1. Chapter Thirteen Promotion I: Advertising and Sales Promotion Marketing: Real People, Real Choices, 8e Solomon, Marshall, and Stuart Copyright © 2016 Pearson Education, Inc.13-1

2. Chapter Objectives Understand the communication process and the traditional promotion mix Describe the steps in traditional and multichannel promotional planning Tell what advertising is, describe the major types of advertising, discuss some of the major criticisms of advertising, and describe the process of developing an advertising campaign and how marketers evaluate advertising Explain what sales promotion is and describe the different types of B2C and B2B sales promotion activities Copyright © 2016 Pearson Education, Inc.13-2

3. Real People, Real Choices: Decision Time at Brownstein Which option should Marc pursue? Option 1: More clearly define the new product with a campaign that focused solely on defining exactly what the client’s new product is and why it’s better than the competitor’s product. Option 2: Fire back by taking direct aim at the competition’s brand and product claims with a hard-hitting campaign. Option 3: Launch a guerrilla marketing strategy that attacked the rival more subtly than a major ad campaign. Copyright © 2016 Pearson Education, Inc.13-3

4. Communication Models in a Web 2.0 World Marketing messages can assume many forms with a variety objectives ­From quirky TV commercials and viral videos to blimps with blinking messages ­Savvy marketers know each element of the marketing mix is a form of communication! All marketing communications aims to either inform, remind, persuade, or build relationships Copyright © 2016 Pearson Education, Inc.13-4

5. Integrated Marketing Communications (IMC) Integrated marketing communication (IMC) involves the planning, execution, and evaluation of coordinated, brand communication programs over time to targeted audiences ­Aim is to deliver consistent messaging across platforms ­Multichannel promotional strategies Copyright © 2016 Pearson Education, Inc.13-5

6. Figure 13.1: Three Models of Marketing Communication Copyright © 2016 Pearson Education, Inc.13-6

7. Figure 13.2: Communication Model Copyright © 2016 Pearson Education, Inc.13-7

8. The Source Encodes Process begins with a source with an idea that they want to communicate to a receiver Encoding is the process by which the idea is translated into a physically perceivable form that conveys meaning ­Words, music, and images ­Spokespeople ­Animated characters Copyright © 2016 Pearson Education, Inc.13-8

9. The Message The message is the actual content of communication that goes from the source to a receiver May be in the form of: ­Advertising ­Sales promotion ­A salesperson’s pitch ­Infomercial ­Word of mouth Copyright © 2016 Pearson Education, Inc.13-9

10. The Medium The medium is the communication vehicle that reach members of the target audience Marketers face two major challenges : ­Target market exposure to medium ­Does product conflict with medium Copyright © 2016 Pearson Education, Inc.13-10 Gillette employs a creative medium to get its message to customers

11. The Receiver Decodes For effective decoding to occur, the source and the receiver must share a frame of reference. In this ad, the receiver needs to understand the meaning of the “white flag” in order for the message to make sense Copyright © 2016 Pearson Education, Inc.13-11

12. Noise and Feedback The communication model also acknowledges that noise—anything that interferes with effective communication— can block messages. To complete the communication loop, the source gets feedback from receivers. Copyright © 2016 Pearson Education, Inc.13-12

13. The Traditional Promotional Mix Promotion mix refers to communication elements that the marketer controls. ­Mass (One-to-Many) Communication: Includes advertising, sales promotion, and public relations ­Personal (One-to-One) Communication: Includes personal selling and direct marketing Copyright © 2016 Pearson Education, Inc.13-13

14. Table 13.1: A Comparison of Elements of the Traditional Promotion Mix Copyright © 2016 Pearson Education, Inc.13-14

15. Figure 13.3: Control Continuum Copyright © 2016 Pearson Education, Inc.13-15 Marketers face inherent trade-offs between the extent of message control and the perceived credibility of the message.

16. Mass Communications: The One- to-Many Model Some elements of the promotion mix include messages intended to reach many prospective customers at the same time ­Advertising ­Consumer sales promotion ­Public relations Copyright © 2016 Pearson Education, Inc.13-16

17. Personal Communications: The One-to-One Model Marketers may sometimes prefer to communicate on a personal level ­Personal selling ­Direct mail ­Telemarketing ­Direct marketing Copyright © 2016 Pearson Education, Inc.13-17

18. Marketing Communications Marketing communications inform, remind, persuade and build relationships with consumers ­IMC involves coordination of messaging to target customers across platforms over time The communication model explains how organizations create and transmit messages Marketers are spending less and less each year on mass-media advertising in favor of digital and mobile outlets. Do you expect this trend to reverse? Copyright © 2016 Pearson Education, Inc.13-18

19. Overview of Promotional Planning Developing an effective promotional plan can be highly complex ­Goal is to ensure the right message is delivered to target audiences in the most effective and cost-efficient way ­Development of promotional plan involves several steps Copyright © 2016 Pearson Education, Inc.13-19

20. Figure 13.4: Steps to Develop the Promotional Plan Copyright © 2016 Pearson Education, Inc.13-20

21. Step 2: Establish the Communication Objectives Creating a new customer occurs as a result of a series of messages. Messages are designed to move the consumer closer to purchase, and hopefully, loyalty. The process of moving the consumer forward in this fashion is known at the hierarchy of effects. Copyright © 2016 Pearson Education, Inc.13-21

22. Step 3: Determine the Marketing Communication Budget Step 3: Determine and allocate the marketing communication budget ­Decision 1: Determine the total marketing communication budget ­Decision 2: Decide on a push or pull strategy ­Decision 3: Allocate spending to specific promotion activities Copyright © 2016 Pearson Education, Inc.13-22

23. Step 4: Design the Promotion Mix Designing promotional mix involves: ­Determining promotional tools to be used ­Specifying message to be communicated Communication Goals ­Attention, interest, desire, and action (AIDA model) Copyright © 2016 Pearson Education, Inc.13-23

24. Step 5: Evaluate the Effectiveness of the Communication Program Marketers use a variety of ways to monitor and evaluate the company’s communication efforts. Sales promotion are the easiest to evaluate as they often occur over a fixed, short period Advertising has delayed effects, more difficult to clearly link to sales ­Brand awareness, recall of product benefits, image are typical ad campaign measures Copyright © 2016 Pearson Education, Inc.13-24

25. Multichannel Promotional Planning Many marketers now opting for multichannel promotional strategies ­Combines traditional promotions with social media activities Multichannel promotion offers several benefits ­Boosts effectiveness of either online or offline strategies used alone ­Allows marketers to repeat messages across channels, strengthening awareness and providing more customer conversion opportunities Copyright © 2016 Pearson Education, Inc.13-25

26. Promotion Planning Developing a promotion plan that delivers the right message to the right target market is not easy! ­Marketers follow sequence of promotional planning steps Hierarchy of effects charts consumers’ path to brand loyalty and guides objective setting Advertising has a delayed effect upon sales. What are the implications of this regularity upon promotion mix planning for marketers in the auto industry? New vs. established brands? Copyright © 2016 Pearson Education, Inc.13-26

27. Advertising Advertising is nonpersonal communication from an identified sponsor using mass media ­Practice dates to ancient Greece and Rome Changes in media landscape have slowed growth of traditional advertising … ­But mass communications remains the best way to reach a large audience Copyright © 2016 Pearson Education, Inc.13-27

28. Figure 13.6: Types of Advertising Copyright © 2016 Pearson Education, Inc.13-28

29. Who Creates Advertising? An advertising campaign is a coordinated, plan that carries out promotion objectives and results in a series of ads placed in various media over a period of time. Most brands hire outside agencies ­Limited-service agency ­Full-service agency Copyright © 2016 Pearson Education, Inc.13-29

30. Advertising Campaign Planning Has Many Elements In executing ad campaigns, agencies pool services of many different groups of people ­Account management ­Creative services ­Research and marketing services ­Media planning Copyright © 2016 Pearson Education, Inc.13-30

31. User-Generated Advertising Content User-generated content (UGC) includes the millions of product-related comments, reviews, photos, images, and videos posted online by consumers ­Some marketers encourage consumers to contribute their own DIY ads (e.g., Dorito’s “Crash the Super Bowl” contest)Dorito’s “Crash the Super Bowl” ­Crowdsourcing can help select a winning ad or even create one (Ford’s “Fiesta Movement” campaign)“Fiesta Movement” Copyright © 2016 Pearson Education, Inc.13-31

32. Ethical Issues in Advertising Advertising, more than any other aspect of marketing, has been criticized as unethical ­Advertising is manipulative … ­Advertising is deceptive and untruthful … ­Advertising is offensive and in bad taste … ­Advertising causes people to buy things they don’t need … Copyright © 2016 Pearson Education, Inc.13-32

33. Figure 13.7: Steps to Develop an Advertising Campaign Copyright © 2016 Pearson Education, Inc.13-33

34. Figure 13.8: Creative Elements of Advertising Copyright © 2016 Pearson Education, Inc.13-34

35. Execution Format Execution format describes the basic structure of the message. Common formats include: ­Comparison ­Demonstration ­Storytelling ­Testimonial ­Slice of Life ­Lifestyle Copyright © 2016 Pearson Education, Inc.13-35

36. Tonality Tonality refers to the mood or attitude the message conveys: ­Straightforward ­Humor ­Dramatic ­Romantic/Sexy ­Fear Copyright © 2016 Pearson Education, Inc.13-36

37. Pretest What the Ads Will Say Advertisers try to minimize mistakes by getting reactions to ad messages before they actually place them Data from pretesting research may come from either quantitative (e.g., surveys) or qualitative (e.g., focus groups) sources Copyright © 2016 Pearson Education, Inc.13-37

38. Table 13.2: Pros and Cons of Media Vehicles: TV Copyright © 2016 Pearson Education, Inc.13-38

39. Table 13.2: Pros and Cons of Media Vehicles: Radio Copyright © 2016 Pearson Education, Inc.13-39

40. Table 13.2: Pros and Cons of Media Vehicles: Magazines Copyright © 2016 Pearson Education, Inc.13-40

41. Owned, Paid, and Earned Media Owned media may include websites, blogs, Facebook, and Twitter accounts. ­Controlled by company, effective for relationship building Paid media includes display ads, sponsorships, and paid key word searches ­Most similar to traditional advertising, less trusted by consumers Earned media refers to word of mouth or buzz on social media. ­Most credible to consumers, no company control Copyright © 2016 Pearson Education, Inc.13-41

42. Website Advertising Online advertising is no passing fad ­US adults spend more time on mobile devices than TV Target customers via: ­Banners and buttons ­Pop-up ads ­Search engine ­Permission email marketing Copyright © 2016 Pearson Education, Inc.13-42

43. Ethical/Sustainable Decisions in the Real World Order of Google links based on a complex algorithm that quantifies site popularity Some marketers try to “game” the system ­Buying paid links on other sites, some of which have nothing in common with the link site ­Google has punished “offending” retailers during peak seasons Is it ethical for marketers to pay for links on websites in order to obtain higher rankings on search engines? Copyright © 2016 Pearson Education, Inc.13-43

44. Mobile Advertising, Branded Entertainment and Support Media Mobile advertising is advertising that is communicated to consumers via a handset ­GPS-enabled phones allow new ad opportunities Branded entertainment refers to paid placement of brands within movies, TV shows, video games, and even retail settings Support media include directory advertising, outdoor advertising, and transit advertising Copyright © 2016 Pearson Education, Inc.13-44

45. Figure 13.9: Media Schedule for a Video Game Copyright © 2016 Pearson Education, Inc.13-45

46. Evaluate the Advertising Copyright © 2016 Pearson Education, Inc.13-46 How might the sponsor assess the effectiveness of this campaign?

47. Planning and Executing Effective Advertising Campaigns Because marketers spend so much on advertising, they must decide which type of ad will work best ­Three main types of advertising are product, institutional, and local/retail ­Pretesting and post-testing ads are critical to ensuring positive results More firms are using product placements in movies and TV shows. How effective do you think branded entertainment is for raising product awareness?product placements Copyright © 2016 Pearson Education, Inc.13-47

48. Sales Promotion Sales promotions are programs designed to build interest in or encourage purchase of a good or service during a specified period How does sales promotion compare to advertising? ­Both are paid promotional activities with identifiable sponsors ­Differ in that sales promotions typically have a more immediate short-term objective Copyright © 2016 Pearson Education, Inc.13-48

49. Figure 13.10: Types of Consumer Sales Promotion Copyright © 2016 Pearson Education, Inc.13-49

50. Figure 13.11: Trade Sales Promotions Copyright © 2016 Pearson Education, Inc.13-50

51. Sales Promotion Designed to Increase Industry Visibility Other types of trade sales promotions increase the visibility of a manufacturer’s products to industry channel partners ­Trade shows ­Promotional products ­Point-of-purchase displays ­Incentive programs Copyright © 2016 Pearson Education, Inc.13-51

52. Consumer and Trade Sales Promotion Consumer sales promotion target end customers ­Price-based and attention getting sales promotions Trade sales promotions focus on members of the supply chain ­Discount and increased visibility trade promotions Overuse of sales promotions has led to higher deal- seeking by many consumers. How can companies prevent this? Copyright © 2016 Pearson Education, Inc.13-52

53. Real People, Real Choices: Decision Made at Brownstein Group Marc chose option 1 Implementation: Marc’s agency rolled out an advertising campaign that used an educational approach to explain the positioning and benefits of the new brand. Ads appeared in print, outdoor, online, and on radio. As a result of this campaign, the attack ad from the competition soon subsided. Copyright © 2016 Pearson Education, Inc.13-53

54. 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 © 2016 Pearson Education, Inc.13-54