Page 509 - Foundations of Marketing

476 Part 6 | Promotion Decisions

Issues for Discussion and Review

1. What is the difference between institutional and product 10. Discuss several ways to posttest the effectiveness of
advertising? advertising.
2. What is the difference between competitive advertising 11. What role does an advertising agency play in develop-
and comparative advertising? ing an advertising campaign?
3. What are the major steps in creating an advertising 12. What is public relations? Whom can an organization
campaign? reach through public relations?
4. What is a target audience? How does a marketer analyze 13. How do organizations use public relations tools? Give
the target audience after identifying it? several examples you have observed recently.
5. Why is it necessary to define advertising objectives? 14. Explain the problems and limitations associated with
6. What is an advertising platform, and how is it used? publicity-based public relations.
7. What factors affect the size of an advertising budget? 15. In what ways is the effectiveness of public relations
What techniques are used to determine an advertising evaluated?
budget? 16. What are some sources of negative public relations?
8. Describe the steps in developing a media plan. How should an organization deal with unfavorable
9. What is the function of copy in an advertising message? public relations?

Marketing Applications

1. An organization must define its objectives carefully 4. Negative public relations can harm an organization’s
when developing an advertising campaign. Which of the marketing efforts if not dealt with properly. Identify a
following advertising objectives would be most useful company that was recently the target of negative public
for a company, and why? relations. Describe the situation and discuss the com-
a. The organization will spend $ 1 million to move pany’s response. What did marketers at this company do
from second in market share to market leader. well? What, if anything, would you recommend that they
b. The organization wants to increase sales from change about their response?
$ 1.2 million to $ 1.5 million this year to gain the lead 5. College can be an exciting time. New friends, sporting
in market share. events, parties. But for many, it can also be a harrowing
c. The advertising objective is to gain as much market experience, with a more demanding class and homework
share as possible within the next 12 months. regimen and new adult responsibilities. In order to help
d. The advertising objective is to increase sales by reduce at least one aspect of the stress for your fellow
15 percent. students, you have decided to launch a laundry service,
which, for a set monthly fee, will pick up and deliver
2. Copy, the verbal portion of advertising, is used to move
clothes twice per week. You have contracted with a local
readers through a persuasive sequence called AIDA:
dry cleaner to perform the dry cleaning service. Initial
attention, interest, desire, and action. To achieve this,
reaction from friends has been very positive, but to
some copywriters have adopted guidelines for develop-
achieve scale, you need to attract many more customers.
ing advertising copy. Select a print ad and identify how
How can you reach them most effectively and effi-
it (a) identifies a specific problem, (b) recommends the
ciently? After considerable thought, you have decided
product as the best solution to the problem, (c) states the
to advertise in the college newspaper and a local, free
product’s advantages and benefits, (d) substantiates the
advertising paper that is distributed on campus. Create
ad’s claims, and (e) asks the reader to take action.
an advertising platform to communicate the basic issues
3. Advertisers use several types of publicity mechanisms. or selling points that you will include in your advertising
Look through some recent newspapers and magazines campaign.
or use an Internet search engine and identify a news 6. Develop your analytical and communication skills using
release, a feature article, or a captioned photograph used the Role-Play Exercises online at
to publicize a product. Describe the type of product. www.cengagebrain.com.

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