MAR 4333521

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MAR 4333-521

• Promotion Management
• Internet
• Rich Gonzalez University of South Florida
• Fall 2003Sarasota
• November 8, 2003

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URLs (used today)

• amazon.com
• www.bestbuy.com
• www.panera.com
• www.epinions.com
• www.srds.com
• www.lavasoft.de

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November 8, 2003--Agenda

• Mini-Evaluation of Your Ad
• Chapter 15Internet
• Wi-Fi Promotions Potentiality
• For November 15

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Schedule

• Nov 8 Sales Promotion 16
• Nov 15 Public Relations, Publicity, and
  Corporate Advertising17
• Nov 22 Measuring Promotional Program
  Effectiveness 19Assignment P (due)--Presentations
  
• Nov 29 Regulation of Advertising Promotion
  Social, Ethical, Economic Aspects of Promotion
  21-22 Presentations

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For Today November 8

• Chapter 15- Internet and Interactive Media
• Chapter 13- Support Media, Skim(IMC Perspective
  13-2)

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For November 15

• Chapter 16- Sales Promotion(IMC Perspective
  16-4, Perils of Promotions)(IMC Perspective
  16-5, Intel Inside)
• Bring in a printed article in Mediaweek abouta.
  Your Project P product/service, orb. Any other
  product/servicec. Be prepared to discuss
• Due November 15

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Assignment P Stage I
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Assignment PNew Product Promotion

• Stage II
• Investigate and Report
• Summary of Product/Service
• Summary of Promotion EffortsObjectives Target
  MarketUse of IMCMedia StrategyMedia Used
  Agency UsedBudget DescriptionSales Promotions

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Assignment PNew Product Promotion

• Stage III
• 10 Minute PresentationDescriptive
• Opinion/Analysis
• Performance of Promotional Efforts
• Prediction on Success of Product/Service

Due November 22
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Mini-Evaluation of Your Ad
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Mini-Evaluation of Your Ad

• Target
• Media Channel
• Agency
• Media Plan
• Consistency
• Apparent Objective
• Reach
• Cost/Budget Estimate
• Performance Evaluation
• Critique-Suggestion

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Lets Breeze Thru Some Print Media Items

• Please cover last weeks slides on your own

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Last Time

• Review a few concepts

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Radio and TV Similarities
Both Media . . .

• Are time oriented media
• Are sold in time segments
• Have some network affiliates
• Have some independents
• Use the public airway
• Are regulated by the F.C.C.
• Are externally paced media
• Are passive, low-involvement

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Begin Chapter 12
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Classifications of Magazines

• By Content
• Consumer Magazines
• Farm Magazines
• Business Magazines
• Professional Group Magazines
• Industrial Magazines
• Trade Magazines
• General Business Magazines
• Health Care magazines

• By Size
• Large
• Flat
• Standard
• Small or Pocket
• By Geography
• Local
• Regional
• National

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Magazines are targeted to specific audiences
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Special Magazine Features

• Bleed Pages
• Cover Positions
• Inserts
• Gate Folds
• Island Halves

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Advantages of Magazines

• Selectivity
• Reproduction Quality
• Creative Flexibility
• Permanence
• Prestige
• Receptivity, Involvement
• Services

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Disadvantages of Magazines

• Costs
• Limited Reach and Frequency
• Long Lead Time
• Clutter and Competition

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Magazine Circulationand Readership

• Circulation
• Primary Circulation
• Guaranteed Circulation
• Controlled-circulation
• Readership and Total Audience
• Pass-along readership
• Total audience (readers per copy X circulation)

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Audience Information and Research

• Circulation Verification Services
• Audit Bureau of Circulation (ABC)
• Business Publications Audit
• SRDS Media Solutions
• Syndicated Audience Studies
• Simmons Market Research Bureau
• Mediamark Research Inc. (MRI)

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SRDS Media Solutions provides information on
magazines
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Factors determining magazine ad rates

• Circulation of the magazine
• Color
• Size of the ad
• Position in the magazine
• Special mechanical or production
• Number and frequency of insertions

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The Future of Magazines

• Declining Ad Revenues
• Stronger Editorial Platforms
• Circulation Management
• Cross-Magazine and Media Deals
• Database Marketing
• Advances in Technology
• Electronic Delivery Methods

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Newspaper Overview

• The dominant advertising vehicle
• Account for 22 of ad dollars
• Over 1,400 daily papers in print
• Daily circulation over 60 million
• Main community medium
• Local ads provide 85 of revenue

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Newspaper Classifications

• Size
• Standard
• Tabloid
• Audience Type
• Ethnic
• Religious
• Business
• Financial
• College

Publication Frequency Daily Weekly Type National
Special-Audience Supplements
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Newspaper Advertising

• Display Ads
• Local (mostly retail)
• National or General
• Classified Ads
• Small items arranged by topic
• Rates based in size, duration
• Classified display - combination
• Public Notices
• Legal notices - public reports
• Notices by people, organizations
• Printed Inserts
• Prepared separately by advertisers

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Advantages of Newspapers

• Extensive Penetration
• Flexibility
• Geographic Selectivity
• Reader Involvement, Acceptance
• Services Offered

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Section Segmentation

• Sports Section
• Heavy (down-scale) male readership
• Society Section
• Heavy (mid-scale) female readership
• Financial Section
• Appeals to the business reader
• Comic Section
• Heavy child/adolescent readership

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Newspaper Drawbacks

• Production quality may be low
• Short life span
• Lack of selectivity
• Clutter
• Potential for poor ad placement
• Maybe overlapping circulation

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Unique Newspaper Features

• Mass audience
• Cross-section of population
• Local geographic coverage
• Wide range of content, subjects
• Selective readership by area
• Timely coverage, daily issues
• Readership concentrated in time

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The Future of Newspapers

• Competition from other media
• Circulation management
• Cross-media buys with other newspapers and
  magazines
• Attracting and retaining readers

One wordfor Future of Newspapers?
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Newspapers are trying to attract younger readers
Will they succeed?
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End Chapter 12
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IMC Perspective 13-2

• Digital Technology
• Where Can You Put Ads?
• Significance?

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Class ExerciseVirtual Advertising

• Two Teams
• One Sheet of PaperNames (printed) on one side
• On the other side 1. Virtual advertising
  pluses2. Virtual advertising minuses 3. Apply
  virtual advertising to two entertainment media.
  Rough out idea.

Class Discussion
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Because its purpose is to create a customer, the
business enterprise has two--and only these
two--basic functions marketing and innovation. 
Philosophy

• Peter F. Drucker, 1970

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Prediction

• Business is going to change more in the next 10
  years than it has in the past 50.
• William H. Gates III, 2000

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Prediction

• Everyone will have access to most of the worlds
  information.
• William H. Gates III, 2000

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(No Transcript)
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Best Buy--

• Product Promotion and DistributionU.S. and
  Canada
• Rolling StonesForty Flicks, 4 DVD Set
• Sold In Best Buy Exclusively, 4 Months
• 700 Stores
• Issues, Significance?
• http//story.news.yahoo.com/news?tmplstoryu/nm/
  20031011/music_nm/music_best_buy_dc_2

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We SToppted right here at 1242 PM
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Amazon.com

• Site Visit

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Start Chapter 15
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Very Early Internet Ad

• Lifeminder ad
• Objective Get customers to web site

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Internet - Overview

• A worldwide means of exchanging information and
  communicating through a system of interconnected
  computers from military, government, educational
  and commercial sources.
• Components include
• Electronic mail method of sending messages
• electronically
• World Wide Web universal database of
• information available to internet users

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Elements of the Internet

• Electronic mail (e-mail)
• Allows users to send electronic mail
• Usenet
• Discussion groups, newsgroups, bulletin boards
• Telnet
• Databases, library catalogs, and electronic
  journals
• File transfer protocol (ftp)
• Software protocol for transferring files
• Hypertext transfer protocol (http)
• Software protocol for transferring hypertext
  language files
• Client server
• Computer system for transferring files between
  computers
• Gopher
• Document retrieval system used to search for
  Information
• Wide Area Information Server (WAIS)
• Use of keywords in databases to retrieve full
  text information
• World Wide Web (WWW)
• Sound, graphic images, video, and hypertext on
  single pages

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Uses of the Internet for Marketing

• Electronic business use of the Internet to
• conduct business activities
• Electronic marketing the use of the Internet
• to conduct marketing activities
• Electronic commerce use of the Internet for
• buying and selling products and services
• Electronic media using the Internet as an
• advertising medium and a way to disseminate
• information to consumers

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The Internet Picture
Senders
Internet
Receivers
Internet
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Internet Terms

• Ad clicks
• Ad click rate
• Ad views (impressions)
• Banner
• Button
• CPC
• CPM
• Domain name
• Hit

• Interstitial
• Link
• Opt-in-e-mail
• Page views
• Rich media
• Sponsorships
• Unique users
• Valid hits
• Visits

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Internet Communications Objectives

• To create awareness
• To generate interest
• To disseminate information
• To create an image
• To create a strong brand
• To stimulate trial

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Skyy Blue creates an image for the brand through
its web site
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Internet Advertising

• Sponsorship
• Ownership of an entire site or page
• Banner Ads
• A portion of another owners page
• Pop-Ups
• Small windows that appear automatically
• Interstitial
• Ads appearing while waiting for a page to load
• Push Technologies or Webcasting
• Automatic or unsolicited message delivery
• Links
• Hypertext links to other sites, pages or locations

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Banner ads come in a variety of formats
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Personal Selling on the Internet

• May replace personal selling
• Reduces high cost of personal calls
• Vastly increases potential reach
• May enhance personal selling efforts
• Provides quick, easy, information to prospects
• May be a source of leads
• May help to enhance customer data bases
• May stimulate trial of the goods or service
• May improve one-on-one communications
• May serve as a sales conference medium

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Internet Ads

• An array of early ads
• Objective Get customers to web site

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Sales Promotion on the Internet

• Offering consumers special incentives via the
  internet to encourage trial, repeat purchase, or
  customer loyalty
• Distribution of samples, coupons
• Ability to enter contests, sweepstakes
• Premium offers
• Loyalty programs

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Pepsi uses the Internet for promotions
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Public Relations on the Internet

• Internet as a medium for conducting PR
• Media relations websites
• Dissemination of customized information
• Provision of information on the company
• and its products
• Philanthropic activities

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Internet Direct Marketing

• Direct Mail
• Highly targeted
• Relies on e-mail lists
• Attempts to reach those with specific needs
• Often used by catalogers
• Marketing Databases on the Net
• Companies build or acquire a database
• The database is sold to subscribers
• Delivery may be on- or off-line

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Internet Direct Marketing

• Infomercials
• Program content similar to television, cable or
  satellite
• Web provides for greater audience interaction
• E-Commerce
• Rapid growth rates likely to continue
• CDs, books, travel are main categories
• Clothing, cars, financial services are all
  gaining ground

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eBay is a popular site for e-commerce
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eBay

• Site Visit, if time

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Measures of Effectiveness

• Online Measuring
• Data on demographics, psychographics, location of
  access, media used, buying habits, and more.
• Recall and Retention
• Daily user interviews to measure recall and
  retention of web content viewed
• Nonresponse
• Measures of destination after failure to
  click-through
• Surveys
• On- and off-line surveys to determine usage
  factors
• Panels
• Usage and attitude data obtained from a specific
  group
• Sales
• Sales volume keyed to specific times and sites
• Tracking
• Accumulation of site performance data

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Sources of Measurement Data

• Arbitron
• Audit Bureau of Circulation
• Internet Advertising Bureau (IAB)
• iVALS
• PC-Meter
• eMarketer
• eAdvertiser
• Double-Click
• 24/7
• Jupiter, Forrester and MediaMetrics
• Business 2.0, Industry Standard, Fast Company
• Internet Advertising Report and Individual.com

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Internet Advantages

• Target Marketing
• Message Tailoring
• Interactive Capabilities
• Information Access
• Sales Potential
• Creativity
• Exposure
• Speed

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Internet Disadvantages

• Measurement problems
• Audience characteristics
• Websnarl
• Clutter
• Potential for deception
• Costs
• Limited production quality
• Poor reach

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Adware

• ClearSearch
• File names Loader.exe
• When Adware.ClearSearch is executed, it performs
  the following actionsAdds the
  value"ClrSchLoader""ltoriginal executable
  pathgt"to the registry keyHKEY_LOCAL_MACHINE\S
  OFTWARE\Microsoft\Windows\CurrentVersion\Run
• Periodically updates itself by downloading
  control data from the search site, for example,
  www.clrsch.com.
• Contacts the search site to track advertisements.

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End Chapter 15