in the home or site of consumption. Its purpose is to learn from the experiences of the consumer and from direct observation. 2. Consumers live real lives, and their behavior as consumers is intertwined throughout these real lives. 3. Their consumption practices are embedded; that is, they are tightly connected to their social context. b. Long interview 1. The long interview is another method of gaining data about the real lives of consumers and the way they think about the brand, the category, and how its consumption fits (or doesn’t) into their lives. 2. Long interviews are not just long (meaning more than 15 minutes, usually more like an hour); they are, when conducted by trained researchers, structured in such a way as to best get at important connections. The role of listening in this method cannot be overstated. G. Discussion Activity 1 (PPT Slide 23, Time duration: 10-15 minutes) i. Advertisers increasingly are using metaphor associations in promotional development, tapping into the powerful organizing and expressing function metaphor serves in the human brain. Test this method on yourself using each of these well-known brands or products: Coca-Cola, Crest Whitestrips, and milk. a. For each example, how would you visually represent your experiences with that brand or product? 1. By serving as a test consumer in this exercise, students should gain a better understanding of how advertisers use projective techniques to evaluate consumer awareness, understanding, and approval of brands, products, and services. Common projective techniques include methods such as association tests, dialogue balloons, or sentence or picture completion. But advertisers in recent years also have turned to the Zaltman Metaphor Elicitation Technique, which claims to draw out subconscious

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 7: Advertising Research

II.

thoughts about brands and products by encouraging participants to think in terms of metaphors. Responses will vary, but students’ answers should be deeply varied and highly personal. H. Discussion Activity 1 Debrief (PPT Slide 24, Time duration: 10 minutes) i. The Zaltman Metaphor Elicitation Technique (ZMET) may be used by advertisers in place of focus groups. a. What aspects of ZMET and focus groups are similar? 1. ZMET and focus groups are similar in that consumers are allowed to express their thoughts and feelings about a product or brand in an open-ended fashion. b. What particular features of ZMET could foster richer understanding of consumers’ motives than is typically achieved with focus groups? 1. The differences are that focus groups talk about the realities of their experiences whereas with the ZMET technique, consumers are asked to use metaphors—including pictures and photographs—as a way to represent their feelings. ZMET allows a richer understanding because focus groups discussions can be merely descriptive of experiences. ZMET goes beyond description and tries to get to deep feelings and motivations. Sources of Secondary Data (LO 2, PPT Slides 25-29) A. Netnography and Big Data i. Often in secondary research, data points already exist, or the research has already been done by another party. a. Secondary research is when the researcher does not collect the data but acquires it from another source. ii. Primary research is when the researcher designs their own study and/or collects their own original research. a. The lines between secondary research and primary research are blurring, especially as the Internet has revolutionized developmental research. iii. Big Data is data in a very large dataset that researchers find patterns in using computer algorithms. iv. Netnography is a way to study an online community with an ethnographic lens. a. The researcher observes and collects data from online communities. At the same time, the researcher actively seeks answers from online informants. B. Internal Company Sources i. There is often valuable data within the company: customer service records, warranty registration cards, customer complaints, and various sales data. ii. All of these provide a wealth of information relating to the proficiency of the company’s advertising programs and more generally, changing consumer tastes and preferences.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 7: Advertising Research

C. Government Sources i. Various government organizations generate data on factors of interest to advertising planners: information on population and housing trends, transportation, consumer spending, and recreational activities in the United States are examples. D. Commercial, Industry, and Nonprofit Sources i. Information from these sources is reasonably comprehensive and is normally gathered using reasonably sound methods. ii. The cost of information from these sources is greater than information from government sources but is specifically designed to be of benefit to advertisers and marketers. iii. Professional Publications a. Professional publications are periodicals in which marketing and advertising professionals report significant information related to industry trends or new research findings. E. Discussion Activity 2 (PPT Slide 28, Time duration: 5-10 minutes) i. Big Data is used to generate consumer-specific advertising. Ads generated within social media are often the result of a user’s search history or words the users of smartphones have typed. As they are often analyzed by artificial intelligence (through algorithms that detect patterns or trends) Big Data sometimes tells researchers what consumers did in the past without knowing why the behavior happened. a. Can you think of an example where advertising was generated based upon your search or texting history, but the resulting product or brand was of no relevance to you because of this phenomenon? 1. Responses will vary. One example: If someone’s child clicked on an ad because it looked like a video game, the online behavior is recorded as it happened, but it would be incorrect to assume that the ad was clicked on out of interest. However, this historical click could result in additional ads being generated for the user, all of which may be completely irrelevant and of no interest. F. Discussion Activity 2 Debrief (PPT Slide 29, Time duration: 5-10 minutes) i. Which data collection method would likely result in a better representation of a specific user’s likes and interests? a. Netnography—a method of understanding online communities or online cultures—would likely result in more relevant and useful information. It refers to an ethnography conducted online (the term comes from the words “network” and “ethnography”). In netnography, the researcher observes and collects data from online communities. At the same time, the researcher actively seeks answers from online informants, the way a field researcher would in

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 7: Advertising Research

III.

a face-to-face physical setting (only at far lower expense). Some researchers also systematically analyze brand-talk (conversations about their brands and competitors) by searching and sampling and analyzing online chatter. Over time this can be a good source of unobtrusively gathered brand information that can be used to develop new ads and other brand messaging. Stage Two: Copy Research (LO 3, PPT Slides 30-43) i. Copy research also called as evaluative research refers to research on actual ads or promotional texts, finished or unfinished. Copy research is used to judge or evaluate ads and promotions. This research usually occurs right before or after the ad is finalized. ii. Just what do advertising people want out of their message tests? The answer, of course, depends on whom you ask. a. The account team wants some assurance that the commercial or ad does what it is supposed to do. b. The client typically wants to see some numbers, generally meaning normative test scores—scores relative to the average for a category of ads. c. The creatives don’t like copy testing at all. Despite the politics involved, copy testing research is a good idea most of the time. d. Properly conceived, correctly conducted, and appropriately applied, copy research can yield important data that management can then use to determine the suitability of an ads. A. Evaluative Criteria and Methods i. This section discusses the major evaluative criteria and the major methods of assessing ads and promotions on these criteria. a. Communication Tests 1. A communication test simply seeks to discover whether a message is communicating something close to what the advertiser desired. 2. Communications tests are usually done in a group setting, with data coming from a combination of pencil-and-paper questionnaires and group discussion. b. What do they Remember? 1. It is assumed that if the consumer was exposed to the ad, something of that ad remains in the consumer’s mind: cognitive residue, pieces of the ads mixed with the consumer’s own thoughts and reactions. 2. It might seem obvious to test for what consumers remember, but not so. Memory measures have been extremely difficult to develop and results hard to interpret. 3. So, cognitive residue as a measure has been developed and covered in the next section. B. Common Methods for Assessing Cognitive Impact i. Thought Listings

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 7: Advertising Research

a. Copy research that tries to identify specific thoughts generated by an ad is referred to as thought listing, or cognitive response analysis. b. Here the researcher is interested in the thoughts that an ad or promotion generates in the mind of the audience. ii. Recall Tests a. These are one of the most commonly employed tests in advertising, and the most controversial. The basic idea is that if the ad is to work, it has to be remembered. Following on this premise is the assumption that the ads best remembered are the ones most likely to work. b. The objective of these tests is to see just how much of an ad, if anything, the viewer remembers the message. c. Recall tests are the industry standard in television, while recognition is the industry standard for print. Various forms of recall are tested are: 1. Unaided recall is when a respondent demonstrates having seen the ad and remembers the brand name without having it mentioned. 2. Aided recall is when a respondent has to be asked about an ad by using the brand name. 3. Claim recall measures the percent who claim seeing an ad. 4. Related recall measures the percent who accurately recall specific elements of an ad. iii. Recognition Tests a. Recognition tests are the standard memory test for print ads and promotions. Rather than asking you if you recall something, they ask if you recognize an ad, or something in an ad. This type of testing attempts to get a little more than evidence of exposure residue. b. The categories of recognition are noted if they remember seeing the ad; associated if they read or saw enough of the ad to notice the brand name; and read most if they claim to have read at least 50 percent of the copy. This testing is usually conducted just a few days after the current issue becomes available. iv. Implicit Memory Measures a. Implicit memory measures do not refer back to the ad or exposure but try to get at memory by using tasks like word fragments: say, part of a brand name, like S R N T for Sprint. b. Subjects are asked to complete the brand name (that is scored) along with other recollections. The idea is that this is a much more sensitive, less demanding (artificial), and perhaps a more meaningful measure of advertising. c. It is being used occasionally in actual practice, but its intensive procedure and instrumentation make it more of an academic pursuit than an applied one. v. Brand Knowledge a. To have brand knowledge that could have come only from an ad is a much more meaningful measure of advertising effectiveness.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 7: Advertising Research

vi.

b. This knowledge may take several forms—a brand claim or belief about a brand. But with the explosion in available information for consumers, it’s really getting hard to figure out just where some piece of knowledge came from. Attitude Change

a. Attitudes suggest where a brand stands in the consumer’s mind. b. They are influenced both by what people know and by what people feel about a brand. In this sense, attitude or preference is a summary evaluation that ties together the influence of many different factors. vii. Attitude Studies a. An attitude study measures consumer attitudes after exposure to an ad. Ideally, there would be pre- and post-exposure attitude measurement so that one could see the change related to seeing the ad in question. viii. Feelings and Emotions a. Recent research has shown that feelings have three distinct properties that make them very powerful in reactions to advertisements and the advertised goods and services: 1. Consumers monitor and access feelings very quickly—consumers often know how they feel before they know what they think. 2. There is much more agreement in how consumers feel about ads and brands than in what they think about them; and 3. Feelings are very good predictors of thoughts. ix. Resonance Tests a. In a resonance test, the goal is to determine to what extent the message resonates or rings true with target audience members. The method is pretty much the same as a communication test. x. Frame-by-Frame Tests a. Frame-by-frame tests are usually employed for ads where the emotional component is seen as key, although they may also be used to obtain thought listing as well. b. These tests typically work by getting consumers to turn dials (like/dislike) while viewing television commercials in a theater setting. xi. Physiological Changes a. Every few years there is renewed interest in the technology of physiological assessment of advertising. b. Most recently, advances in brain imaging have raised hopes of understanding how the human mind actually processes advertisements. xii. Eye Tracking a. Eye-tracking systems have been developed to monitor eye movements across print ads. xiii. Behavioral Intent

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 7: Advertising Research

IV.

a. This is what consumers say they intend to do. The problem with intended behavior: It’s a poor substitute for actual behavior. C. Discussion Activity 3 (PPT Slide 42, Time duration: 5-10 minutes) i. Ads that achieve high recall scores don’t always turn out to be ads that do a good job in generating sales. i. How would you explain this finding? 1. Recall tests are informative, but like any other test, they don’t tell the whole story. Consumers may remember all sorts of things in ads and not care for the advertised brand at all. They may remember things that are completely irrelevant to the advertiser’s intended message or some of their thoughts actually interfere with associating the advertiser’s brand name with the ad itself. Humorous ads are great examples of this. The consumer remembers what is funny but not the brand name—or worse yet, remembers the competitor’s brand name instead. Stage Three: Results Research (LO 4, PPT Slides 44-50) i. At this stage, the ads are running and advertisers are trying to assess whether or not they are working. A. Method: Tracking Studies i. Tracking studies are one of the most commonly used advertising and promotion research methods. a. These studies “track” the apparent effect of advertising and branded entertainment over time by assessing attitude change, knowledge, behavioral intent and self-reported behavior. The difficulty here is linking a tracking measure to changes in sales or ROI. B. Method: Direct Response i. Direct response advertisements in print, on the Internet, and on broadcast media that offer the audience the opportunity to inquire or respond directly through a reply card, linked response, or toll-free phone number. These ads produce inquiry/direct response measures. C. Method: Estimating Sales Derived from Advertising i. This measure is, of course, the one every advertiser wants to see. These measures are flawed, but not flawed enough to refrain from use. Advertising and promotion differ greatly in the ability to use sales as a measure of results—advertising builds image, which may not be measurable. Many promotions affect short term sales results which may be measurable. Another caution with measuring advertising is that measures may be implemented long after a campaign so that multiple other influencing factors may explain positive or negative effects on sales. D. Method: All-in-One Single Source Data i. With the advent of universal product codes (UPCs) on product packages and the proliferation of cable television, research firms are now able to engage in single-source research to document the behavior of individuals—

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 7: Advertising Research

or, more typically, households—in a respondent pool by tracking their behavior from the television set to the checkout counter. ii. Single-source data provide information from individual households about brand purchases, coupon use, television advertising exposure by combining grocery store scanner data with TV-viewing data from monitoring devices attached to the households’ televisions, and increasingly search data from internet tracking software. iii. With these different types of data combined, a better assessment can be made of the real impact of advertising and promotion on consumers’ actual purchases. This is not an inexpensive method of assessment, and it still remains difficult (if not impossible) to know exactly what specific aspects of advertising had what effects on consumers. a. The best-known supplier of this type of testing is IRI Behavior Scan. E. Account Planning vs. Advertising Research i. Account planning is defined in contrast to traditional advertising research. It differs mostly in three ways. a. First, in terms of organization, agencies that use this system typically assign an “account planner” to work cooperatively with the account executive on a given client’s business. b. Second, this organizational structure puts research in a different, more prominent role. In this system, researchers (or “planners”) seem to be more actively involved throughout the entire advertising process and seem to have a bigger impact on it as well. c. Third, “planning agencies” tend to do more qualitative and naturalistic research than their more traditional counterparts. ii. One Last Thought on Message Testing a. None of these methods are perfect, not even close. Still, it would be a mistake to throw the baby out with the bathwater; good and appropriate behavioral science can sometimes produce better advertising. b. Advertising and IBP research could do with some change. The way we think about ads and advertising is certainly changing. c. The move to a visual advertising style has also put into question the appropriateness of a set of tests that focus on the acceptance of message claims, as well as verbatim remembrance of words (copy). d. Also, the rapid acceptance of digital media and audience interactivity has significantly challenged and changed the whole concept of audience, response, and associated measures. e. Account planning brings research to the heart of creative and media planning, but more change is needed to provide accountability and input for better decisions. f. Another issue is that advertising is often more art than science; it wraps culture around goods and services in order to give brands meaning.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 7: Advertising Research

F. Knowledge Check (PPT Slide 50, Time duration: 5 minutes) i. Information gathered from individual households about brand purchases, coupon use, and television advertising exposure by combining grocery store scanner data with TV-viewing data from monitoring devices attached to the households’ televisions is known as a. Big Data b. Consumer insights c. Netnography d. Single-source data ii. Answer: D. Single-source data—Research firms are now able to engage in single-source research to document the behavior of individuals and households by tracking their behavior from the television screen to the checkout counter. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 7: Advertising Research

a. Answer: Information obtained from existing sources is referred to as secondary data. Sources of secondary data mentioned in the chapter include internal company sources, government sources, commercial sources, professional publications, and the Internet. Secondary data have the distinct advantages of being far less costly to obtain than primary data and more immediately available. Limitations include the following: • The information can be out of date. • The data may be expressed in categories different from the information desired. For example, the variable of interest to a firm may be the total number of women between the ages of 18 and 25 in a certain geographic area. Published secondary data may provide statistics on women less than 18 and from 19 to 29 years of age. • The unit of measurement may be different from the unit needed for analysis. • Secondary data sources may report income figures for individuals, families, households, or spending units. If the unit of measure is not the same as the one desired by the decision maker, the data are useless. • The source of the data may not be totally objective. For example, industry trade associations may generate and report data that make the industry look good. • The data may be completely irrelevant. 3. Criteria for judging ad effectiveness include “getting it,” cognitive residue, knowledge, attitude change, feelings and emotions, physiological changes, and behavior. Identify specific evaluative advertising research methods that could be used to test an ad’s impact on any of these dimensions. a. Answer: A communication test simply seeks to tell if a message is communicating something close to what is desired. Communication tests are usually done in a group setting, with data coming from a combination of penciland-paper questionnaires and group discussion. A resonance test is one in which the goal is to determine to what extent the message resonates or rings true with target audience members. This method fits well with consumer-experience research. The question becomes, does this ad match consumers’ own experiences? Message research that tries to identify specific thoughts generated by an ad is referred to as thought listing, or cognitive response analysis. Here the researcher is interested in the thoughts that a finished or near-finished ad generates in the mind of the consumer. The most common method of advertising research is the recall test. The basic idea is that if the ad is to work, it has to be remembered. Following on this premise is the assumption that the ads best remembered are the ones most likely to work. The objective of these tests is to see just how much, if anything, the viewer of an ad remembers the message. Recall is used in the testing of print, television, and radio advertising. Recognition tests ask magazine readers and television viewers whether they remember having seen particular advertisements, and whether they can name

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 7: Advertising Research

the company sponsoring the ad. For print advertising, the actual advertisement is shown to respondents. For television advertising, a script with accompanying photos is shown. The categories of recognition are noted if they remember seeing the ad; associated if they read or saw enough of the ad to notice the brand name; and read most if they claim to have read at least 50 percent of the copy. This testing is usually conducted just a few days after the current issue becomes available. An attitude study uses a before-and-after ad exposure design. People from the target market are recruited, and their pre-exposure attitudes toward the advertised brand as well as competitors’ brands are gauged. Then they are exposed to the test ad, along with some dummy ads. Following this exposure, their attitudes are measured again. Physiological measures detect how consumers react to messages, based on physical responses. Eye-tracking systems have been developed to monitor eye movements across print ads. Advertisements in both print and broadcast media that offer the audience the opportunity to inquire or respond directly through a reply card or toll-free phone number are called inquiry/direct response measures. A more sophisticated method includes single-source tracking measures that provide information from individual households about brand purchases, coupon use, and television advertising exposure by combining grocery store scanner data with information from devices attached to the households’ televisions to monitor viewing behavior. These measures are used to gauge the impact of advertising and promotions on consumers’ actual purchases. Lastly, frame-byframe tests are usually employed for ads where affective or emotional components are key. Often consumers turn dials (like/dislike) while viewing television commercials. 4. Is advertising more of an art than a science? Do you think scientific testing methods are able to convey the true impact and effectiveness of advertising? a. Answer: None of the advertising research methods mentioned in this chapter is perfect, not even close. Advertisers sometimes think that consumers watch new television commercials the way they watch new, eagerly awaited feature films (or have other unrealistic ideas about the role of advertising in a consumer’s life). In reality, we watch TV while we work, talk, eat, and study; we use it as a night-light or for background noise. We often switch our attention between screens from moment to moment, searching on a tablet computer while a TV program is on and simultaneously receiving a text message on the phone. This can make it hard to get and keep customers attention. Advertising is often more art than science; it wraps culture around goods and services in order to give brands meaning. Some current research methods are at odds with that reality. Therefore, advertisers and agencies. need more culturally and socially based

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 7: Advertising Research

methods combined with more traditional experimental research to capture the nuances of brand meaning, communication, and consumer reaction. 5. What is the main question that agencies and firms are looking to answer once an ad campaign has reached the marketplace? What are some of the methods that agencies and firms use to answer this question? a. Answer: Once an ad campaign has reached the marketplace, agencies and firms turn to results-oriented research to try to determine whether the ad has succeeded—to answer the question of: Did the ad prompt consumers to buy the product or service? One of the most commonly employed methods of results-oriented research is the use of tracking studies to measure the apparent effect of advertising over time. Another long-standing method is to measure the direct responses of consumers to a particular campaign. Ideally, advertisers want to be able to estimate sales derived from advertising and IBP. Advertisers can, in some instances, track household consumption patterns from the television to the checkout using single-source data. Researchers are also evaluating sophisticated models to more accurately track estimated sales from advertising, what has been a painstaking and expensive endeavor. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 8: Planning Advertising and Integrated Brand Promotion

Instructor Manual Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 8: Planning Advertising and Integrated Brand Promotion

TABLE OF CONTENTS Purpose and Perspective of the Chapter .......................................................................... 2 Cengage Supplements ........................................................................................................ 2 Chapter Objectives ............................................................................................................. 2 Complete List of Chapter Activities and Assessments .................................................... 3 Key Terms ............................................................................................................................ 3 What's New in This Chapter ............................................................................................... 5 Chapter Outline ................................................................................................................... 6 Additional Discussion Questions ..................................................................................... 14

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 8: Planning Advertising and Integrated Brand Promotion

PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to understand that there is a great complexity involved in preparing and executing a comprehensive advertising and integrated brand promotion (IBP) effort. The marketing team and participating agencies follow a detailed process of building an advertising effort based on several key features of the advertising plan. An advertising plan is the culmination of all the analyses used to understand consumer behavior, segment the market and position the brand, and conduct advertising research to support the delivery of creative, effective advertising and IBP campaigns.

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 8-1

Identify the seven components of an advertising plan.

8-2

Explain the role of the introduction of an advertising plan and what it entails.

8-3

Know what a situation analysis is and how it entails a cultural context, historical context, industry analysis, market analysis, and competitor analysis.

8-4

Identify common advertising objectives and the differences between communications and sales objectives.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 8: Planning Advertising and Integrated Brand Promotion

8-5

Know the importance of budgeting for advertising and explain four methods for setting advertising budgets.

8-6

Discuss the role of strategy in advertising planning.

8-7

Identify the components of executing the advertising plan.

8-8

Define the evaluation component of an advertising plan and identify why it is important.

8-9

Discuss the role of the agency in planning advertising and IBP.

Source (i.e., PPT slide, Workbook) PPT Slide 4 PPT Slide 17 PPT Slide 18 PPT Slide 24 PPT Slide 25 PPT Slide 35 PPT Slide 36 PPT Slide 47

Duration 5 minutes 10-15 minutes 10 minutes 5-10 minutes 10 minutes 5-10 minutes 10 minutes 5 minutes

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KEY TERMS Advertising Plan A plan that specifies the thinking and tasks needed to conceive and implement an effective advertising effort. Advertising Response Function A mathematical relationship based on marginal analysis that associates dollars spent on advertising and sales generated; sometimes used to help establish an advertising budget.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 8: Planning Advertising and Integrated Brand Promotion

Brand Awareness An indicator of consumer knowledge about the existence of the brand and how easily that knowledge can be retrieved from memory. Brand Switching An advertising objective in which a campaign is designed to encourage customers to switch from their established brand. Budgeting The act of planning how much will be spent each period (month, quarter, year) and in what areas. Build-Up Analysis A method of building up the expenditure levels of various tasks to help establish an advertising budget. Competitor Analysis In an advertising plan, the section that discusses who the competitors are, outlining their strengths, weaknesses, tendencies, and any threats they pose. Ethnocentrism The tendency to view and value things from the perspective of one’s own culture. Executive Summary Typically two paragraphs to a page in length, it previews the most important aspects of the advertising plan/what the reader should remember about the plan. Household Penetration An example of a marketing plan sales objectives given as the number of homes that an ad or marketing effort gets to. Industry Analysis In an advertising plan, the section that focuses on developments and trends within an industry and on any other factors that may make a difference in how an advertiser proceeds with an advertising plan. Market Analysis Complements the industry analysis, emphasizing the demand side of the equation, where an advertiser examines the factors that drive and determine the market for the firm’s product or service. Market Share The percent of a market/industry’s total sales volume earned or controlled by a company during a certain time period. Objective-And-Task Approach A method of advertising budgeting that focuses on the relationship between spending and advertising objectives by identifying the specific tasks necessary to achieve different aspects of the advertising objectives. Percentage-Of-Sales Approach An advertising budgeting approach that calculates the advertising budget based on a percentage of the prior year’s sales or the projected year’s sales.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 8: Planning Advertising and Integrated Brand Promotion

Purchase Intent A measure of whether or not a consumer intends to buy a product or service in the near future. Repeat Purchase A second purchase of a new product after trying it for the first time. Self-Reference Criterion (SRC) The unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions. Share Of Voice Percent of the total advertising in a category (e.g., autos) spent by one brand (e.g., Ford). Situation Analysis In an advertising plan, the section in which the advertiser lays out the most important factors that define the situation and then explains the importance of each factor. Top-Of-The-Mind Awareness A measure used by advertisers which is the first brand one can remember when asked to name the brands in a category. Trial Usage An advertising objective to get consumers to use a product new to them on a trial basis. User Base The current customers who are using (or who have recently used/purchased your product or service). [return to top]

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition: •

New key terms: o budgeting o executive summary o household penetration o market share o user base

•

Apple, Louis Vuitton, and Travelocity examples

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 8: Planning Advertising and Integrated Brand Promotion

•

LOS address each component/section of an ad plan (merging the execution and evaluation stage) and adding a final LO on the role of agencies in planning.

•

The Advertising Plan and Marketing Context (LO 1, PPT Slides 6-8) i. An ad plan should be a direct extension of a firm’s marketing plan. ii. One device that can be used to explicitly connect the marketing plan with the advertising plan is the statement of a brand’s value proposition. iii. The advertising plan, including all IBPs, is a subset of the larger marketing plan. An advertising plan specifies the thinking, tasks, and timetable needed to conceive and implement an effective advertising effort. II. Introduction (LO 2, PPT Slides 9-10) i. The introduction of an advertising plan consists of an executive summary and an overview. ii. An executive summary, typically two paragraphs to one page in length, states the most important aspects of the plan. iii. As with many documents, an overview is also customary. An overview ranges in length from a paragraph to a few pages. It sets out what is to be covered, and it structures the context. III. Situation Analysis (LO 3, PPT Slides 11-18) i. An ad plan situation analysis is where the client and agency lay out the most important factors that define the market and consumer, and then explain the importance of each factor. A lengthy list of factors can define a situation analysis.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 8: Planning Advertising and Integrated Brand Promotion

A. Cultural Context i. International advertising is advertising that reaches across national and cultural boundaries. a. Adopting an international perspective is often difficult for marketers and represents a major challenge in developing ad plans. b. Managers must overcome two related biases to be successful in international markets. c. Ethnocentrism is the tendency to view and value things from the perspective of one’s own culture. d. Additionally, self-reference criterion (SRC) is the unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions. B. Historical Context i. No situation is entirely new, but all situations are unique. Just how a firm arrived at the current situation is very important. Before trying to design a campaign, an agency should certainly know a lot about the history of all the principal players, the industry, the brand, the corporate culture, critical moments in the company’s past, its big mistakes, and big successes. C. Industry Analysis i. An industry analysis focuses on developments and trends within an industry and on any other factors that may make a difference in how an advertiser proceeds with an advertising plan. An industry analysis should enumerate and discuss the most important aspects of a given industry, including the supply side of the supply-demand equation. D. Market Analysis i. A market analysis complements the industry analysis, emphasizing the demand side of the equation. In a market analysis, an advertiser examines the factors that drive and determine the overall market for a product or service category within which the advertiser offers a brand (or brands). E. Competitor Analysis i. Once the industry and market are studied and analyzed, attention turns to competitor analysis. Here an advertiser determines just exactly who the competitors are to the firm’s brand(s), discussing their strengths, weaknesses, tendencies, and any threats they pose. F. Discussion Activity 1 (PPT Slide 17, Time duration 10-15 minutes) i. In an advertising plan, the situation analysis section is used to lay out the most important factors that define the situation and then explain the importance of each factor. a. Identify each of the five key elements in a situation analysis. 1. The five key elements are cultural context, historical context, industry analysis, market analysis, and competitor analysis. G. Discussion Activity 1 Debrief (PPT Slide 18, Time duration: 10 minutes) i. How might each of these elements ultimately influence the final form of an advertising campaign?

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 8: Planning Advertising and Integrated Brand Promotion

a. Answers will vary. Demographic trends can be a critical determinant of the target segments that are the focus for the campaign, and cultural context can address the biases of ethnocentrism and self-reference criterion (SRC) in order to be successful in international markets. Historical context must be considered to ensure consistency of the campaign with the brand’s past advertising. Industry and market analyses will be important in formulating the segmentation strategy that motivates the campaign. Competitor analysis will affect the campaign in many ways but may be especially important in setting budgets for achieving campaign objectives. IV. Objectives (LO 4, PPT Slides 19-25) i. Advertising objectives lay the framework for the subsequent tasks in an advertising plan and take many different forms. Objectives identify the goals of the advertiser in concrete terms. ii. An advertiser’s objectives may be: a. To increase consumer awareness of and curiosity about its brand: Brand awareness is an indicator of consumer knowledge about the existence of the brand and how easily that knowledge can be retrieved from memory. Top-of-the-mind awareness is represented by the brand listed first. Ease of retrieval from memory is predictive of market share for many goods or services. Whether through direct, logical arguments or thought-provoking visual imagery, advertisements are frequently designed to deliver their objective of belief formation and attitude change. b. To change consumer beliefs or attitudes: One way to go about changing people’s attitudes is to give them information designed to alter their beliefs. c. To influence purchase intent: Purchase intent is another popular criterion in setting objectives. Purchase intent is determined by asking consumers whether or not they intend to buy a product or service in the near future. The appeal of influencing purchase intent is that intent is closer to actual behavior, and thus closer to the desired sale than attitudes are. d. To stimulate trial use: Trial usage reflects actual behavior and is commonly used as an advertising objective. In the case of new products, stimulating trial use is critically important. e. To convert one-time users into repeat purchasers: The repeat purchase, or conversion, objective is aimed at the percentage of consumers who try a new product and then purchase it a second time. A second purchase is reason for great rejoicing. The odds of long-term product success go way up when this percentage is high. f. To encourage brand switching: In some categories, brand switching is commonplace, even the norm. When setting a brand-switching objective, the advertiser must neither expect too much, nor rejoice too

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 8: Planning Advertising and Integrated Brand Promotion

much over a temporary gain. Convincing consumers to switch brands permanently can be a long and expensive task. A. Communications versus Sales Objectives i. Some analysts argue that communications objectives are the only legitimate objectives for advertising because advertising is but one variable in a firm’s overall marketing mix and cannot be held solely responsible for sales. ii. Rather, advertising should be held responsible for creating awareness of a brand, communicating information about product features or availability, or developing a favorable attitude that can lead to consumer preference for a brand. iii. There are two major benefits to maintaining a strict communications perspective in setting advertising objectives. a. By viewing advertising as a communications effort, marketers can consider a broader range of advertising strategies. b. Second, advertisers can gain a greater appreciation for the complexity of the overall communications process. Designing an integrated marketing communications program with sales as the sole objective neglects aspects of message design, media choice, public relations, or sales force deployment that should be effectively integrated across all phases of a firm’s communications efforts. iv. Although there is a natural tension between those who advocate sales objectives and those who push communications objectives, nothing precludes a marketer from using both types when developing an overall plan for a brand. Indeed, combining marketing plan sales objectives like market share and household penetration with advertising plan communication objectives like awareness and attitude change can be an excellent means of motivating and evaluating the planning effort. v. Objectives that enable a firm to make intelligent decisions about resource allocation must be stated in an advertising plan in terms specific to the organization. Articulating such well-stated objectives is easier when advertising planners do the following: a. Establish a quantitative benchmark: Objectives for advertising are measurable only in the context of quantifiable variables. Advertising planners should begin with quantified measures of the current status of market share, awareness, attitude, or other factors that advertising is expected to impact. b. Specify measurement methods and criteria for success: It is important that the factors being measured be directly related to the objectives being pursued. It is of little use to try to increase the awareness of a brand with advertising and then judge the effects based on changes in sales. c. Specify a time frame: Objectives for advertising should include a statement of the period of time allowed for the desired results to occur. B. Discussion Activity 2 (PPT Slide 24, Time duration 5-10 minutes)

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 8: Planning Advertising and Integrated Brand Promotion

i. Advertising objectives identify the goals of the advertiser in concrete terms. a. Is it possible to justify anything other than sales growth as a proper objective for an advertising campaign? 1. Answers will vary. This question taps into the distinction between sales and communication objectives. Often, campaign objectives are set in terms of communication goals like brand awareness levels or attitude favorability. Focusing exclusively on communication objectives reflects an acknowledgment that advertising per se is only one of many factors that determine sales of a brand. C. Discussion Activity 2 Debrief (PPT Slide 25, Time duration: 10 minutes) i. Is it possible for advertising to be considered effective and yet not yield growth in sales? a. Answers will vary. We may not see advertising register its effects on sales in the short run. Using a blend of sales and communication objectives is advisable for proper orientation of advertising efforts. Nowhere is the tension between communication and sales objectives better exemplified than in the annual debate about what advertisers really get for the tremendous sums of money they invest on Super Bowl ads. Every year, great fanfare accompanies the ads that appear during the Super Bowl, and numerous polls are taken after the game to assess the year’s most memorable ads. But more often than not, these polls turn out to be nothing more than popularity contests, with the usual suspects—like Budweiser, for example—having all the fun. The question remains: Does likability translate to sales? V. Budgeting (LO 5, PPT Slides 26-36) i. Normally, the responsibility for the advertising and IBP budget lies with the firm itself. Within a firm, budget recommendations come up through the ranks, from a brand manager to a category manager and ultimately to the executive in charge of marketing. To be as judicious and accountable as possible in spending money on advertising and IBP, marketers rely on various methods for setting an advertising budget. A. Percentage of Sales i. A percentage-of-sales approach to budgeting calculates the budget based on a percentage of the prior year’s sales or the projected year’s sales. This technique is easy to understand and implement. The percentage-of-sales approach is fraught with problems though: a. When a firm’s sales are decreasing, the advertising budget will automatically decline. Periods of decreasing sales may be precisely the time when a firm needs to increase spending on advertising. b. This budgeting method can easily result in overspending on advertising. Once funds have been earmarked, the tendency is to find ways to spend the budgeted amount. c. The percentage-of-sales approach does not relate advertising and IBP dollars to advertising objectives in any way. Basing spending on past or

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 8: Planning Advertising and Integrated Brand Promotion

future sales is devoid of analytical evaluation, and implicitly presumes a direct cause-and-effect relationship between advertising and sales. ii. A variation on the percentage-of-sales approach is to base current spending on “historical spending levels”—whatever that is. B. Share of Market/Share of Voice i. With this method, a firm monitors the amount spent by various competitors on advertising and allocates an amount equal to the amount of money spent by competitors or an amount proportional to (or slightly greater than) the firm’s market share relative to competition. This will provide an advertiser with a share of voice, or an advertising presence in the market, that is equal to or greater than the competition’s share of advertising voice. a. Although the share-of-voice approach is sound in its emphasis on competitors’ activities, there are important challenges to consider with this approach. b. It may be difficult to gain access to precise information on competitors’ spending. c. There is no reason to believe that competitors are spending their money wisely. d. The flaw in logic in this method is the assumption that every advertising/IBP effort is of the same quality and will have the same effect from a creative-execution standpoint. C. Response Models i. Using response models to aid the budgeting process is a fairly widespread practice among larger firms. The belief is that greater objectivity can be maintained with such models. ii. An advertising response function is a mathematical relationship that associates dollars spent on advertising and sales generated. a. To the extent that past advertising predicts future sales, this method is valuable. b. Using marginal analysis, an advertiser would continue spending on advertising as long as its marginal spending was exceeded by marginal sales. D. Objective and Task i. The only method of budget setting that focuses on the relationship between spending and advertising/IBP objectives is the objective-and-task approach. This method begins with the stated objectives for a campaign. a. Goals related to production costs, target audience reach, message effects, behavioral effects, media placement, duration of the effort, and the like are specified. b. The budget is formulated by identifying the specific tasks necessary to achieve different aspects of the objectives. E. Implementing the Objective-and-Task Budgeting Method i. Proper implementation of the objective-and-task approach requires a databased, systematic procedure.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 8: Planning Advertising and Integrated Brand Promotion

a. Because the approach ties spending levels to specific advertising goals, the process depends on proper execution of the objective-setting process described earlier. b. A series of well-defined steps can be taken to implement the objectiveand-task method and are outlined below: ii. Determine Costs Based on Build-Up Analysis a. In using a build-up analysis—building up the expenditure levels for tasks—the following factors must be considered in terms of costs: 1. Reach. The geographic and demographic exposure that advertising is to achieve. 2. Frequency. The number of exposures required to accomplish desired objectives. 3. Time frame. Estimate when communications will occur and during what period of time. 4. Production costs. The decision maker can rely on creative personnel and producers to estimate the costs associated with the planned execution of advertisements. 5. Media expenditures. Definition of the appropriate media, media mix, and frequency of insertions that will directly address objectives. Differences in geographic allocation, with special attention to regional or local media strategies, and digital and mobile strategies are considered at this point. 6. Ancillary costs. Prominent among these are costs associated with advertising to the trade and specialized research unique to the campaign. 7. Integrating other promotional costs. In this era of advertising and IBP, sometimes it is the novel promotion that delivers the best bang for the buck. New and improved forms of brand promotion must also be considered as part of the planning and budgeting process. iii. Compare Costs against Industry and Corporate Benchmarks a. After compiling all the costs through a build-up analysis, an advertiser will want to make a quick reality check. This is accomplished by checking the percentage of sales that the estimated set of costs represents relative to industry standards for percentage of sales allocated to advertising. b. Another recommended technique is to identify the share of industry advertising that the firm’s budget represents. Another relevant reference point is to compare the current budget with prior budgets. iv. Reconcile and Modify the Budget a. A proposed budget may not be viewed as consistent with corporate policy related to advertising expense, or it may be considered beyond the financial capabilities of the organization. Modifications to a proposed budget are common. v. Determine a Time Frame for Payout

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 8: Planning Advertising and Integrated Brand Promotion

a. It is important that budget decision makers recognize when the budget will be available for funding the tasks associated with the proposed effort. Travel expenses, production expenses, and media time and space are tied to specific calendar dates. F. Discussion Activity 3 (PPT Slide 35, Time duration: 5-10 minutes) i. Share of voice describes the percent of the total advertising in a category (e.g., autos) spent by one brand (e.g., Ford). a. In what situations would share of voice be an important consideration in setting an advertising budget? 1. Answers will vary. Share of voice assessments are important in highly competitive markets and merit special emphasis when introducing a new brand into a crowded competitive field. G. Discussion Activity 3 Debrief (PPT Slide 36, Time duration 10 minutes) i. What will be the drawbacks of trying to incorporate share of voice in budgeting decisions? a. Answers will vary. The method can be impossible to implement because detailed information about competitors’ ad-spending levels is not always available. In addition, an emphasis on share of voice may be misleading because it does not speak to the quality of advertising plans and executions. Ignoring quality and giving priority to relative spending may simply perpetuate the status quo. VI. Strategy (LO 6, PPT Slides 37-38) a. Strategy is the mechanism by which something is to be done. It is an expression of the means to an end. All the other factors are supposed to result in a strategy. Strategy is what you do, given the situation and objectives. There are numerous possibilities for advertising strategies. VII. Execution (LO 7, PPT Slides 39-42) i. Execution is the actual “doing” in the execution of an ad plan—the making and placing of ads across all media. ii. There are two elements to the execution of an advertising plan: determining the copy strategy and devising a media plan. A. Copy Strategy i. A copy strategy consists of copy objectives and methods, or tactics. The objectives state what the advertiser intends to accomplish, while the methods describe how the objectives will be achieved. B. Media Plan i. The media plan specifies exactly where ads will be placed, and what strategy is behind their placement. a. In an integrated marketing communications environment, this is much more complicated than it might appear. b. Devising a media plan is where all the money is spent and so much could be saved. C. Integrated Brand Promotion

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 8: Planning Advertising and Integrated Brand Promotion

i. The IBP effort should be designed to accompany the advertising effort in launching or maintaining a brand and be spelled out in the overall plan. VIII. Evaluation (LO 8, PPT Slides 43-44) i. Last, but not least, in an ad plan is the evaluation component. This is where an advertiser determines how the agency will be graded—what criteria will be applied and how long the agency will have to achieve the agreed-on objectives. IX. The Role of the Agency in Planning Advertising and IBP (LO 9, PPT Slides 45-47) i. Because many marketers rely heavily on the expertise of an advertising agency, understanding the role an agency plays in the advertising planning process is important. ii. The point to emphasize is that the marketer is responsible for the marketing planning inputs as a type of self-assessment that identifies the firm’s basis for offering value to customers. A. Knowledge Check (PPT Slide 47, Time duration: 5 minutes) i. Which budgeting approach can easily result in overspending on advertising? a. Objective and task b. Response model c. Share of voice d. Percentage of sales ii. Answer: D. Percentage of sales—This budgeting method can easily result in overspending on advertising. Once funds have been earmarked, the tendency is to find ways to spend the budgeted amount. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 8: Planning Advertising and Integrated Brand Promotion

a. Answer: An advertising plan entails: (1) an introduction, (2) situation analysis, (3) objectives, (4) budgeting, (5) strategy, (6) execution, and (7) evaluation. Despite the world’s need for energy, the environmental movement has successfully transformed its once-parochial anti-development message into the worldwide green movement. As a result, global energy companies are on the defensive, and their brands have suffered enormous damage from political pressure groups. Global warming and disasters like the 2010 Deepwater Horizon rig explosion in the Gulf of Mexico are foremost in the minds of ad planners as they develop campaigns for energy firms. As an illustration of how difficult the situation has become for oil and gas advertisers, a recent campaign for BP had the slogan “Beyond Petroleum.” It is remarkable that any company would promote the need to “get beyond” its core product. Likewise, Exxon has never lived down the historic Valdez spill—a disaster that continues to affect advertising planning for the entire industry. Answers will vary for determining whether one component is more important than another for developing a successful advertising plan for a challenging client like an energy company. For example, strategy might be the most important consideration to combat the negative press and damage that energy companies have suffered in the last ten years. With sound reasoning and an explanation of how a certain component might make a difference to the success of the plan, several answers may be accepted. 2. Describe five key elements in a situation analysis and provide an example of how each of these elements may ultimately influence the final form of an advertising campaign. a. Answer: The five key elements are cultural context, historical context, industry analysis, market analysis, and competitor analysis. Demographic trends can be a critical determinant of the target segments that are the focus for the campaign, and historical context must be considered to ensure consistency of the campaign with the brand’s past advertising. Industry and market analyses will be important in formulating the segmentation strategy that motivates the campaign. Competitor analysis will affect the campaign in many ways but may be especially important in setting budgets for achieving campaign objectives. 3. Is it possible to justify anything other than sales growth as a proper objective for an advertising campaign? Is it possible that advertising could be effective yet not yield growth in sales? a. Answer: This question taps into the distinction between sales and communication objectives. Often, campaign objectives are set in terms of communication goals like brand awareness levels or attitude favorability. Focusing exclusively on communication objectives reflects an acknowledgment that advertising per se is only one of many factors that determine sales of a brand. We may not see advertising register its effects on

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 8: Planning Advertising and Integrated Brand Promotion

sales in the short run. Using a blend of sales and communication objectives is advisable for proper orientation of advertising efforts. 4. In what situations would share of voice be an important consideration in setting an advertising budget? What will be the drawbacks of trying to incorporate share of voice in budgeting decisions? a. Answer: Share of voice assessments are important in highly competitive markets and merit special emphasis when introducing a new brand into a crowded competitive field. The method can be impossible to implement because detailed information about competitors’ ad-spending levels is not always available. In addition, an emphasis on share of voice may be misleading because it does not speak to the quality of advertising plans and executions. Ignoring quality and giving priority to relative spending may simply perpetuate the status quo. 5. Briefly discuss the appropriate role to be played by advertising agencies and their clients in the formulation of marketing and advertising plans. a. Answer: Clients must bring a good understanding of their customers and competitors to the ad planning process. The client should have a comprehensive marketing plan with some preliminary thinking about how its integrated marketing communications will support the other elements of the marketing mix in presenting a strong value proposition to the customer. The agency’s responsibility is to assist in articulating specific communication and sales objectives and to devise an advertising strategy to achieve the objectives. When the stage of the process is reached where it is time for actual preparation and placement, the client should look to its agency to execute the nuts and bolts of the advertising campaign.

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Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 9: Managing Creativity in Advertising and IBP

Instructor Manual Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 9: Managing Creativity in Advertising and IBP

TABLE OF CONTENTS Part 2: The Creative Process..............................................................................................1 Purpose and Perspective of the Chapter .......................................................................... 2 Cengage Supplements ........................................................................................................ 2 Chapter Objectives ............................................................................................................. 3 Complete List of Chapter Activities and Assessments .................................................... 3 Key Terms ............................................................................................................................ 4 What's New in This Chapter ............................................................................................... 5 Chapter Outline ................................................................................................................... 6 Additional Discussion Questions ......................................................................................13

PART 2: THE CREATIVE PROCESS The book is divided into five parts. At the beginning of each distinct part of the text, it is worth alerting the students to the focus of the chapters within the part. Part 3 discusses the importance of creative, consumer-based strategy to advertising and IBP. The chapters in this part discuss what creativity is and its distinguishing features, the goals and objectives of creativity, the role of multiple creative strategies and how creative concepts are brought to live through message copywriting, art direction, and production, as well as the involvement of account planning and media planning. Creative, consumer-based strategy is truly the soul of advertising and IBP. Consumerbased strategy is a way of doing business and developing advertising that starts with consumer psychology; first, we understand consumers with respect to the product or brand and how they use it and then use the consumer insights to help build or shape

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 9: Managing Creativity in Advertising and IBP

the creative strategy, or the strategic approach that a company takes to develop and implement a blueprint for the creative work and the creative team management. Without creative strategy and execution that actually resonates with consumers, no one would pay attention to messages, and marketers could not inform, entertain, or engage targeted audiences in any media.

PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to understand the importance of the role of creativity in advertising and how it is managed with the goals of the rest of the team. A look at the shared sensibilities of great creative minds provides a constructive starting point for assessing the role of creativity in the production of great advertising. Without creativity, there can be no advertising. How we recognize and define creativity in advertising rests on our understanding of the achievements of acknowledged creative geniuses from the worlds of art, literature, music, science, and politics. What it takes to get the right idea (a lot of hard work) and the ease with which a client may dismiss that idea underlies the contentiousness between an agency’s creative staff and its Account Executives (AEs) and clients’ goals. All organizations deal with the competing agendas of one department versus another, but in advertising agencies, this competition plays out at an amplified level. The difficulty of assessing the effectiveness of any form of advertisement only adds to the problem. Advertising researchers are put in the unenviable position of judging the creatives, pitting “science” against “art.” None of these tensions changes the fact that creativity is essential to the vitality of brands. Creativity makes a brand, and it is creativity that reinvents established brands in new and desired ways. One way that many organizations attempt to address this challenging issue is through systematic utilization of teams. Teams, when effectively managed, will produce outputs that are greater than the sum of their individual parts. If advertising is a profession that interests you, then improving your own creative abilities should be a lifelong quest. Now is the time to decide to become more creative.

CENGAGE SUPPLEMENTS The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center. •

Transition Guide (provides information about what is new from edition to edition)

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 9: Managing Creativity in Advertising and IBP

• • • •

Educator’s Guide (describes assets in the platform with a detailed breakdown of activities by chapter with seat time) PowerPoint (provides text-based lectures and presentations) Test Bank (contains assessment questions and problems) Guide to Teaching Online (provides information about the key assets within the product and how to implement/facilitate use of the assets in synchronous and asynchronous teaching environments)

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 9-1

Describe the core characteristics of great creative minds.

9-2

Contrast the role of an agency’s creative department with that of business managers/account executives and explain the tensions between them.

9-3

Assess the role of teams in managing tensions and promoting creativity in advertising and IBP applications.

9-4

Examine yourself and your own passion for creativity.

Activity/Assessment Icebreaker Discussion Activity 1 Discussion Activity 1 Debrief Group Activity Discussion Activity 2 Discussion Activity 2 Debrief Polling Activity Knowledge Check

Source (i.e., PPT slide, Workbook) PPT Slide 3 PPT Slide 8 PPT Slide 9 PPT Slide 23 PPT Slide 33 PPT Slide 34 PPT Slide 38 PPT Slide 39

Duration

10-20 minutes 10 minutes 10-20 minutes 10-15 minutes 10 minutes 5-10 minutes 5 minutes

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 9: Managing Creativity in Advertising and IBP

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KEY TERMS 3Ps Creativity Framework Indicates creativity is fostered by three inputs: people, process, and place. Account Executive (AE) The liaison between an advertising agency and its clients; the nature of the account executive’s job requires excellent persuasion, negotiation, and judgment skills in order to both successfully alleviate client discomfort and sell highly effective, groundbreaking ideas. Account Team A group of agency people comprising many different facets of the advertising industry (direct marketing, public relations, graphic design, etc.) who work together on a client’s advertising, under the guidance of a team leader. Brainstorming An organized approach to idea generation; for effective brainstorming, it is necessary to learn about the material in question beforehand, foster a safe environment free of destructive criticism, and openly discuss disagreements that may arise. Cognitive Style The unique preference of each person for thinking about and solving a problem. Cognitive style pioneer Carl Jung proposed three different dimensions in which thinking differs: sensing versus intuiting, thinking versus feeling, and extraverted versus introverted. Consumer-Based Strategy A way of doing business and advertising that starts with consumer psychology; first, we understand consumers with respect to the product or brand and how they use it and then use the consumer insights to help build or redo the creative strategy. Creative Abrasion The clash of ideas, abstracted from the people who propose them, from which new ideas and breakthroughs can evolve. Compare with interpersonal abrasion. Creative Brief A document that outlines and channels an essential creative idea and objective guiding the creative team.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 9: Managing Creativity in Advertising and IBP

Creative Strategy The creative team is guided by the creative brief in executing the creative strategy, or broad plan of the copywriting and art direction content. Creativity The ability to consider and hold together seemingly inconsistent elements and forces, making a new connection; creativity is essential in the advertising world because successful marketing demands a constant seamless synthesis of the product and entirely different ideas or concepts. Diversity Differences in people (such as socioeconomic, racial, ethnic, geographic, academic or professional background, religions, beliefs, and sexual orientations). Interpersonal Abrasion The clash of people, often resulting from an inability to regard idea feedback as separate from personal feedback, from which communication shuts down and new ideas get slaughtered. Compare creative abrasion. [return to top]

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition: •

New key terms: o creative strategy o diversity

•

Updated creativity examples and research

•

[return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 9: Managing Creativity in Advertising and IBP

Why Does Advertising Thrive on Creativity? (LO 1, PPT Slides 4-9) i. Clutter is the enemy of effective advertising. Great creativity can defeat clutter. ii. But in an attempt to overcome clutter, advertisers generate more ads that just increase the clutter. iii. A primary benefit of award-winning, creative ads is that they break through the clutter and get remembered. iv. Great brands make meaningful, often emotional connections, with consumers. A. Discussion Activity 1 (PPT Slide 8, Time duration: 10-20 minutes) i. Think about a favorite artist, musician, or writer. a. What is unique about the way they represent the world? 1. Responses will vary, but can include using a different perspective than what we are used to seeing, changing the point of view of a group of people or location (perhaps zooming in on a particular area or group of people), artists can use unusual color palettes, etc. B. Discussion Activity 1 Debrief (PPT Slide 9, Time duration: 10-20 minutes) a. What fascinates you about the vision they create? 1. Responses will vary. The thing about “liking” an artist or musician or writer is that they make you feel a certain way. The mere act of trying to express the “feeling” creativity gives a person is the real reason behind this question, which will help students appreciate why it is so hard to get consumers to express themselves about ads. II. Creativity across Domains (LO 2, PPT Slides 10-17) i. Creativity is the same across domains. a. Creativity is the ability to consider and hold together seemingly inconsistent elements and forces, making new connection. b. Creativity is usually seen as a gift, a special way of seeing the world. c. Creativity reflects early childhood experiences, social circumstances, and cognitive styles. d. Great creatives often exhibit total commitment to the craft. e. They are usually good self-promoters. f. Highly creative people throughout history had a childlike view of the world. g. They were also marginalized outsiders—many suffering major mental breakdowns. A. Creative Genius in the Advertising Business

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 9: Managing Creativity in Advertising and IBP

i. Perhaps not as influential as creative geniuses in other domains, it is common to see individuals from the ad business praised for remarkable creative careers. B. Creativity in the Business World i. Creativity is viewed in the business world as a positive quality for employees but is often hard to recognize and difficult to assimilate. C. Can You Become Creative? i. It really depends on what one means by creativity. ii. Is a person creative because they can produce a creative result? Or is a person creative because of the way they think? iii. Although some people may be more creative than others, you can find ways to unleash latent creative abilities. D. Notes of Caution i. First, just because someone is in a “creative” position, does not necessarily mean they are creative. ii. Conversely, those who are not in creative positions, i.e., the “suits,” are not necessarily uninspired. III. Agencies, Clients and the Creative Process (LO 3, PPT Slides 18-23) A. Oil and Water: Conflicts and Tensions in the Creative/Management Interface i. Advertising is produced through a social process of struggles for control and power that occur within departments, between departments, and between agencies and clients on a daily basis. a. Most research concerning the contentious environment in advertising agencies places the creative department at the center within these conflicts. b. The tension is not just between agency and client though it can also be between creative department and account services within the agency. c. Regardless of the conflict, the creative department is clearly recognized as an essential (probably the essential) part of the agency’s success. ii. The conflict in agencies, however, is not just about creative work. a. Conflict arises over the research process as well. b. The conflict between creatives and the research department centers about the difficulty of measuring advertising effectiveness—creatives want impact, whereas research wants to see sales. c. Clients often do not recognize their role in killing breakthrough ideas they claim they are looking for from their agencies. iii. Account executives (AEs) are the liaison between the agency and the client, and their prime responsibility is to ensure that the client is happy. a. A key challenge is to get creatives to create award winning ads (for which they receive career-making awards and praise) that also help sell the client’s brand. What is the solution to conflict and tension? b. While there may not be an ultimate” solution, the observations of John Sweeney are notable—bad advertising is more a matter of structure than talent.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 9: Managing Creativity in Advertising and IBP

c. The proper structure needs to be in place to allow people to produce their best work. d. The insights of John Sweeney—a true expert on advertising creativity— makes it clear what not to do of creativity is the goal: 1. Treat your target audience like a statistic 2. Make your strategy a hodgepodge 3. Have no philosophy 4. Analyze your creative as you do a research report 5. Make the creative process professional 6. Say one thing and do another 7. Give your client the candy store 8. Mix and match your campaigns 9. “Fix it” in production 10. Blame the creative for bad creative 11. Let your people imitate 12. Believe post testing when you get a good score B. Group Activity (PPT Slide 23; Time duration 10-20 minutes) i. Brainstorm a list of principles to facilitate creativity in an advertising agency. a. Responses will vary but should include freedom to explore new concepts but remain positive and tactful, free from intentionally offending specific people. ii. Consider each principle that leads to poor creativity. How may each be restated? 1. Treat your target audience like a statistic. 2. Make your strategy a hodgepodge. 3. Have no philosophy. 4. Analyze your creative as you do a research report. 5. Make the creative process professional. 6. Say one thing and do another. 7. Give your client a candy store. 8. Mix and match your campaigns. 9. Fix it in production. 10. Blame the creative for bad creative. 11. Let your people imitate. 12. Believe posttesting when you get a good score. a. Answers: Responses will vary. Possibilities can include comments such as rewording “Treat your target audience like a statistic” to “Treat your target audience like your favorite customer,” etc. IV. Making Beautiful Music Together: Coordination, Collaboration, and Creativity (LO 4, PPT Slides 24-34)

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 9: Managing Creativity in Advertising and IBP

i. Many individuals make unique contributions to the whole. “Maestro” brings it all together. During “warm-up” of a symphony it sounds disjointed and random. Musicians focus on “sheet music” much like an ad plan. ii. In advertising, the situation is just like a symphony with many players having distinct jobs. Collaboration and coordination are required through teams. A. What We Know About Teams i. Teams have become the primary means of getting things done in many business situations including IBP. ii. Teams Rule! a. There can be little doubt that in a variety of organizations, teams have become the primary means for getting things done. b. The growing number of performance challenges faced by most businesses—as a result of factors such as more demanding customers, technological changes, government regulation, and intensifying competition—demand speed and quality in work products that are simply beyond the scope of what an individual can offer. iii. It’s All about Performance a. Research shows that teams are effective in organizations where the leadership makes it perfectly clear that teams will be held accountable for performance. b. Teams are expected to produce results that satisfy the client and yield financial gains for the organization. iv. Synergy through Teams a. Modern organizations require many kinds of expertise to get the work done. b. The only reliable way to mix people with different expertise to generate solutions where the whole is greater than the sum of the parts is through team discipline. v. The Demise of Individualism? a. Effective teams find ways to let each individual bring his or her unique contributions to the forefront. b. When an individual does not have his or her own contribution to make, then one can question that person’s value to the team. vi. Teams Promote Personal Growth a. An added benefit of teamwork is that it promotes learning for each individual team member. b. In a team, people learn about their own work styles and observe the work styles of others. vii. Leadership in Teams a. The leader’s first job is to build consensus. b. Once goals and purpose are agreed on, the leader ensures the work of the team is consistent with the plan. Leaders must also do real work with the team and contribute.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 9: Managing Creativity in Advertising and IBP

viii. Direct Applications to the Account Team a. The account team can be envisioned as a bicycle wheel with the leader as the hub. Spokes come from direct marketing, PR, creative, graphics, digital etc. ix. Fostering Collaboration through the Creative Brief a. The creative brief is a document that sets up the goal for the advertising IBP effort and gets everyone moving in the same direction. The creative brief does not mandate a solution though. It can prevent conflicts. x. Teams Liberate Decision Making a. The right combination of talent, with a leader and a creative brief can result in breakthrough decisions. Teams with members that trust one another are liberated to be more creative. B. When Sparks Fly: Igniting Creativity through Teams i. Managed properly, teams come up with better ideas than independently working individuals. Just the right amount of “tension” can have a positive effect. ii. Cognitive Styles a. The right brain/left brain metaphor reminds us that people approach problems differently. b. Cognitive style is the unique preferences of individuals to approaching problems. iii. Creative Abrasion a. Creative abrasion refers to the clash of ideas from which new ideas and breakthrough solutions can evolve. b. Interpersonal abrasion is the clash of people, from which communication shuts down and new ideas get slaughtered. c. Leadership is needed to promote creative abrasion and limit interpersonal abrasion. iv. Using Brainstorming and Alien Visitors a. Brainstorming is an organized approach to idea generation in groups. We lay out eight rules for brilliant brainstorming: 1. Build off each other 2. Fear drives out creativity 3. Prime individuals before and after group sessions 4. Make it happen 5. It’s a skill 6. Embrace creative abrasion 7. Listen and learn 8. Follow the rules or you are not brainstorming. C. Final Thoughts on Teams and Creativity i. Creativity is fostered through trust and open communication in teams. Both personal and team creativity are critical.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 9: Managing Creativity in Advertising and IBP

ii. The position of the creative director is critical as well. In orchestrating creative teams, these are some good principles to follow: a. Take great care in assigning individuals to teams b. Get to know the cognitive style of each individual c. Make teams responsible to the client d. Beware of adversarial and competitive relationships between individuals e. Rotate team assignments to foster fresh thinking D. Discussion Activity 2 (PPT Slide 33, Time duration 10-15 minutes) i. The creative director in any agency has the daunting task of channeling the creative energies of dozens of individuals, while demanding team accountability. a. If the expression of creativity is personal and highly individualized, how can teamwork possibly foster creativity? 1. Answer: The growing reliance on teamwork does not diminish the importance of individual creativity. As the old saying goes, “If you and I think alike, then one of us is unnecessary.” The complexity of today’s business problems can only be solved through collaboration. b. What might a creative director do to “allow creativity to happen” in a team environment? 1. Fostering creativity does require that care is taken, particularly by creative directors, to ensure that teams are structured and operate in such a way that unique individual contributions are supported— not duplicated—by other team members. Creative directors can promote creativity in a team environment as well by ensuring a diverse mix of team members, treating them well, and allowing team-based decision making to provide a safe environment for more daring, more creative outcomes. E. Discussion Activity 2 Debrief (PPT Slide 34, Time duration 10 minutes) i. “The whole is greater than the sum of its parts.” a. How does this saying fit into a discussion of creativity and teamwork? 1. An effective team should indeed be greater than the sum of its parts, with individual members each bringing a distinct talent and creative strength to the table. The growing number of performance challenges faced by most businesses—as a result of factors such as more demanding customers, technological changes, government regulation, and intensifying competition—demand speed and quality that are simply beyond the scope of what an individual can offer. V. Have You Decided to Become More Creative? (LO 5, PPT Slides 35-39) i. A great way to summarize the factors that foster creativity is via the 3Ps creativity framework. a. People is the first P.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 9: Managing Creativity in Advertising and IBP

b. The Process used in developing creative work and the Place or environment wherein the work is done are also big factors in generating creative outcomes. ii. To make yourself more creative, decide now to: a. Redefine problems to see them differently from other people b. Be the first to analyze and critique your own ideas, since we all have good ones and bad ones c. Be prepared for opposition whenever you have a really creative idea d. Recognize that it is impossible to be creative without adequate knowledge e. Recognize that too much knowledge can stifle creativity f. Find the standard, safe solution and then decide when you want to take a risk by defying it g. Keep growing and experiencing, and challenging your own comfort zone h. Believe in yourself, especially when surrounded by doubters i. Learn to cherish ambiguity, because from it comes the new ideas j. Remember that research has shown that people are most likely to be creative when doing something they love A. Polling Activity (PPT Slide 38, Time duration: 5 minutes) i. Which side of this debate do you have more affinity for? o People creative because they can produce creative results o People are creative because of the way they think. i. Responses will vary. One argument says that something is creative only when it is manifest in something tangible—then it is a “work” that can affect others. On the other hand, it is argued that creative thinking is the essence of creativity whether it is recognized in the work or not. a. You may want to split the class into groups based upon their responses and have the groups debate their positions. B. Knowledge Check (PPT Slide 39, Time duration: 5 minutes) i. Tension and conflict can be important drivers of great creative content development. a. True b. False ii. Answer: A. True—Diversity of thought nourishes creativity and enables agencies to better understand and address the target audience. From the clash of ideas, new ideas and breakthrough solutions can emerge when conflict is managed effectively. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 9: Managing Creativity in Advertising and IBP

ADDITIONAL DISCUSSION QUESTIONS The following are discussion questions that do not appear in the text, PPTs, or courseware (if courseware exists) – they are for you to use as you wish. You can assign these questions several ways: in a discussion forum in your LMS; as wholeclass discussions in person; or as a partner or group activity in class. 1. Think about a favorite artist, musician, or writer. What is unique about the way he or she represents the world? What fascinates you about the vision he or she creates? a. Answer: The thing about “liking” an artist or musician or writer is that they make you feel a certain way. The mere act of trying to express the “feeling” creativity gives a person is the real reason behind this question, which will help students appreciate why it is so hard to get consumers to express themselves about ads. A look at the shared sensibilities of great creative minds provides a constructive starting point for assessing the role of creativity in the production of great advertising. What Picasso had in common with Gandhi, Freud, Eliot, Stravinsky, Graham, and Einstein—including a strikingly exuberant self-confidence, (child-like) alertness, unconventionality, and an obsessive commitment to the work—both charms and alarms us. Creativity is the ability to consider and hold together seemingly inconsistent elements and forces, making a new connection. This ability to step outside of everyday logic, to free oneself of thinking in terms of “the way things are” or “the way things have to be,” apparently allows creative people to develop things in a way that, once we see it, makes sense, is interesting, and is thus creative. 2. Describe the conflict between the creative department and the research department. Do you think creatives are justified in their hesitancy to subject their work to advertising researchers? Why? Is science capable of judging art any more than art is capable of judging science? Explain. a. Answer: The conflict in agencies arises over the research process. The conflict between creatives and the research department centers on the difficulty of measuring advertising effectiveness. The conflict is understandable and is philosophical much like Idealism vs. Materialism or Rationalism vs. Empiricism. Whether one can judge the other is dependent on your point of view. 3. The creative director in any agency has the daunting task of channeling the creative energies of dozens of individuals, while demanding team accountability. If the expression of creativity is personal and highly individualized, how can teamwork possibly foster creativity? What might a creative director do to “allow creativity to happen” in a team environment? Explain how the saying, “The whole is greater than the sum of its parts,” fits into a discussion of creativity and teamwork.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 9: Managing Creativity in Advertising and IBP

a. Answer: The growing reliance on teamwork does not diminish the importance of individual creativity. But it does require that care is taken, particularly by creative directors, to ensure that teams are structured and operate in such a way that unique individual contributions are supported—not duplicated—by other team members. An effective team should indeed be greater than the sum of its parts, with individual members each bringing a distinct talent and creative strength to the table. Or, as the text notes, when two people on a given team think alike, “one of us is unnecessary.” Creative directors can promote creativity in a team environment as well by ensuring a diverse mix of team members, treating them well, and allowing team-based decision making to provide a safe environment for more daring, more creative outcomes.

4. Are people creative because they can produce creative results or are they creative because of the way they think? Explain. a. Answers: This can either be a written assignment that will get students to think in a complex way about creativity, or the class can be broken into two groups and assigned one position or the other for debate. One argument says that something is creative only when it is manifest in something tangible—then it is a “work” that can affect others. On the other hand, it is argued that creative thinking is the essence of creativity whether it is recognized in the work or not. 5. Self-assessment is an important part of learning and growing, and now is the perfect time to be thinking about yourself and your passion for creativity. This chapter also emphasizes the importance of coordination and collaboration in the creative process for IBP campaigns. As a class, brainstorm about the following topics using the “Ten Rules for Brilliant Brainstorming” presented in the text. How did these rules help your creativity and collaborative effort? Spend 10 minutes brainstorming each of these topics: • How many uses can you identify for baking soda? • Think about a ballpoint pen, a baseball cap, and a belt sitting on a desk. How many alternative uses can you identify for those objects? • What words do you associate with the following well-known brands: Taco Bell, Pampers, and John Deere? a. Answer: This creativity exercise will both stretch students’ individual capacity for creative thinking, but it also will underscore the chapter’s lessons about the importance (and even pitfalls) of teamwork in the creative process. In sharing their ideas with each other, students should pay attention to outcomes both in terms of quantity and quality. While someone might come up with 100 uses for baking soda; are their ideas as creative or compelling as another student that compiled half as many? The brand identification exercise should get students thinking about the importance of having a unified single message and clear understanding of a product when developing IBP strategies.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 9: Managing Creativity in Advertising and IBP

Students should reflect on whether the rules helped or hindered the creative and collaborative effort. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 10: Creative Message Strategy

Instructor Manual Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 10: Creative Message Strategy

TABLE OF CONTENTS Purpose and Perspective of the Chapter ...........................................................................1 Cengage Supplements ........................................................................................................ 2 Chapter Objectives ............................................................................................................. 2 Complete List of Chapter Activities and Assessments .................................................... 2 Key Terms ............................................................................................................................ 3 What's New in This Chapter ............................................................................................... 4 Chapter Outline ................................................................................................................... 5 Additional Discussion Questions ..................................................................................... 16

PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to show how creative message strategy is developed. The framework to consider when developing messages is to think about what you want to accomplish with your advertising and other brand messaging and how you will use advertising and IBP to achieve marketing goals and give the brand meaning. Also bear in mind that creative messages are just as important for business-tobusiness advertising as they are for consumer advertising. Creative message strategy refers to the set of objectives and methods or tactics used to create and disseminate a relevant and resonating message (such as about a product, service, experience, or brand) to customers and/or potential customers. The objective refers to what the advertiser hopes to achieve. Methods refer to how the advertiser plans to achieve the objective. Creative message strategy is important because it is where the advertising and branding battle is usually won or lost, and it helps make for effective advertising that is both relevant to consumers and their needs and resonating, in that the message works or gets through to consumers. Advertisers can choose from a wide

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 10: Creative Message Strategy

array of message strategy objectives as well as methods for implementing these objectives. Each method used to execute a message strategy objective has pros and cons. The message strategy outlines the advertiser’s goals. This chapter offers 10 essential message objectives and then discusses and illustrates the methods most commonly used to achieve them. When you see an ad, you should ask: What is this ad trying to do, and how is it trying to accomplish that?

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 10-1

Identify what creative message strategy is, and why it is important for advertisers and brands.

10-2

Examine how the 10 objectives of creative message strategy are achieved and the implications of various methods used to execute each message strategy objective.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 10: Creative Message Strategy

content you would like to emphasize in your class based on your objectives. For additional guidance, refer to the Teaching Online Guide. Chapter Objective

Activity/Assessment

Source (i.e., PPT slide, Workbook)

Duration

Icebreaker

PPT Slide 3

5-10 minutes

10-2

Discussion Activity 1

PPT Slide 12

5 minutes

10-2

Discussion Activity 1 Debrief

PPT Slide 13

5 minutes

10-2

Discussion Activity 2

PPT Slide 38

5-10 minutes

10-2

Discussion Activity 2 Debrief

PPT Slide 39

5-10 minutes

10-2

Discussion Activity 3

PPT Slide 47

10-15 minutes

10-2

Discussion Activity 3 Debrief

PPT Slide 48

5-10 minutes

10-2

Discussion Activity 4

PPT Slide 51

10-15 minutes

10-2

Discussion Activity 4 Debrief

PPT Slide 52

5-10 minutes

Knowledge Check

PPT Slide 53

5 minutes

[return to top]

KEY TERMS Comparison Advertisements Advertisements in which an advertiser makes a comparison between the firm’s brand and competitors’ brands. Copy-Test A form of copy research (evaluative research) aiming to judge the effectiveness of actual ads, for example to see if consumers get the joke in the ad or retain key knowledge about the brand from the ad. Creative Message Strategy The set of objectives and methods or tactics used to create and disseminate a relevant and resonating message (such as about a product, service, experience, or brand) to customers and potential customers. Day-After Recall (Dar) A measure where ad elements such as jingles or slogans or logos are tested for recall the day after exposure. Evoked Set The set of brands that comes to mind when a category is mentioned.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 10: Creative Message Strategy

Infomercial A long advertisement that looks like a talk show or a half-hour product demonstration. Parity Products Products with few major objective differences between brands—for example, paper towels and other low-involvement goods. Pre- And Postexposure Tests A form of marketing research that is done to measure attitude change by measuring attitudes before the person sees the ad or message and then again after they see it. Testimonial An advertisement in which an advocacy position is taken by a spokesperson. Unique Selling Proposition (USP) A promise contained in an advertisement in which the advertised brand offers a specific, unique, and relevant benefit to the consumer. [return to top]

WHAT'S NEW IN THIS CHAPTER •

New key terms: o copy-test o day-after recall o parity products o pre- and post-exposure tests

•

Examples from Cheetos, Calvin Klein, Under Armour

•

New LOs: 1. Identify what creative message strategy is, and why it is important for advertisers and brands. 2. Examine how the 10 objectives of creative message strategy are achieved and the implications of various methods used to execute each message strategy objective.

•

New support articles from: o Journal of Consumer Research o Journal of Advertising o Journal of Marketing o Journal of Advertising Research

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 10: Creative Message Strategy

o o o o

International Journal of Advertising JCIRA Journal of Marketing Research Journal of Consumer Research

II.

Creative Message Strategy (LO 1, PPT Slides 4-6) i. Creative message strategy refers to the set of objectives and methods or tactics used to create and disseminate a relevant and resonating message (such as about a product, service, experience, or brand) to customers and potential customers. a. Creative message strategy is where the advertising and branding battle is usually won or lost. b. Great messages are developed by people who can put themselves into the minds (and culture) of their audience members and anticipate their response, leading to the best outcome: selling the advertised brand. Essential Message Objectives and Strategies (LO 2, PPT Slides 7-53) A. Objective #1: Promote Brand Recall i. Since modern advertising’s earliest days, getting consumers to remember the advertised brand’s name has been a goal. ii. The very obvious idea behind this objective is that if consumers remember the brand name, and can easily recall it, they are more likely to buy it. iii. Advertisers not only want consumers to remember their name, but also want to be the first name consumers remember—they want their brand to be “top of mind.” iv. At a minimum, they want them to be in the evoked set, a small list of brand names (typically five or less) that comes to mind when a product or service category is mentioned. a. The odds of being either top of mind or in the evoked set increase with recall. v. There are two popular methods by which advertisers promote easy recall. a. Method A: Repetition 1. Repetition is a tried-and-true way of gaining easier retrieval of brand names from consumer’s memory. Advertisers do

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 10: Creative Message Strategy

this by buying a lot of ads and/or by frequently repeating the brand name within the ad itself. b. Method B: Slogans and Jingles 1. Slogans are linguistic devices that link a brand name to something memorable, by means of the slogan’s simplicity, meter, rhyme, or some other factor. c. Method C: Point-of-Purchase Branding 1. In the contemporary advertising IBP world, marketers often use point-of-purchase displays that help trigger, or cue, the brand name (and maybe an ad) from memory. That is the main idea behind point-of-purchase advertising—to provide a memory trigger. vi. Evaluation of repetition, slogans, and jingles is typically done through dayafter-recall (DAR) tests (where ad elements are tested for recall the day after exposure) and other tracking studies emphasizing recall. vii. Strategic Implications of Repetition, Slogans, and Jingles a. Extremely resistant to forgetting—the residual impact is lasting and huge. b. Efficient for consumer—consumers like simple decision rules. c. Long-term commitment/expense—achieving the positive effects of repetition requires commitment and spending. d. Competitive interference—brand name has to be linked to the repetition or consumer brand confusion can occur. e. Creative resistance—creatives hate this method as they are uncreative. B. Discussion Activity 1 (PPT Slide 12, Time duration: 5 minutes) i. Repetition is a tried-and-true way of facilitating the retrieval of brand names from a consumer’s memory. a. What are the advantages of a simple repetition strategy? 1. Answer: Repetition works for consumers—they like simple decision rules. Repetition is also extremely resistant to forgetting. C. Discussion Activity 1 Debrief (PPT Slide 13, Time duration: 5 minutes) i. What kinds of brands are most likely to use repetition strategy? a. Answer: Brands in the convenience goods category—toothpaste, laundry detergent, etc.—are most well suited to repetition due to the simple, well know features of the product categories and the highly cluttered ad environment. D. Objective #2: Link Key Attribute(s) to the Brand Name i. Sometimes advertisers want consumers to remember the brand and associate it with one or at most two attributes. a. This type of advertising is most closely identified with the unique selling proposition (USP) style, a type of ad that strongly

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 10: Creative Message Strategy

emphasizes a supposedly unique quality (or qualities) of the advertised brand. ii. Method a. USP stands for unique selling proposition. b. Ads that try to link several attributes to a brand while working to establish recall generally fail—they are too confusing and give too much information. Sometimes this type of advertising relies on a soft logic. c. Evaluation of the USP method is typically done through recall tests, communication tests, and tracking studies. iii. Strategic Implications of the USP method a. Big carryover—USP advertising is very efficient. Once this link has been firmly established, it can last a very long time. b. Very resistant—this type of advertising can be incredibly resistant to competitive challenge. c. Long-term commitment and expense—if advertisers are going to use the USP method, they have to be in it for the long haul. d. Some creative resistance—creatives tend not to hate this quite as much as simple repetition, but it does seem to get old with them pretty fast. C. Objective #3: Persuade the Consumer i. This style of advertising is about arguments. a. In this type of advertising, advertisers pose one or more (usually more) logical arguments to an engaged consumer. b. This is high-engagement advertising. c. For this general type of advertising to work as planned, the consumer has to think about what the advertiser is saying. The receiver must “get” the ad, understand the argument, and generally agree with it. ii. Method A: Reason-Why Ads a. In a reason-why ad, the advertiser reasons with the potential consumer. b. The ad points out to the consumer that there are good reasons why this brand will be satisfying and beneficial. iii. Strategic Implications of Reason-Why Ads a. Permission to buy b. Socially acceptable defense c. High level of involvement d. Potential for counterarguments e. Legal/regulatory challenges/exposure f. Some creative resistance iv. Method B: Hard-Sell Ads a. Hard-sell ads are characteristically high pressure and urgent.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 10: Creative Message Strategy

b. Phrases like “act now,” “limited time offer,” “your last chance to save,” and “one-time-only sale” are representative of this method. c. The idea is to create a sense of urgency so that consumers will act quickly. v. Strategic Implications of Hard-Sell Approaches a. “Permission to buy now” b. Socially acceptable defense c. Low credibility d. Legal/regulatory challenges/exposure e. Some creative resistance vi. Method C: Comparison Ads a. Comparison advertisements try to demonstrate a brand’s ability to satisfy consumers by comparing its features to those of competitive brands. b. Comparisons can be an effective and efficient means of communicating a large amount of information in a clear, interesting, and convincing way, or they can be extremely confusing and create a situation of information overload in which the market leader usually wins. c. The following are research conclusions about the use of comparison as a message tactic: 1. Direct comparison by a low-share brand to a high-share brand increases receivers’ attention and increases their intent to purchase the low-share brand. 2. Direct comparison by a high-share brand to a low-share brand does not attract additional attention to the high-share brand but actually helps the low-share brand. • Direct comparison is more effective if members of the target audience have not demonstrated clear brand preference in their product choices. vii. Strategic Implications of Comparison Ads a. Can help a low-share brand. b. Provides social justification for purchase of the less popular brand. c. Gives permission to buy. d. Significant legal/regulatory exposure. e. Not done much outside the United States; in much of the world, they are outlawed, not done by mutual agreement, or simply considered in such poor taste as to never be done. f. Not for established market leaders. g. These ads are sometimes evaluated as more offensive and less interesting than noncomparative ads. viii. Method D: Testimonials a. When an advocacy position is taken by a spokesperson in an advertisement, it is known as a testimonial.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 10: Creative Message Strategy

b. The value of the testimonial lies in the authoritative presentation of a brand’s attributes and benefits by the spokesperson. c. There are three versions of the testimonial message tactic. 1. The most conspicuous version is the celebrity testimonial. The belief is that a celebrity will increase an ad’s ability to attract attention and produce a desire in receivers to emulate or imitate the celebrities. 2. Expert spokespersons for a brand are viewed as having expert product knowledge. 3. There is also the average-user testimonial. The philosophy is that the target market can relate to this person. Solid theoretical support for this testimonial approach comes from reference-group theory. Simply put, the consumer’s logic in this situation is, “That person is similar to me and likes that brand; therefore, I will also like that brand.” ix. Strategic Implications of Testimonial Advertising a. Very popular people can generate popularity for the brand. b. People perceived to be very similar to the consumer, or the expert, can be powerful advocates for the brand. c. Consumers often forget who likes what, particularly when stars promote multiple brands. d. Can generate more popularity for the celebrity than for the brand. x. Method E: Demonstration a. An ad that shows how close an electric razor shaves, how green a fertilizer makes a lawn, and how easy an exercise machine is to use are all product features that can be demonstrated by using a method known simply as demonstration. “Seeing is believing” is the motto of this school of advertising. xi. Strategic Implications of Demonstration Ads a. Inherent credibility of “seeing is believing.” b. Can be used as social justification; helps the consumer defend his or her decision to buy. c. Provides clear permission to buy. d. Fairly heavy regulatory/legal exposure. xii. Method F: Infomercials a. With the infomercial message method, an advertiser buys from 5 to 60 minutes of television time and runs an information/entertainment program that is really an extended advertisement. xiii. Strategic Implications of Infomercials a. Long format gives advertisers plenty of time to make their case. b. As network ratings fall, day-parts (e.g., Sunday mornings 9–11) that were previously unaffordable have now opened up, making infomercials better deals for advertisers.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 10: Creative Message Strategy

c. Has the advantage of looking like an entertainment show. d. The genre of ads has a somewhat negative public image, which

doesn’t help build credibility or trust in the advertised brand. D. Objective #4: Affective Association: Get the Consumer to Feel Good about the Brand i. Affective (means liking) Association is fairly universal. a. Advertisers want consumers to like the brand, which is presumed to lead to preference for their brand. b. Liking is different from brand recall. Liking is measured in attitudes and expressed as a feeling rather than a thought. ii. Method A: Feel-Good Ads a. Feel-good ads work by positive affective association or predecisional distortion. b. They link the good feeling elicited by the ad with the brand or leverage the propensity for humans to distort information in the favor of liked brands without even knowing they are doing so. c. The basic idea is that by creating ads with positive feelings, consumers will associate those positive feelings with the advertised brand, leading to a higher probability of purchase. d. More recent research offers more complicated insights into the effectiveness of this ad. It seems this method tapes into a more primitive system of human response that responds quickly to stimuli, but the effect may not be as enduring as other methods. iii. Strategic Implications of Feel-Good Advertising a. Eager creatives b. May perform better in cluttered media environment c. May generate competing thoughts and connections iv. Method B: Humor Ads a. The goal of humor in advertising is to create a pleasant and memorable association with the brand in the receiver. b. However, research shows that humorous versions of advertisements are often not any more persuasive than nonhumorous versions of the same ad. v. Strategic Implications of Humor Advertising a. If the joke is integral to the copy platform, humor can be very effective; otherwise it is just free entertainment. b. Very eager creatives. c. Humorous messages may adversely affect comprehension. d. Very funny messages can wear out as quickly, leaving no one laughing, especially the advertiser. Rotating messages in an ongoing gag can help. vi. Method C: Sex Appeal Ads a. Sex ads are feeling-based advertising. But does sex sell?

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 10: Creative Message Strategy

b. In a literal sense, no, because nothing, not even sex, makes someone buy something. c. However, sexual appeals are attention getting, which affects how consumers feel about a product. d. The most important element is sex appeal ads—match the brand category to the appeal. The subtlety that “recall” which sex ads may be good ad is totally different from effectiveness. vii. Strategic Implications of Sexual-Appeal Advertising a. Higher attention levels. b. Higher arousal and affect (feelings). c. Possible poor memorability of brand due to interference at the time of exposure is possible. d. Product-theme continuity is a necessity and excludes many product categories. e. Legal, political, and regulatory exposure. E. Objective #5: Scare the Consumer into Action i. Sometimes advertisers adopt the “scare the consumer into action” objective using fear appeals. It must be used strategically to work well in advertising. ii. Method A: Fear-Appeal Ads a. A fear appeal highlights the risk of harm or other negative consequences of not using the advertised brand or not taking some recommended action. b. Traditional research indicates that intense fear appeals actually short-circuit persuasion and result in a negative-attitude effect. c. Other researchers argue that the tactic is beneficial to the advertiser. iii. Strategic Implications of Fear-Appeal Advertising a. Threat must be entirely plausible. b. There must be a completely clear and easy-to-discern link between the alleviation of the threat and the use of the advertised brand. c. Some fear ads are just ridiculous and thus have low impact. F. Discussion Activity 2 (PPT Slide 38, Time duration: 5-10 minutes) i. Advertisers use many levers to demonstrate why you should be anxious and what you can do to alleviate the anxiety. Anxiety ads are often used in the context of important social roles and the consumer’s perceived inadequacy in that role. a. Is social anxiety advertising generally effective? 1. Responses will vary. Social anxiety ads do have a high potential for success. G. Discussion Activity 2 Debrief (PPT Slide 39, Time duration: 5-10 minutes) i. What do you think this is the case? a. Answer: Responses will vary. Such ads raise the issue of an everpresent, embarrassing social threat and propose the brand as the

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 10: Creative Message Strategy

solution. There are ethical issues in that such “fear” ads could be argued to be insidious. Additionally, these types of ads are also typically aimed at women raising an issue of sexism. H. Objective #6: Change Behavior by Inducing Anxiety i. People try to avoid feeling anxious. Often people will buy or consume things to help them in their continuing struggle with anxiety and advertisers pursue a change-behavior-by-inducing-anxiety objective by playing on consumer anxieties. ii. Method A: Anxiety Ads a. Advertisers use many settings to demonstrate why you should be anxious and what you can do to alleviate the anxiety. b. Social, medical, and personal-care products frequently use anxiety ads. c. The message conveyed in anxiety ads is that (1) there is a clear and present problem, and (2) the way to avoid this problem is to buy the advertised brand. iii. Method B: Social Anxiety Ads a. The danger in these ads is negative social judgment, as opposed to physical threat. iv. Strategic Implications of Anxiety Advertising a. Can generate perception of widespread (and thus personal) threat and thus motivate action (buying and using the advertised product). b. The brand can become the solution to the ever-present problem, which results in long-term commitment to the brand. c. Efficient—a little anxiety goes a long way. d. Too much anxiety, like fear, may overwhelm the consumer, and the ad and the brand may be avoided becomes it’s just too much discomfort. e. If the anxiety-producing threat is not linked tightly enough to the brand, you may increase category demand and provide business for your competitors. f. Ethical issues: Some believe there is enough to feel anxious about without advertisers adding more. g. Typically targeted at women—critics claim inherent unfairness and sexism. G. Objective #7: Define the Brand Image i. Images are the most apparent and most prominently associated characteristics of a brand. They are the thing consumers most remember or associate with a brand. ii. Method A: Image Ads a. Image advertising often has a complete absence of hard product information, or it is almost exclusively visual. b. They may use images to point to a brand quality or attribute or evoke a certain set of feelings about the brand.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 10: Creative Message Strategy

c. Evaluation of image ads is typically done through qualitative methods, and sometimes associative tests are used, along with attribute-related attitude tracking studies done over time. iii. Strategic Implications of Image Advertising a. Generally, less counterarguments generated by consumers. b. Relatively little or no legal/regulatory exposure. c. Iconic potential. d. Very common, can get lost in clutter. e. Can be rejected if advertised image rings untrue or poorly matches what the consumer currently thinks of the brand, particularly through direct experience. f. Don’t tend to copy-test well. g. Managerial resistance. h. Creatives love the technique. H. Objective #8: Give the Brand the Desired Social Meaning i. Objects have social and cultural meanings. Advertisers situate the brand socially by creating an ad that places a brand in a socially-desirable context. ii. Method A: Slice-of-Life Ads a. By placing a brand in a social context, it gains social meaning by association. b. Slice-of-life advertisements depict a usage situation for the brand. iii. Strategic Implications of Slice-of-Life Ads a. Generally, fewer counterarguments made by the consumers. b. Legal/regulatory advantages. Advertisers’ attorneys like pictures more than words because determining the truth or falsity of a picture is much tougher than words. c. Iconic potential. d. Creation of ad-social/realities. You can create the desired social worlds for your brand on the page. e. Fairly common, can get lost in clutter. f. Don’t tend to copy-test well. g. Creative love these ads. iv. Method B: Branded Entertainment: Product Placement a. We have moved, over the years, from product placements in films and TV shows to a more and more broad-spectrum and integrated set of methods for bring brand messages to consumers. b. This can be accomplished with product (really brand) placement in a film or TV show, or the advertiser can create a Web film or ads and trailers promoting all of the above. v. Strategic Implications of Branded Entertainment a. Low counterargument, if placement is not too obvious. b. May reduce defensive measures by consumers, such as source discounting.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 10: Creative Message Strategy

c. May increase consumer estimates about how many other people

use the brand. d. Perceived cost advantage over network TV ads. e. Non-standardized rate structure—hard to price these deals. f. May not be very effective for high involvement categories. g. Science is unclear as to how well this technique works. I. Objective #9: Leverage Social Disruption and Cultural Contradictions i. The strategy here is to identify areas of social and cultural tension and create a message that suggests the brand is the only one that “gets it” and is therefore, the most relevant to the movement(s). ii. Method: Tie the Brand to Social/Cultural Movement a. This is a very sophisticated and typically difficult method. b. The reason it is difficult is not in the execution but being culturally attuned enough to know in the present what various target marketers are conflicted about, and how to offer a brand as a solution, even a partial one. J. Discussion Activity 3 (PPT Slide 47, Time duration: 10-15 minutes) i. Most advertisers tend to ignore or even deny the existence of major social disruptions, but some really great brands have used advertising to successfully leverage social disruption. a. Think about something that is disruptive in your society right now. How would you use it to make an effective brand advertising and brand promotion? 1. Responses will vary. The challenge as an instructor is to try to encourage students to think of true “social” movements rather than technology products as being the only “disruptive” thing they can think of. Technology is not nearly as disruptive as social movements (e.g., massive disproportionate distribution of wealth into the hands of a very few). K. Discussion Activity 3 Debrief (PPT Slide 48, Time duration: 5-10 minutes) i. What are some of the recent examples you’ve seen of advertising that effectively leverages social disruption? a. Examples will vary. While some may not be for products or service a person may pay for, there are some advertisements for politicians, who use current events to promote their stance or put down their opponents. There are also ads for businesses hiring people who have had rough backgrounds and find it difficult to find a job. L. Objective #10: Transform Consumption Experiences i. We have all had the sensation that something was really good but it wasn’t one particular thing we could point to. ii. Advertisers try to provide anticipation or familiarity, bundled up in a positive memory of an advertisement, activated during the consumption experience itself.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 10: Creative Message Strategy

iii. The advertising or promotional experience is thus said to have transformed the actual consumption experience, both at the time of consumption and in the consumer’s memory. iv. Method: Transformational Ads a. The idea behind transformational advertising is that it can actually make the consumption experience better. b. Transformational advertising messages attempt to create a brand feeling, image, and mood that are activated when the consumer uses the product or service. v. Strategic Implications of Transformational Advertising a. Can be extremely powerful due to the merging of the ad and the experience. b. Fosters long-term commitment. c. Can ring absolutely false and hurt the brand. d. Ethical issues—this manipulation of experience is unethical. M. Discussion Activity 4 (PPT Slide 51, Time duration: 10-15 minutes) i. When you see an ad, you should ask: What is this ad trying to do, and how is it trying to accomplish that? a. Think of a major purchase you have made recently. Which of the 10 message strategy objectives do you think were the most effective in influencing your purchase decision? 1. Answer: Responses will vary. This is a good way for students to see how the message strategy objectives work and to think about which ones work best for a particular product category, as well as how it is affecting brand choice in that product category. N. Discussion Activity 4 Debrief (PPT Slide 52, Time duration: 5-10 minutes) i. Did the competing brand use the same or a different messaging strategy? a. Responses will vary. Similarities can surely be seen – vehicles showing trucks or SUVs driving offroad without getting stuck and reaching high peaks of a mountain; Verizon Wireless and T-Mobile often show maps of cell coverage to insinuate that they have a wider range of coverage than the competitor, and some beer commercials will focus on the low carb count in their specialized beer products as compared to the standard beer of a competitor. Laundry detergent companies often do the same, as well, showing how their product will get stains out better than a competitor. O. Knowledge Check (PPT Slide 53, Time duration: 5 minutes) i. Think about each of the brand pairs listed below. Is comparison advertising appropriate in each situation? If so, which brand from each pair would be in the most appropriate position to use comparisons? a. Chevy—Ford b. Nuprin—Tylenol c. McDonald’s—Wendy’s

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 10: Creative Message Strategy

ii.

d. Chanel’s Coco Chanel—Calvin Klein’s Ck One Answers: a. Both—Chevy and Ford are long-time rivals in this category, so either could be expected to use comparatives. b. Nuprin—As a low-share brand, it could be valuable for Nuprin to use comparatives versus Tylenol. As the market leader, Tylenol would have absolutely no reason to make explicit comparisons to Nuprin. c. Wendy’s—Fast-food restaurants can have many differentiating features that may form the basis for a comparative campaign. With McDonald’s the market leader, Wendy’s would more likely choose the comparative approach d. Neither—Colognes must be sold on an emotional basis, so this would not be a good category for comparative advertising.

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Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 10: Creative Message Strategy

2. Discuss which method or methods would be best to execute the following objectives and why this method might work for each objective. • Recall a brand name • Link a key attribute to a brand • Persuade a consumer to make a purchase • Raise a consumer’s preferences for one brand over another through affective association • Enrich the consumption experience • Situate a brand in a desirable social context • Define brand image a. Answer: Advertisers use any number of methods to achieve their objectives. To get consumers to recall a brand name, advertisers use repetition, slogans, and jingles. When the advertiser’s objective is to link a key attribute to a brand, USP ads emphasizing unique brand qualities are employed. If the goal is to persuade a consumer to make a purchase, reason-why ads, hard-sell ads, comparison ads, testimonials, demonstrations, and infomercials are all viable options. Feel-good ads, humorous ads, and sex-appeal ads can raise a consumer’s preferences for one brand over another through affective association. Fear-appeal ads, judiciously used, can motivate purchases, as can ads that play on other anxieties. Transformational ads attempt to enrich the consumption experience. With slice-of-life ads, product placement, and short digital films, the goal is to situate a brand in a desirable social context. Finally, ads that primarily use visuals work to define the brand image. 3. What are the advantages of a simple repetition strategy? What kinds of brands are most likely to use it? Is a repetition strategy always effect? a. Answer: Repetition works for consumers. They like simple decision rules. The more accessible (easier-to-remember) brand names are retrieved first and fastest from memory, making them (all else being equal) more likely to end up in the shopping cart. Getting into the consumer’s evoked set gets you close to the actual purchase and achieving the top of mind gets you even closer. Brands in the convenience goods category—toothpaste, laundry detergent, etc.—are most well suited to repetition due to the simple, well known features of the product categories and the highly cluttered ad environment. There are plenty of times when consumers remember one brand but then buy another. They may actually dislike the most easily remembered brand and never buy it. This type of advertising plays a pure probability game—being easily recalled tilts the odds of being purchased in favor of the advertisers willing to pay for the recall that repetition buys.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 10: Creative Message Strategy

4. Comparison advertisements are another form of advertising designed to persuade the

consumer. Comparison ads try to demonstrate a brand’s ability to satisfy consumers by comparing a product’s features to those of competing brands. Review the dos and don’ts of comparison advertising and then think about each of the brand pairs listed below. Discuss whether you think comparison ads would be a good choice for the product category in question, and if so, which brand in the pair would be in the most appropriate position to use comparisons: Coors Light versus Bud Light beer, Nuprin versus Tylenol pain reliever, Wendy’s versus McDonald’s hamburgers. a. Answer: The many specific features that could be built into a pickup truck would make this a logical category for comparative advertising. Chevy and Ford are long-time rivals in this category, so either could be expected to use comparatives. Because it is hard to come up with concrete performance features that distinguish one light beer from the next, this category is not a strong candidate for comparatives. As a low-share brand, it could be valuable for Nuprin to use comparatives versus Tylenol. As the market leader, Tylenol would have absolutely no reason to make explicit comparisons to Nuprin. Colognes must be sold on an emotional basis, so this would not be a good category for comparative advertising. Finally, fast-food restaurants can have many differentiating features that may form the basis for a comparative campaign. With McDonald’s the market leader, Wendy’s would more likely choose the comparative approach.

5. Think of a major purchase you have made recently. Which of the 10 message strategy objectives do you think were the most effective in influencing your purchase decision? Explain. a. Answer: Answers will vary. This is a good way for students to see how the message strategy objectives work and to think about which ones work best for a particular product category and effecting brand choice in that product category. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 11: Executing the Creative

Instructor Manual

Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 11: Executing the Creative

TABLE OF CONTENTS Purpose and Perspective of the Chapter ...........................................................................1 Cengage Supplements .........................................................................................................1 Chapter Objectives ............................................................................................................. 2 Complete List of Chapter Activities and Assessments .................................................... 2 Key Terms ........................................................................................................................... 3 What's New in This Chapter ............................................................................................... 7 Chapter Outline ................................................................................................................... 7 Additional Discussion Questions ..................................................................................... 20

PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to understand that the heart and soul of advertising is the creative, which shapes the meaning of the brand and brings it to life. Firms use the creative process to try to stimulate and energize the creative effort in advertising and integrated brand promotion (IBP). Using specific message objectives and strategies and various methods associated with each of these efforts come together to bring the creative to life.

CENGAGE SUPPLEMENTS The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center. •

Transition Guide (provides information about what is new from edition to edition)

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 11: Executing the Creative

• • • •

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 11-1

Identify the main members of a creative team and how the creative brief guides their efforts.

11-2

Detail the elements of copywriting for print media, including the headline, subhead, and body copy.

11-3

Detail the elements of copywriting for television and video.

11-4

Detail the elements of copywriting for radio and podcast advertising.

11-5

Describe the common copywriting approaches for digital, interactive, and mobile ads.

11-6

Identify the role of slogans/taglines in copywriting.

11-7

Identify the components of art direction that are essential in creative execution of print ads.

11-8

Describe the production process in creating a television commercial.

Activity/Assessment Icebreaker Discussion Activity 1

Source (i.e., PPT slide, Workbook) PPT Slide 3 PPT Slide 29

Duration 5-10 minutes 5 minutes

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 11: Executing the Creative

11-6 11-7 11-7 11-7 11-7

Discussion Activity 1 Debrief Discussion Activity 2 Discussion Activity 2 Debrief Written Reflection Activity Written Reflection Activity Debrief Knowledge Check

PPT Slide 30 PPT Slide 44 PPT Slide 45 PPT Slide 47 PPT Slide 48

10-15 minutes 5-10 minutes 5 min 20 minutes 20 minutes

PPT Slide 53

5 minutes

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KEY TERMS Axis A line, real or imagined, that runs through an advertisement and from which the elements in the ad flare out. Balance An orderliness and compatibility of presentation in an advertisement. Blackletter A style patterned after monastic hand-drawn letters characterized by the ornate design of the letters. Also called gothic. Blocking In the production stage of advertising where the director works with the oncamera talent and camera operators to practice the positioning and movement planned for the ad. Brand Manager A job title for the team members (or professional) responsible for developing and adapting the brand strategy for the target market. Comp A polished version of an ad. Consumer-generated content (CGC) Advertisements and other content related to products or brands, created in part or completely by their end users. Copywriting The process of expressing the value and benefits a brand has to offer, via written or verbal descriptions. Creative Brief A document that outlines and channels an essential creative idea and objective guiding the creative team. Creative Team The copywriters and art directors responsible for coming up with the creative concept for an advertising campaign.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 11: Executing the Creative

Design The structure (and the plan behind the structure) for the aesthetic and stylistic aspects of a print advertisement. Dialogue Advertising copy that delivers the selling points of a message to the audience through a character or characters in the ad. Direct Response Copy Advertising copy that highlights the urgency of acting immediately. Ephemeral The content lasts for just a short time. Formal Balance A symmetrical presentation in an ad—every component on one side of an imaginary vertical line is repeated in approximate size and shape on the other side of the imaginary line. Hashtag A word or words followed by a # often used on social media to help organize and/or identify online content on a certain topic. Headline The leading sentence(s), usually at the top or bottom of an ad, that attracts attention, communicates a key selling point, or achieves brand identification. Illustration In the context of advertising, the drawing, painting, photography, or computer-generated art that forms the picture in an advertisement. Informal Balance An asymmetrical presentation in an ad—nonsimilar sizes and shapes are optically weighed. Layout A drawing of a proposed print advertisement, showing where all the elements in the ad are positioned. Long-Copy Email Copy written for an email message designed to offer the receiver incentives to buy the product and usually offers a link to a short-copy landing page. Long-Copy Landing Page Website copy designed to sell a product directly; the copy might equal the equivalent of a four- to eight-page letter to a potential customer. Media Planner An advertising agency (although on occasion an in-house person) with expertise in buying and scheduling media for ad placements. Narrative Advertising copy that simply displays a series of statements about a brand. Order The visual elements in an ad that affect the reader’s “gaze motion” through the ad.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 11: Executing the Creative

Parallel Layout Structure A print ad design that employs art on the right-hand side of the page and repeats the art on the left-hand side. Pica A measure of the width or depth of lines of type. Point A measure of the size of type in height. Pop-Up/Pop-Under Ad An Internet advertisement that appears as a website page is loading or after a page has loaded. Pop-Up/Pop-Under Copy Copy to accompany pop-up/pop-under digital/interactive ads. Prelight In the production stage, which involves setting up lighting or identifying times for the best natural lighting to ensure that the shooting day runs smoothly. Preproduction The stage in the television production process in which the advertiser and advertising agency (or in-house agency staff) carefully work out the precise details of how the creative planning behind an ad can best be brought to life with the opportunities offered by television. Principles Of Design General rules governing the elements within a print advertisement and the arrangement of and relationship between these elements. Production Stage/Shoot The point at which the storyboard and script for a television ad come to life and are filmed. Also called the shoot. Proportion The size and tonal relationships between different elements in an advertisement. Roman The most popular category of type because of its legibility. Rough Layout The second stage of the ad layout process, in which the headline is lettered in and the elements of the ad are further refined. Sans Serif A category of type that includes typefaces with no small lines crossing the ends of the main strokes. Script The written version of an ad; it specifies the coordination of the copy elements with the video scenes.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 11: Executing the Creative

Serif The small lines that cross the ends of the main strokes in type; also the name for the category of type that has this characteristic. Short-Copy Landing Page Digital/interactive copy; a brand offer that may be accessed by a consumer through key word search and has the length and look of a magazine ad. Slogan/Tagline A short phrase used in part to help establish an image, identity, or position for a brand or an organization, but mostly used to increase memorability. Social Media Copy Language in social media communications that highlights a brand name or brand features. Storyboard A frame-by-frame sketch or photo sequence depicting, in sequence, the visual scenes and copy that will be used in an advertisement. Straight-Line Copy Advertising copy that explains in straightforward terms why a reader will benefit from use of a product or service. Subhead In an advertisement, a few words or a short sentence that usually appears above or below the headline and includes important brand information not included in the headline. Teaser Email Copy written for an email message that is a short message designed to drive readers to a long-copy landing page where they can order the brand directly. Three-Point Layout Structure A print ad design that establishes three elements in an ad as dominant forces. Thumbnails The rough first drafts of an ad layout, about one-quarter the size of the finished ad. Type Font A basic set of typeface letters. Unity The creation of harmony among the diverse components of an advertisement: headline, subhead, body copy, and illustration. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 11: Executing the Creative

WHAT'S NEW IN THIS CHAPTER •

New key term o brand manager

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New slogan examples

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New examples by Kenzo, Fenty Beauty, McDonald’s, Chirp

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Separated radio and tv copyediting

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[return to top] CHAPTER OUTLINE The following outline organizes activities (including any existing discussion questions in PowerPoints or other supplements) and assessments by chapter (and therefore by topic), so that you can see how all the content relates to the topics covered in the text. I. The Creative Team and the Creative Brief (LO 1, PPT Slides 5-9) A. The Creative Team i. The contemporary creative team includes: an art director, a copywriter, a media planner and/or an account planner. a. The creative team is responsible for coming up with the creative brief—the unique creative thought behind a campaign. b. During this process, copywriters, in addition to their role in creating the “language” of the messages, also sometimes suggest the idea for the visuals. c. Likewise, art directors sometimes come up with the headline or tagline.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 11: Executing the Creative

d. Media planners convey what is possible through the ever-expanding media choices, and account planners try to keep the profile of the target consumer in the team’s mind. B. Copywriters and Art Directors i. Copywriting is the process of crafting the meaning of a brand through words. a. An astute advertiser will go to great lengths to provide copywriters with as much information as possible about the objectives for a particular advertising effort. b. The responsibility for keeping copywriters informed lies with the client’s brand managers, filtered through the account executives and creative directors in the ad agency or brand communication firm. ii. The creative brief serves as the guide used during the copywriting process to specify the message elements that must be coordinated during the preparation of copy. a. These elements include main brand claims, creative devices, media that will be used, special creative needs a brand might have, and what we want the message recipients to think once they receive the message. b. Some of the elements considered in devising a creative brief are: 1. The single most important thought you want a member of the target market to take away from the advertisement 2. The product features to be emphasized 3. The benefits a user receives from these features 4.The media chosen for transmitting the information and the length of time the advertisement will run 5. The suggested mood or tone for the ad or promotion 6.The production budget for the ad or brand promotion II. Copywriting for Print Advertising (LO 2, PPT Slides 10-13) i. The first step in the copy development process is deciding how to use (or not use) the three separate components of print copy: the headline, the subhead, and the body copy. A. The Headline i. The headline in an advertisement is the leading sentence(s), usually at the top or bottom of the ad, that attracts attention, communicates a key selling point, or achieves brand identification. B. The Subhead i. A subhead consists of a few words or a short sentence and usually appears above or below the headline. It includes important brand information not included in the headline. C. The Body Copy i. Body copy is the textual component of an advertisement and tells a more complete story of a brand.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 11: Executing the Creative

III.

ii. Effective body copy is written so that it takes advantage of and reinforces the headline and subhead, is compatible with and gains strength from the visual, and is interesting to the reader. iii. There are several standard approaches for preparing body copy: a. Straight-line copy explains in straightforward terms why a reader will benefit from use of a brand. b. Body copy that uses dialogue delivers the selling points of a message to the audience through a character or characters in the ad. Dialogue can also depict two people in the ad having a conversation, a technique often used in slice-of-life messages. c. A testimonial uses dialogue as if the spokesperson is having a onesided conversation with the reader through the body copy. d. Narrative is a method for preparing body copy that simply displays a series of statements about a brand. A person may or may not be portrayed as delivering the copy. e. Direct response copy is, in many ways, the least complex of copy techniques. In writing this, the copywriter is trying to highlight the urgency of acting immediately. Copywriting for Television and Video (LO 3, PPT Slides 14-16) i. Relative to the print media, television presents totally different challenges for a copywriter. a. The audio and visual capabilities of television and video provide different opportunities for a copywriter. b. Compared to print media, however, video media have inherent limitations for a copywriter. c. In the print media, a copywriter can write longer and more involved copy to better communicate complex brand features. d. The printed page allows a reader to dwell on the copy and process the information at a personalized, comfortable rate. A. Writing Copy for Television (Video) i. The opportunities inherent to television as an advertising medium represent challenges for the copywriter as well. a. First, the copywriter must remember that words do not stand alone. b. Visuals, special effects, and sound techniques may ultimately convey a message far better than the cleverest turn of phrase. c. Second, television commercials represent a difficult timing challenge for the copywriter. It is necessary for the copy to be precisely coordinated with the visuals. d. The copywriter not only has to fulfill all the responsibilities of proper information inclusion (based on creative platform and strategy decisions) but also has to carefully fit all the information within, between, and around the display.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 11: Executing the Creative

IV.

e. To make sure this coordination is precise, the copywriter, producer, and director assigned to a television advertisement work closely together to make sure the copy supports and enhances the video element. f. The road map for this coordination effort is known as a storyboard. A storyboard is an important shot-by-important-shot sketch depicting in sequence the visual scenes and copy that will be used in the advertisement. B. Guidelines for Writing Television Copy i. Use the video. ii. Support the video. iii. Coordinate the audio with the video. iv. Sell the brand as well as entertain the audience. v. Be flexible. vi. Use copy judiciously. vii. Reflect the brand personality and image. viii. Build campaigns. Writing Copy for Radio and Podcast Advertising (LO 4, PPT Slides 17-19) i. Some writers consider radio the ultimate forum for copywriting creativity because it can stimulate “a theater of the mind,” which allows a copywriter to create images and moods for audiences that transcend those created in any other medium. ii. Despite these creative opportunities, the drawbacks of this medium should not be underestimated. a. Few radio listeners ever actively listen to radio programming, much less the commercial interruptions. b. Radio has been labeled by some as “audio wallpaper”—radio is used as a filler or unobtrusive accompaniment to reading, driving, household chores, or homework. A. Guidelines for Writing Radio Copy i. The unique opportunities and challenges of the radio medium warrant a set of guidelines for the copywriter to increase the probability of effective communication. The following are a few suggestions for writing effective radio copy: a. Capture attention and get to the point early. b. Use common, familiar language. c. Use short words and sentences. d. Stimulate the imagination. e. Repeat the brand name. f. Stress the main selling point or points. g. Use sound and music with care. h. Tailor the copy to the time, place, and specific audience. Copywriting for Digital/Interactive Media (LO 5, PPT Slides 20-23)

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 11: Executing the Creative

VI.

In digital and interactive media, audience has a significantly different meaning than it does in traditional one-way (noninteractive) media. a. Audience members often seek out the ads or other online IBP material, rather than the other way around, and they are doing it in much smaller formats like a computer screen or smartphone display. b. Digital and interactive media copywriters are trying to meet the demands of vastly different audiences and often real-time media creation (as in tweets). c. The basic principles of good print and broadcast copywriting just discussed generally apply. d. But the copy should assume a more active and engaged audience and has to adapt the creative brief objectives to the smaller format and potentially real-time challenges of the reception environment. A. Common Copywriting Approaches to Digital/Interactive Advertising i. A long-copy landing page ii. A short-copy landing page iii. A long-copy email iv. A teaser email v. A pop-up/pop-under ad vi. Social media copy Slogans/Taglines (LO 6, PPT Slides 24-30) i. Copywriters are often asked to come up with a good slogan or tagline for a product or service. a. A slogan or tagline is a short phrase that is in part used to help establish an image, identity, or position for a brand or an organization, but is most often used to increase memorability of the key benefit of a brand. b. A good slogan can serve several positive purposes for a brand or a firm: 1. A slogan can be an integral part of a brand’s image and personality. 2. If a slogan is carefully and consistently developed over time, it can act as shorthand identification for the brand and provide information on important brand benefits. 3. A good slogan can provide continuity across media and between advertising campaigns. A. The Copy Approval Process i. The final step in copywriting is getting the copy approved. a. The challenge at this stage is to keep the creative potency of the copy intact. The copy approval process usually begins within the creative department at the advertising agency. b. A copywriter submits a draft copy to either a senior writer or creative director, or both.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 11: Executing the Creative

c. From there, the redrafted copy is forwarded to the account management team within the agency. d. A main concern at this level is to evaluate the copy on legal grounds. e. After the account management team has made recommendations, a meeting is likely held to present the copy to the client’s product category manager, brand manager, and/or marketing staff. Inevitably, the client feels compelled to make recommendations for altering the copy. f. Depending on the assignment, the client, and the traditions of the agency, the creative team may also decide to turn to various forms of copy research to resolve any differences. g. Typically, copy research is either developmental or evaluative. 1. Developmental copy research can actually help copywriters at the early stages of copy development by providing audience interpretations and reactions to the proposed copy. 2. Evaluative copy research is used to judge the copy after it has been produced. Here, the audience expresses its approval or disapproval of the copy used in an ad. h. Finally, the copy should always be submitted for final approval to the advertiser’s senior executives. Often, these executives have little interest in evaluating advertising and they leave this responsibility to middle managers. B. Discussion Activity 1 (PPT Slide 29, Time duration: 5 minutes) i. What role does an effective slogan play in promoting a brand’s image and personality? a. Done well, slogans can have a substantial impact on the image and personality of a brand or product. Also, if it is developed in a careful and consistent manner, a good slogan becomes a sort of shorthand for a brand over time. It also can offer continuity across different media and between advertising campaigns—used as a headline in a print ad, for instance, and as the tagline for radio and television spots. C. Discussion Activity 1 Debrief (PPT Slide 30; Time duration: 10-15 minutes) i. Copywriters are often asked to develop slogans for a product or service. a. Come up with a new slogan for each of the following historical brands: 1. Apple 2. Gillette 3. Taco Bell b. Answer: Answers will vary. Writing an effective slogan is no easy feat. As students attempt to build a better slogan, so to speak, for some of the popular brands offered as examples in the chapter, they are likely to quickly realize how challenging this type of

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 11: Executing the Creative

VII.

copywriting can be—and how ingrained long-standing slogans are in our consumer minds. Art Direction (LO 7, PPT Slides 31-43) i. This section focusses on the process of how the visual elements of an advertisement and IBP materials are developed. Advertising has become mostly visual. ii. There are several reasons for the rise of the visual in advertising. a. Improved technologies, which facilitate better and more affordable illustration and the opportunity to rotate visuals nearly instantaneously in digital media b. The inherent advantage of pictures to quickly demonstrate the values of a brand c. The ability to build brand “images” through visuals d. The legal advantage of pictures over words in that the truth or falsity of a picture is almost impossible to determine e. The widely held belief that pictures, although just as cultural as words, permit a certain type of global portability that words do not f. Pictures allow advertisers to place brands in desired social contexts, thus transferring important social meaning to them A. Illustration, Design, and Layout i. The three primary visual elements of a print or digital ad are: illustration, design, and layout. An advertiser must appreciate the technical aspects of coordinating the visual elements in an ad with the mechanics of the layout and ultimately with the procedures for print production or Web placement. ii. Illustration a. Illustration is the actual drawing, painting, photography, or computer-generated art that forms the picture in an advertisement. Illustration is the look of the ad. b. A primary role of illustration, along with the headline, is to attract and hold attention. Perhaps the most straightforward illustration is one that simply displays brand features, benefits, or both. Brand image is projected through illustration. iii. Design a. Design is “the structure itself and the plan behind that structure” for the aesthetic and stylistic aspects of a print advertisement. b. Design represents the effort on the part of the creative team to physically arrange all the components of a printed or digital/interactive advertisement in such a way that order and beauty are achieved. iv. Principles of Design a. Principles of design govern how a print advertisement should be prepared.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 11: Executing the Creative

b. The principles of design relate to each element within an advertisement and to the arrangement of and relationship between elements as a whole. v. Balance a. Balance in an ad is an orderliness and compatibility of presentation. Balance can be either formal or informal. b. Formal balance emphasizes symmetrical presentation and creates a mood of seriousness and directness. c. Informal balance emphasizes asymmetry. Informal balance in an ad should not be interpreted as imbalance. Rather, components of different sizes, shapes, and colors are arranged in a more complex relationship providing asymmetrical balance to an ad and a visually intriguing presentation to the viewer. vi. Proportion a. Proportion has to do with the size and tonal relationships between different elements in an advertisement. Specifically, the width, depth, size, and space between elements in an ad affect proportion. vii. Order a. Order in an advertisement is also referred to as a sequence or, in terms of its effects on the reader, “gaze motion.” The designer’s goal is to establish a relationship among elements that leads the reader through the ad in some controlled fashion. b. Order also can induce a reader to jump from one space in the ad to another, creating a sense of action. viii. Unity a. Ensuring that the elements of an advertisement are tied together and appear to be related is the purpose of unity. b. Considered the most important of the design principles, unity results in harmony among the diverse components of an advertisement: headline, subhead, body copy, and illustration. c. Several design techniques contribute to unity. 1. The border surrounding an ad keeps the ad elements from spilling over into other ads or into the printed matter next to the ad. 2. White space can be dramatic and powerful and draw the receivers’ attention to the most critical elements of an ad. 3. The axis is a line, real or imagined, that runs through an ad and from which the elements in the advertisement flare out. A single ad may have one, two, or even three axes running vertically and horizontally. 4. A three-point layout structure establishes three elements in the ad as dominant forces. The uneven number of prominent elements is critical to creating a gaze motion in the viewer.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 11: Executing the Creative

5. Parallel layout structure employs art on the right-hand side of the page and repeats the art on the left-hand side. ix. Emphasis a. At some point in the decision-making process, someone needs to decide which major component—the headline, subhead, body copy, or illustration—will be emphasized. b. The key to good design relative to emphasis is that one item is the primary but not the only focus in an ad. x. Layout a. A layout is a drawing or digital rendering of a proposed print advertisement, showing where all the elements in the ad are positioned. b. The different stages of layout development include thumbnails, rough layout, and comprehensive. xi. Thumbnails a. Thumbnails, or thumbnail sketches, are the first drafts of advertising layout. It is likely that the art director will produce several sketches in an attempt to work out the general presentation of the ad. xii. Rough Layout a. The second stage is the rough layout, in which greater detail is worked into the design. b. A rough layout is done in the actual size of the proposed ad and is usually created with a computer layout program. xiii. Comprehensive a. The comprehensive layout, or comp, is a polished version of the ad—but not the final version. b. Comps make it very easy for the client to imagine (and approve) what the ad will look like when it is published. c. The client will make one last approval of the digital file before it is sent to the printer. xiv. Typography in Print Production a. The issues associated with typography have to do with the typeface chosen for headlines, subheads, and body copy, as well as the various size components of the type (height, width, and running length). xv. Categories of Type a. Typefaces have distinct personalities and each can communicate a different mood and image. b. A type font is a basic set of typeface letters. There are six basic typeface groups: blackletter, roman, script, serif, sans serif, and miscellaneous. xvi. Type Measurement a. There are two elements of type size.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 11: Executing the Creative

1. 2.

Point refers to the size of type in height. Picas measure the width of lines. A pica is 12 points wide, and each pica measures about one-sixth of an inch.

xvii. Readability a. It is critical in choosing type to consider readability. Type should facilitate the communication process. The following are some traditional recommendations when deciding what type to use: 1. Use capitals and lowercase, NOT ALL CAPITALS. 2. Arrange letters from left to right, not up and down. 3. Run lines of type horizontally, not vertically. 4. Use even spacing between letters and words. B. Art Direction and Production in Digital/Interactive Mobile Media i. Cyberspace is its own space and medium. ii. The cyber media are fundamentally different in the way the audience comes to them, navigates them, and responds to them. This difference presents one of the real challenges of electronic advertising. iii. The Web is not print or television: It is electronic and fluid and must be thought of in this way. In terms of design, this means trying to understand why people come to various sites, who they are, what they are looking for, what they expect to encounter, and what they expect in return for their very valuable click. iv. One of the most valuable lessons out there right now is the case of consumer-generated content (CGC): where people are making their own ads for their favorite brands. D. Discussion Activity 2 (PPT Slide 44, Time duration: 5-10 minutes) i. Digital/interactive media present a new and unique challenge for both the copywriting and art direction processes. a. When you visit a website, does it seem like there is “copy” or “design” at the site? 1. Answer: Responses will vary. Here, students should rely on the guidelines for writing print copy and the guidelines for good design presented in the chapter. It is likely that websites will not measure up particularly well because these message components are “hybridized” for digital/interactive application. b. What about when you use your favorite social networking sites? 1. Answer: Responses will vary. Students may have differing opinions depending on which social media sites they use. Facebook and Twitter may be seen has having more copy or design setups when compared to other sites such as Snapchat or Instagram. E. Discussion Activity 2 Debrief (PPT Slide 45, Time duration: 5 minutes) i. Do Twitter, Facebook, or YouTube show evidence of persuasive copy or design principles?

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 11: Executing the Creative

a. Responses will vary. Encourage students to back up their thoughts based on the content studies so far. F. Art Direction and Production in Television Advertising and Video i. The Creative Team in Television Advertising a. At some point, individuals who actually shoot the film or the tape are brought in to execute the copywriter’s and art director’s concepts. At this point, the creative process becomes intensely collaborative: 1. The film director applies his or her craft and is responsible for the actual production. 2. The creative team (i.e., the art director, copywriter, media director, and account planner) rarely relinquishes control of the project, even though the film director may prefer that. 3. Someone has to be in charge on the set, and that is usually the chief creative on site. ii. Creative Guidelines for Television Advertising a. Use an attention-getting and relevant opening. b. Emphasize the visual. c. Coordinate the audio with the visual. d. Persuade as well as entertain. e. Show the brand. G. Written Reflection Activity (PPT Slide 47; Time duration 20 minutes) i. Some ads are amateurish, poorly written, even downright annoying— especially cyber ads created for the Web. a. Identify a digital ad that you consider to be ineffective or annoying and offer a detailed critique on why the ad’s copy and illustration left you with a negative impression and failed to stimulate you to action. 1. Answer: Although answers will vary, students should base their critiques on the principles of digital advertising found in the chapter recognizing that digital/interactive ads are merely hybrids between print and broadcasting advertisements. H. Written Reflection Activity Debrief (PPT 48; Time duration: 20 minutes) i. Which basic principles of good copywriting are missing from the ad you chose? a. Responses will vary, but whether in the form of email, pop-ups, or social media, digital advertisements should be interactive, customizable, contextual, entertaining, playable, and useful. Copy for digital ads should adapt to smaller size restrictions while assuming active audience participation. Basic principles of good print and broadcast copywriting generally apply to digital media; typical copywriting mistakes include vagueness, wordiness, triteness, bad taste, laundry lists, and creativity for creativity's sake.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 11: Executing the Creative

VIII. The Production Process in Television Advertising (LO 8, PPT Slides 49-53) i. The television production process can best be understood by identifying the activities that take place before, during, and after the actual production of an ad. These stages are referred to as preproduction, production, and postproduction, respectively. A. Preproduction i. The preproduction stage is that part of the television production process in which the advertiser and the advertising agency carefully work out the precise details of how the creative planning behind an ad can best be brought to life with the opportunities offered by television. ii. Storyboard and Script Approval a. The preproduction stage begins with storyboard and script approval. b. A storyboard is a shot-by-shot sketch depicting, in sequence, the visual scenes and copy that will be used in an advertisement. c. A script is the written version of an ad; it specifies the coordination of the copy elements with the video scenes. iii. Budget Approval a. The producer needs to work carefully with the creative team and the advertiser to estimate the approximate cost of the shoot, including production staging, location costs, actors, technical requirements, staffing, and a multitude of other considerations. b. It is essential that these discussions be as detailed and comprehensive as possible, because it is from this budget discussion that the producer will evaluate candidates for the directing role and solicit bids from production houses to handle the job. iv. Assessment of Directors, Editorial Houses, Music Suppliers a. A producer has dozens (if not hundreds) of directors, postproduction editorial houses, and music suppliers from which to choose. b. An assessment of those well suited to the task takes place early in the preproduction process. c. The combination of the creative talents of ad agencies and production houses can produce creative, eye-catching ads. v. Review of Bids from Production Houses and Other Suppliers a. Production houses and other suppliers, such as lighting specialists, represent a collection of specialized talent and also provide needed equipment for ad preparation. b. The expertise in production houses relates to the technical aspects of filming a commercial. The agency sends a bid package to several production houses. The package contains all the details of the commercial to be produced and includes a description of the

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 11: Executing the Creative

production requirements and a timetable. Most agencies send out a bid package on a form developed by the agency. c. By using a standardized form, an agency can make direct comparisons between production house bids. d. The producer reviews each of the bids and revises them if necessary. e. Once the advertiser has approved the estimate, one of the production houses is awarded the job. vi. Selection of Location, Sets, and Cast a. Once a bid has been approved and accepted, both the production house and the agency production team begin to search for appropriate, affordable locations if the commercial is to be shot outside a studio setting. b. Although not every ad uses actors and actresses, when an ad calls for individuals to perform roles, casting is crucial. vii. Production a. The production stage of the process, or the shoot, is where the storyboard and script come to life and are filmed. b. The actual production of the spot may also include some final preparations before the shoot begins. The most common final preparation activities are lighting checks and rehearsals. c. An entire day may be devoted to prelight, which involves setting up lighting or identifying times for the best natural lighting to ensure that the shooting day runs smoothly. d. Similarly, the director may want to work with the on-camera talent along with the camera operators to practice the positioning and movement planned for the ad. e. This work, known as blocking, can save a lot of time on a shoot day, when many more costly personnel are on the set. B. Knowledge Check (PPT Slide 53; Time duration: 5 minutes) i. Size and tonal relationships between different elements in an ad are described by which term? a. Balance b. Emphasis c. Proportion d. Order e. Unity ii. Answer: C. Proportion—Proportion refers to the size and tonal relationships between different elements in an ad. Balance, proportion, order, unity, and emphasis are the basic principles of design. a. Balance: An orderliness and compatibility of presentation in an advertisement c. Emphasis: Deciding which major component should be emphasized

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 11: Executing the Creative

d. Order: The visual elements in an ad that affect the reader’s “gaze motion” through the ad e. Unity: The creation of harmony among the diverse components of an advertisement: headline, subhead, body copy, and illustration iii. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 11: Executing the Creative

3. Identify the strategic roles that illustration plays in increasing the effectiveness of a print advertisement from a communications and marketing perspective. a. Answer: Advertisers must appreciate the importance of coordinating visual aspects of a print advertisement with the technical aspects or design, layout, and production. The first step in that process is creating or selecting the drawing, photograph, or other art that will form the primary picture in the advertisement. To be most effective, the illustration should: • Attracts the attention of the target segment • Make the brand heroic • Communicate product features or benefits • Associate a particular mood, feeling, or image with the brand • Encourage reading of the ad’s body copy • Create the desired social context for the brand

4. Digital/interactive media present a new and unique challenge for both the copywriting and art direction processes. When you visit a website, does it seem like there is “copy” or “design” at the site? What about when you use your favorite social networking sites? Do Twitter, Facebook, or YouTube show evidence of persuasive copy or design principles? How does the audience that is using this media affect how it is presented? a. Answer: Here, students should rely on the guidelines for writing print copy and the guidelines for good design presented in the chapter. It is likely that websites will not measure up particularly well because these message components are “hybridized” for digital/interactive application. the basic principles of art direction (design and concept) apply, digital, interactive, and mobile media are fundamentally different in the way the audience approaches them, navigates them, and responds to them. This difference presents one of the real challenges of electronic advertising. 5. Describe the production process in creating a television commercial. What are some of the tensions that can arise between the creative team and the advertisers? a. Answer: 1. Pre-Production a. Storyboard and script approval b. Budget approval c. Assessment of directors, editorial houses, music suppliers d. Review of bids from production houses and other suppliers e. Selection of location, sets, and cast 2. Production Process a. Filming the commercial or “the shoot” b. The shoot involves large numbers of diverse people: • Creative performers • Trained technicians

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 11: Executing the Creative

• Skilled laborers 3. Post-Production a. The raw materials from the shoot are mixed and refined b. There is the real problem of not rushing creativity, however, and advertisers often must learn to accept the pace of production. There is a degree of tension and spontaneity on the set that is a necessary part of the creative process but that must be kept at a manageable level. Much of the tension that can arise stems from trying to execute the various tasks of production correctly and at the proper time. Another contributing factor to this tension has to do with expense. Advertisers have to accept, on occasion, that the television advertising production process is not like an assembly-line production process.

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Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 12: Media Planning Essentials

Instructor Manual

CLOSE SCHEINBAUM, ADVERTISING AND INTEGRATED BRAND PROMOTION, 9E, 9780357721407; CHAPTER 12: MEDIA PLANNING ESSENTIALS

TABLE OF CONTENTS Part 4: The Media Process ................................................................................................ 2 Purpose and Perspective of the Chapter .......................................................................... 2 Cengage Supplements ........................................................................................................ 2 Chapter Objectives ............................................................................................................. 3 Complete List of Chapter Activities and Assessments .................................................... 3 Key Terms ............................................................................................................................ 4 What's New in This Chapter ............................................................................................... 7 Chapter Outline .................................................................................................................. 8 Additional Discussion Questions ..................................................................................... 16

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 12: Media Planning Essentials

PART 4: THE MEDIA PROCESS The book is divided into five parts. At the beginning of each distinct part of the text, it is worth alerting the students to the focus of the chapters within the part. Part 4 moves into the media process, where reaching the target audience and shaping consumer behavior are key concerns. Creative and media must work in tandem to achieve the synergy and integration needed by effective advertisers. This challenge has been made more complex by the widespread use of digital, social, and mobile media, which has added to consumer control and media fragmentation. In the modern media environment, the most effective way to communicate with audiences is by integrating the creative process and the media process for all brand promotion activities.

PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to show that the media process works in tandem with the creative process in the drive to communicate effectively with target audiences and to influence consumer behavior. As with the creative side, technology is changing both the actual media channels and the planning for media placement. The trend toward programming media buys with software and automated bidding for keywordrelated advertising on search result pages is one very important example. Even as media and advertising are evolving, consumers are more heavily involved with social and mobile media for self-expression and interaction, adding nuance and complication to the planning process. However, the media process must be carefully coordinated with planning and budgeting for all integrated brand promotion efforts to achieve the desired results through synergy. As you think about advertising and media, remember that for some advertisers, traditional media remain the most efficient and effective way to reach a target audience. Effective media planning and buying is important to get the right message in front of the right audience at the right time, whether in traditional or new media—or both. Spending on nontraditional media is rising steadily year after year as customers evolve their media habits and advertisers adjust their mix of media accordingly.

CENGAGE SUPPLEMENTS The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 12: Media Planning Essentials

● ● ● ● ●

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 12-1

Describe measured versus unmeasured media and estimate how much each represents of total advertising and IBP dollars.

12-2

Describe the basic ideas and essential terms used in media planning.

12-3

Understand the meaning of competitive media assessment and share of voice.

12-4

Discuss media efficiency.

12-5

Discuss what makes social media different.

12-6

Discuss the basics of branded entertainment.

12-7

Discuss the benefits and the realities of media planning models.

12-8

Discuss making the media buy and programmatic media buying.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 12: Media Planning Essentials

Chapter Objective

Activity/Assessment

Source (i.e., PPT slide, Workbook)

Duration

Icebreaker

PPT Slide 4

10 minutes

12-2

Discussion Activity 1

PPT Slide 19

5 minutes

12-2

Discussion Activity 1 Debrief

PPT Slide 29

5 minutes

12-2

Discussion Activity 2

PPT Slide 24

5 minutes

12-2

Discussion Activity 2 Debrief

PPT Slide 25

5-10 minutes

12-3

Knowledge Check

PPT Slide 28

5 minutes

12-6

Discussion Activity 3

PPT Slide 39

5-10 minutes

12-6

Discussion Activity 3 Debrief

PPT Slide 40

5-10 minutes

Knowledge Check 2

PPT Slide 50

5 minutes

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KEY TERMS Above-The-Line Promotion Traditional measured media advertising: any message broadcast to the public through conventional means such as television, the Internet, radio, and magazines. Agency Of Record The advertising agency chosen by the advertiser to purchase media time and space. Below-The-Line Promotion A promotional effort that includes in-store promotions, coupons, dealer discounts, and product placement. Between-Vehicle Duplication Exposure to the same advertisement in different media. Continuity The pattern of placement of advertisements in a media schedule.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 12: Media Planning Essentials

Continuous Scheduling A pattern of placing ads at a steady rate over a period of time. Cost Per Thousand (CPM) The dollar cost of reaching 1,000 members of an audience using a particular medium. Effective Frequency The number of times a target audience needs to be exposed to a message before the objectives of the advertiser are met. Effective Reach The number or percentage of consumers in the target audience that are exposed to an ad some minimum number of times. Flighting A media-scheduling pattern of heavy advertising for a period of time, usually two weeks, followed by no advertising for a period, followed by another period of heavy advertising. Forgetting Function Idea that people’s forgetting is fairly predictable and seems to obey a mathematical function. Frequency The average number of times an individual or household within a target audience is exposed to a media vehicle in a given period of time. Geofencing The ability to track consumers’ locations within a certain geographic area via their smartphones. Geo-Targeting The placement of ads in geographic regions where higher purchase tendencies for a brand are evident. Geographic Scope Scope of the geographic area to be covered by advertising media. Gross Impressions The sum of exposures to all the media placement in a media plan. Measured Media Media that are closely measured to determine advertising costs and effectiveness: television, radio, newspapers, magazines, and outdoor media.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 12: Media Planning Essentials

Media-Buying Service An independent organization that specializes in buying media time and space, particularly on radio and television, as a service to advertising agencies and advertisers. Media Buying Securing the electronic media time and print media space specified in a given account’s schedule. Media Class A broad category of media, such as television, radio, or newspapers. Media Mix The blend of different media that will be used to effectively reach the target audience. Media Plan A plan specifying the media in which advertising messages will be placed to reach the desired target audience. Media Vehicle A particular option for placement within a media class (e.g., People is a media vehicle within the magazine media class). Message Weight A sum of the total audience size of all the media specified in a media plan. Micro-Target Refers to the practice of delivering customized messages down to the individual level or near the individual level. Programmatic Media Buying Automatic buying of ads based on data such as online consumer behavior. Pull Media A form of media where consumers go looking for the advertiser or advertising and thus “pull” the advertised brand toward them. Push Media A form of media in which the brand is “pushed” at the consumer (rather than the consumer seeking it out). Pulsing A media-scheduling strategy that combines elements from continuous and flighting techniques; advertisements are scheduled continuously in media over a period of time, but with periods of much heavier scheduling.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 12: Media Planning Essentials

Reach The number of people or households in a target audience that will be exposed to a media vehicle or schedule at least one time during a given period of time. It is often expressed as a percentage. Share Of Voice Percent of the total advertising in a category (e.g., autos) spent by one brand (e.g., Ford). Social Listening An emerging research discipline that specializes in tracking conversations about brands on the Web, analyzing the data, and reporting various metrics, including numbers of people discussing a brand, sentiments expressed, and volume (how much conversation about a brand occurs in a given period), and so on. Square Root Law The recognition of print ads increases with the square of the illustration. Unmeasured Media Media less formally measured for advertising costs and effectiveness (as compared to the measured media): direct mail, catalogs, special events, and other ways to reach business and household consumers. Upfronts A period of media buying in which advertisers purchase time on network television a few months before (May) the new season of shows begin (September). They are thus bought “up-front.” Within-Vehicle Duplication Exposure to the same advertisement in the same media at different times. [return to top]

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition: •

New key terms o Geofencing o pull media o push media

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 12: Media Planning Essentials

social listening

•

New ad spending growth forecast

•

Measured media spending, programmatic media

•

Examples by Abbott

•

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Measured and Unmeasured Media (LO 1, PPT Slides 5-7) i. Most advertisers of goods and services invest a considerable amount of money to compete at the national or international level. ii. While most well-known brands do heavy media investments, some big brands do relatively little mass advertising. iii. Another sector that allocates hundreds of millions in media investments and advertising is the pharmaceutical industry. iv. It is crucial to consider media investment allocations. A. Media Investment Allocations i. Traditionally, companies have made the distinction between: a. Above-the-line promotion, which meant traditional measured media advertising.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 12: Media Planning Essentials

b. Below-the-line promotion, which was called unmeasured media, was

everything else.

II.

Media Investment Terminology (LO 2, PPT Slides 8-25) i. The broad range of media options demands attention to detail in the media planning process. a. A media plan specifies the media in which advertising messages will be placed to reach the desired target audience. 1. Includes strategy, objectives, media choices, and a media schedule for placing a message. b. A media class is a broad category of media, such as television, radio, or newspapers. c. A media vehicle is a particular option for placement within a media class. d. The media mix is the blend of different media that will be used to effectively reach the target audience. A. Media Strategies, Objectives, and Data i. The true strength of a media plan lies in the media strategy. ii. The most obvious media objective is that the vehicle chosen reaches the target audience. a. The definition of a target audience can be demographic, geographic, lifestyle, attitude dimensions, or usage category. b. Media planners need to identify media that cover the same geographic area as the advertiser’s distribution system. c. Some analysts suggest that when certain geographic markets demonstrate unusually high purchasing tendencies by product category or by brand, then geo-targeting should be the basis for the media placement decision. d. Geo-targeting is the placement of ads in geographic regions where higher purchase tendencies for a brand are evident. iii. Media planning is increasingly sophisticated and targeted, thanks to Big Data. a. Social networking sites and search engines can track online behavior, and stores can even track in-store movement through your cell phone’s signals using geofencing, or a way to determine or where someone is using their mobile technology. b. They may then micro-target you with various messages, pay to optimize your smartphone browser for their benefit, or place an ad on your smartphone for a store you will pass in two blocks. c. Reach is the number of people or households in a target audience that will be exposed to a media vehicle or schedule at least one time during a given period of time.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 12: Media Planning Essentials

iv.

d. Frequency is the average number of times an individual or household within a target audience is exposed to a media vehicle in a given period of time (typically a week or a month). e. Effective frequency is the number of times a target audience needs to be exposed to a message before the objectives of the advertiser are met—either communications objectives or sales impact. f. Effective reach is the number or percentage of consumers in the target audience that are exposed to an ad some minimum number of times. g. Message weight is the gross number of advertising messages or exposure opportunities delivered by the vehicles in a schedule. Message weight (at least in traditional media) is typically expressed in terms of gross impressions. a. Gross impressions represent the sum of exposures to the entire media placement in a media plan. Planners often distinguish between two types of exposure. b. Potential ad impressions, or opportunities to be exposed to ads, are the most common and refer to exposures by the media vehicle carrying advertisements (e.g., a program or publication). c. Message impressions, on the other hand, refer to exposures to the ads themselves. d. The text example of the exposures to a media placement is: Television: Program A audience=16,250,000 Program B audience=4,500,000 Program C audience=7,350,000 ——————————————— Sum of TV exposures=28,100,000 Newspapers: Newspaper 1=1,900,000 Newspaper 2=450,000 ——————————————— Sum of NP exposures=2,350,000 Total gross impressions=30,450,000 2. Students should realize that this does not mean that 30,450,000 separate people were exposed. Some people who watched TV Program A also saw Program B and read Newspaper 1, as well as all other possible combinations. This is called between-vehicle duplication. 3. It is also possible that someone who saw the ad in Newspaper 1 on Monday saw it again in Newspaper 1 on Tuesday. This is within-vehicle duplication. Data available from services such as SMRB actually report both these types of duplication so that they may be removed from the gross

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 12: Media Planning Essentials

impressions to produce the unduplicated estimate of audience or reach. v. Continuity is the pattern of placement of advertisements in a media schedule. There are three strategic scheduling alternatives: a. Continuous scheduling is a pattern of placing ads at a steady rate over a period of time. b. Flighting is achieved by scheduling heavy advertising for a period of time, usually two weeks, then stopping advertising altogether for a period, only to come back with another heavy schedule. c. Pulsing combines elements from continuous and flighting techniques. Advertisements are scheduled continuously in media over a period of time, but with periods of much heavier scheduling (the flight). Pulsing is most appropriate for products that are sold fairly regularly all year long but have certain seasonal requirements, such as clothing. B. Discussion Activity 1 (PPT Slide 19; Time duration: 5 minutes) i. Assume that you are advising a regional snack-food manufacturer whose brands have a low share of voice. a. Which pattern of continuity would you recommend for such an advertiser? 1. Answer: Regional brands may have modest ad budgets, so continuous scheduling would likely be a waste of resources. We would recommend flighting as the best scenario for the regional brand. Some efficiencies could be achieved with this continuity patter, and scheduling around events that might call for snacks (e.g., holidays or graduation parties) cold help the regional player break through the clutter during key seasons. C. Discussion Activity 1 Debrief (PPT Slide 20; Time duration: 5 minutes) i. Would you place your ads in television programming that is also sponsored by competing national brands such as Pringles and Doritos? Why or why not? a. Answer: A regional snack-food marketer with low share of voice will face highly competitive clutter from national brands like Pringles and Doritos. Because the regional player does not have the resources to compete on the same terms as the national players, it would not be advantageous to use the same vehicles as those brands. D. Continuity and the Forgetting i. It turns out that people’s forgetting is fairly predictable. It seems to obey a mathematical function pretty well; thus it is often called the forgetting function. a. If an audience receives 13 ads in the first 13 weeks of a year (called a flighting schedule) that audience scores much higher in

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 12: Media Planning Essentials

terms of peak unaided recall, but the level of recall falls off very fast, and by halfway through a year is very low. A group that gets ads at an evenly spaced schedule (called a continuous schedule) never attains as a high a level of recall as the other group, but at the end of a year, has an overall higher average recall. ii. This research has been very influential in terms of guiding industry media planners for several decades. The real-world implications are pretty clear. If you need rapid and very high levels of recall—say for the introduction of a new product—use a flighting (sometimes called “heavy-up”) schedule. A continuous schedule would be more broadly effective and would be used for established brands with an established message. E. Length or Size of Advertisements i. The decision about the length or size of an advertisement depends on the creative requirements for the ad, the media budget, and the competitive environment within which the ad is running. ii. From a creative standpoint, ads attempting to develop an image for a brand on TV may need to be longer. iii. Some research shows increase in recognition of print ads with increasing image size—this is referred to as the square root law—the recognition of print ads increase with the square of the illustration. iv. From a competitive perspective, matching a competitor’s presence with messages of similar size or length may be needed to maintain the share of mind in a target audience. F. Discussion Activity 2 (PPT Slide 24; Time duration: 5-10 minutes) i. The proliferation of media options, in combination with the trend towards longer ads, is leading some analysts to predict the end of the traditional 30-second television spot. a. Do you think longer ads are more compelling and engaging than a traditional television spot? 1. Answer: The proliferation of media options, in combination with the trend towards longer ads, is leading some analysts to predict the end of the traditional 30-second television spot. G. Discussion Activity 2 Debrief (PPT Slide 25; Time duration: 5 minutes) i. What goals might advertisers have for longer ads? a. Answer: Responses will vary. Suggestions could include providing more information about the products or spending time to address any hesitation a consumer might have. For those who invest in infomercials, they also include a time restriction to add urgency to a consumer’s decision – if they don’t purchase now, the deal is gone. III. Competitive Media Assessment (LO 3, PPT Slides 26-28)

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 12: Media Planning Essentials

ii.

Media planners normally do not base an overall media plan on how much competitors are investing or where competitors are placing their ads, but a competitive media assessment can provide a useful perspective. Share of voice is a calculation of any one advertiser’s brand expenditures relative to the overall spending in a category.

A. Knowledge Check (PPT Slide 28; Time duration: 5 minutes) i. Assume that meal-kit marketers invest $160 million per year in measured advertising media. Now assume that every year, Blue Apron and HelloFresh invest approximately $70 million and $90 million, respectively, in measured advertising media. What is the share of voice calculation for HelloFresh? a. 22.22 percent b. 43.75 percent c. 56.25 percent d. 77.78 percent ii. Answer: C. 56.25 percent—($90M x 100) / 160 = 56.25. Share of voice = one brand’s advertising expenditures in a medium / total product category advertising expenditures in a medium. III. Media Efficiency (LO 4, PPT Slides 29-30) i. Which media deliver the largest target audiences at the lowest cost? A common measure of media efficiency is cost per thousand (CPM), which is the dollar cost of reaching 1,000 members of an audience using a particular medium.

ii.

If the target audience is restricted to male college graduates in professional occupations, the cost per thousand—target market (CPM— TM) calculation might be much higher for a general publication like USA Today than for a more specialized publication like Fortune magazine. iii. The same sort of efficiency calculation is possible for television in the form of a cost per rating point (CPRP): a relative comparison between media options. In this calculation, the cost of a spot on television is divided by the program’s rating (a rating point is equivalent to one percent of the television households in the designated rating area tuned to a specific program). A. Digital/Internet Media i. The internet and digital media are pull media in that the consumer goes looking for advertisers or advertising.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 12: Media Planning Essentials

ii.

Traditional media are push media, where the “brand” is pushed at the consumer. IV. Social Media: A Media Planning Perspective (LO 5, PPT Slides 31-33) A. Social Networks and Integrated Brand Promotions i. New paradigm exists: marketer to consumer, then consumer to consumer a. Fraction of the cost of traditional media b. Marketers are well aware of the cost-efficient brand promotion opportunities represented by social media. c. Social media create a “buzz’ and “viral’ effect 1. An emerging research discipline known as social listening specializes in tracking conversations about brands on the Web, analyzing the data, and reporting various metrics, including numbers of people discussing a brand, sentiments expressed, and volume (how much conversation about a brand occurs in a given period), and so on. d. Smart brands focus on the synergy of traditional media advertising and social media interactions. V. Branded Entertainment as a Media Choice (LO 6, PPT Slides 34-40) i. A final complicating factor in the media environment is that more firms are adopting an integrated brand promotion perspective, which relies on a broader mix of communication tools. a. Promotional options such as event sponsorship, direct marketing, branded entertainment, sales promotion, and public relations are drawing many firms away from traditional mass media advertising. A. Branded Entertainment i. The trend is to merge media through branded entertainment on television, in games, in retail settings called brandscapes (think of stores such as NikeTown), on mobile phones—all across the board. ii. For clients seeking branded entertainment opportunities, there typically are three primary approaches. a. Least expensive is product placement on TV or in film b. More sophisticated is storyline integration with brands in video games as an example c. Most sophisticated and expensive is original content like BMW short films B. Discussion Activity 3 (PPT Slide 39; Time duration: 5-10 minutes) i. Branded entertainment originated with simple product placements in movies, radio, and then television shows. Today, the trend is to merge media through branded entertainment on television, in games, in retail settings called brandscapes, and on mobile phones.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 12: Media Planning Essentials

a. How has the increased emphasis on branded entertainment and the meteoric rise in popularity of social media influenced media planning? 1. Answer: As the strength of traditional advertising has eroded, branded entertainment has emerged as an attractive method to merge branding messages across various media platforms. For media planners, this has demanded a more creative and holistic approach, often one that also can be more rewarding. Other new creative challenges have emerged with the rising popularity of social media. Media planners now must also determine ways to involve brand messages in what is essentially strictly consumer-to-consumer communication. New data gathering systems are emerging, though, that could offer strategic new tool for media planners assessing the opportunities within social networking sites. C. Discussion Activity 3 Debrief (PPT Slide 40; Time duration 5-10 minute) i. What role might social listening play in this type of media planning? a. Answer: Responses will vary. An emerging research discipline knowns as social listening involves tracking conversations about brands on the web, analyzing the data and reporting various metrics, including number of people discussing a brand, sentiments expressed, and volume (how much conversation about a brand occurs in a given period), and so on. Social listening allows brands to make more strategic and timely placement decisions. VI. Media Planning Models: Benefits and Realities (LO 7, PPT Slides 41-45) i. The explosion of available data on markets and consumers has motivated media planners to rely more on electronic databases, computers, and software in the media planning effort. ii. Major syndicated research services offer databases (and the software to analyze them) that contain information in identifying target audiences, estimating media costs, and analyzing competitors’ spending. iii. The various syndicated services do not, however, offer standardized data, reports, and analyses that are necessarily comparable across media categories. iv. Computer modeling is not a substitute for judgment but does allow for the assessment of a wide range of possibilities before making costly media buys. VIII. Media Buying and Programmatic Media Buying (LO 8, PPT Slides 46-50) i. Media buying entails securing the electronic media time and print media space specified in the schedule. a. Another important part of the media-buying process is the agency of record, which is the advertising agency chosen by the advertiser to purchase time and space.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 12: Media Planning Essentials

b. Each spring, television programming and ad executives participate in a ritual called the “upfronts.” The upfronts is a period where the television networks reveal their fall-lineups and presell advertising on them. Advertisers buy about 75 percent of all available time during this upfront period. c. Some advertisers use a media-buying service, which is an independent organization that specializes in buying large blocks of media time and space and reselling it to advertisers. ii. Media investment trends are dynamic and change over time. a. It is important to examine which forms of media may be on the decline in any given year. b. Media investments are not one size fits all and should be unique to the goals and needs of the client or brand, so while media type trends are relevant and interesting, make sure to invest in the right type of media that suits their needs rather than what is simply trending or falling out of favor. A. Knowledge Check 2 (PPT Slide 50; Time duration: 5 minutes) i. When advertisements are scheduled continuously in media over a period of time, but with periods of much heavier scheduling, this is referred to as: a. continuous scheduling. b. flighting. c. geo-targeting. d. pulsing. ii. Answer: D. pulsing—Pulsing is a media-scheduling strategy that combines elements from continuous and flighting techniques; advertisements are scheduled continuously in media over a period of time, but with periods of much heavier scheduling. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 12: Media Planning Essentials

promotion options classified differently? Why do the “slices” of this pie change over time? a. Answer: Think of a brand’s media investment allocations, or how much a brand is going to invest or spend on media, as a big pie that is sliced into separate activities like mass media advertising, direct mail, point-of-purchase promotion, coupons, promotional emails, buzz marketing, product placement, and special events. These can be classified as above-the-line promotion, meaning traditional measured media advertising, and below-the-line promotion, which is everything else. For consumer package goods companies, below-the-line promotion might be desirable retail shelving, in-store promotions, coupons, and events; for durable goods (say cars), it might be for dealer incentives and financing incentives. Below-the-line promotion is also referred to as unmeasured media. It’s not really unmeasured, but it is just called “unmeasured” because it is hard to measure it with traditional means. The slices of the big pie change in size from year to year as advertisers increase or decrease media spending and shift dollars among media investments. For years, measured media constituted more than half of the media investment allocations. These days, the ratio of measured and unmeasured media is in flux as more advertisers put more money into digital, social, and mobile media to reach consumers who use their mobile devices at home, at work, at school, and everywhere in between. 2. Media strategy models allow planners to compare the impact of different media plans, using criteria such as reach, frequency, and gross impressions. What other kinds of criteria should a planner take into account before deciding on a final plan? a. Answer: Many criteria factor in setting the final media plan. It is important to assess competitive activity and select a continuity pattern that fits with objectives and resources. Geo-targeting is a good way to concentrate the impact of spending. A qualitative decision also needs to be made about the correct assortment of media to engage for the campaign. Will the message be more likely to break through to consumers when they hear it in multiple media, or is it better to try to achieve concentration in a single medium? Finally, there is the question of effectiveness. The objectives of some campaigns dictate the use of particular media to maximize message effectiveness. 3. Review the mathematics of the Share of Voice and CPM calculations and explain how these two indicators can be used to assess the efficiency and effectiveness of a media schedule. a. Answer: When a target audience is narrow and attracts the attention of several major competitors, an advertiser must assess its competitors’ IBP investing and the relative share of voice its brand is getting. Share of voice is a calculation of any one advertiser’s brand expenditures relative to the overall spending in a category. Research data can provide an assessment of share of

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 12: Media Planning Essentials

voice in various media categories. A detailed report will show how much a brand was advertised in a particular media category versus the combined media category total for all other brands in the same product category. Knowing what competitors are investing in a medium and how dominant they might be allows an advertiser to strategically schedule within a medium. Some strategists believe that scheduling in and around a competitor’s schedule can create a bigger presence for a small advertiser. Cost per thousand (CPM) is the dollar cost of reaching 1,000 members of an audience using a particular medium. The CPM calculation can be used to compare the relative efficiency of two media choices within a media class (magazine vs. magazine) or between media classes (magazine vs. radio). Both of these indicators can help assess the efficiency of a vehicle for reaching a target audience. Neither of these indicators says anything about the quality of the advertising, so it would be a mistake to interpret them as measures of advertising effectiveness. 4. How has the increased emphasis on branded entertainment and the meteoric rise in popularity of social networking sites such as Facebook and Twitter influenced media planning? a. Answer: As the strength of traditional advertising has eroded, branded entertainment has emerged as an attractive method to merge branding messages across various media platforms, from television and film to videogames and mobile phones. For media planners, this has demanded a more creative and holistic approach, often one that also can be more rewarding. Other new creative challenges have emerged with the rising popularity of social networking sites. Media planners now must also determine ways to involve brand messages in what is essentially strictly consumer-toconsumer communication. Smart brands focus on the synergy of traditional media advertising and social media interactions. New data-gathering systems are emerging, though, that could offer a strategic new tool for media planners assessing the opportunities within social networking sites. 5. In the real world, do media planners always make strategic decisions based on sophisticated data, or are there other influences that sway their media-buying decisions? Explain. a. Answer: Automation (including programmed buys and automated bidding for advertising) and modeling can never substitute for planning and judgment by media strategists. Computer modeling does, however, allow for the assessment of a wide range of possibilities before making costly media buys to uncover different ways that advertisers can save money. Despite the dramatic rise in programmatic media buying, you still need to know how media buying traditionally works in advertising. Not all media investments need be automated. An important part of the media-buying process is the decision to handle media buying in-house or to use an agency of record for media. Media investment

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 12: Media Planning Essentials

trends are dynamic and change over time. It is important to examine which forms of media may be on the decline in any given year, such as directories and newspapers according to these data. Of course, media investments are not one size fits all and should be unique to the goals and needs of the client or brand, so while media type trends are relevant and interesting, make sure to invest in the right type of media that suits their needs rather than what is simply trending or falling out of favor. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 13: Media Planning: Newspapers, Magazines, TV and Radio

Instructor Manual

CLOSE SCHEINBAUM, ADVERTISING AND INTEGRATED BRAND PROMOTION, 9E, 9780357721407; CHAPTER 13: MEDIA PLANNING: NEWSPAPERS, MAGAZINES, TV AND RADIO

TABLE OF CONTENTS Purpose and Perspective of the Chapter ......................................................................... 2 Cengage Supplements ........................................................................................................ 2 Chapter Objectives ............................................................................................................. 3 Complete List of Chapter Activities and Assessments .................................................... 3 Key Terms ............................................................................................................................ 4 What's New in This Chapter ............................................................................................... 6 Chapter Outline .................................................................................................................. 7 Additional Discussion Questions ..................................................................................... 20

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 13: Media Planning: Newspapers, Magazines, TV and Radio

PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to understand that if the consumer does not see the message, no matter how new or modern the media placement is, it is not an effective message. That is why the media process is so important to advertising and integrated brand promotion. Integrating brands’ communication via print, TV, and radio to reach target markets form the foundation of many advertising campaigns. There are certain objectives advertising can achieve—particularly creative goals—only with traditional mass media because digital, social, and mobile media cannot match them in their effectiveness. Despite changes in technology and media consumption, these traditional media represent robust and attractive communication alternatives for many advertisers—especially as the traditional media increase their presence in the digital, social, and mobile platforms for reach and synergy. Another factor to bear in mind is the trend toward programmatic buying, especially as artificial intelligence (AI) technology advances and advertisers gain the ability to identify and analyze multiple media for pinpoint targeting. Human judgment is necessary throughout the media process for considerations like the reputation and authoritativeness of traditional media categories and vehicles. There are advantages and disadvantages to print media and different types of newspapers and magazines from which advertisers can choose and identify buying procedures and audience measurement techniques. There are also several options when considering TV and radio, each with their own advantages and disadvantages, and how to buy and measure audience in this type of media. Much of media buying in these areas will most likely be more automated or programmatic in the future.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 13: Media Planning: Newspapers, Magazines, TV and Radio

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 13-1

Explain some considerations of the present and future of traditional mass media.

13-2

Identify the advantages and disadvantages of newspapers/digital newspapers, identify newspaper advertising categories, and consider the future of newspapers as a medium.

13-3

Explain the advantages and disadvantages of magazines as a media class, identify magazine advertising categories, and consider the future of magazines as a medium.

13-4

Identify the advantages and disadvantages of television as a media class, identify television advertising categories, describe audience measurement for television, and consider the future of television as a medium.

13-5

Explain the advantages and disadvantages of radio as a media class, identify radio advertising categories, and consider the future of radio as a medium.

Activity/Assessment

Source (i.e., PPT slide, Workbook)

Duration

Icebreaker

PPT Slide 3

5-10 minutes

13-2

Discussion Activity 1

PPT Slide 14

5-10 minutes

13-2

Discussion Activity 1 Debrief

PPT Slide 15

10-15 minutes

13-3

Discussion Activity 2

PPT Slide 22

5 minutes

13-3

Discussion Activity 2 Debrief

PPT Slide 23

5 minutes

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 13: Media Planning: Newspapers, Magazines, TV and Radio

13-4

Discussion Activity 3

PPT Slide 32

5 minutes

13-4

Discussion Activity 3 Debrief

PPT Slide 33

10 minutes

Knowledge Check

PPT Slide 41

5 minutes

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KEY TERMS Absolute Cost The unit cost or media vehicle cost. Barter Syndication A form of television syndication that takes both off-network and first-run syndication shows and offers them free or at a reduced rate to local television stations, with some national advertising presold within the programs. Cable TV A type of television that transmits a wide range of programming to subscribers through wires rather than over airwaves. Channel Grazing Using a television remote control to monitor programming on other channels while an advertisement is being broadcast. Classified Advertising Newspaper advertising that appears as all-copy messages under categories such as sporting goods, employment, and automobiles. Closed Circuit A method of transmitting programming to highly segmented audiences. Dayparts Segments of time during a television broadcast day. Digital Video Recorder (DVR) A computer-like hard drive that can store many hours of television programming. Display Advertising A newspaper ad that includes the standard components of a print ad—headline, body copy, and often an illustration—to set it off from the news content of the paper. Editorial And Entertainment Content Content in a website or magazine, for example, that is intended to inform educate or entertain consumers. First-Run Syndication Television programs developed specifically for sale to individual stations.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 13: Media Planning: Newspapers, Magazines, TV and Radio

Free-Standing Insert (FSI) A newspaper insert ad that contains cents-off coupons for a variety of products and is typically delivered with Sunday newspapers. Households Using TV (Hut) A measure of the number of households tuned to a television program during a particular time period. Hyper-Localism The process where people will get their global and national news from the Web but turn to local newspapers for items on sale at local stores. Lead Time The time it takes to develop and place an ad. Local Spot Radio Advertising Radio advertising placed directly with individual stations rather than with a network or syndicate. Local TV Television programming other than the network broadcast that independent stations and network affiliates offer local audiences. Media Kit A resource of information provided by a publisher to assist ad buyers, reporters, and media professionals who are seeking information on circulation, readership, subscribers, and prices to evaluate advertising opportunities. Narrowcasting The development and delivery of specialized television programming to well-defined audiences. National Spot Radio Advertising Radio advertising placed in nationally syndicated radio programming. Network Radio Advertising Radio advertising placed within national network programs. Network TV A type of television that broadcasts programming over airwaves to affiliate stations across the United States under a contract agreement. Off-Network Syndication Television programs that were previously run in network prime time. Pass-Along Readership People other than the primary subscriber who read a publication. Pay-For-Inquiry Advertising Model A payment scheme in which a media company gets paid by advertisers based solely on the inquiries an advertiser receives in response to an ad.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 13: Media Planning: Newspapers, Magazines, TV and Radio

Preprinted Insert An advertisement delivered to a newspaper fully printed and ready for insertion into the newspaper. Program Rating The percentage of television households that are in a market and are tuned to a specific program during a specific time period. Radio Networks A type of radio that delivers programming via satellite to affiliate stations across the United States. Radio Syndication A type of radio that provides complete programs to stations on a contract basis. Ratings Point A measure indicating that 1 percent of all the television households in an area were tuned to the program measured. Satellite A method of transmitting programming to highly segmented audiences. Share Of Audience A measure of the proportion of households that are using television during a specific time period and are tuned to a particular program. Television Syndication Either original programming or programming that first appeared on network TV that is then rebroadcast on either network or cable stations with pending distribution on the Internet. TV Households An estimate of the number of households that are in a market and own a television. Video On Demand (VOD) A cable television service that enables subscribers to watch a selection of videos at any time.

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WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition: •

New key terms: o absolute cost o editorial o entertainment content o lead time

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 13: Media Planning: Newspapers, Magazines, TV and Radio

o • •

media kit

“New” way of measurement is simply the minutes a consumer spends watching streaming content New support articles from: o Journal of Consumer Research o Journal of Advertising o Journal of Marketing o Journal of Advertising Research o International Journal of Advertising o JCIRA o Journal of Marketing Research o Journal of Consumer Research

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The Present and Future of Traditional Mass Media (LO 1, PPT Slides 5-8) i. The last two decades have witnessed unprecedented change in media options and applications. ii. Consumers have turned to multiple new sources of information and entertainment and are more active in their media choice and patronage. a. As a result, advertisers are turning more often to digital media that offer new, different, and cost-effective ways to reach target markets—including when those target markets are on the move with their mobile devices. b. In addition, digital media allow advertisers to make rapid changes in campaigns—changes that might take months to accomplish with traditional media. c. A digital campaign can be a global campaign if the advertiser chooses to make it so—a monumental task in traditional media. iii. The media environment does not have a predictable structure, and media companies are using analytics to properly position themselves for the new ways consumers seek out brand information.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 13: Media Planning: Newspapers, Magazines, TV and Radio

iv.

The future of effective advertising and IBP campaigns means synergizing digital, social, and mobile media with the use of traditional mass media, such as TV, radio, outdoor, and print advertising. II. Newspapers and Digital Newspapers (LO 2, PPT Slides 9-15) i. Newspaper is a medium accessible to a wide range of advertisers; digital newspapers and apps complement the traditional paper for more synergy, flexibility, and reach. a. As print circulation and ad revenues decline in the digital age, newspapers have reinvented themselves and revamped their business models to remain competitive. b. Newspapers are now updating their content in real time, and the future of some newspapers may be limiting the print options that are available. c. Another important consideration is that the percentage of adults reading daily newspapers is declining. Research demonstrates that these consumers are now getting their news from TV, news websites, news apps, and radio more frequently than they do from traditional newspapers. A. Advantages of Newspapers i. Printed newspapers may have lost some of their luster during the past four decades, but they still do reach about 75 million of U.S. households earning more than $100,000 per year, representing about 124 million adults who read the newspaper each week. ii. Geographic Selectivity a. Daily newspapers in cities and towns across the United States offer advertisers the opportunity to reach a geographically well-defined target audience—particularly densely populated urban markets. b. Especially in rural areas, daily or weekly newspapers are prime sources of local news, without the intense competition of media that cover a wider region. These newspapers provide solid advertising opportunities for reaching rural audiences. iii. Timeliness a. The newspaper is timely even in its printed form. Because of the short time needed for producing a typical newspaper ad and the regularity of daily publication, the newspaper allows advertisers to reach audiences in a timely way. b. Brands can create and place ads in newspapers quickly, in response to or anticipation of an event or a news development, a plus when lead time—or the time to develop and place the ad—is limited. iv. Creative Opportunities a. Because the newspaper page offers a large and relatively inexpensive format, there is an opportunity to provide a lot of information to the target audience at relatively low cost.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 13: Media Planning: Newspapers, Magazines, TV and Radio

Credibility a. Newspapers still benefit from the perception that “If it’s in the paper it must be the truth.” vi. Audience interest and Demographics a. Regular newspaper readers, either digitally or via print, are truly interested in the information they are reading and staying current with local and or world happenings. b. Even though overall print readership may be down in the United States, apps are growing in popularity, and many readers remain interested and digitally engaged. c. Newspaper readers 1. Upscale, highly educated, affluent consumers d. Many readers buy the newspaper specifically to see what’s on sale at stores in the local area, making it an ideal environment for local merchants. vii. Cost a. Both in terms of production and space, newspapers offer a lowcost alternative. b. The cost per contact may be higher than with TV and radio options, but the absolute cost—also referred to as the unit cost or vehicle cost—for placing a black-and-white ad is still within reach of even a small advertising budget. B. Disadvantages of Newspapers i. Limited segmentation a. Newspapers can achieve good geographic selectivity and reach upscale customers, but the ability to target a specific audience with any precision is limited. b. Circulation cuts across too broad an economic, social, and demographic audience to allow for the isolation of specific targets. ii. Creative constraints a. Newspapers have comparatively poor reproduction quality. Newspapers are also a unidimensional medium—no sound, no action. iii. Cluttered environment a. Newspapers are filled with headlines, subheads, photos, and announcements—not to mention news stories. This presents a terribly cluttered environment for an advertisement. iv. Short life a. In most homes, newspapers are read quickly and then discarded. b. The way advertisers can overcome this limitation is by buying several insertions in each daily issue, buying space several times during the week, or both. C. Categories of Newspaper Advertising

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 13: Media Planning: Newspapers, Magazines, TV and Radio

Display Advertising a. Display advertising includes the standard components of a print ad—headline, body copy, and often an illustration—to set it off from the news content of the paper. b. An important form of display advertising is co-op advertising—a manufacturer pays part of the media bill when a local merchant features the manufacturer’s brand in advertising. ii. Inserts a. There are two types of insert advertisements. 1. A preprinted insert is an advertisement delivered to the newspaper fully printed and ready for insertion into the newspaper. 2. A free-standing insert (FSI) contains cents-off coupons for a variety of products and is typically delivered with Sunday newspapers. iii. Classified Advertising a. Classified Advertising is newspaper advertising that appears as allcopy messages under categories such as sporting goods, employment, and automobiles. D. The Future of Newspapers i. To survive as a viable advertising medium, newspapers will have to evolve with the demands of both audiences and advertisers: a. Continue to provide in-depth coverage of issues that focus on the local community. This is now referred to as a “hyper-localism” strategy. b. Pursue a pay-per-inquiry advertising model, a payment model in which the medium, in this case newspapers, gets paid by advertisers based solely on the inquiries an advertiser receives in response to an ad. c. Maintain and expand their role as the best local source for consumers to find specific information on advertised product features, availability, and prices. d. Provide customers/buyers the option of shopping through an online newspaper computer service (e-Bay like auctions), which will match online classifieds. e. Use bloggers to cover local events. f. Become more mainstream in integrated brand promotions, particularly relating to new digital media. g. Integrated with social media and or mobile. h. Measured with cross devices or cross platform exposure or use. E. Discussion Activity 1 (PPT Slide 14; Time duration 5-10 minutes) i. Why are newspapers losing circulation?

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 13: Media Planning: Newspapers, Magazines, TV and Radio

a. Answer: Newspaper circulation and readership habits have been steadily dropping for more than three decades. Circulation declines have accelerated in recent years, too, as papers that had slowly lost news consumers to television programming began competing with all-news cable programming. Over the last five years, circulation losses have become even more dramatic as readers stopped buying the daily newspaper and began accessing news online from all manner of news websites. ii. What effect does it have on their advertising revenue? a. Answer: The circulation losses have caused advertisers to drastically pull back their newspaper spending, and the newspaper industry has struggled to find ways to recoup that lost revenue from its online business models. F. Discussion Activity 1 Debrief (PPT Slide 15; Time duration 10-15 minutes) i. What may happen to newspaper advertising during the next decade? a. Answer: Responses will vary. Some news organizations may stop offering free news content online. Another possibility for the future of newspapers is “hyper-localism.” Since newspapers have excellent geographic selectivity, some analysts predict newspapers will abandon national issues and become specialists in local news and business interests. While newspaper ads have short life, they lead in timeliness, affordability, and geographic targeting. To stay competitive, newspapers may need to offer local advertisers a payper-inquiry model for ad costs. Newspapers will likely find new life by integrating with local social media sites. III. Magazines (LO 3, PPT Slides 16-23) A. Advantages of Magazines i. In addition to being synergistic with digital media, magazines have some advantages relative to newspapers or even broadcast media. ii. Audience Selectivity a. The key advantage of magazines relative to other media is their ability to target a highly selective audience. This selectivity can be based on demographics, lifestyle (Muscle & Fitness), or special interests. iii. Audience Interest a. Magazines attract an audience because of content, which has the advantage of voluntary exposure to the advertising. iv. Creative Opportunities a. Magazines offer a wide range of creative opportunities—size of an ad, use of color, use of white space, and special features, such as pop-up ads. v. Long Life

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 13: Media Planning: Newspapers, Magazines, TV and Radio

a. Many magazines are saved issue to issue by their subscribers. Magazines offer multiple exposure and pass-along readership as people share copies with friends or families or browse through issues in professional offices. b. A media kit is defined as a resource of information provided by a publisher to assist ad buyers, reporters, and media professionals who are seeking information on circulation, readership, subscribers, and prices to evaluate advertising opportunities. B. Disadvantages of Magazines i. Limited reach and frequency a. The selectivity of targeting can be a disadvantage in that a relatively small market will be reached. b. Since many magazines only publish once a month, there is little chance for an advertiser to achieve frequent exposure using a single magazine. ii. Clutter a. Clutter occurs both within a magazine and within a magazine’s market segment as more new magazines are issued. b. The average magazine is about half editorial and entertainment content—content intended to inform or entertain—and half advertising material. c. An additional complication for magazine advertisers is the specific sort of clutter that can plague some magazine categories. As soon as a new market segment is recognized, there is a flood of “me too” magazines competing for readers and advertisers. iii. Long lead times. a. Advertisers are required to submit their ads as much as 90 days in advance of the date of publication. iv. Cost a. While the cost per contact in magazines is not nearly as high as in some media (direct mail in particular), it is more expensive than most newspaper space and many times the cost per contact in broadcast media. b. The absolute cost for a single insertion can be prohibitive. C. The Future of Magazines i. Two important factors need to be considered as influences on magazines as an advertising medium in the future. ii. Magazines will, like other media, have to determine how to adapt to new media options. Some marketers are publishing their own magazines for greater selectivity. iii. The second factor affecting the future of magazines is that publishers are exploring other ways to take advantage of the interactive digital environment beyond digital version publications.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 13: Media Planning: Newspapers, Magazines, TV and Radio

D. Discussion Activity 2 (PPT Slide 22; Time duration: 5 minutes) i. Magazines certainly proved to be the right media class for selling Absolut Vodka. a. Why are magazines a natural choice for vodka advertisements? 1. Student responses will vary. Given the restricted options available to spirits marketers, magazines were an obvious choice for Absolut’s revival campaign. E. Discussion Activity 2 Debrief (PPT Slide 23; Time duration: 5 minutes) i. What has Absolut done with its advertising to take full advantage of this medium? a. Answer: Absolut was able to accomplish much more with this medium than most of its competitors. Absolut used the visual capabilities of magazines to create advertising that approached artwork. The consistency of the campaign over many years made Absolut a wellknown brand name and elevated its image to one of prestige and distinctiveness. Absolut’s maker is so proud of its advertising it created a “virtual gallery” called the Absolut Vodka Virtual Museum that was made available to consumers on PC diskettes—a nice example of leveraging the brand-building power of a long-running traditional campaign into a new medium. https://www.emuparadise.me/Abandonware_Games/Absolut_Vodka_Vi rtual_Museum_(1994)(Absolut)/92231 IV. Television (LO 4, PPT Slides 24-33) i. With the benefit of sight and sound, color and music, action and special effects, TV advertising can be the most powerful advertising of all because it has advantages over all other media. ii. In many parts of the world, particularly in the United States, TV is the medium most widely used by consumers for entertainment and information. iii. Valuable opportunities for advertisers a. The diversity of communication possibilities allows for outstanding creative expression of a brand’s value. b. It can be disseminated to millions of consumers through multiple channels—broadcast, cable, satellite, and interactive means—often at a fraction of a penny per contact despite a relatively higher upfront investment. A. Television Categories i. Network television a. Network TV broadcasts programming over airwaves to affiliate stations across the United States under a contract agreement. b. Despite all the competition faced by network TV, the broadcast networks still continue to flourish—mostly due to innovative programming.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 13: Media Planning: Newspapers, Magazines, TV and Radio

ii.

iii.

iv.

v. vi.

vii.

Cable Television a. Cable TV transmits a wide range of programming to subscribers through wires rather than over airwaves. b. Cable’s power as an ad option has grown enormously as its share of the prime time viewing audience has increased. c. Aside from offering more channels and hence more programming, cable networks are also investing in the development of original programming to continue to attract well-defined audiences. Video on Demand a. One of the fastest-growing TV options is video on demand (VOD). b. Providers include Netflix, Amazon, Hulu, Disney+, and more. c. As more consumers turn to VOD for entertainment on their schedule and to avoid the heavy ad loads on broadcast and cable TV, media organizations are testing viewer-friendly promotional messages for VOD environments. Syndicated Television a. Television syndication is either original programming or programming that first appeared on network television. It is then rebroadcast on either network or cable stations with pending distribution on the Internet. b. Off-network syndication refers to programs that were previously run on network prime time. c. First-run syndication refers to programs developed specifically for sale to individual stations. d. Barter syndication takes both off-network and first-run syndication shows and offers them free or at a reduced rate to local TV stations, with some national advertising presold within the programs. Local Television a. Local TV is the programming other than the network broadcast that independent stations and network affiliates offer local audiences. Satellite a. Programming transmitted to audiences via satellite transmission is another popular option for consumers. b. Another version of satellite transmission is direct transmission or closed circuit. c. The distinction is the technology used for delivery. Streaming Services and Digital Downloads a. The next evolution of TV transmission is underway with programs being accessed by consumers over the Web, with tablet and smartphone streaming or downloads.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 13: Media Planning: Newspapers, Magazines, TV and Radio

“TV everywhere” capability is making its mark among today’s connected audiences, and the potential for reaching audiences has advertisers excited. B. Advantages of Television i. Creative Opportunities a. The overriding advantage of TV compared to other media is the ability to send a message using both sight and sound. ii. Coverage, Reach, and Repetition a. Television, in one form or another, reaches approximately 126 million households in the United States—an estimated 287 million people. b. These households represent every demographic segment in the United States, which allows advertisers to achieve broad coverage. c. No other medium allows an advertiser to repeat a message as frequently as TV. iv. Cost per Contact a. For advertisers that sell to broadly defined mass markets, television offers a cost-effective way to reach millions of members of a target audience. v. Audience Selectivity a. Television programmers are doing a better job of developing shows that attract well-defined target audiences. b. Narrowcasting is the development and delivery of specialized programming to well-defined audiences. c. Cable and satellite TV are far and away the most selective TV options. d. TV is the second-ranked advertising medium based on revenues (after digital) as it entails about 25 percent of all media advertising revenue in the United States—amounting to $60 billion. C. Disadvantages of Television i. Fleeting Message a. The fleeting nature of a TV message, as opposed to a print ad (which a receiver can contemplate), makes message impact difficult. ii. High Absolute Cost a. Although the cost per contact of TV advertising is the best of all traditional media, the absolute cost may be the worst. iii. Poor geographic Selectivity a. Although programming can be developed to attract specific audiences, program transmission cannot target small geographic areas nearly as well. iv. Poor Audience Attitude and Attentiveness

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 13: Media Planning: Newspapers, Magazines, TV and Radio

a. The involuntary and frequent intrusion of advertisements on TV has made TV advertising the most distrusted form of advertising among consumers. b. Because of this generally negative attitude toward TV ads, consumers have developed ways to avoid watching them. 1. Channel grazing refers to using a remote control to monitor programming on other channels while an advertisement is being broadcast. 2. Digital video recorders (DVRs) like TiVo provides viewers yet another way to avoid ads altogether. v. Clutter a. All the advantages of TV as an advertising medium have created one significant disadvantage: clutter, with many minutes per hour of programming devoted to advertising. b. Consumers feel this is too much, with 65 percent of survey viewers feeling they are bombarded with too much advertising. D. Measuring Television Audiences i. Television audience measurements identify the size and composition of audiences for different TV programming. a. Advertisers choose where to buy TV time based on these factors. These measures also determine the cost for TV time. b. The larger the audience or the more attractive the composition, the more costly the time will be. ii. TV Households a. TV households are an estimate of the number of households that are in a market and own a TV. iii. Households Using TV a. Households using television (HUT), also referred to as sets in use, is a measure of the number of households tuned to a television program during a particular time period. iv. Program Rating a. A program rating is the percentage of TV households that are in a market and are tuned to a specific program during a specific time period. Expressed as a formula, program rating is:

b. A ratings point indicates that 1 percent of all the television households in an area were tuned to the program measured. v. Share of Audience a. Share of audience is a measure of the proportion of households that are using television during a specific time period and are tuned to a particular program. E. The Future of Television

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 13: Media Planning: Newspapers, Magazines, TV and Radio

i. ii.

Streaming is likely a big part of the future of television. The prospects for TV’s future include greater viewer participation in programming. iii. A significant percentage of households are also “cutting the cord” by using entertainment-streaming sites to substitute for cable TV, which affects the size and composition of cable TV audiences and again this streaming media consumption can be measured with a simple total viewing hours accumulated. iv. Another issue in understanding today’s TV advertising environment relates to “ad loads” that consumers are willing to tolerate while watching on their TVs versus the much lighter ad load of online viewership. v. The “partnership” between TV and social media has many possibilities. vi. TV is very likely to hold its own as an entertainment and information medium. a. The convenience, low cost, and diversity of programming make TV an ideal medium for consumers. b. As a result, TV, despite its limitations, will continue to be an important part of the IBP mix for many advertisers. F. Discussion Activity 3 (PPT Slide 32; Time duration: 5 minutes) i. The costs involved in preparing and placing ads in television programming like the Super Bowl broadcast can be incredible. a. How is it that advertisers can justify the incredible costs that come with this media vehicle? 1. Answer: For advertisers like Pepsi, that sell to a broad market, network television offers a cost-effective way to reach millions of households. So, while the costs of a 30second spot during the Super Bowl can be more than a million dollars, running an ad during the Super Bowl can mean exposure to over 80 million households. On a costper-contact basis, the Super Bowl can be a good buy. G. Discussion Activity 3 Debrief (PPT Slide 33; Time duration:10 minutes) i. Program sponsorship is one way for advertisers to cut through the clutter of television advertising. b. What are some existing or potential television series or specials that would present powerful sponsorship opportunities for an advertiser? 1. Responses will vary. Sponsorship arrangements present a powerful opportunity for advertisers, who are able to stand out from the clutter of television advertising by paying for the production of a television program and dominating the advertising that appears in the program. For example, Gatorade financed about half the cost of the film Gracie,

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 13: Media Planning: Newspapers, Magazines, TV and Radio

released in 2007, about a girl who plays soccer on a boys’ team. V. Radio (LO 5, PPT Slides 34-41) i. The ability to reach consumers in multiple locations and the creative power of radio rank as important communications opportunities. A. Radio Categories i. Networks a. Radio networks operate much like television networks in that they deliver programming by satellite to affiliate stations across the United States. ii. Syndication a. Radio syndication provides complete programs to stations on a contract basis. Large syndicators offer stations complete 24-houra-day programming packages that relieve a station of any programming effort. iii. AM and FM Radio a. AM radio broadcasts, even the new stereo AM transmissions, cannot match the sound quality of FM. Thus, most AM stations focus on local community broadcasting or news and talk formats that do not require high-quality audio. b. FM radio stations transmit using frequency modulation (FM). FM radio transmission is of a much higher quality. Because of this, FM radio has attracted the wide range of music formats that most listeners prefer. iv. Satellite Radio a. The advantages of satellite radio have to do with variety of programming, more crisp and clear sound reproduction, access to radio in places where broadcast does not reach, and no ads (on most music stations). v. Internet/Mobile Radio a. Internet radio has a wide and enthusiastic following. b. Some digital radio is offered on a subscription basis, some is free; and the mix is constantly changing in line with consumer preferences and media company strategies. c. Mobile access once again provides advertisers the opportunity to reach target audiences while they are at the gym, on the train, jogging, or taking a walk in the park. B. Types of Radio Advertising i. In local spot radio advertising, an advertiser places advertisements directly with individual stations rather than with a network or syndicate. a. Network radio advertising is placed within national network programs. There are few network radio programs being broadcast.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 13: Media Planning: Newspapers, Magazines, TV and Radio

b. National spot radio advertising offers an advertiser the opportunity to place advertising in nationally syndicated radio programming. C. Advantages of Radio i. Cost a. From both a cost-per-contact and absolute-cost basis, radio is often the most cost-effective medium for an advertiser. ii. Reach and Frequency a. Radio has the widest exposure of any medium with 90 percent of the population over the age of 12 (243 million people in the United States) listening to radio in some form on a weekly basis. b. The low cost of radio time gives advertisers the opportunity to repeat messages at low absolute cost and cost per contract. iii. Target Audience Selectivity a. Radio can selectively target audiences on a geographic, demographic, and psychographic/lifestyle basis. b. The narrow transmission of local radio stations gives advertisers the best opportunity to reach well-defined geographic audiences. c. Radio programming formats and different dayparts (i.e., times during the day) also allow target audience selectivity. iv. Flexibility and Timeliness a. Radio is the most flexible medium because of very short closing periods for submitting an ad. v. Creative Opportunities a. Radio has been described as the “theater of the mind.” b. The musical formats that attract audiences to radio stations can also attract attention to radio ads. D. Disadvantages of Radio i. Poor audience Attentiveness a. Radio has also been described as “verbal wallpaper.” b. It provides a comfortable background distraction while the consumer does something else—hardly an ideal level of attentiveness for advertising communication. ii. Creative Limitations a. Although the theater of the mind may be a wonderful creative opportunity, the audio-only nature of radio communication is a tremendous creative compromise. iii. Fragmented Audiences a. A large number of stations try to attract the same audience in a market. b. This fragmentation means that the percentage of listeners tuned to any one station is likely very small. iv. Chaotic Buying Procedures

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 13: Media Planning: Newspapers, Magazines, TV and Radio

a. Because national networks and syndicated broadcasts do not reach every geographic market, an advertiser has to buy time in individual markets on a station-by-station basis. E. The Future of Radio i. Satellite radio generally minimizes advertising clutter and offers listeners multiple, detailed choices to match their listening preferences. ii. There has been a large degree of consolidation in the traditional radio markets. iii. Opportunities for consumers lie in the consistency of radio programming quality, and advertisers have an easier time buying and placing radio spots. iv. Access to radio via digital devices is changing where and when consumers listen and how actively they listen. F. Knowledge Check (PPT Slide 41; Time duration: 5 minutes) i. If 80 million households are using their TVs during a program’s time slot, and 6.25 million viewers are tuned to that particular program, what is the program’s share of audience? a. ~6 share b. ~8 share c. ~13 share d. ~80 share ii. Answer: B. ~8 share—Share of audience refers to the proportion of households that are using TV during a specific time period and are tuned to a particular program. a. 6,250,000 / 80,000,000 = .078125 x 100 = ~8 share [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 13: Media Planning: Newspapers, Magazines, TV and Radio

device use and their physical location. This media allows advertisers to make rapid changes in campaigns—changes that might take months to execute with traditional media. These changes in media options are affecting not only advertisers’ perceptions of how to develop effective campaigns but also the way they are investing their money on media. For example, advertisers seeking to reach consumers in very specific local areas have traditionally turned to newspapers, TV, and radio. They are still using those media, just not investing as much as in the past. Instead, advertisers are boosting media investments on digital, social, and mobile media because of more precise targeting capabilities and the opportunity to communicate when and where consumers are making brand decisions. The media environment does not have a predictable structure, and media companies are using analytics to properly position themselves for the new ways consumers seek out brand information. The future of effective advertising and IBP campaigns means synergizing digital, social, and mobile media with the use of traditional mass media, such as TV, radio, outdoor, and print advertising. 2. How must newspapers evolve in order to remain a viable advertising medium? a. Answer: To survive as a viable advertising medium, newspapers will have to evolve with the demands of both audiences and advertisers, who provide them with the majority of their revenue. Primarily, newspapers will have to leverage their role as the source for local news—which some newer media can’t always do as authoritatively. Some analysts refer to this opportunity for newspapers as hyper-localism, where people will get their global and national news online but turn to local newspapers to find sales on paint at the local hardware store. Some analysts suggest that newspapers consider adopting a pay-for-inquiry advertising model. A pay-for-inquiry advertising model is a payment model in which the medium, in this case newspapers, gets paid by advertisers based solely on the inquiries an advertiser receives in response to an ad. Radio, TV, and the Internet (pay-per-click) have been using pay-for-inquiry models of various types for several years. Other ways newspapers can adapt: 1. Continue to provide in-depth coverage of issues that focus on the local community. 2. Continue to provide some coverage of national and international news for readers who want both global and local news. 3. Provide consumers/buyers the option of shopping through an online newspaper computer service, similar to eBay or craigslist. 4. Take advantage of social media for local coverage of events, usergenerated content, and dialogues with readers. 5. Become more mainstream in IBPs relating to newer media.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 13: Media Planning: Newspapers, Magazines, TV and Radio

3. From the standpoint of a prospective advertiser, one of the disadvantages to newspaper and magazine advertising is clutter. Why is clutter a problem in reaching a target audience? a. Answer: The average printed newspaper is filled with headlines, sub-heads, photos, and announcements—not to mention news stories. This presents a terribly cluttered environment for an advertisement, especially when multiple advertisers in a product category try to use the same sections to target audiences. Magazines are not quite as cluttered as newspapers, but they still represent a difficult context for message delivery. The average magazine is about half editorial and entertainment content—content intended to inform or entertain— and half advertising material. With some magazines concentrated on narrowly defined audiences, advertising tends to be for brands directly competing with one other. An additional complication for magazine advertisers is the specific sort of clutter that can plague some magazine categories. As soon as a new market segment is recognized, there is a flood of “me too” magazines competing for readers and advertisers. 4. Think about the television viewing audience behavior you’ve observed in your household. Of the ways people avoid TV ad exposure discussed in this chapter, which have you observed in your household? What other avoidance tactics do your friends and family use? a. Answer: Answers will vary. One of the major disadvantages of television is selective exposure: Consumers use a variety of methods to avoid exposure to television ads. ads. The involuntary and frequent intrusion of advertisements on TV has made TV advertising the most distrusted form of advertising among consumers. Advertising breaks can be a perfect time to chat or run to the refrigerator for another icy cold beverage. High-tech avoidance also manifests in other ways: channel grazing, digital video recorders (DVRs), or watching the shows via a subscription-based streaming service. 5. Has the ability of radio listeners to select or build their own “stations” that play their preferred music genres and playlists through satellite/internet/mobile radio affected the media plans of advertisers? a. Answer: Now more than 15 years old, satellite radio features a variety of programming, more crisp and clear sound reproduction and access to radio in places where broadcast does not reach. Access to radio via digital devices is changing where and when consumers listen and how actively they listen. Satellite radio generally minimizes advertising clutter and offers listeners multiple, detailed choices to match their listening preferences. This is a huge advantage along with the increased audio quality, which is also a factor in HD (high definition) radio. Internet/mobile radio has a wide and enthusiastic following. Radio can selectively target audiences on a geographic, demographic, and psychographic/lifestyle basis. Various radio formats such

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 13: Media Planning: Newspapers, Magazines, TV and Radio

as hard rock, oldies, new age, easy listening, country, classical, news, and talk radio formats all attract different audiences. The musical formats that attract audiences to radio stations can also attract attention to radio ads. Research has revealed that audiences who favor certain music may be more prone to listen to an ad that uses songs they recognize and like. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 14: Media Planning: Advertising and IBP in Digital, Social and Mobile Media

Instructor Manual

CLOSE SCHEINBAUM, ADVERTISING AND INTEGRATED BRAND PROMOTION, 9E, 9780357721407; CHAPTER 14: MEDIA PLANNING: ADVERTISING AND IBP IN DIGITAL, SOCIAL AND MOBILE MEDIA

TABLE OF CONTENTS Purpose and Perspective of the Chapter ......................................................................... 2 Cengage Supplements ....................................................................................................... 2 Chapter Objectives ............................................................................................................. 3 Complete List of Chapter Activities and Assessments .................................................... 3 Key Terms ............................................................................................................................ 4 What's New in This Chapter ............................................................................................... 6 Chapter Outline .................................................................................................................. 7 Additional Discussion Questions ......................................................................................21

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 14: Media Planning: Advertising and IBP in Digital, Social and Mobile Media

PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to understand that the role of digital, social, and mobile in advertising and IBP is a crucial one. There is an array of creative and strategic options to brands available through digital or social media. To best execute in digital platforms, it is key to understand online consumer behavior, namely the importance of virtual identity for consumers and brands online. Digital advertising and search have progressed to automated media placement and keyword bidding, SEO, and platforms such as Google Ad Words. A change has come from looking at digital media investments as a function of CRM or CPC to advertising that largely hinges on display advertising, search advertising, or a combination of the two. Ecommerce can be leveraged by understanding search and online advertising; digital advertisers should look for ways to enhance click-through and conversions to sales. The advantages of digital, social, and mobile media for implementing advertising and IBP campaigns include target market selectivity and flexibility, interactivity, consumer engagement, ease of use, and the ability to leverage a consumer’s digital footprint with a brand relationship. The main dark-side issues are privacy, security, and authenticity concerns. For advertisers, negative effects include click fraud, negative social media conversations harming brand perceptions, and content adjacent to messages. Digital and social media have many advantages for implementing advertising and IBP campaigns and synergize with various IBP tools such as advergaming, sponsorship, events, viral video, mobile marketing, email, sampling, POP, and traditional media. The next frontier is advertising and measurement across devices—meaning how to plan, place, execute, and measure message exposure and engagement on digital, social, and mobile media.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 14: Media Planning: Advertising and IBP in Digital, Social and Mobile Media

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Guide to Teaching Online (provides information about the key assets within the product and how to implement/facilitate use of the assets in synchronous and asynchronous teaching environments)

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 14-1

Describe the synergistic role of digital, social, and mobile media in advertising and IBP along with the options available to brands in these media.

14-2

See the importance in virtual identity for consumers and brands online.

14-3

Discuss the basics of digital advertising and search.

14-4

Understand the basics of e-commerce as related to IBP and how it can stem from online advertising, social media, mobile, and search.

14-5

Identify the advantages of digital, social, and mobile media for implementing advertising and IBP campaigns, along with the dark side of social media, such as security and privacy concerns.

14-6

Understand how to synergize with different IBP tools.

Activity/Assessment

Source (i.e., PPT slide, Workbook)

Icebreaker

PPT Slide 3

14-1

Discussion Activity 1

PPT Slide 16

10 minutes

14-1

Discussion Activity 1 Debrief

PPT Slide 17

5 minutes

Duration

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 14: Media Planning: Advertising and IBP in Digital, Social and Mobile Media

14-3

Discussion Activity 2

PPT Slide 31

10 minutes

14-3

Discussion Activity 2 Debrief

PPT Slide 32

5-10 minutes

14-5

Discussion Activity 3

PPT Slide 42

5-10 minutes

14-5

Discussion Activity 3 Debrief

PPT Slide 43

5-10 minutes

14-6

Discussion Activity 4

PPT Slide 48

10-15 minutes

14-6

Discussion Activity 4 Debrief

PPT Slide 49

5-10 minutes

Knowledge Check

PPT Slide 50

5 minutes

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KEY TERMS Advergaming Advertising and brand placement within video games. App Ads An ad within a Web, tablet, or smartphone application (i.e., app) that is associated with a third party. Bounce Rate The percentage of people who come from or go to another site after clicking on a website. Click-Through A measure of the number of page elements (hyperlinks) that have actually been requested (i.e., “clicked through” from the display/banner ad to the link). Click Fraud Occurs when a company’s ads are clicked not by actual humans but by bots designed to mimic what Internet users do, causing the advertiser to overpay. Cost-Per-Click (CPC) Digital advertising revenue model based on cost-per-thousand exposures. Cyber-Identity Theft Having one’s identity stolen by online or digital means. Digital Footprint The trail of social media posts, videos, photos, status updates, and online information on a person, organization, or brand. Display Ads Advertisements placed on websites that contain editorial material.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 14: Media Planning: Advertising and IBP in Digital, Social and Mobile Media

Earned Media The incremental exposure that a brand earns through viral engagement and consumer interactions with the brand. Ephemeral The content lasts for just a short time. Fake News Could range from incorrect information that is inaccurate and attention getting without credible sources to completely made-up stories in general. Interactivity Two-way communications that can feed off one another, an advantage of digital media. Interstitial An ad that loads while you browse; they appear on a site after a page has been requested but before it has loaded and stay onscreen long enough for the message to be registered. Location-Based Technologies Often associated with mobile; use geographical coordinates to determine where the person is and can synergize with digital advertising for nearby businesses. Microblogs Social networking services that enable users to post and read short messages, for instance, Twitter. Posters are restricted by the number of characters in the message. Mobile Applications The apps on a smartphone for the digital media platform. Native Advertising An ad seemingly in its natural environment and part of the content such as a news feed. Online Resistance An attitude or behavior against the digital movement at times. For some consumers, and for the authors as well, social networks are designed as a vehicle that connects us with people who have at one point graced our lives. Owned Media Brand assets or objects created within social networks by a particular organization, such as a Facebook page or an application. Paid Media Media that are paid for on social media or other media; advertisements that can be purchased on a social network or other digital platforms. Paid Search The process by which advertisers pay websites and portals to place ads in or near relevant search results based on key words. Post Ads Ads in a social media post that tend to have higher relative response rates because they are within a consumer’s post to their network of friends and friends of friends.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 14: Media Planning: Advertising and IBP in Digital, Social and Mobile Media

Privacy Seal Logo on certain websites that show the site has been endorsed or is a member of a third-party privacy endorser of privacy. Retargeting Serving consumers digital ads that are directly based on past online content they’ve clicked on. Search Often refers to information search, or a stage in consumer behavior process where the customer seeks out information or a specific product or brand either online or offline. Search Engine Optimization (SEO) Utilizing a search engine to a company’s best advantage. Site Stickiness A digital marketing metric measured by how long a consumer stays on a website or page. Social Couponing Sites that give or sell price discounts under the condition that a set number of other consumers buy or download the deal. Subject Matter Expert A person who has extensive experience and/or knowledge about a specialty area and are often used as sources in journalism or research. Viral Marketing The process of consumers marketing to consumers over the Internet through word of mouth transmitted through emails and electronic mailing lists. Virtual Identity This is how the consumer or brand uses images and text online to construct or showcase identity. Web 2.0 The progression of the Internet to interactive online communication, participation, and engagement. Web 3.0 A stage of Internet progression which entails sites and e-services that use machine learning and artificial intelligence to interpret a web full of data.

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WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition: •

New key terms:

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 14: Media Planning: Advertising and IBP in Digital, Social and Mobile Media

o o o

Bounce rate Site Stickiness Web 3.0

•

Digital ad integration with e-commerce

•

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The Role of Digital, Social and Mobile Media for IBP Synergy (LO 1, PPT Slides 517) i. The role of digital, social and mobile media in advertising is a big one, and one that is here to stay and grow with new technology such as mobile media. ii. New media bring new vernacular to consumers. a. Friend me. Tweet that. Facetime? Have a client Zoom meeting. LinkedIn him for a job lead. Groupon. Re-tweet that. Facetime tonight? b. These online terms and brands have changed the way of online consumer behavior, advertising, and branding—and the way one can search for and obtain a career in advertising or otherwise. c. Hence, it is crucial to understand how consumers think, feel, and act regarding social media, online advertising, and e-commerce.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 14: Media Planning: Advertising and IBP in Digital, Social and Mobile Media

iii.

More and more media buys are being made programmatically, a trend that is increasing even as digital, social, and mobile media are evolving. A. Social Media and Web 3.0 i. Web 2.0 distinguishes the progression of the Internet to interactive online communication, participation, and engagement. ii. The next stage is the transition to Web 3.0, which entails sites and eservices that use machine learning and artificial intelligence, to interpret a web full of data. iii. Users can now create information and post comments while adding (or subtracting with a negative post) value to socially embedded websites. This content is called user-generated content (UGC) a. Modern web usage depends on mass collaboration as individuals simultaneously create value for themselves and others. iv. Yet even with an increasingly digital focus, it is paramount for advertisers to use digital, social, and/or mobile media in a synergistic way that supports other forms of IBP, such as outdoor, print, public relations, or events. B. Media Types in Social Media i. There are three media types in social media: earned, owned, and paid. a. Earned media is the incremental exposure that your brand earns through viral engagement and interactions with the brand. b. Owned media are brand assets or objects created within social networks by your organization, such as a Facebook page or an application. c. Paid media are advertisements that can be purchased on a social network or other digital platforms. ii. It is important for brands to embrace social media because it can garner digital engagement in a measurable way with likes, clicks, shares, and so on. C. Options via Digital or Social Media: Definitions and Categories i. Definitions of Social Media a. Social media are “media designed to facilitate dissemination of content through social interaction between individuals, groups and organizations using Internet and web-based technologies to enable the transformation of broadcast monologues (one to many) into social dialogues (many to many).” b. Social media are accessible in that they are simple to find and use for a broad audience and they are scalable, as network effects play a key role. ii. Social Media Categories a. Social Networking Websites 1. Social networking sites and apps are services on which users can create an individual profile page, find and add

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 14: Media Planning: Advertising and IBP in Digital, Social and Mobile Media

friends and contacts, send messages, and update their personal profiles to notify friends, contacts, or colleagues about themselves. Examples include Facebook, Twitter and Instagram. 2. Mobile applications (i.e., the applications or apps on a smartphone for the social media platform). 3. Video and photo sharing orientations such as YouTube and TikTok 4. Snapchat is known as the ephemeral video social media platform, as the video content disappears after a brief amount of time. Ephemeral means that the content lasts for just a short time. 5. Location-based technologies, often associated with mobile, use geographical coordinates to determine where the person is and can synergize with digital advertising for nearby businesses. b. Video and Photo Sharing Websites 1. A favorite of many consumers to show their Starbucks cups with misspelled names, new purchases, family, friends, and pets, as well as some stupidly funny sightings such as a baby monkey riding on a pig’s back or a goat that sounds like a yelling human (juxtaposed over Taylor Swift music).These websites allow users to watch, upload, and share videos. 2. The best known of the video sharing websites, or social media sites that have consumers and companies upload videos and watch others’ videos for free, is YouTube, which dominates market share. 3. There is a fine line between social media video and photo sharing sites because these platforms are constantly evolving, repositioning, and rolling out new features. 4. Other social media sites/apps—such as Instagram—are oriented around picture and video sharing. 5. Social media websites and mobile applications are positioned in the consumer’s mind based on how they personally use(s) the site and or its features (e.g., posts, groups, reactions, etc.). 6. This can be problematic when some things that are perceived as credible news with legitimate sources are shared. Some have attributed social media with contributing to fake news, which could range from incorrect information (misinformation) that is inaccurate,

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 14: Media Planning: Advertising and IBP in Digital, Social and Mobile Media

attention-getting and unsubstantiated, to completely fabricated stories in general. c. Blogs 1. Blogs are sites maintained and written by individuals but hosted and technically owned by an organization that provides access to Web space and a content management system. 2. Micro-blogs are social networking services that enable users to post and read short messages. D. Discussion Activity 1 (PPT Slide 16, Time duration: 10 minutes) i. Location-based technologies use geographical coordinates to determine where the person is and can synergize with digital advertising for nearby businesses. a. How do you think consumers feel about the use of locationbased mobile-marketing techniques for advertising messages and IBP programs? 1. Answer: Responses will vary. On the one hand, it is easy to envision some outrage over the intrusion of advertising on mobile devices. On the other hand, research is showing that people are not really upset when they do receive messages. People all over the world voluntarily participating in IBP programs. E. Discussion Activity 1 Debrief (PPT Slide 17, Time duration: 5 minutes) i. Do you automatically allow location-based services to be activated when you install a new app on your phone? Or do you deny the app access? a. Answer: Responses will vary. Students can feel free to discuss why they chose to activate or not activate location services on their phones. ii. What impact does this have on an advertiser’s ability to reach you? a. Answer: Responses will vary. Students may elect to not activate location services for the specific purpose of avoiding advertisements that seem to follow them. Or they may activate location services specifically to receive notice of places running special deals near their area. II. Consumer and Brand Virtual Identity (LO 2, PPT Slides 18-24) A. Consumer Virtual Identity i. Virtual identity is how the consumer or brand uses images and text online to construct or showcase its identity. ii. This concept is crucial to understand as it relates to IBP, social media, and digital advertising.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 14: Media Planning: Advertising and IBP in Digital, Social and Mobile Media

iii.

Consumers have their “real-world” image. The twist is that this image is not necessarily congruent with their image in the virtual world. We must understand that virtual identities are indeed real to consumers. Understanding this concept can help consumer-minded businesses and organizations cater better to customer wants. B. Social Media as a Brand Management Tool: Brand Image and Visibility i. Social media are important tools for brand managers who are keenly interested in establishing and maintaining a brand image, reputation, or position. ii. Especially during times of crisis (e.g., after an oil spill), companies are expected to communicate directly with the impacted consumers and their communities. iii. A predominant concern relates to privacy, so brand managers must keep their consumers’ identities as a trusted component of their relationship. iv. Brand managers must track what is being said by consumers, interpret consumer-generated information, and respond to social media posts and comments. This entails spending time scanning Facebook, following Twitter feeds, looking at Pinterest pins, and reading comments on YouTube. v. In addition to monitoring electronic word of mouth, managers are keenly interested in metrics from any social media and social media ads. a. Some metrics from Internet advertising do apply to social media. 1. Site stickiness, or how long someone spends on a site, is a relevant metric. 2. Bounce rate, or the percentage of people who come from or go to another site after clicking on your site, is also relevant. 3. Engagement with the social media site—although digital over engagement can be a negative for consumers and advertisers. vi. It is not a question of traditional or digital; it is how to seamlessly integrate both. III. Basics of Digital Advertising and Online Search (LO 3, PPT Slides 25-32) A. Digital Advertising Investments i. The way media is bought and sold is changing drastically and becoming increasingly automated; this fact is especially true and relevant in digital, social media, and mobile advertising. a. This bid-based (often automated) model of advertising payment works via bidding for specific ad words in search engines and social media sites. ii. For social media advertising to be effective, the brand page must have a fan base.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 14: Media Planning: Advertising and IBP in Digital, Social and Mobile Media

iii.

Not all digital or mobile advertisers use keyword bidding or automated media buying because some advertisers worry about the lack of control they would have over what websites would feature their digital or mobile ad. a. Some digital advertising based on cost-per-click (CPC), a revenue model where the advertiser is charged by the number of people who click on, or tap, the ad to pull it up for more information or to see the ad in its entirety. 1. An advantage is that the advertiser can pay for a pulled exposure rather than a message pushed to all watching that TV channel or reading that magazine. 2. A disadvantage is in click fraud, where this process could be exploited in unethical or even illegal ways. iv. Types of Digital Ads a. Social Media Ads 1. Note that even within one social media site, such as Facebook, there are different types of ads. 2. Post ads are ads in a post and tend to have higher relative response rates because they are within a consumer’s post to his or her network. May be a form of native advertising because the ad seemingly is in its natural environment and a part of the content, such as the news feed. 3. App ads are ads associated with third party application and tend to generate consumer loyalty and can provide consumer data for more accurate keyword targeting. b. Display Ads 1. Display Ads are paid placements of advertising on sites that contain copy or images. 2. One feature of a display/banner ad is that consumers can click on the ad (click-through). 3. Well suited to generating awareness for new products and for brand building but the downside to display ads is the clutter. 4. A more targeted option is to place these ads on sites that attract specific market niches. c. Interstitial Ads 1. Interstitial ads load while consumers browse. This can be called “pre-rolls”. 2. Consumers are practiced at ignoring such ads so it is important to remember that digital ads do not always have the desired exposure. B. Search

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 14: Media Planning: Advertising and IBP in Digital, Social and Mobile Media

Search is electronic search; it refers to how consumers look for ideas, brands, and information online for purchases or entertainment. ii. Online awareness and social media tactics are means to enhance online advertising effectiveness and consumer search. iii. Paid Search and Search Engine Optimization a. Paid search is the process by which advertisers pay websites and portals to place ads in or near relevant search results based on key words. For example, if you Google “running shoes,” you will find links to Wilson, and Prince next to the search results as sources for purchasing tennis shoes. b. Another key paid search concept is search engine optimization (SEO). SEO is a process whereby the volume and quality of traffic to a website from search engines are improved based on browsers’ profiles. c. Consider these facts about paid search and SEO: 1. The first three paid advertising spots receive most of the clicks on the page. 2. Google searches for cost-per-click on Google have decreased significantly since June 2004 3. Search volume on AdWords Google Trends has risen. C. Discussion Activity 2 (PPT Slide 31; Time duration: 10 minutes) a. The Internet was not conceived or designed to be an advertising medium. Thus, some of its characteristics have proven perplexing to advertisers. a. If advertising professionals had the chance to redesign the Internet, what single change would you expect they would want to make to enhance its value from an advertising perspective? 1. Answer: Responses will vary. If advertising professionals were given a free hand to redesign the Internet, they probably would do many things: We suspect that audience measurement would be at the top of their wish list. The anonymity of the Web user makes ad-efficiency assessment difficult. If they were redesigning the current rules, advertisers might require all Web users to apply for a “driver’s ID” as a condition of passage. While these IDs would be free of charge, individuals would have to identify themselves and provide basic descriptive information to get an ID. Signing on to the Web would require posting an ID number. Advertisers would get concrete data on site traffic and up-todate information on the kind of persons who use various sites. This is beginning to take place with new “opt-in,” permissionbased marketing. Opt-in marketing allows advertisers to gather much personal information without violating consumer privacy.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 14: Media Planning: Advertising and IBP in Digital, Social and Mobile Media

D. Discussion Activity 2 Debrief (PPT Slide 32; Time duration: 5-10 minutes) a. What are the challenges that face advertisers when they try to measure the impact of advertising and IBP digital and interactive campaigns on the Internet? a. Answer: Responses will vary. There are all sorts of problems with metrics that can be obtained regarding Internet traffic. b. If you were manager, which metric(s) would you rely on to judge success of a campaign? a. Answer: Responses will vary. Some students will argue that “sales” should be the one and only statistic that counts. Once again, this is a chance to drive the idea home that advertising and IBP cannot be responsible for sales—it takes a complete marketing mix. If a digital campaign is good enough to get a consumer to a website or an ecommerce site, then brand features, pricing, and distribution have to take over from there. IV. Importance of IBP in E-Tail: Emergence of Social E-Commerce and Big Data (LO 4, PPT Slides 33-35) i. Big Data is all the rage, with advertisers analyzing consumers’ digital, social media, and mobile behavior. ii. The goal is to deliver more relevant, useful and appreciated ads or to offer reminders that are specific to consumer wants and needs. iii. Retargeting is serving consumers ads based on online consumer behavior. a. For example: you click on a coat on Nordstroms.com and then later see an ad for that same coat. It is known as behavioral targeting as well, although technically that is a broader term. iv. Digital advertising or social media plugs may spark consumers to browse various shopping sites, place items or service tickets into virtual shopping carts, and hopefully convert cart placements into sales and longer-term relationships. V. Advantages of Digital, Social and Mobile Media for Implementing Advertising and IBP Campaigns, as Well as the Dark Side (LO 5, PPT Slides 36-43) A. Advantages of Digital, Social and Mobile Media i. Advantages of digital and social media include interactivity, target market selectivity, integration, and ease of use, and it is a way to engage and integrate brands with consumers’ lifestyles that they have shared in their open book—or digital footprint, the trail of social media posts, videos, photos, status updates, and online information on a person, organization, or brand. ii. Interactivity a. Interactivity is a two-way communication that can feed off one another is an advantage of digital media.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 14: Media Planning: Advertising and IBP in Digital, Social and Mobile Media

b. Click-through is a measure of the number of page elements (hyperlinks) that have actually been requested (i.e., “clicked through” from the display/banner ad to the link). iii. Integration a. It is digital and mobile advertising is most easily integrated and coordinated with other forms of promotion. b. The integration of Web activities with other components of the marketing mix is one of the easiest integration tasks in the IBP process. iv. Engagement via a Digital Footprint a. Companies, non-profits, and human brands alike can engage others via their online presence. b. Your personal information is readily available online if you choose to make it so in social media. c. The information that you share creates a “digital footprint,” defined as your profile of personal information, accessible online to a spectrum of people. E. Privacy Issues and the Dark Side of Digital, Social and Mobile Media i. The Dark Side a. One of the issues is inauthenticity—which could even entail fraud. b. The thought of having one’s identity stolen by online or digital means, or cyber-identity theft, is enough to inhibit some consumers from shopping and banking online. c. It is critical to explore consumer perception of both privacy and security, because security refers to how safe the site or app is, and privacy is more about how the host maintains consumer data and online consumer behavior. ii. Online Resistance a. There is some online resistance which is an attitude or behavior against the digital movement at times. b. If done correctly, there can be some subtle synergies from online advertisers that can actually enhance one’s social networking experience. iii. Privacy and Information in Social Media a. Marketplace exchanges embedded with social media may be more publicly visible. b. Privacy involves the control of information disclosure and unwanted intrusions into a consumer’s environment. c. Often, online consumers do not use the privacy tools available to them, such as clearing out needless cookies, reading privacy policies, or paying attention to logos that show the site has been

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 14: Media Planning: Advertising and IBP in Digital, Social and Mobile Media

endorsed or is a member of a third-party privacy endorser, known as a privacy seal. iv. Main Social Media Platforms and Disclosure a. Disclosure on each of these main platforms (e.g. Google+, Facebook/Instagram, LinkedIn, and Pinterest) helps you build and maintain relationships and conduct business. b. Is your social media digital footprint ready for employers to see? If not, you may try to find ways to keep your social media activity private. Realizing that future employers do not want to see spring break trips, fraternity parties, and your brother’s new dog, you may keep your settings private. c. If done correctly, there can be some subtle synergies from online advertisers that can actually enhance one’s social networking experience. d. With LinkedIn, it is simple and convenient to share relevant content with specific groups who would be interested, positioning yourself as a subject matter expert (SME) in the process. ii. Negative Effects for Advertisers a. Billions of dollars in advertising funds are being lost to click fraud. b. Another concern is that social media conversations initiated by consumers will harm brand perceptions. c. A third concern for advertisers is what kind of content will be adjacent to digital, social, and mobile ads. F. Discussion Activity 3 (PPT Slide 42; Time duration: 5-10 minutes) i. What unique characteristics of digital/interactive advertising and IBP offer advantages over traditional forms? a. Answer: Responses will vary. Digital/interactive advertising and IBP have many advantages over traditional forms. Digital and interactive campaigns can target market segments with amazing precision while tracking and quantifying results in real time. The deliverability and flexibility associated with the 24/7 presence of the Web means consumers can see advertisements any time night or day. The clickthrough interactivity of the Internet enables consumers to respond to advertisements at the moment of contact. Finally, the cost of digital and interactive advertising and IBP is relatively low, and it integrates easily with other forms of promotion. G. Discussion Activity 3 Debrief (PPT Slide 43; Time duration: 5-10 minutes) i. What is it about the Web that makes it such a powerful tool for niche marketing? a. Answer: The Internet is ideally suited for niche marketing—that is, for reaching only those consumers most likely to buy what the marketer is selling. This aspect of the Internet as an

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 14: Media Planning: Advertising and IBP in Digital, Social and Mobile Media

advertising option has always been its great attraction: the ability to identify segments and deliver almost customized (or in the case of email, actually customized) messages directly to them—one by one. Small communities of like-minded individuals are constantly evolving on the Web. The Web provides them with a tool for finding and interacting with one another. These individuals are drawn to one another because of common interests and lifestyles. These new Web communities might be thought of as market niches. The Web provides both the device that allows them to emerge and the means to reach them with information about products and services. VI. Synergizing with Other IBP Tools (LO 6, PPT Slides 44-48) i. It is a must-do to synergize a brand’s digital presence with the other marketing tools in your toolkit. Not every communication or sales objective needs a hammer (national advertising); some objectives are much better suited to a precise, small screwdriver (a local event sponsorship). A. Video Games and Advergaming i. The average game player is around 30 years old, and the most frequent game buyer is around 35. Almost half of the players are women. This is an attractive demographic and psychographic, as gamers are relatively young, digital, on social media, and have peer influence. ii. Different than an ad shown during a game, advertising and brand placement within video games is called advergaming. a. A question for advertisers to examine is the effectiveness of ingame placement at each level. b. Can have a negative effect on players’ attitudes toward embedded brands, which could be due to a wear-out effect, also seen in some traditional advertising research. c. Advergames are under ethical scrutiny, especially when geared toward children. B. Sales Promotion i. The digital and interactive options on the Internet are ideally suited to executing various aspects of sales promotion as part of the IBP effort. ii. Coupon distribution and contests are the leading tools that are well suited to digital/interactive implementation, but sampling and trial offers can be promoted as well. iii. Coupons a. Companies such as Retail-Me-Not from Austin, Texas, share online coupon codes with the world for e-commerce. b. Other social couponing sites, or sites that give or sell price discounts under the condition that a set number of other

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 14: Media Planning: Advertising and IBP in Digital, Social and Mobile Media

consumers buy or download the deal, like Groupon, distribute coupons via the sites of other commercial online services. iv. Contests and Sweepstakes a. A contest often entails showing a skill, rather than a sweepstakes which is more of a game of chance. v. Sampling, Trial Offers, Price-Off Deals a. Firms can use their websites or email communications to offer consumers a wide range of sales promotion special deals. Samples, trial offers, and price-offs (discounts) can be offered over the Internet either with email campaigns, pop-up or banner ads, or directly at the company website. C. Public Relations and Publicity i. Companies can use the Web to disseminate information about the firm in a classic public relations sense. Web organizations like Business Wire (www.businesswire.com) and PR Newswire (www.prnewswire.com) offer services where firms can request the dissemination of a press release over the Internet. D. Direct Marketing and E-Commerce i. Aside from the direct contact through email, mobile marketing, or virtual mail, direct marketing efforts can be coordinated with traditional media advertising campaigns by directing consumers to either company websites or e-commerce sites. ii. Email a. The strength of email marketing stems from its inherent low cost and media advantages. 1. Email is one of the least expensive marketing tools and provides the highest return on investment relative to other forms of online marketing. 2. Email marketing is fast, flexible, and up to date. 3. Email’s further edge over other communication media is the wide variety of scopes for design (e.g., pictures, sounds, Flash animations, or videos). b. Disadvantages 1. Spammers have compromised privacy and tainted the general attitude toward email marketing messages. 2. The second veritable challenge confronting marketers is information overload and consumers’ desire to cut through online clutter. 3. Technical inhibitors prevent the video from downloading promptly and easily. 4. May reach the recipient in a place where the video could disturb others with the sound. iii. Viral Video

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 14: Media Planning: Advertising and IBP in Digital, Social and Mobile Media

a. While it sounds like a disease, viral is a good thing in industry lingo. b. The top viral brand messages have over 100 million views. Consumers or advertisers can encourage viral marketing. c. Viral marketing is the process of consumers marketing to consumers over the Internet through electronic or in-person word of mouth transmitted through emails and electronic mailing lists. E. Mobile Marketing and M-Commerce i. Mobile marketing is the process of optimizing digital content for reaching consumers on Internet-enabled mobile devices like smartphones, iPods, and tablet e-readers. ii. Consider these statistics about mobile marketing: a. Over half (53 percent) of paid-search clicks are from mobile devices, b. Almost seventy percent of mobile searchers call the business found on the search directly from Google Search, and c. Almost forty percent of Google searches are associated with location. These statistics point to a big opportunity in mobile. iii. We stress the need for cross-device measurement, or measuring advertising effectiveness on various forms of digital advertising, because online consumer behavior is often with multiple screens. Consider how you watch TV for instance, if at all. It may be with a laptop on and with a smartphone in your hand. This reflects the need for the integration and synergy among advertising and IBP that we have made a key emphasis on for this book. iv. With the importance of cross-device advertising in mind, we now focus on mobile advertising from both a business and ethics lens due to the privacy issues therein with location-based marketing. v. With the importance of cross-device advertising in mind, we now focus on mobile advertising from both a business and ethics lens due to the privacy issues therein with location-based marketing. a. It is not only that email campaigns, text messaging, or sales promotions will reach mobile users directly on their devices, firms can also sponsor mobile videos that are downloaded on video handsets. b. IBP communications delivered through mobile devices achieve surprisingly high recall and effectiveness if the consumer prefers to enable his/her/their location. c. Privacy concerns with mobile marketing and location-based services or geo-tracking; advertisers should be careful about consumer privacy concerns.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 14: Media Planning: Advertising and IBP in Digital, Social and Mobile Media

iii.

The next frontier involves advertising and measurement across devices—meaning how to plan, place, execute, and measure message exposure and engagement on digital, social, and mobile media. F. Discussion Activity 4 (PPT Slide 48; Time duration: 10-15 minutes) i. Do shoppers really enjoy the online shopping experience? a. Make one list of things you enjoy about shopping in stores and create a separate list of things you like about shopping online. How do your lists differ? 1. Answer: Responses will vary, but students should reflect on their personal shopping experiences and digital habits as they think about both the opportunities and limits of digital media. b. What are the advantages and disadvantages of shopping in a physical store? 1. Answer: Advantages of shopping in a physical store include immediate receipt after purchase and you are able to try it out/on and make sure you like it. In some cases, you can also shop at smaller businesses and support your community while finding rare or unique products. Disadvantages include being limited to what the store has in-stock. You may be forced to travel to different locations to get exactly what you want or may be forced to order it because the stores either don’t have it, or don’t carry large items to save space in the stock room. c. What are advantages and disadvantages of shopping online? 1. Shopping online allows you to view a larger range of products without having to drive to multiple locations. It also shows all available options/colors for what you are looking for, and you don’t have to do any work. A disadvantage is that you still run the risk of the item(s) being out-of-stock, and you have to wait for the product(s) to be delivered. G. Discussion Activity 4 Debrief (PPT Slide 49; Time duration: 5-10 minutes) i. Can Internet based businesses deliver the rich shopping experience that brick-and-mortar stores provide? a. Answer: Responses will vary. In the early Web era, e-commerce and online advertising focused heavily on transactions; today’s digital marketers are looking to create experiences that enable customers to connect emotionally with brands online. Smart emarketers try to engage online customers more personally through a mix of hip content, social networking, interactive media, and blogs.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 14: Media Planning: Advertising and IBP in Digital, Social and Mobile Media

ii.

How might smartphones and other handheld devices change the way people shop? a. Answer: Some analysts have suggested that smartphones and apps will cause digital media consumers and shoppers to focus strictly on transactions, due to their small size. H. Knowledge Check (PPT Slide 50; Time duration: 5 minutes) i. Which of the following describes an advertising revenue model where the advertiser is charged by the number of people who click on an ad? a. Site stickiness b. Cost-per-click c. Click-through d. Bounce rate ii. Answer: B. Cost-per-click—In the past, and still the case for some digital advertisers, digital advertising has had revenue models based on cost-per-thousand exposures (CRM) or cost-per-click (CPC). CPC is an advertising revenue model where the advertiser is charged by the number of people who click on, or tap, the ad to pull it up for more information or to see the ad in its entirety. Thus, when you see an online ad and click on it, the advertiser is charged. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 14: Media Planning: Advertising and IBP in Digital, Social and Mobile Media

embedded websites. This is user-generated content (UGC) or consumergenerated content (CGC). Modern web usage depends on mass collaboration as people simultaneously create value for themselves and others. In a marketing context, there is a focus on brands and organizations “liked” and mentioned through network effects, including viral sharing. Similarly, organizations reach and interact with existing customers online and via social media while becoming part of customer conversations and solutions with their products or services. Digital marketing continues to change the landscape of advertising and branding. Yet even with an increasingly digital focus, it is paramount for advertisers to use digital, social, and/or mobile media in a synergistic way that supports other forms of IBP, such as outdoor, print, public relations, or events. 2. What unique characteristics of digital, social and mobile advertising and IBP offer advantages over traditional forms? a. Answer: Digital/interactive advertising and IBP have many advantages over traditional forms. Advantages of digital, social, and mobile media include interactivity, target market selectivity, integration, and ease of use. These media offer a way to engage and integrate brands with consumers’ lifestyles as revealed by their digital footprint, the trail of social media posts, videos, photos, status updates, and online information on a person, organization, or brand. A plus for digital, social, and mobile media is their popularity and the frequency with which consumers use these media. Another plus is the sheer breadth of social media sites. Digital and interactive campaigns can target market segments with amazing precision while tracking and quantifying results in real time. The deliverability and flexibility associated with the 24/7 presence of the Web means consumers can see advertisements any time night or day. The click-through interactivity of the Internet enables consumers to respond to advertisements at the moment of contact. Finally, the cost of digital and interactive advertising and IBP is relatively low, and it integrates easily with other forms of promotion. 3. What are the challenges that face advertisers when they try to measure the impact of advertising and IBP digital and interactive campaigns on the Internet? If you were manager, which metric(s) would you rely on to judge success of a campaign? a. Answer: There are all sorts of problems with metrics that can be obtained regarding Internet traffic. In addition to monitoring electronic word of mouth, managers are keenly interested in metrics from any social media and social media ads. There are questions around social media measurement. For instance, even though digital measurement helps place media accurately, why does such precise targeting bring consumer resistance? What is digital engagement? And then, once finding the count of how many consumers like a

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 14: Media Planning: Advertising and IBP in Digital, Social and Mobile Media

brand on Facebook, you may wonder, “what is a ‘like’ really worth?” Some metrics from Internet advertising do apply to social media. For instance, site stickiness, or how long someone spends on a site, is a relevant metric. Bounce rate, or the percentage of people who come from or go to another site after clicking on your site, is also relevant. Another metric more specific to social media is engagement with the social media site—although digital over engagement can be a negative for consumers and advertisers. Of all the metrics, click-through means the most. Some students will argue that “sales” should be the one and only statistic that counts. Once again, this is a chance to drive the idea home that advertising and IBP cannot be responsible for sales—it takes a complete marketing mix. If a digital campaign is good enough to get a consumer to a website or an e-commerce site, then brand features, pricing, and distribution have to take over from there. 4. While digital, social and mobile media has created opportunities for connectivity, integration and engagement, there are some negative aspects that must be considered. Identify the aspects of the “dark side” of digital, social and mobile media. Are there any negative effects for advertisers? a. Answer: One cannot have a responsible conversation about digital, social, and mobile media without discussing the role of authenticity, privacy, security, and related fears about one’s personal and financial information. One of the issues is inauthenticity—which could even entail fraud. It is harder to judge authenticity behind a screen. The thought of having one’s identity stolen by online or digital means, or cyber-identity theft, is enough to inhibit some consumers from shopping and banking online or via an app. It is critical to explore consumer perception of both privacy and security, because security refers to how safe the site or app is, and privacy is more about how the host maintains consumer data and online consumer behavior. Marketplace exchanges embedded with social media may be publicly visible. Privacy involves the control of information disclosure and the prevention of unwanted intrusions into a consumer’s environment. In this era, privacy now encompasses control over personal exchanges that use information technology to enhance autonomy or minimize vulnerability, which can diminish covert marketing practices online. Some negative effects on advertisers include billions of dollars in advertising funds are being lost to click fraud. Another concern is that social media conversations initiated by consumers will harm brand perceptions. A third concern for advertisers is what kind of content will be adjacent to digital, social, and mobile ads. 5. Brands are expanding digital campaigns to include Snapchat, Facebook, Instagram, Twitter, and YouTube. What can an effective campaign do to establish sustained interaction with customers? What features do the campaigns use to hold consumers’ interest?

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 14: Media Planning: Advertising and IBP in Digital, Social and Mobile Media

a. Answer: Answers will vary. Most firms are now exploring ways to use these social networking sites in a way that integrates with their corporate homepages. The key is to build brand awareness and affinity through interactivity and online community. Campaigns that combine rich media and peer-to-peer networking with trial offers, sweepstakes, and other sales promotion are effective at creating brand-loyal communities. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 15: Sales Promotion, Point-of-Purchase Advertising, and Support Media

Instructor Manual

CLOSE SCHEINBAUM, ADVERTISING AND INTEGRATED BRAND PROMOTION, 9E, 9780357721407; CHAPTER 15: SALES PROMOTION , POINT-OF-PURCHASE ADVERTISING, AND SUPPORT MEDIA

TABLE OF CONTENTS Part 5: Integrated Brand Promotion ................................................................................. 2 Purpose and Perspective of the Chapter .......................................................................... 2 Cengage Supplements ........................................................................................................ 3 Chapter Objectives ............................................................................................................. 3 Complete List of Chapter Activities and Assessments .................................................... 3 Key Terms ............................................................................................................................ 4 What's New in This Chapter ............................................................................................... 7 Chapter Outline .................................................................................................................. 8 Additional Discussion Questions ......................................................................................21

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 15: Sales Promotion, Point-of-Purchase Advertising, and Support Media

PART 5: INTEGRATED BRAND PROMOTION The book is divided into five parts. At the beginning of each distinct part of the text, it is worth alerting the students to the focus of the chapters within the part. Part 5 highlights the full range of communication tools a firm can use in developing and supporting an integrated brand promotion campaign. The variety and breadth of communication options discussed here represent a tremendous opportunity for marketers to be creative and break through the clutter in today’s crowded marketplace. Each of the tools discussed has the unique capability to influence the audiences ‘s perception of and desire to own a branded good or service while ensuring that consistency with advertising and other forms of marketing are maintained. Advertisers can enrich their campaign with a full range of consumer and trade sales promotion techniques, along with support media like outdoor signage and out-of-home media. With the convergence of advertising, branding, and entertainment, IBP campaigns often include event sponsorships, product placements, and branded entertainment. Advertisers can use direct marketing to communicate with a target audience and seek an immediate response, and many also rely on the power of personal selling. Finally, advertisers need to plan for the use of public relations, influencer marketing, and corporate advertising to create brand buzz and enhance a firm’s image and reputation.

PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to understand that sales promotion, point-of-purchase (P-O-P) advertising, and support media (like billboards, transit advertising, and packaging) offer advertisers a wide range of opportunities to communicate to consumers that are vastly different from other forms of media. These types of support media are being adapted quickly to new technologies available for forwardthinking IBP campaigns. These IBP tools work in ways that traditional media and digital media don’t because they are often used in IBP campaigns as support media— as media that often supplement more substantial or longer-term media investments. The potential for knowing when and where consumers are is blurring the lines between advertising and promotions. While P-O-P plays an important role at the point of purchase in online shopping or in a store, it is not the leading tool in IBP as often times it is considered as a form of support media that helps strengthen IBP campaigns. The more complex and information-rich tools of IBP are really what create brand loyalty and competitive advantage.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 15: Sales Promotion, Point-of-Purchase Advertising, and Support Media

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 15-1

Define sales promotion and the three broad audiences for sales promotion.

15-2

Explain the importance and growth of sales promotion.

15-3

Describe the sales promotion techniques used in the consumer market.

15-4

Describe the sales promotion techniques used in the trade channel and business markets.

15-5

Identify the risks of using sales promotion that brands may face.

15-6

Understand the role and techniques of point-of-purchase advertising.

15-7

Describe the role of support media in a comprehensive IBP strategy.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 15: Sales Promotion, Point-of-Purchase Advertising, and Support Media

Chapter Objective

Activity/Assessment

Source (i.e., PPT slide, Workbook)

Icebreaker

PPT Slide 3

15-2

Discussion Activity 1

PPT Slide 16

10-15 minutes

15-2

Discussion Activity 1 Debrief

PPT Slide 17

5 minutes

15-5

Discussion Activity 2

PPT Slide 40

5-10 minutes

15-5

Discussion Activity 2 Debrief

PPT Slide 41

5 minutes

15-7

Discussion Activity 3

PPT Slide 51

5 minutes

15-7

Discussion Activity 3 Debrief

PPT Slide 52

5 minutes

Knowledge Check

PPT slide 53

Duration

[return to top]

KEY TERMS Advertising Specialties A sales promotion having three key elements: a message, placed on a useful item, given to consumers with no obligation. Aerial Advertising Advertising that involves airplanes (pulling signs or banners), skywriting, or blimps. Bill-Back Allowances A monetary incentive provided to retailers for featuring a marketer’s brand in either advertising or in-store displays. Blimps Ultralight aircrafts that go through the air with its own power and may serve as an advertising vehicle. Business-Market Sales Promotion Promotion designed to cultivate buyers from large corporations who are making purchase decisions.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 15: Sales Promotion, Point-of-Purchase Advertising, and Support Media

Cinema Advertising Includes ads that run in movie theaters before the film and other advertising appearing off-screen within a theater. Consumer-Market Sales Promotion A type of sales promotion designed to induce household consumers to purchase a firm’s brand rather than a competitor’s brand. Contest A sales promotion that has consumers compete for prizes based on skill or ability. Coupon A type of sales promotion that entitles a buyer to a designated reduction in price for a product or service. Directory Advertising Includes all the local phone directory and local business advertising books published by a variety of firms. Free Premium A sales promotion that provides consumers with an item at no cost; the item is either included in the package of a purchased item or mailed to the consumer after proof of purchase is verified. In-Store Sampling A type of sampling that occurs at the point of purchase and is popular for food products and cosmetics. Loyalty Program (also Known as Frequency Programs) A type of sales promotion that offers consumers discounts or free product rewards for repeat purchase or patronage of the same brand or company. Mail Sampling A type of sampling in which samples are delivered through the postal service. Merchandise Allowances A type of trade-market sales promotion in which free products are packed with regular shipments as payment to the trade for setting up and maintaining displays. Mobile Sampling A type of sampling carried out by logo-emblazoned vehicles that dispense samples, coupons, and premiums to consumers at malls, shopping centers, fairgrounds, and recreational areas.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 15: Sales Promotion, Point-of-Purchase Advertising, and Support Media

Off-Invoice Allowance A program allowing wholesalers and retailers to deduct a set amount from the invoice they receive for merchandise. On-Package Sampling A type of sampling in which a sample item is attached to another product package. Out-Of-Home Media Advertising The combination of transit and billboard advertising. Packaging The container or wrapping for a product; packaging serves as an important vessel for product information and user appeal, as it is often viewed by the customer in a potential buying situation. Point-Of-Purchase (P-O-P) Advertising Advertising that appears at the point of purchase. Premiums Items that feature the logo of a sponsor and that are offered free, or at a reduced price, with the purchase of another item. Price Promotions A type of consumer-market sales promotion that temporarily entails a lower price, saving money, or other discount. Price-Off Deal A type of sales promotion that offers a consumer cents or even dollars off merchandise at the point of purchase through specially marked packages. Push Strategy A sales promotion strategy in which marketers devise incentives to encourage purchases by members of the trade to help push a product into the distribution channel. Rebate A money-back offer requiring a buyer to mail in a form requesting the money back from the manufacturer. Sales Promotion The use of incentive techniques that create a perception of greater brand value among consumers or distributors. Sampling A sales promotion technique designed to provide a consumer with a trial opportunity.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 15: Sales Promotion, Point-of-Purchase Advertising, and Support Media

Self-Liquidating Premium A sales promotion that requires a consumer to pay most of the cost of the item received as a premium. Slotting Fees A type of trade-market sales promotion in which manufacturers make direct cash payments to retailers to ensure shelf space. Support Media Media used to reinforce a message being delivered via some other media vehicle. Sweepstakes A sales promotion in which winners are determined purely by chance. Trade-Market Sales Promotion A type of sales promotion designed to motivate distributors, wholesalers, and retailers to stock and feature a firm’s brand in their merchandising programs. Trade Shows Events where several related products from many manufacturers are displayed and demonstrated to members of the trade. Transit Advertising Advertising that appears as both interior and exterior displays on mass transit vehicles and at terminal and station platforms. Trial Offers A type of sales promotion in which expensive items are offered on a trial basis to induce consumer trial of a brand. [return to top]

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition: •

New key terms: o support media with mobile apps o Sales price promotion with e-commerce codes

•

Pop up shops

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 15: Sales Promotion, Point-of-Purchase Advertising, and Support Media

•

New examples and images with- Subway, Kate Spade, Victoria’s Secret, Ugg, Petco, Kylie Cosmetics, and Jimmy John’s

[return to top]

Sales Promotion Defined and Types of Sales Promotion (LO 1, PPT Slides 5-7) i. Sales promotion is often a key component within an IBP campaign— particularly campaigns seeking short-term sales effects. a. Examples include dealer incentives, consumer price discounts, and samples. b. While mass media advertising is designed to build a brand image over time, sales promotion is designed to make things happen in the short run, particularly with mobile or location-based techniques. ii. Sales promotion is the use of incentive techniques that create a perception of greater brand value among consumers, the trade, and business buyers. a. The intent is to generate a short-term increase in sales by motivating trial use, encouraging larger purchases, or stimulating repeat purchases. b. Consumer-market sales promotion can be either price promotions or not and includes the following ways to reach the end-user: 1. coupons/e-coupons 2. price-off deals 3. premiums 4. contests 5. sweepstakes 6. sampling 7. trial offer rebates 8. loyalty/frequency programs (for consumers) 9. gift cards

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 15: Sales Promotion, Point-of-Purchase Advertising, and Support Media

c. Trade-market sales promotion uses the following ways of motivating distributors, wholesalers, and retailers to stock and feature a firm’s brand in their store merchandising programs or online and mobile platforms: 1. P-O-P displays 2. salesperson incentives 3. allowances 4. cooperative advertising 5. sales training d. Business-market sales promotion is designed to cultivate buyers in organizations or corporations who are making purchase decisions about a wide range of products, including computers, office supplies, and consulting services. Techniques used for business buyers are similar to the trade-market techniques and include the following: 1. trade shows 2. premiums 3. incentives 4. loyalty/frequency programs (for business buyers) II. The Importance and Growth of Sales Promotion (LO 2, PPT Slides 8-17) i. Sales promotion is designed to impact demand differently than advertising does. a. Whereas most advertising is designed to have long-term brand awareness and image and preference-building effects, sales promotion is used primarily to elicit an immediate purchase from a customer group. b. Price promotions typically feature price reductions, such as coupons, and are effective in the convenience goods category (paper towels, soft drinks, etc.), where frequent purchases, brand switching, and a perceived homogeneity (similarity) among brands characterize consumer behavior. c. Some brands, stores, or companies/organizations offer loyalty programs, which are designed to attract new customers and/or retain existing customers to offer rewards for being loyal to a brand, company, or store. A. The Importance of Sales Promotion i. When a firm determines that a more immediate response than advertising can accomplish is needed—whether the target customer is a household, business buyer, distributor, or retailer—sales promotions are designed to provide that effect. ii. Sales promotion may not seem as stylish and sophisticated as mass media advertising or as exciting as new digital media opportunities, but expenditures on this tool are strategic and impressive.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 15: Sales Promotion, Point-of-Purchase Advertising, and Support Media

B. Growth in the Use of Sales Promotion i. Demand for Greater Accountability a. In an era of cost cutting and shareholder scrutiny, companies are demanding greater accountability across all functions, including marketing, advertising, and promotions. ii. Short-Term Orientation a. Pressures from stockholders to increase quarter-by-quarter revenue and profit per share. b. Bottom-line mentality c. Companies are seeking tactics that can have short-term effects. 1. If a customer stops in for free fries, they might also buy a burger and drink—an immediate effect on sales. 2. A free product also presents the chance to “convert the curious into loyalists.” iii. Consumer Response to Promotions a. The precision shopper in the contemporary marketplace is demanding greater value across all purchase situations, and that trend is battering overpriced brands. b. Sales promotion techniques act as an incentive to purchase the brand featuring a promotion, even if another brand has a lower basic price. iv. Proliferation of Brands a. The drive by marketers to design products for specific market segments to satisfy ever more narrowly defined needs has caused a proliferation of brands that creates a mind-dulling maze for consumers. v. Increased Power of Retailers/E-Tailers a. Big retailers (often with e-commerce capabilities) like Walmart, Amazon, Kroger, Home Depot, Costco, Walgreens, Target, CVS, Lowe’s, and Albertsons dominate retailing in the United States and they want to know how to allocate their digital and advertising budgets accordingly. b. Retailers are demanding more deals from manufacturers. 1. Many of the deals are delivered in terms of trade-oriented sales promotions: P-O-P displays, slotting fees (payment for shelf space), case allowances, and co-op advertising allowances. vi. Clutter a. Many advertisers target the same customers because their research has led them to the same conclusion about which segment is the most attractive. b. The result is that advertising media are cluttered with ads all seeking the attention of the same people.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 15: Sales Promotion, Point-of-Purchase Advertising, and Support Media

c. One way to break through the clutter is to feature a novel sales promotion. C. Discussion 1 Activity (PPT Slide 16; Time duration: 10-15 minutes) i. What is brand proliferation and why is it occurring? a. Answer: Every year, thousands of new brands—many of them actual variations on old brands—enter the marketplace. The drive by marketers to develop products for newly identified target segments, or to differentiate existing brands from the competitive field, causes brand proliferation. D. Discussion Activity 1 Debrief (PPT Slide 17; Time duration: 5 minutes) i. Why do consumer sales promotions become more commonplace in the face of rampant brand proliferation? a. Answer: Proliferation frequently only adds to the clutter in the marketplace, leading brand managers to turn to sales promotions in an effort to win immediate results for the new offering. III. Sales Promotion Directed at Consumers (LO 3, PPT Slides 18-32) i. U.S. consumer-product firms have made a tremendous commitment to sales promotion in their overall marketing plans. ii. More is being spent on various forms of promotion and P-O-P materials than on traditional advertising, with digital/social/mobile spending also increasing. A. Objectives for Consumer-Market Sales Promotion i. Stimulate Trial Purchase a. When a brand wants to attract new customers, sales promotion tools can reduce the consumer’s risk of trying something new. b. A reduced price, offer of a rebate, or a free sample may stimulate trial purchase. ii. Stimulate Repeat Purchases a. In-package coupons designed for the next purchase or the accumulation of points with repeated purchase can help keep consumers loyal to a particular brand. b. Loyalty or frequent-purchase programs are the best techniques. iii. Stimulate Larger Purchases a. Encouraging consumers to buy larger purchase amounts or in larger quantities offers benefits to both the manufacturer and retailer. b. Both get increased dollar volume, and both realize the benefit of faster inventory turnover. c. Price reductions or two-for-one sales can motivate consumers to stock up on a brand, thus allowing firms to reduce inventory or increase cash flow. iv. Introduce a New Brand, Service or Product

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 15: Sales Promotion, Point-of-Purchase Advertising, and Support Media

a. Because sales promotion can attract attention and motivate trial purchase, it is commonly used for new brand, service, or product introductions. v. Combat or Disrupt Competitors’ Strategies a. Because sales promotions often motivate consumers to buy in larger quantities or try new brands, they can be used to disrupt competitors’ marketing strategies. b. If a firm knows that one of its competitors is launching a new brand or initiating a new advertising campaign, a well-timed sales promotion offering deep discounts or extra quantity can disrupt the competitor’s strategy. vi. Contribute to Integrated Brand Promotion a. In conjunction with advertising, direct marketing, public relations, and other programs being carried out by a firm, sales promotion can add yet another type of communication to the mix. b. Sales promotions suggest an additional value, with price reductions, premiums, or the chance to win a prize. c. This is a specific message designed to be used in the sales promotion mix and to fit within the overall communications strategy and IBP effort. B. Consumer-Market Sales Promotion Techniques i. Coupons a. A coupon entitles a buyer to a designated reduction in price for a product or service. b. Coupons are the oldest and most widely used form of sales promotion. c. Advantages 1. The use of a coupon makes it possible to offer a discount to a price-sensitive consumer while still selling the product at full price to other consumers. 2. The coupon-redeeming customer may be a competitivebrand user, so the coupon can induce brand switching. 3. A manufacturer can control the timing and distribution of coupons. 4. A coupon is an excellent method of stimulating repeat purchases. 5. Coupons can get regular users to trade up within a brand array. d. Challenges 1. Although coupon price incentives and the timing of distribution can be controlled by a marketer, the timing of redemption cannot.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 15: Sales Promotion, Point-of-Purchase Advertising, and Support Media

ii.

iii.

iv.

2. Heavy redemption by regular brand buyers merely reduces a firm’s profitability. 3. Coupon programs require careful administration. 4. Fraud is a chronic and serious problem in the couponing process. Price-Off Deals a. The price-off deal is another straightforward promotional technique. b. A price-off deal offers a consumer cents or even dollars off merchandise at the P-O-P through specially marked packages. Premiums and Advertising Specialties a. Premiums are items offered free or at a reduced price with the purchase of another item. 1. A free premium provides consumers with an item at no cost. 2. A self-liquidating premium requires a consumer to pay most of the cost of the item received as a premium. b. Advertising specialties have three key elements: 1. They are useful items that carry a key message. 2. They are given to consumers. 3. There is no obligation for a consumer to make a purchase. Contests and Sweepstakes a. In a contest, consumers compete for prizes based on skill or ability. b. A sweepstakes is a promotion in which winners are determined purely by chance. c. Challenges 1. There are strict regulations and restrictions on contests and sweepstakes. 2. The game itself may become the consumer’s primary focus, while the brand becomes secondary. 3. It is hard to get any meaningful message across in the context of a game. 4. Administration of a contest or sweepstakes is sufficiently complex that the risk of errors in administration is fairly high and can create negative publicity. 5. If a firm is trying to develop a quality or luxury brand image, contests and sweepstakes may detract from these efforts. Sampling and Trial Offers a. Sampling is a sales promotion technique designed to provide a consumer with an opportunity to use a brand on a trial basis with little or no risk.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 15: Sales Promotion, Point-of-Purchase Advertising, and Support Media

1. In-store sampling 2. Mail sampling 3. On-package sampling 4. Mobile sampling b. Trial offers have the same goal as sampling—to encourage consumers to try a brand—but they are used for more expensive items. vi. Gift Cards a. Gift cards represent an increasingly popular form of sales promotion. vii. Rebates a. A rebate is a money-back offer requiring a buyer to mail in a form (although many are redeemed instantly at checkout) requesting the money back from the manufacturer rather than from the retailer (as in couponing). b. Rebates are particularly well suited for increasing the quantity purchased by consumers, so rebates are commonly tied to multiple purchases. c. Another reason for the popularity of rebates is that relatively few consumers actually take advantage of the rebate offer after buying a brand. viii. Loyalty (Frequency/Continuity) Programs a. Loyalty programs, also referred to as continuity programs or frequency programs, offer consumers discounts or free product rewards for repeat purchase or patronage of the same brand, company, or retailer. IV. Sales Promotion Directed at the Trade Channel and Business Markets (LO 4, PPT Slides 33-37) i. Sales promotions, like advertising, can also be directed to members of the trade—wholesalers, distributors, and retailers—as well as to business markets. ii. Intended to stimulate demand in the short term and help push the product through the distribution channel or cause business buyers to act more immediately and positively toward the marketer’s brand. A. Objectives for Promotions in the Trade Channel i. When marketers offer incentives for the trade market, they are executing a push strategy; that is, sales promotions directed at the trade help push a brand into the distribution channel until it ultimately reaches the consumer. ii. Obtain Initial Distribution a. Sales promotion incentives can help a firm gain initial distribution and shelf placement. iii. Increase Order Size

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 15: Sales Promotion, Point-of-Purchase Advertising, and Support Media

a. Sales promotion techniques can encourage wholesalers and retailers to order in larger quantities, thus shifting the inventory burden to the trade channel. iv. Encourage Cooperation with Consumer-Market Sales Promotions a. It doesn’t benefit the manufacturer to initiate a sales promotion in the consumer market if there is little cooperation in the channel. b. To achieve synergy, marketers often run trade promotions alongside consumer promotions. v. Increase Store Traffic a. Retailers can increase store traffic through special promotions or events. b. Door-prize drawings, parking-lot sales, or live radio broadcasts from the store are common sales promotion traffic builders. B. Trade-Market Sales Promotion Techniques i. Incentives a. Incentives to members of the trade include a variety of tactics much like those used in the consumer market. b. Awards in the form of travel, gifts, or cash bonuses for reaching targeted sales levels can encourage retailers and wholesalers to give a firm’s brand added attention. c. Another form of trade incentive is referred to as push money. 1. Push money is carried out through a program in which retail salespeople are offered a monetary reward for featuring a marketer’s brand with shoppers. d. Risks 1. One risk with incentive programs for the trade is that salespeople can be so motivated to win an award or extra push money that they may try to sell the brand to every customer, whether it fits that customer’s needs or not. Also, a firm must carefully manage such programs to minimize ethical dilemmas. 2. An incentive technique can look like a bribe unless it is carried out in a highly structured and open manner. ii. Allowances a. Various forms of allowances are offered to retailers and wholesalers with the purpose of increasing the attention given to a firm’s brands. b. Merchandise allowances, in the form of free products packed with regular shipments, are payments to the trade for setting up and maintaining displays. c. Shelf space has become so competitive, especially in supermarkets, that manufacturers are making direct cash

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 15: Sales Promotion, Point-of-Purchase Advertising, and Support Media

payments, known as slotting fees, to entice food chains to stock an item. d. Bill-back allowances provide retailers a monetary incentive for featuring a marketer’s brand in either advertising or in-store displays. e. A similar program is the off-invoice allowance, in which advertisers allow wholesalers and retailers to deduct a set amount from the invoice they receive for merchandise. iii. Sales-Training Programs a. An increasingly popular trade promotion is to provide training for retail store personnel. b. This method is used for consumer durables and specialty goods, such as computers, mobile devices, home theatre systems, heating and cooling systems, security systems, and exercise equipment. iv. Cooperative (Co-Op) Advertising a. Cooperative advertising as a trade promotion technique is also referred to as vertical cooperative advertising and provides dollars directly to retailers for featuring a company’s brand in local advertising. 1. They may set strict specifications for the size and content of the ad and then ask for verification that such specifications have been met. 2. Alternatively, manufacturers may send the template for an ad, into which retailers merely insert the names and locations of their stores. v. Loyalty Programs a. The high degree of travel associated with many business professions makes loyalty programs an ideal form of sales promotion for the business market. V. The Risks of Sales Promotion (LO 5, PPT Slides 38-41) A. Creating a Price Orientation i. Since most sales promotions rely on some sort of price incentive or giveaway, a firm runs the risk of having its brand perceived as cheap, with no real value or benefits beyond the low price. ii. If advertising messages highlight the value and benefit of a brand only to be contradicted by a price emphasis in sales promotions, then a confusing signal is being sent to the market. iii. Brands are therefore reassessing their sales promotion activities. iv. Over time, consumers may become immune to the constant sales promotions, resulting in lower response rates.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 15: Sales Promotion, Point-of-Purchase Advertising, and Support Media

Brands need to carefully assess consumer behavior and marketplace realities to determine the proper balance of advertising, sales promotion, and other IBP. B. Borrowing from Future Sales i. Management must admit that sales promotions are typically short-term tactics designed to reduce inventories, increase cash flow, or show periodic boosts in market share. ii. The downside is that a firm may simply be borrowing from future sales. C. Alienating Customers i. When a firm relies heavily on sweepstakes or loyalty programs to build loyalty among customers, particularly their best customers, there is the risk of alienating these customers with any change in the program. D. Managerial Time and Expense i. Sales promotions are both costly and time consuming. ii. The process is time consuming for the marketer and the retailer in terms of handling promotional materials and protecting against fraud and waste in the process. E. Legal Considerations i. With the increasing popularity of sales promotions, particularly contests and premiums, there has been an increase in legal scrutiny at both the federal and state levels. ii. Legal experts recommend that before initiating promotions that use coupons, games, sweepstakes, and contests, a firm should check into lottery laws, copyright laws, state and federal trademark laws, prize notification laws, right-of-privacy laws, tax laws, and FTC and FCC regulations. F. Discussion Activity 2 (PPT Slide 40; Time duration 5-10 minutes) i. Why are sales promotions considered “risky” as an IBP tool? a. Answer: While sales promotions can produce quick results in stimulating product demand, marketers must balance those outcomes against some significant risks association with various sales promotion techniques. At the most basic level, because most sales promotions rely on some type of discounting scheme, marketers risk leaving the perception of having a cheap product in the marketplace and diluting the value of the brand. As well, because of the time-sensitive nature of sales promotions, managers must realize that any promotion strategy is necessarily borrowing against future sales and can make it even more difficult to measure the effectiveness of any broader promotional campaigns. Firms also must weigh the risk of alienating existing, loyal customers, the time and expense of running sales promotions, and potential legal pitfalls, which are most

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 15: Sales Promotion, Point-of-Purchase Advertising, and Support Media

commonly associated with sweepstakes and other contest promotions. VI. Point-of-Purchase Advertising (LO 6, PPT Slides42-44) A. Point-of-Purchase Advertising Defined i. Point-of-purchase (P-O-P) advertising refers to materials used in the retail setting to attract shoppers’ attention to a brand, convey primary brand benefits, or highlight pricing information. P-O-P displays may also feature price-off deals or other consumer sales promotions. B. Objectives for Point-of-Purchase Advertising i. Draw consumers’ attention to a brand in the retail setting. ii. Maintain purchase loyalty among brand-loyal users. iii. Stimulate increased or varied usage of the brand. iv. Stimulate trial use by users of competitive brands. C. Types of Point-of-Purchase Advertising and Displays i. Short-term promotional displays, which are used for six months or less, and permanent long-term displays, which are intended to provide P-O-P presentation for more than six months. ii. This wide array of in-store options gives marketers the opportunity to attract shoppers’ attention, encourage purchase, and provide reinforcement for key messages that are being conveyed through other components of the IBP plan. D. P-O-P Advertising and Mobile Location Marketing i. Mobile adds another dimension to the retailers’ in-store or near-store marketing. E. P-O-P Advertising and the Trade and Business Markets i. Product displays and information sheets offered to retailers often encourage retailers to support one distributor’s or manufacturer’s brand over another. VII. The Role of Support Media in a Comprehensive IBP Strategy (LO 7, PPT Slides 4552) i. Support media are used to reinforce or supplement a message being delivered via some other media vehicle, hence the name support media. ii. Support media are especially productive when used to deliver a message near the time or place where consumers are actually contemplating product selections, like the billboards along a highway advertising gas stations, restaurants, or motels. A. Outdoor Signage and Billboard Advertising i. The creative challenge posed by outdoor advertising is the same as it has always been—to grab attention and communicate with minimal verbiage and striking imagery. ii. Outdoor advertising offers several distinct advantages.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 15: Sales Promotion, Point-of-Purchase Advertising, and Support Media

a. The size of the display makes this medium particularly attentiongetting, especially when combined with special lighting and moving features. b. Billboards can be captivating when clever creative is developed for the board that highlights the brand or company name. c. Billboards also offer around-the-clock exposure for an advertiser’s message and are well suited to showing off a brand’s distinctive packaging or logo. d. Billboards are especially effective when they reach viewers with a message that speaks to a need or desire that is immediately relevant. iii. Billboards have obvious drawbacks. a. Long and complex messages simply make no sense on billboards b. The impact of billboards can vary dramatically depending on their location, and assessing locations is tedious and time consuming. c. Costs may be prohibitive for many advertisers. iv. There are advocates for this medium who contend that important technological advances will make outdoor advertising an increasingly attractive alternative in the future. a. Digital and wireless technologies have created meaningful new opportunities for billboard marketers. b. Digital billboard displays let advertisers rotate their messages on a board at different times during the day. B. Out-of-Home Media Advertising: Transit, Aerial, Cinema i. Out-of-home media advertising includes various advertising venues that reach primarily local audiences. ii. Transit advertising is a close cousin to billboard advertising, and in many instances is used in tandem with billboards. a. Transit advertising is especially valuable when an advertiser wishes to target adults who live and work in major metropolitan areas. b. Transit advertising works best for building or maintaining brand awareness. c. Negatives 1. Lengthy or complex messages don’t fare well in this medium. 2. Transit ads can easily go unnoticed in the hustle and bustle of daily life. iii. Aerial advertising can involve airplanes pulling signs or banners, skywriting, or those majestic blimps or ultralight aircrafts that go through the air with its own power.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 15: Sales Promotion, Point-of-Purchase Advertising, and Support Media

iv.

Cinema advertising includes those (sometimes annoying) ads that run in movie theaters before the film as well as other advertising messages appearing off-screen within a theater. a. Off-screen advertising and promotion include sampling, concession-based promotion (the ad on the side of your popcorn box), and lobby-based advertising. Directory advertising plays an important role in the media mix. C. Packaging i. Packaging is the container or wrapping for a product. ii. Classic quotes from consultants describe packaging as “the last five seconds of marketing” and “the first moment of truth.” iii. Promotional Benefits of Packaging to the Advertiser a. Packaging provides several strategic benefits to the brand manufacturer. 1. There is a general impact on IBP strategy. 2. A well-designed package can attract a buyer’s attention and induce the shopper to carefully examine the product. 3. Packaging can reinforce the product’s features and benefits. 4. Creating a perception of value for the product. D. Discussion Activity 3 (PPT Slide 51, Time duration: 5 minutes) i. Billboard ad campaigns often make headline news as advertisers from fashion designers to political groups use this roadside support media to communicate splashy or controversial messages. a. What are some of the advantages of billboard advertising? 1. Answer: Generally speaking, billboards employ a mix of striking visuals and minimal text to grab attention and communicate a message. A billboard’s large size enables highly creative possibilities, and billboards tend to be most effective when they reach audiences regarding a need or event that is immediately relevant. Billboards are an excellent option for targeting specific local markets. E. Discussion Activity 3 Debrief (PPT Slide 52; Time duration: 5 minutes) i. What are some of the disadvantages? a. Answer: Drawbacks to billboards include high cost, location challenges, and the inability of the media to communicate long messages (experts suggest no more than six words). Some critics also deride billboards as “visual pollution.” F. Knowledge Check (PPT Slide 53, Time duration: 5 minutes) i. Monetary rewards offered to salespeople for featuring a marketer’s brand, are known as: a. merchandise allowances. b. push money.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 15: Sales Promotion, Point-of-Purchase Advertising, and Support Media

c. rebates. d. slotting fees. 1. Answer: B. push money—Push money is carried out through a program in which retail salespeople are offered a monetary reward for featuring a marketer’s brand with shoppers. If a salesperson sells a particular brand for a manufacturer as opposed to a competitor’s brand, the salesperson will be paid an extra “bonus” as part of the push money program. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 15: Sales Promotion, Point-of-Purchase Advertising, and Support Media

broader promotional campaigns. Firms also must weigh the risk of alienating existing, loyal customers, the time and expense of running sales promotions, and potential legal pitfalls, which are commonly associated with sweepstakes and other contest promotions. 1. What role does point-of-purchase advertising play as an IBP tool? In what ways can a firm ensure coordination of its P-O-P with other promotional efforts? a. Answer: P-O-P is used in the retail setting to attract shoppers’ attention to specific products, convey primary product benefits, or highlight pricing information. P-O-P displays may also feature price-off deals or other consumer sales promotions. Whether for short- or long-term purposes, P-OP displays come in a wide range of choices, including dump bins, motion displays, floor stands and cash register racks. These in-store options allow marketers to reinforce key messages from other components of the advertising plan. To ensure integration with other promotional efforts, the marketer’s field sales force might work with retailers to develop effective PO-P programs. Without retail-level cooperation, P-O-P programs are likely to fall flat. P-O-P has also become a key technique in mobile marketing because marketers can reach consumers on their smart devices with timely promotional offerings. 2. Compare and contrast the advantages and disadvantages that billboards and transit advertising offer an advertiser as part of an IBP program. a. Answer: The creative challenge posed by outdoor advertising is the same as it has always been—to grab attention and communicate with minimal verbiage and striking imagery. Outdoor advertising offers several distinct advantages. The size of the display makes this medium particularly attention-getting, especially when combined with special lighting and moving features. Billboards can be captivating when clever creative is developed for the board that highlights the brand or company name. Billboards also offer around-the-clock exposure for an advertiser’s message and are well suited to showing off a brand’s distinctive packaging or logo. Billboards are especially effective when they reach viewers with a message that speaks to a need or desire that is immediately relevant. Billboards have obvious drawbacks. Long and complex messages simply make no sense on billboards. The impact of billboards can vary dramatically depending on their location, and assessing locations is tedious and time consuming. Costs may be prohibitive for many advertisers. There are advocates for this medium who contend that important technological advances will make outdoor advertising an increasingly attractive alternative in the future. Digital and wireless technologies have created meaningful new opportunities for billboard marketers. Digital billboard displays let advertisers rotate their messages on a board at different times during the day. Transit advertising is a close cousin to billboard advertising,

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 15: Sales Promotion, Point-of-Purchase Advertising, and Support Media

and, in many instances it is used in tandem with billboards. Transit advertising is especially valuable when an advertiser wishes to target adults who live and work in major metropolitan areas. Transit advertising works best for building or maintaining brand awareness. Negatives include the fact that lengthy or complex messages don’t fare well in this medium and transit ads can easily go unnoticed in the hustle and bustle of daily life. 3. How does packaging function as a support medium? What sort of “message” does a consumer get from a brand package? a. Answer: While it is not a support medium in the classic sense, packaging nonetheless plays a vital role in conveying product information to consumers in the final moments before they make purchasing decisions. Classic quotes from consultants describe packaging as “the last five seconds of marketing” and “the first moment of truth.” Although the basic purpose of packaging seems fairly obvious, it can also make a strong positive contribution to the promotional effort. Packaging can relay many key messages to consumers, conveying both basic information about the brand and function as well as creating the perception of value and usefulness. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 16: Event Sponsorship, Product Placements, and Branded Entertainment

Instructor Manual

CLOSE SCHEINBAUM, ADVERTISING AND INTEGRATED BRAND PROMOTION, 9E, 9780357721407; CHAPTER 16: EVENT SPONSORSHIP , PRODUCT PLACEMENTS, AND BRANDED ENTERTAINMENT

TABLE OF CONTENTS Purpose and Perspective of the Chapter ......................................................................... 2 Cengage Supplements ........................................................................................................ 2 Chapter Objectives ............................................................................................................. 2 Complete List of Chapter Activities and Assessments .................................................... 3 Key Terms ............................................................................................................................ 4 What's New in This Chapter ............................................................................................... 5 Chapter Outline .................................................................................................................. 6 Additional Discussion Questions ..................................................................................... 14

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 16: Event Sponsorship, Product Placements, and Branded Entertainment

PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to discuss a variety of tools and tactics that marketers use to create unique experiences with and for consumers. This chapter first assesses event sponsorship. Next, the IBP tactic of product placement is considered. This is the strategy in which brands are prominently featured in television shows, films, and even video games. Finally, we’ll examine branded entertainment. Events, product placements, and branded entertainment offer the advertiser some of the most exciting opportunities for integrated brand promotion. For digital engagement, sponsorship mixes well with social media. The dynamic nature of events, product placement, and branded entertainment make them potent additions to an IBP campaign. In this innovative environment, brands are seeking out opportunities to be embedded in activities and entertainment that their target consumers enjoy. The objective for coordination is to achieve a synergistic effect. Individual media can reach audiences, but advertisers get more for their dollars if various media and IBP tools build on one another and work together. Synergy from coordination, rather than pounding away endlessly with isolated messages in individual media, is the way to build brands over time.

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 16-1

Explain the role of event sponsorship, product placements, and branded entertainment in integrated brand promotion, and justify their growing

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 16: Event Sponsorship, Product Placements, and Branded Entertainment

popularity with respect to the convergence of advertising and entertainment for brand-building. 16-2

Identify what event sponsorship is, who uses it, how it is measured, its benefits, and how to leverage it.

16-3

Summarize the uses and appeal of product placements in venues like TV, movies, and video games.

16-4

Identify what branded entertainment is and explain the benefits and challenges of connecting with event venues or entertainment properties in building a brand.

16-5

Discuss the coordination challenges presented by the variety of communication and branding tools for achieving integrated brand promotion via the consumer experience.

Activity/Assessment

Source (i.e., PPT slide, Workbook)

Duration

Icebreaker

PPT Slide 3

5-10 minutes

16-1

Discussion Activity 1

PPT Slide 10

10-15 minutes

16-1

Discussion Activity 1 Debrief

PPT Slide 11

5-10 minutes

16-4

Discussion Activity 2

PPT Slide 28

10-15 minutes

16-4

Discussion Activity 2 Debrief

PPT Slide 29

5 minutes

16-5

Discussion Activity 3

PPT Slide 35

5-10 minutes

16-5

Discussion Activity 3 Debrief

PPT Slide 36

10-15 minutes

Knowledge Check

PPT Slide 39

10-15 minutes

[return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 16: Event Sponsorship, Product Placements, and Branded Entertainment

KEY TERMS Authenticity The quality of being genuine and natural, a powerful influence on brand loyalty. Branded Experience The consumer experience itself in experiential marketing. Consumer-Event Congruity/Fit When an event sponsor fits a consumer’s image and sense of self. Event Social Responsibility An opportunity for (sports) sponsors to demonstrate good corporate citizenship, generate positive word of mouth, and boost both attendance and patronage intent. Event Sponsorship Providing financial support to help fund an event, in return for the right to display a brand name, logo, or advertising message on-site at the event. Event Sponsorship Measurement Includes (but is not limited to) models and metrics on the following areas: event–sponsor fit, attitude, event social responsibility, sponsorship awareness, image transfer, affect transfer, brand meaning transfer, and sponsorship patronage (i.e., preference toward buying from the sponsoring brand). Experiential Marketing Marketing of and with the consumer experience. Leveraging Any collateral communication or activity reinforcing the link between a brand and an event. Media Impressions Instances in which a product or brand is exposed to potential consumers by direct newspaper, television, radio, or magazine coverage (rather than the payment of these media as venues in which to advertise). The effectiveness of sponsorship spending is often judged by the comparison of media impressions to traditional media advertising, such as commercials. Product Placement The sales promotion technique of getting a marketer’s product featured in movies and television shows.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 16: Event Sponsorship, Product Placements, and Branded Entertainment

Sponsor-Event Congruity/Fit The degree to which consumers perceive the sponsor and sponsee as congruent in both image and function. Sponsorship Activation Any collateral communication or activity reinforcing the link between a brand and an event is referred to as leveraging or activating a sponsorship. Sponsorship Articulation Integrated brand promotion that explains the event sponsorship. Sponsor Spillover An earlier sponsor still may get “credit” for being the sponsor in the consumer’s memory—even when a new brand is the sponsor. [return to top]

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition: •

New key terms o branded experience

•

Experiential marketing examples from Red Bull, Amazon

•

Updates from the event sponsorship literature

•

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Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 16: Event Sponsorship, Product Placements, and Branded Entertainment

The Role of Event Sponsorship, Product Placements, and Branded Entertainment in IBP: Experiential Marketing and the Convergence of Advertising and Entertainment (LO 1, PPT Slides 5-11) i. There is an array of tools and tactics that marketers use to create unique experiences with and for consumers. Events, product placements, and branded entertainment offer the advertiser some of the most exciting opportunities for integrated brand promotion (IBP). ii. The dynamic nature of events, product placement, and branded entertainment make them potent additions to any IBP campaign. In this innovative environment, brands are seeking out opportunities to be embedded in activities and entertainment that their target consumers enjoy. A. Experiential Marketing i. There are very few limits on what one can try with branded entertainment, and often quirky, edgy, or off-the-wall events will gain attention for a brand at a time when advertising and entertainment are converging. ii. This convergence is seen with experiential marketing (marketing of and with the consumer experience) as a form of IBP, with events such as concerts or music festivals marketed as experiences that are sponsored by brands. iii. Experiential marketing is increasingly popular with advertisers and marketers because they can enhance brand awareness and brand equity in ways that are easily integrated with advertising and integrated brand promotion. B. Brand-Building and the Convergence of Advertising and Entertainment i. Advertisers’ dollars have been diverted from traditional media because audience fragmentation, consumers’ desire to control their information environment, and ad-avoidance hardware and software are undermining their value. ii. The changing communication environment has not resulted in an “inexorable death spiral” for traditional media; instead, new technologies and in-person branded experiences have helped messages get to consumers in different ways. C. Discussion Activity 1 (PPT Slide 10, Time duration: 10-15 minutes)

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 16: Event Sponsorship, Product Placements, and Branded Entertainment

In 2005, Bob Garfield first published the “Chaos Scenario,” in which he predicted a near total collapse of traditional media models by 2015– 2020. Garfield predicted that as audiences become increasingly fragmented, advertising budgets for traditional media would erode. a. Do you agree with Garfield’s Chaos Scenario? 1. Answer: Responses will vary. The changing communication environment has not resulted in an “inexorable death spiral” for traditional media. Instead, new technologies and in-person branded experiences have helped messages get to consumers in different ways. That is why we focus on integration of various media in this book. Traditional media still attract large audiences and major investments by advertisers. D. Discussion Activity 1 Debrief (PPT Slide 11, Time duration: 5-10 minutes) i. What is the future of advertising content and delivery in the future? a. Answer: Responses will vary. Already billions of advertising dollars have been reallocated to other brand-building tools as advertising and entertainment continue to converge and give rise to new opportunities and ways to measure event sponsorship. II. Event Sponsorship (LO 2, PPT Slides 12-21) i. Many marketers use event sponsorship to get closer to their customers. Event sponsorship provides opportunities to tie in the additional tools of sales promotions and public relations. ii. Event sponsorship involves a marketer providing financial support to help fund an event, such as a rock concert or golf tournament. In return, that marketer acquires the rights to display a brand name, logo, or advertising message on-site at the event. iii. From a consumer psychology lens, events and sponsorship are an important context and industry to study because sponsorship and events involve consumer identity, passions, and sense of self as fitting with the event and/or its sponsors. iv. Sponsorships change each year for some annual events, and the good news to the earlier sponsor is it still may get “credit” for being the sponsor in the consumer’s memory—even when a new brand has replaced it. This additional benefit is referred to as sponsor spillover, which is great for the previous sponsor and bad for the incoming one. v. Event social responsibility provides an opportunity for sports sponsors to demonstrate good corporate citizenship, generate positive word of mouth, and boost both attendance and patronage intent. A. Who Uses Event Sponsorship? i. Events provide a captive audience for a sponsor, may receive radio and television coverage, are often reported in print media and covered online, and are frequently included in social media posts by organizers, sponsors, and attendees.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 16: Event Sponsorship, Product Placements, and Branded Entertainment

ii.

Event sponsorship can yield face-to-face contact with real consumers and receive in the moment and follow-up publicity and buzz—all good things for a brand. iii. Large firms like Best Buy, Sprint, GM, and Delta Air Lines sponsor events. Local events are an ideal format for small firms to gain recognition through this form of support media. Events can attract news coverage, thus extending the visibility of the sponsor. The events can be international in scope, as in the FIFA World Cup with big-name sponsors like Adidas, McDonald’s, Coke, Sony, Hyundai, and Visa. Or they may have a distinctive local flavor, like the Smucker’s Stars on Ice tour, which targets more local audiences. iv. The meaning can then be explained or articulated with traditional media or other forms of integrated brand promotion that explains the event sponsorship. This tactic is called sponsorship articulation. v. English professional soccer has become one of the darlings of the sports business because of the valuable marketing opportunities it supports. For example, Manchester United of the English Premier Soccer League surpasses the New York Yankees in its ability to generate revenues. In this world of big-time sports, global companies like Pepsi, Nike, and Vodafone pay huge amounts to have their names linked to the top players and teams. B. Finding the Sweet Spot for Event Sponsorship i. Event sponsorship measurement or measuring experiential marketing often with sponsors or partnering brands is sophisticated and analytical; for instance, event sponsorship measurement includes (but is not limited to) models and metrics on the following areas: event–sponsor fit, attitude, event social responsibility, sponsorship awareness, image transfer, affect transfer, brand meaning transfer, and sponsorship patronage (i.e., preference toward buying from the sponsoring brand). ii. Advertisers look for those opportunities where there is significant overlap between the event participants and the brand’s target market. If the event has big numbers of fans and/or participants, that’s even better. iii. Moreover, marketers stand to gain the most in supporting an event as its exclusive sponsor. However, exclusivity can be extremely pricey, if not cost prohibitive, except in those situations where one finds a small, neighborhood event with passionate supporters just waiting to be noticed. iv. There is much to be said for the sponsorship opportunity that a brand can uniquely own, and it doesn’t have to be the soccer World Cup or the Olympics to have a huge positive impact on a brand. E. Assessing the Benefits of Event Sponsorship

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 16: Event Sponsorship, Product Placements, and Branded Entertainment

Critics, in the earlier days of sponsorships, argued that the impact of event sponsorships is hard to determine and often driven by the ego. a. John Hancock carefully estimated that the college football bowl sponsorship yielded the equivalent of $5.1 million in advertising exposure for $1.6 million fee. b. Nielsen Media Research then developed Sponsorship Scorecard to assess effectiveness of sponsorships, so sponsors could see how effective their signage were at events. Advertisers are seeking a measure of media impressions to compare sponsorships to traditional advertising. ii. Fit is important to measure in a few areas with event sponsorship measurement. a. When an event sponsor fits a consumer’s image and sense of self, a consumer–event congruity/fit occurs where consumer participation in the event enhances the persuasiveness of the event and, in turn, causes the participants to think more positively about the sponsor and increases the desire to patronize the sponsoring brand. b. Another way to test for event sponsorship measurement success is with sponsor–event congruity/fit, or the degree to which consumers perceive the sponsor and sponsee as congruent in both image and function. F. Leveraging Event Sponsorship i. Leveraging is any collateral communication that reinforces the link between the brand and the event—word-of-mouth, publicity, or news coverage. ii. Any collateral communication or activity reinforcing the link between a brand and an event is referred to as leveraging a brand or activating a sponsorship—known as sponsorship activation. iii. Events can be leveraged as ways to entertain important clients, recruit new customers, motivate the firm’s salespeople, and enhance employee morale. iv. Events provide unique opportunities to entertain key customers. a. Marketers commonly use this point of contact to distribute specialty-advertising items so that attendees will have a branded memento to remind them of the rock concert or soccer match. b. Marketers may also use this opportunity to sell premiums such as T-shirts and cigarette lighters, administer consumer surveys as part of their marketing research efforts,; or distribute product samples. III. Product Placements (LO 3, PPT Slides 22-29) i. Product placement is the practice of placing any branded product into the content and execution of any entertainment product.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 16: Event Sponsorship, Product Placements, and Branded Entertainment

ii.

Working collaboratively, agents, marketers, producers, and writers find ways to incorporate the marketer’s brand as part of a show. The show can be of any kind—movies, short films on the Internet, and reality TV. iii. Anywhere and anytime people are being entertained, there is opportunity for branded entertainment. A. On Television i. There’s even a school of thought contending that product placements can be television’s savior as it is more conducive to consumer lifestyles. ii. Brands that are integrated into entertainment are, in effect, receiving an implicit endorsement. iii. Consumers are more likely to recall a product integrated into programming when it is supported by other promotional activities, such as commercials—because of the synergistic effects of advertising and IBP. B. At the Movies i. Auto firms have frequently featured cars in films—James Bond (BMW, Aston-Martin), I-Robot (Audi). White Castle, American Express, and Nokia also featured their brands in recent years. ii. Research indicates that viewers under 25 are most likely to notice brand placements and are also most likely to try brands they see in movies and films. C. In Video Game i. There is good reason marketers are spending more than $24 billion a year on this venue to reach their target audiences. ii. Brand placement in video games has wide reach and helps reach the unreachable. iii. Over 100 million U.S. households have gaming capability, out of which 40 percent of gamers are in the highly-sought-after 18–34 age cohort. iv. Billboards and virtual products are the most common techniques. Tom Clancy’s Splinter Cell shows Diet Sprite vending machines, and Puma is prominently shown as the brand worn by Nick Kang in True Crime: Streets of L.A. Examples of advergaming firms include LG, Coke, Radio Shack, U.S. Army and many more. v. Nielsen research has established that the majority of players see brand placements as adding to the quality of play, and because of the repetitive brand exposures in games, they affect purchase intent more than old-style media do. D. What We Know About Product Placement i. What was earlier rare, haphazard, and opportunistic, has become more systematic and, in many cases, even strategic. ii. Even though product placement will never be as tidy as crafting and running a 30-second TV spot, numerous case histories make several

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 16: Event Sponsorship, Product Placements, and Branded Entertainment

things apparent about using this tool, both in terms of challenges and opportunities. iii. Integrate the Placement within the IBP Campaign a. Placements have greatest value when integrated with other IBP techniques running simultaneously. b. As with event sponsorship, the idea is to leverage the placement. One should avoid isolated product placement opportunities but rather create connections to other elements of the advertising plan. c. For instance, placements combined with a well-timed public relations campaign can yield synergy. Recent research suggests that brands stand to gain the most from product placements when consumers are engaged enough to make it a part of their daily conversation. iv. Make the Placement Look Authentic a. Authenticity is the key to the success of product placement. b. Authenticity refers to the quality of being perceived as genuine and natural. Authenticity is emerging as a powerful influence on brand loyalty among consumers. v. Develop the Right Industry Relationships a. Success with product placements is fostered through developing deep relationships with the key players in this dynamic business. b. Advertising is a team sport. Good teams take time to develop. They also move product placement from an opportunistic and haphazard endeavor to one that supports IBP. vi. ROI a. Finally, much like event sponsorship, product placements present marketers with major challenges in terms of measuring the success or ROI of the activity. b. Product placements can vary dramatically in the value they offer to the marketer. c. One key item many brands look for is the celebrity connection in the placement, which can increase awareness, attitude, and engagement. E. Discussion Activity 2 (PPT Slide 28; Time duration: 10-15 minutes) i. Marketers are spending more than $24 billion a year on advergaming. a. Why have videogames attracted so much interest recently as a venue for product placements? 1. Answer: Young consumers are increasingly difficult to reach via traditional broadcast media. Product placements in videogames have helped marketers reach a vast, but in many ways unreachable, audience. Research shows that 56 percent of U.S. households (about 60 million) have at least one current-

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 16: Event Sponsorship, Product Placements, and Branded Entertainment

generation gaming console. An estimated 40 percent of hardcore gamers are between the ages of 18 and 34—a highlysought-after demographic, but one that is difficult to reach due to severe audience fragmentation. Video games are not only an attractive entertainment option but also a form of entertainment in which players rarely wander off during a commercial break. F. Discussion Activity 2 Debrief (PPT Slide 29; Time duration: 5 minute) i. What makes this venue even more appealing for advertisers as games and game players have moved online? a. Answer: As games have moved online, marketers have a greater opportunity to create more dynamic ad placement and to more accurately track where and how often gamers focus more closely on product placements. IV. Branded Entertainment (LO 4, PPT Slides 30-36) i. Branded entertainment entails the development and support of any entertainment property (e.g., a sporting event, TV show, theme park, short film, movie, or video game) where the primary objective is to feature one’s brand or brands in an effort to impress and connect with consumers in a unique and compelling way. a. NASCAR is the premier example of branded entertainment. ii. What distinguishes branded entertainment from product placement is that in branded entertainment, the entertainment would not exist without the marketer’s support, and in many instances, it is marketers themselves who create the entertainment property. A. Where are Product Placement and Branded Entertainment Headed? i. No one can really say how rapidly advertising dollars will flow into branded entertainment in the next decade although current estimates suggest that billions find its way annually to branded entertainment and product placement combined. The surge of these techniques relates to reaching the unreachable segments. ii. Forces can work to undermine the dollar flow. a. There is the risk of oversaturation, resulting in consumer annoyance. b. Branded entertainment is an often unpredictable path. c. Marketers and entertainment providers can have trouble working together and agreeing on priorities. d. There is a concern about playing it straight with consumers. B. What’s Old is New Again i. It turns out that marketers, media moguls, ad agencies, and entertainers have much in common. They do what they do for business reasons. And they have and will continue to do business together. ii. Procter & Gamble really started doing branded entertainment in the 1920s on the radio with the Crisco Cooking Talks show, a 15-minute

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 16: Event Sponsorship, Product Placements, and Branded Entertainment

show that featured recipes using Crisco. Now P&G works with media partners to ensure that its brands are embedded in the entertainment venues preferred by its targeted consumers. C. Discussion Activity 3 (PPT Slide 35; Time duration 5-10 minutes) i. Explain the difference between product placements and branded entertainment. a. Answer: The key distinction between product placements and branded entertainment is that product placement takes an existing product and places it in a “real-life” setting, such as movies and TV, making it seem natural to have that product in your home. For branded entertainment, the underlying entertainment product would not exist without the marketers’ support. Indeed, in many instances, the product is created entirely by a brand’s marketing division. • Examples of branded entertainment from the text include: o Unilever helped produce two specials to promote its Axe body wash, which ran on MTV and SpikeTV. o The Fairway Gourmet, featured on PBS, promoted images of the good life, courtesy of the Hawaii Visitors & Convention Bureau. o Chipotle Mexican Grill captured the attention of the Grammys’ TV audience (and attracted millions of YouTube views) with its animated film Back to the Start, focusing on the restaurant’s practice of doing business only with farmers dedicated to humane practices. o Clorox’s Brita brand worked with the digital studio Portal A to create a branded music video, Best Roommate Ever, starring Snapchat celebrity King Bach and NBA legend Stephen Curry and featuring Brita’s water-filtering product. D. Discussion Activity 3 Debrief (PPT Slide 36; Time duration: 10-15 minutes) i. Provide a recent example of each (product placements and branded entertainment). a. Answer: Responses will vary. One historical example is German automaker BMW. The appearance of a BMW Z3 in the 1995 James Bond film Goldeneye was a clear example of product placement. The vehicle was included in a film that was conceived and created entirely by an independent studio. But BMW has also subsequently branched into branded entertainment, partnering with its primary ad agency to create Internet-distributed short films that include some big-name actors, but exist primarily to feature the real star: the

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 16: Event Sponsorship, Product Placements, and Branded Entertainment

automaker’s sporty Z4. Branded entertainment includes sponsors like Monster with their ads appearing in motocross events, NASCAR races, etc. The Coordination Challenge (LO 5, PPT Slides 37-39) i. Advertisers have a vast and ever-expanding array of options for delivering messages to their potential customers. ii. The keys to success for any IBP campaign are choosing the right set of options to engage a target segment and then coordinating the placement of messages to ensure coherent and timely communication. iii. Many factors work against coordination: a. As advertising has become more complex, organizations often become reliant on functional specialists. Specialists, by definition, focus on their specialty and can lose sight of what others in the organization are doing. b. Internal competition for budget dollars often leads to rivalries and animosities that work against coordination. c. Coordination is also complicated because few ad agencies have all the internal skills necessary to fulfill clients’ demands for integrated marketing communications. d. The objective underlying this coordination is to achieve a synergistic effect. Individual media can work in isolation, but advertisers get more from their advertising dollars if various media build on one another and work together.

A. Knowledge Check (PPT Slide 39; Time duration: 5 minutes) i. Any collateral communication or activity reinforcing the link between a brand and an event is known as: a. Sponsor-event congruity/fit b. Sponsorship activation c. Sponsorship articulation d. Sponsor spillover 1. Answer: B. Sponsorship activation—Any collateral communication or activity reinforcing the link between a brand and an event is referred to as leveraging or activating a sponsorship. [return to top]

ADDITIONAL DISCUSSION QUESTIONS The following are discussion questions that do not appear in the text, PPTs, or courseware (if courseware exists) – they are for you to use as you wish. You can

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 16: Event Sponsorship, Product Placements, and Branded Entertainment

assign these questions several ways: in a discussion forum in your LMS; as wholeclass discussions in person; or as a partner or group activity in class. 1. Why has experiential marketing emerged as an effective tool for building brands? Does this changing communication environment mean the end of traditional media? a. Answer: When it comes to building brands, there are very few limits on what one can try with branded entertainment, and often quirky, edgy, or off-the-wall events will gain attention for a brand at a time when advertising and entertainment are converging. This convergence is seen with experiential marketing (marketing of and with the consumer experience) as a form of IBP, with events such as concerts or music festivals marketed as experiences that are sponsored by brands. Collectively, event sponsorship, product placements, and branded entertainment are more experiential forms of marketing. Experiential marketing or incorporating a brand with the consumer’s lived experience is popular for consumers because they are unique, enjoyable, fit in with the consumer’s lifestyle. Experiential marketing is increasingly popular with advertisers and marketers because they can enhance brand awareness and brand equity in ways that are easily integrated with advertising and integrated brand promotion. The changing communication environment has not resulted in an “inexorable death spiral” for traditional media; instead, new technologies and in-person branded experiences have helped messages get to consumers in different ways. Traditional media still attract large audiences and major investments by advertisers. Billions of advertising dollars have been reallocated to other brandbuilding tools as advertising and entertainment continue to converge and give rise to new opportunities and ways to measure event sponsorship. 2. How does event sponsorship serve as an effective means for reaching targeted groups of consumers? Think about a premium or memento that you acquired at a sponsored event. Does this memento bring back fond memories? Would you consider yourself loyal to the brand that sponsored this event? If not, why not? a. Answer: One of the time-tested and effective means for reaching targeted groups of consumers on their terms—often while giving back to a community and incorporating corporate social responsibility—is event sponsorship. Event sponsorship involves a marketer providing financial support to help fund an event, such as a festival, concert, tennis tournament, or holiday event. In return, that marketer acquires the rights to display a brand name, logo, or advertising message on-site at the event. If the event is covered on TV or social media stream, the marketer’s brand and logo will most likely receive exposure with the television and/or social media audience as well. Event

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 16: Event Sponsorship, Product Placements, and Branded Entertainment

sponsorship, product placements, and branded entertainment are popular with marketers because they can work in numerous ways to assist with a brandbuilding agenda beyond the capabilities of traditional media. They are also great for building brand community. From a consumer psychology lens, events and sponsorship are an important context and industry to study because sponsorship and events involve consumer identity, passions, and sense of self as fitting with the event and/or its sponsors. Consumers who have been to an annual sponsored event many times often identify themselves as ambassadors for the event or sponsorship. Answers will vary according to student’s mementos and opinions about their loyalty to the brand. 3. Why have videogames attracted so much interest recently as a venue for product placements? What makes this venue even more appealing for advertisers as games and game players move to the Internet? a. Answer: Product placements in videogames have helped marketers reach a vast, but in many ways unreachable, audience. Research shows that there are some 100 million households in the United States with gaming capability, and an estimated 40 percent of hardcore gamers are between the ages of 18 and 34—a highly sought-after demographic, but one that is difficult to reach due to severe audience fragmentation. Nielsen research has established that the majority of players see brand placements as adding to the quality of play, and because of the repetitive brand exposures in games, they affect purchase intent more than old-style media do. Other research shows that winning players who are promotion-focused view the brands and the game in a positive light. For marketers, the videogame provides not only access to that audience but access to an audience that is singly focused on what appears on the screen. As games move to the Web, that offers marketers greater opportunity to create more dynamic ad placement and to accurately track where and how often gamers focus more closely on product placements. 4. Explain the difference between product placements and branded entertainment. Describe how NASCAR has used branded entertainment to feature their brand in an effort to impress and connect with consumers in a unique and compelling way. a. Answer: Branded entertainment can be seen as a natural extension and outgrowth of product placement. With product placement, the question is, “What shows are in development that might be a good platform for our brand?” With branded entertainment, one option for advertisers is to create their own shows, so they never have to worry about finding a place for their brand. This guarantees that the brand will be one of the stars of the show. What distinguishes branded entertainment from product placement is that in branded entertainment, the entertainment would not exist without the marketer’s support, and in many instances; it is the marketers themselves

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 16: Event Sponsorship, Product Placements, and Branded Entertainment

who create the entertainment property. On the path of brand building, it is natural to evolve from simple product placement to the more elaborate enterprise of branded entertainment. If you’ve never watched a NASCAR race, give it a try, because even though NASCAR is all about the drivers and the race, every race is also a colossal celebration of brands. There are the cars themselves carrying the logos large and small of hundreds of NASCAR sponsors. Cup series sponsor Monster brings a fan-friendly entertainment facility to each race so sponsored drivers and attendees have a place to mingle. Huge television audiences and other media coverage will yield hundreds of thousands of media impressions, especially for those cars (and brands) leading the race, along with the branded facilities and logos visible around the track. A hundred thousand fans in the stands will make your brand a focal point, and many will visit a branded showcase before or after the race to meet the car and driver. Plus think of the many social media opportunities for conversations about your brand. In addition, general industry research indicates that NASCAR fans are unusually loyal to the brands that sponsor cars and have absolutely no problem with marketers plastering their logos all over their cars and their drivers. 5. Are there any complications to the integration and popularity of product placements and branded entertainment? a. Answer: It is easy to understand the surging popularity of product placements and branded entertainment. Reaching the unreachable through a means that allows your brand to stand out and connect with the consumer can only mean more interest from marketers. But there are always complicating and countervailing forces. Although billions of dollars yearly are flowing to these two popular IBP activities, several forces could work to undermine that dollar flow. One of the obvious countervailing forces is instant oversaturation. Like any other faddishly popular promotional tactic, if advertisers pile on too quickly, a jaded consumer and a cluttered environment will be the result. Some will argue that creative collaboration can always yield new opportunities for branded entertainment, but at some point, yet another motion picture featuring another hot automobile will start to feel a little stale. Indeed, we may already be there. A related problem involves the processes and systems that currently exist for matching brands with entertainment properties. Traditional media provide a well-established path for reaching consumers. Marketers like that predictability. Branded entertainment is an often unpredictable path. Yet in today’s fragmented media environment, brands and their agencies must continue to explore fresh and unexpected ways to engage audiences, avoiding the well-worn approaches of the past that can cause audiences to shrug or turn away. This is both the challenge and opportunity of branded entertainment: Discovering

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 16: Event Sponsorship, Product Placements, and Branded Entertainment

what will attract and delight targeted customer groups while leveraging the synergy of IBP to support brand building in a positive way. Finally, there is a concern about playing it straight with consumers. For example, some consumer advocacy groups charge that TV networks deceive the public by failing to disclose the details of product-placement deals. The argument seems to be that since many product placements are in fact “paid advertisements,” consumers should be advised as such. It is conceivable that a federal agency could call for some form of disclosure when fees have been paid to place brands in U.S. TV shows. However, now that the practice has become so prevalent, consumers are likely to perceive that money is changing hands behind the scenes. [return to top]

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 17: Integrating Direct Marketing and Personal Selling

Instructor Manual

CLOSE SCHEINBAUM, ADVERTISING AND INTEGRATED BRAND PROMOTION, 9E, 9780357721407; CHAPTER 17: INTEGRATING DIRECT MARKETING AND PERSONAL SELLING

TABLE OF CONTENTS Purpose and Perspective of the Chapter .......................................................................... 2 Cengage Supplements ........................................................................................................ 2 Chapter Objectives ............................................................................................................. 2 Complete List of Chapter Activities and Assessments .................................................... 3 Key Terms ............................................................................................................................ 4 What's New in This Chapter ............................................................................................... 6 Chapter Outline .................................................................................................................. 7 Additional Discussion Questions ..................................................................................... 18

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 17: Integrating Direct Marketing and Personal Selling

PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to provide an overview of direct marketing and database marketing and explain how they are used to synergize with other types of advertising and integrated brand promotion (IBP). There are privacy concerns to consider as well as the inherent advantages. Direct marketing relates with personal selling and closing sales. Personal selling brings the human element into the marketing/advertising/IBP process and shares many important features with direct marketing. For instance, as with direct marketing, an organization’s sales personnel are looking to develop a dialogue with customers that can result in product sales in the short run and repeat business over the long run. Trial purchases are desirable, but a satisfied customer who repurchases (and shares positive word-of-mouth for the brand) is a goal. Personal selling is ideally suited to encouraging brand loyalty. Direct marketing, database marketing, and personal selling fit into the overall framework of advertising and IBP.

CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 17-1

Define direct marketing and its purposes.

17-2

Overview how direct marketing evolved and the purposes of direct marketing today.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 17: Integrating Direct Marketing and Personal Selling

17-3

Identify the advantages of direct marketing.

17-4

Define database marketing and its purposes.

17-5

Identify the privacy concern that is associated with database marketing and direct marketing.

17-6

Overview the media applications associated with direct marketing.

17-7

Identify the role of direct marketing and personal selling in closing sales.

Activity/Assessment

Source (i.e., PPT slide, Workbook)

Duration

Icebreaker

PPT Slide 3

5-10 minutes

17-1

Discussion Activity 1

PPT Slide 10

5 minutes

17-1

Discussion Activity 1 Debrief

PPT Slide 11

5 minutes

17-4

Discussion Activity 2

PPT Slide 28

5 minutes

17-4

Discussion Activity 2 Debrief

PPT Slide 29

5 minutes

17-5

Discussion Activity 3

PPT Slide 34

5-10 minutes

17-5

Discussion Activity 3 Debrief

PPT Slide 35

5-10 minutes

17-6

Discussion Activity 4

PPT Slide 44

10-15 minutes

17-6

Discussion Activity 4 Debrief

PPT Slide 45

5 minutes

Knowledge Check

PPT Slide 51

5 minutes

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Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 17: Integrating Direct Marketing and Personal Selling

KEY TERMS Cost Per Inquiry (CPI) The number of inquiries generated by a direct marketing program divided by that program’s cost. Cost Per Order (CPO) The number of orders generated by a direct marketing program divided by that program’s cost. Creative Selling The act of assisting and persuading customers regarding purchasing decisions; creative selling typically involves products in which customers require extensive knowledge about the product before buying, such as specialty goods or higher-priced items. Cross-Selling Marketing programs aimed at customers that already purchase other products from the company. Customer Databases All databases with customer information, customer lists, records of customer information and customer information collected and used by companies or their partners. Customer Relationship Management (CRM) The continual effort toward cultivating and maintaining long-term relationships with customers; many companies have recognized trust and rapport are key elements to repeated sales and thus train their sales teams to emphasize each particular customer’s needs rather than the bottom line. Direct Mail A direct marketing medium that involves using the postal service to deliver marketing materials. Direct Marketing An interactive system of marketing that uses one or more advertising media or communication channels to affect a measurable response and/or transaction at any location. External Lists Mailing lists purchased from a list compiler or rented from a list broker and used to help an organization cultivate new business. General Data Protection Regulation (GDPR) Europe’s data privacy and security law that has requirements and laws for businesses and organizations with respect to personal and information privacy.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 17: Integrating Direct Marketing and Personal Selling

Hybrid Commerce A part of omnichannel strategy, where sales are done as a blend of in-person and online shopping or purchasing as customers have both digital and instore channels. Internal Lists An organization’s records of its customers, subscribers, donors, and inquirers, used to develop better relationships with current customers. Junk Mail Mail that perceivably has no benefit, is unwanted, and useless to the consumer. Mailing List/Email List A file of names and addresses that an organization might use for contacting prospective or prior customers. Marcom Manager A marketing communications manager who plans an organization’s overall communications program and oversees the various functional specialists inside and outside the organization to ensure that they are working together to deliver the desired message to the customer. Marketing Database A mailing list that also includes information collected directly from individual customers. Missionary Salesperson A person who proactively contacts customers after a purchase has been made, in order to ensure customer satisfaction and foster goodwill, by asking if the customer has questions about the product, providing additional information, and checking to see if the customer’s current needs have changed (and may present an opportunity for further sales). Netiquette Online etiquette, or the customary code of behaviors and norms of online interactions or communications. Opt-In Marketing When a customer or potential customer chooses to receive marketing communications from a company. Opt-Out When a customer or potential customer chooses not to receive marketing communications from a company; here the default would be where the company sends the messages and it is up to the customer to elect not to receive the messages.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 17: Integrating Direct Marketing and Personal Selling

Omnichannel The consumer has the choice of digital or in-store channels or both. Order Taking The practice of accepting and processing needed customer information for prearranged merchandise purchase, or scheduling services that a consumer will purchase once rendered. While their role in the transaction process rarely involves communicating large amounts of information, order takers must be able to answer customer questions and be accommodating and considerate. Personal Selling The face-to-face communications and persuasions process, often used with products that are higher-priced, complicated to use, must be tailored to individual user needs, involve a trade-in, or are judged at the point of purchase. RFM Analysis An analysis of how recently and how frequently a customer is buying from an organization and of how much that customer is spending per order and over time. Spam Unsolicited bulk email sent to a large number (often millions) of personal and commercial email addresses. System Selling Selling a set of interrelated components that fulfills all or a majority of a customer’s needs in a particular area. Telemarketing A direct marketing medium that involves using the telephone to deliver a spoken appeal. [return to top]

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition: •

New key terms: o customer databases o GDPR o hybrid commerce o netiquette o opt-in marketing

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 17: Integrating Direct Marketing and Personal Selling

opt-out

•

New examples of Coca-Cola, ESPN, Disney +, Hulu

•

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Direct Marketing: Definition and Purposes (LO 1, PPT Slides 5-11) i. With fragmenting markets and the diminishing effectiveness of traditional media in reaching those markets, many advertisers are investing in direct marketing programs for more precision in targeting and in the evaluation of results. ii. Direct marketing is an interactive system of marketing that uses one or more advertising media to affect a measurable response and/or transaction at any location. iii. Direct marketing is interactive—the marketer is attempting to develop an ongoing dialogue with the customer. iv. Direct marketing activities are broad in scope; ranging from interacting with consumers at sponsored events or corporate conferences, direct interaction with consumers via social media or online, mail or email sent directly to a consumer, e-commerce or even in a face-to-face personal selling conversation. v. Programs are planned with the notion that one contact will lead to another and then another, so the marketer’s message can become more focused and refined with each interaction.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 17: Integrating Direct Marketing and Personal Selling

vi.

Multiple media can be used in direct-marketing programs. This is an important point, for two reasons. First, direct mail and direct marketing are not equated. Second, as noted before, a combination of media is likely to be more effective than any one medium used by itself. vii. Mobile marketing, including location-based techniques, are ideally suited to direct marketing campaigns. Another key aspect of direct-marketing programs is that they are designed to produce immediate, measurable response. The final element of the definition notes that a directmarketing transaction can take place anywhere. The key idea here is that customers do not have to make a trip to a retail store for a directmarketing program to work. viii. A smart, consumer-based strategy is to let customers choose among online shopping, in-store shopping, or a hybrid of both. a. Called hybrid commerce or an omnichannel strategy, the consumer can have the best of both digital and in-store channels. Specifically, an omnichannel approach has value because physical retail interaction can “revive” inactive customers and make them active again, while online options are effective in maintaining and developing the relationship over time. A. Discussion Activity 1 (PPT Slide 10, Time duration: 5 minutes) a. Direct marketing is defined as an interactive system of marketing. a. Explain the meaning of the phrase “interactive system.” 1. Answer: In an interactive system, marketing planning begins with the assumption that one goal of the program will be to create a dialogue with key customers. Direct-marketing programs are commonly planned so that one contact will lead to another and then another. The message to the customer can be refined with iteration. b. Identify an example of a noninteractive system. 1. Answer: Responses will vary. Rarely would mass media advertising be undertaken with a goal of creating a dialogue with the customer. For example, customer interaction normally would not be anticipated with the airing of a radio ad. B. Discussion Activity 1 Debrief (PPT Slide 11; Time duration: 5 minutes) i. How would an interactive system be helpful in the cultivation of brand loyalty? a. Answer: When dialogue is pursued effectively, it can be valuable in tailoring offerings to the specific needs of the customer. This is just the sort of outcome that can foster brand loyalty. II. The Evolution of Direct Marketing and Direct Marketing Today (LO 2, PPT Slides 12-17) A. Origins in Catalog Marketing

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 17: Integrating Direct Marketing and Personal Selling

From Johannes Gutenberg and Benjamin Franklin to Richard Sears, Alvah Roebuck, and Michael Dell, the evolution of direct marketing has involved some of the great pioneers in business. ii. A company’s focus on building mailing lists (now termed customer databases). iii. Today, quality products, understated advertising, and customer-contact and distribution systems sustain the business. B. Direct Marketing Today i. Direct marketing today is largely digital and should be ethical and transparent about data privacy. a. Direct marketing has grown to largely focus on online channels, such as email marketing. b. Direct marketing today should be integrated with an organization’s other advertising and IBP efforts. c. For maximum effectiveness, brand integration should be the goal of advertising and direct marketing/online shopping initiatives. The evidence supports the point that integrated programs are more effective than the sum of their parts. d. Because direct marketing now is largely digital, it is important to remember that direct marketing involves a direct attempt to interact or create a dialogue with the customer in an ethical way if the customer wants the information. ii. Direct marketing programs are commonly used for three principal purposes: a. The most common use of direct marketing is to close a sale with a customer. This can be done as a stand-alone program, or it can be carefully coordinated with a firm’s other advertising. b. A second purpose of direct-marketing programs is to identify prospects for future contacts and, at the same time, provide indepth information to selected customers. c. Direct-marketing programs are also initiated to engage customers, seek their advice, and furnish helpful information about using a product, reward customers for using a brand, or foster brand loyalty in general. III. Advantages of Direct Marketing (LO 3, PPT Slides 18-21) i. The growth in popularity of direct marketing stems from a number of factors. a. Direct marketing programs offer advantages via mass media advertising, leading some organizations to budget for direct marketing activities. b. Direct marketing’s growing popularity can be summarized in a single word—convenience.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 17: Integrating Direct Marketing and Personal Selling

c. Dramatic growth in the number of dual-income and single-person households has reduced the time people have to visit retail stores. d. More liberal attitudes about the use of credit and the accumulation of debt have contributed to the growth of direct marketing. e. Developments in telecommunications have also eased the directmarketing transaction. f. Advances in technology, including computers and mobile devices, and the introduction of 5G are impacting the growth of direct marketing. g. It is common to find calculations like cost per inquiry (CPI) or cost per order (CPO) featured in direct-marketing program evaluations. IV. Database Marketing (LO 4, PPT Slides 22-29) i. Database marketing is a type of direct marketing that relies on customer databases to facilitate more personalized communication or messages to market a product or service. a. The one characteristic of direct marketing that distinguishes it from marketing more generally is its emphasis on database development. b. Databases are the centerpieces in direct-marketing campaigns, take many forms, and can contain many different layers of information about customers. A. Mailing Lists i. A mailing list/email list is a file of names and addresses that can be used to contact prospective or prior customers. a. Mailing lists are plentiful, easy to access, and inexpensive. b. The possibilities for targeting are enormous and include groupings like subscribers to certain media outlets, small business owners, new parents, or recent college graduates. c. Each time a consumer subscribes to a magazine, orders from a catalog, registers an automobile, fills out a warranty card, redeems a rebate offer, applies for credit, or joins a professional society, the name and address goes on another mailing list. ii. Two broad categories of lists should be recognized: the internal, or house, list versus the external, or outside, list. a. Internal lists are an organization’s records of its customers, subscribers, donors, and inquirers. b. External lists are purchased from a list compiler or rented from a list broker. B. List Enhancement i. The next step in the evolution of a database is mailing-list enhancement.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 17: Integrating Direct Marketing and Personal Selling

a. This involves augmenting an internal list by combining it with external lists or databases. External lists can be appended to or integrated with a house list. b. The most straightforward list enhancements are adding more names and addresses to an internal list. c. A second type of list enhancement involves incorporating information from external databases into a house list. d. Typically, this kind of enhancement includes any of four categories of information: 1. Demographic data—the basic descriptors of individuals and households available from the Census Bureau. 2. Geo-demographic data—information that reveals the characteristics of the neighborhood in which a person resides. 3. Psychographic data—data that allow for a more qualitative assessment of a customer’s general lifestyle, interests, and opinions. 4. Behavioral data—information about other products and services a customer has purchased; prior purchases can help reveal a customer’s preferences. C. The Marketing Database i. Beyond being a mailing list, a marketing database also includes information collected directly from individual customers. a. Building a marketing database entails pursuing an ongoing dialogue with customers and continuous updating of records with new information. b. A marketing database has a dynamic quality that sets it apart: it can be an organization’s living memory of who its customers are, and what they want from the organization. D. Marketing Database Applications i. One of the greatest benefits of a database is that it allows an organization to quantify how much business the organization is actually doing with its current best customers. ii. A good way to isolate the best customers is with a recency, frequency, and monetary (RFM) analysis. a. An RFM analysis asks how recently and how often a specific customer is buying from a company and how much money he or she is spending per order and over time. b. With this transaction data, it is a simple matter to calculate the value of every customer to the organization and identify those customers who have given the organization the most business in the past. iii. A marketing database can also be a powerful tool for organizations that seek to create a genuine relationship with their customers.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 17: Integrating Direct Marketing and Personal Selling

iv.

Reinforcing and recognizing preferred customers is another valuable application of the marketing database. a. Marketers use frequency-marketing programs to do so. v. Frequency-marketing programs have three basic elements: a. a database, which is the collective memory for the program b. a benefit structure, which is designed to attract and retain customers c. a communication strategy, which emphasizes a regular dialogue with the organization’s best customers. vi. Another common application for the marketing database is cross-selling. a. Most organizations have many different products or services they hope to sell. b. One of the best ways to build business is to identify customers who already purchase some of a firm’s products and create marketing programs aimed at these customers and featuring other products. c. Once an organization gets to know who its current customers are and what they like about various products, it is in a much stronger position to go out and seek new customers. The basic premise is simply to try to find prospects who share many of the same characteristics and interests of current customers. E. Discussion Activity 2 (PPT Slide 28; Time duration: 5 minutes) i. What is RFM analysis? a. Answer: An RFM analysis asks how recently and how often a specific customer buys from a company, and how much they spend per order and over time. RFM stands for Recency, Frequency, Monetary. ii. What is it generally used for? a. Answer: A primary purpose of RFM analysis is to identify the organization’s current, best customers. F. Discussion Activity 2 Debrief (PPT Slide 29; Time duration: 5 minutes) i. How would RFM analysis allow an organization to get more impact from a limited marketing budget? a. Answer: Since past behavior is the best predictor of future behavior, knowing who your best (and worst!) customers are can be beneficial in enhancing the productivity of marketing spending. Spending to retain or increase business from one’s best customers is typically a very efficient use of funds V. The Privacy Concern (LO 5, PPT Slides 30-35) i. Consumers are uneasy about the way personal information about them is being gathered and exchanged by businesses and the government without their knowledge, participation, or consent. ii. In response to public opinion, state and federal lawmakers have proposed and sometimes passed legislation to limit businesses’ access to personal information.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 17: Integrating Direct Marketing and Personal Selling

iii.

Companies can address customers’ concerns about privacy if they remember two fundamental premises of database marketing. a. A primary goal for developing a marketing database is to get to know customers in such a way that an organization can offer them products and services that better meet their needs. b. Developing a marketing database is about creating meaningful, long-term relationships with customers. If you want people’s trust and loyalty, it is important not to collect personal information and then sell it to a third party without consent. iv. Europe however does have one sweeping law addressing privacy. a. General Data Protection Regulation (GDPR) passed in 2018. This is Europe’s data privacy and security law that has hundreds of pages of new requirements and laws for businesses and organizations around the globe. It even gives people in the jurisdictions the right to ask organizations to delete their personal information data, although the organizations do not always have to do so. v. It is recommended that businesses (to address the very important and valid privacy concerns that consumers have), have consumers default to the opt-out setting, be transparent, be clear with more simple language, and to let consumers know exactly what they are signing up for and what is being done with their personal information. A. Discussion Activity 3 (PPT Slide 34, Time duration: 5-10 minutes) i. Since its launch in 2004, Facebook has grown to nearly 3 billion users worldwide, many of whom frequent the site daily. Despite its popularity, Facebook has encountered ongoing privacy issues related to the capture and management of user data. a. What might Facebook’s purpose be for capturing user data? 1. Answer: Responses will vary. Facebook integrates data with business partners like Microsoft, Amazon.com, and other retailers that cross-sells products to users based on user engagement within the platform. A recent study showed that it is viable to predict data accurately on a range of personal attributes that are highly sensitive just by analyzing a user’s Facebook Likes. B. Discussion Activity 3 Debrief (PPT Slide 35; Time duration: 5-10 minutes) i. How might privacy concerns affect the relationship between Facebook and its customers? a. Answer: Responses will vary. Facebook’s information-linking model makes privacy all but impossible. Many users complain that Facebook’s privacy settings are not clearly explained or too complicated. Consumers generally object to having their purchasing habits revealed to the public. For example, “Facebook Beacon formed part of Facebook's advertisement system that sent data from external websites to Facebook, for the purpose of

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 17: Integrating Direct Marketing and Personal Selling

allowing targeted advertisements and allowing users to share their activities with their friends. Beacon reported to Facebook on Facebook's members' activities on third-party sites that also participated with Beacon. These activities were published in users' News Feed. This occurred even when users were not connected to Facebook and happened without the knowledge of the Facebook user. The service was controversial and became the target of a class-action lawsuit, resulting in it shutting down in September 2009. One of the main concerns was that Beacon did not give the user the option to block the information from being sent to Facebook.” VI. Media Applications in Direct Marketing (LO 6, PPT Slides 36-45) i. As we saw in the definition of direct marketing, multiple media can be deployed, and some form of immediate, measurable response is typically an overriding goal. ii. Because advertising conducted in direct marketing campaigns is typified by this emphasis on immediate response, it is commonly referred to as direct response advertising. iii. Direct mail and telemarketing are the direct marketer’s traditional media. iv. All conventional media, like magazines, radio, and television can be used to deliver direct response advertising. A. Direct Mail i. Direct mail has some notable faults as an advertising medium: a. It can cost 15 to 20 times more to reach a person with a direct mail piece than to reach that person with a television commercial or newspaper advertisement. b. Also, in a society where people are constantly on the move, mailing lists are commonly plagued by bad addresses. c. Direct mail delivery dates, especially for bulk, third-class mailings, can be unpredictable. d. When precise timing of an advertising message is critical to its success, direct mail can be the wrong choice. ii. Direct mail’s advantages include: i. The medium is selective. When an advertiser begins with a database of prospects, direct mail can be the perfect vehicle for reaching those prospects with little waste. ii. Direct mail is a flexible medium that allows message adaptations on a household-by-household basis—personal salutations and the like. iii. Direct mail lends itself to testing and experimentation. With direct mail it is common to test two or more different appeal letters using a modest budget and small sample of households.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 17: Integrating Direct Marketing and Personal Selling

iv.

v. vi.

The array of formats an organization can send to customers is substantial to direct mail. It can mail large, expensive brochures or include technology. It can use pop-ups, foldouts, scratch-and-sniff strips, or simple, attractive postcards. Direct mail can be novel and unique to stand out and differentiate itself from junk mail—mail that is unwanted and is useless to the consumer.

B. Email i. Perhaps the most controversial direct marketing tool of recent years is referred to as “bulk” email or spam, the new form of junk mail. a. Some issues with email as a direct marketing tool is that it has high risk in offending consumers and of becoming known as a “spammer.” ii. Consumers are not averse to receiving targeted and useful email advertisements and that as the Internet continues to evolve as an increasingly commercial medium, those companies that observe proper netiquette (i.e., online etiquette) will be rewarded through customer loyalty. a. Opt-in Marketing is a type of permission marketing where the company gets a formal opt-in or positive action from a consumer to consent to receive further communication. b. Opt-out is just as important; it means that consumers should have the right to remove their permission marketing and no longer receive follow up communication or unwanted offers or contact from the company. C. Telemarketing i. Telemarketing can be a direct marketer’s most invasive tool. As with direct mail: a. Contacts can be selectively targeted. b. The impact of programs is easy to track. c. Experimentation with different scripts and delivery formats is simple and practical. d. Because telemarketing involves real, live, person-to-person dialogue, no medium produces better response rates. ii. Telemarketing has a few limitations: a. It is expensive on a cost-per-contact basis. b. Telemarketing does not share direct mail’s flexibility in delivery options. When you reach people in their home or workplace, you have a limited span of time to convey information and request some response. c. Telemarketing is a powerful yet highly intrusive medium that must be used with discretion. d. High-pressure telephone calls at inconvenient times can alienate customers.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 17: Integrating Direct Marketing and Personal Selling

D. Direct Response Advertising in Other Media i. The high costs associated with direct mail and telemarketing has led direct marketers to experiment with nearly every other medium. a. Using magazines, a popular device for executing a direct marketer’s agenda is the bind-in insert card. b. Insert cards not only promote but also offer the reader an easy way to order. c. Newspaper ads from The Wall Street Journal provide toll-free numbers for requesting information or ordering products from a wide range of national and global marketers. d. Digital advertising also has its own rates depending upon factors such as placement and type. E. Infomercials i. The infomercial is a novel form of direct response advertising that merits special mention. An infomercial is a long television advertisement made possible by the lower cost of ad space on many cable and satellite channels. a. Infomercials range from 2 to 60 minutes, but the common length is 30 minutes. 1. A critical factor is testimonials from satisfied users. Celebrity testimonials can help catch a viewer as he or she is channel surfing past the program, but celebrities aren’t necessary. Another key is that viewers are not likely to stay tuned for the full 30 minutes. 2. The implication is that the call to action should not come only at the end of the infomercial; most of the audience could be long gone by minute 28 into the show. 3. A good rule of thumb in a 30-minute infomercial is to divide the program into 10-minute increments and close three times. F. Discussion Activity 4 (PPT Slide 44; Time duration 10-15 minutes) i. On the one hand, it is common to talk about building relationships and loyalty with the tools of direct marketing. On the other hand, it is also true that direct marketing tools such as spam emails and telephone interruptions at home during dinner are constant irritants. a. How does one build relationships with such irritants? 1. Answer: We do see a paradox in the direct-marketing field. Despite all the talk about establishing meaningful dialogues and building long-term relationships with key customers, the reality of the marketplace is mailboxes cluttered with unwanted solicitations and dinners interrupted by unwanted phone calls. Is this relationship building? Ask students: For all the product categories you might purchase over the course of a year, how many of them do you find important enough to want a regular dialogue with the marketers of those products?

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 17: Integrating Direct Marketing and Personal Selling

G. Discussion Activity 4 Debrief (PPT Slide 45; Time duration: 5 minute) i. When is it realistic to think that the tools of direct marketing could be used to build long-term relationships with customers? a. Answer: If customers do not want to have dialogues with marketers (and we suspect that most don’t), what’s the point of trying to develop an interactive marketing system? We certainly would agree that database marketing yields important efficiencies. While these efficiencies make us better mass marketers, we fail to see how they fundamentally change the marketing paradigm. VII. Closing the Sale with Direct Marketing and/or Personal Selling (LO 7, PPT Slides 46-50) i. Organizations are looking to achieve synergy with a consistent and compelling message delivered through multiple advertising and IBP media. The evolution of direct marketing increases the challenge of raising integrated communication to new heights. ii. There are no simple solutions for achieving integrated marketing communications, but one approach that many organizations are experimenting with is the establishment of a marketing communications manager, or a “marcom” manager for short. a. A marcom manager plans an organization’s overall communications program and oversees the various functional specialists inside and outside the organization to ensure that they are working together to deliver the desired message to the customer, which ultimately yields a product sale. A. Personal Selling i. Personal selling is the use of one-to-one communication and persuasion for the purpose of selling; traditionally done via face-to-face communications, personal selling has emerged to include personal chats, video sessions, calls, and other ways to communicate in a more personal manner with a consumer as it relates to a sale or service. a. Personal selling is the face-to-face communications and persuasion process. b. Products that are higher priced, complicated to use, require demonstration, involve trade in or judged at the point of purchase depend heavily on personal selling—think autos, stereos, furniture. c. Failure to insert personal selling into the IBP process at the proper time for a brand can render all other IBP efforts worthless. ii. There are many different types of sales jobs. A salesperson can be engaged in order taking, creative selling, or supportive communication: a. Order taking involves accepting orders for merchandise or scheduling services. Order takers deal with existing customers who are lucrative to a business due the low cost of generating additional revenues from them. Order taking is the least complex of selling efforts.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 17: Integrating Direct Marketing and Personal Selling

b. Creative selling is the type of selling where customers rely heavily on the salesperson for technical information, advice, and service. The most demanding and complex selling positions is in business-to-business markets. People in creative selling positions often have advanced technical degrees. c. System selling entails selling a set of interrelated components that fulfill all or a majority of a customer’s needs in a particular area. System selling has emerged because of the desire on the part of customers for “system solutions.” d. The missionary salesperson calls on accounts with the express purpose of monitoring the satisfaction of buyers and updating buyers’ needs but may provide product information after a purchase. Many firms also use direct marketing tools like telephone and email reminders to complement the efforts of the missionary salesperson in maintaining a dialogue with key customers. B. Customer Relationship Management i. Salespeople can play a critical role as well in cultivating long-term relationships with customers—which often is referred to as a customer relationship management (CRM) program. CRM views the relationship with buyers as a partnership and a problem-solving situation. a. Salespeople no longer approach customers with the intention of making a sale. Rather, they are problem solvers who work in partnership with customers. C. Knowledge Check (PPT Slide 51; Time duration: 5 minutes) i. The act of assisting and persuading customers regarding purchasing decisions is known as: a. Creative selling b. Cross-selling c. Personal selling d. System selling 1. Answer: A. Creative selling—Creative selling is the act of assisting and persuading customers regarding purchasing decisions. Creative selling typically involves products in which customers require extensive knowledge about the product before buying, such as specialty goods or higher-priced items. [return to top]

ADDITIONAL DISCUSSION QUESTIONS The following are discussion questions that do not appear in the text, PPTs, or courseware (if courseware exists) – they are for you to use as you wish. You can

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 17: Integrating Direct Marketing and Personal Selling

assign these questions several ways: in a discussion forum in your LMS; as wholeclass discussions in person; or as a partner or group activity in class. 1. Direct marketing is defined as an interactive system of marketing. Explain the meaning of the phrase interactive system. Give an example of a noninteractive system. How would an interactive system be helpful in the cultivation of brand loyalty? a. Answer: In an interactive system, marketing planning begins with the assumption that one goal of the program will be to create a dialogue with key customers. Direct-marketing programs are commonly planned so that one contact will lead to another and then another. The message to the customer can be refined with iteration. Rarely would mass media advertising be undertaken with a goal of creating a dialogue with the customer. For example, customer interaction normally would not be anticipated with the airing of a radio ad. When dialogue is pursued effectively, it can be valuable in tailoring offerings to the specific needs of the customer: This is just the sort of outcome that can foster brand loyalty. 2. Review the major forces that have promoted the growth in popularity of direct marketing. Can you come up with any reasons why its popularity might be peaking? What are the threats to its continuing popularity as a marketing approach? a. Answer: Many factors have contributed to the growing popularity of direct marketing, including convenience for the customer and computerized customer tracking. Direct marketing is especially appealing because of its emphasis on monitoring and producing measurable results. One possible limit to its growing popularity may be suggested by the bulk of mail, phone calls, and email solicitations we all receive from marketers. Will the effectiveness of direct marketing begin to slide as each of us is bombarded with more direct marketing contacts? Another threat stems from consumers’ concerns about privacy. As direct marketers erode consumers’ trust through continued unwanted intrusions, or in the event of regulatory changes that seek to address consumer privacy concerns, there may be negative implications for the continued use of direct marketing programs and tactics. 3. On the one hand, it is common to talk about building relationships and loyalty with the tools of direct marketing. On the other hand, it is also true that direct marketing tools such as spam, and telephone interruptions at home during dinner are constant irritants. How does one build relationships with irritants? In your opinion, when is it realistic to think that the tools of direct marketing could be used to build long-term relationships with customers? a. Answer: We do see a paradox in the direct-marketing field. Despite all the talk about establishing meaningful dialogues and building long-term relationships with key customers, the reality of the marketplace is mailboxes cluttered with unwanted solicitations and dinners interrupted by unwanted

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 17: Integrating Direct Marketing and Personal Selling

phone calls. Is this relationship building? Ask yourself (or your students)—for all the product categories you might purchase over the course of a year, how many of them do you find important enough to want a regular dialogue with the marketers of those products? If consumers do not want to have dialogues with marketers (and we suspect that most don’t), what’s the point of trying to develop an interactive marketing system? We certainly would agree that database marketing yields important efficiencies. While these efficiencies make us better mass marketers, we fail to see how they fundamentally change the marketing paradigm. 4. Compare and contrast the purposes served by direct marketing versus personal selling. a. Answer: The primary purposes of direct marketing—to close a sale, to identify future prospects, and to engage customers—are also at the core of effective personal selling. In many ways, the purpose of personal selling is to reinforce those goals, especially for products that are higher priced, complicated to use, require demonstration, or in other ways are judged at the point of purchase. Often, sales personnel are primarily responsible for closing a sale, much as in direct marketing. But the role of personal selling, whether it involves sales staff taking orders or in being engaged in creative selling, is more often highly dependent on product expertise. As in direct marketing, personal selling also plays a key function in customer engagement. Sales staff are deployed to engage both prospective and current customers. Salespeople, in particular, play a critical role in long-term customer relationships through customer relationship management (CRM) programs—a process that can be enhanced through many of the techniques of direct marketing. 5. Since launching in 2004, Facebook has grown to more than a billion users, many of whom frequent the site daily to interact with friends and join interest groups. Despite its popularity, Facebook has encountered ongoing privacy issues related to the capture and management of user data. Discuss the privacy controversy surrounding Facebook and answer the following questions: What data was captured without the consent of users? What might have been Facebook’s purpose for capturing the data? Were third-party marketers involved in compromising user privacy? How might privacy concerns affect the relationship between Facebook and its customers? a. Answer: Answers will vary, but Facebook’s information-linking model makes privacy all but impossible. Facebook integrates data with business partners like Microsoft, the company’s exclusive banner ad supplier, and Amazon.com, a retailer that cross-sells products to users based on items users "Like" on the social-networking site. While Facebook claims it does not share information with third parties, its privacy policy once included the possibility for such, and outside Platform Developers get access user data for the purpose of creating applications. Moreover, Facebook is widely criticized for

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 17: Integrating Direct Marketing and Personal Selling

Facebook Beacon, a program to target ads to friends of users based on data mined from users’ online purchases. Consumers generally object to having their purchasing habits revealed to the public. Outside marketers complicate matters. In 2009, an Australian marketing company launched uSocial, a direct marketing service that “sells Facebook friends” to businesses, celebrities, and others who want to expand on the social network. Anyone wanting thousands of new Facebook friends can get them instantly through uSocial for a few hundred dollars. Facebook is investigating uSocial to see if it can block the firm’s use of Facebook information. In 2020, Facebook paid another $550 million to settle a privacy lawsuit involving allegations that the company violated an Illinois state law that requires companies to get permission from users to store their biometric data, which include data that links faces to individual identities.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 18: Public Relations, Influencer Marketing, and Corporate Advertising

Instructor Manual

CLOSE SCHEINBAUM, ADVERTISING AND INTEGRATED BRAND PROMOTION, 9E, 9780357721407; CHAPTER 18: PUBLIC RELATIONS, INFLUENCER MARKETING, AND CORPORATE ADVERTISING

TABLE OF CONTENTS Purpose and Perspective of the Chapter .......................................................................... 2 Cengage Supplements ........................................................................................................ 2 Chapter Objectives ............................................................................................................. 3 Complete List of Chapter Activities and Assessments .................................................... 3 Key Terms ............................................................................................................................ 4 What's New in This Chapter ............................................................................................... 6 Chapter Outline .................................................................................................................. 7 Additional Discussion Questions ..................................................................................... 18

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 18: Public Relations, Influencer Marketing, and Corporate Advertising

PURPOSE AND PERSPECTIVE OF THE CHAPTER The purpose of this chapter is to provide a balanced perspective of marketing for the fundamentals of buzz building, influencer marketing, and sponsored events as PR strategies while building capacity in PR to strengthen a brand’s overall IBP tool kit. PR and buzz building have never been more relevant as social media influencers are becoming more mainstream in business. Public relations and corporate advertising are exciting topics to conclude our examination of advertising and integrated brand promotion (IBP). Public relations (PR) bring to life the idea of “buzz building” for a brand that is increasingly popular in marketing today. PR can be used to activate social media/influencer marketing, engage mainstream media, highlight celebrity spokespersons, bond with a community, or stage a branded experience via event marketing/event sponsorships. PR also helps clean up messes when things go wrong. Public relations have progressed beyond its traditional role of managing goodwill or “relations” with a firm’s many publics which can take the form of damage control in the face of negative publicity or a corporate crisis. PR entails elements of corporate communications, influencing, and image management in times of noncrisis as well as crisis. Influencer marketing emphasizes public relations activities as a dedicated brandbuilding agenda in a digital and social media environment. Influencer marketing, as a special case of public relations, focuses on individuals or groups who can help foster and cultivate positive conversations about a brand. In this era of social media, blogs, and digital and mobile communications among consumers, a firm can monitor, understand, proactively influence, and better respond to what influencers and consumers are saying about its brands. Corporate advertising, which typically uses media to communicate a broad-based message, is distinct from product-specific brand building. Corporate advertising contributes to the development of an overall image and reputation. As consumers are becoming increasingly informed and sophisticated, they are also demanding a higher standard of conduct and ethics from the companies they patronize. When a company has established trust and integrity, it is much easier to build productive, long term relationships with consumers.

CENGAGE SUPPLEMENTS The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center. ●

Transition Guide (provides information about what is new from edition to edition)

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 18: Public Relations, Influencer Marketing, and Corporate Advertising

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CHAPTER OBJECTIVES The following objectives are addressed in this chapter: 18-1

Explain the role of public relations (PR) as part of an organization’s advertising and IBP strategy.

18-2

Detail the objectives of public relations.

18-3

Overview the tools for public relations.

18-4

Distinguish between proactive and reactive public relations strategies and understand what they may entail.

18-5

Illustrate the strategies and tactics used in influencer marketing.

18-6

Discuss the applications and objectives of corporate advertising.

Activity/Assessment

Source (i.e., PPT slide, Workbook)

Duration

Icebreaker

PPT Slide 3

5-10 minutes

18-1

Polling Activity

PPT Slide 13

10-15 minutes

18-3

Discussion Activity 1

PPT Slide 22

5-10 minutes

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 18: Public Relations, Influencer Marketing, and Corporate Advertising

18-3

Discussion Activity 1 Debrief

PPT Slide 23

10-15 minutes

18-5

Group Activity

PPT Slide 40

15-20 minutes

18-5

Group Activity Debrief

PPT Slide 41

10-15 minutes

Knowledge Check

PPT Slide 49

5 minutes

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KEY TERMS Ad Council A nonprofit organization since 1942 that produces, distributes, and promotes public ser-vice announcements on behalf of various sponsors. Advocacy Advertising Advertising that attempts to influence public opinion on important social, political, or environmental issues of concern to the sponsoring organization. Antibrand Entertainment Content that pokes fun at itself, doesn't mention the product, or uses some other seemingly unmarketable device to attract attention to a brand. Buzz Marketing The process of creating events or experiences that yield conversations that include the brand or product advertisers are trying to sell. Cause-Related Advertising Advertising that identifies corporate sponsorship of philanthropic activities. Chief Marketing Officer (CMO) The executive who is in charge of marketing strategy. Consumer Product Safety Commission (CPSC) An agency of the United States government that promotes the safety of consumer products by addressing injury risks, provides safety standards, and researches illness or injury that results from products. Crisis Communications Communicating with and responding to the public and stakeholders in times of problems, crises, or tragedies.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 18: Public Relations, Influencer Marketing, and Corporate Advertising

Diversity, Equity, And Inclusion (DEI) The representation of and focus on having work environments and/or ads are diverse, fair, and that groups are included in/feel belonging in. Electronic Word of Mouth (eWOM) The process of encouraging consumers to communicate with each other about a firm’s brand or marketing activities. Green Marketing Corporate efforts that embrace a cause or program in support of the environment. Green marketing is currently of particular importance, as the public is becoming increasingly aware and concerned about the urgency of environmental issues. Greenwashing Using advertising and IBP to communicate misleading or questionable claims about goods or services having environmental benefits. Influencer Marketing A series of personalized marketing techniques directed at individuals or groups who have the credibility and capability to drive positive word of mouth in a broader and salient segment of the population. Macro-Influencer A person who is paid or compensated to deliver messages or content about a brand and has at least 500,000 social media followers. Micro-Influencer A person who represents a brand, usually having a specific knowledge area, who has between 10,000-50,000 followers on social media. Pre-Roll Advertising Ads that are shown to consumers before a social media video or other content. Proactive Public Relations Strategy A public relations strategy that is dictated by marketing objectives, seeks to publicize a company and its brands, and is offensive in spirit rather than defensive. Publicity Unpaid-for media exposure about a firm’s activities or its products and services. Publicity Stunt A type of public relations that serves as a “buzz builder” that is crafted to get people talking or to get the brand on peoples’ mind.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 18: Public Relations, Influencer Marketing, and Corporate Advertising

Public Relations A marketing and management function that focuses on communications that foster goodwill between a firm and its many constituent groups. Public Relations Audit An internal study that identifies the characteristics of a firm or the aspects of the firm’s activities that are positive and newsworthy. Public Relations Plan A plan that identifies the objectives and activities related to the public relations communications issued by a firm. Reactive Public Relations Strategy A public relations strategy that is dictated by influences outside the control of a company, focuses on problems to be solved rather than opportunities, and requires defensive rather than offensive measures. Text Disclosures When a company or organization sends product- or service-related disclosures or important information to consumers via their phones. Vlog A video-based blog. Word of Mouth (WOM) In marketing parlance, this is the process of encouraging consumers to talk or communicate with each other about a firm’s brand or marketing activities. [return to top]

WHAT'S NEW IN THIS CHAPTER The following elements are improvements in this chapter from the previous edition: •

New key terms: o macro-influencer o micro-influencer o pre-roll advertising o CMO o antibrand entertainment o Ad Council o publicity stunt o vlog o text disclosures

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 18: Public Relations, Influencer Marketing, and Corporate Advertising

•

New LO on proactive and reactive PR strategies and influencer marketing

•

New content on buzz building and publicity stunts

•

New examples from the Ad Council, Dior, Amazon, Bumble

•

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Public Relations (LO 1, PPT Slides 5-13) i. The traditional role of public relations is to foster goodwill between a firm and its many constituent groups. a. These constituent groups include customers, stockholders, suppliers, employees, government entities, citizen action groups, and the public. b. Public relations function seeks to highlight positive events in an organization like quarterly sales and profits or noteworthy community service programs. c. Conversely, public relations can be used strategically for damage control when adversity strikes. 1. PR is also an important tool for implementing prosocial public service announcements (PSAs). 2. The Ad Council, a nonprofit organization since 1942 that produces, distributes, and promotes public service announcements on behalf of various sponsors.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 18: Public Relations, Influencer Marketing, and Corporate Advertising

3. Diversity, equity, and inclusion (DEI) is important in the advertising and marketing industries and agencies, and it is important to consumers as well. ii. It is important to use marketing and advertising expertise for good purposes, and to help society and people—not just to add to the bottom line financially in business. A. Public Relations, Social Media, and Brand Conversations i. There are many forces at work that support a growing role for PR activities as part of advertising and IBP campaigns as PR joins with social media to help spark brand conversations. ii. Antibrand entertainment is content that pokes fun at itself, doesn’t mention the product, or uses some other seemingly unmarketable device to attract attention to a brand. a. It may seem counterintuitive; but when done creatively, it can work, especially with millennials and GenZers. b. Modern times reflect a brand-obsessed world with an element of an antibrand culture. iii. Consumers are spreading information about brands like never before via social media and other forms of pass-along readership. a. Vlogs (video blogs), Snapchat, Instagram, Pinterest, Facebook, YouTube, Twitter, TikTok and whatever new digital, social, or mobile media tool will be invented next. iv. The challenge is not to make people talk about brands but to give them interesting things to talk about, which would bring a firm’s brand into the conversation in a positive way. a. Word of mouth (WOM) or, when digital, electronic word of mouth (eWOM) is the process of encouraging consumers to talk to each other about a firm’s brand or marketing activities. v. In today’s digital and interactive marketplace, a brand builder needs to take a proactive stance in influencing at least some of those conversations. a. It takes a strong team effort to ensure integration, and research indicates that PR expertise needs to be well represented as part of any contemporary marketing, advertising, and IBP team. b. Chief marketing officers (CMOs) are often in charge of marketing strategy, and they would be wise to lean in on PR. B. Public Relations and Damage Control i. An important part of public relations is crisis communications, or how to communicate and respond with the public and stakeholders in times of problems, crises, or tragedies. ii. Corporate renaming and bad PR are often related, as a smart PR strategy is to consider a new brand identity to help build trust after a major crisis, or series of brand transgressions (when a brand does something wrong and trust is lost).

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 18: Public Relations, Influencer Marketing, and Corporate Advertising

iii.

II.

The Federal Trade Commission as well as the Consumer Product Safety Commission (CPSC) aim to have pro consumer stances, and the decisions and recalls they put out have valuable implications for research as well. a. Other ways to help offer helpful information to consumers includes pre-roll advertising (ads before a social media video or other content) or text disclosures (sending product- or servicerelated disclosures or important information to consumers via their phones). b. As many brands (including human brands) have learned, consumers are more informed and more connected than ever, so the bad news travels faster and lingers longer. Polling Activity (PPT Slide 13; Time duration: 10-15 minutes) i. Consumers today are increasingly in control in this brand-obsessed world. a. Agree b. Disagree c. Not Sure 1. Answer: Responses will vary. Modern consumers, and particularly younger consumers, are drastically reshaping how brand messages are shaped and spread. As the class evaluates the changing role of public relations, students can consider how they discuss newly released videogames or computers, films and television shows, or even—as the chapter introduction illustrates—products as basic as toothpaste. Public relations has entered a new realm, one well beyond the traditional role of managing community goodwill or investor relations. While these functions remain critical, public relations has expanded to focus on a more aggressive, proactive role where buzz building is key and harnessing influence marketers is critical. • Shaping brand messages remains as critical as ever, though, and that presents a new challenge for marketers: to make sure that as consumers are discussing and commenting and evaluating brands, they have something interesting to talk about. Increasingly, public relations is focused as much on its traditional mission as on finding ways to insert brands into the day-to-day, virtual and real-world conversations of key consumers. • Ask students if their assessment applies to them and the people in their network.

Objectives for Public Relations (LO 2, PPT Slides 14-17)

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 18: Public Relations, Influencer Marketing, and Corporate Advertising

Even though reacting to a crisis is a necessity, it is always more desirable to take a proactive approach. ii. The key is to have a structured approach to public relations, including a clear understanding of objectives for PR. iii. Within the broad guidelines of image building, damage control, and establishing relationships with constituents, it is possible to identify six primary objectives of public relations: a. Promoting goodwill—this is an image-building function of public relations. Industry events or community activities that reflect favorably on a firm are highlighted. b. Promoting a product or service—press releases or events that increase public awareness of a firm’s brands can be pursued through public relations. c. Preparing internal communications—disseminating information and correcting misinformation within a firm can reduce the impact of rumors and increase employee morale. For events such as reductions in the labor force or mergers of firms, internal communications can do much to dispel rumors circulating among employees and in the local community. d. Counteracting negative publicity—this is the damage control function of public relations. The attempt is not to cover up negative events but to prevent the negative publicity from damaging the image of a firm and its brands. e. Lobbying—the public relations function can assist a firm in dealing with government officials and pending legislation. Industry groups maintain active and aggressive lobbying efforts at both the state and federal levels. f. Giving advice and counsel—assisting management in determining what (if any) position to take on public issues, preparing employees for public appearances, and helping management anticipate public reactions are all part of the advice and counsel function of public relations. III. The Tools of Public Relations (LO 3, PPT Slides 18-23) A. Press Releases i. Having a file of information that makes for good news stories puts the firm in a position to take advantage of press coverage. a. Items that make for good public relations include—new product launches; new scientific discoveries; new personnel; new corporate facilities; innovative corporate practices, such as energy-saving programs or employee benefit programs; annual shareholder meetings; and charitable and community service activities.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 18: Public Relations, Influencer Marketing, and Corporate Advertising

ii.

The drawbacks to press releases is that a firm often doesn’t know if or when the item will appear in the news journalists are free to edit or interpret a news release, which may alter its intended message. iii. Although public relations should not be defined by the press release, knowing how to write and release a press release is an important skill set. B. Feature Stories i. While a firm cannot write a feature story for a newspaper or any other medium, it can invite journalists to do an exclusive story on the firm when there is a particularly noteworthy event. ii. A feature story, as opposed to a news release, offers a particular journalist the opportunity to do a fairly lengthy piece with exclusive rights to the information for a certain period. C. Company Newsletters/e-Newsletters i. In-house publications such as newsletters can disseminate positive information about a firm through its employees. As members of the community, employees are proud of their firm’s achievements. Newsletters can also be distributed to important constituents in the community. D. Interviews and Press Conferences i. Interviews and press conferences can be highly effective public relations tool. Often, they are warranted in a crisis management situation. Firms have also successfully called press conferences to announce important scientific breakthroughs or to explain the details of a corporate expansion or for new product launch. E. Sponsored Events and Event Marketing i. Marketing and sponsoring events can also serve as an essential PR or community-building component for a brand. Sponsorships run the gamut from supporting community events to mega-events. At the local level, prominent display of the corporate name and logo offers residents the chance to see that an organization is dedicated to supporting their community. Another form of sponsorship is the fundraiser. Fundraisers for nonprofit organizations of all sorts give positive visibility to corporations. F. Publicity i. Publicity is essentially free media exposure about a firm’s activities or brands. The public relations function seeks to monitor and manage publicity but obviously can never actually control what the media chooses to say or report. One major advantage of publicity when the information is positive, is that it tends to carry heightened credibility because information shows up in newspapers and on news broadcasts. G. Discussion Activity 1 (PPT Slide 22; Time duration: 5-10 minutes)

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 18: Public Relations, Influencer Marketing, and Corporate Advertising

Would it be appropriate to conclude that the entire point of public relations activity is to generate favorable publicity and stifle unfavorable publicity? a. Answer: Responses will vary. Certainly, public relations activities are undertaken with the hope of influencing the publicity that a firm receives. However, another important contribution of public relations activities is to make certain that a firm’s employees have accurate information about its activities and intentions. This internal communication issue can be tremendously important for employee morale and, in most instances, is not an issue of publicity. ii. What is it about publicity that makes it such an opportunity and threat? a. Answer: Publicity can have tremendous positive or negative consequences because of the credibility of the news media. Most consumers recognize the persuasive intent of advertising and thus discount its credibility. The same level of discounting would not be expected for most instances of publicity. Firms may not have control over the type of publicity they receive. H. Discussion Activity 1 Debrief (PPT Slide 23; Time duration: 10-15 minutes) i. There is an old saying to the effect that “there is no such thing as bad publicity.” a. Can you think of a situation in which bad publicity would actually be good publicity? 1. Answer: Sometimes bad publicity is just that—bad publicity. But encourage students to also consider the truth of this old saying by asking if they can identify what types of benefit might come just from some of the perceived bad publicity situations identified in the chapter or elsewhere. Ask them to also consider celebrity news sites and magazines. Publicity about a popular celebrity’s troubled marriage, substance abuse problems, or even weight gain, might seem likely to tarnish their image and hurt their film or music careers, but students should be able to produce plenty of examples where the buzz about personal issues only increased interest in a celebrity’s professional work. IV. Proactive and Reactive Public Relations Strategies (LO 4, PPT Slides 24-29) i. Public relations strategies can be categorized as either proactive or reactive. a. Proactive public relations strategy is guided by marketing objectives, seeks to publicize a company and its brands, and should serve to build goodwill for the brand. b. Reactive public relations strategy focuses on problems to be solved rather than opportunities and requires a company to make

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 18: Public Relations, Influencer Marketing, and Corporate Advertising

defensive measures. The two strategies involve different orientations to public relations A. Proactive Strategy i. In developing a proactive PR strategy, a firm acknowledges opportunities to use public relations efforts to accomplish something positive, otherwise programs go unnoticed by important constituents. ii. To implement a proactive public relations strategy, a firm needs to develop a comprehensive public relations program. iii. The key components of such a program are: a. A public relations audit—a public relations audit identifies the characteristics of a firm that are positive and newsworthy. b. Information is gathered in much the same way as information related to advertising strategy is gathered. c. A public relations plan—the next step is a structured public relations plan. A public relations plan identifies objectives and activities related to the public relations communications issued by a firm. d. The components of a public relations plan include the following: 1. Situation analysis—this section of the public relations plan summarizes the information obtained from the public relations audit. 2. Program objectives—objectives should be set for both shortterm and long-term opportunities. The focal point is not sales or profits. Rather, factors such as the credibility of product performance (that is, placing products in verified, independent tests) and the stature of the firm’s research and development efforts (highlighted in a prestigious trade publication article) are legitimate types of PR objective. 3. Program rationale—the role the public relations program will play relative to all the other communication efforts— particularly advertising and community development—being undertaken by a firm. This is the area where an IBP perspective is clearly articulated for public relations effort. 4. Communications vehicles—this section of the plan specifies precisely what means will be used to implement the public relations plan. 5. Message content—PR messages should be researched and developed much the same way as advertising messages. 6. Evaluation - No plan for advertising or IBP is complete without specifics on how results will be measured. Decision makers need to know how the investment in PR paid off. B. Reactive Strategy i. Firms must implement a reactive public relations strategy when events outside the control of the firm create negative publicity.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 18: Public Relations, Influencer Marketing, and Corporate Advertising

ii.

It is difficult to organize for and provide around reactive PR. Since the events that trigger a reactive effort are unpredictable, a firm must be prepared to act quickly and thoughtfully. Two steps help firms implement reactive public relations strategy: a. The public relations audit—the public relations audit that was prepared for the proactive strategy helps a firm also prepare its reactive strategy. The information provided by the audit gives a firm what it needs to issue public statements based on current and accurate data. b. The identification of vulnerabilities—the other key step in a reactive strategy is to recognize areas where the firm has weaknesses in its operations or products that can negatively affect its relationships with important constituents. From a public relations standpoint, these weaknesses are called vulnerabilities. V. Influencer Marketing and Social Media for PR Strategy (LO 5, PPT Slides 30-41) i. Public relations is a discipline devoted to monitoring and managing what consumers are saying to one another about the firm. ii. In addition, consumers have become increasingly predisposed to talk about brands, both online and offline. iii. As such, PR can give consumers something positive to talk about. a. Influencer marketing refers to a series of personalized marketing techniques directed at individuals or groups who have the credibility and capability to drive positive word of mouth in a broader and salient segment of the population. b. The idea is to give the influencer something positive to talk about with regard to firms and brands. A. Professional Influencer Programs i. It is the process of targeting professionals (such as doctors, therapists, lawyers, accountants) with positive PR messages with the goal of having these “professionals” influence their clients’ attitudes toward a brand. a. One of the points of influencer marketing is that it feels more personal especially with a micro-influencer, or an influencer, usually in a specific knowledge area, who has between 10,00050,000 followers on social media followings. b. Macro-influencers that have at least 500,000 followers. ii. The process can be thought of as systematic “seeding of conversations” between a consumer, the influencer, and the brand. iii. Professionals in any field of endeavor take their role very seriously, so influencer programs directed to them must be handled with great care. a. First, their time is money, so any program that wastes their time will be a waste of money and not be implemented. b. However, tactics designed to encourage professionals to try the product themselves can be very valuable.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 18: Public Relations, Influencer Marketing, and Corporate Advertising

c. Also, messaging with professionals needs to provide intellectual currency and help the professionals learn important benefits of the brand and potentially increase their perceived expertise with their clients. d. Additionally, programs directed at professionals require a longterm commitment. e. For them to be advocates, trust first must develop, and any marketer must show patience and persistence to earn that trust. B. Peer-to-Peer Programs i. In peer-to-peer programs, the idea is to give influencers something fun or provocative to talk about. Think of it as an emphasis on “social currency” for peer-to-peer programs versus “intellectual currency” for professionals. ii. Buzz and Viral Marketing a. Buzz marketing is creating an event or experience that yields conversations that include the brand. b. Buzz marketing can be face to face with traditional word of mouth and/or via digital channels such as social media for eWOM. c. Viral marketing is the process of consumers marketing to consumers via the Web (e.g., via blogs or forwarding YouTube links) or through personal contact stimulated by a firm marketing a brand. d. The idea behind both buzz and viral marketing strategies is to target a handful of carefully chosen trendsetters or connectors as your influencers and let them spread the word. iii. Publicity Stunts a. Publicity stunts can be thought of as buzz builders, and there is nothing new about them, but there is a lot separating old-school publicity stunts from today’s influencer marketing. 1. Level of experience and sophistication of technology, organizations, ad agencies and marketing professionals when it comes to assisting clients with influencer programming. iv. Cultivating Connectors a. It is the process of cultivating peer to peer influencers to positively tout a firm’s brand. b. Developing connector databases, finding the conversation starters, tracking the buzz online and off—that’s the new era of influencer marketing. v. Transparency in Buzz a. One issue raised by the effort to cultivate connectors and influencers is the need to comply with all applicable laws and regulations and ensure transparency.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 18: Public Relations, Influencer Marketing, and Corporate Advertising

b. When a brand supplies an influencer with free samples (or payment) in exchange for social media buzz, the Federal Trade Commission requires that this be disclosed. C. Group Activity (PPT Slide 40; Time duration 15-20 minutes) i. With peer-to-peer influencer programs, the idea is to give influencers something fun or provocative to talk about. a. Working in small groups, propose what steps you would take to launch an effective peer-to-peer marketing campaign as part of the effort to raise awareness of your college or university and to increase applications to the school. 1. Estimated time: 15–20 minutes. Break the class into small groups of three to five students and have them complete the activity. Then conduct an instructor-led debrief using the questions on the next slide. D. Group Activity Debrief (PPT Slide 41; Time duration 10-15 minutes) i. What types of individuals would make the most influential connectors to generate buzz about the school? a. Answer: The last chapter of the text emphasizes the emerging importance of influencer marketing, and this exercise gives students the opportunity to demonstrate their understanding of the important role of connectors and a compelling marketing narrative in building buzz and creating effective peer-to-peer marketing programs. In their answers, students might suggest that current student leaders at the college could be effective connectors; so might the school’s alumni network. It is critical that students recognize that identifying potential connectors is not enough by itself. ii. What types of virtual and real-world tools could be developed to help those connectors have a compelling story about the college to share with others? a. Answer: Students also should demonstrate what online tools or real-world campaigns could be adopted to provide those connectors with an interesting story to tell about the college, one that is able to help the admissions office realize its goals of boosting applications. VI. Corporate Advertising (LO 6, PPT Slides 42-49) i. Corporate advertising is not designed to promote the benefits of a specific brand but is intended to establish a favorable attitude toward a company as a whole. A. The Scope and Objectives of Corporate Advertising i. Corporate advertising is a significant force in the overall advertising carried out by organizations around the world. Presumably, large firms have broader communications programs and more money to invest in advertising, which allows the use of corporate campaigns.

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 18: Public Relations, Influencer Marketing, and Corporate Advertising

ii.

The objectives for corporate advertising are well focused. In fact, corporate advertising shares similar purposes with proactive public relations when it comes to what companies hope to accomplish. The typical objectives are: a. To build the image of the firm among customers, shareholders, the financial community, and the general public. b. To boost employee morale or attract new employees. c. To communicate an organization’s views on social, political, or environmental issues. d. To better position the firm’s products against competition, particularly foreign competition. e. To play a role in the overall advertising and IBP strategy of an organization, providing a platform for more brand specific campaigns. B. Types of Corporate Advertising i. Corporate Image Advertising a. Majority of corporate advertising efforts focus on enhancing the overall image of a firm among important constituents—typically customers, employees, and the general public. The goal is to enhance the broad image of the firm and may not result in immediate effects on sales, however, attitude can play an important directive force in consumer decision making. ii. Advocacy Advertising a. Advocacy advertising attempts to establish an organization’s position on important social or political issues. Advocacy advertising meant to influence public opinion on issues of concern to the sponsor. iii. Cause-Related Advertising a. Cause-related advertising features a firm’s affiliation with an important social or societal cause—examples are reducing poverty, increasing literacy—and takes place as part of the cause-related marketing efforts undertaken by a firm. The goal of cause-related advertising can be to enhance the image of the firm by associating it with social issues of importance to its constituents; this tends to work best when the firm confronts an issue that truly connects to its business. iv. Green Marketing a. Green marketing refers to corporate efforts that embrace a cause or a program in support of the environment. b. Yet some firms do use advertising and IBP to communicate misleading or questionable claims about goods or services having environmental benefits, a practice known as greenwashing. C. Knowledge Check (PPT Slide 49; Time duration: 5 minutes)

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 18: Public Relations, Influencer Marketing, and Corporate Advertising

To identify inherent vulnerabilities so they are ready to react quickly and effectively in the face of hostile publicity, which of the following should a firm undertake? a. Crisis communications b. Proactive public relations strategy c. Public relations audit d. Public relations plan 1. Answer: C. Public relations audit—Organizations can use a public relations audit and identify inherent vulnerabilities so they are ready to react quickly and effectively in the face of hostile publicity.

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Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 18: Public Relations, Influencer Marketing, and Corporate Advertising

2. There is an old saying to the effect that “there is no such thing as bad publicity.” Can you think of a situation in which bad publicity would actually be good publicity? How is that possible? a. Answer: Sometimes bad publicity is just that—bad publicity. There seems to be very little positive that could come from the Taco Bell situation. But encourage students to also consider the truth of this old saying by asking if they can identify what types of benefit might come just from some of the perceived bad publicity situations identified in the chapter. Encourage students also to consider the example of celebrity news sites and magazines. Publicity about a popular celebrity’s troubled marriage, substance abuse problems, or even weight gain, might seem likely to tarnish their image and hurt their film or music careers, but students should be able to produce plenty of examples where the buzz about personal issues only increased interest in a celebrity’s professional work. 3. What key points need to be managed in creating successful influencer marketing programs with medical professionals? a. Answer: Medical professionals, whether the local vet, dentist, or physician, can be a powerful source of consumer influence. Savvy marketers should try to tap into this important point in conversations about brand, but they also must be considerate of several factors. Professionals in any field take their role seriously, so any influencer program must be approached thoughtfully and honestly. One highly successful approach in building influencer marketing with medical professionals is to allow the professional to try the product themselves and to provide detailed information about its benefits and success record. Time also is an important issue. Health professionals do not want their own time wasted. Just as importantly, programs directed at them typically require a long-term commitment on the part of the marketing or sales team. For a health professional to become a brand advocate required trust – and any marketer must show patience and persistence to develop that trust. 4. Review the different forms of corporate advertising and discuss how useful each would be as a device for boosting a company’s image. Is corporate advertising always an effective image builder? a. Answer: The three forms of corporate advertising discussed in this chapter are corporate image advertising, advocacy advertising, and cause-related advertising. Of the three, cause-related corporate campaigns are most likely to attract the attention of the press and generate publicity. The tools of public relations could be used in conjunction with cause-related advertising, and event sponsorship might be folded in as well to yield a highly effective IBP effort. Many forms of advertising can generate publicity, and many advertisers would view this as a desirable outcome for a campaign. For example, in the Benetton case mentioned earlier, provocative advertising was

Instructor Manual: Close Scheinbaum, Advertising and Integrated Brand Promotion, 9e, 9780357721407; Chapter 18: Public Relations, Influencer Marketing, and Corporate Advertising

undertaken with an obvious intent to generate publicity. Celebrities, popular music, and entertainment can also commonly attract the attention of the press. Is corporate advertising always an image builder? Not necessarily. Take cause-related advertising for instance: Research cited in the chapter shows that many consumers believe the only reason firms support causes is to enhance the company’s image. The image of a firm as self-serving becomes much greater than the image of a firm as a philanthropic partner. This negative reaction, however, is more prevalent among adults; youth seem to identify well with cause-related corporate campaigns. 5. Celebrity endorsements present opportunities and threats to top sports brands. Golf great Tiger Woods was leading the world in product endorsements until personal revelations stunned the public and damaged the golfer’s pristine image. Michael Phelps’ brush with drugs and the law created questions that his brand had to address. Discuss other examples of celebrity endorsements both good and bad. Did the event affect the brand in a positive why? How did the top brands react to the bad news? What public relations tools did management teams use to conduct damage control? Was the public relations strategy proactive or reactive? What was the primary public relations objective? What else might have the celebrity done to rehabilitate his image and the brands with which he was associated? a. Answer: In the months following the bad news, top global brands AT&T, Gatorade, and Accenture dissolved their agreements with Tiger Woods. Damage control efforts included a Tiger Woods Nike commercial, in which the golfer conducts a mea culpa conversation with his departed father, Earl Woods. Also, Tiger Woods issued a 14-minute televised public apology to address the situation head on, saying: “I want to say to each of you, simply, and directly, I am deeply sorry for my irresponsible and selfish behavior.” The PR objective was to counteract negative publicity, and it may have worked in the short-term, for Nike and EA Sports continued working with the golfer. Other brands have answered by pulling their sponsorships and distancing themselves from the celebrity. How these brands have recovered from this negative publicity varies.

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