marketing communications &

1Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12

Marketing Marketing Communications &Communications &

Prepared byDeborah Baker

Texas Christian University

12 Advertising


Learning ObjectivesLearning Objectives

1. Discuss the elements of the promotional mix and their role in the marketing mix

2. Describe the communication process

3. Explain promotional goals and tasks, and the AIDA concept

4. Describe the factors that affect the promotional mix


Learning ObjectivesLearning Objectives

5. Discuss the effects of advertising on market share and consumers

6. Identify the major types of advertising

7. Discuss the creative decisions in developing an advertising campaign

8. Describe media evaluation and selection techniques


Learning Objective Learning Objective

Discuss the elements of the promotional mix and their role in the marketing mix

1

1

Onlinehttp://www.easports.com


PromotionPromotion

PromotionPromotionCommunication by marketers that informs, persuades, and reminds

potential buyers of a product in order to influence an opinion or

elicit a response.

1


Promotional StrategyPromotional Strategy

Promotional StrategyPromotional StrategyA plan for the optimal use of the

elements of promotion:

1

Advertising Public Relations Sales Promotion Personal Selling

CompetitiveCompetitiveAdvantageAdvantage


The Role of PromotionThe Role of PromotionOverall

Marketing Objectives

Marketing Mix• Product• Distribution• Promotion• Price

Target Market

Promotional Mix

• Advertising• Public Relations• Sales Promotion• Personal Selling

Promotion Plan

1


Competitive AdvantageCompetitive Advantage

Unique features

Excellent service

Low prices

Rapid delivery

High product quality

1


Promotional MixPromotional Mix

Advertising Public Relations Sales Promotion Personal Selling

Promotional MixPromotional MixCombination of promotion tools used to reach the target market and fulfill

the organization’s overall goals.

2


AdvertisingAdvertising

AdvertisingAdvertisingImpersonal, one-way

mass communication about a product or organization that is paid

for by a marketer.

2


Advertising MediaAdvertising Media

Traditional Advertising Media

ElectronicAdvertising Media

Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards

Internet Electronic mail Interactive video

2


Public RelationsPublic Relations

Public RelationsPublic RelationsThe marketing function that

evaluates public attitudes, identifies areas within the organization that the

public may be interested in, and executes a program of action to earn

public understanding and acceptance.

2


Functions of Public RelationsFunctions of Public Relations

Evaluates public attitudes

Identifies areas of public interest

Executes programs to “win” public

2


Sales PromotionSales Promotion

Sales PromotionSales PromotionMarketing activities--other than

personal selling, advertising, and public relations--that stimulate

consumer buying and dealer effectiveness.

2



EndConsumers

Trade Customers

CompanyEmployees

2

Free samples

Contests

Premiums

Trade Shows

Vacation Giveaways

Coupons


Personal SellingPersonal Selling

Personal SellingPersonal SellingPlanned presentation to one or more

prospective buyers for the purpose of making a sale.

2



Traditional Selling

Relationship Selling

2



Describe the communication process2

2


CommunicationCommunication

CommunicationCommunicationThe process by which we exchange

or share meanings through a common set of symbols.

2


Marketing CommunicationMarketing Communication

Categories of Communication

InterpersonalCommunication

MassCommunication

2


As Senders As Receivers

The Communication ProcessThe Communication Process

Develop messages

Adapt messages

Spot new communication opportunities

2

Inform

Persuade

Remind


The Communication ProcessThe Communication Process

Noise

Sender EncodingMessage

FeedbackChannel

MessageChannel

DecodingMessage Receiver

2

Onlinehttp://www.mcdonalds.com


Characteristics of AdvertisingCharacteristics of Advertising

Communication Mode Communication ControlFeedback AmountFeedback SpeedMessage Flow DirectionMessage Content ControlSponsor IdentificationReaching Large Audience Message Flexibility


Indirect and non-personal LowLittle

DelayedOne-way

YesYesFast

Same message to all audiences

2


Characteristics of Public RelationsCharacteristics of Public Relations


Public RelationsPublic Relations

Usually indirect, non-personal Moderate to low

LittleDelayedOne-way

NoNo

Usually fast Usually no direct control

2


Characteristics of Sales Characteristics of Sales PromotionPromotion



Usually indirect and non-personal Moderate to low

Little to moderateVaries

Mostly one-wayYesYes

Fast Same message to varied target

2


Characteristics of Personal SellingCharacteristics of Personal Selling



Direct and face-to-face HighMuch

ImmediateTwo-way

YesYes

Slow Tailored to prospect

2



Explain the goals and tasks of promotion, and the AIDA concept

3

3


Goals and Tasks of PromotionGoals and Tasks of Promotion

Informing Reminding

Persuading

TargetAudience

PLC StagesPLC Stages:Introduction Early Growth

PLC Stages:PLC Stages:Growth Maturity

PLC Stages:PLC Stages:Maturity

3



Increase awareness

Explain how product works

Suggest new uses

Build company image

3

Informative Objective



Encourage brand switching

Change customers’ perception of product attributes

Influence buying decision

Persuade customers to call

3

Persuasive Objective



Remind customers that product may be needed

Remind customers where to buy product

Maintain customer awareness

3

Reminder Objective


The AIDA ConceptThe AIDA Concept

AIDA Concept AIDA Concept Model that outlines the process for

achieving promotional goals in terms of stages of consumer

involvement with the message.

3

Onlinehttp://www.kohler.com


AIDA and the Promotional MixAIDA and the Promotional Mix

3

Veryeffective

Somewhateffective

Noteffective

AttentionAttention InterestInterest DesireDesire ActionAction


PublicPublicRelationsRelations

SalesSalesPromotionPromotion

PersonalPersonalSellingSelling



Describe the factors that affect the promotional mix

4

4


Factors Affecting the Factors Affecting the Choice of Promotional MixChoice of Promotional Mix

Nature of the product

Stage in PLC

Target market factors

Type of buying decision

Promotion funds

Push or pull strategy

4


Product Life Cycle and theProduct Life Cycle and thePromotional MixPromotional Mix

Light Advertising;

pre-introduction

publicity

Heavy use of Advertising;

PR forawareness;

sales promotion

for trial

AD/PRdecrease;

limited sales

promotion; personal selling for

distribution

Ads decrease;

sales promotion;personal selling;

reminder & persuasive

Advertising, PR, brand

loyalty;personal selling for

distribution

IntroductionIntroduction GrowthGrowth

MaturityMaturityDeclineDecline

Sale

s ($

)Sa

les

($)

TimeTime

4


Target Market CharacteristicsTarget Market Characteristics

For… Widely scattered

market Informed buyers Repeat buyersAdvertising

Sales Promotion

Less Personal SellingOnlinehttp://www.radioguide.com

4


Type of Buying DecisionType of Buying Decision

Advertising

Sales PromotionType ofType of

Buying DecisionBuying DecisionAffectsAffects

Promotional Promotional Mix ChoiceMix Choice

ComplexComplex

RoutineRoutine

Personal Selling

Not RoutineNot Routineor Complexor Complex

Advertising

Public Relations

4


Available FundsAvailable Funds

Trade-offs with funds available

Number of people in target market

Quality of communication needed

Relative costs of promotional elements

4


Push and Pull StrategiesPush and Pull Strategies

ManufacturerManufacturerpromotes to promotes to wholesalerwholesaler

Wholesaler Wholesaler promotes to promotes to

retailerretailer

Retailer Retailer promotes topromotes toconsumerconsumer

ConsumerConsumerbuys frombuys from

retailerretailer

PUSH STRATEGYPUSH STRATEGY

Orders to manufacturer

ManufacturerManufacturerpromotes to promotes to

consumerconsumer

Consumer Consumer demands demands productproduct

from retailerfrom retailer

Retailer Retailer demands demands productproduct

from wholesalerfrom wholesaler

Wholesaler Wholesaler demandsdemands

product fromproduct frommanufacturermanufacturer

Orders to manufacturer

PULL STRATEGYPULL STRATEGY

4


Integrated Marketing Integrated Marketing CommunicationsCommunications

Integrated Marketing Integrated Marketing CommunicationsCommunications

A method of carefully coordinating all promotional messages to assure the

consistency of messages at every contact point where a company meets

the consumer.

4



Discuss the effect of advertising on market share and consumers

5

5



U.S. advertising expected to reach $300 billion per year in 2006

Top 200 brands account for 37 percent of media spending

The advertising industry is small—only 13,000 employed in advertising agencies

Ad budgets of some firms exceed over $2 billion per year—over $6 million per day!

5


Advertising and Market ShareAdvertising and Market Share

New brands spend proportionately more for advertising than old ones

A certain level of exposure is needed to affect purchase habits

Beyond a certain level, diminishing returns set in

5


Advertising and the ConsumerAdvertising and the Consumer

Average U.S. citizen is exposed to hundreds of ads each day

Advertising may change a consumer’s attitude toward a product

Advertising can affect consumer ranking of brand attributes

5



Identify the major types of advertising

6

6


Major Types of AdvertisingMajor Types of Advertising

InstitutionalAdvertising

ProductAdvertising

Designed to enhance a company’s image rather than promote a

particular product.

Designed to tout the benefits of a specific good or service.

6


Major Types of AdvertisingMajor Types of AdvertisingEnhance

corporation’s identity

Pioneering

Competitive

Comparative

ProductAdvertising

InstitutionalAdvertising

Advocacy advertising

6


Onlinehttp://www.pizzahut.comhttp://www.papajohns.com

Product AdvertisingProduct AdvertisingPioneeringPioneering

Stimulates primary demand for new product or category

Used in the PLC introductory stage

CompetitiveCompetitive Influences demand for brand in the

growth phase of the PLC Often uses emotional appeal

ComparativeComparative Compares two or more competing

brands’ product attributes Used if growth is sluggish, or if

competition is strong2

6



Discuss the creative decisions in developing an advertising campaign

7

7


Steps in Creating an Advertising Steps in Creating an Advertising CampaignCampaign

Determine the advertising objectives

Make creative decisions Make media decisions

Evaluate the campaign

7


Setting Objectives: The DAGMAR Setting Objectives: The DAGMAR ApproachApproach

Define target audience

Define desired percentage change

Define the time frame for change

7


Creative DecisionsCreative Decisions

Develop and evaluateadvertising appeals

Execute the message

Evaluate thecampaign’s effectiveness

Identify product benefits

7


Identify Product BenefitsIdentify Product Benefits

7

Attribute

Benefit

“Powerade’s new line has been reformulated to combine the scientific

benefits of sports drinks with B vitamins and to speed up energy metabolism.”

So?

“So, you’ll satisfy your thirst with a great-tasting drink that will power you

throughout the day.”


Common Advertising AppealsCommon Advertising AppealsProfit

Health

Love or romance

Fear

Admiration

Convenience

Fun and pleasure

Vanity and egotism Environmental Consciousness

Product saves, makes, or protects money

Appeals to body-conscious or health seekers

Used in selling cosmetics and perfumes

Social embarrassment, old age, losing health

Reason for use of celebrity spokespeople

Used for fast foods and microwave foods

Key to advertising vacations, beer, parks

Used for expensive or conspicuous items

Centers around environmental protection

7


Unique Selling PropositionUnique Selling Proposition

Unique Selling PropositionUnique Selling Proposition

A desirable, exclusive, and believable advertising appeal selected as the

theme for a campaign.

7


Executing the MessageExecuting the Message

Mood or Image

Musical

Demon-stration

Scientific

Real/AnimatedProductSymbols

Fantasy

LifestyleSlice-of-Life

Humorous

CommonCommonExecutionalExecutional

StylesStyles

Spokes-person/

Testimonial

7



Describe media evaluation and selection techniques

8

8


Major Types of Advertising MediaMajor Types of Advertising MediaNewspapers

Magazines

Radio

Television

Outdoor Media

Internet

Alternative Media

8


NewspapersNewspapersAdvantagesAdvantages

Geographic selectivity Short-term advertiser

commitments Immediacy Year-round readership High individual market

coverage Co-op and local tie-in

availability Short lead time

DisadvantagesDisadvantages

Limited demographic selectivity

Limited color Low pass-along rate May be expensive

8


MagazinesMagazines

8

Good reproduction Demographic selectivity Regional/local selectivity Long advertising life High pass-along rate

Long-term advertiser commitments

Slow audience build-up Limited demonstration

capabilities Lack of urgency Long lead time

AdvantagesAdvantages DisadvantagesDisadvantages


No visual treatment Short advertising life High frequency to generate

retention Background distractions Commercial clutter


RadioRadio

Low cost Immediacy of message Short notice okay No seasonal audience

change Highly portable Short-term advertiser

commitments Entertainment carryover

8


TelevisionTelevision

8

Wide, diverse audience Low cost per thousand Creative and

demonstrative Immediacy of messages Entertainment carryover Demographic selectivity

with cable

Short life of message Consumer skepticism High campaign cost Little demographic

selectivity with stations Long-term advertiser

commitments Long lead times for

production Commercial clutter



Outdoor MediaOutdoor Media

8

Repetition Moderate cost Flexibility Geographic selectivity

Short message Lack of demographic

selectivity High “noise” level



InternetInternet

8

Fast growing Ability to reach narrow

target audience Short lead time Moderate cost

Difficult to measure ad effectiveness and ROI

Ad exposure relies on “click through” from banner ads

Not all consumers have access to internet


Onlinehttp://www.fox.comhttp://www.abc.com


Examples of Alternative MediaExamples of Alternative Media

Onlinehttp://www.looksmart.com/aboutus/media

http://www.yahoo.com/info/advertising

http://www.bmw.com

8

Ads in Movies and Videos

Interactive Kiosks

Computer Screen Savers

Video Shopping Carts

Fax Machines

CD-ROMs

Advertainments


Media Mix DecisionsMedia Mix DecisionsCost perContact

Reach

Frequency

AudienceSelectivity

The cost of reaching one member of the target market.

The number of target consumers exposed to a commercial at least

once during a time period.The number of times an individual is exposed to a message during a time

period.

The ability of an advertising medium to reach a precisely defined market.

8


Media SchedulingMedia SchedulingContinuous

Media Schedule

Flighted Media Schedule

PulsingMedia Schedule

SeasonalMedia Schedule

Advertising is run steadily throughout the period.

Advertising is run heavily every other month or every two weeks.

Advertising combines continuous scheduling with flighting.

Advertising is run only when the product is likely to be used.

8

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