Deck 19: Advertising, Public Relations, and Sales Promotions

Question 1

MAKING MASTERCARD PRICELESS
How do you pay for books, clothing, groceries, or travel For many consumers, the answer is MasterCard, which has more than 200 million cards in circulation. Yet despite the credit card's popularity, it lags behind its major competitor, Visa, by nearly 100 million cards. It is also outstripped by American Express for both monthly and annual purchases and spending volume. Because MasterCard's primary function is to process transactions between each customer's bank and each merchant's bank, the company must appeal to two customer bases to build market share: the merchants who accept MasterCard for payment and the purchasers who use the card. These audiences are closely related, which implies that a single campaign can target both, likely even for an extended period. However, even the most successful campaigns can grow stale.
In 1997, MasterCard International and the advertising agency McCann Erickson Worldwide launched the emotion-based "Priceless" campaign, which celebrated life's most precious moments with the tagline, "There are some things money can't buy. For everything else, there's MasterCard." The campaign was hugely successful, saving MasterCard from disaster, even in direct competition with the more widely accepted Visa card. However, as consumer values and needs changed and the marketplace evolved, MasterCard faced a new challenge: how to retain customer loyalty and brand identification while reinvigorating its advertising. The solution was the "Priceless Cities" campaign.
EXPANDING SERVICES TO MEET MARKET DEMAND
In 1966, a group of California banks created a member-owned association called the Interbank Card Association. This association grew its services, changing its name to MasterCard in 1979 to reflect a commitment to international growth. As it reached new markets across the globe, MasterCard also focused on technology innovation to help make economic transactions faster, more convenient, and more secure. The company acquired interest in the international credit card EuroCard (known today as Europay International), as well as Cirrus, a worldwide interbank network that links MasterCard, Maestro, and Diner's Club credit, debit, and prepaid cards to an international network of ATMs. The company also added fraud/risk management providers to its network of services.
Today MasterCard's technology platform can handle more than 160 million transactions every hour with a 99.9 percent reliability rate, and the company has issued a contactless, or smart, card that communicates with terminals via radio waves. This payment method does not require a signature and can be a card or key fob that is tapped rather than swiped; it also appears as a smart-phone app. To provide even more value to customers, the company has added sophisticated consulting and information services that help merchants gain insight into consumer spending, according to their transaction data and in-depth analyses. These efforts have dovetailed with changes in consumer behaviour as shoppers have begun relying more on electronic payment options and less on paper-based currency. In 2006, the company transitioned to a new corporate governance and ownership structure and began trading on the NewYork Stock Exchange.
PRICELESS REVISITED
MasterCard began its Priceless campaign by identifying its target audience, which in this case focused on consumers. Hoping to persuade shoppers to keep their MasterCard at the top of their wallets, the campaign stressed the relationship between the card and experiences, as opposed to possessions. In early television ads, the narration linked the price of beauty parlor visits and new outfits to the "priceless" expression on an ex-boyfriend's face at a reunion, to create positive self-assessment feelings. In another, the cost of tickets, refreshments, and souvenirs at a game were tied to the "priceless" opportunity for meaningful conversation between father and son, to invoke both happiness and love. The Priceless campaign included various promotions and competitions, in additions to these television spots.
In 2004, Priceless print ads took a new tack, weaving well-known retailers into the ads, together with MasterCard's theme. These retailers-which represented another of MasterCard's target audiences-received value from the prominent placement of their names and product images in the ads. Messaging moved from the general to the specific; an ad showing a teenage rock band playing in a garage that might once have said, "extra-long extension cord, $11; moving them out of the living room: priceless," was modified to indicate that the extension cord was from Radio Shack. The result was a form of symbiotic marketing in which well-known brand names helped attract consumer attention to MasterCard ads, and each brand appeared to be endorsing the other.
MAGIC MOMENTS, PRICELESS CITIES
In July 2011, MasterCard launched an expanded campaign, called Priceless Cities. This campaign, kicked off initially in New York, offers cardholders special experiences in major cities that can be shared with family and friends. Designed to provide busy consumers with memorable opportunities in the realms of sports, music, entertainment, shopping, travel, arts, culture, and dining out, the campaign touted early opening times at the toy store FAO Schwartz, a safari sleepover at the Bronx Zoo, prime tickets to a Yankees game with an ex-Yankee, and VIP dining experiences designed by a famed chef. The idea, says MasterCard's chief marketing officer, is to transform consumers' perception of the card from simply part of a priceless moment to being the force that enables such experiences. In a shaky economy, when most competitors focus on deals and discounts, the MasterCard campaign attracts attention by appealing to emotions rather than wallets and stressing unforgettable experiences rather than cost savings. The campaign forges an additional bond with card users, because it places MasterCard at the center of these memorable social activities.
The ads run in more than 100 countries and air in more than 50 languages and the overall campaign uses print, radio, transit, outdoor advertising, and television. It also includes digital platforms to drive home its message, including a new section of the MasterCard website created specifically for the campaign, as well as social media channels such as Facebook and Twitter. Cardholders register at the site to access special offers; World Elite MasterCard holders get preferred access to the events, as well as special offers.
Marketers must continuously evaluate their campaigns and update them to ensure they are effectively communicating with their customers. New channels like social marketing can change shopping behaviors, creating opportunities that must be considered as part of any marketing strategy. As MasterCard has shown, even the best ideas need new infusions and innovations to keep appealing to their targets.
Why was the original Priceless campaign such a success

Answer 1

Success of original priceless campaign of M Card
• The priceless campaign of M Card started in 1997 in response to the failure of the company to appeal to the public. The priceless campaign of M Card achieved the success by emphasizing on the targeted audience.
• The advertisement campaign of the company, "There are something money cannot buy. For everything there is master card" attracts more consumers to use master card as their payment mean.
• This advertisement attracts the consumers to switch to M Card and use M Card as the best way to pay for their purchases.
• Also, the priceless campaign in 2004 has included renowned retailers to the advertisement along with the master card theme, which attracts the targeted audience of the retails to use M card.
• In addition to this, the priceless city campaign attracts the consumers to use M card as the means for payment. The priceless city campaign allows the cardholders to share the card with family and friends.

Question 2

Consider all the diet products that are currently advertised on television today, including weight loss supplements, weight loss programs, and fitness equipment. Do you believe that some of these ads overstate what the product or service can actually do Do you think any of these ads are actually deceptive or puffery

Answer 2

Diet product promotion advertisement in television
Diet product advertisement programs in television, including weight loss supplements, weight loss programs, and fitness equipment, present their product and service by overstating what the product and service can actually do.
Authenticity of the advertisement:
Yes, most of the diet product advertisement programs shown in the television channel are actually deceptive and puffery.
Puffery method of advertisement:
In advertisement programs in television, including weight loss supplements, weight loss programs, and fitness equipment, are using puffery means to advertise their product. The manufactures are conveying entertaining message about the product, comparing the product with similar types, and presenting vague characteristics about the product which are actual unrealistic.
Deceptive advertisement:
The manufactures are advertising their products by using deceptive means. Deceptive advertisement includes false representation of the product. The advertisers make false claims about the product. Also, they use false statistics without any survey.

Question 3

What are the steps involved in planning an ad campaign
2. What is the difference between informational, persuasive, and reminder advertising
3. What are the pros and cons of the different media types
4. How can the effectiveness of advertising be evaluated

Answer 3

Steps involved in planning an advertising campaign
Advertising: Advertising is a form of marketing strategy used in different organizations to communicate about the product, service, idea, and about the organization to the public through media. Generally, advertising is a paid form of marketing organized through television, radio, print media, and internet.
Advertising campaign: Advertising campaign represents a series of interlinked advertisements which communicates a single idea or thought. Generally, advertising campaign is designed to communicate about few brands and products.
1.
Steps involved in an advertising campaign:
Step 1:
Identifying target audience: Before advertising for any product and service, the organization is required to conduct a market survey to identify the group of customer to whom organization is targeting.
Step 2:
Setting the objectives of advertising:
Each and every advertising campaign has certain objectives to be achieved, like achieving the desired level of sale, establishing the presence of the product in a particular market, and enhancing the market share. Thus, before executing an advertising campaign company is required to set the objectives.
Step 3:
Determining the budget of the campaign:
The planning of advertising campaign involves the budget of the advertisement. For preparing the budget of the advertisement, the organization should consider the role of the advertisement to enhance the sales and profitability. Also, the organization should consider the impact of advertisement over the time period.
Step 4:
Conveying the message:
In this step of advertisement campaign planning, the management of the organization decides what message about the product and service they want to convey to the public. The message conveying process includes communication of feature of the product and also includes the appeal to use the product.
Step 5:
Evaluation and selection of media:
This process includes the selection of the media form for advertisement. Organization can chose television, radio, print media, and internet to advertise about their product. Again this process depends on the targeted groups. For an instance if the product is targeting for young generation, then television and internet will be the right form of communication.
Step 6:
Creating advertisement:
In this process, the message and appeal of the advertisement campaign are converted into creative words, pictures, colors, music, and videos. Then the advertisement is communicated through media.
Step 7:
Assessment of the impact of the advertising campaign using marketing metrics:
This is the final step in planning an advertising campaign. In this process, the effectiveness of the advertisement to influence the targeted group of customer is measured through marketing matrix. The assessment of advertising is a continuous process. The assessment is performed before the advertisement is communicated, during the advisement, and after the advertisement.
2.
Informative, persuasive, and reminder advertising
Informative advertising:
• Informative advertising is a form of advertisement which is generally performed at the beginning stage of the product's life cycle.
• Informative advertisement is a mean of advertisement which is used to create the brand awareness and attract the consumer to buy the product.
• This form of advertisement is performed by the producer and retailer to create awareness at the introduction stage of the product.
Persuasive advertising:
Persuasive advertisement is performed at growth and early maturity stage of the product cycle. Generally, persuasive advertisement is performed to motivate the customers to change brand when the product have certain brand awareness.
Reminder advertising:
• Generally, reminder advertising is performed at the maturity stage of the product's life cycle. Reminder advertising is communicated to remind, prompt, and repurchase the product at the maturity level of the product's life cycle.
• Through reminder advertising the advertiser communicates its appeal to the public through traditional media, like television and print media.
3.
Advantages and disadvantages of different media types:
Television media:
Advantages:
• Television media is widespread all over world and viewed by all groups of customers. Thus, it is the easiest way to reach the customers.
• In television media, advertisement can be done both in the form of sound and video.
Disadvantages:
• The cost of advertising in television media needs more cost than other media.
• In television media, there are large number of channels and programs, which will increase the awareness of the competitor's product.
Radio media:
Advantages:
• The cost of advertising in radio media is less expensive.
• Like television, radio media has also wide reach.
Disadvantages:
• The radio media allows limited presentation of product and service as video cannot be presented.
• Radio media is less acceptable because consumer gave more attention to the television media than radio.
Magazines and journals:
Advantages:
• Magazines and journal are suitable if the product is targeting to a particular group of customer.
Disadvantages:
• Magazines are generally published in a particular interval. Thus, consumer will not get update in a regular interval.
• As magazines and journal are targeting a particular group, the advertisement for products for all class of people will be ineffective.
Newspaper:
Advantages:
• Newspapers are very flexible as they are published daily. Thus, the advertisement in newspaper will be more effective.
• Newspapers are communicated timely. Thus, in a regular interval consumer can view the advertisement.
Disadvantages:
• The advertisement in newspaper may be expensive in some market, as the advertisement has shorter life span.
Internet:
Advantages:
• Now-adays internet is a very famous media for advertising. The advertisement in internet permits the advertiser to target the specific group of customer easily.
• The advertisement in the internet can contain the details about the product and service. Also, the internet advertisement is highly flexible.
Disadvantages:
• Sometimes the advertisement in internet is confusing.
• In some cases, the advertisements are blocked by the software and the system.
Outdoor advertising:
Advantages:
• Outdoor advertising is less expensive than other form of advertising.
• As the outdoor marketing includes advertisement in city like posters and banners, interior and exterior of buses, advertising in the road side, it will be more effective
Disadvantages:
• It is difficult to target the customer in outdoor marketing.
• The outdoor marketing also includes the problem of placement.
Direct marketing:
Advantages:
• Through direct marketing the advertiser can directly catch the targeted customer as it includes personalized communication.
Disadvantages:
• Direct marketing includes higher cost than other media of advertising. The cost depends upon the type of direct marketing method used.
4.
Procedure to evaluate the effectiveness of the advertising:
Generally, the effectiveness of the advertisement is measured through marketing matrices. It involves different process. The following are the methods used to assess the effectiveness of the advertisement:
Pretesting: Pretesting is performed before the implementation of the advertisement campaign to assess whether the various element of the advertisement campaign are working in a right manner for which they are designed.
Tracking: Tracking includes the process of monitoring the impact of advertisement, such as the changes in sales volume in a regular interval, comparing the changes in Sales volume from period to period.
Post-testing: Post-testing is done after the advertisement campaign is implemented to assess the overall impact of the advertisement campaign.

Question 4

You are invited to your six-year-old niece's birthday party and bring her the new superhero doll being advertised on television. She's thrilled when she unwraps the gift but is in tears a short time later because her new doll is broken. She explains that on TV, the doll flies and does karate kicks, but when she tried to play with the doll this way, it broke. You decide to call the manufacturer, and a representative tells you he is sorry your niece is so upset but that the ad clearly states the doll does not fly. The next time you see the televised ad, you notice very small print at the bottom that states the doll does not fly. You decide to write a letter to the FTC about this practice. What information should you include in your letter

Question 5

What are the objectives of the Chipotle ad (page 579) Does the ad have more than one objective Explain your answer.

Question 6

Go to the website for the Children's Advertising Review Unit (CARU), one of the major self-regulatory bodies for children's advertising, at www.asrcreviews.org. Click on "CARU" and then "About Us-CARU" and examine the activities of CARU. How does this form of regulation complement the more formal regulation of federal and state agencies Now look under the News and Publications link. Choose one of the press releases and discuss what action CARU took against the identified company or group. What was the main issue in the case

Question 7

MAKE AN ADVERTISEMENT
Suppose you have been hired to develop a new ad for a product or service to target the college student market. The ad will appear in college student newspapers around the world. Please use the toolkit provided in your instructor's Connect course to develop the ad.

Question 8

MAKING MASTERCARD PRICELESS
How do you pay for books, clothing, groceries, or travel For many consumers, the answer is MasterCard, which has more than 200 million cards in circulation. Yet despite the credit card's popularity, it lags behind its major competitor, Visa, by nearly 100 million cards. It is also outstripped by American Express for both monthly and annual purchases and spending volume. Because MasterCard's primary function is to process transactions between each customer's bank and each merchant's bank, the company must appeal to two customer bases to build market share: the merchants who accept MasterCard for payment and the purchasers who use the card. These audiences are closely related, which implies that a single campaign can target both, likely even for an extended period. However, even the most successful campaigns can grow stale.
In 1997, MasterCard International and the advertising agency McCann Erickson Worldwide launched the emotion-based "Priceless" campaign, which celebrated life's most precious moments with the tagline, "There are some things money can't buy. For everything else, there's MasterCard." The campaign was hugely successful, saving MasterCard from disaster, even in direct competition with the more widely accepted Visa card. However, as consumer values and needs changed and the marketplace evolved, MasterCard faced a new challenge: how to retain customer loyalty and brand identification while reinvigorating its advertising. The solution was the "Priceless Cities" campaign.
EXPANDING SERVICES TO MEET MARKET DEMAND
In 1966, a group of California banks created a member-owned association called the Interbank Card Association. This association grew its services, changing its name to MasterCard in 1979 to reflect a commitment to international growth. As it reached new markets across the globe, MasterCard also focused on technology innovation to help make economic transactions faster, more convenient, and more secure. The company acquired interest in the international credit card EuroCard (known today as Europay International), as well as Cirrus, a worldwide interbank network that links MasterCard, Maestro, and Diner's Club credit, debit, and prepaid cards to an international network of ATMs. The company also added fraud/risk management providers to its network of services.
Today MasterCard's technology platform can handle more than 160 million transactions every hour with a 99.9 percent reliability rate, and the company has issued a contactless, or smart, card that communicates with terminals via radio waves. This payment method does not require a signature and can be a card or key fob that is tapped rather than swiped; it also appears as a smart-phone app. To provide even more value to customers, the company has added sophisticated consulting and information services that help merchants gain insight into consumer spending, according to their transaction data and in-depth analyses. These efforts have dovetailed with changes in consumer behaviour as shoppers have begun relying more on electronic payment options and less on paper-based currency. In 2006, the company transitioned to a new corporate governance and ownership structure and began trading on the NewYork Stock Exchange.
PRICELESS REVISITED
MasterCard began its Priceless campaign by identifying its target audience, which in this case focused on consumers. Hoping to persuade shoppers to keep their MasterCard at the top of their wallets, the campaign stressed the relationship between the card and experiences, as opposed to possessions. In early television ads, the narration linked the price of beauty parlor visits and new outfits to the "priceless" expression on an ex-boyfriend's face at a reunion, to create positive self-assessment feelings. In another, the cost of tickets, refreshments, and souvenirs at a game were tied to the "priceless" opportunity for meaningful conversation between father and son, to invoke both happiness and love. The Priceless campaign included various promotions and competitions, in additions to these television spots.
In 2004, Priceless print ads took a new tack, weaving well-known retailers into the ads, together with MasterCard's theme. These retailers-which represented another of MasterCard's target audiences-received value from the prominent placement of their names and product images in the ads. Messaging moved from the general to the specific; an ad showing a teenage rock band playing in a garage that might once have said, "extra-long extension cord, $11; moving them out of the living room: priceless," was modified to indicate that the extension cord was from Radio Shack. The result was a form of symbiotic marketing in which well-known brand names helped attract consumer attention to MasterCard ads, and each brand appeared to be endorsing the other.
MAGIC MOMENTS, PRICELESS CITIES
In July 2011, MasterCard launched an expanded campaign, called Priceless Cities. This campaign, kicked off initially in New York, offers cardholders special experiences in major cities that can be shared with family and friends. Designed to provide busy consumers with memorable opportunities in the realms of sports, music, entertainment, shopping, travel, arts, culture, and dining out, the campaign touted early opening times at the toy store FAO Schwartz, a safari sleepover at the Bronx Zoo, prime tickets to a Yankees game with an ex-Yankee, and VIP dining experiences designed by a famed chef. The idea, says MasterCard's chief marketing officer, is to transform consumers' perception of the card from simply part of a priceless moment to being the force that enables such experiences. In a shaky economy, when most competitors focus on deals and discounts, the MasterCard campaign attracts attention by appealing to emotions rather than wallets and stressing unforgettable experiences rather than cost savings. The campaign forges an additional bond with card users, because it places MasterCard at the center of these memorable social activities.
The ads run in more than 100 countries and air in more than 50 languages and the overall campaign uses print, radio, transit, outdoor advertising, and television. It also includes digital platforms to drive home its message, including a new section of the MasterCard website created specifically for the campaign, as well as social media channels such as Facebook and Twitter. Cardholders register at the site to access special offers; World Elite MasterCard holders get preferred access to the events, as well as special offers.
Marketers must continuously evaluate their campaigns and update them to ensure they are effectively communicating with their customers. New channels like social marketing can change shopping behaviors, creating opportunities that must be considered as part of any marketing strategy. As MasterCard has shown, even the best ideas need new infusions and innovations to keep appealing to their targets.
Why has MasterCard started to use "Priceless" more actively in its messaging

Question 9

Why do companies utilize public relations as part of their IMC strategy
2. What are the elements of a public relations toolkit

Question 10

Using the same ad, explain what kind of appeal it uses.

Question 11

PR Newswire attempts to provide information for "professional communicators." Visit its website at www.prnewswire.com and explore the "Products and Services" it has to offer. What would you consider this organization's primary purpose To whom does PR Newswire address the advertising appeals on its website

Question 12

What are various forms of sales promotions
2. What factors should a firm consider when evaluating a sales promotion

Question 13

Verizon spends millions of dollars each year on advertising for many different purposes. Provide an example of how it might design an informative ad, a persuasive ad, and a reminder ad.

Question 14

Name a current advertising slogan you believe is particularly effective for developing a unique selling proposition.

Question 15

Bernard's, a local furniture company, target markets to college students with apartments and households of young people purchasing their first furniture items. If you worked for Bernard's, what type of media would you use for your advertising campaign Justify your answer.

Question 16

Should Bernard's use continuous, pulsing, or flighting for its advertising schedule Why

Question 17

Suppose Porsche is introducing a new line of light trucks and has already created the advertising campaign. How would you assess the effectiveness of the campaign

Question 18

Suppose now that Porscheis planning a sales promotion campaign to augment its advertising campaign for the new line of light trucks. Which push and pull sales promotion tools do you believe would be most effective Why