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Chapter 3
Advertising and the Marketing
Process
1
Learning Objectives
Learn how advertising relates to
marketing.
An overview of an IMC planning
process.
Understand advantages and
disadvantages of various forms of
marketing communications.
Review various positioning strategies.
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The Marketing Plan
A Marketing Plan is a Blueprint of Planned Marketing Activity
That Strives to Create a Competitive Advantage for an Individual
Product, a Product Line, or an Idea.
Research Stage
Analyze Marketing Environment
Strategic Stage
Develop Objectives and Strategies
Tactical Stage
Specific Tools Are Selected
Implementation Stage
Coordinate Strategy With Marketing Activities
Evaluation Stage
Assess How Well Objectives Were Achieved 3
Advertising’s Role in the
Marketing Plan (Fig. 3.1)
Advertising is One of Several Marketing Communication Options.
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The Promotional Mix
Advertising
Direct
Mark
Sales
Promotion
Publicity/PR
Personal
Selling
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An Integrated Marketing
Communications Planning Model
Review of marketing plan
Analysis of promotional program situation
Analysis of the communications process
Budget determination
Develop integrated marketing communication program
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An Integrated Marketing Communications Planning Model (cont’d)
Advertising
Direct
Marketing
Advertising
objectives
Direct
Marketing
objectives
Message
strategy
Direct
Marketing
strategy
Sales
promotion
PR/
Publicity
Personal
selling
Sales
Promotion
objectives
PR/publicity
objectives
Personal
Selling
objectives
Sales
Promotion
strategy
PR/publicity
strategy
Personal
Selling
strategy
Media
strategy
Integrate & implement marketing communications strategies
Monitor, evaluate, and control integrated marketing communications program
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EXH 5-9
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Allocation of Advertising and Promotional
Budgets (in percentages)
Year
1976
1986
1996
Media Advertising
42
34
24
Trade Promotions
39
40
50
Consumer Promotions
19
26
26
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Advertising: Advantages
Ability to control message
Cost effective way to reach a large
target market
Ability to create images and differentiate
brands
Can sometimes strike responsive
reaction from customers
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Advertising: Disadvantages
High costs of producing and placing ads
Difficult to determine effectiveness
Credibility problems
Clutter
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Sales Promotion: Advantages
Provides extra incentive to purchase
product
Way to appeal to price sensitive
consumer
Can generate extra interest in ads
Easier to measure efforts
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Sales Promotion: Disadvantages
Often only has short term impact
Often abused
Can lead to promotional wars
Often does not contribute to brand
image
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Publicity/PR
Advantages
-- Credibility
-- Low cost way to communicate
Disadvantages
-- Lack of control
-- Difficult to get media cooperation
-- Can be negative
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Personal Selling: Advantages
Communication flexibility
Can communicate complex information
Can target to specific markets and
customers
Direct Feedback
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Personal Selling: Disadvantages
High cost per contract
Expensive way to reach large number of
customers
Difficult to communicate uniform
message
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Direct Marketing: Advantages
Changes in society have made
consumers receptive to direct-marketed
products
Allows for more selectivity and target
marketing
Can customize message
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Direct Marketing: Disadvantages
Consumers and businesses receive too
much unsolicited direct mail and phone
calls
Image problems for direct-marketed
products
Clutter problems
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Breakdown of Spending on
Event Sponsorship
Where they spend
How much they spend (in
billions)
$6
6%
8%
$5
$4
$3
9%
67%
10%
Sports
Cause Mktg.
Music
Arts
Festivals
$2
$1
4.705.00
4.20
3.70
3.30
2.80
2.50
2.10
1.75
$0
88 89 90 91 92 93 94 95 96
Most Common Reasons
Marketers Sponsor Events
1.
2.
3.
4.
5.
6.
7.
8.
Increase awareness of company or product name.
Identify with a particular lifestyle.
Differentiate product from competitors.
Enhance commitment to community or ethnic
group.
Entertain key clients; business-to-business
marketing.
Create merchandising opportunities.
Shape or reinforce the public’s perception of a
product’s attributes
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Affect the bottom line.
How to measure the
effectiveness of sponsorship
(DDBNeedham)
Persuasion Impact =

(Strength of the Link) x (Duration of the
Link) x { (Gratitude Felt due to the Link) +
(Perceptual Change due to the Link)}
Strength of the link = % of the target who
recognize the link between the sponsoring
brand and the event or organization
 Gratitude = “I feel I am contributing to the event
by buying the sponsoring brands”

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Product Differentiation
A Competitive Marketing Strategy Designed to
Create Product Differences in the Eyes
of the Consumer.
Tangible Differences
Intangible Differences
Product Features, Color, Size,
Quality of Performance,
Options or Price
Image That Implies Difference
such as Status, Enjoyment or
Masculinity
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Positioning Guidelines
Marketers can position a product, service, or
idea in the following ways:






By attribute (Pentium III offers 3-dimensional
graphics)
By price (Wal-Mart means value)
By its ability to surpass the competition (Ford beats
Chevy)
By application (Tylenol Flu is for flu attacks)
By product user (TeenPeople is the favorite
magazine of high school students)
By product class (Carnation Instant Breakfast is a
breakfast food)
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Review
Learn how advertising relates to
marketing.
An overview of an IMC planning
process.
Understand advantages and
disadvantages of various forms of
marketing communications.
Review various positioning strategies.
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