Key Concepts

Developing and Managing An Advertising Program

Advertising—any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.

Major decisions (Five Ms):Mission—What are the objectives?Money—How much can be spent?Message—What message should be sent?Media—What media should be used?Measurement—How should the results be evaluated?

Setting the ObjectivesAdvertising goal (or objective)—a specific communication task and achievement level to be accomplished with a specific audience in a specific period.

Classified according to their aim:InformPersuadeRemindReinforce

Deciding on the Advertising Budget

Factors to consider:Product life cycle stageMarket share and consumer baseCompetition and clutterAdvertising frequencyProduct substitutability

Developing the Advertising Campaign

Message generation and evaluationCreative development and executionLegal and social issues

Deciding on Media and Measuring Effectiveness

Deciding on reach, frequency, and impact

Choosing among major media typesSelecting specific vehiclesDeciding on media timing and allocation

Evaluating advertising effectiveness

Deciding on Reach, Frequency, and ImpactReach (R)—the number of different persons or households that are exposed to a particular media schedule at least once during a specified period.

Frequency (F)—The number of times within the specified period that an average person or household is exposed to the message.

Impact (I)—the qualitative value of an exposure through a given medium.

Choosing Among Major Media Types

Consider four main variables:Target audience’s media habitsProductMessageCost

Alternative Advertising Options

Place advertising (or out-of-home advertising) is a broad category including many creative and unexpected forms to grab consumers’ attention where they work, play, and shop.BillboardsPublic spacesProduct placementPoint-of-purchase

Selecting Specific Vehicles

Audience size can be measured by:Circulation—number of physical units carrying the advertising.

Audience—number of people exposed to the vehicle.

Effective audience—number of people with target audience characteristics exposed to the vehicle.

Deciding on Media Timing and Allocation

Continuity—exposures appear evenly throughout a given period.

Concentration—spending all ad dollars in a single period.

Flighting—advertise 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.

Evaluating Advertising Effectiveness

Communication-effect research (called copy testing)—seeks to determine whether an ad is communicating effectively.Pretesting—before an ad is placed.Posttesting—after an ad is placed.

Formula for measuring sales impact of advertising:Share of expendituresShare of voiceShare of mind and heartShare of market

Sales Promotion

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.

Sales Promotion ToolsConsumer promotionsSamplesCouponsCash refund offersPrice packsPremiumsFrequency programsPrizesPatronage awardsFree trialsWarrantiesTie-in and cross promotions

Point-of-purchase displays and demonstrations

Trade promotionsPrice-offAllowancesFree goods

Business and sales-force promotions

Trade shows and conventions

Sales contestsSpecialty advertising

Sales Promotion Objectives

Attract new usersReward loyal customersIncrease repurchase ratesAttract brand switchers

Advertising vs. PromotionReasons for decreasing advertising-to-sales-promotions ratios:Top management acceptance of promotionIncrease in number of brandsCompetitors use promotions frequentlyBrands seen as similarConsumers more price-orientedTrade demands more dealsDeclining advertising efficiency

Major Sales Promotion Decisions

Establish objectivesSelect the toolsDevelop the programPretest the programImplement and control programEvaluate the results

Events ObjectivesIdentify with a particular target market or life style

Increase awareness of company or product name

Create or reinforce perceptions of key brand image associations

Enhance corporate image

Create experiences and evoke feelings

Express commitment to the community or on social issues

Entertain key clients or reward key employees

Permit merchandising or promotional opportunities

Major Sponsorship Decisions

Choosing event opportunitiesDesigning sponsorship programsEvent creationMeasuring sponsorship activities

Creating Experiences

Experiential marketing not only communicates features and benefits but also connects a product or service with unique and interesting experiences.

Public Relations

Public—any group that has an actual or potential interest in or impact on a company’s ability to achieve its objectives.

Public relations (PR)—includes a variety of programs to promote or protect a company’s image or individual products.

PR Department Functions

Press relationsProduct publicityCorporate communicationLobbyingCounseling

Marketing Public Relations (MPR)Launching new productsRepositioning a mature productBuilding interest in a product categoryInfluencing specific target groupsDefending products that have encountered public problems

Building the corporate image in a way that reflects favorably on its products

Major Tools in Marketing PR

PublicationsEventsSponsorshipsNews

SpeechesPublic-service activities

Identity media

Major Decisions in Marketing PR

Establish marketing objectivesChoose messages and vehiclesImplement and evaluate the plan