Advergaming: Advertising in Video Games - Prof. Eloise B. Coupey, Study notes of Marketing Management

Download Advergaming: Advertising in Video Games - Prof. Eloise B. Coupey and more Study notes Marketing Management in PDF only on Docsity! Chapter 16 Advergaming – advertising in a video game Advertising: any paid form of non-personal communication about an organization, good, service, or idea by an identified sponsor. Three of the promotional mix elements: advertising, sales promotion, and public relations Types of advertisements: 2 types: 1. Product Advertisements: advertisements that focus on selling a good or service; forms include pioneering (informational), competitive (persuasive), and reminder. Used in the introductory stage of the PLC – pioneering stage, growth stage for competitive stage, and mature phase for reminder 2. Institutional advertisements: advertisements designed to build goodwill or an image for an organization, rather than promote a specific good or service. Used to support the public relations plan or counter adverse publicity. Four alternative forms of institutional advertisements a. Advocacy advertisements state the position of a company on an issue or organizations make a request related to a particular action or behavior b. Pioneering institutional advertisements used for announcements about what a company is, what it can do, or where it is located. c. Competitive institutional advertisements promote the advantages of one product class over another and are used in markets where different product classes compete for the same buyers. d. Reminder institutional advertisements bring the company’s name to the attention of the target market. Developing the advertising program Can be managed by the following the three steps: Developing, Executing, and Evaluating the process. Identifying the targeting audience; to develop an effective advertising program that advertisers must identify the target audience, understand lifestyles, attitudes, and demographics of the target market are essential. Even the FCC suggests that advertising program decisions be based on market research about the target audience. Specifying advertising objectives; guidelines for setting promotion objectives, helps with other choices in the promotion decision process such as selecting media and evaluating a campaign. Setting the advertising budget; most advertisements represent a substantial financial commitment and require a formal budgeting process. Designing the advertisement: usually focuses on the key benefits of the product that are important to a prospective buyer in marking trail and adoption decisions. 1. Message appeal: Informational and persuasional elements that can be combined in the form of an appeal to get the consumer to act. Include the following common appeals: a. Fear appeals: the consumer can avoid some negative experience through the purchase and use of a product/service b. Sex appeal: suggest to the audience that the product will increase the attractiveness of the user. c. Humorous appeal: either directly or subtly that the product is more fun or exciting than competitors’ offers <- subservient chicken, Geico 2. Creating the actual message: copywriters are responsible for creating the text portion of the messages in advertisements. The transformation is a complex process. Go to exotic locations, high costs, actors earn $12K to $15K per commercial. Selecting the Right Media: Advertiser must select the advertising media in which to place its ads: newspapers, magazines, radio, and TV. Related to target audience, type of product, nature of the message, campaign objectives, available budget, and costs of the alternative media. Two conflicting goals of 1. Maximizing exposure and 2. Minimizing costs are of central importance to media planning Maximize the number of individuals: Reach the number of different people or households exposed to an advertisement (TV and radio call it rating) goal is to try to maximize reach at the lowest cost. Exposure to the target audience more than once called frequency the average number of times a person in the target audience is exposed to a message or advertisement. Gross rating points (GRPs) = reach x frequency Cost per thousand (CPM) – the cost of reaching 1,000 individuals or households with the advertising message in a given medium Different Media Alternatives Television: communicates with sight, sound, and motion. Reaches 95% of the US homes, disadvantage is cost. Infomercials: program-length (30-minute) advertisements that take an educational approach to communication with potential customers. Radio: seven times as many radio stations as television stations in the US. Advantage: is a segmented medium. Disadvantage: limited use for products that must be seen, consumers can tune out a commercial by switching stations and now commercial free satellite radio stations Magazines: very specialized medium, more than 6,200 magazines. Advantage: great number of special- interest publications that appeal to narrowly defined segments. Disadvantage: cost of advertising in national magazines. Newspapers: local medium, local retailers and 24-hour sales. Coupons: sales promotions to encourage trail but redemption rate is typically 2% and costs more to distribute than what the consumer receives, and now there is coupon fraud. Deals: short-term price reductions, to increase trail among potential customers. Premiums: consists of either merchandise offered free or merchandise offered at a significant savings over its retail price. Self-liquidating: cost charged to the consumer covers the cost of the item. Encourages customers to return frequently or use more of the product. Contests: consumers apply their skill or analytical or creative thinking to try to win a prize. Sweepstakes: require participants to submit some kind of entry but are purely games of chance. Two versions: 1. Instant-win game 2. Offers and “experience” as the prize. Samples: offers the product free or at a greatly reduced price; usually from new products, smaller than the regular packaging size. Loyalty Programs: to encourage and reward repeat purchases by acknowledging each purchase made by a consumer and offering a premium as purchases accumulate. Point-of-purchase displays: sales promotion in a store aisle; displays take the form of advertising signs. To get purchase on impulse. Rebates: the cash rebate, offers the return of money based on proof of purchase. Product Placement: using a brand-name product in a movie, television show, video, or commercial for another product. Receivable Trade-oriented sales promotions Trade-oriented sales promotions: sales tools used to support a company’s advertising and personal selling efforts directed to wholesalers, distributors, or retailers. Three common approaches: 1. Merchandise allowance: reimbursing a retailer for extra in-store support or special featuring of the brand 2. Case allowance: a discount on each case ordered during a specific time period. 3. Finance allowance: paying retailers for financing costs or financial losses associated with consumer sales promotions. Cooperative advertising: advertising programs by which a manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturer’s products. Training of Distributor’s Salesforces: One of the functions of the intermediaries perform is customer contact and selling for the producers they represent. Manager’s ability of the reseller’s salesforce to represent its products. Training can increase their sales performance, including product manuals, brochures. Public Relations: Form of communications management that seeks to influence the image of an organization and its products and services. Publicity Tools: methods of obtaining non-personal presentation of an organization, good, or service without direct cost. Companies use 1. a news releases that consist of announcements regarding changes in the company or the product line and 2. News conference where representatives of the media are all invited to an informational meeting and advance materials regarding the content are sent. Nonprofit organizations rely heavily on public service announcement that are free space or time donated by the media.