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A FRAMEWORK for
MARKETING MANAGEMENT
Chapter 16
Managing
Mass
Communications
Kotler
Keller
Cunningham
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?
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Profile: Canadian Marketing Excellence
DDB CANADA
• In 2005, DDB Canada was
recognized as Canada’s most
creative communications
agency (8th consecutive
award) at the Marketing
Awards
• Other prizes won included the
Cannes International
Advertising Festival, Canadian
Marketing Association (CMA)
“Best of the Best” awards
• Started in Vancouver 1969,
DDB pursues excellence in all
they do
• Offers best-in-class integrated
services
• Clients include Imperial Oil,
Johnson & Johnson, and
Mountain Equipment Co-op
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Advertising
Any paid form of
non-personal presentation
and promotion of ideas, goods, or
services by an identified sponsor
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Figure 16.1 The Five Ms of Advertising
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Advertising Objectives
Informative
advertising
Persuasive
advertising
Reminder
advertising
Reinforcement
advertising
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Deciding on the Advertising Budget
Product life cycle stage
Market share and consumer base
Competition and clutter
Advertising frequency
Product substitutability
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Developing the Advertising Campaign
• Message generation and evaluation
• Creative development and execution
• Social responsibility review
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Deciding on Media
• Step 1: Decide on reach, frequency, and
impact
• Step 2: Choose among media types
• Step 3: Select specific media vehicles
• Step 4: Decide on media timing
• Step 5: Decide on geographical media
allocation
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Media Selection
• Reach
• Frequency
• Impact
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Table 16.1 Choosing Major Media Types
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Newspapers
Television
Direct mail
Radio
Magazines
Outdoor
•
•
•
•
•
Yellow Pages
Newsletters
Brochures
Telephone
Internet
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Newspapers
Advantages
• Flexibility
• Timeliness
• Good local market
coverage
• Broad acceptance
• High believability
Disadvantages
• Short life
• Poor reproduction
quality
• Small pass-along
audience
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Television
Advantages
• Combines sight,
sound, and motion
• Appealing to
senses
• High attention
• High reach
Disadvantages
• High absolute cost
• High clutter
• Fleeting exposure
• Less audience
selectivity
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Direct Mail
Advantages
• Audience selectivity
• Flexibility
• No ad competition
within medium
• Personalization
Disadvantages
• Relatively high cost
• Junk mail image
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Radio
Advantages
• Mass use
• High geographic
and demographic
selectivity
• Low cost
Disadvantages
• Audio presentation
only
• Lower attention than
television
• Non-standardized
rate structures
• Fleeting exposure
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Magazines
Advantages
• High geographic and
demographic selectivity
• Credibility
• Prestige
• High-quality production
• Long life
• Good pass-along
readership
Disadvantages
• Long lead time
• Some waste circulation
• No guarantee of position
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Outdoor
Advantages
• Flexibility
• High repeat
exposure
• Low cost
• Low competition
Disadvantages
• Limited audience
selectivity
• Creative limitations
• Fleeting exposure
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Yellow Pages
Advantages
• Excellent local
coverage
• High believability
• Wide reach
• Low cost
Disadvantages
• High competition
• Long lead time
• Creative limitations
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Newsletters
Advantages
• Very high selectivity
• Full control
• Interactive
opportunities
• Relatively low cost
Disadvantages
• Costs could run
away
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Brochures
Advantages
• Flexibility
• Full control
• Dramatization of
messages
Disadvantages
• Overproduction
could lead to
runaway costs
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Telephone
Advantages
• Many users
• Opportunity to give
a personal touch
Disadvantages
• Relative high cost
unless volunteers
are used
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Internet
Advantages
• High selectivity
• Interactive
possibilities
• Relatively low cost
Disadvantages
• Relatively new
media with a low
number of users
in some countries
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Variables Affecting Choice of Media
Target market’s
media habits
Product
characteristics
Message
characteristics
Cost
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Place Advertising
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Billboards
Public spaces
Product placement
Point-of-purchase
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Measures of Audience Size
• Circulation
• Audience
• Effective
audience
• Effective
ad-exposed
audience
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Deciding on Media Timing and Allocation
Macro-scheduling
problems
Micro-scheduling
problems
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Media Schedule Patterns
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Continuity
Concentration
Flighting
Pulsing
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Evaluating Advertising Effectiveness
Communication Effect Research
1. Consumer feedback
2. Portfolio tests
3. Laboratory tests
Sales-Effect Research
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Sales Promotion
Collection of incentive tools, mostly
short term, designed to stimulate
quicker or greater purchase
of particular products or services
by consumers or the trade
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Sales Promotion Tactics
Consumer-directed
• Samples
• Coupons
• Cash refund offers
• Price offs
• Premiums
• Prizes
• Patronage rewards
• Free trials
• Tie-in promotions
Trade-directed
• Price offs
• Allowances
• Free goods
• Sales contests
• Spiffs
• Trade shows
• Specialty advertising
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Using Sales Promotions
Establish objectives
Select tools
Develop program
Pretest
Implement and control
Evaluate results
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Considerations for
Sales Promotion Programs
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Size of incentive
Conditions for participation
Duration
Distribution vehicle
Timing
Total sales-promotion budget
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Events and Experiences
• Broaden and deepen brand relationship with
target market
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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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Major Event Decisions
Choose event opportunities
Design programs
Create event
Measure activities
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Public Relations Functions
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Press relations
Product publicity
Corporate communications
Lobbying
Counselling
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Marketing Public Relations Functions
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Assist in product launches
Assist in repositioning mature products
Build interest in a product category
Influence specific target groups
Defend products
Build corporate image
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Major Tools in Marketing PR
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Publications
Events
Sponsorships
News
Speeches
Public service
activities
• Identity media
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Steps in Marketing PR
Establish objectives
Choose messages
and vehicles
Implement
and evaluate
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For Discussion
What are some of your
favourite TV ads? Why?
How effective are the
message and creative strategies
used in the ads?
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