Key Concepts

Developing and Managing An Advertising Program

Advertisingany paid form of non-personal

presentation and promotion of ideas, goods, or services by an identified sponsor.

Major decisions (Five Ms): MissionWhat are the objectives? MoneyHow much can be spent? MessageWhat message should be sent? MediaWhat media should be used? MeasurementHow should the results be evaluated?

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

Deciding on the Advertising Budget

Factors to consider: Product life cycle stage Market share and consumer base Competition and clutter Advertising frequency Product substitutability

Developing the Advertising Campaign

Message generation and evaluation

Creative development and execution

Legal and social issues

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

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.

Choosing Among Major Media Types

Consider four main variables: Target audiences media habits Product Message Cost

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

Selecting Specific Vehicles

Audience size can be measured by: Circulationnumber of physical units carrying the advertising.
Audiencenumber of people exposed to the vehicle.

Effective audiencenumber of people with target

audience characteristics exposed to the vehicle.

Deciding on Media Timing and Allocation

Continuityexposures appear evenly throughout a

given period.

Concentrationspending all ad dollars in a single

period.

Flightingadvertise for a period, followed by a period

with no advertising, followed by a second period of advertising activity. reinforced periodically by waves of heavier activity.

Pulsingcontinuous advertising at low-weight levels

Evaluating Advertising Effectiveness

Communication-effect research (called copy

testing)seeks to determine whether an ad is communicating effectively.

Pretestingbefore an ad is placed. Posttestingafter 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

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.

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

Sales Promotion Objectives

Attract new users Reward loyal customers

Increase repurchase rates

Attract brand switchers

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

Major Sales Promotion Decisions

Establish objectives Select the tools

Develop the program

Pretest the program Implement and control program

Evaluate the results

Events Objectives
Identify with a particular Create experiences and evoke

target market or life style Increase awareness of company or product name Create or reinforce perceptions of key brand image associations Enhance corporate image

feelings Express commitment to the community or on social issues Entertain key clients or reward key employees Permit merchandising or promotional opportunities

Major Sponsorship Decisions

Choosing event opportunities Designing sponsorship programs

Event creation
Measuring sponsorship activities

Creating Experiences
Experiential marketing not only communicates

features and benefits but also connects a product or service with unique and interesting experiences.

Public Relations
Publicany group that has an actual or potential

interest in or impact on a companys ability to achieve its objectives.

Public relations (PR)includes a variety of

programs to promote or protect a companys image or individual products.

PR Department Functions
Press relations Product publicity

Corporate communication
Lobbying Counseling

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

Major Tools in Marketing PR

Publications Events Speeches Public-service activities

Sponsorships
News

Identity media

Major Decisions in Marketing PR

Establish marketing objectives Choose messages and vehicles

Implement and evaluate the plan