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Managing Mass
Communications Advertising,
Sales Promotions,
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
What is Advertising?
Advertising is 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
The Five M’s of 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
Advertising Objectives
• Informative—to create 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
Factors to Consider in 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
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
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
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
BARRIER THEORY
• CAN ANY OF THE PROMOTIONAL
ELEMENTS OVERCOME THESE
BARRIERS IN THE CONSUMER DECISION
PROCESS?
• AWARENESS
• ACCEPTANCE
• PREFERENCE
• SEARCH
• SELECTION
• USE
• SATISFACTION
9
EXAMPLES OF PURPOSE OF 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
TARGET

• THE GROUP OF 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
NEED TO KNOW DEMOGRAPHIC
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
NEED TO KNOW DEMOGRAPHIC 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
EXAMPLE OF PURPOSE AND
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
PROMISE
• BENEFIT OR REWARD 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
PROMISE IS THE HEART 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
EXAMPLES OF PURPOSE AND
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
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
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
BENEFIT MATRIX--POTENTIAL
BENEFITS OF REAL 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
SUPPORT
• LENDS CREDIBILITY TO 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
INTERNAL SUPPORT
• PRODUCT OR 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
EXTERNAL SUPPORT
• SUPPORT FOR 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
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
WHERE TO LOOK FOR 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
ROI
•

RELEVANCE
• MESSAGE MUST BE 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
LEGS
• IMPACT OF AN INDIVIDUAL
ADVERTISEMENT OR LONG-TERM
CAMPAIGN
• IDEA MAY YIELD EFFECTIVE
VARIATION--LONG WAY
• JOE GREEN COMMERCIAL

27
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
BRAND PERSONALITY--CONTINUED
• BRAND PERSONALITY
• 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
MEDIA
• MEDIA
• WHAT MEDIA 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
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
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
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
VENUE ONE
• OBVIOUS SUPERIORITY
• FOCUS ON THE CUSTOMER--ROI
• EXPAND THE CATEGORY
• PREPARE FOR COMPETITIVE
RESPONSE

34
VENUE TWO
• MARGINAL SUPERIORITY
• 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
VENUE THREE
• PERCEIVED INFERIORITY
• 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
VENUE FOUR
• REAL INFERIORITY
• 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
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
SUMMARY OF ROI
FIVE BASIC 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
Problem--Multiple Vitamin Supplements
•

Multiple vitamin 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
Multiple Vitamin Supplements
Approach

Distribution

Price

Task of
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
Media Selection—finding the most 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
Choosing Among Major Media 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
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
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
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%

Reaches local
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
Measures of Audience Size
• 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
Evaluating Advertising
Effectiveness
•

•

Communication Effect Research
• 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
Print Ad Evaluation Criteria
•
•
•
•

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
Factors Affecting Timing Patterns
• 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
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
Most Organizations Use One of These
Three Scheduling Strategies

52
Measuring Sales Impact of 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
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.

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

18-54
Sales Promotion Tactics
Consumer-directed
•
•
•
•
•
•
•
•
•

Samples—offer of 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
Sales Promotion: Do Something Different to
Stimulate Change
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
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
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
Ideal Events
• Audience closely 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
Customer Experience Management:
Experience Providers
•

•

•

•

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
Steps in the CEM 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
Tasks Aided by Public 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
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
Major Tools in Marketing 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
Decisions in Marketing PR
• 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
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
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
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
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
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

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  • 1. Managing Mass Communications Advertising, Sales Promotions, 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? Advertising is 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’s of 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—to create 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 Consider in 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 • CAN ANY OF THE PROMOTIONAL ELEMENTS OVERCOME THESE BARRIERS IN THE CONSUMER DECISION PROCESS? • AWARENESS • ACCEPTANCE • PREFERENCE • SEARCH • SELECTION • USE • SATISFACTION 9
  • 10. EXAMPLES OF PURPOSE OF 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 GROUP OF 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 KNOW DEMOGRAPHIC 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 KNOW DEMOGRAPHIC 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 PURPOSE AND 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 OR REWARD 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 THE HEART 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 PURPOSE AND 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 OF REAL 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 CREDIBILITY TO 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 • PRODUCT OR 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 • SUPPORT FOR 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 LOOK FOR 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 MUST BE 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 OF AN 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 • BRAND PERSONALITY • 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 • WHAT MEDIA 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 • OBVIOUS SUPERIORITY • FOCUS ON THE CUSTOMER--ROI • EXPAND THE CATEGORY • PREPARE FOR COMPETITIVE RESPONSE 34
  • 35. VENUE TWO • MARGINAL SUPERIORITY • 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 • PERCEIVED INFERIORITY • 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 • REAL INFERIORITY • 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 FIVE BASIC 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 • Multiple vitamin 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 Task of 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 the most 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 Major Media 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% Reaches local 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 Audience Size • 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 Effect Research • 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 Evaluation Criteria • • • • 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 Timing Patterns • 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 Use One of These Three Scheduling Strategies 52
  • 53. Measuring Sales Impact of 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 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. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 18-54
  • 55. Sales Promotion Tactics Consumer-directed • • • • • • • • • Samples—offer of 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: Do Something 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 • Audience closely 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: Experience Providers • • • • 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 the CEM 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 by Public 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 in Marketing 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 Marketing PR • 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

Hinweis der Redaktion

  1. 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.
  2. 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.
  3. 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?