UNIT 13 (Advertising)

Aim:
1. Analyse the different kinds of sales promotions
2. Discuss what makes a successful advertising campaign
Lead-in
1. To what extent do you think your purchases are influenced by advertising?
2. How many advertising messages do you think you see or hear on an average day?
3. How many times do you think you have to see an ad or a brand name before you
remember it?
4. When has advertising ever persuaded you to buy things you don't need, or even things
you don't want?
UNIT 13 (Advertising)
Reading: Advertising and viral marketing
Read the text below and on the next page and decide which paragraphs should be given
the following headings:
A Advertising spending and sales
B How companies advertise
C Word-of-mouth advertising and viral marketing
D Potential drawbacks of advertising
UNIT 13 (Advertising)
Reading: Advertising and viral marketing
Comprehension
Read the text again and answer these questions.
1 What are the two functions of advertising?
2 What is the role of advertising agencies?
3 What three different methods of determining advertising spending are mentioned?
4 What does the text describe as disadvantages of traditional advertising?
5 What ways of using the Internet to advertise are mentioned
UNIT 13 (Advertising)
Reading: Advertising and viral marketing
Voca.
1 companies that design advertising for clients
2 the advertising of a particular product or service during a particular period of time
3 the statement of objectives that a client works out with an advertising agency
4. a defined set of customers whose needs a company plans to satisfy
5. the amount of money a company plans to spend in developing its advertising and
buying media time or space
UNIT 13 (Advertising)
Voca.
6. the choice of where to advertise in order to reach the right people
7. choosing to spend the same amount on advertising as one's competitors
8. a small amount of a product given to customers to encourage them to try it
9. free advertising, when satisfied customers recommend products to their friends
1O trying to get consumers to forward an online marketing message to other people
UNIT 13 (Advertising)
Writing
MODEL ANSWER
Discussion: Advertising and promotions
This activity has the potential to lead to animated discussion. People tend to assume
that everyone else shares their reactions to advertising. For example:
Advertisements in the cinema Radio commercials
UNIT 13 (Advertising)
1. Advertising informs consumers about the existence and b-------------1 of products and
services, and attempts to p--------------2 them to buy them. Most companies use
advertising a--------------3 to produce their advertising for them They give the a------------- a
statement of the objectives of the advertising campaign, known as a b----------4, an overall
advertismg s------------------5 concerning the message to be communicated to the t-----------
---- 6 customers, and a budget. The agency creates advertisements (often abbreviated to
adverts or ads). and develops a media p------------7 specifying which media - newspapers.
magazines, the Internet, radio, television, cinema, posters, mail, etc. - will be used and in
which p---------------8. It is always difficult to know how much to spend on advertising.
Increased ad spending can increase s--------------9. but many companies just spend a fixed
p-----------10 - of current sales revenue, or simply spend as much as their c-------------11
(the comparative-parity method). On the other hand, lots of creative and e------------ 12
advertising campaigns, including television c------------------13 that lots of people see and
remember, and which win p-------------------14 awarded by the advertising industry for the
best ads, don't l-------------15 to increased sales.
UNIT 13 (Advertising)
Advertising is widely considered to be essential for l----------------1 new consumer products. Combmed with
sales p-------------------- 2 such as free samples, price reductions and --------------3, advertising may generate
the initial t-------------------4 of a new product. But traditional advertising is expensive, 1t doesn't always
reach the t------------------5 customers, and it isn't always welcome if it does r---------------6 them.
People might choose to look at posters in the street or on public transport (and virtual ones in computer
and video games), or look at the ads in n------------------7 and magazines, but many other ads interrupt them
when they're trying to do somethmg else, ilke read a web page, l!sten to the rad, or watch a 'IV programme
or a film
This is why the best form of advertismg has always been w---------------- 8 advertising: people telling their
friends about good products and services. For example, at the end of the last century, more and more
people were saying to their friends 'Have you used Google? It's great.' Today, word-of-mouth has developed
into ------------------9 marketing: companies succeed in getting people to spread commercial messages, like a
virus, via peer-to-peer (P2P) n--------------10 on the Internet.
The classic example is Hotmail, which added a little advertisement for itself at the bottom of every email
sent using a Hotmail address. In the mid-1990s, the number of users mcreased from 500,000 to 12 milllon
within a year. More and more companies are trymg new s------------------11 like setting up biogs or onlme f----
------------12, commenting on other people's biogs and social networking w--------------13, making podcasts,
and putting videos on YouTube, and hoping that people wlll use the 'Share' function to send a link to all their
c--------------14. Viral marketing allows companies to inform and persuade, and create a 'buzz', so that an
idea spreads very quickly, at very little c-------------1 c.
UNIT 13 (Advertising)
• 1. ------------: A promotional communication strategy used by companies to inform
consumers about their products or services, persuade them to make purchases, and
build brand awareness.
• 2.------------------: External firms or organizations hired by companies to create and
execute advertising campaigns.
• 3. -----------------: A statement of objectives for an advertising campaign, outlining the
intended goals, target audience, and key message.
• 4. --------------------: A comprehensive plan that defines how a company will communicate
its message to its target customers through advertising.
• 5. --------------: A plan that specifies the types of media (e.g., newspapers, magazines,
radio, TV, internet) and the proportions in which they will be used for advertising.
• keys
UNIT 13 (Advertising)
• 5. ----------------: The allocated financial resources for carrying out an advertising
campaign.
• 6. ------------------: A common approach in which companies set their advertising budgets
based on a fixed percentage of current sales or in line with their competitors' spending.
• 7. ------------------------: A form of marketing where individuals share recommendations
and experiences with friends and peers, contributing to product or service awareness
and credibility.
• 8. ------------------------: A modern marketing technique that leverages word-of-mouth
through online platforms to spread commercial messages rapidly, often through peer-to-
peer networks on the internet.
• 9. ---------------------------: The act of individuals sharing advertisements, content, or
product information with their contacts or social networks, contributing to the "viral"
spread of information and creating a buzz around a product or idea.
UNIT 13 (Advertising)
10. ------------------: Marketing activities and strategies designed to stimulate short-term
sales and increase product trial. Examples include discounts, free samples, contests, and
loyalty programs.
11. -----------------------: A specific group of individuals or consumers at which an advertising
campaign is aimed. It is defined based on demographic, psychographic, and behavioral
characteristics.
12. ----------------------------: The extent to which a brand is recognized by consumers and
associated with its products or services. It is a key metric in evaluating the effectiveness of
advertising.
14. ------------------------ (CTA): A specific instruction or directive in an advertisement that
prompts the viewer or reader to take a particular action, such as making a purchase,
signing up for a newsletter, or visiting a website.
15.---------------------- ROI : A measure of the effectiveness and profitability of advertising
campaigns, indicating the financial return generated in relation to the amount spent on
advertising. ROI is often used to assess the success of marketing efforts.
UNIT 13 (Advertising)
• Summary
• the role of ------------1 in informing and persuading consumers to --------------2 products and
services. Companies typically ---------3 advertising agencies to create campaigns, which-------------
-4 developing advertisements and a ------------5 plan. While increased ad spending can boost
sales, it is ---------------6 to determine the right amount to invest. Some companies ------------7 a
fixed percentage of sales revenue or -------------8 their competitors' spending. However, even
expensive and creative ad campaigns may not always lead to -------------9 sales.
• Advertising is ---------------10 for launching new consumer products, often combined with sales
promotions to encourage -------------11 trials. However, traditional advertising can be costly, may
not reach the--------------12 audience, and is sometimes -------------13 when it does.
• The most effective form of advertising has -------------14 been word-of-mouth, where satisfied
customers recommend products to others. This has -----------15 into viral marketing, where
companies ---------------16 the internet to spread messages quickly and at low cost. Examples
include Hotmail's rapid user growth through self-promotion in ----------17 and modern strategies
like blogs, social media, podcasts, and YouTube videos, which aim to create a “---------18" and
encourage sharing among users.
UNIT 13 (Advertising)
• 1. What is the primary purpose of advertising?
• a) To inform consumers about product prices
b) To inform and persuade consumers to buy products and services
c) To reduce production costs
d) To provide customer support
• 2. What do companies typically give to advertising agencies to guide their campaigns?
a) A list of products
b) A statement of campaign objectives
c) A media plan
d) A sales report
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• 3. What is a brief in the context of advertising?
a) A summary of a product’s features
b) A statement of the objectives of the advertising campaign
c) A budget estimate
d) A media schedule
• 4. What does a media plan specify?
a) The sales targets for the campaign
b) The media to be used and in which proportions
c) The design of the advertisements
d) The distribution channels for products
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• 5. What is one method companies use to determine their advertising budget?
a) Basing it on the previous year's profits
b) Spending a fixed percentage of current sales revenue
c) Estimating the number of customers
d) Matching the spending of their competitors
• 6. What is the comparative-parity method?
a) Spending as much on advertising as your competitors do
b) Comparing the effectiveness of different ads
c) Parity in product pricing
d) Matching customer preferences
UNIT 13 (Advertising)
• 7. What issue can arise with expensive and creative advertising campaigns?
a) They are too cheap
b) They may not lead to increased sales
c) They always increase sales
d) They are easy to create
• 8. Why is advertising considered essential when launching new consumer products?
a) It guarantees sales
b) It helps generate initial trials of the product
c) It reduces the cost of the product
d) It makes the product last longer
UNIT 13 (Advertising)
• 9. What challenge does traditional advertising often face?
a) It is too modern
b) It doesn’t reach the target customers
c) It’s too cheap
d) It always succeeds
• 10. What is word-of-mouth advertising?
a) Using celebrities to promote products
b) People telling their friends about good products and services
c) Posting ads on social media
d) Distributing flyers
UNIT 13 (Advertising)
• 11. What is viral marketing?
a) Traditional newspaper ads
b) Marketing messages spreading via peer-to-peer networks
c) Broadcasting ads on TV
d) Using radio ads for promotions
• 12. Which company is used as a classic example of successful viral marketing in the
text?
a) Google
b) Amazon
c) Hotmail
d) Facebook
UNIT 13 (Advertising)
• 13. What was the result of Hotmail’s viral marketing strategy in the mid-1990s?
a) Increased ad costs
b) A decrease in user numbers
c) Growth from 500,000 to 12 million users in a year
d) A new product launch
• 14. What strategy did Hotmail use to achieve viral growth?
a) Television ads
b) Adding a small advertisement to the bottom of every email
c) Newspaper ads
d) Sponsoring events
UNIT 13 (Advertising)
• 15. What modern strategies do companies use for viral marketing?
a) Printing flyers
b) Setting up blogs, social media posts, and videos on YouTube
c) Sending direct mail
d) Broadcasting radio ads
• 16. How do companies create a 'buzz' through viral marketing?
a) By running expensive TV ads
b) By spreading their message quickly at a low cost
c) By paying for online banners
d) By hosting large events
UNIT 13 (Advertising)
• 17. What is a key benefit of viral marketing mentioned in the text?
a) It is expensive to implement
b) It quickly spreads ideas at very little cost
c) It guarantees sales
d) It targets only older audiences
• 18. What challenge does traditional advertising face according to the text?
a) It is free to use
b) It is often unwelcome and doesn’t always reach the target audience
c) It always increases sales
d) It is always effective
UNIT 13 (Advertising)
• 19. What is the preferred method of advertising according to the text?
a) Television commercials
b) Word-of-mouth advertising
c) Internet banner ads
d) Newspaper inserts
• 20. How does viral marketing differ from traditional advertising?
a) It is more expensive
b) It relies on peer-to-peer networks and user sharing
c) It uses billboards
d) It requires celebrity endorsements
UNIT 13 (Advertising)
• Case Study: Advertising Strategies
• Background: XYZ Corporation, a mid-sized consumer electronics company, recently
launched a new line of smart home devices. To promote this product line, XYZ
Corporation hired an advertising agency to develop a comprehensive advertising
campaign. The company provided the agency with a detailed brief outlining the
objectives, target audience, and budget for the campaign.
• The advertising agency developed a multi-channel strategy that included traditional
media such as television commercials, magazine ads, and posters, as well as digital
platforms like social media, YouTube, and blog partnerships. Despite the creative and
high-cost nature of the campaign, the initial sales did not meet expectations. XYZ
Corporation is now evaluating the effectiveness of their advertising strategies and
exploring alternative approaches to increase product awareness and sales.
UNIT 13 (Advertising)
• Challenges Faced:
• Advertising Budget Allocation: XYZ Corporation allocated a significant portion of its
budget to traditional media, but it is unclear if this investment yielded a satisfactory
return on investment (ROI).
• Target Audience Reach: The campaign failed to effectively reach the intended target
audience, particularly younger, tech-savvy consumers who are more active on digital
platforms.
• Sales Impact: Despite the high visibility of the ads, the expected boost in sales did not
materialize. XYZ Corporation is concerned that traditional advertising methods may not
be as effective as they once were.
• Alternative Strategies: Considering the limited success of the campaign, XYZ
Corporation is now exploring viral marketing techniques, leveraging word-of-mouth and
social media to create buzz around the product.
UNIT 13 (Advertising)
• Question 1: What were the main objectives of XYZ Corporation's advertising campaign
for its new smart home devices?
• Question 2: Why did XYZ Corporation's initial advertising campaign fail to meet sales
expectations despite high visibility?
• Question 3: How could XYZ Corporation have better allocated its advertising budget to
improve campaign effectiveness?
• Question 4: What are the advantages of viral marketing over traditional advertising, as
observed in the case study?
• Question 5: If XYZ Corporation decides to pursue a viral marketing strategy, what steps
should they take to create an effective campaign?