chapter 20kisi.deu.edu.tr/sumeyra.duman/mba 5011 str.mrk.man... · what are the guidelines for...

15-Dec-17

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Copyright © 2016 Pearson Education Ltd. 20-1

Chapter

20

Managing Mass

Communications:

Advertising, Sales

Promotions, Events

and Experiences,

and Public Relations


Learning Objectives

1. What steps are required in developing an

advertising program?

2. How should marketers choose advertising

media and measure their effectiveness?

3. How should sales promotion decisions be

made?

4. What are the guidelines for effective brand-

building events and experiences?

5. How can companies exploit the potential of

public relations?

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Developing and Managing

an Advertising Program


Developing and Managing

an Advertising Program

• Setting the advertising objectives

• Deciding on the advertising budget

• Developing the advertising

campaign

• Choosing media

• Evaluating advertising

effectiveness

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Setting the

Advertising Objectives

Informative

Persuasive

Reminder

Reinforcement


Deciding on the Advertising

Budget

Stage in the product life cycle

Market share and consumer base

Competition and clutter

Advertising frequency

Product substitutability

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Deciding on the Advertising

Budget• Advertising elasticity

– Concave or S-shaped


Developing the Advertising

Campaign

• Message generation and

evaluation

– Positioning of an ad—what

it attempts to convey about

the brand

– Creative brief

– Open

sourcing/crowdsourcing

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Campaign

• Creative development and execution

– Advertising medium (television, print, and

radio advertising media)



Campaign

• Television ads

Vividly demonstrates product attributes

Persuasively explains consumer benefits

Portrays usage imagery/brand

personality

Product/brand can be overlooked

Creates clutter

Easy to ignore or forget ads

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Campaign

• Print ads

Provide detailed product information

Flexibility in design and placement

Can be fairly passive

Newspapers popular for local ads

In steady decline

Poor reproduction quality

Short shelf life



Campaign

• Print ad evaluation criteria

– Is the message clear at a glance?

– Is the benefit in the headline?

– Does the illustration support the headline?

– Does the first line of the copy support or

explain the headline and illustration?

– Is the ad easy to read and follow?

– Is the product easily identified?

– Is the brand or sponsor clearly identified?

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Campaign

• Radio ads

Occurs in the car and out of home

Main advantage is flexibility

Ads are relatively inexpensive

Can be schedule to air quickly

Effective when run in morning

Can be extremely creative

Can tap into the listener’s imagination



Campaign

• Legal and social issues

– Advertisers must not make false claims

– Must not use false demonstrations

– Must not create ads with the capacity to

deceive

– Must avoid bait-and-switch advertising

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Choosing Media

• Reach, frequency, and impact


Choosing Media

• Total number of

exposures (E)

– Gross Rating Points

(GRP): E = R X F

• Weighted number of

exposures (WE)

– WE = R X F X I

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Choosing Media

• Choosing among major media types


Choosing Media

• Place advertising options

Billboards

Public spaces

Product placement

Point of Purchase

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Choosing Media

• Evaluating alternate media

– Need to demonstrate reach/effectiveness

• Selecting specific media vehicles

– Media planner must choose most cost-

effective vehicles and must estimate audience

size, composition, media cost, and cost per

thousand persons reached


Choosing Media

• Selecting media timing and allocation

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Choosing Media

• Selecting media timing and allocation

Continuity

Concentrated

Flighting

Pulsing


Evaluating Advertising

Effectiveness

• Communication-effect

research

– In-home tests, trailer tests,

theater tests, on-air tests

• Sales-effect research

– Historical approach

– Experimental data

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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

• Establishing objectives

– For consumers, retailers, and the sale force

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Sales Promotion

• Selecting consumer promotion tools


Sales Promotion

• Selecting trade promotion tools

– Forward buying and diverting retailers

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Sales Promotion

• Selecting business and sales force

promotion tools


Sales Promotion

• Developing the program

Incentive

sizeConditions

Duration

Distribution

vehicleTiming

Total sales

promotion

budget

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Sales Promotion

• Implementing and evaluating the program

Lead time

Sell-in time

Sales/scanner data

Consumer surveys

Experiments


Events and Experiences

• Events objectives

1. To identify with a target market or lifestyle

2. To increase salience of company/product name

3. To create/reinforce key brand image associations

4. To enhance corporate image

5. To create experiences and evoke feelings

6. To express commitment to the community or on

social issues

7. To entertain key clients or reward employees

8. To permit merchandising/promotional opportunities

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• Major sponsorship

decisions

– Choosing events

– Designing sponsorship

programs

– Measuring sponsorship

activities


Measuring

Sponsorship Programs

• Measure outcomes, not

outputs

• Define/benchmark

objectives on front end

• Measure return for each

objective

• Measure behavior

• Apply assumptions/ratios

used by other departments

• Measure results of

emotional connections

• Identify group norms

• Include cost savings in ROI

calculations

• Slice the data

• Capture normative data

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• Creating experiences

– Experiential marketing


Public Relations

• PR department functions

– Press relations

– Product publicity

– Corporate communications

– Lobbying

– Counseling

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Public Relations

• Marketing public relations (MPR) tasks

Launching

new

products

Repositioning

mature

products

Building

interest in

product

Influencing

target groups

Defending

problem

products

Building

corporate

image


Public Relations

• Major decisions in

marketing PR

– Establishing objectives

– Choosing messages and

vehicles

– Implementing the plan

– Evaluating results

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Public Relations


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