Download Chapter Objectives

Chapter Thirteen
Promotion I: Advertising
and Sales
Promotion
Marketing: Real People, Real Choices, 8e
Solomon, Marshall, and Stuart
Copyright © 2016 Pearson Education, Inc.
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Chapter Objectives
• Understand the communication process and the
traditional promotion mix
• Describe the steps in traditional and multichannel
promotional planning
• Tell what advertising is, describe the major types of
advertising, discuss some of the major criticisms of
advertising, and describe the process of developing an
advertising campaign and how marketers evaluate
advertising
• Explain what sales promotion is and describe the
different types of B2C and B2B sales promotion
activities
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Real People, Real Choices:
Decision Time at Brownstein
• Which option should Marc pursue?
• Option 1: More clearly define the new product
with a campaign that focused solely on defining
exactly what the client’s new product is and why
it’s better than the competitor’s product.
• Option 2: Fire back by taking direct aim at the
competition’s brand and product claims with a
hard-hitting campaign.
• Option 3: Launch a guerrilla marketing strategy
that attacked the rival more subtly than a major
ad campaign.
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Communication Models
in a Web 2.0 World
• Marketing messages can assume many forms
with a variety objectives
- From quirky TV commercials and viral videos to
blimps with blinking messages
- Savvy marketers know each element of the
marketing mix is a form of communication!
• All marketing communications aims to either
inform, remind, persuade, or build
relationships
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Integrated Marketing
Communications (IMC)
• Integrated marketing communication (IMC)
involves the planning, execution, and
evaluation of coordinated, brand
communication programs over time to
targeted audiences
- Aim is to deliver consistent messaging across
platforms
- Multichannel promotional strategies
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Figure 13.1: Three Models of
Marketing Communication
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Figure 13.2: Communication
Model
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The Source Encodes
• Process begins with a source
with an idea that they want to
communicate to a receiver
• Encoding is the process by
which the idea is translated
into a physically perceivable
form that conveys meaning
- Words, music, and images
- Spokespeople
- Animated characters
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The Message
• The message is the actual
content of communication
that goes from the source
to a receiver
• May be in the form of:
- Advertising
- Sales promotion
- A salesperson’s pitch
- Infomercial
- Word of mouth
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The Medium
• The medium is the
communication vehicle
that reach members of the
target audience
• Marketers face two major
challenges :
- Target market exposure
to medium
- Does product conflict
with medium
Gillette employs a creative
medium to get its message
to customers
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The Receiver Decodes
• For effective decoding to
occur, the source and
the receiver must share
a frame of reference.
• In this ad, the receiver
needs to understand the
meaning of the “white
flag” in order for the
message to make sense
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Noise and Feedback
• The communication model also
acknowledges that noise—anything that
interferes with effective communication—
can block messages.
• To complete the communication loop, the
source gets feedback from receivers.
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The Traditional Promotional Mix
• Promotion mix refers to communication
elements that the marketer controls.
- Mass (One-to-Many) Communication: Includes
advertising, sales promotion, and public relations
- Personal (One-to-One) Communication: Includes
personal selling and direct marketing
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Table 13.1: A Comparison of
Elements of the Traditional
Promotion Mix
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Figure 13.3: Control Continuum
Marketers face inherent trade-offs between the
extent of message control and the perceived
credibility of the message.
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Mass Communications:
The One- to-Many Model
• Some elements of the promotion mix include
messages intended to reach many
prospective customers at the same time
- Advertising
- Consumer sales promotion
- Public relations
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Personal Communications:
The One-to-One Model
• Marketers may sometimes prefer to
communicate on a personal level
- Personal selling
- Direct mail
- Telemarketing
- Direct marketing
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Marketing Communications
• Marketing communications inform, remind,
persuade and build relationships with
consumers
- IMC involves coordination of messaging to target
customers across platforms over time
• The communication model explains how
organizations create and transmit messages
Marketers are spending less and less each year on
mass-media advertising in favor of digital and mobile
outlets. Do you expect this trend to reverse?
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Overview of Promotional Planning
• Developing an effective promotional plan
can be highly complex
- Goal is to ensure the right message is
delivered to target audiences in the most
effective and cost-efficient way
- Development of promotional plan
involves several steps
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Figure 13.4: Steps to Develop the
Promotional Plan
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Step 2: Establish the
Communication Objectives
• Creating a new customer
occurs as a result of a
series of messages.
• Messages are designed
to move the consumer
closer to purchase, and
hopefully, loyalty.
• The process of moving
the consumer forward in
this fashion is known at
the hierarchy of effects.
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Step 3: Determine the Marketing
Communication Budget
• Step 3: Determine and allocate the
marketing communication budget
- Decision 1: Determine the total marketing
communication budget
- Decision 2: Decide on a push or pull strategy
- Decision 3: Allocate spending to specific
promotion activities
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Step 4: Design the Promotion Mix
• Designing promotional
mix involves:
- Determining promotional
tools to be used
- Specifying message to be
communicated
• Communication Goals
- Attention, interest, desire,
and action (AIDA model)
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Step 5: Evaluate the Effectiveness
of the Communication Program
• Marketers use a variety of ways to monitor and
evaluate the company’s communication efforts.
• Sales promotion are the easiest to evaluate as
they often occur over a fixed, short period
• Advertising has delayed effects, more difficult to
clearly link to sales
- Brand awareness, recall of product benefits,
image are typical ad campaign measures
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Multichannel Promotional
Planning
• Many marketers now opting for multichannel
promotional strategies
- Combines traditional promotions with social
media activities
• Multichannel promotion offers several benefits
- Boosts effectiveness of either online or
offline strategies used alone
- Allows marketers to repeat messages across
channels, strengthening awareness and
providing more customer conversion
opportunities
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Promotion Planning
• Developing a promotion plan that delivers the right
message to the right target market is not easy!
- Marketers follow sequence of promotional planning
steps
• Hierarchy of effects charts consumers’ path to brand
loyalty and guides objective setting
Advertising has a delayed effect upon sales. What are
the implications of this regularity upon promotion mix
planning for marketers in the auto industry? New vs.
established brands?
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Advertising
• Advertising is nonpersonal communication
from an identified sponsor using mass media
- Practice dates to ancient Greece and Rome
• Changes in media landscape have slowed
growth of traditional advertising …
- But mass communications remains the best
way to reach a large audience
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Figure 13.6: Types of Advertising
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Who Creates Advertising?
• An advertising campaign is a coordinated,
plan that carries out promotion objectives
and results in a series of ads placed in
various media over a period of time.
• Most brands hire outside agencies
- Limited-service agency
- Full-service agency
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Advertising Campaign Planning
Has Many Elements
• In executing ad campaigns, agencies pool
services of many different groups of people
-
Account management
Creative services
Research and marketing services
Media planning
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User-Generated Advertising
Content
• User-generated content (UGC) includes the
millions of product-related comments,
reviews, photos, images, and videos posted
online by consumers
- Some marketers encourage consumers to
contribute their own DIY ads (e.g., Dorito’s “Crash
the Super Bowl” contest)
- Crowdsourcing can help select a winning ad or
even create one (Ford’s “Fiesta Movement”
campaign)
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Ethical Issues in Advertising
• Advertising, more than any other aspect of
marketing, has been criticized as unethical
- Advertising is manipulative …
- Advertising is deceptive and untruthful …
- Advertising is offensive and in bad taste …
- Advertising causes people to buy things
they don’t need …
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Figure 13.7: Steps to Develop an
Advertising Campaign
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Figure 13.8: Creative Elements
of Advertising
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Execution Format
• Execution format describes the basic
structure of the message. Common formats
include:
-
Comparison
Demonstration
Storytelling
Testimonial
Slice of Life
Lifestyle
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Tonality
• Tonality refers to the
mood or attitude the
message conveys:
- Straightforward
- Humor
- Dramatic
- Romantic/Sexy
- Fear
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Pretest What the Ads Will Say
•Advertisers try to minimize mistakes by
getting reactions to ad messages before they
actually place them
• Data from pretesting research may come
from either quantitative (e.g., surveys) or
qualitative (e.g., focus groups) sources
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Table 13.2: Pros and Cons of
Media Vehicles: TV
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Table 13.2: Pros and Cons of
Media Vehicles: Radio
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Table 13.2: Pros and Cons of
Media Vehicles: Magazines
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Owned, Paid, and Earned Media
• Owned media may include websites, blogs,
Facebook, and Twitter accounts.
- Controlled by company, effective for relationship
building
• Paid media includes display ads,
sponsorships, and paid key word searches
- Most similar to traditional advertising, less
trusted by consumers
• Earned media refers to word of mouth or
buzz on social media.
- Most credible to consumers, no company control
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Website Advertising
• Online advertising is no
passing fad
- US adults spend more
time on mobile devices
than TV
• Target customers via:
-
Banners and buttons
Pop-up ads
Search engine
Permission email
marketing
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Ethical/Sustainable Decisions in
the Real World
• Order of Google links based on a complex
algorithm that quantifies site popularity
• Some marketers try to “game” the system
- Buying paid links on other sites, some of which
have nothing in common with the link site
- Google has punished “offending” retailers during
peak seasons
Is it ethical for marketers to pay for links on
websites in order to obtain higher rankings on
search engines?
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Mobile Advertising, Branded
Entertainment and Support Media
• Mobile advertising is advertising that is
communicated to consumers via a handset
- GPS-enabled phones allow new ad opportunities
• Branded entertainment refers to paid
placement of brands within movies, TV
shows, video games, and even retail settings
• Support media include directory advertising,
outdoor advertising, and transit advertising
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Figure 13.9: Media Schedule for a
Video Game
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Evaluate the Advertising
How might the sponsor assess the
effectiveness of this campaign?
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Planning and Executing Effective
Advertising Campaigns
• Because marketers spend so much on
advertising, they must decide which type of
ad will work best
- Three main types of advertising are product,
institutional, and local/retail
- Pretesting and post-testing ads are critical to
ensuring positive results
More firms are using product placements in movies
and TV shows. How effective do you think branded
entertainment is for raising product awareness?
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Sales Promotion
• Sales promotions are programs designed to
build interest in or encourage purchase of a
good or service during a specified period
• How does sales promotion compare to
advertising?
- Both are paid promotional activities with
identifiable sponsors
- Differ in that sales promotions typically have a
more immediate short-term objective
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Figure 13.10: Types of Consumer
Sales Promotion
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Figure 13.11: Trade Sales
Promotions
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Sales Promotion Designed to
Increase Industry Visibility
• Other types of trade sales promotions
increase the visibility of a manufacturer’s
products to industry channel partners
-
Trade shows
Promotional products
Point-of-purchase displays
Incentive programs
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Consumer and Trade
Sales Promotion
•Consumer sales promotion target end
customers
- Price-based and attention getting sales
promotions
•Trade sales promotions focus on members of
the supply chain
- Discount and increased visibility trade promotions
Overuse of sales promotions has led to higher dealseeking by many consumers. How can companies
prevent this?
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Real People, Real Choices:
Decision Made at Brownstein Group
• Marc chose option 1
• Implementation: Marc’s agency rolled out an
advertising campaign that used an educational
approach to explain the positioning and benefits of
the new brand. Ads appeared in print, outdoor,
online, and on radio. As a result of this campaign,
the attack ad from the competition soon subsided.
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