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MKTG30010
ADVERTISINGANDPROMOTIONS
LECTURENOTES
2017Semester2
2
TableofContentBaseProcesses
Lecture1: AdvertisingLandscape–IntroductiontoIMCLecture2: Social,EthicalandRegulatoryIssuesofIMCLecture3&4: TheCommunicationProcessLecture5: InfluencingConsumerBehaviour
PlanningforIMCLecture6: StrategyI–ObjectivesandBudgetingLecture7: StrategyII–SegmentationLecture8: StrategyIII–PersuasionTacticsLecture9: CreativeStrategyI–PlanningandDevelopmentLecture10&13: CreativeStrategyII–MessageStrategiesLecture14: MediaStrategy
IMCTools&DisciplinesLecture15: StorytellingLecture17: MeasuringtheEffectivenessoftheIMCProgramLecture16: IMCMix–TraditionalMediaLecture18: IMCMix–Social,DigitalandInteractiveMediaLecture19: IMCMix–PublicRelationsLecture21: IMCMix–DirectMarketingandPersonalSellingLecture22: IMCMix–SalePromotion
**XLecture11,12&20:GuestLectures(OnlyrelevantforAssignment2–OperaAustraliaandPublicis)
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Lecture10&13:CreativeStrategiesII–MessageStrategiesA. TheMessageStrategy
1. Definition:a. “Themajorsellingideashouldemergeasthestrongsingularthingyoucansayaboutyour
productorservice,orevenyourbrand.Thiswouldbetheclaimwiththebroadestandmostmeaningfulappealtoyourtargetaudience”
b. Thespecificmessagetobedisseminatedinthecurrentcampaignbasedonthecircumstancesandobjectives=keymessage
2. Howtogenerateagoodmessagestrategy?a. Relevantforconsumer
i. Understandtargetconsumers(demographics,psychographics,consumerinsight)b. Basedonaproducttruth
i. Functionalcharacteristicsii. Brandimage/personality/addvalue
c. Distinctvsthecompetition(ifpossible)i. Understandrealcompetitor(inthesamecategory,competingforourtime,money
orattention)ii. Standapartfromthecompetitoràpointofdifference
B. Whatiscreativity?
1. AdvertisingCreativitya. Theabilitytogeneratefresh,uniqueandappropriateideasthatcanbeusedassolutionsto
communicationsproblems2. Creativestrategy
a. Determiningwhattheadvertisingmessagewillsayorcommunicate3. Creativetactics
a. Determininghowthemessagestrategywillbeexecuted
C. 8Keycreativemessagestrategies1. GenericStrategy
Definition Astraightproductorbenefitclaimthatcouldbemadebyanycompanythatmarketsabrandinaparticularcategory.Thereisnoassertionofcompetitivesuperiority.
Whentouse Companyhasadominantmarketpositionàonlycanbeapplicabletoabsolutecleardominantleaderinindustry
Benefits • Companybenefitsmostfromanincreaseinprimarydemand• Makesthebrandsynonymouswiththeproductcategory• Unusualbutpowerful
Examples • AppleiPods,iPads…• HeinzKetchup• Campbell’ssoupuses‘soupisgoodfood’sloganinsteadof
‘Campbell’ssoup…’àwhenyousaysoup,youimmediatelythinkofCampbell’ssoup
2. Pre-emptivestrategyDefinition Anadvertisermakesageneric-typeclaimbutwithanassertionof
competitivesuperiority(eventhoughcompetitors’productsareequal).
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Whentouse • Usedwheretherearefewfunctionaldifferencesbetweencompetingalternatives
• Veryfunctionalgoodsànotmuchdifference
Benefits • Pre-emptiveclaimprecludescompetitorsfromusingasimilarline• Usefulingrowthmarketswherethereislittlecompetitive
advertisingExamples • Visineeyedrop’s‘Visinegetstheredout’àinfacteveryeyedrop
brand‘gettheredout’butVisinenowhasthestrongestassociationtoit
• ‘Soupisgoodfood’à‘Campbell’ssoupisgoodfood’
3. USP(UniqueSellingPropositionstrategy)Definition Superiorityclaimbasedonauniqueproductattributethatrepresentsa
meaningful,distinctiveconsumerbenefit(i.e.thereisaphysical,functionalpointofdifferentiation)
Whentouse • Mostusefulwhenpointofdifferencecannotbereadilymatchedbycompetitors
• Rarelyseenbecausethereareveryfewproductmarketsthathaveaplayerthattrulyfunctionally,meaningfullydifferent
Risks Mayforcecompetitorstoimitateorchoosemoreaggressivestrategy
Examples • EtihadAirwaywillhavea“flyingnanny”onlong-haulflights.• GolfTDI:1,400kmwithoutrefueling
4. BrandimagestrategyDefinition • Messageinvolvespsychologicalpointofdifferenceratherthan
physicaldifferentiation(usuallysymbolic)àdifficulttoofferphysicaldifferentiationbutmorelonglasting
• Psychologicaldifferentiationàsymbolicrepresentationofbrand
Whentouse • Usedwhencompetingbrandsthataresosimilaritisdifficulttofindorcreateauniqueattribute
• Mostcommonlyappliedcreativestrategiesforbrands
Howtouse • Thecreativitysalesstrategyisbasedonastrong,memorablebrandidentitythroughimageadvertising,leadingtoatransformationaladvertisingàgivingthebrandapersonality
• Itusesclassicalconditioning:paringaconditionedstimulus(i.e.brandname)withanunconditionalstimulus(i.e.peripheralcue)tocreateaconditionedresponse
Examples • Cigarettebrandstargetdifferentsegmentse.g.VirginiaSlimtargetsfemale,Cameltargetsolderjazzpeople,Marlborotargetsaman’smanlikecowboy,drinkbeeràbrandpersonality
• Pepsiusecelebrityendorsing(ToolofPersuasion:liking)àclassicalconditioningàcokedoesn’tusecelebrityendorsesbecauseitisTHEcoke(i.e.genericstrategy)whilePepsiisthefollower
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Lecture22:IMCMix–SalesPromotionA. Definitionandmechanismsofsalespromotion
1. Definitionofsalespromotiona. Adirectinducementthatoffersextravalueoranincentivefortheproducttothesalesforce,
distributorsortheultimateconsumerwiththeprimaryobjectiveofcreatinganimmediatesale
b. Moveproductstodistributionchannelse.g.periodicsalesinfashionbrands2. Scopeofsalespromotion
a. Targetatconsumersàconsumerpromotionsb. Targetatretailers/wholesalersàtradepromotions
3. Whydoesitworkwithconsumers?a. Lawofmicroeconomics
i. Lowerpricesàincreaseindemandii. Almostallsalespromotionsrestongivingawaymorevalue/utility–evenifitisnot
apparentatafirstlook4. Salespromotionisbecomingincreasinglypopularamongmarketers
a. Estimatesarethatmarketersspendbetween60and75%oftheirbudgets(!)onsalespromotion,withtheremainderbeingallocatedtomediaadvertising
b. Morethan$6billionisspentonpromotionsmarketingannuallyinAustraliac. Growthinsalespromotionisexpectedasmarketersbecomemoreadeptatusingviral
marketing,emailandotheropt-incommunicationtechnologiesi. Salespromotionattachedwithdirectmarketing
5. Concernsofsalepromotionsa. Salespromotionisadouble-edgedsword:canworkveryeffectivelyintheshortrun–but
canalsohurtbrandequityinthelongrunb. Whilemarketersacknowledgetheimportanceofsalespromotiontogenerateimmediate
sales,theyareequallyconcernedaboutitslong-termeffectonbrandequityi. Longtermsalesàprice-qualityassociationi.e.ifpriceistoolow,qualityisbad
c. Somearguethatsalespromotionincreasescomeattheexpenseofbrandequityandthateverydollarwhichgoesintosalespromotionratherthanadvertisingdevaluesthebrand
i. Customersaretrainedtoexpectsales
6. Solution:a. usesalespromotionssparingly
i. Salespromotionsasscarcitymessagescomein2types:Ø- limitedtime(availableforapredefinedperiod)�- limitedquantity(first100customersonly)
ii. Scarcitymessagestypicallyacceleratethepurchase,creatingahigherwillingnesstobuyandalowerpropensitytolookfurther
iii. Scarcitymayalsoguardagainstconsumeraddictiontopromotions- Longtermloyalty,Xtraincustomerstoexpectsales
b. Usesalespromotionsstrategicallyi. i.e.integratedintotheIMCprogramhelpingbuildbrandequityii. Itisagoodstrategicsalespromotionifitcanbuildlong-termbrandequitye.g.
IKEA’sfreecotforbabiesborn9monthsfromtoday
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B. ConsumerPromotions1. Processforconsumerpromotions
a. Salespromotionobjectives
i. E.g.immediatesales/trialsàsamplingii. E.g.enhancingIMC/buildingbrandequity/strengthencustomerrelationshipànot
price-orientedstrategies2. Typesofsalespromotions
a. Samplingi. Anymethodusedtodeliveranactualortrialsizedproducttoconsumersii. 85%ofmanufacturersusesamplingtogeneratetrialandleveragechannelsupport
- reduceriskofpurchaseforcustomersàeffectiveforproductlaunche.g.tastetestinginsupermarket,facecreamsampleonmagazine
- reciprocityàfeelguiltyifyoudon’tbuyaftergiventheopportunitytotryitthroughsamples
iii. Shouldbetargeted,ratherthanmass-distributedØiv. Particularlyeffectiveiftheconceptisdifficulttocommunicatebyadvertisingalonev. Vehicles:theuseofinnovativedistributionmethods,whereappropriate
b. Couponsi. Apromotionaldevicethatrewardsconsumersuponitsredemptiongenerallyinthe
formofcents-offsavingsorfreemerchandise- Discriminatepeoplewithcouponsfromthosewithout
ii. UncommoninAustraliabutcommonintheUSiii. Mail-deliveredcoupons
- Marketersusetointroducenewproducts- Canreach95percentofhomes- 75percentofrespondentspreferredtoreceiveinformationonnewproducts
bymailc. Premiums
i. Anofferofanitemofmerchandiseorserviceeitherfreeoratalowcostthatisanextraincentiveforcustomers
ii. E.g.freegiftsforpurchase,esp.cosmeticcompaniesàadded-valuewithouttouchingtheprice
iii. Advantages- Canintroducenewbrands�Ø- IncreasesPoint-of-PurchasedisplayexposureØ- Enhancesbrandequity(unlikeCoupons)Ø- Rewardsexistingusersi.e.loyalty/encouragesrepeatpurchases(Long-term
strategicbenefits)
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d. Price-offsi. Atemporaryreductioninthepriceoftheproduct(typically10-25%off)ii. Advantages
- Rewardsexistingusers(receivediscountdirectly)- Temporarilyincreasesmarketshare�Ø- Loadscustomersupwithyourproduct
iii. Ifusedtomuch,it’llharmbrandequity- E.g.Myerusestoomuchprice-offsàcheapensMyer’simagevs.DavidJones;
expectasalessoXbuyyetàstillagapbetweenMyerandDavidJonese. Bonuspacks
i. Extraquantitiesofaproductgiventoconsumersatnoextracostii. Advantages
- Alternativetoprice-offdealsØ- Loadscustomersàreduceslikelihoodofcompetitor’ssalespromotionafter
yoursØ- Rewardsbrandloyalty
f. Contestsi. Apromotioninwhichparticipantsmustactaccordingtotherulesofthecontestand
mayormaynotberequiredtosubmitproofs-of-purchaseii. Advantages
- Reinforcesbrandimage- Goodforsegmentation�- Generateschannelenthusiasmàincreasescustomers’demandastheywant
towin- Strengthenbrandrelationship�àRewardhighvaluecustomers- Doesn’tdamagetheprice-qualityassociation
iii. Applicableforluxurybrandsiv. UsewithsocialmediamarketingàGoodforinteractionandbrandengagement
g. Brandedgamesi. Thesecreateanddevelopdeeperandongoingconsumerengagementandtocreate
aconversationii. Itcanalsoencouragetrialandeitherpurchaseorrepurchaseiii. Similartocontentmarketing
h. Point-of-purchase(POP)Displaysi. Theuseofvariousin-storedisplaystosellproducts
- Specificallyplanned=knowwhichbrand- Generallyplanned=knowwhichcategorybutdkwhichbrand- Substitute=brandXranoutofstockàbrandY- Unplanned=didn’tthinkaboutà60%!!
ii. E.g.banner,pop-up,point-of-purchasedisplay