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18
Managing Mass
Communications:
Advertising,
Sales Promotions,
Events and Experiences,
and Public Relations
Marketing Management, 13th ed
Chapter Questions
• What steps are involved in developing an
advertising program?
• How should sales promotion decisions be
made?
• What are the guidelines for effective brandbuilding events and experiences?
• How can companies exploit the potential of
public relations and publicity?
18-2
What is Advertising?
Advertising is any paid form of
nonpersonal presentation and
promotion of ideas, goods, or services
by an identified sponsor.
18-3
The Five M’s of Advertising
• Mission—setting goals and advertising objectives
• Money—contingent upon stage in PLC, market
share, consumer base, competitions, advertising
frequency, product substitutability.
• Message—generation, evaluation, selection,
execution, social-responsibility.
• Media—reach, frequency, impact, types, vehicles,
timing, geographic scope
• Measurement—communication impact, sales
impact
18-4
Advertising Objectives
• Informative—to create brand awareness
and knowledge of new products or new
features of existing products
• Persuasive—to create liking preference,
conviction, and purchase of a product or
service.
• Reminder—to stimulate repeat purchase of
products and services
• Reinforcement—to convince current
purchasers that they made the right choice.
18-5
Factors to Consider in Setting an
Advertising Budget
• Stage in the product life cycle
—new products (large advertising budgets to build awareness and to gain
consumer trial)
—established brands (lower advertising budgets, measured as a ratio to
sales)
• Market share and consumer base
—high-market-share brands (less advertising expenditure as a percentage of
sales to maintain share)
—build share by increasing market size (requires larger expenditures)
• Competition and clutter
—market with a large number of competitors and high advertising spending
(brand must advertise more heavily to be heard).
• Advertising frequency
—number of repetitions needed to put across the brand’s message to
consumers impacts advertising budget
• Product substitutability
—brands in less-well-differentiated or commodity-like product class (beer, soft
drinks, banks, and airlines) require heavy advertising to establish a
18-6
differential image.
Developing the
Advertising Campaign
• Message generation and evaluation
—what the ad attempts to convey about the
brand
• Creative development and execution
—how the ad expresses the brand claims
• Legal and social issues
18-7
PURPOSE OF ADVERTISING
• IN ORDER TO STATE THE PURPOSE:
• MUST DECIDE THE PRECISE ACTION WE
WANT THE TARGET AUDIENCE TO TAKE
AFTER WATCHING, READING, OR LISTENING
TO THE AD
• PURPOSE IS:
• TO PERSUADE SOMEONE TO DO
SOMETHING
• MUST DECIDE
• WHO
• WHAT TO DO
8
PURPOSE OF ADVERTISING-CONTINUED
• ADVERTISING IS THE CAUSE
• BEHAVIOR IS THE EFFECT
• BUY, USE, WRITE, CALL, VISIT DEALER, ORDER BY
PHONE
• COMPLETE STATEMENT INCLUDE BUSINESS
SOURCE
• KEY TO MARKETING DEFINITION IS
SUBSTITUTABILITY
• WHICH PRODUCTS MIGHT THE BRAND BE
INTERCHANGEABLE
• SET OF PRODUCTS MIGHT BE SMALLER OR
LARGER THAN THE SET OF PRODUCTS BY WHICH
THE CATEGORY IS TRADITIONALLY DEFINED
9
BARRIER THEORY
• CAN ANY OF THE PROMOTIONAL
ELEMENTS OVERCOME THESE
BARRIERS IN THE CONSUMER DECISION
PROCESS?
• AWARENESS
• ACCEPTANCE
• PREFERENCE
• SEARCH
• SELECTION
• USE
• SATISFACTION
10
EXAMPLES OF PURPOSE OF ADVERTISING
• PURPOSE OF ADVERTISING IS TO PERSUADE
THE AUDIENCE:
• TO BUY RUFFLES INSTEAD OF OTHER
BRANDS OF POTATO CHIPS
• TO USE BISQUICK INSTEAD OF PANCAKE MIX
• TO PERSUADE MEMBERS OF THE TARGET
AUDIENCE TO COME INTO THE SHOWROOM
FOR A TEST DRIVE TO THE AUDI 80/90,
RATHER THAN OTHER HIGH-LINE SPORTS
SEDANS
11
TARGET
• THE GROUP OF PEOPLE WHO ARE THE BEST
PROSPECTS FOR THE ADVERTISER’S BRAND
• TO WHOM THE ADVERTISING WILL BE
ADDRESSED
• NEED A PERSON TO WRITE TO:
• BUSINESS TRAVELLERS WHO ARE LIKELY
TO STAY AT MID-PRICED HOTELS
• HEAVY USERS OF CHARCOAL
• YOUNG WOMEN WHO HAVE ACNE
PROBLEMS
• PEOPLE IN THE MARKET FOR AN EXPENSIVE
SPORTY EUROPEAN CAR
12
NEED TO KNOW DEMOGRAPHIC AND
PSYCHOGRAPHIC PROFILE
• BUSINESS TRAVELLERS WHO ARE LIKELY TO
STAY AT A MID-PRICE HOTEL, $45,000 TO
$75,000 ANNUAL INCOME. EIGHTY PERCENT
ARE MALES. THEY CHOOSE MID-PRICE
ACCOMMODATIONS BECAUSE THEY ARE
PAYING THEIR OWN WAY, OR BECAUSE THEIR
EXPENSE ACCOUNTS ARE LIMITED. THEY
WANT BASIC, CLEAN ACCOMMODATIONS WITH
A MINIMUM OF HASSLE. THEY ARE
FREQUENTLY TIRED, USUALLY INPATIENT, AND
ALWAYS CRITICAL. SMALL LUXURIES, SPECIAL
RESPECT AND ATTENTION ARE IMPORTANT TO
THEM
13
NEED TO KNOW DEMOGRAPHIC AND
PSYCHOGRAPHIC PROFILE--CONTINUED
• HEAVY USERS OF CHARCOAL,
FATHERS BETWEEN 25 AND 49.
MOST OF THEM LIVE IN THE
SUBURBS OR SEMIRURAL AREAS.
THEY GET A BIG KICK OUT OF
BARBECUING FOR FAMILY AND
FRIENDS. THEY WANT THE MEAT
TO TURN OUT JUST RIGHT
14
EXAMPLE OF PURPOSE AND TARGET
• PURPOSE
• TO PERSUADE FREQUENT NEW YORK TO WASHINGTON, DC
TRAVELLERS TO TAKE AMTRACK INSTEAD OF A PLANE
• TARGET
• FREQUENT NEW YORK TO WASHINGTON TRAVELLERS ARE
LIKELY TO BE WELL-EDUCATED, WHITE-COLLAR
PROFESSIONALS CONDUCTING A DAY’S BUSINESS IN
EITHER CITY. THE NEARLY 10,000 PEOPLE WHO FLY DAILY
BETWEEN NEW YORK AND WASHINGTON HAVE GROWN
ACCUSTOMED TO NO-FRILLS SERVICE, CROWDED SEATING
AND “CATTLE CAR” CONDITIONS. THEIR TIME IS AT A
PREMIUM AND, DESPITE AIRPORT DELAYS AND TRAVEL
TIME TO AND FROM AIRPORTS, THEY BELIEVE PLANES
PROVIDE THE SHORTEST TRIP POSSIBLE. SIXTY TO
SEVENTY PERCENT ARE MALES
15
PROMISE
• BENEFIT OR REWARD FOR BUYING OR USING
THE ADVERTISED BRAND
• WHEN I_________. I WILL__________.
• THE “I” IN THIS SENTENCE IS THE TARGET
AUDIENCE
• THE 1ST BLANK REPRESENTS THE PURPOSE
OF THE ADVERTISING
• THE 2ND BLANK REPRESENTS THE BENEFIT
• NUMBER OF PROMISES
• SINGLE MINDED OR ONE IN MOST CASES
• COMBINATION, RATHER THAN ONE BENEFIT, IF IT DEFINES
THE ESSENTIAL NATURE OF THE BRAND (WEIGHT
WATCHERS’ ENTREES--REDUCED CALORIES AND GOOD
TASTE).
16
PROMISE IS THE HEART OF THE STRATEGY
• THE BENEFIT IS IN THE MIND OF THE
CONSUMER, NOT IN THE PRODUCT.
PRODUCTS HAVE ATTRIBUTES, NOT BENEFITS
• THE BENEFIT IS A FUTURE EXPERIENCE. IT IS
AN (SUBJECTIVE) EXPERIENCE PROMISED TO
THE CONSUMER BY THE ADVERTISER AS A
REWARD FOR BUYING OR USING THE
ADVERTISED BRAND
• THE BENEFIT IS A CONCLUSION, TO BE DRAWN
BY THE CONSUMER FROM THE CAMPAIGN AS A
WHOLE. THE PROMISE IS NOT A COPY LINE.
THE WORDS USED IN THE STRATEGY MAY OR
MAY NOT EVER APPEAR IN THE ADVERTISING
17
ITSELF
EXAMPLES OF PURPOSE AND BENEFIT
• WHEN I TAKE AMTRACK INSTEAD OF
THE PLANE FROM NEW YORK TO
WASHINGTON, DC (PURPOSE). I WILL BE
MORE COMFORTABLE, BETTER
TREATED, AND MORE VALUED (BENEFIT)
• WHEN I BUY INSURANCE FROM STATE
FARM INSTEAD OF FROM SOME OTHER
INSURANCE COMPANY (PURPOSE). I
WILL KNOW THAT A FRIENDLY STATE
FARM AGENT WILL BE AT MY SIDE IF I
NEED HELP (BENEFIT)
18
EXAMPLE OF BENEFITS
• PRACTICAL
• REWARDS WHICH COME FROM SAVINGS
TIME OR MONEY, OR EXPERIENCING GOOD
HEALTH
• SENSORY
• INTERESTING TEXTURE OR DELICIOUS
TASTE
• SOCIAL
• APPROVAL FROM FAMILY OR PEERS
• EGO-SATISFACTION
• PRIDE IN BEING A GOOD MOTHER, OR
FEELING OF ACCOMPLISHMENT FROM19
HAVING COMPLETED A DEMANDING JOB
WHEN BENEFITS OCCUR
• WHILE THE PRODUCT IS BEING
USED
• AFTER THE PRODUCT HAS BEEN
USED
• AS AN INCIDENTAL BY-PRODUCT
OF THE PRODUCT’S MAIN EFFECT
20
BENEFIT MATRIX--POTENTIAL
BENEFITS OF REAL CHEESE
POTENTIALLY
REWARDING
EXPERIENCES
PRACTICAL
IN-USE
EXPERIENCE
SENSORY
SOCIAL
EGOSATISFACTION
CONVENIENCE; NEW TASTE
KIDS CAN HELP FOR ROUTINE
THEMSELVES
FOODS
FAMILY WILL
BE GRATEFUL
I AM A GOOD
MOTHER
RESULTS-OFUSE
EXPERIENCE
STRONG BONES FEEL BETTER
OTHERS THINK
I LOOK GOOD
I AM TAKING
GOOD CARE OF
MYSELF
INCIDENTIALTO-USE
EXPERIENCE
LOW-COST
NUTRITION
ADDS VARIETY
I AM A GOOD
TO PARTY
COOK
REFRESHMENTS
NO MESS
21
SUPPORT
• LENDS CREDIBILITY TO THE
ADVERTISER’S PROMISE
• SUPPORT REFERS TO EVERYTHING
IN THE ADVERTISING THAT LENDS
CREDIBILITY TO THE
ADVERTISER’S PROMISE
• TWO TYPES OF SUPPORT
• INTERNAL AND EXTERNAL
22
INTERNAL SUPPORT
• PRODUCT OR INTELLECTUAL FACTS
• WHEN I TAKE AMTRACK INSTEAD OF THE PLANE
FROM NEW YORK TO WASHINGTON (PURPOSE). I
WILL BE MORE COMFORTABLE, BETTER TREATED,
AND MORE VALUED (BENEFIT) BECAUSE AMTRACK
PROVIDES WIDER SEATS, MORE LEG ROOM, BETTER
SERVICE, AND FREEDOM TO MOVE AROUND
(SUPPORT)
• DEMONSTRATIONS (SHOW BRAND AT WORK)
• LITERAL--SUFFER EXPERIENCE RELIEF ON SCREEN
• DRAMATIC--PART OF A PLAY--BUD LIGHT
23
EXTERNAL SUPPORT
• SUPPORT FOR THE PURPOSE OR
THE PROMISE OF THE
ADVERTISING CAMPAIGN
THROUGH THE USE OF:
• SALES PROMOTION
• PUBLIC RELATIONS PROGRAMS
• ADVERTISING INTENDED TO ELICIT
DIRECT RESPONSE
24
PROMISE VS SUPPPORT
• THE PROMISE IS THE MEANING TO
BE DRAWN FROM THE AD.
• PROMISE TO THE END
• THE SUPPORT IS THE MEANS BY
WHICH THAT PROMISE IS
CONVEYED.
• SUPPORT IS THE MEANS
25
WHERE TO LOOK FOR SUPPORT
• BACKGROUND MUST COME FROM
CONSUMERS
• PRODUCT TESTING
• CONSUMER SURVEYS
• USER THEMSELVES (i.e., WRITER OF
AD)
• MUST BE RELEVANT TO TARGET
• MUST OPERATE IN A COMPETITIVE
WORLD
26
ROI
• RELEVANCE
• MESSAGE MUST BE RELEVANT--TO PRODUCT, TARGET,
AND SPECIFIC BEHAVIOR ADVERTISER INTENDED TO
PROMOTE
• ATTRIBUTE IS NOT SUPPORT FOR PROMISE UNTIL
CUSTOMER UNDERSTANDS HOW ATTRIBUTE MAKES
BRAND A BETTER SATISFIER OF NEEDS
• ORIGINALITY
• NEEDS TO BE ORIGINAL TO ATTRACT ATTENTION--BREAK
THE PATTERN
• IMPACT
• ABILITY TO BREAK THROUGH INDIFFERENCE AND FOCUS
ATTENTION UPON MESSAGE THE ADVERTISEMENT IS
INTENDED TO CONVEY
• INTRUSIVENESS--TWO SOURCES: MEDIA AND STRUCTURE
OF ADVERTISING MESSAGE--ELEMENT OF SURPRISE
27
LEGS
• IMPACT OF AN INDIVIDUAL
ADVERTISEMENT OR LONG-TERM
CAMPAIGN
• IDEA MAY YIELD EFFECTIVE
VARIATION--LONG WAY
• JOE GREEN COMMERCIAL
28
BRAND PERSONALITY
• DEFINTION
• CONSISTENCY OF TRAITS (DRESS, SPEECH, LOOKS,
HABITS, TRAITS THAT GO TOGETHER IN A MORE-ORLESS COHERENT WAY) AND PREDICTABILITY
(CONSISTENCY OVER TIME)
• BRAND
• SET OF ENDURING CONSUMER PERCEPTIONS WHICH
FORMS A BASIS FOR EXPECTATION OF BRAND
BENEFITS
• INTERNALLY CONSISTENT, TRAITS MUST FIT
TOGETHER, PACKAGE, PRICE, LOOK, SOUND, SMELL,
SIZE, NAME, COLOR, SHAPE--MUST HAVE A SINGLE
THEME
29
BRAND PERSONALITY--CONTINUED
• BRAND PERSONALITY
• SEPARATES THE BRAND FROM ITS COMPETITORS
• PREDICTS THE FUTURE EXPERIENCE WITH THAT
BRAND
• ROLE OF ADVERTISING
• BECOMES PART OF THE IMAGE AND TELL WHAT THE
BRAND IS
• BUSH BEER--HONEST, RUGGED, MANNLY
• STATE FARM INSURANCE--STRAIGHT-FORWARD,
WARM, A GOOD NEIGHBOR
• METROLINER--CIVILIZED, INVITING,
COMFORTABLE, CLEAN, DEPENDABLE, SAFE
30
MEDIA
• MEDIA
• WHAT MEDIA WILL MATCH THE PURPOSE OF THE
ADVERTISING?
• C.P.M. (COST PER THOUSAND IMPRESSIONS)
• WHAT MEDIA WILL DELIVER THE MESSAGE TO THE
TARGET AT THE LOWEST POSSIBLE COST?
• WHAT IS THE AVAILABILITY, REACH AND FREQUENCY,
AND NEGOTIATED COST PER THOUSAND
IMPRESSIONS THAT THE ADVERTISER CAN SPEND
WHICH WILL ACHIEVE THE PURPOSE--TO REACH THE
TARGET, COMMUNICATE BENEFIT(S) AND
SUPPORTING EVIDENCE?
31
APERTURE
• WHEN, WHERE, AND UNDER WHAT
CIRCUMSTANCES WILL THE TARGET BE MOST
RECEPTIVE TO THE MESSAGE
• WHEN THE RELEVANT DECISION GETS MADE
• MOTHER’S DAY, FATHER’S DAY, EASTER,
CHRISTMAS--ALL INCREASE INTEREST IN PRODUCTS
AND SERVICES APPROPRIATE FOR THOSE TIMES
• BREAKFAST EATERS THINK ABOUT WHAT TO HAVE
FOR BREAKFAST AT BREAKFAST TIME, AND ARE
LIKELY TO BE OPEN TO MESSAGE ON MORNING
RADIO
• PLACE WHERE THE DECISIONS GETS MADE
• UNDER WHAT CIRCUMSTANCES THE DECISION
32
GETS MADE
EXAMPLES OF APERTURE
• READING FASHION MAGAZINE, MAY MAKE
INTERESTED READER EVEN MORE
INTERESTED IN MESSAGES ABOUT EXERCISE,
DIET, MAKEUP, OR CLOTHES
• MICHELIN PLACED MESSAGES IN WEATHER
REPORTS ON CABLE TELEVISION’S WEATHER
CHANNEL. THE PREMISE WAS THAT DRIVERS
WHO ARE CONCERNED ABOUT THE WEATHER
MIGHT ALSO BE CONCERNED ABOUT
SECURITY, AND MIGHT THEREFORE BE
ESPECIALLY RECEPTIVE TO MESSAGES
CONCERNING MICHELIN TIRES
33
FIVE VENUES
• DEFINITION
• EACH VENUE REPRESENTS A
DIFFERENT RELATIONSHIP
BETWEEN THE ADVERTISED
PRODUCT AND THE SOURCE OF
BUSINESS--PRODUCT (MIGHT BE
BOUGHT OR USED INSTEAD)
34
VENUE ONE
• OBVIOUS SUPERIORITY
• FOCUS ON THE CUSTOMER--ROI
• EXPAND THE CATEGORY
• PREPARE FOR COMPETITIVE
RESPONSE
35
VENUE TWO
• MARGINAL SUPERIORITY
• LINKS BETWEEN MINOR PHYSICAL
DIFFERENCE AND MAJOR PSYCHOLOGICAL
NEEDS CAN PROVIDE DECISIVE
COMPETITIVE BENEFITS
• BUSH BEER--MINOR PHYSICAL DIFFERENCE
BETWEEN BUSH AND OTHER BRANDS IS THE BUSH
MOUNTAIN LOGO. WHEN LINKED WITH THE
NOTION THAT BUSCH GOES DOWN “SMOOTH AS A
MOUNTAIN STREAM.” THE LOGO SYMBOLIZES A
COMPETITIVE LEVERAGE FOR THE BRAND
36
VENUE THREE
• PERCEIVED INFERIORITY
• TARGET THOSE WHO INFLUENCE THE
BEHAVIOR OF OTHERS
• CORRECTION OF ERRONEOUS BELIEFS-UNDERSTANDING WHY THE BELIEFS ARE
STILL HELD
• THE TARGET IS NEVER EVERYONE, EVEN
THOUGH EVERYONE MAYBE WRONG
• AMTRACK--UNREALIABLE, UNCOMFORTABLE, AND
PROBABLY LATE
37
VENUE FOUR
• REAL INFERIORITY
• SEEK OUT AND STRIKE AT ANY WEAKNESS
OF THE OTHERWISE SUPERIOR BRAND
• ADVERTISING MUST STILL PROMISE A
COMPETITIVE BENEFIT. COMPETITOR’S
WEAKNESS IS NOT ENOUGH
• CAN NOT BE SOLD BY ADVERTISING ALONE
• THE BEETLE--DEPENDABLE AND
ECONOMICAL, AND WOULD NOT GO
OUT OF STYLE
38
VENUE FIVE
• PARITY
• IMPORT
• FOCUS ON A MAJOR BENEFIT THAT THE BRAND DOES
NOT PROVIDE BEFORE THE ADVERTISING STARTS-THAN THE BENEFITS BECOMES TIGHTLY LINKED TO THE
BRAND AND IT BECOMES A PROPERTY OF THE BRAND
• BREAKFAST OF CHAMPIONS
• THE NIGHT BELONGS TO MICHELOB
• PREEMPT STRATEGY
• NON-EXCLUSIVE BENEFIT THAT THE BRAND ALREADY
PROVIDES IS MADE THE EXCLUSIVE PROPERTY OF
ADVERTISER’S BRAND
• LIKE A GOOD NEIGHBOR
• WE SELL NO WINE BEFORE ITS TIME
• SINGLE MINDED
• PERSONALITY
39
SUMMARY OF ROI
FIVE BASIC QUESTIONS
• WHAT IS THE PURPOSE OF THE ADVERTISING?
• TO WHOM WILL THE ADVERTISING BE
ADDRESSED?
• WHAT COMPETITIVE BENEFIT WILL BE
PROMISED, AND HOW WILL THAT PROMISE BE
SUPPORTED?
• WHAT PERSONALITY WILL DISTINGUISH THE
BRAND?
• WHEN, WHERE AND UNDER WHAT
CIRCUMSTANCE WILL THE TARGET BE MOST
RECEPTIVE TO THE MESSAGE? AND, WHAT
MEDIA WILL DELIVER THAT MESSAGE TO THAT
TARGET AT THE LOWEST POSSIBLE COST?
40
Problem--Multiple Vitamin Supplements
•
Multiple vitamin supplements make up a large, well-established market with a
substantial number of different brands and manufacturers. The market also
displays a wide variety of marketing approaches even though the products
themselves are largely homogeneous in physical characteristics. The
differences in marketing approaches revolve around the choice of distribution
channel. There are 5 different marketing approaches that are currently in use.
Mail Order—vitamins offered through catalogs mailed directly to prospective
consumers. Price to the consumer is low.
Proprietary—vitamins sold through retail drug, food, and discount stores and
advertised to consumers by the manufacturer. Retail price is high.
Ethical—vitamins sold through drugstores and sold to consumers based on
recommendations from doctors or druggists. Retail price is high.
Door-to-Door—vitamins sold directly to consumers in their home by salespeople of
the manufacturer. Price to consumers is high.
Private Label—vitamins sold to druggists for resale under the druggist’s own label to
consumers. Retail price is low.
Even if it is assumed that the product under each marketing approach is the same,
the advertising effort will vary substantially because of differences is price and
distribution channels.
For each marketing approach:
1)
will the amount of advertising tend to be high or low compared to the other alternatives?
2)
what will be the task of advertising?
41
Multiple Vitamin Supplements
Approach
Distribution
Price
Task of
Advertising
Amount of
Advertising
Mail Order
Direct to consumer Low
by mail
Make direct sales
High—no other
selling expense
Proprietary
Through retailers
by “pulling”
High
Develop brand
preference
through retail
outlet
High—must
overcome lack of
retail selling effort
Ethical
Through retailers/
Physician
recommendation,
push
High
Get
recommendations
and prescriptions
Low—narrow
target, high retailer
margins
Door-to-Door
Direct to consumer High
by personal selling
Get sales agent
into the home
Low—funds
devoted to selling
commissions
Private Label
Through retailers
Price
Comparisons
Low
Low—margins
narrow due to low
42 price
Media Selection—finding the most cost-effective media to
deliver the desired number and types of exposures
• Reach—the number person or households exposed
to a particular media schedule at least once during a
specified time period
• Frequency—the number of times within the
specified time period that an average person or
household is exposed to the message
• Impact—the qualitative value of an exposure
through a given medium
• Exposure—reach X frequency = Exposure or gross
rating point
18-43
Choosing Among Major Media Types
• Target audience and media habits—radio and television are
the most effective media for reaching teens
• Product characteristics—media types have different potential
for demonstration, visualization, explanation, believability, and
color. Women’s dresses are best shown in color magazines,
but high-tech products requiring dynamic presentation such as
digital cameras, printers, or cell phone are best demonstrated
on television
• Message characteristics—timeliness and information content
will influence media choice. A message announcing a major
sales tomorrow will require radio, TV, or newspaper. A
message containing a great deal of technical data might require
specialized magazines or mailings
• Cost—television is very expensive, whereas newspaper
advertising is relatively inexpensive. What counts is the cost
per thousand exposures.
18-44
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
18-45
Comparing Advertising Media
Media
Television
& cable
Direct
mail
Newspaper
Radio
2004
spend.
(billions)
$67.8
$52.2
$46.6
$19.6
2-year
%
growth
Advantages
Disadvantages
25.3%
Demonstrates well,
good attention, wide
reach
Expensive in total,
“clutter,” and less
selective audience
16.8
Selected audience,
flexible, can
personalize
Relatively costly per
contact, “junk mail,”
hard to retain attention
5.9
Flexible, timely, local
market
May be expensive,
short life, no “pass
along”
9.5
Wide reach, low cost
segmented audience
Weak attention, many
different rates, short
exposure
Comparing Advertising Media
Media
Yellow
pages
Magazine
Internet
Outdoor
2004
spend.
(billions)
$14.0
$12.3
$6.9
$5.8
2-year
%
growth
Advantages
Disadvantages
1.4%
Reaches local
customers seeking
purchase info.
Many competitors
listed in same place,
hard to differentiate
11.8
Very targeted, good
detail, good “pass
along”
Inflexible, long lead
times
40.8
Ads link to more
detailed site, some
“pay for results,”
easy to track results
Hard to compare
costs with other media
11.5
Flexible, repeat
exposure,
inexpensive
“Mass market,” very
short exposure
Measures of Audience Size
• Circulation—the number of physical
units carrying the advertising
• Audience—the number of people
exposed to the vehicle (if the vehicle
has pass-on readership, then the
audience is larger than circulation
• Effective audience—the number of
people with target audience
characteristics exposed to the vehicle
• Effective ad-exposed audience—the
number of people with target audience
characteristics who actually saw the ad
18-48
Evaluating Advertising Effectiveness
• Communication Effect Research
• Consumer feedback method—ask consumer questions
(e.g., What is the main message you get from this ad? How
likely is it that this ad will influence you to undertake the
action?)
• Portfolio tests—consumers view or listen to a portfolio of
advertisements. Consumer are than asked to recall all the
ads and their content, aided or unaided by the interviewer.
Recall level indicates an ad’s ability to stand out and to
have its message understood and remembered.
• Laboratory tests—use of equipment to measure
physiological reactions—heartbeat, blood pressure, pupil
dilation, galvanic skin response, perspiration—to an ad; or
consumers may be asked to turn a knob to indicate their
moment-to-moment liking or interest while viewing
sequenced material
• Sales-Effect Research—What sales are generated by an ad
that increases brand awareness by 20% and brand preference
by 10%
18-49
Print Ad Evaluation Criteria
•
•
•
•
Is the message clear at a glance?
Is the benefit in the headline?
Does the illustration support the headline?
Does the first line of the copy support or
explain the headline and illustration?
• Is the ad easy to read and follow?
• Is the product easily identified?
• Is the brand or sponsor clearly identified?
18-50
Factors Affecting Timing Patterns
• Buyer turnover
—rate at which new buyers enter the market (the
higher this rate, the more continuous the
advertising should be)
• Purchase frequency
—the number of times during the period that the
average buyer buys the product (the higher the
purchase frequency, the more continuous the
advertising should be)
• Forgetting rate
—the rate at which the buyer forgets the brand (the
higher the forgetting rate, the more continuous the
advertising should be)
18-51
Media Schedule Patterns
• Continuity
—exposures appear evenly throughout the period
• Concentration
—spending all advertising dollars in a single period
• Flighting
—advertising for a period, followed by a period with
no advertising, followed by a second period of
advertising activity
• Pulsing
—continuous advertising at low-weight levels
reinforced periodically by waves of heavier
activity
18-52
Most Organizations Use One of These Three
Scheduling Strategies
53
Measuring Sales Impact of Advertising
• Share of expenditures
• Share of voice—proportion of company advertising
of that product to all advertising of that product
• Share of mind—percentage of customers who
named the competitor in response to the statement,
“Name the first company that comes to mind in this
industry.”
• Share of heart—percentage of customers who
name the competitor in responding to the statement,
“Name the first company from which you would
prefer to buy the product.”
• Share of market
18-54
What is Sales Promotion?
Sales promotion consists 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.
18-55
Sales Promotion Tactics
Consumer-directed
Trade-directed
•
•
•
•
•
•
•
•
•
•
Samples—offer of a free amount of a
product or service.
Coupons—certificates entitling the bearer
to a stated saving on the purchase of a
specific product
Cash refund offers—provide a price
reduction after purchase
Price offs—offers to consumers of saving
off the regular price of a product
Premiums—merchandise offered at a
relatively low cost or free as an incentive
to purchase a product
Prizes—offers of the chance to win cash,
trips, or merchandise as a result of
purchasing something
Patronage rewards—values in cash or in
other forms that are proportional to
patronage
Free trials—inviting prospective
purchases to try a product
Tie-in promotions—two or more brands
or companies team up on coupons,
refunds, and contests to increase pulling
power
•
•
•
•
•
•
Price offs—straight discount off the list
price on each case purchased during a
stated time period
Allowances—amount offered in return
for the retailer’s agreeing to feature the
manufacturer’s products in some way—
advertising or special product display
Free goods—offers of extra cases of
merchandise to intermediaries who buy a
certain quantity or who feature a certain
flavor or size
Sales contests—aims at inducing the
sales force or dealers to increase their
sales results over a stated period, with
money or prizes, etc.
Spiffs—sales performance Incentive
Trade shows—industry associations
organize annual trade shows and
conventions
Specialty advertising—useful, low-cost
items bearing the company’s name and
address, etc.
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Sales Promotion: Do Something Different to
Stimulate Change
Events and Experiences
• $14.9 billion spent on sponsorship in
2007
•
•
•
•
•
66% sports
11% tours
5% festivals, fairs
5% arts
10% causes
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Why Sponsor Events?
• To identify with a particular target market or
life style
• To increase brand awareness
• To create or reinforce consumer perceptions
of key brand image associations
• To enhance corporate image
• To create experiences and evoke feelings
• To express commitment to community
• To entertain key clients or reward employees
• To permit merchandising or promotional
opportunities
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Using Sponsored Events
• Establish objectives (e.g., to identify with a particular
target market or lifestyle; to increase awareness of
company or product name; to enhance corporate)
• Choose events (e.g., naming rights to a sports
facilities—Staples)
• Design programs (e.g., fund-raisers, anniversary
celebrations, art exhibits)
• Measure effectiveness (e.g., Supply-side
measurement method focuses on potential exposure
to the brand by assessing the extent of media
coverage; and demand-side method focuses on
reported exposure from consumers)
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Ideal Events
• Audience closely matches target
audience
• Event generates media attention
• Event is unique with few sponsors
• Event lends itself to ancillary activities
• Event enhances brand image of
sponsor
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Customer Experience Management:
Experience Providers
•
•
•
•
Communications—
advertising, public relations,
annual reports, brochures,
newsletters
Identity—names, logos,
signage, and transportation
vehicles
Product presence—product
design, packaging, and pointof-sales displays
Co-branding—event marketing
and sponsorships, alliance and
partnerships, licensing, and
product placement in movies or
TV
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•
•
•
Environments—retail and
public spaces, trade booths,
corporate building, office
interiors, and factories
Electronic media—corporate
sites, product or service sites,
CD-ROMs, automated e-mail,
online advertising, and intranets
People—salespeople,
customer-service
representatives, technical
support or repair providers,
company spokespersons, and
CEOs and other executives
Steps in the CEM Framework
•
•
•
•
•
Analyze the customer’s experiential world—gaining insights into
socio-cultural context of consumer or the business context of business
customers
Build the experiential platform—developing a strategy that includes
the positioning for the kind of experience the brand stands for, the value
proposition of what relevant experience to deliver, and the overall
implementation theme that will be communicated
Design the brand experience—implementing their experiential platform
in the look and feel of logos and signage, package, and retail spaces, in
advertising, collaterals, and online
Structure the customer interface—implementing the experiential
platform in the dynamic and interactive interfaces including face-to-face,
in stores, during sales visits, at the check-in desk of a hotel, or the ecommerce engine of a web site
Engage in continuous innovation—implementing the experiential
platform in new-product development, creative marketing events for
customers, and fine-tuning the experience at every point of contact.
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Tasks Aided by Public Relations
•
•
•
•
•
Launching new products
Repositioning a mature product
Building interest in a product category
Influencing specific target groups
Defending products that have
encountered public problems
• Building the corporate image in a way
that reflects favorable on products
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Public Relations Functions
• Press relations—presenting news and information
about the organization in the most positive light
• Product publicity—sponsoring efforts to publicize
specific products
• Corporate communications—promoting
understanding of the organization through internal
and external communications
• Lobbying—dealing with legislators and government
officials to promote or defeat legislation and
regulation
• Counseling—advising management about public
issues, and company positions and image during
good times and bad.
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Major Tools in Marketing PR
• Publications (e.g., annual reports, brochures,
articles, company newsletters and magazines)
• Events (e.g., news conferences, seminars, trade
shows, contests)
• Sponsorships (e.g., sports, cultural and causes)
• News (e.g., press releases and press conferences)
• Speeches (e.g., company executives field questions
from the media or give talks at trade associations or
sales meetings)
• Public Service Activities (e.g., contributing money
and time to good causes)
• Identity Media (e.g., company logos, stationery,
signs, business forms, business cards, buildings,
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uniforms, and
dress codes)
Decisions in Marketing PR
• Establish objectives (e.g., build
awareness, build credibility, boost sales
force and dealer enthusiasm)
• Choose message—what do you want
to say
• Choose vehicles—how to deliver the
message
• Implement—schedule
• Evaluate results—impact
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