WEB EXERCISE 8Support Media & Direct Marketing Focus: Chapters 13 & 14 In this exercise you will learn more about a form of marketing communications that has recently become highly popular among adver

 Women in the work force  Vehicles on the road  Ability to remain innovative through technology  Digital out - of - home media  Video advertising networks  Digital billboards  Ambient advertising 13 - 4Alternative Out - of - Home Media  Aerial advertising  Outdoor advertising incorporating use of airplanes pulling banners, skywriting, and blimps  Not expensive and reaches specific target markets  Mobile billboards : Devices that carry advertisements and are mobile  Costs depend on the area and the mobile board company’s fees 13 - 5In - Store Media  Reach shoppers at the place where they buy  Include:

 In - store ads  Aisle displays  Store leaflets  Shopping cart signage  In - store TV 13 - 6Transit Advertising  Targets people who are exposed to commercial transportation facilities  Gained popularity due to:

 Increased number of women in the work force  Audience segmentation  People spending more time outdoors 213 - 7Types of Transit Advertising  Inside cards  Placed above the seats and luggage area inside public transport vehicles  Outside posters  Appear on the sides, backs, and/or roofs of buses, taxis, trains, and subway and trolley cars  Station, platform, and terminal posters 13 - 8Advantages of Outdoor Advertising Wide coverage of local markets Frequency and Geographic flexibility Creativity Ability to create awareness Efficiency and effectiveness Production capabilities Timeliness 13 - 9Disadvantages of Outdoor Advertising Waste coverage Limited message capabilities Wearout Cost Measurement problems Image problems 13 - 10Advantages and Disadvantages of Transit Advertising Advantages • Exposure • Frequency • Cost Disadvantages • Reach • Mood of the audience 13 - 11Sources of Audience Measurement in Out - of - Home Media Competitive Media Reports Simmons Market Research Bureau Point of Purchase Advertising Institute Outdoor Advertising Association of America Traffic Audit Bureau Scarborough American Public Transportation Association 13 - 12Promotional Products Marketing  Promotional medium or method that uses the following promotional products  Ad specialties  Premiums  Business gifts  Awards  Prizes  Commemoratives 313 - 13Specialty Advertising  Employs imprinted, useful, or decorative products for:

 Advertising  Sales Promotion  Motivational Communication  Distributed free 13 - 14Advantages and Disadvantages of Promotional Products Marketing Advantages  Selectivity  Flexibility  Frequency  Cost  Goodwill  High recall  Supplementing other media Disadvantages  Image  Saturation  Lead time  Reach 13 - 15Measurement in Promotional Products Marketing  Specialty advertising does not have an established ongoing audience measurement system  Studies show that:

 Promotional products have a positive impact on brand image  Brand impressions and purchase intent improves by adding promotional products to integrated media mix 13 - 16Yellow Pages Advertising  Is declining due to increased preference for online directories  Yellow Pages are referred to as a directional medium  Directional medium : Ads do not create awareness or demand for products or services but provide the location 13 - 17Advantages and Disadvantages of Movie Theater Advertising Advantages  Exposure  Emotional attachment  Cost  Attention  Clutter  Proximity  Segmentation  Integration Disadvantages  Irritation  Cost 13 - 18Branded Entertainment  Blends marketing and entertainment through television, film, music talent, and technology  Methods  Product placements : Refers to advertising within another program  Product integration : Placement is integrated throughout the program content and/or script 413 - 19Methods of Branded Entertainment  Advertainment : Creation of audio - visual content to entertain users while advertising products  Advergames : Online games that are designed to promote products  Content sponsorship  Ad - supported video on demand (VOD)  Others 13 - 20Advantages and Disadvantages of Branded Entertainment Advantages  Exposure  Frequency  Support for other media  Source association  Cost  Recall  Bypassing regulations  Acceptance and targeting Disadvantages  High absolute cost  Time of exposure  Limited appeal  Lack of control  Public reaction  Competition  Negative placements  Clutter 13 - 21Guerrilla Marketing  Nontraditional method of marketing  Known as:

 Stealth  Street  Buzz  Ambush  Viral marketing 13 - 22Miscellaneous Other Media Videogame ads Parking lot ads Gas station pump ads Place - based media Others 13 - 23Advantages and Disadvantages of Miscellaneous Alternative Media Advantages  Awareness and attention  Cost efficiencies  Targeting Disadvantages  Irritation  Wearout 1Copyright © 2015 McGraw - Hill Education. All rights reserved. No reproduction or distribution without the prior written consent o f McGraw - Hill Education.Chapter 14 Direct Marketing 14 - 2Factors that Led to the Growth of Direct Marketing Development and expansion of the Postal Service Consumer credit cards Changing structure of American society and the market Technological advances Changing values and lifestyles More sophisticated marketing techniques The industry’s improved image 14 - 3Role of Direct Marketing in the IMC Program  Combines:

 Advertising and public relations  Personal selling and sales promotions  Support media  Companies decide:

 Program objectives  Which markets to target and the strategies to use  How to evaluate the program’s effectiveness 14 - 4Direct - Marketing Objectives To seek a behavioral response To build an image To maintain customer satisfaction To inform and/or educate customers in an attempt to lead to future actions 14 - 5Direct - Marketing Approaches  One - step approach : Medium is used directly to obtain an order  Two - step approach : Uses more than one medium  First effort - Screens potential buyers  Second effort - Generates the response 14 - 6Direct - Marketing Media Direct Mail Catalogs E - mail Broadcast Media TV Spots Infomercials Home Shopping Print Media Telemarketing 214 - 7Direct Mail  Unsolicited mail  Advertisers spend substantially on this medium  Keys to success  Mailing list : Database from which names are generated  Ability to segment markets and offers  Threat - The Internet 14 - 8Catalogs and E - mail  Catalogs  Number of catalogs mailed is decreasing  Available on the Internet for consumer and business - to - business customers  E - mail : Electronic version of regular mail  Direct mail on the Internet  Lower cost and higher effectiveness than traditional direct mail  Spam : Electronic equivalent of junk mail 14 - 9Broadcast media and TV spots  Broadcast media  Categories - Television and radio  Direct - response advertising : Sales response for the offered product is solicited, through the one - or two - step approach  Support advertising : Supports other forms of advertising  TV spots  Short - form programs, include direct - response commercials seen on TV 14 - 10Infomercial and Home Shopping  Infomercial : Long commercial designed for 30 - minute or 1 - hour time slot  Designed to be viewed as a regular TV show  Effective with a broad demographic base  Home shopping  Substantial growth due to toll - free telephone numbers and widespread use of credit cards 14 - 11Print Media and Telemarketing  Print media  Difficult to use for direct marketing  Ads compete with the clutter of other ads  Space is relatively expensive  Response rates and profits are low  Telemarketing : Sales by telephone  Declined due to its potential for fraud and deception, and for annoyance 14 - 12Direct Selling  Direct, personal presentation, and sales in consumers’ homes  Repetitive person - to - person selling - Salesperson visits the buyer’s location to sell frequently purchased products  Nonrepetitive person - to - person selling - Salesperson visits the buyer’s location to sell infrequently purchased products  Party plans - Salesperson offers products to groups of people through parties and demonstrations 314 - 13Sales Strategy (Methods Used to Generate Sales, Reported as a 2012 of Sales Dollars) 14 - 14Evaluating the Effectiveness of Direct Marketing  Cost per order (CPO) : Evaluates the relative effectiveness of an ad based on the number of calls generated  Customer Lifetime Value (CLTV) : Determines the dollar value associated with a long - term relationship with a customer  Helps determine if a customer should be acquired  Optimizes existing customers’ service levels 14 - 15Advantages and Disadvantages of Direct Marketing Advantages • Selective reach • Segmentation capabilities • Frequency • Testing • Timing • Personalization • Costs • Measures of effectiveness Disadvantages • Image factors • Accuracy • Content support • Rising costs • Do Not Contact lists