Major Decisions in Advertising This CTR corresponds to Figure 15-1 on p. 451 and relates to the material on pp. 451-460. Instructor’s Note: This CTR and Notes provide an overview of advertising decisions. Each decision area is covered in greater detail on subsequent CTRs. Major Decisions in Advertising Setting Objectives. Advertising objectives are specific communications tasks to be accomplished for a specific target audience during a specified time period. Advertising objectives can be to inform (build primary demand), persuade (selective demand), or remind (brand loyalty). Advertising objectives are often linked to specific sales objectives. Budget Decisions. Advertising budgets are set for each product consist with the advertising objectives. The details of budget decisions are covered in greater detail on the following CTR. Message Decisions. Advertisers must construct their messages carefully to reach target markets. The details of message decisions are covered in greater detail on a subsequent CTR. Media Decisions. In selecting media for ads, advertisers must consider the several factors to reach consumer when, how, and how often it takes to reach promotional objectives. The details of media decisions are covered in greater detail on a subsequent CTR. Campaign Evaluation. Measures of communication effects and sales effects should be employed. Discussion Note: You might wish to tell students of the controversy involved in measuring campaign effectiveness. Traditionally, advertisers measured effectiveness in terms of recall or recognition. Management wants a behavioral change in purchases. Marketers who successfully merge the two have a bright career ahead of them.
Setting the Advertising Budget This CTR relates to the discussion on pp. 452-453. Budget Decisions Advertising budgets are set for each product consist with the advertising objectives. To implement objectives, budgets must be set in consideration of the products position in terms of: Stage in the Product Life Cycle. New product usually require larger advertising budgets to build awareness and induce product trial. Mature brands may have large dollar amounts in their budgets, but are lower in terms of advertising as a ratio of sales. Market Share. High share products need more advertising as a percent of sales than do low-share brands. Competition and Clutter. Highly competitive markets with high spending rivals require more advertising expenditures than other markets. Advertising Frequency. The greater the frequency needed to reach the target consumer, the higher the advertising budget. Product Differentiation . Brands that closely resemble other brands in a product class (like soft drinks) require high advertising budgets to create product differentiation.
Advertising Strategy Selecting Advertising Media This CTR relates to the discussion on pp. 457-460. Selecting Advertising Media In selecting media for ads, advertisers must consider the factors that will influence reception of the message. Not all such factors are under the control of the marketer. Of those that are, the following concepts are important: Reach . Reach is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time. Frequency . Frequency is a measure of the how many times the average person in the target market is exposed to the message. Media Impact . Impact refers to the qualitative value of a message exposure through a given medium. Media Vehicles . Vehicles are specific media within a general category. Thus, “The Tonight Show” is a media vehicle on television, whereas a single magazine, The Economist , is a media vehicle in magazine print media. Media Timing . Timing involves the how and when of presenting a campaign. Advertisements should support strategic decisions based upon such factors as peak seasons and demand. Also, the pattern of the ads while shown must be considered: Continuity. This schedules ads evenly within a given period. Pulsing. This schedules ads unevenly within a given period.
Press Relations is an on-going process of establishing and maintaining good relations with the news media reporters and editors to help place newsworthy information about company products or objectives in their vehicles. Product Publicity. Product Publicity seeks news coverage of specific products usually in conjunction with other promotional efforts. Public Affairs/ Investor Relations. Public Affairs and Investor Relations involves creating and managing internal and external communications promoting understanding the of company and its objectives. Counseling of management on public issues may be included in corporate communications functions in some companies. Lobbying. Lobbying involves dealing with legislators and government administrators. Discussion Note: Lobbying has justly earned a bad reputation for the “special interest” favors awarded some companies. But it is also true that a great deal of lobbying is ethical and fair -- a point not typically found in the popular press. Also, federalism is designed precisely so that “special interests” can be taken into consideration. Not all “special interests” are bad for society as a whole. What is Public Relations? This CTR relates to the material on pp. 468-469.
Major Public Relations Tools This CTR relates to the material on pp. 469-471. Key tools of Public Relations include: News and Speeches. Finding or creating favorable news stories about the company or products. Giving talks at trade association meetings or sales meetings. Special Events. Special Events consist of public service activities sponsored and controlled by public relations in-house. Written and Audiovisual Materials. Materials include written information for reporters, and audio-visual information such as slide, sound programs, and videos on corporate identity. Corporate spokespersons also make public speeches to promote the views important to the company. Public Service Activities. Public Service Activities include contributions of time and money for community projects and programs. Discussion Note: Many companies donate land and equipment to towns and cities for parks and recreational areas as part of PR.
Advertising, sales promotion & public relation (principles of marketing)