Managing Mass Communications

18-2

Advertising

Any paid form of nonpersonal presentationand promotion of ideas, goods, orservices by an identified sponsor.

18-3

Obtain OutletsObtain Outlets

Ongoing ContactOngoing Contact

Support Sales ForceSupport Sales Force

Maintain RelationshipsMaintain Relationships

Get Immediate ActionGet Immediate ActionGet Immediate ActionGet Immediate Action

Obtain OutletsObtain Outlets

Introduce New ProductsIntroduce New Products

Position BrandsPosition Brands

Introduce New ProductsIntroduce New Products

Position BrandsPosition Brands

Ongoing ContactOngoing Contact

Support Sales ForceSupport Sales ForceAdvertisingAdvertisingObjectivesObjectivesShould beShould beSpecificSpecific

Setting Ad Objectives Is a Strategy Decision

18-4

Objectives Guide Implementation

18-5

Factors to Consider in Setting an Advertising Budget

Stage in the product life cycle

Market share and consumer base

Competition and clutter

Advertising frequency

Product substitutability

18-6

Target GroupTarget Group

Brand HistoryBrand History

Share of Voice

Share of Voice

Purchase Cycles

Purchase Cycles

Brand LoyaltyBrand

LoyaltyBrand ShareBrand Share

Usage Cycle

Usage Cycle

Purchase Cycles

Purchase Cycles

Share of Voice

Share of Voice

Brand HistoryBrand History

Usage Cycle

Usage Cycle

Brand ShareBrand Share

Brand LoyaltyBrand

Loyalty

Marketing Factors Determining Frequency

Marketing Factors

Marketing Factors

18-7

Message ComplexityMessage Complexity

Message UniquenessMessage Uniqueness

New Vs. Continuing CampaignsNew Vs. Continuing Campaigns

Image Versus Product SellImage Versus Product Sell

Message VariationMessage Variation

WearoutWearout

Advertising UnitsAdvertising Units

WearoutWearout

Message VariationMessage Variation

Image Versus Product SellImage Versus Product Sell

New Vs. Continuing CampaignsNew Vs. Continuing Campaigns

Message UniquenessMessage Uniqueness

Message ComplexityMessage Complexity

Message Factors Determining Frequency

Messageor Creative

Factors

Messageor Creative

Factors

18-8

Creative Brief

• Positioning statement• Key message• Target market• Objectives• Key brand benefits

• Brand promise• Evidence of promise• Media• Background• Creative

considerations

18-9

A series of decisions involving the delivery of messages to audiencesA series of decisions involving the delivery of messages to audiences

Goals to be attained by the media strategy and programGoals to be attained by the media strategy and program

Decisions on how the media objectives can be attainedDecisions on how the media objectives can be attained

The various categories of delivery systems, including broadcast and print mediaThe various categories of delivery systems, including broadcast and print media

Either radio or television network or local station broadcastsEither radio or television network or local station broadcasts

A series of decisions involving the delivery of messages to audiencesA series of decisions involving the delivery of messages to audiences

Goals to be attained by the media strategy and programGoals to be attained by the media strategy and program

Decisions on how the media objectives can be attainedDecisions on how the media objectives can be attained

The various categories of delivery systems, including broadcast and print mediaThe various categories of delivery systems, including broadcast and print media

Media Terminology

MediaPlanningMedia

Planning

MediaObjectives

MediaObjectives

MediaStrategyMedia

Strategy

MediaMedia

BroadcastMedia

BroadcastMedia

18-10

Publications such as newspapers, magazines, direct mail, outdoor, etc.Publications such as newspapers, magazines, direct mail, outdoor, etc.

The specific carrier within a medium categoryThe specific carrier within a medium category

Number of different audience members exposed at least once in a given time periodNumber of different audience members exposed at least once in a given time period

The potential audience that might receive the message through the vehicleThe potential audience that might receive the message through the vehicle

The number of times the receiver is exposed to the media vehicle in a specific time periodThe number of times the receiver is exposed to the media vehicle in a specific time period

The potential audience that might receive the message through the vehicleThe potential audience that might receive the message through the vehicle

Number of different audience members exposed at least once in a given time periodNumber of different audience members exposed at least once in a given time period

The specific carrier within a medium categoryThe specific carrier within a medium category

Publications such as newspapers, magazines, direct mail, outdoor, etc.Publications such as newspapers, magazines, direct mail, outdoor, etc.

Media Terminology

PrintMediaPrintMedia

Media VehicleMedia

Vehicle

ReachReach

CoverageCoverage

FrequencyFrequency

18-11

Comparing Advertising Media

MediaMedia2004

spend.(billions)

2004 spend.

(billions)

2-year %

growth

2-year %

growthAdvantagesAdvantages DisadvantagesDisadvantages

Television & cableTelevision & cable

$67.8$67.8 25.3%25.3%Demonstrates well, good attention, wide reach

Demonstrates well, good attention, wide reach

Expensive in total, “clutter,” and less selective audience

Expensive in total, “clutter,” and less selective audience

Direct mailDirect mail

$52.2$52.2 16.816.8Selected audience, flexible, can personalize

Selected audience, flexible, can personalize

Relatively costly per contact, “junk mail,” hard to retain attention

Relatively costly per contact, “junk mail,” hard to retain attention

News-paperNews-paper

$46.6$46.6 5.95.9Flexible, timely, local marketFlexible, timely, local market

May be expensive, short life, no “pass along”

May be expensive, short life, no “pass along”

RadioRadio $19.6$19.6 9.59.5Wide reach, low costsegmented audienceWide reach, low costsegmented audience

Weak attention, many different rates, short exposure

Weak attention, many different rates, short exposure

18-12

Comparing Advertising Media

MediaMedia2004

spend.(billions)

2004 spend.

(billions)

2-year %

growth

2-year %

growthAdvantagesAdvantages DisadvantagesDisadvantages

Yellow pagesYellow pages

$14.0$14.0 1.4%1.4%Reaches local customers seeking purchase info.

Reaches local customers seeking purchase info.

Many competitors listed in same place, hard to differentiate

Many competitors listed in same place, hard to differentiate

MagazineMagazine $12.3$12.3 11.811.8Very targeted, good detail, good “pass along”

Very targeted, good detail, good “pass along”

Inflexible, long lead timesInflexible, long lead times

InternetInternet $6.9$6.9 40.840.8

Ads link to more detailed site, some “pay for results,” easy to track results

Ads link to more detailed site, some “pay for results,” easy to track results

Hard to compare costs with other mediaHard to compare costs with other media

OutdoorOutdoor $5.8$5.8 11.511.5Flexible, repeat exposure, inexpensive

Flexible, repeat exposure, inexpensive

“Mass market,” very short exposure“Mass market,” very short exposure

18-13

ClutterClutter

Number of Media UsedNumber of Media Used

Repeat ExposuresRepeat

Exposures

Editorial Environment

Editorial Environment

SchedulingScheduling

AttentivenessAttentivenessAttentivenessAttentiveness

Number of Media UsedNumber of Media Used

Editorial Environment

Editorial Environment

Repeat ExposuresRepeat

Exposures

ClutterClutter

Media Factors Determining Frequency

Media FactorsMedia

Factors

18-14

Reach and Frequency

A. Reach of One Program

Total market audience reached

B. Reach of Two Programs

Total market audience reached

C. Duplicated Reach of Both

Total reached with both shows

D. Unduplicated Reach of Both

Total reach less duplicate

18-15

Graph of Effective Reach

18-16

Measures of Audience Size

• Circulation– # of physical units carrying

the advertising• Audience

– # of people exposed to the vehicle (pass-on)

• Effective audience– # of people with target

audience characteristics exposed to the vehicle

• Effective ad-exposed audience– # of people with target

audience characteristics who actually saw the ad

18-17

TargetMarket

Proportion

FullMarket

Coverage

PartialMarket

Coverage

CoverageExceeding

Market

Target Audience Coverage

Population excluding target marketTarget marketMedia coverageMedia overexposure

18-18

Place Advertising

• Billboards

• Public spaces

• Product placement

• Point-of-purchase

18-19

Factors Affecting Timing Patterns

• Buyer turnover• Purchase frequency• Forgetting rate

18-20

Three Scheduling Methods

Continuity

Pulsing

Flighting

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

18-21

Evaluating Advertising Effectiveness

• Communication Effect Research (effectiveness of ad or copy testing)– Consumer feedback

method• Reactions to ad

– Portfolio tests• Unaided and aided

recall of ad– Laboratory tests

• Physiological reactions to ad

• Sales-Effect Research– Sales generated from

the ad

18-22

Sales Promotion

Collection of incentive tools, mostly

short term, designed to stimulate

quicker or greater purchase

of particular products or services

by consumers or the trade.

18-23

Sales Promotion Tactics

Consumer-directed• Samples• Coupons• Cash refund offers• Price offs• Premiums• Prizes• Patronage rewards• Free trials• Tie-in promotions

Trade-directed• Price offs• Allowances• Free goods• Sales contests• Spiffs• Trade shows• Specialty advertising

18-24

Sales Promotion: Do Something Different to Stimulate Change

18-25

Events and Experiences

• $11.14 billion spent on sponsorship in 2004– 69% sports– 10% tours– 7% festivals, fairs– 5% arts– 9% causes

18-26

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

18-27

Ideal Events

Audience closely matches target market

Event generates media attention

Event is unique with few sponsors

Event lends itself to ancillary activities

Event enhances brand image of sponsor

18-28

Public Relations Functions

• Press relations

• Product publicity

• Corporate communications

• Lobbying

• Counseling

18-29

Marketing Public Relations Functions

• Assist in product launches• Assist in repositioning mature products• Build interest in a product category• Influence specific target groups• Defend products• Build corporate image

18-30

Major Tools in Marketing PR

• Publications• Events• Sponsorships• News• Speeches• Public Service

Activities• Identity Media