Andras BauerMarketing Management1 SENDER/ COMPANY CHANNELMESSAGE RECEIVER/ CONSUMER A SIMPLE MODEL OF COMMUNICATION

Andras BauerMarketing Management2 SENDER/ COMPANY CHANNELMESSAGE RECEIVER/ CONSUMER A SIMPLE MODEL OF COMMUNICATION WITH ADDED COMPETITIVE EFFECTS AND WORD OF MOUTH NOISE/CLUTTER WORD OF MOUTH

Andras BauerMarketing Management3 Communication-Mix Advertising Direct Marketing Sales Promotion Public Relations Other Forms

Andras BauerMarketing Management4 US ADVERTISING EXPENDITURES, $ BILLION

Andras BauerMarketing Management5 Integration Effective marketing programs require integration of different communication mix elements Classically advertising has dominated the picture through mass media. This is still the most effective way to create brand perceptions When brands are built up, other methods could be more important, such as sales promotions

Andras BauerMarketing Management6 Integration It is possible to build brands with lower input from mass media: Buitoni, Haagen- Dazs, even Land Rover The right combination of promotional tools depends on advertising working models

Andras BauerMarketing Management7 Advertising working models Hierarchy of effects: Awareness  Liking  Buying or in other terms Cognition  Affect  Behaviour This model has a naive logic

Andras BauerMarketing Management8 Advertising working models In another model consumers act before creating feelings toward the brand: Awareness  Behaviour  Liking Especially in low involvement situations this could happen and « creative » advertising is very effective

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Andras BauerMarketing Management10 Advertising planning Select the target audience Define advertising objectives. The DAGMAR principles: create measurable advertising objectives, such as e.g. «Increase awareness among the heavy user years old male consumers from 78 to 85 %, by the end of Week 41. Results are measured by 24 hour recall »

Andras BauerMarketing Management11 Advertising planning Incorporate the marketing objectives about the source of business in the message strategy. E.g. influence attributes about competitors, change preferences etc. Select appeals and test the copy in laboratory or real life environments Select media Budget

Andras BauerMarketing Management12 Selecting media Firms can make a decision about the potential selling/buying process in terms of customisation and interaction A TV ad is non-customised and one-way A salesperson can customise and interact Many options in-between, media and direct advertising Of course there are quality differences

Andras BauerMarketing Management13 Customized/ Addressable Mass Radio Newspapers Magazines Television Media Direct Salesperson Web Telemarketing Direct Mail Catalogs Infomercials Broadcast -Two-Way withTwo-Way One-Way MessageTime LagInstantaneous In ResponseIn Response The Position of Major Communication Vehicles

Andras BauerMarketing Management14 Budgeting for advertising There are different methods used to budget: percentage of sales, competitive parity, objective and task, affordability The most often used method: objective and task Overall: try to justify strategic spending and communicate to company management

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