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Communications and Communications and Advertising StrategyAdvertising Strategy
Chapter TenChapter Ten
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Key Learning PointsKey Learning Points
Basic model of communication and how Basic model of communication and how technology is changing that modeltechnology is changing that modelElements of an IMC programElements of an IMC programSetting advertising goals and selecting Setting advertising goals and selecting target audiencestarget audiencesDeveloping message strategiesDeveloping message strategiesKey elements of media planningKey elements of media planningHow advertising budgets are setHow advertising budgets are setAlternative approaches to evaluating Alternative approaches to evaluating advertising spendingadvertising spending
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““Forward-looking organizations are Forward-looking organizations are stressing a concept called integrated stressing a concept called integrated marketing communications (IMC), in which marketing communications (IMC), in which the marketing manager does not think of the marketing manager does not think of all the elements of the communications all the elements of the communications mix as communicating separate mix as communicating separate messages. Instead, these messages are messages. Instead, these messages are coordinated to reinforce what each is coordinated to reinforce what each is saying and to present customer confusion saying and to present customer confusion from conflicting messages.from conflicting messages.
- Russell S. Winer
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Figure 10.2Figure 10.2Model of the Communication Model of the Communication
ProcessProcess
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Figure 10.3Figure 10.3Traditional Mass Communication Traditional Mass Communication
ModelModel
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Figure 10.4Figure 10.4Modified Mass Communication Modified Mass Communication
ModelModel
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Discussion QuestionsDiscussion Questions
1.1. How should marketing managers How should marketing managers manage brand communities?manage brand communities?
2.2. What are the ethical aspects involved What are the ethical aspects involved with managing brand communities? with managing brand communities?
3.3. Who is really the sender and who is the Who is really the sender and who is the receiver?receiver?
Successfully managing brand Successfully managing brand communities is a key challenge facing communities is a key challenge facing marketers today.marketers today.
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Figure 10.5Figure 10.5Traditional Trade-off Between Traditional Trade-off Between
Richness and ReachRichness and Reach
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ActivityActivity
Where would you place each of the marketing communication techniques on the chart?
* Personal selling* Opt-in e-mail ads* Newspaper ads* Banner ads* Network TV ads* Direct mail ads* Magazine ads* Outdoor ads* Radio ads
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Figure 10.6Figure 10.6Elements of the Communication Elements of the Communication
MixMix
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Table 10.1 Table 10.1 Advertising Expenditures: Advertising Expenditures:
Consumer vs. Business-to-Business Consumer vs. Business-to-Business ProductsProducts
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Integrated Marketing Integrated Marketing CommunicationsCommunications
Advertising: Advertising: DefinitionDefinition
AdvantagesAdvantages
DrawbacksDrawbacks
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Direct marketingDirect marketingDirect marketing definedDirect marketing defined
Direct marketing formsDirect marketing forms
Key advantagesKey advantages
Key drawbacksKey drawbacks
Integrated Marketing Integrated Marketing CommunicationsCommunications
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Integrated Marketing Integrated Marketing CommunicationsCommunications
Sales promotionSales promotionSales promotion definedSales promotion definedSales promotion classificationSales promotion classificationAdvantagesAdvantagesDisadvantagesDisadvantages
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Integrated Marketing Integrated Marketing CommunicationsCommunications
Publicity and public relationsPublicity and public relationsPublicity definedPublicity defined
Key advantageKey advantage
Key drawbackKey drawback
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Integrated Marketing Integrated Marketing CommunicationsCommunications
Personal sellingPersonal sellingPersonal selling definedPersonal selling definedKey advantagesKey advantagesKey drawbacksKey drawbacks
Miscellaneous communication Miscellaneous communication activitiesactivities
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Table 10.2Table 10.2Top 10 U.S. Total Advertising Top 10 U.S. Total Advertising
SpendersSpenders
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Table 10.3Table 10.3Top B-to-B Advertising SpendersTop B-to-B Advertising Spenders
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Table 10.4Table 10.4Top Global Advertisers in 2008Top Global Advertisers in 2008
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Advertising ManagementAdvertising Management
6M Model of 6M Model of Communications PlanningCommunications Planning
MarketMarket
MissionMission
MessageMessage
MediaMedia
MoneyMoney
MeasurementMeasurement
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Advertising ManagementAdvertising Management
Market: Selecting the target audienceMarket: Selecting the target audienceSelecting target audiencesSelecting target audiences
Including non-customer targetsIncluding non-customer targets
Mission: Setting advertising goalsMission: Setting advertising goalsSales is typically not used as an Sales is typically not used as an advertising objective except for direct-advertising objective except for direct-response ads.response ads.
Models of how advertising creates a Models of how advertising creates a customer response provide intermediate customer response provide intermediate goals.goals.
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Figure 10.7Figure 10.7Models of Advertising ResponseModels of Advertising Response
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Figure 10.8Figure 10.8Advertising Goals over the PLCAdvertising Goals over the PLC
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Figure 10.9Figure 10.9Advertising Goals over the PLCAdvertising Goals over the PLC
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Advertising ManagementAdvertising Management
Message: Developing the Message: Developing the message strategymessage strategy
Emotional appealsEmotional appealsAttempt to appeal to an Attempt to appeal to an underlying psychological aspect underlying psychological aspect of the purchase decision.of the purchase decision.There are several general types.There are several general types.Emotional appeals may enhance Emotional appeals may enhance recall and brand liking.recall and brand liking.
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Advertising ManagementAdvertising Management
Creative Execution ApproachesCreative Execution Approaches
Straight-sell or Straight-sell or factual messagefactual message
Scientific/technical Scientific/technical evidenceevidence
ComparisonsComparisons
TestimonialsTestimonials
AnimationAnimation
HumorHumor
Product Product demonstratiodemonstrationn
Personality Personality symbolssymbols
Slice of lifeSlice of life
FantasyFantasy
DramatizatioDramatizationn
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Figure 10.10, Part AFigure 10.10, Part AClassification of Copy-Testing Classification of Copy-Testing
MethodsMethods
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Figure 10.10, Part BFigure 10.10, Part BClassification of Copy-Testing Classification of Copy-Testing
MethodsMethods
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Advertising ManagementAdvertising Management
Media: Selecting mediaMedia: Selecting mediaSelecting media has become Selecting media has become more difficult due to alternative more difficult due to alternative and minor media.and minor media.
Budgets are being shifted Budgets are being shifted towards new media.towards new media.
Media planning has three aspects.Media planning has three aspects.
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Advertising ManagementAdvertising Management
TelevisionTelevisionStrengthsStrengthsWeaknessesWeaknesses
MagazinesMagazinesStrengthsStrengths
RadioRadioStrengthsStrengthsWeaknessesWeaknesses
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Advertising ManagementAdvertising Management
Cable TVCable TVStrengthsStrengths
WeaknessesWeaknesses
OutdoorOutdoorStrengthsStrengths
WeaknessesWeaknesses
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Table 10.5Table 10.5U.S. Measured Media for All U.S. Measured Media for All
AdvertisersAdvertisers
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Table 10.6Table 10.6U.S. Online Advertising SpendingU.S. Online Advertising Spending
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Figure 10.11Figure 10.11Google PageGoogle Page
Visit YouTube to learn more about Google’s advertising model.
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Table 10.7Table 10.7Google PageGoogle Page
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Advertising ManagementAdvertising Management
New media:New media:Influencing word-of-mouthInfluencing word-of-mouth
Up-and-comers (other media)Up-and-comers (other media)Many media are too new to Many media are too new to evaluate in terms of evaluate in terms of effectiveness.effectiveness.
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Advertising ManagementAdvertising Management
Media: selecting mediaMedia: selecting mediaChoosing the specific vehiclesChoosing the specific vehiclesAnalyzing mediaAnalyzing mediaContextual fitContextual fitDuplication and wearoutDuplication and wearout
Scheduling advertisingScheduling advertisingSetting the advertising budgetSetting the advertising budget
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Figure 10.12Figure 10.12Relationship between Cumulative Relationship between Cumulative
Ad Spending and Market ShareAd Spending and Market Share
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Table 10.8Table 10.8Top 5 and Bottom 5 Advertisers in Top 5 and Bottom 5 Advertisers in
Sales per Dollar of AdvertisingSales per Dollar of Advertising
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Table 10.9Table 10.9Top 5 and Bottom 5 Industry Ad-Top 5 and Bottom 5 Industry Ad-
to-Sales Ratio in 2001 by SIC Codeto-Sales Ratio in 2001 by SIC Code
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Advertising ManagementAdvertising Management
Measure: Measuring Measure: Measuring Advertising EffectsAdvertising Effects
Tracking studies over timeTracking studies over time
ExperimentationExperimentation
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Advertising ManagementAdvertising Management
Objective guaranteesObjective guarantees
Marketing mix modelingMarketing mix modeling
Technology’s impact on Technology’s impact on advertisingadvertising
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Executive SummaryExecutive Summary
Communication theory underlies Communication theory underlies marketing communications.marketing communications.IMC has become central to business’ IMC has become central to business’ communication strategies.communication strategies.The 6M model of communication guides The 6M model of communication guides the advertising management process.the advertising management process.New communication technologies have New communication technologies have made media decisions more complex.made media decisions more complex.Multiple methods of assessing Multiple methods of assessing advertising effectiveness are being used.advertising effectiveness are being used.