Download Marketing Management

Marketing Management
22nd of June 2011
Advertising and Public Relations
Advertising and Public Relations
• Background
– Communicating the company or brand’s value
proposition through paid media
– Intentions are to inform, persuade, and to remind
consumers
– PR involves building good relations with various
company Publics
– Consumers, suppliers, media, investors, donors,
government
– Advertising and PR have to be well blended into the
overall integrated marketing communications program
Advertising
• Advertising: Any paid form of non-personal presentation
and promotion of ideas, goods, or services by an
identified sponsor
• Advertising is a good way to inform and persuade
• Advertising is used by a myriad of companies ranging
from business to business to non profit organisations
• Four important decisions when developing an advertising
program
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Setting advertising objectives
Setting the advertising budget
Developing advertising strategy
Evaluating advertising campaigns
Setting Advertising Objectives
• Overall advertising objective should be to help build customer
relationships by communicating value
• The setting of objectives is based on past decisions on the target
market, positioning and the marketing mix
• Advertising Objective: A specific communication task to be
accomplished with a specific target market during a particular time
period
• Primary purpose of advertising objectives are to: inform, persuade or
to remind
• INFORM – When introducing a new product category. To build
primary demand
• PERSUASIVE – As competition increases. To build selective
demand. Also comparative advertising
• REMINDER – For mature products. To maintain relationships
Setting Advertising Objectives
Setting Advertising Objectives
Setting Advertising Budget
• Four methods for setting promotions budgets –
Affordable, Percentage of Sales, Competitive Parity and
Objective and Task
• A brand’s advertising budget depends on the Stage in
the Product Life Cycle
– New products need larger budgets
– Mature brands need lower budgets
• Market share also impacts on the advertising required
– Low share brands need more advertising
– Many competitors usually means more advertising
– Undifferentiated brands require heavy advertising
• Measuring the results of advertising spend is difficult
– Personal judgement and quantitative analysis is required
Developing Advertising Strategy
• Advertising strategy has two major elements: creating
advertising messages and selecting advertising media
• Previously creating messages was seen as primary and
often media selection was secondary
• Soaring media costs, focused target marketing
strategies, and new media have promoted the
importance of media planning
• Sometimes the decision on which media to utilise is
more important than the creative
• Increasingly a greater and closer harmony between
message and the media
Developing Advertising Strategy
• Creating the Advertising Message
Breaking the Clutter
– Advertisers have to gain attention and communicate
very well
– Clutter has created a hostile advertising environment
– Television viewers used to be a captive audience. Not
anymore: too many options
– Advertisers aren’t force feeding via traditional media
anymore
– Today’s advertising messages must be planned,
imaginative, entertaining and rewarding to consumers
– Madison & Vine: merging of advertising and
entertainment to break clutter
Developing Advertising Strategy
• Creating the Advertising Message
Message Strategy
– The straight forward message that will be communicated to
consumers
– An effective message strategy begins with identifying customer
benefits as appeals
– Message strategy follows the positioning and customer value
strategies
– Advertisers develop a creative concept that distinctively brings
the message strategy to life
– Advertising Appeals have three characteristics;
• Meaningful – what makes it more desirable
• Believable – does it deliver the promised benefits
• Distinctive – how is it better than competing brands
Developing Advertising Strategy
• Creating the Advertising Message
Message Execution
– Turning the big idea into an advert which captures the
target market’s attention and interest
– The creative team uses specific approaches, styles, tones,
words, and words for executing their message
– Different types of executions can be regarded as:
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Slice of life
Lifestyle
Fantasy
Mood or Image
Musical
Personality Symbol
Technical Expertise
Scientific Evidence
Testimonials or Endorsements
Developing Advertising Strategy
• Creating the Advertising Message
Consumer Generated Messages
– The use of consumers for adverts and for messages
– The advancement of technology enables the use of
many sites for created materials and other promotions
– Some marketers host contests and develop brand
websites for consumers to submit adverts, ideas and
videos
– Advantages:
• Fresh ideas and real thoughts at low costs
• Consumer involvement to express the brand’s value
– May be extremely dangerous giving consumers too
much creative freedom and control
See you next time.
Cheers Guys!