1. A Framework for Marketing Management
Chapter 16
Managing Mass Communications
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2. Copyright 2009, Prentice-Hall, Inc.
Chapter Questions
What are the steps 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?
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3. Developing and Managing An Advertising Program
Advertising—any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
Major decisions (Five Ms):
Mission—What are the objectives?
Money—How much can be spent?
Message—What message should be sent?
Media—What media should be used?
Measurement—How should the results be evaluated?
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4. Setting the Objectives
Advertising goal (or objective)—a specific communication task and achievement level to be accomplished with a specific audience in a specific period.
Classified according to their aim:
Inform
Persuade
Remind
Reinforce
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5. Deciding on the Advertising Budget
Factors to consider:
Product life cycle stage
Market share and consumer base
Competition and clutter
Advertising frequency
Product substitutability
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6. Developing the Advertising Campaign
Message generation and evaluation
Creative development and execution
Legal and social issues
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7. Deciding on Media and Measuring Effectiveness
Deciding on reach, frequency, and impact
Choosing among major media types
Selecting specific vehicles
Deciding on media timing and allocation
Evaluating advertising effectiveness
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8. Deciding on Reach, Frequency, and Impact
Reach (R)—the number of different persons or households that are exposed to a particular media schedule at least once during a specified period.
Frequency (F)—The number of times within the specified period that an average person or household is exposed to the message.
Impact (I)—the qualitative value of an exposure through a given medium.
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9. Choosing Among Major Media Types
Consider four main variables:
Target audience’s media habits
Product
Message
Cost
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10. Alternative Advertising Options
Place advertising (or out-of-home advertising) is a broad category including many creative and unexpected forms to grab consumers’ attention where they work, play, and shop.
Billboards
Public spaces
Product placement
Point-of-purchase
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11. Selecting Specific Vehicles
Audience size can be measured by:
Circulation—number of physical units carrying the advertising.
Audience—number of people exposed to the vehicle.
Effective audience—number of people with target audience characteristics exposed to the vehicle.
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12. Deciding on Media Timing and Allocation
Continuity—exposures appear evenly throughout a given period.
Concentration—spending all ad dollars in a single period.
Flighting—advertise for a period, followed by a period with no advertising, followed by a second period of advertising activity.
Pulsing—continuous advertising at low-weight levels reinforced periodically by waves of heavier activity.
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13. Evaluating Advertising Effectiveness
Communication-effect research (called copy testing)—seeks to determine whether an ad is communicating effectively.
Pretesting—before an ad is placed.
Posttesting—after an ad is placed.
Formula for measuring sales impact of advertising:
Share of expenditures
Share of voice
Share of mind and heart
Share of market
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14. Copyright 2009, Prentice-Hall, Inc.
Sales Promotion
A collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.
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Sales Promotion Tools
Consumer promotions
Samples
Coupons
Cash refund offers
Price packs
Premiums
Frequency programs
Prizes
Patronage awards
Free trials
Warranties
Tie-in and cross promotions
Point-of-purchase displays and demonstrations
Trade promotions
Price-off
Allowances
Free goods
Business and sales-force promotions
Trade shows and conventions
Sales contests
Specialty advertising
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16. Sales Promotion Objectives
Attract new users
Reward loyal customers
Increase repurchase rates
Attract brand switchers
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17. Advertising vs. Promotion
Reasons for decreasing advertising-to-sales-promotions ratios:
Top management acceptance of promotion
Increase in number of brands
Competitors use promotions frequently
Brands seen as similar
Consumers more price-oriented
Trade demands more deals
Declining advertising efficiency
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18. Major Sales Promotion Decisions
Establish objectives
Select the tools
Develop the program
Pretest the program
Implement and control program
Evaluate the results
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Events Objectives
Identify with a particular target market or life style
Increase awareness of company or product name
Create or reinforce perceptions of key brand image associations
Enhance corporate image
Create experiences and evoke feelings
Express commitment to the community or on social issues
Entertain key clients or reward key employees
Permit merchandising or promotional opportunities
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20. Major Sponsorship Decisions
Choosing event opportunities
Designing sponsorship programs
Event creation
Measuring sponsorship activities
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21. Copyright 2009, Prentice-Hall, Inc.
Creating Experiences
Experiential marketing not only communicates features and benefits but also connects a product or service with unique and interesting experiences.
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22. Copyright 2009, Prentice-Hall, Inc.
Public Relations
Public—any group that has an actual or potential interest in or impact on a company’s ability to achieve its objectives.
Public relations (PR)—includes a variety of programs to promote or protect a company’s image or individual products.
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23. PR Department Functions
Press relations
Product publicity
Corporate communication
Lobbying
Counseling
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24. Marketing Public Relations (MPR)
Launching new products
Repositioning a mature product
Building interest in a product category
Influencing specific target groups
Defending products that have encountered public problems
Building the corporate image in a way that reflects favorably on its products
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25. Major Tools in Marketing PR
Publications
Events
Sponsorships
News
Speeches
Public-service activities
Identity media
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26. Major Decisions in Marketing PR
Establish marketing objectives
Choose messages and vehicles
Implement and evaluate the plan
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