MARKETING MANAGEMENT 12th edition 18 Managing Mass Communications Kotler Keller

Chapter Objectives What steps are involved 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?

Developing and Managing Advertising Programs ADVERTISNG: Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Message Development and Execution: - Objective, content, support & tone of Ad - Media selection is most cost effective media to delver desired number and types of exposure for target audience objective - Advantages, disadvantages to objectives - TV: wide reach, vivid, dramatic; costly - Print: segment, detail, imagery; unromantic - Radio: flexible, targeted, low cost; no visual - Alternatives: Place, Product, POP Legal: no bait & switch, false pretenses Social: racial, religious, ethnic, gender, etc STRATEGY TARGET MARKETS - Ads position & differentiate a brand from others - Ads to target markets with 1 or 2 selling messages - Market research validates target market appeal - Avoids same appeals & positions as others What is said How it is said BUYING MOTIVES BUDGET The Five Ms of Advertising ADVERTISING CAMPAIGN Planning Requires Measuring Effectiveness Communication Effect Research - copy testing: * Consumer Feedback Method – queries specific ads * Portfolio Test – query subjects on portfolios of ads * Laboratory Test – equipment measures subject reactions Sales Effect Research – measure sales based on: * Historical Approach – correlate past sales to specific ads * Experimental Design – in-store tests to study sales from promos, displays, coupons, packaging - Specific tasks & results to be achieved wit specific audiences in a specific period of time. - Flow from decisions on target markets, brand positioning and marketing programs. - Aims at different stages in the hierarchy of effects. - Types of Advertising Informative Persuasive Reminder Reinforcement - New products = more advertising - Established products = less “ - High market share = less “ - To increase market share = more “ - Competitive advertising sets pace - Repetition strengthens message Desired Effect on Target Audience Achieved by Combinations of * Reach: Number exposed to a media activity in specified time * Frequency: Number of times in a period that a person is exposed * Impact: Qualitative value of an exposure through a given media Total Exposures = R x F; Weighted Exposures = R x F x I * Media Types based on: audience media habits, product characteristics, message characteristics and cost * Vehicles (options within media type-Newsweek): based on circulation and audience (segments * Timing: scheduling based on seasons, business & product cycles, and target audience turnover, buying and forgetting rates * Geography: selected regions by media used

Sales Promotions and Tactics Sales Promotions: A collection of (usually short term) incentives designed to stimulate quicker or greater purchases of particular products or services by consumers or the trade. DECISIONS AND PLANNING Consumer-directed Samples & Coupons Refunds & Price offs Premiums & Prizes Price Packs (bundles) Frequency programs Patronage rewards Free trials Tie-in & cross promotions Establish Objectives Select Tools Develop Program Prep and Pretest Implement and Control Evaluate Results Quantitative Results Consumer, Industrial Channel & Sales Environments Tools that best support desired objectives Media and Vehicle Blending Timing and Duration Concurrent Use of Multiple Tools Budget, Resources, Logistics, Tracking Methodology Resource logistics notification & initiation Validate: Consumer Survey, Experiments - Pilot Lead time preparation Sell-in time – delivery Quantifiable Results vs Objectives Consumer Surveys, Physical Tracking Vehicles, Comparative Period Sales Results Trade-directed Price offs, free goods, MDF POP & Display Allowances Sales Force Promotions Trade Sows & Conventions Rep Spiffs, Contests, Bonuses Specialty advertising Objectives and Exposures New products, buyers & markets Retain buyer loyalty Competition & industry practices Short term problems & opportunities Evolving market (share) strategies Overuse (30% of time) = devaluation Leaders subsidize existing buyers Over emphasis of short term focus

Event Sponsorship and Process Finance entity, activity or event to: Establish Objectives To identify with a particular target market or life style To increase brand awareness To create or reinforce consumer perceptions of key brand image associations To enhance corporate image To create experiences and evoke feelings To express commitment to community To entertain key clients or reward employees To permit merchandising or promotional opportunities Audience closely matches target market Event generates media attention Event is unique with few sponsors Event lends itself to ancillary activities Event enhances brand image of sponsor Choose Event Opportunities Activity Agenda & Celebrities Timing and Duration Publicity Budget, Other Resources, Logistics, Tracking Methodology Design Program Implement and Control Process, Resource, Logistics Management Quantifiable Results vs Objectives Consumer Surveys, Physical Tracking Vehicles Comparative Event Sales Results Measure Effectiveness

Public Relations Functions and Decisions PUBLIC RELATIONS: a variety of programs designed to promote or protect a company’s image or products. DECISIONS IN MARKETING PR FUNCTIONS & EVENTS Press conferences / relations Product publicity Corporate communications Lobbying Counseling - Build Awareness and Credibility - Minimize Promotional Expenses - Search for Stories - Create News - Hold Events to Convey Stories or Create News - Process, Resource, Logistics Management - Media Exposures - Change in Awareness, Comprehension or Attitudes from Surveys - Sales and Profit Comparisons Over Longer Periods Establish Objectives Choose Messages MARKETING PUBLIC RELATIONS FUNCTIONS Assist in product launches Assist in repositioning mature products Build interest in a product category Influence specific target groups Defend products Build corporate image Choose Vehicles PUBLIC RELATIONS TOOLS Publications Events Sponsorships News Speeches Public Service Activities Identity Media Implement and Control Measure Effectiveness