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Integrated Marketing CommunicationsOutline

PART 1: Integrated Marketing Communications: Processes, Brand Equity, and the Marcom Environment

1. Overview of Integrated Marketing Communications and the Marcom Process

2. Marcom’s Challenges: Enhancing Brand Equity, Influencing Behavior, and Being Accountable

3. Ethical, Regulatory, and Environmental Issues in Marketing Communications

PART 2: The Fundamental Marcom Decisions: Targeting, Positioning, Objective Setting, and Budgeting

4. Marcom Targeting 5. Marcom Positioning

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6. Marcom Objective Setting and Budgeting

PART 3: Marcom for New Products, Store Signage, and Point-of-Purchase Communications

7. Facilitation of Product Adoption, Brand Naming, and Packaging 8. On- and Off-Premise Signage and Point-of-Purchase Communications

PART 4: Advertising Management 9. Overview of Advertising Management: Messages, Media, and Measurement

10. Creating Effective and Creative Advertising Messages 11. Selecting Message Appeals and Picking Endorsers 12. Assessing Ad Message Effectiveness 13. Planning for and Analyzing Advertising Media 14. Using Traditional Advertising Media 15. Employing the Internet for Advertising 16. Using Other Advertising Media

PART 5: Sales Promotion Management, Marketing-Oriented Public Relations, and Sponsorships

17. Sales Promotion and the Role of Trade Promotions 18. Consumer-Oriented Promotions: Sampling and Couponing 19. Consumer-Oriented Sales Promotions: Premiums and Other Promotional Methods

20. Marketing-Oriented Public Relations and Sponsorships

Chapter 1

OVERVIEW OF INTEGRATED MARKETING

COMMUNICATIONS AND THE MARCOM PROCESS

Teaching NotesWhy Study Promotion Management and Integrated Marketing Communications?

Promotion management is at the heart of successful marketing: customers can not purchase and use products they do not know about.

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Studying promotion management involves learning psychological and communication theory and applying it to real life situations.

Promotion management promotes creativity in defining target markets, setting communication objectives, and devising message strategies – much more than wrote memorization. Students should realize that promotional strategy, as with marketing strategy in general, usually can be conceived in different and equally successful ways. Rarely, if ever, is there any single “best way’ to conduct a promotional strategy. For example, marketers may define target markets by differing groups of buyers’ preferred benefits, and ad agency creatives may come up with very different message types to convey those benefits.

Studying promotion management (versus just studying advertising) helps to learn strategic planning by setting goals, planning programs to meet those goals and choosing between different resource allocations to finance those programs.

Studying promotion management helps make students better consumers by understanding different promotional techniques used by business.

Understanding promotion management can help students in their own life in their job search (preparing resumes, cover letter, job interviewing) and in managing social and professional organizations.

The Internet and related electronic digital communication is changing how customers learn about products at an incredible rate, and promotional strategy is at the heart of this change.

Chapter ObjectivesChapter introduces marketing communications and shows why marketing communications are such an important part of modern marketing. Key introductory topics presented are the promotional mix, the importance of integrated marketing communications and the fundamental goal of enhancing brand equity.

Chapter Topics1. The nature of marketing communications

The marketing communicator’s tools

Marketing communication at the brand level

2. The integration of marketing communications

(IMC Overview)

A definition of IMC

Key features of IMC

Changes in marketing communication practices

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Obstacles to implementing IMC

Chapter 2

MARCOM’S CHALLENGES: ENHANCING BRAND

EQUITY, INFLUENCING BEHAVIOR, AND BEING

ACCOUNTABLE

Teaching Notes Chapter 2 presents a model of brand-level decision processes and reinforces

building brand equity as an IMC goal. Managing communications, like all parts of an enterprise, is part of a system that

has goals, expends resources, and needs a measurement system to balance meeting goals and allocating resources. In other words, MarCom requires a managerial control system that insures that planned objectives are met and that the objectives are met within budget constraints.

Final customers are increasingly better-educated and informed because of marketers’ communication efforts. This puts added pressure on marketers to cater to the target audience’s increased product and buying opportunities knowledge. For example, sophisticated buyers can quickly seek out product evaluations, availability, and prices over the Internet.

Retailers have scanner data, which gives them immediate customer data. This information also can help identify effective and ineffective promotion strategy. For example, the effect of a newspaper ad run on a Tuesday can be monitored immediately, as can the effect of changing an in-store retail display.

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Successful IMC management must be proactive, not reactive.

Chapter ObjectivesThis chapter’s general purpose is to build a comprehensive framework that fully integrates the various aspects of managerial decision making related to marketing communications (MarCom) strategy and tactics. The customer’s perspective of brand equity drives a firm’s ability to increase brand loyalty, build market share, and charge relatively higher prices.

Chapter Tie-ins Brand equity is enhanced when customers become more familiar with a brand by

holding favorable, strong and perhaps unique brand associations in memory; Chapter 2 shows how the communications decision process does this.

Making decisions so that firm is speaking with a “single voice” about the brand (goal of IMC).

Intro marketing tie-ins: Successful IMC rests on highly targeted (micromarketing, niche marketing)

market segmentation. SWOT, or situation analysis, is key to IMC plan; role of environmental scanning

of economic, competitive, technological, social-cultural, demographic, and regulatory influences in monitoring and managing the environment.

Chapter Topics1. A model of the marketing communications decision process2. Making brand-level MarCom decisions

Fundamental MarCom decisions MarCom implementation decisions

3. The concept of brand equity More than just a name Nature and importance of brand equity Enhancing brand equity Characteristics of world-class brands

4. Co-branding and ingredient branding

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Chapter 3

ETHICAL, REGULATORY, AND ENVIRONMENTAL

ISSUES IN MARKETING COMMUNICATIONS

Teaching Notes Knowledge of regulation and the law is critical to IMC planning because of

complexity of communication, and different ways in which customers may interpret and respond to promotional communications.

Ethical issues are important in considering different courses of action, and as a potential for targeting customers with “green” related products.

The practices surrounding advertising regulation are often difficult for students to remember. If this chapter is covered in depth, it may be helpful for students to bring their texts to class to follow the different regulatory procedures and definitions.

The criticisms of advertising that center around causing people to buy or do things they ordinarily would not do can generate some good class discussion dealing with different issues

To what extent does advertising actually cause behaviors? This can lead into personal responsibility issues—at what point are individuals responsible for the consequences of their actions?

How powerful is advertising? This can lead into the impact of knowledge on behavior—to what extent does being aware or having knowledge necessarily lead to behavior? Students usually are not aware that advertising has relatively minimal power to get people to do things they do not want to do.

What types of situations lead buyers to make irrational decisions (e.g., lack of knowledge or ability to understand products or financing decisions)? Students are often unaware that in a free market economy one firm’s unethical practices open up both product and advertising possibilities for ethical businesses.

Chapter Objectives1. Explain the role and importance of governmental efforts to regulate marketing

communications.

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2. Understand deceptive advertising and the three elements that guide the determination of whether a particular advertisement is potentially deceptive.

3. Explain the regulation of unfair business practices and the three major areas where the unfairness doctrine is applied.

4. Understand the role that states perform in regulating unfair or deceptive marketing communications practices.

5. Understand the process of advertising self-regulation.6. Appreciate the ethical issues in marketing communications.7. Explain why the targeting of products and marketing communications is a

heatedly debated practice.8. Appreciate the role of marketing communications in green marketing.9. Understand the principles that apply to all environmental (green) marketing

efforts.

Chapter Tie-ins Information processing, ELM, and deceptive advertising: whether or not an ad is

deceptive depends on how a “reasonable” member of the target audience is led to act based on how they processed an ad, rather than just the information in the ad. How a reasonable member could be led to act is an excellent review of existing attitudes, involvement level and message processing.

All IMC plans must be enacted in the larger, macroenvironment of state and federal law, consumer activist groups, competition and customers.

Chapter Topics1. Regulation of marketing communications

When is regulation justified? Regulation of marketing communications by federal agencies Regulation of marketing communications by state agencies Advertising self-regulation

2. Ethical issues in marketing communications The ethics of targeting Ethical issues in advertising Ethical issues in public relations Ethical issues in packaging Ethical issues in sales promotions Ethical issues in online marketing Fostering ethical marketing communications

3. Green marketing communications

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Green marketing initiatives Guidelines for green marketing

4. Summary

Chapter 4

MARCOM TARGETING

Teaching Notes

Understanding segmentation is crucial to successful IMC and marketing strategy in general. This chapter presents two key aspects to demographic analysis.

First, the study of demographic trends can identify opportunities for marketers (e.g., aging populations require more medically related products, sensitivity to advertising appeals diminishes with older consumers).

Second, media identify their audiences through demographic analysis, so promotional strategy requires demographic descriptions of segments to make media buys. However, students (and many marketers for that matter) often mistakenly assume that demographics are the key to segmentation. Demographic information alone cannot distinguish buyers from non-buyers and thus gives no true leverage points for marketers to devise strategy and no insight into copy strategy. Furthermore, just because a group looks to be homogeneous (like college students), the group may be very diverse in brand and product preferences, shopping behaviors, information acquisition, and existing attitudes and knowledge.

To contrast the strengths and weaknesses of demographic analysis and segmentation, you can ask the class for a show of hands as to who uses a product that is known to be popular among college students (e.g., beverages, snack foods, HABAs , etc.). Most will raise their hands. This helps demonstrate that to a marketer, knowledge of a group like this is very profitable given the high frequency of users. Basic demographic information tells marketers how many are in the overall group of college students, where they live, whether the group is getting larger or smaller, and so on.

However, demographics do not separate buyers from non-buyers within the same demographic category, and demographics do not tell us how to promote a product. Note that just knowing that a set of demographic characteristics corresponds to relatively high product use can not separate buyers from non-buyers once most people are in that group (as with a college class). Most important for marketing communications, demographics do not tell us how or what to communicate to potential buyers to either get or keep their brand loyalty.

Lifestyle or psychographic information can give an idea of what users are like, and potential ways in which a product could fit into their lifestyle. Lifestyle

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analysis also is key to designing promotional communications’ content—how actors are dressed, what social situations are used, even issues such as what types of cars actors are shown in and the types of homes that might be used. You can ask students what general lifestyle issues tie into product use such as convenience, impulsiveness, social issues, and general beliefs or opinions that relate to product use.

Chapter Objectives1. Discuss the importance of targeting marketing communications to specific consumer groups and realize that the targeting decision is the initial and most fundamental of all marcom decisions.

2. Understand the role of behaviorgraphics in targeting consumer groups.3. Describe the nature of psychographic targeting and the VALS system.4. Appreciate the major demographic developments such as changes in the age structure of the population and ethnic population growth.

5. Explain the meaning of geodemographics and understand the role for this form of targeting.

6. Recognize that any single characteristic of consumers—whether their age, ethnicity, or income level—likely is not a sufficient basis alone for sophisticated marcom targeting.

Chapter Topics1. Targeting customers and prospects2. Demographic targeting

Population growth and geographic dispersion The changing age structure

The baby-boom generation Mature customers Children and teenagers Young adults

3. The ever-changing American household4. Ethnic population developments

African-Americans Hispanic-Americans (Latinos) Asian-Americans

5. Psychographic targeting6. Geodemographic targeting

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Chapter 5

MARCOM POSITIONING

Teaching Notes If you teach your class with a strong theory and applications emphasis, then

chapters 4 and 5 may be the most important chapters in the text. The ELM gives students a model for understanding how receivers actually process promotional communications, and the attitude model can be used to explain existing beliefs (which will in part determine how a message is processed) and potential leverage points for persuasion. The attitude model also offers a good basis for demonstrating how basic promotional research can be designed using statements about products’ features or benefits and the importance of those benefits. Finally, this chapter introduces involvement as a major determinant in how messages will be processed.

This chapter also reinforces the critical point that effective promotional communications cannot be designed without centering on receiver factors such as existing beliefs, involvement level, motivation, opportunity, and ability to process communications.

If the instructor is interested, philosophy of science and related theoretical issues can be brought up with the attitude model and the CPM. The TORA helps show how theories can be helpful without necessarily being “true”. In other words, we do not need to prove that attitudes actually exist in the “mind” in order to effectively use the model. A basic understanding of “hypothetical constructs” can help students see how theory and practice can be combined, thus demonstrating the value of theory to practitioners.

Chapter Objectives1. Introduce the concept and practice of brand positioning.

2. Explain that positioning involves the creation of meaning and that meaning is a constructive process involving the use of signs and symbols.

3. Give details about how brand marketers position their brands by drawing meaning from the culturally constituted world.

4. Discuss two models of consumer behavior: the consumer processing model (CPM) and the hedonic, experiential model (HEM).

5. Describe the eight stages of consumer information processing.

6. Explain the fundamental features of the hedonic, experiential model.

Chapter Tie-ins Fundamental marketing tie-in: (“All marketing activities begin with the

consumer.”) Promotional strategy keys on building associations in customers’

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minds and encouraging certain actions. Just as marketing begins with understanding consumer wants and needs, promotional strategy begins with an understanding of how consumers process information and use their existing learned feelings and beliefs.

Related marketing tie-in: Marketing segmentation centers on customer differences that are strategic to marketers (i.e., differences that can be addressed through marketers’ actions); successful promotional strategy also is dependent on just such customer differences.

Understanding different processing models helps show the subjective nature of communication due to differences in consumer processing and the different associations customers have with products (either with the same customer at different times or contexts, or to different customers).

Building brand equity: a main goal of brand equity is building and reinforcing brand associations consumers have. Understanding processing models helps meet this goal.

Reinforces the “shared thought” goal of successful communications through understanding how to build desired associations in receivers’ mind.

Later course tie-ins: Processing models can be used to evaluate creative strategies and existing message campaigns. Existing associations will be used to design and evaluate creative platforms.

Chapter Topics1. Positioning in Theory

The Meaning of Meaning Meaning Transfer: From Culture to Object to Consumer

2. Positioning in Practice: Benefit Positioning Attribute Positioning Repositioning a Brand

3. Implementing Positioning The Consumer Processing Model (CPM) The Hedonic, Experiential Model (HEM)

4.Summary

Chapter 6

MARCOM OBJECTIVE SETTING AND BUDGETING

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Chapter Objectives1. Understand the process of marcom objective setting and the requirements for good

objectives.2. Describe the hierarchy-of-effects model and its relevance for setting marcom

objectives.3. Understand the role of sales as an advertising objective and the logic of vaguely

right versus precisely wrong thinking.4. Understand the nature and importance of marcom budgeting.5. Explain the relation between a brand’s share of market (SOM) and share of voice

(SOV).6. Explain the various rules of thumb, or heuristics, that guide practical budgeting.

Chapter Topics1. Setting Marcom Objectives

The Hierarchy of Marcom Effects Requirements for Setting Suitable Marcom Objectives Should Marcom Objectives Be Stated in Terms of Sales?

The Traditional View A Heretical View (Antitheses)

2. Marcom Budgeting Budgeting in Theory Practical Budgeting Methods

Chapter 7

FACILITATION OF PRODUCT ADOPTION, BRAND

NAMING, AND PACKAGING

Teaching Notes

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Chapter 7 presents the basic new product models found in introductory marketing courses, and then applies these models to communication strategies. This offers a good opportunity to both review basic marketing material and show how it can be applied to promotional strategy.

A main marketing concept that students seem to continually miss is how consumers for the same product are still different and require different marketing strategies. For example, students will usually assume that new customers are pretty much the same and all share a need for awareness. However, these customers will differ on MOA factors discussed in Chapter 7, and effective communications must incorporate these differences into communication strategy.

Chapter Objectives1. Appreciate marcom’s role in facilitating the introduction of new products.2. Explain the innovation-related characteristics that influence adoption of new

products.3. Understand efforts employed by marketing communicators to manage the

diffusion process.4. Appreciate word-of-mouth communications in facilitating new product adoption.5. Be familiar with the role of “buzz” in facilitating product adoption.6. Understand the role of brand naming and the requirements for developing

effective brand names.7. Explain the activities involved in the brand-naming process.8. Appreciate the role of logos.9. Describe the various elements underlying the creation of effective packages.10. Explain the VIEW model for evaluating package effectiveness.11. Describe the five-step package design process.

Chapter Tie-ins Intro Marketing tie-ins: New users versus existing users. The majority of

promotional efforts are towards existing users simply because at any given time new customers are a very small fraction of customers. However, new products and/or customers are the future lifeblood of any business and require special marketing efforts. A basic goal of successful marketing is turning new customers into loyal customers.

Chapter 4&5 tie-ins: Awareness, trier and repeater classes will have product knowledge and brand schemas, as well as differences in MOA to process communications. If a new product requires a brand switch for consumers, marketers may also expect resistance and counterarguing to poorly designed communications.

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Chapter 7 continues the theme of brand equity as the critical issue in marketing communications. As equity relates to associations with and actions toward a brand, knowledge of the attitude model, ELM, and learning all help to understand how brand equity can be built. Logos, packages and P-O-P material all can be tied into building brand equity.

Chapter 1 tie-in: IMC requires that all communication efforts are concentrated on the consumer to build brand equity. Packaging, product design, displays, logos and brand names must all be focused on the target market and the desired positioning of the brand.

Source effects tie-in: Word-of-mouth is critical in new product adoption. One of the keys in word-of-mouth effectiveness is that the source is not identified with the advertiser.

Chapter Topics1. New products and marketing communications

The diffusion process Stimulating word-of-mouth influence Creating “buzz”

2. Brand naming What constitutes a good brand name? Some exceptions to the “rules” The branding process The role of logos

3.Packaging Packaging structure Evaluating the package: The VIEW model Designing a package

4.Summary

Chapter 8

ON- AND OFF-PREMISE SIGNAGE AND POINT-OF-

PURCHASE COMMUNICATIONS

Chapter Objectives1. Appreciate the role and importance of out-of-home, or off-premise, advertising.2. Understand billboard advertising’s strengths and limitations.3. Appreciate the role and importance of on-premise business signage.

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4. Review the various forms and functions of on-premise signage.5. Appreciate the role and importance of point-of-purchase advertising.6. Examine the tasks that P-O-P advertising accomplishes.7. Review evidence of P-O-P’s role in influencing consumers’ in-store decision making.8. Examine empirical evidence revealing the effectiveness of P-O-P displays.9. Appreciate the importance of measuring audience size and demographic 10. characteristics for out-of-home as well as in-store advertising messages.

Chapter Tie-ins Intro marketing and consumer behavior tie-ins: The complexity of consumer

behavior that marketers must deal with is well exemplified through P-O-P behaviors. Customers evaluate products at the point-of-sale using package information, cues and displays. Students can usually point to several examples of functional/CPM and ELM type appeals, and HEM type appeals. A product as “simple” as hair shampoo may have strong functional or hedonic qualities for different consumers—a fact that packaging must and can address. The POPAI study of consumer buying habits offers a great opportunity to show students how applied marketing research can be used to design more effective P-O-P strategies.

Source effects tie-in: Word-of-mouth is critical in new product adoption. One of the keys in word-of-mouth effectiveness is that the source is not identified with the advertiser.

Retailing tie-in: the POPAI study shows the impact of retail “set” design’s importance on customer impulse purchases.

Chapter Topics1. Out-of-Home (Off-Premise) Advertising

Billboard Advertising Buying Out-of Home Advertising Outdoor Advertising’s Strengths and Limitations Measuring OOH Audience Size and Characteristics A Case Study of Billboard Effectiveness

2. On-Premise Business Signage Types of Signs The ABC’s of On-Premise Signs

3. Point-Of-Purchase Advertising The Spectrum of P-O-P Materials What Does P-O-P Accomplish? P-O-P’s Influence on Consumer Behavior

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A Vital Result of P-O-P: Increased In-Store Decision Making Evidence of Display Effectiveness The Use and Nonuse of P-O-P Materials

Chapter 9

OVERVIEW OF ADVERTISING MANAGEMENT:

MESSAGES, MEDIA, AND MEASUREMENT

Teaching Notes Chapter 9 introduces advertising management—setting objectives, allocating

resources to accomplish those objectives, and the importance of anchoring objective in consumer-based terms. The hierarchy of effects model is applied to setting consumer-based objectives.

The role of promotional efforts as strategic for the business permeates the entire chapter. Setting communication goals, measuring communication effectiveness, and allocating resources all tie into the degree that the enterprise is customer driven.

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Chapter Objectives1. Explain why advertising is an investment in the brand equity bank.2. Describe the functions of advertising.3. Understand the role of advertisement objectives and the requirements for setting

good objectives.4. Describe the hierarchy-of-effects model and its relevance for setting advertising

objectives.5. Explain the distinction between direct and indirect advertising objectives.6. Understand the role of sales as an advertising objective and the logic of “vaguely

right versus precisely wrong” thinking.7. Understand the nature and importance of advertising budgeting.8. Explain the relation between a brand’s share of market (SOM) and share of voice

(SOV).9. Explain the various rules of thumb, or heuristics, that guide practical advertising budgeting.

Chapter Tie-ins Advertising is an investment rather than just an expense—thus exists the

phrase “brand equity”. This can be tied to how consumers use brands to facilitate their purchasing behavior. Depending on class sophistication, this can lead into a discussion of marketing-based measures of business success (e.g., customer-focused) versus accounting/finance-based measures (e.g., income or balance sheet-focused.)

Advertising helps maintain “momentum” by keeping brand and brand associations current in consumers’ minds. All marketing communications have target markets, specific objectives, and budget constraints.

Advertising goals involve much more than just selling the product. Later chapters tie-in: Assessing the advertising plan’s effectiveness is key to a

successful plan. Assessment ideally is in consumer rather than income statement terms—even purchase as success measure can be in loyal versus non-loyal customer groups. Other consumer-based measures can be increased awareness, knowledge of benefits, sampling rates, product inquiries, etc.

Consumer behavior tie-in: Hierarchy of effects: moving customer through stages hopefully culminating in brand loyalty. Hierarchy models are key to setting communication objectives.

Chapter Topics1. Overview

Putting matters in perspective An investment in the brand-equity bank

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2. Advertising functions and process Advertising performs valuable functions Managing the advertising process

3. Setting advertising objectives The hierarchy-of-effects framework Requirements for setting good advertising objectives Is sales (versus pre-sales) an appropriate advertising objective?

4. Budgeting for advertising Advertising budgeting in theory Practical budgeting methods

5. Summary

Chapter 10

CREATING EFFECTIVE AND CREATIVE

ADVERTISING MESSAGES

Teaching Notes Chapter 10 presents managerial issues involved with advertising. Students have

the opportunity to see advertising from the business end rather than just designing ads. The means-ends chain can be used to integrate the ELM, involvement and attitudinal theoretical models (as will be discussed in the tie-in sections).

One important point that the MECCAs and other theoretical models (ELM for example) illustrate is that advertising and promotional strategy is often devised without any formal knowledge of these models. However, the knowledge of the models can help students understand what advertisers may be doing intuitively, and can help students evaluate promotional strategy.

Chapter Objectives1. Appreciate the factors that promote creative and effective advertising.2. Understand a five-step program used in formulating advertising strategy.3. Describe the features of a creative brief.

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4. Explain alternative creative styles that play a role in the development of advertising messages.

5. Understand the concept of means-ends chains and their role in advertising strategy.

6. Appreciate the MECCAS model and its role in guiding message formulation.7. Describe the laddering method that provides the data used in constructing a

MECCAS model.8. Recognize the role of corporate image and issue advertising.

Chapter Tie-ins Consumer behavior tie-ins: The MECCAS approach can be linked to the ELM

model with MECCAS reliance on core values in advertising processing. This helps students understand that to build brand equity, brand attributes must ultimately be tied into what is important (e.g., values) to the consumer.

Marketing research tie-in: Laddering is not always covered in marketing research classes, and learning how laddering is done can help broaden students’ knowledge of practical marketing research for promotional communication.

The ELM and the different creative strategies can be linked to a creative strategies’ abilities to either suppress counterarguing and/or encourage support arguing.

Chapter Topics1. Creating effective advertising

The role of creativity Achieving advertising impact

2. Advertising plans and strategy A five-step program Constructing a creative brief

3. Alternative styles of creative advertising Unique selling-proposition strategy Brand-image strategy Resonance strategy Emotional strategy Generic strategy Preemptive strategy In sum

4. Means-ends chaining and the method of laddering as guides to advertising strategy formulation

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The nature of values Which values are most relevant to advertising Advertising applications of means-ends chains: The MECCAS Model Determining means-ends chains: The method of laddering Practical issues in identifying means-end chains

5. Corporate image and issue advertising Corporate image advertising Corporate issue (advocacy) advertising

6. Summary

Chapter 11

SELECTING MESSAGE APPEALS AND PICKING

ENDORSERS

Teaching NotesChapter 11 continues the discussion of what types of messages can best accomplish marketing communication goals. Students should realize that the actual creative creation of messages is probably an intuitive skill possessed by a relatively small group of individuals. However, knowledge of the effects of different appeals and endorsers is also key to evaluating communications and achieving communication objectives.

Chapter Objectives1. Describe the role of endorsers in advertising.2. Explain the requirements for an effective endorser.3. Appreciate the factors that enter into the endorser-selection decision.4. Discuss the role of Q-ratings in selecting celebrity endorsers.5. Describe the role of humor in advertising.6. Explain the logic underlying the use of fear appeals in advertising.7. Understand the nature of guilt appeals in advertising.8. Discuss the role of sex appeals in advertising, including the downside of such

usage.9. Explain the meaning of subliminal messages and symbolic embeds.

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10. Appreciate the role of music in advertising.11. Understand the role of comparative advertising and the considerations that

influence the use of this form of advertising.

Chapter Tie-ins The importance of message appeals and endorsers: Receiver involvement in most

advertising is relatively low; therefore, straight informational appeals (e.g., “buy this product because . . . “) are not often processed. Effective message appeals and choice of endorser can raise the overall processing level.

The ELM provides a good base to evaluate and understand the impact of different appeals on different audiences.

Prior topics tie-in: Segmentation and audience characteristics are key to using fear and humorous appeals—audience ‘sense of humor’ and fear levels for the proposed appeals must match the communication.

Chapter Topics1. The role of endorsers in advertising

Celebrity and typical–person endorsers Endorser attributes: The TEARS model Endorser selection considerations: The “No-Tears” approach The role of Q-ratings

2. The role of humor in advertising3. The use of appeals to consumer fears

Fear-appeal logic Appropriate intensity

4. The use of appeals to consumer guilt 5. The use of sex in advertising

What role does sex play in advertising? The downside of sex appeals in advertising

6. Subliminal messages and symbolic embeds A challenge

7. The functions of music in advertising Music’s role at the point of purchase

8. The role of comparative advertising Is comparative advertising more effective? Considerations dictating the use of comparative advertising

9. Summary

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Chapter 12

ASSESSING AD MESSAGE EFFECTIVENESS

Teaching Notes Measuring advertising effectiveness is complex because of the variety of

advertising objectives and the behavioral nature of these objectives. While finance and accounting have the privilege of dealing with relatively tangible and easy-to-understand measures such as dollars, time, and rate, advertising must deal with intangibles such as beliefs, feelings and attitudes. Furthermore, at any given time consumers have several different forces acting on their behavior along with a firm’s ads. For example, competitor’s ads, word-of-mouth from friends, other news sources (e.g., Consumer Reports or Internet sites) and other methods within the firm’s promotional efforts (personal selling, coupons) may also influence consumers and interfere with the ads whose effectiveness is being researched.

Another factor that has complicated efforts to measure advertising effectiveness is the basic nature of the advertising business. Advertising is face-paced, and much of the industry centers on capturing new clients with intense personal selling efforts. Many decision makers on the buying side build personal relationships with agency personnel that can cloud efforts to measure advertising effectiveness and the interpretation of those measurements. This is evidenced in the chapter’s discussion of using Nielson’s people meter to measure TV effectiveness.

Chapter Objectives1. Explain the rationale and importance of advertising research.2. Describe the various research techniques used to measure consumers’ recognition

and recall of advertising messages.3. Describe measures of physiological arousal to advertisements.4. Explain the role of persuasion measurement, including pre-post preference testing.5. Explain the meaning and operation of single-source measures of advertising

effectiveness.

Chapter Tie-ins

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Attitude and memory tie-in: Table 11.3 gives an excellent example of how the attitude model is used in actual research. This can be an excellent tie-in to consumer behavior as well as prior text material.

Chapter Topics1. Overview of advertising research

What does message research involve? Idealism meets reality in advertising research Industry standards for advertising research What would a brand management team and its ad agency want to learn from

message research?2. Measures of recognition and recall

Starch readership service Bruzzone tests Burke day-after recall testing

3. Measures of physiological arousal The galvanometer Pulillometer

4. Measures of persuasion The Ipsos-ASI next*TV method The ARS persuasion method

5. Measures of sales response (single-source systems) IRI’s BehaviorScan Nielsen’s SCANTRACK

6. Summary

Chapter 13

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PLANNING FOR AND ANALYZING ADVERTISING

MEDIA

Chapter Objectives1. Describe the major factors used in segmenting target audiences for media planning

purposes.2. Explain the meaning of reach, frequency, gross rating points, target rating points,

effective reach, and other media concepts.3. Discuss the logic of the three-exposure hypothesis and its role in media and

vehicle selection.4. Describe the use of the efficiency index procedure for media selection.5. Distinguish the differences among three forms of advertising allocation:

continuous, pulsed, and flighted schedules.6. Explain the principle of recency and its implications for allocating advertising

expenditures over time.7. Perform cost-per-thousand calculations.8. Interpret the output from a computerized media model.9. Review actual media plans.

Chapter Tie-ins Advertising management. This chapter gives several measurement devices by

which media are selected. For students solely interested in ad communication design and production, this chapter can be a good introduction to the more down-to-earth management issues in advertising.

Media. This chapter enables a quick review of media characteristics discussed in Chapter 13.

Chapter Topics1. Overview2. The media-planning process3. Selecting the target audience4. Specifying media objectives

Reach Frequency Continuity Recency planning Cost considerations

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5. Tradeoffs, tradeoffs, tradeoffs Media planning software Hypothetical illustration

6. The Saab 9-5 media campaign7. The Diet Dr Pepper campaign

Marketing situation and campaign objectives Creative strategy and supportive promotions Media strategy Results

8. Summary

Chapter 14

USING TRADITIONAL ADVERTISING MEDIA

Teaching Notes Media is an active part of any communication rather than just a passive vehicle to

carry the communication. Different media can complement or detract from a message’s ability to meet the advertiser’s goals.

Media selection must be done with an integrated marketing communication approach, where each media/message communication complements one another in their potential impact on target audiences.

Media selection and use, like all other aspects of promotional management, must be matched to several factors. Students have a tendency to idolize high profile

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media such as TV and magazines, and to confuse the role of media and advertising (e.g., the phrases “get some TV coverage” or “get some newspaper coverage). Specific issues are matching target audience characteristics, communication objectives, creative needs, competitor’s current and anticipated actions, and budgetary constraints.

Chapter Objectives1. Describe the five major advertising media.2. Discuss out-of-home advertising and its strengths and limitations.3. Discuss newspaper advertising and its strengths and limitations.4. Discuss magazine advertising and its strengths and limitations.5. Discuss radio advertising and its strengths and limitations.6. Discuss television advertising and its strengths and limitations.

Chapter Tie-ins Segmentation issues: Media choice is ultimately dependent on audience-based

communication objectives. Furthermore, the same target market may be made up of different audiences—audiences may vary by brand awareness or knowledge, media habits and preferences. Catering to the audience is a theme that drives promotion strategy and can be tied to the basic marketing concept of being consumer-focused.

Marketing management issues: Media’s different forms require a managerial focus to balance budget restraints against different potential media mixes to accomplish advertising objectives.

ELM and hedonic processing model tie-in: Different media are processed in different ways. For example, short-lived media (TV, radio) are often processed peripherally while magazines long life and potential for long copy can be used for high involvement audiences.

Chapter Topics1. Overview of major media

Some important terminology: Media versus vehicles Overview and cautionary comments

2. Out-of-home advertising Billboard advertising Buying out-of-home advertising Outdoor advertising strengths and limitations

3. Newspapers Buying newspaper space

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Newspaper advertising strengths and limitations4. Magazines

Buying magazine space Magazine advertising strengths and limitations Magazine audience measurement

5. Radio Buying radio time Radio advertising strengths and limitations Radio audience measurement

6. Television Television programming dayparts Network, spot, syndicated, cable, and local advertising Television advertising strengths and limitations Infomercials Brand placements in television programs Television audience measurement

7. Summary

Chapter 15

EMPLOYING THE INTERNET FOR ADVERTISING

Teaching Notes Media is an active part of any communication rather than just a passive vehicle to

carry the communication. Different media can compliment or detract from a message’s ability to meet the advertiser’s goals.

Media selection must be done with an integrated marketing communication approach, where each media/message communication compliments one another in their potential impact on target audiences.

Media selection and use, like all other aspects of promotional management, must be matched to several factors. Students have a tendency to idolize high profile media such as TV and magazines, and to confuse the role of media and advertising (e.g., the phrases “get some TV coverage” or “get some newspaper coverage). Specific issues are matching target audience characteristics, communication objectives, creative needs, competitor’s current and anticipated actions, and budgetary constraints.

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The Internet is revolutionizing how customers learn about products, and the rapidly coming combination of Internet type access with TV and other electronic media makes promotional strategy one of the most exciting areas of business.

Chapter Objectives1． Appreciate the magnitude, nature and potential for Internet advertising.2． Be familiar with the two key features of Internet advertising: individualization

and interactivity.3． Understand how Internet advertising differs from advertising in conventional

mass-oriented advertising media, as well as how the same fundamentals apply to both general categories of ad media.

4． Understand the various forms of Internet advertising: display ads, rich media, e-mail advertising, Web logs, search engine advertising, and advertising via behavioral targeting.

5． Appreciate the importance of measuring Internet advertising effectiveness and the various metrics used for this purpose.

Chapter Topics1. Overview

The Two i’s of the Internet: Individualization and Interactivity The Internet Compared with Other Ad Media Internet Advertising Formats

2. Web Sites2. Display or Banner Ads3. Rich Media: Pop-Ups, Interstitials, Superstitials, and Video Ads4. Web Logs (Note: Web logs are discussed in Chapter 7, too.)

Blogs as an Advertising Format The Special Case of Podcasting

5. E-Mail Advertising Opt-In E-Mailing Versus Spam E-Mail Magazines (E-Zines) The Special Case of Wireless E-Mail Advertising

6. Search Engine Advertising The Fundamentals of Search Engine Advertising Purchasing Keywords and Selecting Content-Oriented Web Sites SEA Is Not without Problems

7. Advertising Via Behavioral Targeting (Note: This was introduced in Chapter 4)8. Measuring Internet Ad Effectiveness

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The Tools of Internet Audience Measurement Metrics for Measuring Internet Ad Performance

Chapter 16

USING OTHER ADVERTISING MEDIA

Teaching NotesChapter 16 is an informational chapter about direct advertising, database marketing and opt-in, or permission, e-mail advertising.

Chapter Objectives1. Explain why postal mail advertising is an efficient and effective ad medium.2. Understand p-mail’s five distinctive features compared to mass forms of

advertising.3. Appreciate the role of database marketing, data mining, and lifetime-value

analysis.4. Understand the role of audio-video advertising.5. Appreciate the value of yellow-pages advertising.6. Recognize the growth and role of videogame advertising (adver-gaming).7. Appreciate branded entertainment and brand placements in various venues

(movies, TV, etc.).8. Understand the role of cinema advertising and Web films.

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9. Appreciate the potential value of various other ad media.

Chapter Topics1. Overview2. Direct Advertising

Postal Mail Advertising Audio-Video Advertising

3. Indirect Forms of Advertising Advertising Directed to Homes and Workplaces

4. Advertising Delivered at Private and Public Venues Branded Entertainment: Brand Placements in Movies and Other Media

Chapter 17

SALES PROMOTION AND THE ROLE OF TRADE

PROMOTIONS

Teaching Notes The fundamental objective of sales promotions is to influence behavior—to

precipitate action. This is nearly always done with some form of incentive. As with all other areas of the promotion mix, students must realize that whatever action is being encouraged by marketers, the action must fit into a larger promotional plan (the IMC approach). Promotions often are used for immediate sales response, when this goal may not fit well with an overall market plan.

A final aspect to understanding promotions is the wealth of possible incentives other than money. Recognition (e.g., salesperson of the year, vendor of the year), cooperative promotions with channel members or partners, and first access to new and desirable products are all incentives to encourage and reward desired behaviors.

Depending on the theoretical complexity of the course and capabilities and interests of students, promotion is also an excellent tie-in to operant psychology and its potential role in promotional strategy. This in turn opens the potential discussion area of cognitively based theoretical models (e.g., ELM, attitude) versus behaviorally based models.

This chapter describes several real-life retailing practices that students usually are surprised exist. Examples are slotting allowances, buying back and forward for

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promotions and all the related activities that are routine in the highly competitive retailing world. Given the text’s strong emphasis on building brand equity, many of these practices can be seen as the result of not building brand equity and engaging in short-run promotions to increase sales.

An excellent discussion can be centered on which practices can promote consumer and trade partner franchises, and which practices can injure consumer and trade relationships. Students also need to understand that every practice that reduces potential customer satisfaction opens an opportunity for a competitor.

Chapter Objectives1. Understand the nature and purposes of sales promotions.2. Know the factors that account for the increased investment in sales promotion,

especially those that are trade oriented.3. Recognize the tasks that promotions can and cannot accomplish.4. Appreciate the objectives of trade-oriented promotions and the factors critical to

building a successful trade promotion program.5. Comprehend the various forms of trade allowances and the reasons for their

usage.6. Be aware of forward buying and diverting and how these practices emerge from

manufacturers’ use of off-invoice allowances.7. Appreciate the role of everyday low pricing (EDLP) and pay-for-performance

programs as means of reducing forward buying and diverting.8. Recognize the concept and practice known as efficient consumer response (ECR).9. Appreciate the practice of category management.10. Understand nine empirical generalizations about promotions.

Chapter Topics1. Overview

What Exactly Is Sales Promotion? Promotion Targets

2. Increased Budgetary Allocations to Promotions Factors Accounting for the Shift An Unintended Consequence of Growth: New Accounting Rules

3. What Are Sales Promotion’s Capabilities and Limitations? What Sales Promotions Can Accomplish What Promotions Cannot Accomplish

4. The Role of Trade Promotions5. Trade Allowances

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Major Forms of Trade Allowances: Undesirable Consequences of Off-Invoice Allowances: Forward Buying and

Diverting6. Efforts To Rectify Trade Allowance Problems

Efficient Consumer Response (ECR) Category Management Everyday Low Pricing (EDLP) Pay-for-Performance Programs Customizing Promotions: Account-Specific Marketing

7. Generalizations About Promotions

Chapter 18

CONSUMER-ORIENTED PROMOTIONS: SAMPLING

AND COUPONING

Teaching Notes Chapter 18 continues a discussion of sales-promotion tools available to marketers.

This chapter presents several different promotional techniques that students and students may have difficulty appreciating the differences between each technique. Students can be helped in understanding the differences by using the basics of the promotion's target market and the specific goals of the promotion (e.g., trade relations, inspire the sales force, generate trial purchases, encourage ongoing purchases and reinforce brand images). Students also need to understand whether the reward offered to consumers is immediate or delayed and whether the manufacturer’s objective is to achieve trial impact, customer holding/loading, or image reinforcement. The chapter then turns to specific sales-promotion topics including sampling and couponing. Each topic is explored thoroughly, the strengths and pitfalls of each sales-promotion tool are noted, and advice is given regarding their most effective use.

Chapter Objectives1. Appreciate the objectives of consumer-oriented sales promotions.2. Recognize that many forms of promotions perform different objectives for

marketers.3. Know the role of sampling, the forms of sampling, and the trends in sampling

practice.

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4. Be aware of the role of couponing, the types of coupons, and the developments in couponing practice.

5. Understand the coupon redemption process and misredemption.6. Appreciate the role of promotion agencies.

Chapter Tie-ins Promotional and marketing strategy: Successful promotional strategy requires that

the customer behaviors that marketers want to encourage and reward fit the larger marketing plan.

Price/quality relationship tie-in: Depending on the students’ marketing sophistication and prior training, the price/quality relationship is very relevant to designing successful promotions. Indeed, products with a strong brand image and quality perception often use non-price incentives rather than direct or indirect price reductions. Perfumes often use carrying cases or related products (body lotion or powder) as incentives rather than couponing or direct price reduction. This enables marketers to maintain at least the illusion of a high shelf price while increasing purchase and product use.

Chapter Topics1. Introduction (to consumer-oriented promotions)

Brand management objectives and consumer rewards Classification of promotion methods

2. Sampling Major sampling practices How effective is sampling? When should sampling be used? Sampling problems

3. Couponing Couponing background Point-of-purchase couponing Mail- and media-delivered coupons In-and on-pack coupons Online couponing The coupon redemption process and misredemption

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Chapter 19

CONSUMER-ORIENTED SALES PROMOTIONS:

PREMIUMS AND OTHER PROMOTIONAL METHODS

Teaching NotesThe chapter turns to specific sales-promotion topics including premiums and other promotional methods. Each topic is explored thoroughly, the strengths and pitfalls of each sales-promotion tool are noted, and advice is given regarding their most effective use. A discussion of several less popular, although important, sales promotion tools includes price-offs, bonus packs, contests and sweepstakes, and phone cards. The chapter concludes with a description of a helpful three-step procedure for evaluating sales-promotion ideas.

Chapter Objectives1. Understand the role of premiums, the types of premiums, and the developments

in premium practice.2. Recognize the role of price-off promotions and bonus packages.3. Be aware of the role of rebates and refund offers.4. Know the differences between sweepstakes, contests, and games, and the reasons

for using each form of promotion.5. Understand the role of continuity programs.6. Appreciate the growth of retailer-driven promotions.7. Evaluate the potential effectiveness of sales promotion ideas, and appraise the

effectiveness of completed promotional programs.

Chapter Topics1. Overview

2. Premiums

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Free-with-purchase premiums Mail-in offers In-, on-, and near-pack premiums Self-liquidating offers Phone cards What makes a good premium offer?

3. Price-offs FTC price-off regulations

4. Bonus Packs5. Rebates/refunds

Phantom discounts Rebate fraud

6. Sweepstakes, contests and games7. Continuity promotions8. Overlay and tie-in promotions

Overlay promotions Tie-in promotions

9. Retailer promotions10. Evaluating sales promotion ideasPost mortem analysis11. Summary

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Chapter 20

MARKETING-ORIENTED PUBLIC RELATIONS AND

SPONSORSHIPS

Teaching NotesChapter 20 presents marketing public relations (MPR) and sponsorship marketing. Advertising and communications majors taking marketing courses will especially appreciate this chapter. Demonstrating how MPR is part of the marketing mix and promotional mix is key to understanding how to manage and use MPR. The managerial issues of measuring effectiveness and an IMC approach are also important for non-business majors interested in advertising and PR careers. Event and cause-related marketing are relatively underutilized strategies and students often have creative ideas given their high involvement with sporting events, concerts and related activities.

Chapter Objectives1. Appreciate the nature and role of marketing public relations (MPR).2. Understand the differences between proactive and reactive MPR.3. Understand the types of commercial rumors and how to control them.4. Be aware of event sponsorships and how to select appropriate events.5. Recognize the nature and role of cause-oriented marketing.

Chapter Tie-ins Source credibility and MPR: Getting others (versus company spokespeople or

advertising) to speak positively about a firm is an excellent example of exploiting source credibility (trustworthiness in particular).

Cognitive processing and the ELM model: rumors are processed just like any other communication. Existing beliefs and attitudes will determine whether receivers counter-argue or yield, and this in turn can be used to devise rumor-countering communications.

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Chapter Topics1. The MPR aspect of general public relations

Proactive MPR Reactive MPR The special case of rumors and urban legends

2. Sponsorship marketing Event sponsorships Cause-related marketing

3. Summary

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