MARKETING MANAGEMENT12th edition

18 Managing Mass

Communications

Kotler Keller 18-2

Chapter Questions

• What steps are involved in developing an advertising program?

• How should sales promotion decisions be made?

• What are the guidelines for effective brand-building events and experiences?

• How can companies exploit the potential of public relations and publicity?

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Advertising

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

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Procter & Gamble’s Advertising History

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Figure 18.1 The Five M’s of Advertising

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Advertising Objectives

Informative advertising

Reminderadvertising

Reinforcementadvertising

Persuasiveadvertising

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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

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Developing the Advertising Campaign

• Message generation and evaluation

• Creative development and execution

• Social responsibility review

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Creative Brief

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

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

considerations

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TelevisionAdvantages• Reaches broad

spectrum of consumers

• Low cost per exposure• Ability to demonstrate

product use• Ability to portray

image and brand personality

Disadvantages• Brief • Clutter• High cost of

production• High cost of

placement• Lack of attention by

viewers

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Print AdsAdvantages• Detailed product

information• Ability to communicate

user imagery• Flexibility• Ability to segment

Disadvantages• Passive medium• Clutter• Unable to

demonstrate product use

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Print Ad Components

Headline

Picture

SignatureCopy

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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?

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Media Selection

• Reach• Frequency• Impact• Exposure

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Figure 1.2 Relationship among Trial, Awareness, and the Exposure Function

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Reach x Frequency = GRPs

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Choosing Among Major Media Types

• Target audience and media habits

• Product characteristics

• Message characteristics

• Cost

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Major Media Types• Newspapers• Television• Direct mail• Radio• Magazines

• Outdoor• Yellow pages• Newsletters• Brochures• Telephone• Internet

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Table 18.2 Marketing Communication Expenditures (2001)

Media $ % of TotalTV 52.7 22

Radio 19.4 8

Internet 3.4 1

Magazines 12.3 5

Newspaper 49.4 21

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Place Advertising

• Billboards• Public spaces• Product placement• Point-of-purchase

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Measures of Audience Size

• Circulation• Audience• Effective audience• Effective ad-exposed

audience

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Figure 18.3 Classification of Advertising Timing Patterns

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Factors Affecting Timing Patterns

• Buyer turnover• Purchase frequency• Forgetting rate

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Media Schedule Patterns

• Continuity• Concentration• Flighting• Pulsing

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Evaluating Advertising Effectiveness

• Communication Effect Research– Consumer

feedback method– Portfolio tests– Laboratory tests

• Sales-Effect Research

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Sales Promotion

Collection of incentive tools, mostlyshort term, designed to stimulate

quicker or greater purchase of particular products or services

by consumers or the trade.

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Sales Promotion TacticsConsumer-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

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Using Sales Promotions

Establish objectives

Select tools

Develop program

Pretest

Implement and control

Evaluate results

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Events and Experiences• $11.14 billion spent on

sponsorship in 2004– 69% sports– 10% tours– 7% festivals, fairs– 5% arts– 9% causes

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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

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Using Sponsored Events

Establish objectives

Choose event opportunities

Design program

Implement and control

Measure effectiveness

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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

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Public Relations Functions

• Press relations• Product publicity• Corporate communications• Lobbying• Counseling

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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

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Major Tools in Marketing PR

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

Activities• Identity Media

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Steps in Marketing PR

Establish objectives

Choose messages

Choose vehicles

Implement and control

Measure effectiveness

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Marketing Debate

Has TV Advertising Lost Power?

Take a position:1. TV advertising has faded in importance.2. TV advertising is still the most powerfuladvertising medium.

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Marketing Discussion

What are some of your favorite TVads? Why? How effective are

the message and creativestrategies? How are they

building brand equity?