1. Marketing 18.05.2016 Martin Samek martin.samek@lbs.ac.at

2. Lauder Business School Measuring Advertising Return (1) Reach, Frequency and GRPs Reach: the share of your target that has seen your ad at least once Frequency: the average number of times target saw the ad (within set duration) GRP (Gross Rating Point): Reach X Frequency Ad reached 25% of target an average of 3 times – the ad delivered 75 GRPs Marketing/ Session 10

3. Lauder Business School Measuring Advertising Return (2) Reach, Frequency For reach, the goal is to expose as many of the target customers as possible Find most cost efficient media for reaching target For frequency, it depends on the goal Awareness and memory can probably be attained with a few ads Persuasion may take more If ad/product is readily understood, wear-out may occur Marketing/ Session 10

4. Lauder Business School Media Planning (1) Strengths of Media TV ads are most expensive yet yield the largest reach Magazines have broad appeal or can be targeted Radio and newspapers are often purchased nationally, but can be purchased for local markets Marketing/ Session 10

5. Lauder Business School Media Planning (2) Radio, newspapers, and magazines are less expensive than TV, but they also deliver smaller audiences Billboards, bus ads, yellow page ads, etc. are relatively inexpensive and effective in covering local number Magazines require long lead times for production but have nice reproduction quality Marketing/ Session 10

6. Lauder Business School Media Planning (3) Newspapers and magazines are nonintrusive but viewers can ignore ads Online advertising and direct mail have the best customization options Online ads are inexpensive and can be targeted, yet, penetration isn’t 100% Direct mail is relatively inexpensive and targeted, but it is not efficient (junk mail) Marketing/ Session 10

7. Lauder Business School Media Planning (1) TV/radio – Cost per second Superbowl USD 150,000.– per second or USD 5M per 30 seconds spot ORF 1 or 2 EUR EUR 60.– to 250.– (pricelist) up to EUR 900.-- OE3EUR 4.– to 140.— ARD EUR 85.– to 550.– (pricelist) up to EUR 1,500.-- Marketing/ Session 10

8. Lauder Business School Media Planning (2) Newspaper Kurier 1/1 page EUR 26,000.-- 1/8 page EUR 4,500.-- Die Zeit 1/1 page EUR 43,000.-- 1/4 page EUR 13,000.-- Special Interest Magazine Homes and Gardens (International) 1/1 page EUR 20,000.-- Powder Magazine1/1 page EUR 23,000.— Marketing/ Session 10

9. Lauder Business School Integrated Marketing Communications IMC: marketing messages must be seamlessly integrated across media Positive relationship between IMC and good brand outcomes High awareness, brand loyalty, sales, etc. Some elements should be consistent, some should vary based on the strengths of the various media Difficult to implement because ad agencies are not full service providers Marketing/ Session 10

10. Lauder Business School Integrated Marketing Communications Which companies do effective IMC? Toyota Hornbach Marketing/ Session 10

11. Lauder Business School Public Relations PR communications are the attempt of an organization to reach Customers, suppliers, stockholders, government officials, employees, general community PR’s intention is to convey a positive image and to educate a constituency about the company’s objectives Generate goodwill on behalf of the company Marketing/ Session 10

12. Lauder Business School Public Relations Agencies/Departments Issue press kits - news releases when anything “newsworthy” is happening Features news (e.g., product launch), company information, bios, history, etc. Maintain information on web site Arrange events Speaking engagements, sponsorships, philanthropy, etc. Marketing/ Session 10

13. Lauder Business School Publicity Communication tool that the company doesn't pay for It has the appearance of objectivity PR can prepare press releases, but there is no guarantee that they will be picked up Publicity can be negative or positive because companies cannot directly control it Marketing/ Session 10

14. Lauder Business School Publicity Examples: Designer clothes worn by celebrity in Oscar night Company receives Award of Chamber of Commerce etc. Wine with positive critics in the special interest press … Marketing/ Session 10