Professional Documents
Culture Documents
L MM Chapter 18,15122010
L MM Chapter 18,15122010
Advertising
Sales Promotions
Persuasive
advertising Liking
Reminder Preference
Advertising
Conviction
Reinforcement
advertising Purchase
Deciding on the advertising
budget
Factors to Consider in Setting an Advertising Budget
Advertising frequency
Product substitutability
Developing the Advertising
Campaign
p Message Strategy: what ad attempts to convey
about the brand (what to say)
p Creative strategy: how the ad expresses the brand
claims (how to say)
Message Creative
Legal and
generation development
social issues
and evaluation and execution
Message generation and
evaluation
p Conducting market research to determine which
appeal works best with its target audience.
p Preparing a creative brief: an elaboration of
positioning statement and includes:
n Key message
n Target audience
n Communications objects (to do, to know, to believe),
n Key brand benefits
n Supports for the brand promise
n Media
FF
User-generated ads
A case of success A case of failure
Creative development and
execution
p The ad’s impact depends not only on what it
says, but often more important, how it says it.
p Execution can be decisive.
p Every advertising medium has advantages
and disadvantages:
n TV commercials
n Print-ads
n Radio commercials
Television
p Advantages p Disadvantages
n Reaches broad spectrum n Brief
of consumers n Clutter
n Low cost per exposure n High cost of production
n Ability to demonstrate n High cost of placement
product use n Lack of attention by
n Ability to portray image viewers
and brand personality
FF
Successful TV commercials
Picture
Headline
Copy
Signature
FF
Print Ad Evaluation Criteria
p Is the message clear at a glance?
p Is the benefit in the headline?
p Does the illustration support the headline?
p Does the first line of the copy support or
explain the headline and illustration?
p Is the ad easy to read and follow?
p Is the product easily identified?
p Is the brand or sponsor clearly identified?
FF
Successful Print ads
Radio Ads
p Advantages p Disadvantages
n Stations are very n Lack of visual images
targeted n Relatively passive
n Relatively inexpensive nature of the consumer
to produce and place processing that results.
n Allowing for quick
response
Legal and social issues
Section 2
DECIDING ON MEDIA AND
MEASURING EFFECTIVENESS
Deciding On Media And Measuring
Effectiveness
Deciding on desired reach, frequency and impact
p Newspapers p Outdoor
p Television p Yellow Pages
p Direct mail p Newsletters
p Radio p Brochures
p Magazines p Telephone
p Internet
Choosing Among Major Media
Types - variables
p Target audience and media habits
p Product characteristics
p Message characteristics
p Cost
FF
Table 18.2 Marketing Communication Expenditures
(2007)
Media $ % of Total
TV 72.1 32
Radio 20.9 9
Internet 16.7 8
Magazines 23.7 11
Newspaper 45.8 20
Alternative advertising Options
p Place advertising
p Product placement
p Point-of-purchase
p Evaluating alternative media
Place Advertising – Billboards &
Public spaces
Billboards Public spaces
FF
Place Advertising – Product
placement & advertorials
Product Placement Advertorials
FF
Space advertising -Point-of-
purchase advertising
Evaluating alternative media
p The challenge with nontraditional media is
demonstrating its reach and effectiveness
through credible, independent research.
n Unique ad placements designed to break through
clutter may also be perceived as invasive and
obtrusive.
n Consumer backlash often results when ads are
placed in traditionally ad-free spaces such as in
schools, police cruisers, doctors’ waiting rooms.
Virtual Worlds as a Media Vehicle
Selecting specific Media vehicles
Measures of Audience Size
p Circulation
p Audience
p Effective audience
p Effective ad-exposed
audience
FF
Selecting specific Media vehicles
Measures of Audience Size
Adjustments of media planners
p Computing cost per thousands (CPM) for each
vehicle to select the cost-effective one.
p Adjustments to be made based on:
n Audience quality (baby lotion ads on women
magazines and on teenagers’ ones)
n Audience attention probability (ads on Vogue and on
Newsweek)
n Magazine’s editorial quality (new drug ads on normal
and medical magazines)
n Magazine’s ad placement policies and extra services.
Deciding on media timing and
Allocation-Macroscheduling
p Macroscheduling problem involves scheduling
the advertising in relationship to seasons and
the business cycle.
n Suppose 70% of a product sales occur between
June and September.
p The firm can vary its advertising expenditures
to follow the seasonal pattern, to oppose the
seasonal pattern, or to be constant throughout
the year.
Deciding on media timing and
Allocation-Microscheduling
Figure 18.3 Classification of Advertising Timing Patterns
Buyer
turnover
Purchase
frequency
forgetting
rate
Factors Affecting Timing Patterns
p Buyer turnover
p Purchase frequency
p Forgetting rate
FF
Deciding on media timing and
Allocation – space allocation
p “National buys”
p “Spots buys”
p “Local buys”
FF
Media Schedule Patterns on a
new product launch
p Continuity
p Concentration
p Flighting
p Pulsing
Evaluating Advertising Effectiveness
– Communication-effect research
p To determine whether an ad is
communicating effectively.
p To perform this test both before an ad is put
into media and after it is printed or
broadcast.
p Three major methods of pretesting:
n Consumer feedback method
n Portfolio tests
n Laboratory tests
Evaluating Advertising Effectiveness
– Sales-effect research
Figure 18.4 Formula for Measuring Sales Impact of Advertising
Share of
expenditures
Share of voice
Share of mind
and heart
Share of
market
Section 3
SALES PROMOTIONS
What is Sales Promotion?
Sales promotions consist of a collection of
incentive tools, mostly short term, designed to
stimulate quicker or greater purchase of
particular products or services by consumers
or the trade.
Sales Promotion Tactics
p Consumer-directed p Trade-directed
n Samples n Price offs
n Coupons n Allowances
n Cash refund offers n Free goods
n Price offs n Sales contests
n Premiums n Spiffs
n Prizes n Trade shows
n Patronage rewards n Specialty advertising
n Free trials
n Tie-in promotions
Using Sales Promotions
Establish objectives
Select tools
Develop program
Evaluate results
Consumer franchise –building
promotion – Body By Milk
Section 4
EVENTS AND EXPERIENCES
Events
p Event marketing: creating a brand-marketing
event or serving as a sole or participating sponsor
of events created by others.
FF
Events objectives
p To identify with a particular target market or life
style
p To increase brand awareness
p To create or reinforce consumer perceptions of
key brand image associations
p To enhance corporate image
p To create experiences and evoke feelings
p To express commitment to community
p To entertain key clients or reward employees
p To permit merchandising or promotional
opportunities
Major Sponsorship Decisions
Establish objectives
Choose events
Design programs
Measure effectiveness
Choosing Events –ideal events
Audience closely matches
target market
generating media
attention
Engage in continuous
innovation
Section 5
PUBLIC RELATIONS
Public relations (PR)
p A public is any group that has an actual or
potential interest in or impact on a company’s
ability to achieve its objectives.
p Public relations (PR) includes a variety of
programs to promote or protect a company’s
image or individual products.
Public Relations Functions
p Press relations
p Product publicity
p Corporate communications
p Lobbying
p Counseling
Marketing Public Relations
(MPR) – additional tasks to PR
p Launching new products
p Repositioning a mature product
p Building interest in a product category
p Influencing specific target groups
p Defending products that have encountered
public problems
p Building the corporate image in a way that
reflects favorable on products
Major Tools in Marketing PR
p Publications
p Events
p Sponsorships
p News
p Speeches
p Public Service Activities
p Identity Media
Decisions in Marketing PR
Establish objectives
Choose messages
Choose vehicles
Implement