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Bmgt 411 chapter_16

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Bmgt 411 chapter_16

  1. 1. BMGT 411: Chapter 16 Managing Mass Communications
  2. 2. Chapter Questions • What steps are required in developing an advertising program? • How should sales promotion decisions be made? • What are the guidelines for effective brand-building events and experiences? • How can companies exploit the potential of public relations and publicity?
  3. 3. Figure 16.1 The Five M’s of Advertising
  4. 4. Media Consumption
  5. 5. Developing an Advertising Program (Campaign) • Advertising: Any paid form of non personal presentation and promotion of a product by an identified sponsor 1.Setting the Advertising Objective: a specific communications task and achievement level to be accomplished with a specific audience in a specific period of time • Information Advertising: Create brand awareness and knowledge of new features of existing products • Persuasive Advertising: Aims to create a liking, preference, conviction, and purchase of a product or service • Reminder: Aims to stimulate repeat purchase of a product or service • Reinforcement: Convinces current customers they made the right choice
  6. 6. 2. Deciding on the Advertising Budget • Stage of PLC: New products need higher budgets to increase awareness • Market Share: Brands with high market share require less support • Competition and clutter: Brands must advertise more heavily to be heard among competitors and over clutter • Frequency: The number of repetitions needed to put the brands message across to consumers • Product Substitution: Brands in less differentiated product classes (Beerm Soft Drinks) require heavy advertising to establish a unique image
  7. 7. 3. Developing the Advertising Campaign • Starts with a Creative Brief • Creative brief serves as a guide on how to develop creative • Key messages • Product positioning • Competitive atmosphere • Target audience • Media recommendation
  8. 8. 4. Choosing Media • Choosing Media: Finding the most cost effective media to deliver the desired number and type of exposures to the target audience • Reach: The number of different persons or households exposed to a particular media schedule at least once during a specific time period • Frequency: The number of times within a specified time period that an average person or household is exposed to the message • GRP (Gross Ratings Point) = Reach x Frequency • If you reached 50 people 5 times during a campaign, the GRP’s would be 250
  9. 9. 4. Choosing Media • Media Schedule Patterns • Continuity: Ads appear evenly throughout campaign • Concentration: Spending all ad dollars in one season - example - holiday • Flighting: Advertising during a period, taking time off, then advertising again • Pulsing: Advertising consistently at lower rates, reinforced by periods of heavier activity
  10. 10. 4. Choosing a Media Type Medium # Options TV 4,494 local TV stations, regional/national/ international cable networks Radio 26,980 broadcast, streaming or satellite stations Magazines 24,744 consumer or business magazines Newspapers 1,397 local newspapers Internet 233,000,000 registered domain names Mobile 3,000,000 mobile-ready websites
  11. 11. 4. Choosing the Media Type
  12. 12. 4. Choosing the Media Type
  13. 13. 4. Choosing a Media Type
  14. 14. 4. Choosing a Media Type 75% 56% 38% 19% 0% 6am-9am 9am-5pm 5pm-8pm 8pm-11pm 11pm-2am Radio TV Newspaper Magazines Online News Social Media Online Entertainment Online shopping Movies on TV Set Online Games
  15. 15. Newspaper Advertising • Although readership is down, print ads are still expensive
  16. 16. Volkswagen Print Ad http://youtu.be/FhbkqFdKnP8
  17. 17. Coca Cola Print http://youtu.be/hgZ0KLWpicc
  18. 18. New York Times Digital Subscriptions
  19. 19. Television Media Buying 1. National Broadcast TV: Spot shown everywhere, during a specific program 2. Spot TV: A local spot bank for regional brands to advertise during key programs. Less expensive than a national buy 3. National Cable: Spots delivered nationwide on specific channels 4. Local Cable: Can target down to the zip code, high regional messages with a lower cost
  20. 20. 4. Television Media Buying Activities done on Tablets while watching TV % of Tablet Owners 13+ 13+ 13-17 18-34 35-54 55+ Male Female eMail 61% 52% 58% 65% 65% 58% 64% Social Networking 47% 62% 50% 47% 33% 44% 50% Info on TV show viewing 37% 37% 36% 38% 34% 39% 34% Check Sport Scores 34% 34% 36% 34% 32% 44% 24% Look for info on ad saw on TV 27% 29% 28% 27% 22% 25% 28% Look for info on deals from ad 22% 22% 29% 21% 14% 21% 24% saw on TV
  21. 21. Television Media Buying Weekly Time Watching Video by Age (Hours:Minutes) P2+ K2-11 T12-17 A18-24 A25-34 A35-49 A50-64 A65+ Traditional TV (Live + TSV) 33:43 24:09 22:14 25:34 29:55 34:16 42:16 47:13 Time Shifted TV (TSV) only 2:34 1:57 1:31 1:40 3:18 3:19 3:06 1:53 Video on the Internet (PC/ Laptop) 0:30 0:08 0:23 0:51 0:54 0:40 0:25 0:12 Video on Mobile Phone 0:08 NA 0:14 0:14 0:15 0:07 0:02 <0:01
  22. 22. Radio Advertising • Drive Time is the heaviest listener time • AM Drive - 6 - 9 am • PM Drive - 4 - 7 pm • Share of total U.S. radio listening for Pandora in September 2014 was 9.06%, an increase from 7.77% at the same time last year • Listener Hours: Total listener hours grew 25% to 4.99 billion for the third quarter of 2014, compared to 3.99 billion for the same period last year. • Active Listeners: Active listeners grew 5.2% to 76.5 million at the end of the third quarter of 2014, compared to 72.7 million from the same period last year.
  23. 23. 5. Measuring Sales Impact of Advertising • Share of Advertising Expenditure: Amount spent on advertising • Share of Voice: Proportion of company advertising a product compared to all advertising of that product • Share of mind and heart: Space earned by advertising in a consumers mindset - how often they think of you or consider you3 • Share of market: Or Market share, your % of sales compared to competitors
  24. 24. 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.
  25. 25. Consumer-Directed Sales Promotion Tactics • Samples • Coupons • Cash refund offers • Price offs • Premiums • Prizes • Patronage rewards • Free trials • Tie-in promotions
  26. 26. Coupon Trends
  27. 27. Events and Sponsorships
  28. 28. 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
  29. 29. Public Relations • Launching new products • Public relations tools: – News, speeches • Repositioning a mature product – Special events – Mobile marketing – Published materials • Building interest in a product category – Website – Public service activities • 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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