Second Edition

Thomas C. O'GuinnProfessor of Advertising and Business AdministrationResearch Professor, Institute of Communications ResearchUniversity of Illinois, Urbana-Champaign

Chris T. AllenArthur Beerman Profcssor of MarketingUniversity of Cincinnati

Richard J. SemenikProfessor of MarketingDavid Eccles School of BusincssUniversity of Utah-Salt Lake City

~ South-Western College PublishingWI III!r'I"fm!;o//o! Thomso!l I)lth/i"hin/.!," COfflj)(lfly

Cincinnati· Albany. Boston· Detroit· Johannesbutg • London' Madrid· Melbourne' Mexico City

New York· PacificGrove· San francisco' Scottsdale' Singapore. Tokyo' Toronto

Preface xxAcknowledgments xxxv

Part OneTHE PROCESS:ADVERTISING IN BUSINESSAND SOCIETY I1 Advertising as a Process 22 The Structure of the Advertising Industry:

Advertisers,Advertising Agencies, andSupport Organizations 36

3 The Evolution of Advertising 644 Social,Ethical, and Regulatory Aspects

of Advertising 96IMC Part I: From Principles to Practice: A ComprehensiveIMC Case 124

Part TwoTHE PLANNING: ANALYZING THE ADVER-TISING ENVIRONMENT 1345 Advertising and Consumer Behavior 1366 Market Segmentation, Positioning, and the

Value Proposition 1787 Advertising Research 2088 The Advertising Plan 2389 Advertising Planning: An Inte national

Perspective 264IMC Part II: From Principles to Practice: A ComprehensiveIMC Case 292

Part ThreePREPARING THE MESSAGE 30210 Creativity and Advertising 30411 Message Strategy:Objectives and Methods 32812 Copywriting 35413 Art Direction and Production 386IMC Part III: From Principles to Practice: A ComprehensiveIMC Case 426

Part FourPLACING THE MESSAGE 43414 Media Planning, Objectives, and Strategy 43615 Media Evaluation: Print, Television, and

Radio 46816 Support Media, P-O-P Advertising, and

Event Sponsorship 50417 Advertising on the Internet 53018 SalesPromotion 56619 Direct Marketing 59220 Public Relations and Corporate Advertising 618IMC Part IV: From Principles to Practice: A ComprehensiveIMC Case 640

Appendix: Web Site Addresses 649Glossary 655Name/Brand/Company Index 669Subject Index 677Credits 689

v

Preface xx

Acknowledgments xxxv

PART ONEThe Process: Advertising in Business and Society

I Advertising as a Process 2What Is Advertising? 6Advertising, Advertisements, and Advertising Campaigns Y

Advertising as a Communication Process I 1A Model of Mass-Mediated Communication 11The Audiences for Advertising 13

Audicllcc Caf(:~ories • Audiellce Cc(~~raphyGlobal Issues:Motorola's Global Campaign Takes Flight 16

Advertising as a Business Process 17The Role of Advertising in Marketing 17

Advcvtisillg~I' Rolc ill Dcs(~lIillg thc jVlarketill,~ lvli,Y • Ad!Jertisillg'" Rolc ill Acllie!Jillg klarketS(:~II/elltatioll, Prodllrt Dil1i'Vcntiatioll, and Positiollillg

New Media: The Internet Is Big-But Not as Big as Seinfeld 20Ad!Jcrtisin,~'" Rolc ill COlltriblltill,~ to RC!JCl1tICalld Profit Ccneratioll • Advcvtisillg:, R.ole illCreating Customcv Satis{artioll

Types of Advertising 24The Economic Effects of Advertising 27

Advcrtising:, Efli'rt 011 Cross DOII/cstic Prod/trt • Advcvtisillg :,.Efli'({ 011 BliSillcss Cycles·Advcvtisillg'I' c~tF,rt Oil COII/petitioll • Advcrtising:, EfF,rt 011 Prices • Adllcvtisin,~:, Efli'(f 011 1<71l1e

vi

Contents vii

Advertising and Integrated Marketing Communications 32IMC:Taking It in the Shorts 33

Summary 33Key Terms 34Questions for Review and Critical Thinking 34Experiential Exercises 35Using the Internet 35

2 The Structure of the Advertising Industry: Advertisers,Advertising Agencies, and Support Organizations 36An Industry in Transition 39

The Scope of the Advertising Industry 40

The Structure of the Advertising Industry 41Advertisers 42

Manufacturers and Service Pirms • Resellers • Government and Social ()~r;anizationsGlobal Issues: Nestle Takes IMC Global 44Advertising Agencies 45

Full-Service Agencies· Creative Boutiques· A1edia-Bliying Services· Iliferactive Agencies·In-House Agencies

Agency Services 48Account Services· l\Jfarketing Services· Creative and Production Serviccs • A1edia-Planningand -Buying Services· Administrative Serviccs

Agency Compensation, Promotion, and Redesign 51Agency Compensation Plans· Agency Self-Promotion· Agency Redes\i,Z11

IMC:I Want my IMC-Sort of 55External Facilitators 56

Markcting and Advertising Rcsearch Firms· Consultants· Production Fadlitators •Inj(JYmation Intcrmediators • Other Communications OlganizatiOlls

New Media: RadioTVNet? 58Media Organizations 58

Summary 61Key Terms 61Questions for Review and Critical Thinking 62Experiential Exercises 62Using the Internet 63

3 The Evolution of Advertising 64Fundamental Influences 66The Rise of Capitalism 67The Industrial Revolution 67Manufacturers' Pursuit of Power in the Channel of Distribution 6~New Media: No Push in the Push-Yet 68The Rise of Modern Mass Media 69

Advertising in Practice 69The l'reindustrialization Era (pre-1800) 69The Era ofIndustrialization (1800 to 1875) 70The 1'.T. Barnum Era (1875 to 1918) 70The 1920s (1918 to 1929) 72The Depression (1929 to 1941) 76

VIII Contents

WWII and the Fifties (1941 to 19(0) 7HIMC: Not Snake Oil-But Still Pretty Slick (for the Most Part) 81Peace, Love, and the Creative Revolution (1960 to 1972) H3The 1970s (1973 to 19HO) H4The Republican Era (19HO to 1992) H6The Second Nineties (1993-present) 87

The Interactive A1edia Revolution· ReilllJentillg the Advertisillg Proress

The Value of an Evolutionary Perspective 91Global Issues:East Meets West for PR Lessons 92

Summary 93Key Terms 93Questions for Review and Critical Thinking 94Experiential Exercises 94Using the Internet 95

4 Social, Ethical, and Regulatory Aspects of Advertising 96The Social Aspects of Advertising 98Advertising Educates Consumers 99

Pro: Advertising Illforms • COli: Advertisin,!.! Is SuperffrialIMC:Tackling Alcohol Abuse through Integrated Marketing Communications 100Advertising Improves the Standard of Living ]()O

Pro: Advertisillg Lowers the Cost of Products· COil: Ad/Jertisillg vV<lstes Resources alld OlllyRaises tile Stalldard of Livillg.!tJr SOllie

Advertising Affects Happiness and General Well-Being ]() 1COli: AdlJertising Creates Needs· Pro: Advertisillg Addresses a V1niety of Needs· elll:Advertisillg PromoTes J\1aterialism • Pro: Aduertisill,!.! Reflects Soricry~, Priorities

Advertising: Demeaning and Deceitful, or Liberating and Artful? 103COIl: Aduertising Perpetuates StereoTypes· Pro: Aduertisers Are ShOIl'iIlX !\:Iurh Afore SClisititlity •('.011: Advertisin,!.! Is 0fiell 0.!TellSitJe • Pro: AdlJertisillg Is a Souy«' ofhtlfilllllClit alld Lilwratioll •Con: Advertisers DcceilJe IJia Sublilllillal Stimulatioll • Pro: Ad/l(Ttisillg Is Art

Advertising Has a PowerfiJ! Effect on the Mass Media 107Pro: Advertising Fosters a DilJerse awl Aflimlable Niass ;\;Iedia • COil: AdIIITtisill,!.! /lfl£'ctsProgram m illg

The Ethical Aspects of Advertising 108Truth in Advertising 109Advertising to Children 109Advertising Controversial Products 110

The Regulatory Aspects of Advertising I 10Areas of Advertising Regulation 111

Dereptio/l and Unfairness· Competitiue Issues· AdlJertisillX Aillled at ChildrellRegulatory Agents 113

G01Jernmellt Rl:!.!ulation • 'I17e FTC's Legislatiue j\;]andatesGlobal Issues:Sino Snake Oil-AdvertiSing EthiCSNow Enforced In Mainland China I 14

The FTC~, Rc,!.!ulatory Programs alld RemediesIndustry Self-Regulation 117New Media: More Quacks than Ducks Unlimited I 17

The l\!ational Aduertisillg Review Board· State alld Local Better Business Hllreaus •Ad1Jfrtising Agcnries and Assoriations • A1edia ()~l!anizaTiolls

Consumers as Regulatory Agents 120Consumer O~!.!allizations

Contents IX

Summary 121Key Terms 122Questions for Review and Critical Thinking 122Experiential Exercises 123Using the Internet 123

IMC PART I From Principles to Practice: A ComprehensiveIMC Case 124

Background and Participants 124

What Is IMC? 124

Factors Contributing to IMe's Rising Prominence 125

Sounds Great ... So What's So Hard about IMC? 126

An Agency in Pursuit of Integrated Marketing Communication 128Northlieh Stolley La Warre 128

A Client in Pursuit of Integrated Marketing Communication 131Cincinnati Bell Inc. 131

IMC Exercises 132

PARTTWOThe Planning: Analyzing the Advertising Environment 134

5 Advertising and Consumer Behavior 136

Perspective One: The Consumer as Decision Maker 140The Consumer I )ecision-Making Process 140

lYeed Recogllitiol1 • IIl/<Jr/llatic)fl Search and Alternative Evaluatiol1 • Purchase· Postpurclli1seUsc ami Evaluatioll

Four Modes of Consumer Decision Making 145Sources of Il1voll'emwt

Key Psychological Processes 1SONew Media: Cyberspace for Rent: Brand Builders Look to the Internet 150

Multi-Amilmte Attitude Alodels (}\IIAAN!s) • li!feJr/natioll Processill,1! alld Perceptual De/<'nse •Shapillg Attitudes lJia a Peripheral Route

Perspective Two: The Consumer as Social Being 156Advertising in a Sociocultural Consumption Context 157

Cltlture • Vcdues • Rituals· Society· Social Class· Family· Rete'rellce Croups· Race alldEthllicity • Cwder • Comlilltllity

IMC: Coming Together, , , over Saturn 170

Ob;eet Aleallill,1!Advertising as Social Text 172

Ads Hallsmit Sociocultural iVleanillg

Summary 175Key Terms 176Questions for Review and Critical Thinking 176Experiential Exercises 177Using the Internet 177

x Contents

6 Market Segmentation, Positioning, and the ValueProposition I78STP Marketing and the Evolution of Marketing Strategies 181Beyond STP Marketing 184

Identifying Target Segments 184New Media: Truth Is,Gen X Is Still Out There, if You Know Where and How to Look /85Usage Patterns and Commitment Levels 185Demographic Segmentation 186Geographic Segmentation 188Psychographics and Lifestyle Segmentation 189Benefit Segmentation 191Segmenting 13usiness-to-Business Markets 192

Prioritizing Target Segments 193Global Issues: Value Segmentation Reaches Global Proportions 194

Formulating the Positioning Strategy 196Essentials for Effective Positioning Strategies 196Fundamental Positioning Themes 198Repositioning 202

Capturing Your Strategy in a Value Proposition 203fMC: For Gateway: fMC, Yes; 2000 and Cows, No 204

Summary 205Key Terms 206Questions for Review and Critical Thinking 206Experiential Exercises 207Using the Internet 207

7 Advertising Research 208The Role of Research 21 IAccount Planning versus Advertising Research 211

Developmental Advertising Research 212Idea Generation 212Global Issues: Japan's Marketing Bellwether? The Teenage Girl 213Environmental Analysis 213Audience Definition 213A,udience Profiling 215Methods and Procedures Used in Developmental Research 215New Media: Far from an Exact Science: Internet Audience Tracking 216The Experiences of the Consumer 217

Fundamental Issues in Message Evaluation 218Motives and Expectations 218Dimensions for Message Assessment 21H

Impart KnoUJlec{([e• Shape Attitudes· Attach Feelinj!,s and Emotions· Ll;([itimize the Brand

Pretest Message Research 220Communications Tests 220Magazine Dummies 220Theater Tests 221Thought Listings 221Attitude-Change Studies 221Physiological Measures 222

Contents XI

Commercial Pretest Services 222Experimentation in the Marketplace-Pilot Testing 223

Posttest Message Tracking 225Recall Testing 225Recognition Testing 226Awareness and Attitude Tracking 227Behavior-Based Evaluation 227IMC: Stalking the Holy Grail: Research Companies JOin Forces to Track Synergies Promised

by IMe 229Commercial Posttest Services 22lJA Final Thought on Message Testing 22lJ

Secondary Data 230Secondary Data Sources 230

Illterilal COlllpallY Sourees • COlleril/nellt Sourres • COllllllereial Sourres • Pr<!f;'ssiollalPllbliratiOl/s

Limitations of Secondary Data 232

Summary 235Key TenllS 235Questions for Review and Critical Thinking 236Experiential Exercises 236Using the Internet 237

8 The Advertising Plan 238

The Advertising Plan and Its Marketing Context 244[ntroduction 245Situation Analysis 245

Historical COlltext • Illdustry Allalysis • iVIarket Allalysis • Competitor AllalysisNew Media: Reaching Generations Y and Z 249Objectives 249

Commlmicatior/s versus Sales Ohjcrtilles • Clwrarteristirs of rilorkah/e AdiJertisillg Ohjertilles •H11I~\?etillg

Global Issues IBM Combs the Globe for E-Business 253Pereellta,\?e of Sales· Share of iVIarket /Share of Vilire • Respollse Allodcls • Ohjcrtive alld Task·Implelllc//ting the ObjertiJle-alld-'I'lsk Hud,\?etillg J\I/ethod

Strategy 25~IMC: Daewoo Woos You 259Execution 259

Copy Strat(\?y • j\!ledia Plall • IlItr;\?rated J\llarketil/g ComlllimiratiollsEvaluation 260

The Role of the Advertising Agency in Advertising Planning 260

Summary 261Key Terms 262Questions for Review and Critical Thinking 2(l2Experiential Exercises 262Using the Internet 263

9 Advertising Planning: An International Perspective 264

The Pepsi Challenge in Brazil: Confronting a Global Brand 267

Overcoming Cultural Barriers 269Global Issues So Who Was It that Invented Salsa? 269

XII Contents

Barriers to Successfill International Advertising 270Cross-Cultural Audience Research 271

J]collornic ConditionsIMC: Cyberpoints for Site Visits 273

Di'lno/<!raphic Characteristics· Values· Custom and Ritual· Product Use and PrcjiTcnces

The Challenges in Executing Advertising Worldwide 276The Creative Challenge 276The Media Challenge 279

l'vledia Auailability and Coucrage • A1cdia Costs and PricingThe Regulatory Challenge 2tJ2

10 Creativity and Advertising 304

Advertising Agencies around the World 282The Global Agency 2tJ2New Media: News Flash:World Wide Web not Worldwide 284The International Affiliate 2tJ4The Local Agency 2tJ5

Globalized versus Localized Campaigns 285

Summary 289Key Terms 289Questions for Review and Critical Thinking 290Experiential Exercises 290Using the Internet 291

IMC PART II From Principles to Practice: A ComprehensiveIMC Case 292

A Model for Planning Integrated Marketing Communications 293

Assessing CBW's Situation Prior to Launch 294Historical Context 294Industry Analysis 294Local Competition 295Market Analysis 297

Pinpointing the Target Segment for Launch 297

Launch Strategy and the CBW Value Proposition 299

Objectives and Budget 300

The Mix of Persuasion Tools 300

IMC Exercises 30!

PART THREEPreparing the Message 302

Creativity, Science, and Magic 307IMC: The Client and the Agency Agree! Really! 308

Creativity across Domains 308Recognizing Creativity 3!3

Contents XIII

Call Olle Become Creative?Creativity in the Business World 313New Media: Creativity on the Internet--The More Things Change, the More They Stay

the Same 314

Advertising Agencies, the Creative Process, and the Product 3 I5Oil and Water 31 SGlobal Issues: How Important Is Brand Identity? It Means the World to Compaq 3 19Art and Science 321Why Does Advertising Need Creativity? 323

Summary 325Key Terms 326Questions fClrReview and Critical Thinking 326Experiential Exercises 327Using the Internet 327

II Message Strategy: Objectives and Methods 328Message Strategy 331Objective: Promote Brand Recall 331

Alethod: Repetitio/1 • Alethod: SloXalls il/ld Jil(l;lesObjective: Link a Key Attribute to the Brand Name 333

Aletlwd: USl'Objective: Instill Brand Prderence 333

l\l1etlwd: Feel-Good Ads· i\!Iethod: Humor AdsIMC: Panasonlc Takes the Integration Plunge 335Global Issues: Here's the Key to Global Success: TWIst,Lick, and Dunk 337

i\!Iethod: Sex AppealObjective: Scare the Consumer into Action 339

Alethod: Fear-Appeal AdsObjective: Change Behavior by Inducing Anxiety 341

Method: Anxiety AdsObjective: Transform Consumption Experiences 342

Iviethod: 'nml.~!(mnational AdsObjective: Situate the Brand Socially 343

Method: Slice-(!!~Lire Ads· Alethod: q\!ht FalltasyObjective: Define the Brand Image 344

Method: Ima,\!e AdsObjective: Persuade the Consumer 344

l'vletlwd: R('(1sOIl- Why· j\l1ethod: Hard-Sell· Aletlwd: Comparisoll Ads· i'vIethod: IIl!,Jflnatioll-Gilly Ads· i'vIethod: Ti'stimonial Ads

New Media: Consumers Fight Back-More Information Means Less Attention 348AletllOd: Demo/1stratioll • Alethod: Advertorial· i\!Iethod: In{tJll1err/als

Objective: Invoke a Direct Kesponse 350Method: Call or Click Now

Summary 351Key Terms 351Questions for Review and Critical Thinking 352Experiential Exercises 352Using the Internet 353

12 Copywriting 354Global Issues: You Know that KISSThing-It Works for Global Ads, Too 358

XIV Contents

Copywriting and the Creative Plan 359

Copywriting for Print Advertising 361The Headline 362

Pllrposcs of a Hcadlinc • Gllidclillcs.!')r Writillg HcadlillcsThe Subhead 366The Body Copy 366

CllidcliIlCS.!'JY /lVritillg Body Copy

Copywriting for Cyberspace 368New Media: Writing Cybercopy: Don't Abandon All the Old Rules 369

Copywriting for Broadcast Advertising 369Writing Copy for Radio 371Radio Advertising Formats 371

Dialogllc • AlIIlOlllICCIllCllt • Cc/chrity AlIlIOlil/ccrGuidelines f()f Writing Radio Copy 372The Itadio Production Process 373Writing Copy for Television 377Television Advertising Formats 377

DC11lollstratioll • Prohlc11l alld SOliftioll • AJllsic alld SOllg • Spokcspersoll • Dialogllc •VI:!(IICttC • NarratiFc

Guidelines f()r Writing Television Copy 3H()

Slogans 380

Common Mistakes in Copywriting 381

The Copy Approval Process 382IMC: If Microsoft Is DOing It, It Must Be Right 382

Summary 3H4Key Terms 3H4Questions for Iteview and Critical Thinking 3H5Experiential Exercises 3H5Using the Internet 3H5

13 Art Direction and Production 386Illustration, Design, and Layout 388Illustration 3HH

1Ifllstratioll Pllrposcs • 1Ifllstratioll COlliPOllclltsGlobal Issues:One of the Best Goes Global with Pnnt 392

I11llstYdtioll For11lats • nlc Stratl:!(ic alld CrcatiFc IlIIpact (!f I11llstratiollI ksign 394

l)rillciplcs of DCS(!(IINew Media: Web Ads Flunk DeSign Test 395Layout 399

ThllllllJllails • ROllgh Layollt • COlllprchclIsiFC • j\;]cchallicals

Production in Print Advertising 40 IThe Print Production Schedule 4()1Print Production Processes 4()1

Complltcr I)rint ProdllctiollTypography in Print Production 4()3

Cat(;!(orics o{'Fypc • 'lj!pc j\;]casllrC1ncllt • Rcadahility

Art Direction and Production in Cyberspace 404

Art Direction and Production in Television Advertising 406

Contents xv

Art Direction in Television Advertising 406The Creative Team in Television Advertising 407Creative Guidelines for Television Advertising 407The Production Process in Television Advertising 412IMC: Even $44 Billion Doesn't Impress Consumers 412

Preproduction· Production· PostproductionProduction Options in Television Advertising 422

Summary 423Key Terms 424Questions for Review and Critical Thinking 424Experiential Exercises 425Using the Internet 425

IMC PART III From Principles to Practice: A ComprehensiveIMC Case 426

Making Beautiful MusicTogether: Coordination, Collaboration, and Creativity 426What We Know about Teams 427

Teams Rule! • It's All about Performance· Synergy through JeanlS • '[he Demise ofIndividualism? • Teams Promote Personal Growth

Leadership in Teams 428

Teams as the Engine for Coordination, Collaboration, and Creativity in the Launchof Cincinnati Bell Wireless 429The NSL Account Team 429Teams Moderate Tension in the Copy Approval Process 430Teams Liberate Decision Making 430More About Teams and Creativity 431To Ensure the Uniform Look, Turn to Teams 432

IMC Exercises 433

PART FOURPlacing the Message 434

14 Media Planning, Objectives, and Strategy 436

An Overview of the Major Media 438

The Media-Planning Process 441Media Objectives 441Media Strategies 447

Reach and FrequencyfMC:Taking No Chances-Ads That Go Off- and Online 449

ContinuityGlobal Issues:Reaching the Latin American Consumer: Advertisers Plug in to Cable 450

Lel1;"?thor Size (1AdvertisementsMedia Choices 452

}'v1ediaMix· Media Efficiency· Competitive Media AssessmentMedia Scheduling and Buying 456

Computer Media-Planning Models 457

Other Ongoing Challenges in the Media Environment 458

XVI Contents

The Proliferation of Media Options 45RInsufficient and Inaccurate Information 460Escalating Media Costs 461New Media: A Really Sticky Situation 462Interactive Media 462Media Choice and Integrated Marketing CommunicatiolJS 463

Summary 464Key Terms 465Questions for Review and Critical Thinking 465Experiential Exercises 466Using the Internet 467

15 Media Evaluation: Print, Television, and Radio 468

The Importance and Processof Media Evaluation 471

Print Media Evaluation 471Newspapers as an Advertising Medium 472

AdlJalltages (!f r-"'ew.lpapcrs • DI'sadva11t{~r;eSof l\TeUispapers • Types of Nelllspapers • Cat(:l.;ories ofI\Tc'LI'spaperAdvertisillg • Costs alld Buying Procedures flY I\fel/lspaper Adllertisillg • Aleo.'IIrillgNewlpaper Audiellces • The Puture (!f NelVspapers

Magazines as an Advertising Medium 4ROAdlJalltages of iVlagozillcs • DisadlJalltages of Ma,l.;azillcs • '[l'pes of iH,\r;azilles

Global Issues:Cosmo: To Russiawith Love 484Costs alld Buyillg Proccdures for 11:1agazillc Advertising· Aleasurillg Alagazillc Al/di('l/(cS •Thc Fut/lrc (!f iVlagazillcs

New Media: Dlgizlnes: Don't Look for One While You Wait for the Dentist 488Television and R.adio Media Evaluation 4R9Television as an Advertising Medium 4R9

li-!evisioll Catc;r;orics • Advantages 4 '/i-!cvisioll • DisiuIFallta,r;es (!f '/Ucllisioll • AI/easurill,1.;TNevision AudiC11ces • The Future of IUevision

R.adio as an Advertising Medium 496Global Issues:Couch Potatoes Take to the Road in Japan 496

Radio CatC;l.;ories• Types of Radio AdlJcrtisill,1.; • AdFantagcs of Radio· Disadl'iJIlto,r;cs of RadioIMC: Radio Plays Key Role in IMe Campaign for Cadillac Seville 499

Bl/yill,1.; Proccdurcs jilY Radio Advertisin,r; • iVleasurill,r; Radio Audiellces

16 Support Media, P-O-P Advertising, and Event Sponsorship 504

Summary 501Key Terms 502Questions for Review and Critical Thinking 502Experiential Exercises 503Using the Internet 503

Traditional Support Media 507Outdoor Signage and Billboard Advertising 507Transit and Aerial Advertising 511Specialty Advertising 514J )irectory Advertising 515When Support Media Are More Than Support Media 517

Point-of-Purchase (P-O-P) Advertising 518

Event Sponsorship 5 I 9Who Else Uses Event Sponsorship? 521

Contents xvii

New Media: P-O-P Goes I-N-T-E-R-A-C-T-I-V-E 521The Appeal of Event Sponsorship 522Global Issues: Event Sponsorship Hits China 523Seeking a Synerb'Y around Event Sponsorship 524IMC: Sports Sponsors Look to Virtual Reality 525

The Coordination Challenge 525

Summary 527Key Terms 527Questions for Review and Critical Thinking 52?)Experiential Exercises 52?)Using the Internet 529

17 Advertising on the Internet 530An Overview of Cyberspace 532The Basic Parts 532Internet Media 535

Advertising tlmnl};h C!ectronic lVlail and NewsgroupsGlobal Issues: Affluent Europeans Are Going Online 537Surfing the World Wide Web 53?)

Hierarchical Search Hngines • Collection Search Engines· Concept Search Engines· RohotSearch Engines· Other Ways to Find Sites· Portals

Advertising and Marketing on the Internet 542Who Advertises on the Internet? 544Types of Web Advertising 544

Corporate Home Pages· Hanner Ads

Establishing a Site on the World Wide Web 549Getting Surfers to Come Back 549Purchasing Keywords on Search Engines 552Promoting Web Sites 552

Integration with Other l\JIediaMeasurement and Security Issues 554IMC: It's the Internet, It's a MagaZine, It's a TV Broadcast- -No, It's All Threel 554New Media: Using the Net to Research Audiences 556

Thill/ical Aspects or the Aleasurement Problern • The Caching Comp!icatiMl • Payment·Security and Priuacy

E-Commerce: Buying on the Web 559Other Types of C:ybermarketing 559

VirwallVlalls • Coupons· Event Alarketing • Sales SupportManaging and the E-Colllmunity 561

Sumlllary 562Key Terms 563Questions for Review and Critical Thinking 564Experiential Exercises 564Using the Internet 565

18 Sales Promotion 566Basic Forms of Sales Promotion 569

The Importance and Growth of Sales Promotion 569The Importance of Sales Promotion 570

xViii Contents

Growth in the Use of Sales Promotion 570Demand for Greater Accountability· Short- Term Orientation· Consumer Response toPromotions· Proliferation of Brands· Increased Power of Retailers· }\Iledia Clutter

Sales Promotion Directed at Consumers 573Objectives for Consumer-Market Sales Promotion 573New Media: A Screaming Deal-Literally 574Consumer-Market Sales Promotion Techniques 575

CouponsIMe Major Marketer Saving on Coupons 576

Price-Off Deals· Premiums· Contests and Sweepstakes· Sampling and Trial OtTers·Brand (Product) Placement· Rebates· Frequency Programs· Event Sponsorship

Sales Promotion Directed at the Trade 582Objectives for Trade Promotions 582Global Issues:Polaroid Sheds New Light on the Spice Girls 583Trade-Market Sales Promotion Techniques 583

Point-of-Purchase Di,plays • Allowances· Trade Shows· Sales-Training Programs·Cooperative Advertising

The Risks of Sales PromotionCreating a Price OrientationBorrowing from Future SalesAlienating Customers 586Time and Expense 586Legal Considerations 586

585585585

The Coordination Challenge-IMC and Sales Promotion 586Message Coordination 586Media Coordination 587Conclusions from Recent Research 588

Summary 588Key Terms 589Questions for Review and Critical Thinking 589Experiential Exercises 590Using the Internet 591

19 Direct Marketing 592The Evolution of Direct Marketing 594Direct Marketing-A Look Back 595Direct Marketing Today 597What's Driving the Growing Popularity of Direct Marketing? 600New Media: Direct Marketers Embrace the Internet 600

Database Marketing 602Mailing Lists 603List Enhancement 603The Marketing Database 604Marketing Database Applications 605Global Issues:Loyalty Programs Know No Boundaries 607The Privacy Concern 607

Media Applications in Direct Marketing 608Direct Mail 608Telemarketing 610E-Mail 610IMe Nike Marketers Decide to Do E-Mail 61 I

Contents XIX

Direct Response Advertising in Other Media 611Infomercials 612

The Coordination Challenge Revisited 614

Summary 615Key Tcrms ()15Qucstions for Rcview and Critical Thinking 616Experiential Exercises 616UsingthcInternet 617

20 Public Relations and Corporate Advertising 618Public Relations 621Objectives of Public l~elations 623Tools of Public Relations 625

Press Releases' Feature Stories' COlllpauy l'!ewsletters • [llfenJiews aud Press Cou!1'reuces •Spousored LIJellfs • I'uhlicity

IMe: Event Sponsorship Acid Test 62813asic I'u blic Relations Strategies 621\

I'roactilJe I'lIhlic Relatious Stmt(;IZYGlobal Issues: Benetton Fouls Out 629

Reactille ])lIhlic Relatious Stmt(:IZY

Corporate Advertising 63 IThe Scope and Objectivcs of Corporatc Advertising (l31Types of Corporate Advertising 632

Corporate lula,lZe AdllertisiugNew Media Turning Green at the Cybermall 634

Advocacy Advertisiug • Cause-Related Adllertisiug

Summary (>.)7Key Terms 637Qucstions for l~cview and Critical Thinking 631\Expcriential Exercises 631\Using the Internet 63<)

IMC PART IV Cincinnati Bell: From Principles to Practice: AComprehensive IMC Case 640An Overview of the CBW Launch Campaign 640Public Relations MOTelevision 641Print, Radio, and Outdoor 641I'romotiollS and Events 643I)irect Marketing 6441'-0-1' Advertising, Collateral, and Sales Support 646

Gauging the Impact of the CBW Launch Campaign 646

IMe: Exercises 647

Appendix: Web Sitc Addresses 64<)Glossary 655Name/Brand/Company Indcx 66<)Subject Index 677Credits 61\<)