1. Advertisements, Promotions, and News Releases Chapter 10 Deny A. Kwary www.kwary.net

2. Main Topics Marketing Mix Marketing Mix Promotion Mix Promotion Mix Planning an advertising and promotional campaign Planning an advertising and promotional campaign Communicating with an advertisement Communicating with an advertisement Planning a news release Planning a news release

3. Marketing Mix (the four Ps) Product: Product: –Product variety, quality, design, features, brand name, packaging, sizes, services, warranties. Price Price –List price, Discounts, Allowances, Payment period, Credit terms Place Place –Channels, Locations, Transport Promotion Promotion –Advertising, sales promotion, public relations, personal selling, direct marketing.

4. Promotional mix Promotional mix – term given to the combination of promotional approaches that an organisation uses to communicate with the world around it.Promotional mix – term given to the combination of promotional approaches that an organisation uses to communicate with the world around it.

5. Promotion Mix (Promotion Channels) Advertising Advertising Sales promotion Sales promotion Public relations Public relations Personal selling Personal selling Direct marketing Direct marketing

6. Focus on Three Channels Advertising: Any paid form of nonpersonal presentation and promotion of a product. Advertising: Any paid form of nonpersonal presentation and promotion of a product. Sales promotion: Short term incentives to encourage trial or purchase of a product. Sales promotion: Short term incentives to encourage trial or purchase of a product. Public relations: A variety of programs designed to promote and/or protect a companys image or its individual products. Public relations: A variety of programs designed to promote and/or protect a companys image or its individual products.

7. Advertising and Sales promotion Can serve a variety of communication objectives: creating or increasing awareness (e.g. informing the target market of a new service); creating or increasing awareness (e.g. informing the target market of a new service); informing or educating (e.g. explaining how to make better use of a service); informing or educating (e.g. explaining how to make better use of a service); stimulating various types of purchase decision (e.g. encouraging people to buy a product). stimulating various types of purchase decision (e.g. encouraging people to buy a product).

8. Planning an advertising and promotional campaign Imagine that you are the product manager responsible for launching Vegetale in your organisations Northern European sales territory. Imagine that you are the product manager responsible for launching Vegetale in your organisations Northern European sales territory. It is a new, vegetable-based, high-protein food that is being positioned as an attractive alternative to meat. It is a new, vegetable-based, high-protein food that is being positioned as an attractive alternative to meat. How would you develop an advertising campaign, as the product moves from the development stage to its initial launch in this market? How would you develop an advertising campaign, as the product moves from the development stage to its initial launch in this market?

9. 1. Marketing research e.g. (1) Who buys food for the household? (2) What are the existing alternatives to meat, and how are they perceived by both consumers and non-consumers? (3) What do people already know and think of Vegetale and the companys other products? Planning an advertising and promotional campaign (continued)

10. 2. Identifying target market(s) e.g. In the Vegetale example, your research suggests that the demographic profile is likely to comprise females aged 20 to 35 who are professionals and skilled workers (socio-economic groups). Planning an advertising and promotional campaign (continued)

11. Market Segmentation Geographic Geographic Region Density Age Gender Occupation Education Social class Lifestyle Occasions Loyalty status Behavioral Behavioral Psychographic Psychographic Demographic Demographic

12. Mass Marketing Versus Target Marketing

13. 3. Developing campaign objectives –25% unprompted recall of Vegetale in your target market, by the end of a 3-month media campaign 4. Planning and budgeting –the channels to be used (e.g. newspaper and television adverts, in-store promotions); –the timescale of the campaign; Planning an advertising and promotional campaign (continued)

14. 5. Drafting material – key messages e.g. your key messages might be that Vegetale is a new, nutritious, low-fat product, derived entirely from natural vegetable ingredients, which can be prepared much like meat and which has a similar texture to veal. Planning an advertising and promotional campaign (continued)

15. Challenges of direct engagement Product samples – trial size shampoos, attached to magazines or delivered to the door, and cut-down versions of computer software packages, supplied as a CD-Rom or downloaded via the Internet. e.g. In 1960s, a company was forced to discontinue its new promotional campaign for razor blades e.g. In 1960s, a company was forced to discontinue its new promotional campaign for razor blades BECAUSE inquisitive children across the country began opening product samples that had been dropped through their letterboxes.

16. Challenges of direct engagement (continued) Miscalculations e.g. In the early 1990s, Hoover offered its UK customers two free flights to European or US destinations if they spent more than £100 on its products e.g. In the early 1990s, Hoover offered its UK customers two free flights to European or US destinations if they spent more than £100 on its products It was worth purchasing a Hoover product, simply to secure the two free flights. It was worth purchasing a Hoover product, simply to secure the two free flights. The offer was massively over-subscribed, leading to legal actions by disappointed customers, a public relations disaster, multi-million pound losses and the subsequent departure of several senior executives. The offer was massively over-subscribed, leading to legal actions by disappointed customers, a public relations disaster, multi-million pound losses and the subsequent departure of several senior executives.

17. Table 10.1 Some popular advertising formats Some popular advertising formats Slice of LifeThis traditional format has been commonly used on television adverts for fast-moving consumer goods and domestic appliances such as washing machines. HumorousVisual and verbal humour which is used for all kinds of products. AspirationalImagery is used, either to enhance a brand identity, or to suggest that consumers can obtain some element of fantasy lifestyle by purchasing the product.

18. Some popular advertising formats (continued) Table 10.1 Some popular advertising formats Endorsement The receiver is given an assurance regarding the message, because it is delivered by someone that they know or trust. Demonstration It is effective for introducing novel products or ones that are difficult to understand. Postmodern Bizarre and self-parodying adverts where the promotional message appears obscure, if not unintelligible.

19. An example of a Postmodern Advert

20. Measured Advertising Dollars (2004) for Selected Fast Food Brands Source: The Top 200 Megabrands, Advertising Age. July 18, 2005. Accessed August 7, 2005.

22. Public relations The UKs Institute of Public Relations (IPR) has defined this communication role as the planned and sustained effort to establish and maintain goodwill and mutual understanding between an organisation and its publics The UKs Institute of Public Relations (IPR) has defined this communication role as the planned and sustained effort to establish and maintain goodwill and mutual understanding between an organisation and its publics (IPR 2003).

23. Figure 10.2 An organisations dialogue with its stakeholders An organisations dialogue with its stakeholders

24. Successful PR PR can only be successful if it addresses the following key principles: Senior management commitment is essential Senior management commitment is essential PR activity must be linked to strategic aims PR activity must be linked to strategic aims Organisations must understand and engage with its publics Organisations must understand and engage with its publics PR strategies require plans, budgets and resources PR strategies require plans, budgets and resources Feedback from PR activity should inform strategic change Feedback from PR activity should inform strategic change

25. PR activities and communication channels Corporate brochures Corporate brochures Sponsorship Sponsorship Lobbying Lobbying Internal communication Internal communication News releases News releases Exhibitions and events Exhibitions and events

26. Planning a news release A news release: A statement, often about the launch of a new product, service or event used by an organisation to brief media journalists and encourage them to write articles on the subject. Unlike news articles, press releases are biased towards the perspective of the organisation.

27. Typical format for a news release The message content demonstrates a number of good practice features, including: the provision of relevant facts, addressing the six fundamental news questions (i.e. who? what? when? where? why? how?); the provision of relevant facts, addressing the six fundamental news questions (i.e. who? what? when? where? why? how?); placing the most important facts at the beginning; placing the most important facts at the beginning; presenting the information in a clear and simple format; presenting the information in a clear and simple format; providing relevant contact details providing relevant contact details

28. Organisation Name and Logo Release Date/Time Descriptive heading Main news point Subsidiary news points About the organisation Contact names and numbers