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This document provides an overview of key concepts related to advertising, including the five M's of advertising (mission, money, message, media, and measurement), advertising objectives, factors to consider in setting an advertising budget, and developing an advertising campaign. It discusses generating the advertising message, evaluating creative executions, and considering legal and social issues. Key elements of an advertising strategy like purpose, target, promise, support, and ROI (relevance, originality, impact) are also defined.
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- 1. Managing Mass Communications Advertising, SalesPromotions, Events and Experiences, and Public Relations DESINGED BY Sunil Kumar Research Scholar/ Food Production Faculty Institute of Hotel and Tourism Management, MAHARSHI DAYANAND UNIVERSITY, ROHTAK Haryana- 124001 INDIA Ph. No. 09996000499 email: skihm86@yahoo.com , balhara86@gmail.com linkedin:- in.linkedin.com/in/ihmsunilkumar facebook: www.facebook.com/ihmsunilkumar
- 2. What is Advertising? Advertisingis any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-2
- 3. The Five M’sof Advertising • Mission—setting goals and advertising objectives • Money—contingent upon stage in PLC, market share, consumer base, competitions, advertising frequency, product substitutability. • Message—generation, evaluation, selection, execution, social-responsibility. • Media—reach, frequency, impact, types, vehicles, timing, geographic scope • Measurement—communication impact, sales impact Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-3
- 4. Advertising Objectives • Informative—tocreate brand awareness and knowledge of new products or new features of existing products • Persuasive—to create liking preference, conviction, and purchase of a product or service. • Reminder—to stimulate repeat purchase of products and services • Reinforcement—to convince current purchasers that they made the right choice. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-4
- 5. Factors to Considerin Setting an Advertising Budget • Stage in the product life cycle —new products (large advertising budgets to build awareness and to gain consumer trial) —established brands (lower advertising budgets, measured as a ratio to sales) • Market share and consumer base —high-market-share brands (less advertising expenditure as a percentage of sales to maintain share) —build share by increasing market size (requires larger expenditures) • Competition and clutter —market with a large number of competitors and high advertising spending (brand must advertise more heavily to be heard). • Advertising frequency —number of repetitions needed to put across the brand’s message to consumers impacts advertising budget • Product substitutability —brands in less-well-differentiated or commodity-like product class (beer, soft drinks, banks, and airlines) require heavy advertising to establish a differential image. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-5
- 6. Developing the Advertising Campaign •Message generation and evaluation —what the ad attempts to convey about the brand • Creative development and execution —how the ad expresses the brand claims • Legal and social issues Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-6
- 7. PURPOSE OF ADVERTISING •IN ORDER TO STATE THE PURPOSE: • MUST DECIDE THE PRECISE ACTION WE WANT THE TARGET AUDIENCE TO TAKE AFTER WATCHING, READING, OR LISTENING TO THE AD • PURPOSE IS: • TO PERSUADE SOMEONE TO DO SOMETHING • MUST DECIDE • WHO • WHAT TO DO 7
- 8. PURPOSE OF ADVERTISING-CONTINUED •ADVERTISING IS THE CAUSE • BEHAVIOR IS THE EFFECT • BUY, USE, WRITE, CALL, VISIT DEALER, ORDER BY PHONE • COMPLETE STATEMENT INCLUDE BUSINESS SOURCE • KEY TO MARKETING DEFINITION IS SUBSTITUTABILITY • WHICH PRODUCTS MIGHT THE BRAND BE INTERCHANGEABLE • SET OF PRODUCTS MIGHT BE SMALLER OR LARGER THAN THE SET OF PRODUCTS BY WHICH THE CATEGORY IS TRADITIONALLY DEFINED 8
- 9. BARRIER THEORY • CANANY OF THE PROMOTIONAL ELEMENTS OVERCOME THESE BARRIERS IN THE CONSUMER DECISION PROCESS? • AWARENESS • ACCEPTANCE • PREFERENCE • SEARCH • SELECTION • USE • SATISFACTION 9
- 10. EXAMPLES OF PURPOSEOF ADVERTISING • PURPOSE OF ADVERTISING IS TO PERSUADE THE AUDIENCE: • TO BUY RUFFLES INSTEAD OF OTHER BRANDS OF POTATO CHIPS • TO USE BISQUICK INSTEAD OF PANCAKE MIX • TO PERSUADE MEMBERS OF THE TARGET AUDIENCE TO COME INTO THE SHOWROOM FOR A TEST DRIVE TO THE AUDI 80/90, RATHER THAN OTHER HIGH-LINE SPORTS SEDANS 10
- 11. TARGET • THE GROUPOF PEOPLE WHO ARE THE BEST PROSPECTS FOR THE ADVERTISER’S BRAND • TO WHOM THE ADVERTISING WILL BE ADDRESSED • NEED A PERSON TO WRITE TO: • BUSINESS TRAVELLERS WHO ARE LIKELY TO STAY AT MID-PRICED HOTELS • HEAVY USERS OF CHARCOAL • YOUNG WOMEN WHO HAVE ACNE PROBLEMS • PEOPLE IN THE MARKET FOR AN EXPENSIVE SPORTY EUROPEAN CAR 11
- 12. NEED TO KNOWDEMOGRAPHIC AND PSYCHOGRAPHIC PROFILE • BUSINESS TRAVELLERS WHO ARE LIKELY TO STAY AT A MID-PRICE HOTEL, $45,000 TO $75,000 ANNUAL INCOME. EIGHTY PERCENT ARE MALES. THEY CHOOSE MID-PRICE ACCOMMODATIONS BECAUSE THEY ARE PAYING THEIR OWN WAY, OR BECAUSE THEIR EXPENSE ACCOUNTS ARE LIMITED. THEY WANT BASIC, CLEAN ACCOMMODATIONS WITH A MINIMUM OF HASSLE. THEY ARE FREQUENTLY TIRED, USUALLY INPATIENT, AND ALWAYS CRITICAL. SMALL LUXURIES, SPECIAL RESPECT AND ATTENTION ARE IMPORTANT TO THEM 12
- 13. NEED TO KNOWDEMOGRAPHIC AND PSYCHOGRAPHIC PROFILE--CONTINUED • HEAVY USERS OF CHARCOAL, FATHERS BETWEEN 25 AND 49. MOST OF THEM LIVE IN THE SUBURBS OR SEMIRURAL AREAS. THEY GET A BIG KICK OUT OF BARBECUING FOR FAMILY AND FRIENDS. THEY WANT THE MEAT TO TURN OUT JUST RIGHT 13
- 14. EXAMPLE OF PURPOSEAND TARGET • PURPOSE • TO PERSUADE FREQUENT NEW YORK TO WASHINGTON, DC TRAVELLERS TO TAKE AMTRACK INSTEAD OF A PLANE • TARGET • FREQUENT NEW YORK TO WASHINGTON TRAVELLERS ARE LIKELY TO BE WELL-EDUCATED, WHITE-COLLAR PROFESSIONALS CONDUCTING A DAY’S BUSINESS IN EITHER CITY. THE NEARLY 10,000 PEOPLE WHO FLY DAILY BETWEEN NEW YORK AND WASHINGTON HAVE GROWN ACCUSTOMED TO NO-FRILLS SERVICE, CROWDED SEATING AND “CATTLE CAR” CONDITIONS. THEIR TIME IS AT A PREMIUM AND, DESPITE AIRPORT DELAYS AND TRAVEL TIME TO AND FROM AIRPORTS, THEY BELIEVE PLANES PROVIDE THE SHORTEST TRIP POSSIBLE. SIXTY TO SEVENTY PERCENT ARE MALES 14
- 15. PROMISE • BENEFIT ORREWARD FOR BUYING OR USING THE ADVERTISED BRAND • WHEN I_________. I WILL__________. • THE “I” IN THIS SENTENCE IS THE TARGET AUDIENCE • THE 1ST BLANK REPRESENTS THE PURPOSE OF THE ADVERTISING • THE 2ND BLANK REPRESENTS THE BENEFIT • NUMBER OF PROMISES • SINGLE MINDED OR ONE IN MOST CASES • COMBINATION, RATHER THAN ONE BENEFIT, IF IT DEFINES THE ESSENTIAL NATURE OF THE BRAND (WEIGHT WATCHERS’ ENTREES--REDUCED CALORIES AND GOOD TASTE). 15
- 16. PROMISE IS THEHEART OF THE STRATEGY • THE BENEFIT IS IN THE MIND OF THE CONSUMER, NOT IN THE PRODUCT. PRODUCTS HAVE ATTRIBUTES, NOT BENEFITS • THE BENEFIT IS A FUTURE EXPERIENCE. IT IS AN (SUBJECTIVE) EXPERIENCE PROMISED TO THE CONSUMER BY THE ADVERTISER AS A REWARD FOR BUYING OR USING THE ADVERTISED BRAND • THE BENEFIT IS A CONCLUSION, TO BE DRAWN BY THE CONSUMER FROM THE CAMPAIGN AS A WHOLE. THE PROMISE IS NOT A COPY LINE. THE WORDS USED IN THE STRATEGY MAY OR MAY NOT EVER APPEAR IN THE ADVERTISING 16 ITSELF
- 17. EXAMPLES OF PURPOSEAND BENEFIT • WHEN I TAKE AMTRACK INSTEAD OF THE PLANE FROM NEW YORK TO WASHINGTON, DC (PURPOSE). I WILL BE MORE COMFORTABLE, BETTER TREATED, AND MORE VALUED (BENEFIT) • WHEN I BUY INSURANCE FROM STATE FARM INSTEAD OF FROM SOME OTHER INSURANCE COMPANY (PURPOSE). I WILL KNOW THAT A FRIENDLY STATE FARM AGENT WILL BE AT MY SIDE IF I NEED HELP (BENEFIT) 17
- 18. EXAMPLE OF BENEFITS •PRACTICAL • REWARDS WHICH COME FROM SAVINGS TIME OR MONEY, OR EXPERIENCING GOOD HEALTH • SENSORY • INTERESTING TEXTURE OR DELICIOUS TASTE • SOCIAL • APPROVAL FROM FAMILY OR PEERS • EGO-SATISFACTION • PRIDE IN BEING A GOOD MOTHER, OR FEELING OF ACCOMPLISHMENT FROM 18
- 19. WHEN BENEFITS OCCUR •WHILE THE PRODUCT IS BEING USED • AFTER THE PRODUCT HAS BEEN USED • AS AN INCIDENTAL BY-PRODUCT OF THE PRODUCT’S MAIN EFFECT 19
- 20. BENEFIT MATRIX--POTENTIAL BENEFITS OFREAL CHEESE POTENTIALLY REWARDING EXPERIENCES PRACTICAL IN-USE EXPERIENCE SENSORY SOCIAL EGOSATISFACTION CONVENIENCE; NEW TASTE KIDS CAN HELP FOR ROUTINE THEMSELVES FOODS FAMILY WILL BE GRATEFUL I AM A GOOD MOTHER RESULTS-OFUSE EXPERIENCE STRONG BONES FEEL BETTER OTHERS THINK I LOOK GOOD I AM TAKING GOOD CARE OF MYSELF INCIDENTIALTO-USE EXPERIENCE LOW-COST NUTRITION ADDS VARIETY I AM A GOOD TO PARTY COOK REFRESHMENTS NO MESS 20
- 21. SUPPORT • LENDS CREDIBILITYTO THE ADVERTISER’S PROMISE • SUPPORT REFERS TO EVERYTHING IN THE ADVERTISING THAT LENDS CREDIBILITY TO THE ADVERTISER’S PROMISE • TWO TYPES OF SUPPORT • INTERNAL AND EXTERNAL 21
- 22. INTERNAL SUPPORT • PRODUCTOR INTELLECTUAL FACTS • WHEN I TAKE AMTRACK INSTEAD OF THE PLANE FROM NEW YORK TO WASHINGTON (PURPOSE). I WILL BE MORE COMFORTABLE, BETTER TREATED, AND MORE VALUED (BENEFIT) BECAUSE AMTRACK PROVIDES WIDER SEATS, MORE LEG ROOM, BETTER SERVICE, AND FREEDOM TO MOVE AROUND (SUPPORT) • DEMONSTRATIONS (SHOW BRAND AT WORK) • LITERAL--SUFFER EXPERIENCE RELIEF ON SCREEN • DRAMATIC--PART OF A PLAY--BUD LIGHT 22
- 23. EXTERNAL SUPPORT • SUPPORTFOR THE PURPOSE OR THE PROMISE OF THE ADVERTISING CAMPAIGN THROUGH THE USE OF: • SALES PROMOTION • PUBLIC RELATIONS PROGRAMS • ADVERTISING INTENDED TO ELICIT DIRECT RESPONSE 23
- 24. PROMISE VS SUPPPORT •THE PROMISE IS THE MEANING TO BE DRAWN FROM THE AD. • PROMISE TO THE END • THE SUPPORT IS THE MEANS BY WHICH THAT PROMISE IS CONVEYED. • SUPPORT IS THE MEANS 24
- 25. WHERE TO LOOKFOR SUPPORT • BACKGROUND MUST COME FROM CONSUMERS • PRODUCT TESTING • CONSUMER SURVEYS • USER THEMSELVES (i.e., WRITER OF AD) • MUST BE RELEVANT TO TARGET • MUST OPERATE IN A COMPETITIVE WORLD 25
- 26. ROI • RELEVANCE • MESSAGE MUSTBE RELEVANT--TO PRODUCT, TARGET, AND SPECIFIC BEHAVIOR ADVERTISER INTENDED TO PROMOTE • ATTRIBUTE IS NOT SUPPORT FOR PROMISE UNTIL CUSTOMER UNDERSTANDS HOW ATTRIBUTE MAKES BRAND A BETTER SATISFIER OF NEEDS • ORIGINALITY • NEEDS TO BE ORIGINAL TO ATTRACT ATTENTION--BREAK THE PATTERN • IMPACT • ABILITY TO BREAK THROUGH INDIFFERENCE AND FOCUS ATTENTION UPON MESSAGE THE ADVERTISEMENT IS INTENDED TO CONVEY • INTRUSIVENESS--TWO SOURCES: MEDIA AND STRUCTURE OF ADVERTISING MESSAGE--ELEMENT OF SURPRISE 26
- 27. LEGS • IMPACT OFAN INDIVIDUAL ADVERTISEMENT OR LONG-TERM CAMPAIGN • IDEA MAY YIELD EFFECTIVE VARIATION--LONG WAY • JOE GREEN COMMERCIAL 27
- 28. BRAND PERSONALITY • DEFINTION •CONSISTENCY OF TRAITS (DRESS, SPEECH, LOOKS, HABITS, TRAITS THAT GO TOGETHER IN A MORE-ORLESS COHERENT WAY) AND PREDICTABILITY (CONSISTENCY OVER TIME) • BRAND • SET OF ENDURING CONSUMER PERCEPTIONS WHICH FORMS A BASIS FOR EXPECTATION OF BRAND BENEFITS • INTERNALLY CONSISTENT, TRAITS MUST FIT TOGETHER, PACKAGE, PRICE, LOOK, SOUND, SMELL, SIZE, NAME, COLOR, SHAPE--MUST HAVE A SINGLE THEME 28
- 29. BRAND PERSONALITY--CONTINUED • BRANDPERSONALITY • SEPARATES THE BRAND FROM ITS COMPETITORS • PREDICTS THE FUTURE EXPERIENCE WITH THAT BRAND • ROLE OF ADVERTISING • BECOMES PART OF THE IMAGE AND TELL WHAT THE BRAND IS • BUSH BEER--HONEST, RUGGED, MANNLY • STATE FARM INSURANCE--STRAIGHT-FORWARD, WARM, A GOOD NEIGHBOR • METROLINER--CIVILIZED, INVITING, COMFORTABLE, CLEAN, DEPENDABLE, SAFE 29
- 30. MEDIA • MEDIA • WHATMEDIA WILL MATCH THE PURPOSE OF THE ADVERTISING? • C.P.M. (COST PER THOUSAND IMPRESSIONS) • WHAT MEDIA WILL DELIVER THE MESSAGE TO THE TARGET AT THE LOWEST POSSIBLE COST? • WHAT IS THE AVAILABILITY, REACH AND FREQUENCY, AND NEGOTIATED COST PER THOUSAND IMPRESSIONS THAT THE ADVERTISER CAN SPEND WHICH WILL ACHIEVE THE PURPOSE--TO REACH THE TARGET, COMMUNICATE BENEFIT(S) AND SUPPORTING EVIDENCE? 30
- 31. APERTURE • WHEN, WHERE,AND UNDER WHAT CIRCUMSTANCES WILL THE TARGET BE MOST RECEPTIVE TO THE MESSAGE • WHEN THE RELEVANT DECISION GETS MADE • MOTHER’S DAY, FATHER’S DAY, EASTER, CHRISTMAS--ALL INCREASE INTEREST IN PRODUCTS AND SERVICES APPROPRIATE FOR THOSE TIMES • BREAKFAST EATERS THINK ABOUT WHAT TO HAVE FOR BREAKFAST AT BREAKFAST TIME, AND ARE LIKELY TO BE OPEN TO MESSAGE ON MORNING RADIO • PLACE WHERE THE DECISIONS GETS MADE • UNDER WHAT CIRCUMSTANCES THE DECISION 31 GETS MADE
- 32. EXAMPLES OF APERTURE •READING FASHION MAGAZINE, MAY MAKE INTERESTED READER EVEN MORE INTERESTED IN MESSAGES ABOUT EXERCISE, DIET, MAKEUP, OR CLOTHES • MICHELIN PLACED MESSAGES IN WEATHER REPORTS ON CABLE TELEVISION’S WEATHER CHANNEL. THE PREMISE WAS THAT DRIVERS WHO ARE CONCERNED ABOUT THE WEATHER MIGHT ALSO BE CONCERNED ABOUT SECURITY, AND MIGHT THEREFORE BE ESPECIALLY RECEPTIVE TO MESSAGES CONCERNING MICHELIN TIRES 32
- 33. FIVE VENUES • DEFINITION •EACH VENUE REPRESENTS A DIFFERENT RELATIONSHIP BETWEEN THE ADVERTISED PRODUCT AND THE SOURCE OF BUSINESS--PRODUCT (MIGHT BE BOUGHT OR USED INSTEAD) 33
- 34. VENUE ONE • OBVIOUSSUPERIORITY • FOCUS ON THE CUSTOMER--ROI • EXPAND THE CATEGORY • PREPARE FOR COMPETITIVE RESPONSE 34
- 35. VENUE TWO • MARGINALSUPERIORITY • LINKS BETWEEN MINOR PHYSICAL DIFFERENCE AND MAJOR PSYCHOLOGICAL NEEDS CAN PROVIDE DECISIVE COMPETITIVE BENEFITS • BUSH BEER--MINOR PHYSICAL DIFFERENCE BETWEEN BUSH AND OTHER BRANDS IS THE BUSH MOUNTAIN LOGO. WHEN LINKED WITH THE NOTION THAT BUSCH GOES DOWN “SMOOTH AS A MOUNTAIN STREAM.” THE LOGO SYMBOLIZES A COMPETITIVE LEVERAGE FOR THE BRAND 35
- 36. VENUE THREE • PERCEIVEDINFERIORITY • TARGET THOSE WHO INFLUENCE THE BEHAVIOR OF OTHERS • CORRECTION OF ERRONEOUS BELIEFS-UNDERSTANDING WHY THE BELIEFS ARE STILL HELD • THE TARGET IS NEVER EVERYONE, EVEN THOUGH EVERYONE MAYBE WRONG • AMTRACK--UNREALIABLE, UNCOMFORTABLE, AND PROBABLY LATE 36
- 37. VENUE FOUR • REALINFERIORITY • SEEK OUT AND STRIKE AT ANY WEAKNESS OF THE OTHERWISE SUPERIOR BRAND • ADVERTISING MUST STILL PROMISE A COMPETITIVE BENEFIT. COMPETITOR’S WEAKNESS IS NOT ENOUGH • CAN NOT BE SOLD BY ADVERTISING ALONE • THE BEETLE--DEPENDABLE AND ECONOMICAL, AND WOULD NOT GO OUT OF STYLE 37
- 38. VENUE FIVE • PARITY • IMPORT •FOCUS ON A MAJOR BENEFIT THAT THE BRAND DOES NOT PROVIDE BEFORE THE ADVERTISING STARTS-THAN THE BENEFITS BECOMES TIGHTLY LINKED TO THE BRAND AND IT BECOMES A PROPERTY OF THE BRAND • BREAKFAST OF CHAMPIONS • THE NIGHT BELONGS TO MICHELOB • PREEMPT STRATEGY • NON-EXCLUSIVE BENEFIT THAT THE BRAND ALREADY PROVIDES IS MADE THE EXCLUSIVE PROPERTY OF ADVERTISER’S BRAND • LIKE A GOOD NEIGHBOR • WE SELL NO WINE BEFORE ITS TIME • SINGLE MINDED • PERSONALITY 38
- 39. SUMMARY OF ROI FIVEBASIC QUESTIONS • WHAT IS THE PURPOSE OF THE ADVERTISING? • TO WHOM WILL THE ADVERTISING BE ADDRESSED? • WHAT COMPETITIVE BENEFIT WILL BE PROMISED, AND HOW WILL THAT PROMISE BE SUPPORTED? • WHAT PERSONALITY WILL DISTINGUISH THE BRAND? • WHEN, WHERE AND UNDER WHAT CIRCUMSTANCE WILL THE TARGET BE MOST RECEPTIVE TO THE MESSAGE? AND, WHAT MEDIA WILL DELIVER THAT MESSAGE TO THAT TARGET AT THE LOWEST POSSIBLE COST? 39
- 40. Problem--Multiple Vitamin Supplements • Multiplevitamin supplements make up a large, well-established market with a substantial number of different brands and manufacturers. The market also displays a wide variety of marketing approaches even though the products themselves are largely homogeneous in physical characteristics. The differences in marketing approaches revolve around the choice of distribution channel. There are five different marketing approaches that are currently in use. They are: Mail Order—vitamins offered through catalogs mailed directly to prospective consumers. Price to the consumer is low. Proprietary—vitamins sold through retail drug, food, and discount stores and advertised to consumers by the manufacturer. Retail price is high. Ethical—vitamins sold through drugstores and sold to consumers based on recommendations from doctors or druggists. Retail price is high. Door-to-Door—vitamins sold directly to consumers in their home by salespeople of the manufacturer. Price to consumers is high. Private Label—vitamins sold to druggists for resale under the druggist’s own label to consumers. Retail price is low. Even if it is assumed that the product under each marketing approach is the same, the advertising effort will vary substantially because of differences is price and distribution channels. For each marketing approach: 1) will the amount of advertising tend to be high or low compared to the other alternatives? 2) what will be the task of advertising? 40
- 41. Multiple Vitamin Supplements Approach Distribution Price Taskof Advertising Amount of Advertising Mail Order Direct to consumer Low by mail Make direct sales High—no other selling expense Proprietary Through retailers by “pulling” High Develop brand preference through retail outlet High—must overcome lack of retail selling effort Ethical Through retailers/ Physician recommendation, push High Get recommendations and prescriptions Low—narrow target, high retailer margins Door-to-Door Direct to consumer High by personal selling Get sales agent into the home Low—funds devoted to selling commissions Private Label Through retailers Price Comparisons Low Low—margins narrow due to low 41 price
- 42. Media Selection—finding themost costeffective media to deliver the desired number and types of exposures • Reach—the number person or households exposed to a particular media schedule at least once during a specified time period • Frequency—the number of times within the specified time period that an average person or household is exposed to the message • Impact—the qualitative value of an exposure through a given medium • Exposure—reach X frequency = Exposure or gross rating point Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-42
- 43. Choosing Among MajorMedia Types • • • • Target audience and media habits—radio and television are the most effective media for reaching teens Product characteristics—media types have different potential for demonstration, visualization, explanation, believability, and color. Women’s dresses are best shown in color magazines, but high-tech products requiring dynamic presentation such as digital cameras, printers, or cell phone are best demonstrated on television Message characteristics—timeliness and information content will influence media choice. A message announcing a major sales tomorrow will require radio, TV, or newspaper. A message containing a great deal of technical data might require specialized magazines or mailings Cost—television is very expensive, whereas newspaper advertising is relatively inexpensive. What counts is the cost per thousand exposures. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-43
- 44. Marketing Communication Expenditures (2007) Media $ %of Total TV 72.1 32 Radio 20.9 9 Internet 16.7 8 Magazines 23.7 11 Newspaper 45.8 20 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-44
- 45. Comparing Advertising Media Media Media Television Television &cable & cable Direct Direct mail mail NewsNewspaper paper Radio Radio 2004 2004 spend. spend. (billions) (billions) $67.8 $67.8 $52.2 $52.2 $46.6 $46.6 $19.6 $19.6 2-year 2-year % % growth growth Advantages Advantages Disadvantages Disadvantages 25.3% 25.3% Demonstrates well, Demonstrates well, good attention, wide good attention, wide reach reach Expensive in total, Expensive in total, “clutter,” and less “clutter,” and less selective audience selective audience 16.8 16.8 Selected audience, Selected audience, flexible, can flexible, can personalize personalize Relatively costly per Relatively costly per contact, “junk mail,” contact, “junk mail,” hard to retain attention hard to retain attention 5.9 5.9 Flexible, timely, local Flexible, timely, local market market May be expensive, May be expensive, short life, no “pass short life, no “pass along” along” 9.5 9.5 Weak attention, many Weak attention, many Wide reach, low cost Wide reach, low cost different rates, short different rates, short segmented audience segmented audience exposure exposure
- 46. Comparing Advertising Media Media Media Yellow Yellow pages pages Magazine Magazine Internet Internet Outdoor Outdoor 2004 2004 spend. spend. (billions) (billions) $14.0 $14.0 $12.3 $12.3 $6.9 $6.9 $5.8 $5.8 2-year 2-year % % growth growth Advantages Advantages Disadvantages Disadvantages 1.4% 1.4% Reacheslocal Reaches local customers seeking customers seeking purchase info. purchase info. Many competitors Many competitors listed in same place, listed in same place, hard to differentiate hard to differentiate 11.8 11.8 Very targeted, good Very targeted, good detail, good “pass detail, good “pass along” along” Inflexible, long lead Inflexible, long lead times times 40.8 40.8 Ads link to more Ads link to more detailed site, some detailed site, some “pay for results,” “pay for results,” easy to track results easy to track results Hard to compare Hard to compare costs with other media costs with other media 11.5 11.5 Flexible, repeat Flexible, repeat exposure, exposure, inexpensive inexpensive “Mass market,” very “Mass market,” very short exposure short exposure
- 47. Measures of AudienceSize • Circulation—the number of physical units carrying the advertising • Audience—the number of people exposed to the vehicle (if the vehicle has pass-on readership, then the audience is larger than circulation • Effective audience—the number of people with target audience characteristics exposed to the vehicle • Effective ad-exposed audience—the number of people with target audience characteristics who actually saw the ad Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-47
- 48. Evaluating Advertising Effectiveness • • Communication EffectResearch • Consumer feedback method—ask consumer questions (e.g., What is the main message you get from this ad? How likely is it that this ad will influence you to undertake the action?) • Portfolio tests—consumers view or listen to a portfolio of advertisements. Consumer are than asked to recall all the ads and their content, aided or unaided by the interviewer. Recall level indicates an ad’s ability to stand out and to have its message understood and remembered. • Laboratory tests—use of equipment to measure physiological reactions—heartbeat, blood pressure, pupil dilation, galvanic skin response, perspiration—to an ad; or consumers may be asked to turn a knob to indicate their moment-to-moment liking or interest while viewing sequenced material Sales-Effect Research—What sales are generated by an ad that increases brand awareness by 20% and brand preference by 10% Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-48
- 49. Print Ad EvaluationCriteria • • • • Is the message clear at a glance? Is the benefit in the headline? Does the illustration support the headline? Does the first line of the copy support or explain the headline and illustration? • Is the ad easy to read and follow? • Is the product easily identified? • Is the brand or sponsor clearly identified? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-49
- 50. Factors Affecting TimingPatterns • Buyer turnover —rate at which new buyers enter the market (the higher this rate, the more continuous the advertising should be) • Purchase frequency —the number of times during the period that the average buyer buys the product (the higher the purchase frequency, the more continuous the advertising should be) • Forgetting rate —the rate at which the buyer forgets the brand (the higher the forgetting rate, the more continuous the advertising should be) Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-50
- 51. Media Schedule Patterns •Continuity —exposures appear evenly throughout the period • Concentration —spending all advertising dollars in a single period • Flighting —advertising for a period, followed by a period with no advertising, followed by a second period of advertising activity • Pulsing —continuous advertising at low-weight levels reinforced periodically by waves of heavier activity Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-51
- 52. Most Organizations UseOne of These Three Scheduling Strategies 52
- 53. Measuring Sales Impactof Advertising • Share of expenditures • Share of voice—proportion of company advertising of that product to all advertising of that product • Share of mind—percentage of customers who named the competitor in response to the statement, “Name the first company that comes to mind in this industry.” • Share of heart—percentage of customers who name the competitor in responding to the statement, “Name the first company from which you would prefer to buy the product.” • Share of market Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-53
- 54. What is SalesPromotion? 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. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-54
- 55. Sales Promotion Tactics Consumer-directed • • • • • • • • • Samples—offerof a free amount of a product or service. Coupons—certificates entitling the bearer to a stated saving on the purchase of a specific product Cash refund offers—provide a price reduction after purchase Price offs—offers to consumers of saving off the regular price of a product Premiums—merchandise offered at a relatively low cost or free as an incentive to purchase a product Prizes—offers of the chance to win cash, trips, or merchandise as a result of purchasing something Patronage rewards—values in cash or in other forms that are proportional to patronage Free trials—inviting prospective purchases to try a product Tie-in promotions—two or more brands or companies team up on coupons, refunds, and contests to increase pulling power Trade-directed • • • • • • • Price offs—straight discount off the list price on each case purchased during a stated time period Allowances—amount offered in return for the retailer’s agreeing to feature the manufacturer’s products in some way—advertising or special product display Free goods—offers of extra cases of merchandise to intermediaries who buy a certain quantity or who feature a certain flavor or size Sales contests—aims at inducing the sales force or dealers to increase their sales results over a stated period, with money or prizes, etc. Spiffs—sales performance Incentive Trade shows—industry associations organize annual trade shows and conventions Specialty advertising—useful, lowcost items bearing the company’s name and address, etc. 18-55
- 56. Sales Promotion: DoSomething Different to Stimulate Change
- 57. Events and Experiences •$14.9 billion spent on sponsorship in 2007 • • • • • 66% sports 11% tours 5% festivals, fairs 5% arts 10% causes Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-57
- 58. 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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-58
- 59. Using Sponsored Events •Establish objectives (e.g., to identify with a particular target market or lifestyle; to increase awareness of company or product name; to enhance corporate) • Choose events (e.g., naming rights to a sports facilities—Staples) • Design programs (e.g., fund-raisers, anniversary celebrations, art exhibits) • Measure effectiveness (e.g., Supply-side measurement method focuses on potential exposure to the brand by assessing the extent of media coverage; and demand-side method focuses on reported exposure from consumers) Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-59
- 60. Ideal Events • Audienceclosely matches target audience • Event generates media attention • Event is unique with few sponsors • Event lends itself to ancillary activities • Event enhances brand image of sponsor Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-60
- 61. Customer Experience Management: ExperienceProviders • • • • Communications— advertising, public relations, annual reports, brochures, newsletters Identity—names, logos, signage, and transportation vehicles Product presence—product design, packaging, and point-ofsales displays Co-branding—event marketing and sponsorships, alliance and partnerships, licensing, and product placement in movies or TV • • • Environments—retail and public spaces, trade booths, corporate building, office interiors, and factories Electronic media—corporate sites, product or service sites, CD-ROMs, automated e-mail, online advertising, and intranets People—salespeople, customer-service representatives, technical support or repair providers, company spokespersons, and CEOs and other executives Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-61
- 62. Steps in theCEM Framework • • • • • Analyze the customer’s experiential world—gaining insights into socio-cultural context of consumer or the business context of business customers Build the experiential platform—developing a strategy that includes the positioning for the kind of experience the brand stands for, the value proposition of what relevant experience to deliver, and the overall implementation theme that will be communicated Design the brand experience—implementing their experiential platform in the look and feel of logos and signage, package, and retail spaces, in advertising, collaterals, and online Structure the customer interface—implementing the experiential platform in the dynamic and interactive interfaces including face-to-face, in stores, during sales visits, at the check-in desk of a hotel, or the ecommerce engine of a web site Engage in continuous innovation—implementing the experiential platform in new-product development, creative marketing events for customers, and fine-tuning the experience at every point of contact. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-62
- 63. Tasks Aided byPublic Relations • • • • • Launching new products Repositioning a mature product Building interest in a product category Influencing specific target groups Defending products that have encountered public problems • Building the corporate image in a way that reflects favorable on products Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-63
- 64. Public Relations Functions •Press relations—presenting news and information about the organization in the most positive light • Product publicity—sponsoring efforts to publicize specific products • Corporate communications—promoting understanding of the organization through internal and external communications • Lobbying—dealing with legislators and government officials to promote or defeat legislation and regulation • Counseling—advising management about public issues, and company positions and image during good times and bad. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-64
- 65. Major Tools inMarketing PR • Publications (e.g., annual reports, brochures, articles, company newsletters and magazines) • Events (e.g., news conferences, seminars, trade shows, contests) • Sponsorships (e.g., sports, cultural and causes) • News (e.g., press releases and press conferences) • Speeches (e.g., company executives field questions from the media or give talks at trade associations or sales meetings) • Public Service Activities (e.g., contributing money and time to good causes) • Identity Media (e.g., company logos, stationery, signs, business forms, business cards, buildings, uniforms, and dress codes) Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-65
- 66. Decisions in MarketingPR • Establish objectives (e.g., build awareness, build credibility, boost sales force and dealer enthusiasm) • Choose message—what do you want to say • Choose vehicles—how to deliver the message • Implement—schedule • Evaluate results—impact Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-66
- 67. Study Question 1 •In developing an advertising program, marketing managers can make five major decision known as the five Ms. Which of the following in NOT one of the five Ms? A.Minimum B.Money C.Message D.Mission E.Media Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-67
- 68. Study Question 2 •When setting the advertising budget, marketers must consider the________ A.Stage in the product life cycle B.Message details C.Cost of television time D.Buyer’s reaction to the camaign Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-68
- 69. Study Question 3 •The obvious disadvantages of radio include_____________ A.The relative passive nature of the consumer processing B.Consumers’ ability to fast forward through advertisements C.Excessive visual stimulus D.Consumers’ typical commitment to a single radio station E.All of the above Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-69
- 70. Study Question 4 •_________is finding the most costeffective media to deliver the desired number and types of exposures to the target audience. A.Frequency B.Reach C.Media buying D.Media selection E.Weight Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-70
- 71. Study Question 5 •_________is most important when launching new products, flanker brands, or extension of well-known brands. A.Media selection B.Frequency C.Weighted exposures D.Reach E.Impact Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-71
Editor's Notes
- #46 Summary Overview This exhibit compares the characteristics of several types of media. Note how their advantages and disadvantages vary. Key Issues Television provides a way to demonstrate products and is a good medium for getting attention. Television also offers wide reach. Disadvantages include expense, competition among lots of ads--“clutter”--and less-selective audiences Direct mail is very flexible, can be personalized, and is very selective. Disadvantages include expense per contact, “junk mail” image, and difficulty retaining attention. Newspapers offer flexibility, timely placement, and good local market coverage. Some disadvantages are expense (for some markets), short life, and no “pass along” readership. Radio offers wide reach, low cost, and it appeals to highly segmented audiences. Disadvantages include weak attention, short exposure, and varying rates.
- #47 Summary Overview This exhibit compares the characteristics of several types of media. Note how their advantages and disadvantages vary. Key Issues Yellow Pages reach local customers who are seeking purchase information. However, competitors are also listed there and differentiation is difficult. Magazines are very targeted, provide good detail and excellent graphics, have high “pass-along” rates, and long shelf life. Disadvantages include inflexibility and long lead times. Internet. Internet ads link to more detailed website information, some with “pay for results” offers to the advertiser, but it’s difficult to compare total costs with other types of media. Outdoor advertising is flexible, inexpensive, and offers repeat exposures. However, exposure is very short and there is a lack of market segmentation.
- #57 Summary Overview Sales promotion includes those activities other than advertising, publicity, and personal selling that are designed to stimulate interest, trial, or purchase by final customers or others in the channel. Sales promotion typically seeks an immediate response. Key Issues Sales promotions can be launched quickly and lead to immediate results. However, the sales promotion objectives and the particular situation should influence the decision about which type of promotion to use. This exhibit shows three ways that a short-term sales promotion might affect sales. First sales pattern: a firm issues coupons to help clear excess inventory. Some consumers might buy in advance “stockpile” to take advantage of the coupon, but unless they use more of the product, their next purchase will be delayed. Second pattern: consumption increases during a limited-time promotion, but when the promotion ends, sales go back to normal. Third pattern: free samples of a product pull in new customers who like the product and keep coming back. This pattern is the kind of long-term result that is the aim of effective sales promotion. More companies are using a greater percentage of their promotion dollars on sales promotion. Sales promotion spending has grown in mature markets, where tough competition requires extra incentives to sell. Discussion Question: Think about a freestanding coupon insert in a newspaper, or a direct-mail packet containing coupons. In what stage of the product life cycle (introduction, growth, maturity, or decline) are most of these products?