Retailer - scanner data, industry consolidation -MFGs want to break through Loyalty & Sensitivity & proliferation - we did that Frag - more media, more targeted Short-term&Account - US Business, stock mkt, not BE
Father of PR was Edward Bernays, turns out he was Freud’s nephew! Value of some good brand publicity/movie placements: SPECIAL EVENTS: Reeses Pieces sales jumped 85% after E.T. Mumford High sold $1M in school shirts after Beverly Hills Cop CA. Raisin Board paid $25K for bus-stop sign and raisin eating scene in Back to the future. Coke and Pepsi scout out roles full time.
“ Taco Bell Rings in New Age of Publicity Stunts,” Lamons, Marketing News 5/20/96, p. 15. “What a coup! What guts! Such creative thinking!. Frankly I can’t recall a publicity stunt that accomplished so much positive exposure with so little effort and expense.” What did they do? Ran ads on April 1st (Fools day) announcing they had purchased the Liberty Bell to help reduce the deficit, and renaming it the Taco Liberty Bell! Corp.. HQ got over 2000 calls, radio talk-shows were abuzz, and it made the NBC Nightly news! They probably spent around $300,000 and got millions in media coverage!
Chapter 19 Managing Advertising, Sales Promotion and Public Relations Marketing Management Tenth Edition Philip Kotler
Objectives <ul><li>Developing & Managing an Advertising Program </li></ul><ul><li>Deciding on Media & Measuring Effectiveness </li></ul><ul><li>Sales Promotion </li></ul><ul><li>Public Relations </li></ul>
Major Decisions in Advertising Objectives Setting Budget Decisions Message Decisions Media Decisions Campaign Evaluation
Advertising Objectives <ul><li>Specific Communication Task </li></ul><ul><li>Accomplished with a Specific Target Audience </li></ul><ul><li>During a Specific Period of Time </li></ul>Informative Advertising Build Primary Demand Persuasive Advertising Build Selective Demand Comparison Advertising Compares One Brand to Another Reminder Advertising Keeps Consumers Thinking About a Product.
The Five Ms of Advertising Mission Sales goals Adver- tising objectives Money Factors to consider: Stage in PLC Market share and con- sumer base Competition and clutter Advertising frequency Product substituta- bility Message Message generation Message evaluation and selection Message execution Social-responsibility review Media Reach, frequency, impact Major media types Specific media vehicles Media timing Geographical media allocation Measure- ment Communi- cation impact Sales impact
Advertising Budget Factors Stage in the Product Life Cycle Market Share & Consumer Base Competition & Clutter Advertising Frequency Product Substitutability
Profiles of Major Media Types Newspapers Advantages: Flexibility, timeliness; good local market coverage; broad acceptance, high believability Limitations: Short life; poor reproduction quality; small pass-along audience Television Advantages: Combines sight, sound, motion; high attention; high reach; appealing to senses Limitations: High absolute costs; high clutter; fleeting exposure; less audience selectivity Direct Mail Advantages: Audience selectivity; flexibility, no ad compe- tition within same medium; allows personalization Limitations: Relative high cost; “junk mail” image
Radio Advantages: Mass use; high geographic and demographic selectivity; low cost Limitations: Audio only; fleeting exposure; lower attention; nonstandardized rates; fragmented audiences Magazines Advantages: High geographic and demographic selectivity; credibility and prestige; high-quality reproduction; long life; good pass-along readership Limitations: Long ad purchase lead time; waste circulation; no guarantee of position Outdoor Advantages: Flexibility; high repeat exposure; low cost; low message competition Limitations: Little audience selectivity; creative limitations Profiles of Major Media Types
Classification of Advertising Timing Patterns Month Number of messages per month Concen- trated (1) (2) (3) Level Rising Falling Alternating (4) Continuous (8) (7) (6) (5) (9) Inter- mittent (10) (11) (12) (9)
Simplified Rating Sheet for Ads __Total (Attention) How well does the ad catch the reader’s attention? __ 20 (Read-through) How well does the ad lead the reader to read further? __ 20 (Cognitive) How clear is the central message or benefit? __ 20 (Affective) How effective is the particular appeal? __ 20 (Behavior) How well does the ad suggest follow-through action? __ 20 Poor ad Mediocre ad Average ad Good ad Great ad 0 20 40 60 80 100
Advertising Strategy Message Execution Testimonial Evidence Slice of Life Scientific Evidence Lifestyle Technical Expertise Fantasy Musical Personality Symbol Mood or Image Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest. Typical Message Execution Styles
Advertising Evaluation Advertising Program Evaluation Communication Effects Is the Ad Communicating Well? Sales Effects Is the Ad Increasing Sales?
Why the increase in Sales Promotion? <ul><li>Growing retailer power </li></ul><ul><li>Declining brand loyalty </li></ul><ul><li>Increased promotional sensitivity </li></ul><ul><li>Brand proliferation </li></ul><ul><li>Fragmentation of consumer market </li></ul><ul><li>Short-term focus </li></ul><ul><li>Increased managerial accountability </li></ul><ul><li>Competition </li></ul><ul><li>Clutter </li></ul>
Long-Term Promotional Allocation Cox Direct 19th Annual Survey of Promotional Practices 0 10 20 30 40 50 60 1986 88 90 92 94 1996 Year %t of total - 3 yr.MA Trade Promo Media Adv Cons. Promo
Consumer Promotion Consumer-Promotion Objectives Consumer-Promotion Tools Entice Consumers to Try a New Product Lure Customers Away From Competitors’ Products Get Consumers to “Load Up’ on a Mature Product Hold & Reward Loyal Customers Consumer Relationship Building Point-of-Purchase Displays Premiums Price Packs Cash Refunds Coupons Samples Patronage Rewards Games Sweepstakes Contests Advertising Specialties Patronage Rewards
“Deal Proneness,” Liechtenstein, Burton, & Netemeyer, Journal of Retailing , Summer 1997 <ul><li>Examination of “deal proneness” among consumers in a supermarket setting </li></ul><ul><li>Surveys & Grocery Receipts used </li></ul><ul><li>Eight types of deals: </li></ul><ul><ul><li>Cent-off, One-free, Gift, Display, Rebate, Contest, Sale, & Coupon </li></ul></ul>
“Deal Proneness,” Liechtenstein, Burton, & Netemeyer <ul><li>Cluster analysis yielded two interpretable results: </li></ul><ul><li>49% are “deal prone,” 51% not </li></ul><ul><li>24% High “Deal prone,” 50% intermediate, 26% deal insensitive </li></ul><ul><li>“Deal-proneness” a generalized construct - (crosses type of promotion) </li></ul><ul><li>Younger & Less educated more likely to be deal prone </li></ul>
Trade Promotions Trade-Promotion Objectives Trade-Promotion Tools Persuade Retailers or Wholesalers to Carry a Brand Give a Brand Shelf Space Promote a Brand in Advertising Push a Brand to Consumers Specialty Advertising Items Contests Free Goods Buy-Back Guarantees Allowances Price-Offs Patronage Rewards Push Money Discounts Premiums Displays
Review <ul><li>Developing & Managing an Advertising Program </li></ul><ul><li>Deciding on Media & Measuring Effectiveness </li></ul><ul><li>Sales Promotion </li></ul><ul><li>Public Relations </li></ul>