Addvertising Theory

8/13/2019 Addvertising Theory

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Any paid form of nonpersonal communication

about an organization, product, service, ideaor cause by an identified sponsor.

Advertising

Disadvantages of advertising

High costs of producing

and running adsCredibility problems and

consumer skepticism

Clutter

Difficulty in determiningeffectiveness

Advantages of advertisingAdvertiser controls the

messageCost effective way tocommunicate with largeaudiences

Effective way to create

brand images andsymbolic appealsOften can be effective

way to strike responsivechord with consumers


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IMC Communication Tools

IMC Communication Tools

AdvertisingDirect

Marketing

Interactive/

Internet Marketing

Sales

PromotionPublicity/Public

Relations

Personal

Selling


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Classifications of Advertising

Advertising to Consumer MarketsNational advertising

Retail/local advertising

Advertising to increase demand

Primary demand for the product categorySelective demand for a specific brand

Business & professional advertisingBusiness-to-business advertising

Professional advertising

Trade advertising


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A system of marketing by which

organizations communicate directlywith target customers to generate a

response and/or a transaction.

Direct Marketing

Disadvantages of direct marketingLack of customer receptivity and

very low response rates

Clutter (too many messages)

Image problems particularly with

telemarketing

Advantages of direct marketingChanges in society have madeconsumers more receptive todirect-marketing

Allows marketers to be veryselective and target specific

segments of customersMessages can be customized forspecific customers.

Effectiveness easier to measure


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Direct Marketing

Direct marketing methods

Direct mail

CatalogsTelemarketing

Direct response ads

Direct selling

Internet


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A form of marketing communication through interactive media

which allow for a two-way flow of information whereby users can

participate in and modify the content of the information they

receive in real time.

Interactive/Internet Marketing

Disadvantages of interactive/

internet marketing Internet is not yet a mass

medium as many consumerslack access

Attention to Internet ads is

very low Great deal of clutter on the

Internet

Audience measurement is aproblem on the Internet

Advantages of interactive/internet marketing

Can be used for a variety of IMCfunctions

Messages can be tailored to

specific interests and needs ofcustomers

Interactive nature of the Internetleads to higher level ofinvolvement

Can provide large amounts ofinformation to customers.


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Interactive/Internet Marketing

Use of the Internet as an IMC ToolAs an advertising medium to inform, educate

and persuade customers

As a direct sales tool

To obtain customer database information

To communicate and interact with buyers

To provide customer service and support

To build and maintain customer relationships

As a tool for implementing sales promotion

As a tool for implementing publicity/public

relations programs


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The Internet is an important IMC tool forAmerican Airlines

Source: Courtesy American Airlines.


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Marketing activities that provide extra

value or incentives to the sales force,distributors, or ultimate consumers and

can stimulate immediate sales.

Sales Promotion

Trade-oriented

Targeted toward marketingintermediaries such asretailers, wholesalers, ordistributors

Promotion allowances

Merchandise allowances

Price deals

Sales contests

Trade shows

Consumer-oriented

Targeted to the ultimateusers of a product orservice Coupons

Sampling Premiums Rebates

Contests

Sweepstakes

POP materials


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Sales Promotion Uses

Introduce new productsGet existing customers to buy more

Attract new customers

Combat competitionMaintain sales in off season

Increase retail inventories

Tie in advertising & personal sellingEnhance personal selling efforts


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Publicity

Advantages of publicityCredibility

Low cost (although not totally free)

Often results in word-of-mouth

Disadvantages of publicityNot always under control of organization

Can be negative

Nonpersonal commun icat ion regarding an

organizat ion, product, service, or id ea no tdi rect ly paid for o r run under ident i f ied

sponsorship.


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Publicity Vehicles

News Releases:Single-page news stories sent tomedia who might print or broadcastthe content.

Feature Articles:Larger manuscripts composed and

edited for a particular medium.

Press Conferences:Meetings and presentations to

invited reporters and editors.

Special Events:Sponsorship of events, teams, or

programs of public value.


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Advertising Versus Publicity

FACTOR ADVERTISING PUBLICITY

Control Great Little

Credibility Lower HigherReach Achievable Undetermined

Frequency Schedulable Undetermined

Cost Specific Unspecified/low

Flexibility High Low

Timing Specifiable Tentative


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Public Relations

Tools used by Public RelationsPublicity

Special publications

Community activity participation

Fund-raising

Special event sponsorship

The management function which evaluates public

attitudes, identifies the policies and procedures ofan individual or organization with the public interest,

and executes a program of action to earn public

understanding and acceptance.


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Direct person-to-person communication

whereby a seller attempts to assistand/or persuade perspective buyers to

to purchase a product or service.

Personal Selling

Disadvantages of personal selling

High costs per contact Expensive way to reach large

audiences

Difficult to have consistent anduniform message delivered to

all customers

Advantages of personal selling

Direct contact between buyerand seller allows for moreflexibility

Can tailor sales message tospecific needs of customers

Allows for more direct and

immediate feedback Sales efforts can be targetedto specific markets andcustomers who are bestprospects.


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Coordinating the promotional mix

elements to develop a controlled,integrated program of effective

marketing communications.

Promotional Management

Considerations for developing thepromotional program include:

Type of product

Buyers decision process Stage of product life cycle

Channels of distribution

d k i i i


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Promotional Program Situation Analysis

Analysis of the Communications Process

Budget Determination

Develop Integrated Marketing Communications Programs

Review of Marketing Plan

AdvertisingSales

PromotionPR/

PublicityPersonalSelling

DirectMarketing

AdvertisingObjectives

SalesPromotionObjectives

PR/Publicity

Objectives

PersonalSelling

Objectives

DirectMarketingObjectives

MessageStrategy

SalesPromotionStrategy

PR/PublicityStrategy

PersonalSelling

Strategy

DirectMarketingStrategy

Integration & Implementation of Marketing Communications Strategies

Monitor, Evaluate & Control Promotional Program

Internet/Interactive

Internet/InteractiveObjectives

Internet/InteractiveStrategy

Integrated Marketing CommunicationsPlanning Model


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The Marketing Plan

A document that describes the overallmarketing strategy and programsdeveloped for a company, product orbrand. The plan includes:

A detailed situation analysisSpecific marketing objectives

A marketing strategy and program that includesselection of a target market and plans for

marketing mix elements4. A program for implementing the strategy

5. A process for monitoring and evaluatingperformance


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Situation Analysis

Internal Factors

Assessment of the firmspromotional organization andcapabilities

Review of the firms previouspromotional programs

Assessment of firm or brand imageand implications for promotion

Assessment of relative strengths andweaknesses of product/service

External FactorsCustomer analysis

Competitive analysis

Environmental analysis

IMC Program Situation Analysis


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IMC Program Situation AnalysisExternal Factors

Environmental analysis Technological Political/Legal

Demographic Socio/Cultural

Economic

Competitive Analysis Direct and indirect competitors

Position relative to competitors

Size of competitors advertising/

promotional budgets IMC strategies being used by

competitors

IMC P Sit ti A l i


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IMC Program Situation AnalysisExternal Factors

Customer AnalysisWho buys our product or service?

Who initiates and makes the decision

to purchase and who influences the process?

How is the purchase decision made?What attributes or criteria are important to

customers?

What are customers perceptions of and attitudes

toward our company, product/service or brands?What factors influence the decision making process?

Contact points where customers can be reached?


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Analysis of Communications Process

Analyze best combination of source,

message and channel factors forcommunicating with target audience.

Establish communication goals and

objectives.


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Potential Communications Objectives

SalesCustomer loyalty

Company image

Brand image

Store patronage

Service contract

An inquiry

A visit by a prospect

Product trial

Recommendation

Adoption of the product

Contact Points Where Customers


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Contact Points Where CustomersCan Be Effectively Reached

Mass media Broadcast - radio/TV

Newspapers

Magazines

Direct MarketingInternet/interactive

Brochures, salesliterature

Publicity/PR

Events/sponsorships Local

Regional

National/international

Sales PromotionsIn-store/POP

Product placements in moviesand television shows

Promotional products

Develop Integrated Marketing


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Develop Integrated MarketingCommunications Program

AdvertisingDetermine objectives and budgetMessage development

Called Creative Strategy Determine basic appeal

Determine main messageMedia strategy Communication channels Type of media . . .

Newspapers/Magazines Radio/Television Outdoor/Specialty

Select specific media Specific papers, magazines, TV

programs, radio stations, billboards, or

other media

Integrate and Implement Marketing


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Integrate and Implement MarketingCommunications Strategies

Integrate promotional mix strategies. Create and produce ads.

Purchase media time and space

Design and implement direct

marketing programs Design and implement sales promotion

program

Design and implement public relations/

publicity programs

Design and implement interactive/

internet marketing programs

Monitor Evaluate and Control Integrated


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Monitor, Evaluate and Control IntegratedMarketing Communications Program

Evaluate promotional programresults and determine

effectiveness

Take actions to control andadjust promotional programs


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Documents

Addvertising Theory