1. Managing Mass Communications

2. 18-2 Advertising Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

3. 18-3 Obtain Outlets Ongoing Contact Support Sales Force Maintain Relationships Get Immediate Action Obtain Outlets Introduce New Products Position Brands Introduce New Products Position Brands Ongoing Contact Support Sales Force AdvertisingObjectives Should be Specific Setting Ad Objectives Is a Strategy Decision

4. 18-4 Objectives Guide Implementation

5. 18-5 Factors to Consider in Setting an Advertising Budget Stage in the product life cycle Market share and consumer base Competition and clutter Advertising frequency Product substitutability

6. 18-6 Target Group Brand History Share of Voice Purchase Cycles Brand Loyalty Brand Share Usage Cycle Purchase Cycles Share of Voice Brand History Usage Cycle Brand Share Brand Loyalty Marketing Factors Determining Frequency Marketing Factors

7. 18-7 Message Complexity Message Uniqueness New Vs. Continuing Campaigns Image Versus Product Sell Message Variation Wearout Advertising Units Wearout Message Variation Image Versus Product Sell New Vs. Continuing Campaigns Message Uniqueness Message Complexity Message Factors Determining Frequency Message or Creative Factors Message or Creative Factors

8. 18-8 Creative Brief Positioning statement Key message Target market Objectives Key brand benefits Brand promise Evidence of promise Media Background Creative considerations

9. 18-9 A series of decisions involving the delivery of messages to audiences Goals to be attained by the media strategy and program Decisions on how the media objectives can be attained The various categories of delivery systems, including broadcast and print media Either radio or television network or local station broadcasts A series of decisions involving the delivery of messages to audiences Goals to be attained by the media strategy and program Decisions on how the media objectives can be attained The various categories of delivery systems, including broadcast and print media Media Terminology Media Planning Media Planning Media Objectives Media Objectives Media Strategy Media Strategy Media Broadcast Media Broadcast Media

10. 18-10 Publications such as newspapers, magazines, direct mail, outdoor, etc. The specific carrier within a medium category Number of different audience members exposed at least once in a given time period The potential audience that might receive the message through the vehicle The number of times the receiver is exposed to the media vehicle in a specific time period The potential audience that might receive the message through the vehicle Number of different audience members exposed at least once in a given time period The specific carrier within a medium category Publications such as newspapers, magazines, direct mail, outdoor, etc. Media Terminology Print Media Print Media Media Vehicle Reach Coverage Frequency

11. 18-11 Comparing Advertising Media Media 2004 spend. (billions) 2004 spend. (billions) 2-year % growth Advantages Disadvantages Television & cable $67.8 25.3% Demonstrates well, good attention, wide reach Expensive in total, “clutter,” and less selective audience Direct mail $52.2 16.8 Selected audience, flexible, can personalize Relatively costly per contact, “junk mail,” hard to retain attention News- paper $46.6 5.9 Flexible, timely, local market May be expensive, short life, no “pass along” Radio $19.6 9.5 Wide reach, low cost segmented audience Wide reach, low cost segmented audience Weak attention, many different rates, short exposure

12. 18-12 Comparing Advertising Media Media 2004 spend. (billions) 2004 spend. (billions) 2-year % growth Advantages Disadvantages Yellow pages $14.0 1.4% Reaches local customers seeking purchase info. Many competitors listed in same place, hard to differentiate Magazine $12.3 11.8 Very targeted, good detail, good “pass along” Inflexible, long lead times Internet $6.9 40.8 Ads link to more detailed site, some “pay for results,” easy to track results Hard to compare costs with other media Outdoor $5.8 11.5 Flexible, repeat exposure, inexpensive “Mass market,” very short exposure

13. 18-13 Clutter Number of Media Used Repeat Exposures Editorial Environment Scheduling Attentiveness Number of Media Used Editorial Environment Repeat Exposures Clutter Media Factors Determining Frequency Media Factors

14. 18-14 Reach and Frequency A. Reach of One Program Total market audience reached B. Reach of Two Programs Total market audience reached C. Duplicated Reach of Both Total reached with both shows D. Unduplicated Reach of Both Total reach less duplicate

15. 18-15 Graph of Effective Reach

16. 18-16 Measures of Audience Size Circulation –# of physical units carrying the advertising Audience –# of people exposed to the vehicle (pass-on) Effective audience –# of people with target audience characteristics exposed to the vehicle Effective ad-exposed audience –# of people with target audience characteristics who actually saw the ad

17. 18-17 Target Market Proportion Full Market Coverage Partial Market Coverage Exceeding Market Target Audience Coverage Population excluding target market Target market Media coverage Media overexposure

18. 18-18 Place Advertising Billboards Public spaces Product placement Point-of-purchase

19. 18-19 Factors Affecting Timing Patterns Buyer turnover Purchase frequency Forgetting rate

20. 18-20 Three Scheduling Methods Continuity Pulsing Flighting JanFebMarAprMayJunJulAugSepOctNovDec

21. 18-21 Evaluating Advertising Effectiveness Communication Effect Research (effectiveness of ad or copy testing) –Consumer feedback method Reactions to ad –Portfolio tests Unaided and aided recall of ad –Laboratory tests Physiological reactions to ad Sales-Effect Research –Sales generated from the ad

22. 18-22 Sales Promotion Collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.

23. 18-23 Sales Promotion Tactics Consumer-directed Samples Coupons Cash refund offers Price offs Premiums Prizes Patronage rewards Free trials Tie-in promotions Trade-directed Price offs Allowances Free goods Sales contests Spiffs Trade shows Specialty advertising

24. 18-24 Sales Promotion: Do Something Different to Stimulate Change

25. 18-25 Events and Experiences $11.14 billion spent on sponsorship in 2004 –69% sports –10% tours –7% festivals, fairs –5% arts –9% causes

26. 18-26 Why Sponsor Events? 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

27. 18-27 Ideal Events 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

28. 18-28 Public Relations Functions Press relations Product publicity Corporate communications Lobbying Counseling

29. 18-29 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

30. 18-30 Major Tools in Marketing PR Publications Events Sponsorships News Speeches Public Service Activities Identity Media