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This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.
Chapter 1
Meet SS+K: A Real Agency Pitches a Real Client
1.1 Why Launch!?
LEARNING OBJECTIVE
Knowledge Is a Flat World
Learn about Advertising by Learning about Advertisers (Real Ones)
1.2 Meet Our Agency Partner: SS+K
LEARNING OBJECTIVE
OK, So Who Is SS+K?
Our SS+K Odyssey
How SS+K Works
KEY TAKEAWAY
EXERCISES
1.3 The Pitch: Win the Account
LEARNING OBJECTIVE
Why the Pitch Is Such a Big Deal
Who Conducts the Pitch?
The Pitch Process
Dig Deeper
KEY TAKEAWAY
EXERCISES
1.4 Let’s Meet the Potential Client
LEARNING OBJECTIVE
SS+K’s Pitch to Win the msnbc.com Account
Victory! SS+K Lands the msnbc.com Account
KEY TAKEAWAY
EXERCISE
1.5 Exercises
TIE IT ALL TOGETHER
USE WHAT YOU’VE LEARNED
DIGITAL NATIVES
AD-VICE
Chapter 2
A User’s Manual: Advertising, Promotion, and Marketing Essentials
2.1 Advertising Is Old—and Brand New
LEARNING OBJECTIVES
Some Quick Background and History
Types of Advertising/Promotion
Print Advertising
Direct Mail
Specialty Print Media
Broadcast Media
Outdoor Advertising
Point of Purchase
Online Advertising
Dig Deeper
Sales Promotions
Specialty Advertising
User-Generated Content and Word of Mouth (WOM)
Dig Deeper
Ad-Supported Content
Is Traditional Advertising Dead?
KEY TAKEAWAY
EXERCISES
2.2 The Four Cornerstones of Marketing: The Four Ps
LEARNING OBJECTIVE
Product
Place
SS+K Spotlight
Price
Promotion
“To P or Not to P”: How One P Affects Another
Dig Deeper
KEY TAKEAWAY
EXERCISES
2.3 Advertising Industry Structure
LEARNING OBJECTIVES
Types of Agencies
Full-Service Agencies
Specialized and In-House Service Agencies
Agency of Record
Dig Deeper
How Do We Get Paid?
Types of Clients
Job Functions inside the Agency
Account Managers
Account Planners
Creative Services Staff
Media Buyers
Job Functions Sometimes outside the Agency
Art Studios and Design Firms
Film/Video Companies
Web Designers
Printers
Sales Promotion Agencies
Research Companies
Careers in Advertising
Account Services
Creative Services
Media Services
Market Research
Media Jobs
Corporate Advertising
SS+K Spotlight
KEY TAKEAWAY
EXERCISES
2.4 Exercises
TIE IT ALL TOGETHER
USE WHAT YOU’VE LEARNED
DIGITAL NATIVES
AD-VICE
ETHICAL DILEMMA
Chapter 3
Advertising and Society
3.1 Economic Effects of Advertising
LEARNING OBJECTIVES
Advertising Is a Major Industry
Economic Rationale to Create Advertising
Economic Rationale to Accept Advertising
Economic Rationale to Use Advertising
KEY TAKEAWAY
EXERCISES
3.2 The Good: Advertising Enhances Our World
LEARNING OBJECTIVES
Advertising Is Culture Is Advertising
Prosocial Advertising
PSAs
SS+K Spotlight
Advocacy Advertising
Nonprofit Advertising
Dig Deeper
SS+K Spotlight
Green Marketing
KEY TAKEAWAY
EXERCISES
3.3 The Bad: Ethical Hot Buttons
LEARNING OBJECTIVES
The Ugly
Dig Deeper
Uncle Ben or CEO Ben?
We Know Where You Live
Dig Deeper
Living in a Material World
KEY TAKEAWAY
EXERCISES
3.4 Advertising Regulation: Who Looks Out for Us?
LEARNING OBJECTIVE
Government Regulation
The Federal Trade Commission
The Federal Communications Commission
Industry Regulation
The National Advertising Review Council (NARC)
The Interactive Advertising Bureau (IAB)
Word of Mouth Marketing Association (WOMMA)
The Direct Marketing Association (DMA)
KEY TAKEAWAY
EXERCISES
3.5 Exercises
TIE IT ALL TOGETHER
USE WHAT YOU’VE LEARNED
DIGITAL NATIVES
AD-VICE
ETHICAL DILEMMA
Chapter 4
Consumers and the Communications Process: SS+K Gets to Know Its Consumers
4.1 From Talking to Consumers to Talking with Consumers
LEARNING OBJECTIVES
The Traditional Linear Communications Model
A New Interactive, Nonlinear, Multivocal Communications Model
Understand Communication to Create Effective Advertising
KEY TAKEAWAY
EXERCISES
4.2 Is the Medium the Message? Components of Communications
LEARNING OBJECTIVES
Source Effects
Source Credibility
Source Attractiveness
Is It Better to Be an Expert or Hot?
Message Effects
SS+K Spotlight
Audio Clip
Situational Effects
KEY TAKEAWAY
EXERCISES
4.3 Diffusion of Innovations
LEARNING OBJECTIVE
The Diffusion Model
Who Spreads the “Cold”?
SS+K Spotlight
KEY TAKEAWAY
EXERCISE
4.4 Decision Making
LEARNING OBJECTIVES
The Decision-Making Process
Who Decides?
Dig Deeper
Models of Decision Making
Involvement and Perceived Risk
Heuristics: Rules of Thumb
KEY TAKEAWAY
EXERCISES
4.5 Internal Influences on Consumers
LEARNING OBJECTIVES
Attitudes and Information Processing
Response Hierarchies: Which Comes First?
Dig Deeper
SS+K Spotlight
Multiattribute Attitude Models
The Gift or the Wrapping? The Elaboration Likelihood Model
Perceiving Advertising Messages
Sensory Marketing and Advertising Stimuli
Subliminal Advertising
Learning and Memory for Advertising
Learning
Behavioral Learning Theories
Learning about Brands
Cognitive Learning Theories
How Do We Remember What We’ve Learned?
Types of Memory
How Do We Store Information in Memory?
How Do We Access Our Memories?
What Makes Us Forget?
KEY TAKEAWAY
EXERCISES
4.6 External Influences on Consumers
LEARNING OBJECTIVES
Opinion Leaders
The Market Maven
The Surrogate Consumer
Group Identification
Reference Groups
Subcultures
Taste Cultures
Brand Communities
Dig Deeper
KEY TAKEAWAY
EXERCISES
4.7 Culture, Globalization, and Advertising
LEARNING OBJECTIVES
Myths and Rituals
Is the World Flat?
Yes: Standardize for Greater Efficiency
No: Customize to Appeal to Local Tastes
How Local Do Ads Need to Be?
Semiotics: What Does It All Mean?
Components of Meaning
Hyperreality
KEY TAKEAWAY
EXERCISES
4.8 Exercises
TIE IT ALL TOGETHER
USE WHAT YOU’VE LEARNED
DIGITAL NATIVES
AD-VICE
ETHICAL DILEMMA
Chapter 5
Know Your Audience: SS+K Learns All About msnbc.com, Inside and Out
5.1 Types of Data
LEARNING OBJECTIVES
Source of the Data: Primary versus Secondary
Type of Data: Quantitative versus Qualitative
SS+K Spotlight
KEY TAKEAWAY
EXERCISE
5.2 Primary Data
LEARNING OBJECTIVES
SS+K Spotlight
Surveys
Dig Deeper
Dig Deeper
SS+K Spotlight
Focus Groups
SS+K Spotlight
Ethnography
SS+K Spotlight
Advantages and Disadvantages of Primary Data
KEY TAKEAWAY
EXERCISES
5.3 Secondary Data
LEARNING OBJECTIVES
Government Sources
Syndicated Sources
Internal Secondary Sources
Advantages and Disadvantages of Secondary Data
KEY TAKEAWAY
EXERCISES
5.4 Physiological Data
LEARNING OBJECTIVES
Conscious versus Subconscious Responses
Eye-Tracking
Galvanic Skin Response (GSR)
Galvanic skin response (GSR) is another physiological measure that advertising researchers have used for a long time. This measure is based on the fact that a person’s skin undergoes a change in its ability to conduct electricity when she experiences ...
Neuromarketing
Advantages and Disadvantages of Physiological Methods
KEY TAKEAWAY
EXERCISES
5.5 Using Research to Guide a Successful Launch
LEARNING OBJECTIVES
Idea Generation
Concept Design and Testing
SS+K Spotlight
Audience Definition and Profiling
SS+K Spotlight
KEY TAKEAWAY
EXERCISES
5.6 Exercises
TIE IT ALL TOGETHER
USE WHAT YOU’VE LEARNED
DIGITAL NATIVES
AD-VICE
ETHICAL DILEMMA
Chapter 6
Segment, Target, and Position Your Audience: SS+K Identifies the Most Valuable News Consumer
SS+K Spotlight
6.1 Segment Your Market: Who’s Out There?
LEARNING OBJECTIVES
Demographic Segmentation
SS+K Spotlight
Dig Deeper
Geographic Segmentation
Dig Deeper
Dig Deeper
Psychographic Segmentation
SS+K Spotlight
Behavioral Segmentation
B2B (Business to Business) Segments
Dig Deeper
SS+K Spotlight
KEY TAKEAWAY
EXERCISES
6.2 Target Your Customer: Who’s Going to Want It?
LEARNING OBJECTIVES
What Are the Properties of a Good Target?
Dig Deeper
SS+K Spotlight
Behavioral Targeting: Advertisers Know What You Like (Like It or Not)
Dig Deeper
SS+K Spotlight
KEY TAKEAWAY
EXERCISES
6.3 Position Your Brand: Why Will They Want It?
LEARNING OBJECTIVES
It’s All Relative
Positioning Dimensions
Dig Deeper
SS+K Spotlight
Final Words from Michelle on the STP Process
KEY TAKEAWAY
EXERCISE
6.4 Exercises
TIE IT ALL TOGETHER
USE WHAT YOU’VE LEARNED
DIGITAL NATIVES
AD-VICE
ETHICAL DILEMMA
Chapter 7
Decide What You Can Afford to Say: msnbc.com Sets the Budget
7.1 Budgeting Methods
LEARNING OBJECTIVES
Top-Down Budgeting
Percentage-of-Sales Method
Industry Averages Method
Pros and Cons of Top-Down Methods
Bottom-Up Techniques
Objective-Task Method
Stage-Based Spending
SS+K Spotlight
Budget Allocation and Timing
SS+K Spotlight
KEY TAKEAWAY
EXERCISES
7.2 Share of Voice (SOV)
LEARNING OBJECTIVE
How Loud Are You?
SS+K Spotlight
Using SOV
Dig Deeper
SOV for Small Companies
KEY TAKEAWAYS
EXERCISES
7.3 Return on Investment (ROI)
LEARNING OBJECTIVES
Did You Get What You Paid For?
Why ROI Is Important
Dig Deeper
ROI Is the Real Goal (SOV Is Only the Means to an End)
ROI Makes Advertising Accountable
SS+K Spotlight
Keys to Using ROI
Visibility: Can You See the ROI?
Dig Deeper
ROI Requires More Profit, Not Just More Revenue
ROI for Channel Effectiveness
Dig Deeper
Avoid Overemphasis on Short-Term ROI
KEY TAKEAWAY
EXERCISES
7.4 Managing a Budget
KEY TAKEAWAY
7.5 Exercises
TIE IT ALL TOGETHER
USE WHAT YOU’VE LEARNED
DIGITAL NATIVES
AD-VICE
ETHICAL DILEMMA
Chapter 8Create a Strategy: SS+K Puts Its Research to Use as the Agency Creates the Brief
SS+K Spotlight
8.1 The Power of Branding
LEARNING OBJECTIVES
Video Highlight
Characteristics of a Solid Branding Strategy
Accountability
Consistency
Brand Personality
Dig Deeper
Creating a Corporate Image
The Holy Grail: Brand Equity
Dig Deeper
Summary: Benefits of a Brand
KEY TAKEAWAY
EXERCISES
8.2 Describe Where You Are: A Strategic Framework
LEARNING OBJECTIVES
Situation Analysis
Competitive Situation
Customer Situation
SS+K Spotlight
Economic and Cultural Trends
Brand Audit
SS+K Spotlight
SS+K Spotlight
SWOT Analysis: Strengths, Weaknesses, Opportunities, and Threats
Internal Situation: Strengths and Weaknesses
External Situation: Opportunities and Threats
KEY TAKEAWAY
EXERCISES
8.3 Define Where You Want to Go: Set Objectives
LEARNING OBJECTIVES
Marketing Objectives
Advertising Objectives
DAGMAR Objectives
Communications Objectives
Creative Objectives
Media Objectives
Dig Deeper
KEY TAKEAWAYS
EXERCISES
8.4 Decide How You’ll Get There: Create a Strategy
LEARNING OBJECTIVES
Marketing Strategy
Advertising Strategy
Creative Strategy
Media Strategy
KEY TAKEAWAYS
EXERCISES
8.5 The Creative Brief
LEARNING OBJECTIVES
The Brief
SS+K Spotlight
SS+K Spotlight
KEY TAKEAWAY
EXERCISES
8.6 Exercises
TIE IT ALL TOGETHER
USE WHAT YOU’VE LEARNED
DIGITAL NATIVES
AD-VICE
ETHICAL DILEMMA
Chapter 9
Choose Your Communication Weapons: SS+K Decides Upon a Creative Strategy and Media Tactics
SS+K Spotlight
9.1 Integrated Marketing Communications: United We Stand
LEARNING OBJECTIVES
Dig Deeper
Audio Spotlight
KEY TAKEAWAY
EXERCISES
9.2 Elements of the Promotional Mix: The Advertiser’s Trusty Tools
LEARNING OBJECTIVES
Sales Promotions
When the Target Is Consumers
Price or Value Discount Promotion Tools
Visibility-Increasing Promotion Tools
Volume-Increasing Promotion Tools
When the Target Is Trade Partners (Employees, Distributors, and Retailers)
Discount Promotions
Visibility-Increasing Promotions
Dig Deeper
Public Relations
Press Release
Media Event
Publicity
Dig Deeper
Crisis Management
Personal Selling
Team Selling
Sales Force Automation (SFA)
Downsides of Personal Selling
Direct Marketing
Dig Deeper
Database Marketing
Customer Relationship Management (CRM)
Loyalty Programs
Behavioral Targeting
Dig Deeper
KEY TAKEAWAY
EXERCISES
9.3 Create the Promotional Plan
LEARNING OBJECTIVES
What, Who, Where—and How Much?
Raisin’ Awareness: How the CRMB Executed Its Plan
Set the Objectives
Define and Execute
Integrated Campaigns for Small Businesses
Pool Resources with Associations and Loyal Customers
Go Small and Local
KEY TAKEAWAY
EXERCISES
9.4 Exercises
TIE IT ALL TOGETHER
USE WHAT YOU’VE LEARNED
DIGITAL NATIVES
AD-VICE
ETHICAL DILEMMA
Chapter 10Plan and Buy Media: SS+K Chooses the Right Media for the Client’s New Branding Message
10.1 Traditional Advertising Media
LEARNING OBJECTIVES
Print Media
Newspapers
Magazines
SS+K Spotlight
Broadcast and Radio
Network TV
Cable/Satellite TV
Radio
SS+K Spotlight
Audio Clip
Out-of-Home
Sponsorships
Direct Response
Dig Deeper
KEY TAKEAWAY
EXERCISES
10.2 New Media
LEARNING OBJECTIVES
New Communication Channels
Online Advertising
SS+K Spotlight
M-Commerce
SS+K Spotlight
Product Placement
Dig Deeper
Advergaming
WOM/Viral/Buzz
Virtual Worlds
Consumer-Generated Media (CGM)
Dig Deeper
Social Media
Blogs and Online Reviews
Social Networking
The Dark Side of Social Media
KEY TAKEAWAY
EXERCISES
10.3 Media Strategy
LEARNING OBJECTIVES
Message Objectives
Media Planning
SS+K Spotlight
Dig Deeper
Market Coverage
SS+K Spotlight
Buying Eyeballs: Length of Ads and Scheduling Strategies
The Media Mix
Dig Deeper
SS+K Spotlight
KEY TAKEAWAY
EXERCISES
10.4 Exercises
TIE IT ALL TOGETHER
USE WHAT YOU’VE LEARNED
DIGITAL NATIVES
AD-VICE
ETHICAL DILEMMA
Chapter 11Execute on All Platforms: SS+K Goes into Production Overdrive
11.1 Execute on Media Platforms
LEARNING OBJECTIVES
SS+K Spotlight
Print
Newspapers
Dig Deeper
Magazines
A Picture Is Worth a Thousand Words—If It’s the Right Picture
TV
Radio
Dig Deeper
Outdoor
Billboards: More than Just a Big Print Ad
Enter the Digital Billboard
Dig Deeper
Point-of-Purchase (POP)
Online
How Online Ads Are Similar to Other Media
SS+K Spotlight
How Online Ads Differ from Other Media
Alternative Media
Dig Deeper
KEY TAKEAWAY
EXERCISES
11.2 How Do We Know What Worked? Evaluating Ad Executions
LEARNING OBJECTIVES
Recall and Recognition
SS+K Spotlight
The Stopping Power of Creative Ads: Are They Effective, or Just Cool?
New Ideas Support New Brand Launches
Copy Research
Pretesting and Posttesting
Copy Testing: Comparing Appeals
Dig Deeper
Creativity versus Safety
KEY TAKEAWAY
EXERCISES
11.3 Exercises
TIE IT ALL TOGETHER
USE WHAT YOU’VE LEARNED
DIGITAL NATIVES
AD-VICE
ETHICAL DILEMMA
Chapter 12
Make the Message Sell: SS+K Ensures that All Components Tell the Brand Story
12.1 Keys to Superior Advertising
LEARNING OBJECTIVES
Relevance and Resonance
Example: Household Challenge Meets Household Humor
Example: The Resonance of Personal Stories
Emotion, the Common Denominator
What Makes an Ad Work: It’s Like, Likeability
SS+K Spotlight
KEY TAKEAWAY
EXERCISES
12.2 Types of Appeals: How Ads Generate Resonance
LEARNING OBJECTIVES
Sex Appeal
Fear Appeals
Humor Appeals
Dig Deeper
Logical Appeals
Values Appeals
Dig Deeper
KEY TAKEAWAY
EXERCISES
12.3 Executional Frameworks: How Ads Generate Relevance
LEARNING OBJECTIVES
Lifestyle Framework
Scientific Framework
Dig Deeper
Spokesperson/Testimonial
Star Power
Dig Deeper
Spokescharacters
Demonstration
Slice-of-Life Framework
KEY TAKEAWAY
EXERCISES
12.4 The Creative Team
LEARNING OBJECTIVES
Copywriting
What’s in a Word?
SS+K Spotlight
Literary Forms and Devices
Art Direction
KEY TAKEAWAY
EXERCISES
12.5 Exercises
TIE IT ALL TOGETHER
USE WHAT YOU’VE LEARNED
DIGITAL NATIVES
AD-VICE
Chapter 13
Launch! msnbc.com’s First-Ever Branding Campaign
13.1 msnbc.com: A Campaign Portfolio
13.2 Logo
13.3 Print
13.4 TV
13.5 Online Banners
13.6 Screensaver
13.7 NewsBreaker Game
13.8 NewsBreaker Live
13.9 E-mail Blast
13.10 Spectrum Home Page
Chapter 14
ROI: msnbc.com Decides if the Campaign Worked
14.1 ROI: Show Me the Money
LEARNING OBJECTIVES
Return on Investment
Metrics
SS+K Spotlight
KEY TAKEAWAY
EXERCISES
14.2 ROI for Broadcast and Print Media
LEARNING OBJECTIVES
Network TV
SS+K Spotlight
Dig Deeper
Radio
Print
KEY TAKEAWAY
EXERCISES
14.3 ROI for Alternative Media
LEARNING OBJECTIVES
Point-of-Purchase
Out-of-Home Media
SS+K Spotlight
Product Placement
Video Advertising
Advergaming
SS+K Spotlight
Direct and Online Advertising
SS+K Spotlight
Buzz, PR, and WOM
SS+K Spotlight
KEY TAKEAWAY
EXERCISES
14.4 Exercises
TIE IT ALL TOGETHER
USE WHAT YOU’VE LEARNED
DIGITAL NATIVES
AD-VICE
ETHICAL DILEMMA
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