15 Marketing

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15-2Copyright 2009 Pearson Education South Asia Pte Ltd

Learning Objectives

After studying this chapter, you should be able to:1. Define the roles of advertising in the promotion mix

2. Describe the major decisions involved indeveloping an advertising program

3. Define the role of public relationships in thepromotion mix

4. Explain how companies use public relations to

communicate with and influence important publics


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Chapter Outline

1. Advertising2. Public Relations


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Advertising

Developing Advertising Programs Setting advertising objectives

Setting the advertising budget

Developing advertising strategy

Evaluating advertising campaigns


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Advertising

Developing Advertising Programs


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Setting Advertising Objectives An advertising objectiveis a specific

communication task to be accomplished with

a specific target audience during a specifictime.

Objectives are classified by their primarypurpose

Inform

Persuade

Remind

Advertising


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Advertising

Setting Advertising Objectives Informative advertisingis used when

introducing a new product category; the

objective is to build primary demand. Comparative advertisingdirectly or

indirectly compares the brand with one ormore other brands.



Advertising

Setting Advertising Objectives Persuasive advertisingis important with

increased competition to build selective

demand. Reminder advertisingis important with

mature products to help maintain customerrelationships and keep customers thinking

about the product.



Advertising

Setting the Advertising Budget Factors to consider when setting the budget

Product life-cycle stage

Market share



Advertising

Setting the Advertising Budget Product life-cycle stage

New products require larger budgets

Mature brands require lower budgets



Advertising

Setting the Advertising Budget Market share

Building or taking market share requires larger

budgets. Markets with heavy competition or high

advertising clutter require larger budgets.

Undifferentiated brands require larger budgets.



Advertising

Developing the Advertising Strategy Advertising strategyis the strategy by which

the company accomplishes its advertising

objectives. It consists of two major elements

Creating the advertising message

Selecting the advertising media


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Advertising

Creating the Advertising Message Advertisements need to break through the

clutter.

Gain attention. Communicate well.


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Advertising

Creating the Advertising Message Advertisements need to be better planned,

more imaginative, more entertaining, and

more rewarding to consumers. Madison & Vinethe intersection of MadisonAvenue and Hollywoodrepresents themerging of advertising and entertainment.


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Advertising

Creating the Advertising Message Steps in creating effective advertising

messages

1. Message strategy2. Creative concept

3. Message execution


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Advertising

Creating the Advertising Message Message strategyis the general message

that will be communicated to consumers.

Identifies consumer benefits


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Advertising

Creating the Advertising Message Message executioncaptures the target

markets attention and interest, and caninclude the following execution styles.

Slice of life

Lifestyle

Fantasy Mood or image

Musical

Personality symbol

Technical expertise

Scientific evidence Testimonial evidence

or endorsement


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Advertising

Creating the Advertising Message Message executionalso includes:

Tone

Positive or negative

Attention-getting words

Format

Illustration

Headline

Copy


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Advertising

Selecting Advertising Media Major steps include

1. Deciding on reach-frequency-impact

2. Selecting media vehicles

3. Deciding on media timing


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Advertising

Selecting Advertising Media Reachis a measure of the percentage of

people in the target market who are exposedto the ad campaign during a given period oftime.

Frequencyis a measure of how many timesthe average person in the target market is

exposed to the message.

Impactis the qualitative value of a messageexposure through a given medium.


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Advertising

Selecting Advertising Media Selecting media vehiclesinvolves decisions

that present the media effectively andefficiently to the target customer and mustconsider the messages

Impact

Effectiveness

Cost


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Advertising

Selecting Advertising MediaNarrowcasting versus shotgun approaches

Narrowcasting focuses the message on selected

market segments. Lower cost

Targets more effectively

Engages customers better


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Advertising

Selecting Advertising Media When selecting specific media vehicles, the

planner must consider cost of the media ascompared to its effectiveness by evaluating

Audience quality

Audience engagement

Editorial quality


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Advertising

Selecting Advertising Media When deciding on media timing, the planner

must consider

Seasonality Pattern of the advertising

Continuityscheduling within a given period

Pulsingscheduling unevenly within a givenperiod


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Advertising

Evaluating Advertising Effectiveness andReturn on Advertising Investment

Types of evaluation include measuring

Communication effects Sales and profit needs


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Advertising

Evaluating Advertising Effectiveness andReturn on Advertising Investment

Communication effectsindicate whether thead and media are communicating the admessage well and can be tested before orafter the ad runs.

Sales and profit effectscompare past sales

and profits with past expenditures or throughexperiments.


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Advertising

Other Advertising Considerations How will the company organize its advertising

function?

Who will perform which advertising tasks? How will the company adapt its advertising

strategies and programs to internationalmarkets?


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Advertising

Other Advertising Considerations Organizing for advertising can include

A salesperson in smaller companies.

Advertising departments and outside agenciesin larger companies


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Advertising

Other Advertising Considerations Advertising agencies

Employ specialists

Provide an outside view to problem-solving


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Advertising

Other Advertising Considerations International advertising decisions

Adapting to local markets

Standardization

Localization


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Advertising

Other Advertising Considerations Challenges in international advertising

Varying media costs

Regulations

Restrictions on media spending and the natureof the media claims


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Public Relations

Public relationsinvolves building goodrelations with the companys various publicsby obtaining favorable publicity, building up agood corporate image, and handling or

heading off unfavorable rumors, stories, andevents.

Public relations is used to promote product,

people, ideas, and activities.


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Public Relations

Public relations department functions include Press relations or press agency

Product publicity

Public affairs

Lobbying

Investor relations

Development


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Public Relations

Press relationsor press agencyinvolvesthe creation and placing of newsworthyinformation to attract attention to a person,product, or service.

Product publicityinvolves publicizingspecific products.

Public affairsinvolves building and

maintaining national or local communityrelations.


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Public Relations

Lobbyinginvolves building and maintainingrelations with legislators and governmentofficials to influence legislation and regulation.

Investor relationsinvolves maintainingrelationships with shareholders and others inthe financial community.

Developmentinvolves public relations with

donors or members of nonprofit organizationsto gain financial or volunteer support.


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Major Public Relations Tools

News Speeches

Special events

Written materials

Audiovisualmaterials

Corporate identitymaterials

Public serviceactivities

Buzz marketing

Social networking Mobile tour

marketing

Internet

15 Marketing

Documents

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