A Framework for Marketing Management Chapter 16 Managing Mass Communications Copyright 2009, Prentice-Hall, Inc.

Copyright 2009, Prentice-Hall, Inc. Chapter Questions What are the steps in developing an advertising program? How should sales promotion decisions be made? What are the guidelines for effective brand-building events and experiences? How can companies exploit the potential of public relations and publicity? Copyright 2009, Prentice-Hall, Inc.

Developing and Managing An Advertising Program Advertising—any paid form of nonpersonal 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? Copyright 2009, Prentice-Hall, Inc.

Setting the Objectives Advertising 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: Inform Persuade Remind Reinforce Copyright 2009, Prentice-Hall, Inc.

Deciding on the Advertising Budget Factors to consider: Product life cycle stage Market share and consumer base Competition and clutter Advertising frequency Product substitutability Copyright 2009, Prentice-Hall, Inc.

Developing the Advertising Campaign Message generation and evaluation Creative development and execution Legal and social issues Copyright 2009, Prentice-Hall, Inc.

Deciding on Media and Measuring Effectiveness Deciding on reach, frequency, and impact Choosing among major media types Selecting specific vehicles Deciding on media timing and allocation Evaluating advertising effectiveness Copyright 2009, Prentice-Hall, Inc.

Deciding on Reach, Frequency, and Impact Reach (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. Copyright 2009, Prentice-Hall, Inc.

Choosing Among Major Media Types Consider four main variables: Target audience’s media habits Product Message Cost Copyright 2009, Prentice-Hall, Inc.

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. Billboards Public spaces Product placement Point-of-purchase Copyright 2009, Prentice-Hall, Inc.

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. Copyright 2009, Prentice-Hall, Inc.

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. Copyright 2009, Prentice-Hall, Inc.

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 expenditures Share of voice Share of mind and heart Share of market Copyright 2009, Prentice-Hall, Inc.

Copyright 2009, Prentice-Hall, Inc. 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. Copyright 2009, Prentice-Hall, Inc.

Copyright 2009, Prentice-Hall, Inc. Sales Promotion Tools Consumer promotions Samples Coupons Cash refund offers Price packs Premiums Frequency programs Prizes Patronage awards Free trials Warranties Tie-in and cross promotions Point-of-purchase displays and demonstrations Trade promotions Price-off Allowances Free goods Business and sales-force promotions Trade shows and conventions Sales contests Specialty advertising Copyright 2009, Prentice-Hall, Inc.

Sales Promotion Objectives Attract new users Reward loyal customers Increase repurchase rates Attract brand switchers Copyright 2009, Prentice-Hall, Inc.

Advertising vs. Promotion Reasons for decreasing advertising-to-sales-promotions ratios: Top management acceptance of promotion Increase in number of brands Competitors use promotions frequently Brands seen as similar Consumers more price-oriented Trade demands more deals Declining advertising efficiency Copyright 2009, Prentice-Hall, Inc.

Major Sales Promotion Decisions Establish objectives Select the tools Develop the program Pretest the program Implement and control program Evaluate the results Copyright 2009, Prentice-Hall, Inc.

Copyright 2009, Prentice-Hall, Inc. Events Objectives Identify 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 Copyright 2009, Prentice-Hall, Inc.

Major Sponsorship Decisions Choosing event opportunities Designing sponsorship programs Event creation Measuring sponsorship activities Copyright 2009, Prentice-Hall, Inc.

Copyright 2009, Prentice-Hall, Inc. Creating Experiences Experiential marketing not only communicates features and benefits but also connects a product or service with unique and interesting experiences. Copyright 2009, Prentice-Hall, Inc.

Copyright 2009, Prentice-Hall, Inc. 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. Copyright 2009, Prentice-Hall, Inc.

PR Department Functions Press relations Product publicity Corporate communication Lobbying Counseling Copyright 2009, Prentice-Hall, Inc.

Marketing Public Relations (MPR) Launching new products Repositioning a mature product Building interest in a product category Influencing specific target groups Defending products that have encountered public problems Building the corporate image in a way that reflects favorably on its products Copyright 2009, Prentice-Hall, Inc.

Major Tools in Marketing PR Publications Events Sponsorships News Speeches Public-service activities Identity media Copyright 2009, Prentice-Hall, Inc.

Major Decisions in Marketing PR Establish marketing objectives Choose messages and vehicles Implement and evaluate the plan Copyright 2009, Prentice-Hall, Inc.

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2009 Pearson Education, Inc.   Publishing as Prentice Hall Copyright 2009, Prentice-Hall, Inc.