Summary of Textbook chapter to meet class requirement

1. 1
Managing Advertising, Promotions,
Experiences & PR Chapter 18
Benedicto “Brad” Cid Jr
Ateneo Graduate School of Business
University of the Philippines
Psychology Applied
CoSLA
Version
2.0

2. • Learning Objectives
• Advertising
(programming you to buy)
• Promotions
(incentivizing you to buy now)
• Events/Experiences
(sharing the feeling)
• Public Relations
(being your friend)
Outline
Psychology Applied

3. 1. Steps in developing an advertising
program
2. Making sales promotion decisions
3. Guidelines for brand-building events
and experiences
4. The potential of public relations and
publicity
Chapter 18
Learning Objectives

4. 1. Any paid form of
2. Nonpersonal presentation
and promotion of ideas,
goods, or services
3. By an identified sponsor
ADVERTISING
Programming You to Buy

5. Steps in Developing Advertising Program
5 Ms of Advertising
MISSION
Sales goals
Advertising
objectives
MONEY
Lifecycle stage
Mkt share &
Consumer base
Competition &
Clutter
Ad frequency
Product
substitutability
MESSAGE
Generation
Evaluation &
selection
Execution
Social responsibility
review
MEDIA
Reach, frequency,
impact
Major media types
Specific media
vehicles
Media timing
Geographical media
allocation
MEASUREMENT
Communication
impact
Sales impact

6. SACRED HEART OF
MALOLOS
Advertising Project Case

7. • Advertising Objectives
– Convince target that SHH leads in providing new
services
• Money
– P300k per year
Sacred Heart Malolos

8. • Message
– No need to go to Manila, SHH has what you need
• Media
– Highway billboard
– Posters in MAB
• Measurement
– Census and revenue of services
Sacred Heart Malolos

9. Examples 1

10. Examples 2

11. Examples 3

12. The M of Measurement
Stages in Sales Impact of
Advertising
Share of expenditures
Share of mind & heart
Share of voice
Share of market

13. Steps in Developing Advertising Program
5 Ms of Advertising
MISSION
Sales goals
Advertising
objectives
MONEY
Lifecycle stage
Mkt share &
Consumer base
Competition &
Clutter
Ad frequency
Product
substitutability
MESSAGE
Generation
Evaluation &
selection
Execution
Social responsibility
review
MEDIA
Reach, frequency,
impact
Major media types
Specific media
vehicles
Media timing
Geographical media
allocation
MEASUREMENT
Communication impact
Sales impact

14. • Circa 2003
• Poor tasting product
• High first purchase,
poor continued use
• Despite promise to
help avoid brain
defects in baby
Measurement Matters
The Terrible Tasting Milk

15. • Advertising very feature
focused (x number of
vitamins and minerals etc)
• Promised healthy brain
development of fetus
• Research =>
– poor engagement
– weak commitment to daily drinking
• Needed to build emotional
commitment
Measurement Matters
Weak Emotions About Brand

16. • Identified the real benefit for many women
– If mom drank Anmum daily, she has done her best (so
whatever happens at birth, its not her fault)
• New TVC built around first time mom and
dad see baby on ultrasound
• Highly emotional
• Moms reminded they hoped for perfect
babies
• And they could still do something about it
(sacrifice and drink the yukky milk daily)
• Result - offtake and shipments doubled
immediately
Focused on Real Benefit

17. Steps in Developing Advertising Program
5 Ms of Advertising
MISSION
Sales goals
Advertising
objectives
MONEY
Lifecycle stage
Mkt share &
Consumer base
Competition &
Clutter
Ad frequency
Product
substitutability
MESSAGE
Generation
Evaluation &
selection
Execution
Social responsibility
review
MEDIA
Reach, frequency,
impact
Major media types
Specific media
vehicles
Media timing
Geographical media
allocation
MEASUREMENT
Communication impact
Sales impact

18. • Circa 1981 Vicks Formula 44 cough
syrup relaunch
• As expectorant instead of anti-
tussive
• Ad needed to clearly position for wet
not dry coughs
• First ad to open with really wet
cough sound effect, from PGH
• Mercury branch transfers +40%
immediately
The M of Message
Tight Targeting Critical

19. 1. Mostly short-term incentive tools
2. To get quicker or greater purchase
SALES PROMOTIONS
Incentives to Buy Immediately

20. (1) Set objectives
(2) Choose tools
(3) Develop program
(4) Pretest program
(5) Execute and control
(6) Evaluate
Decisions on Sales Promotions
What to Do

21. (1) Set objectives
(1) In Sarisari A, get 70% visible distribution in two
months
(2) Choose tools
(1) Offer retailers a reliable opportunity for substantial
extra profit in exchange for first stocking of Rubie II
(3) Develop program
(1) Rubie II first in selling order to ensure attention
(2) 2 free for every hanging card of 12
Rubie II Launch Distribution Promotion
Get in Stores in Time for Ad Break

22. (4) Pretest program
(1) Ran in selected territories 2 weeks before launch to verify
attractiveness and fine tune targets
(5) Execute and control
(1) Run for over Months 1-4
(2) Free goods to be allocated per quota
(3) Daily sales and inventory reports to track performance
(6) Evaluate
(1) Tracked number of Sarisari A stocking, % outlets sold
versus offered, sales volume
(2) Concluded successful, met distribution targets
Rubie II Launch Distribution Promotion
Get in Stores in Time for Ad Break

23. 1. Be part of personally relevant moments of
target
2. Thus deepening your relationship with your
target
Events & Experiences
Sharing the Feeling

24. (1) Non-advertising
programs which
promote a brand
(2) Can affect
public awareness
at lower cost than
advertising
(3) Often more
credible
Public Relations
Being Your Friend

25. Publications
Events
News
Community affairs
Identification media
Lobbying
Social responsibility
Public Relations Tools
PENCILS

26. Red Cross Tie-up

27. For Cancer Week

28. • Learning Objectives
• Advertising
(programming you to buy)
• Promotions
(incentivizing you to buy now)
• Events/Experiences
(sharing the feeling)
• Public Relations
(being your friend)
Outline
Psychology Applied

29. 29
Managing Advertising, Promotions,
Experiences & PR Chapter 18
Benedicto “Brad” Cid Jr
Ateneo Graduate School of Business
University of the Philippines
Psychology Applied
CoSLA
Version
2.0