4 The Marketing Communications Mix AdvertisingThe Marketing Communications MixAny Paid Form of Nonpersonal Presentation by an Identified Sponsor.Sales PromotionShort-term Incentives to Encourage Trial or Purchase.Personal SellingPublic RelationsProtect and/or Promote Company’s Image/products.Personal Presentations.Direct Communications With Individuals to Obtain an Immediate Response.Direct Marketing
5 AdvertisingAdvertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.U.S. advertisers spend in excess of $175 billion each year.Advertising is used by:Business firmsNonprofit organizationsProfessionalsSocial Agencies
6 Firm that Assists Companies Ways to Handle AdvertisingAdvertisingDepartmentsin LargerCompaniesSales DepartmentsinSmall CompaniesAdvertising AgencyFirm that Assists Companiesin Planning, Preparing,Implementing andEvaluating TheirAdvertisingPrograms.dr wady
7 MISSION MEDIA The Five Ms Of Advertising money MEEEAGE MEASUREEMENTMISSIONMEDIAThe Five MsOf AdvertisingmoneyMEEEAGE
8 The meaning of The Five Ms Of AdvertisingWhat are the advertising objective?MissionHow much can be spend ?moneyWhat message should send?MessageMediaWhat media should be used?MeasurementHow should the results be evaluated?
9 Major Decisions in Advertising Developing and Advertising ProgramsFigure 1 : Major advertising decisions
10 Setting Advertising Objectives An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific timeObjectives are classified by primary purposeInformPersuadeRemindNote to InstructorThis YouTube ad is a bit of a blonde joke ad. It is a persuading ad for Mercedes.
11 Setting Objectives Informative Advertising Persuasive Advertising Build Primary DemandPersuasive AdvertisingBuild Selective DemandComparison AdvertisingCompares One Brand to AnotherReminder AdvertisingKeeps Consumers ThinkingAbout a Product.
12 Setting Advertising Objectives Informative advertising is used when introducing a new product category; the objective is to build primary demand Comparative advertising directly or indirectly compares the brand with one or more other brands Persuasive advertising is important with increased competition to build selective demand Reminder advertising is important with mature products to help maintain customer relationships and keep customers thinking about the productNote to InstructorDiscussion QuestionWhen would an advertiser use each of these types of objectives?You can then draw a strong tie to the PLC. This YouTube link is to a classic Pepsi ad, which is practicing persuasive advertising.
14 The advertising objectives should emerge from a thorough analysis of the current marketing situationIf the product class is mature , the company isthe market leader and brand usage is low.Then the proper objective should be tostimulate more usageIf the product class is new, the company is notthe market leader But the brand is superior the leaderThen the proper objective is The convince the market of the brands superiority
15 Advertising Budget Methods Factors in Setting the Advertising Budget Affordable, Percentage of Sales, Competitive-Parity and Objective-and-TaskProductDifferentiationStage in the ProductLife CycleFactors in Setting the Advertising BudgetAdvertisingFrequencyMarketShareCompetitionand Clutter
16 Setting the Advertising Budget Product life-cycle stageNew products require larger budgetsMature brands require lower budgetsMarket shareBuilding or taking market share requires larger budgetsMarkets with heavy competition or high advertising clutter require larger budgetsUndifferentiated brands require larger budgets
17 Developing Advertising Strategy Advertising strategy is the strategy by which the company accomplishes its advertising objectives and consists of:Creating advertising messagesSelecting advertising media
18 Click to add title Advertising Strategy Creating Advertising Messages Plan a Message StrategyGeneral Message to Be Communicated to CustomersClick to add titleAdvertising StrategyCreating Advertising Messages1-20Develop a MessageFocus onCustomer BenefitsCreative Concept“Big Idea”Visualization or PhraseCombination of Both.Advertising AppealsMeaningfulBelievableDistinctive
19 Creating the Advertising Message Advertisements need to break through the clutter:Gain attentionCommunicatewellNote to InstructorThis Web link is for Microsoft’s new advertising campaign that was launched in The campaign was unusual as it began with two ads featuring Bill Gates and Jerry Seinfeld. These ran for only a short period of time and were followed immediately by the “I’m a PC” campaign. There is thought that the Gates/Seinfeld spots were to draw attention and create buzz because they were not very strongly received by the public.Advertisements need to be better planned, more imaginative, more entertaining, and more rewarding to consumers.Madison & Vine—the intersection of Madison Avenue and Hollywood—represents the merging of advertising and entertainment.
20 Creating the Advertising Message Advertisements need to be better planned, more imaginative, more entertaining, and more rewarding to consumersMadison & Vine—the intersection of Madison Avenue and Hollywood—represents the merging of advertising and entertainment in an effort to break through the clutter and create new avenues for reaching consumers with more engaging messages
21 Creating the Advertising Message Message strategyCreative conceptMessage execution
22 Creating the Advertising Message Message strategy is the general message that will be communicated to consumersIdentifies consumer benefitsNote to InstructorThis YouTube Web link is to a funny Southwest Airlines ad. It stresses the need to get away and the low prices the airline offers.
23 Creating the Advertising Message Creative concept is the idea that will bring the message strategy to life and guide specific appeals to be used in an advertising campaignCharacteristics of the appeals include:MeaningfulBelievableDistinctive
24 Creating the Advertising Message Message execution is when the advertiser turns the big idea into an actual ad execution that will capture the target market’s attention and interest.The creative team must find the best approach, style, tone, words, and format for executing the message.
25 Creating the Advertising Message Slice of lifeLifestyleFantasyMood or imageMusicalPersonality symbolTechnical expertiseScientific evidenceTestimonial or endorsementNote to InstructorDiscussion QuestionCategorize the execution of this YouTube ad.It is one of the cavemen ads for Geico. They should notice that the caveman has become a personality and this has a bit of lifestyle advertising involved.
26 Creating the Advertising Message Message execution also includes:TonePositive or negativeAttention-getting wordsFormatIllustrationHeadlineCopyNote to InstructorIn slideshow view, click on movie icon to launch eTrade video snippet. See accompanying DVD for full video segment
27 Creating the Advertising Message Consumer Generated Messages YouTube videosBrand Web site contestsPositivesLow expenseNew creative ideasFresh perspective on brandBoost consumer involvementNote to InstructorAn example of this is given in the text:Doritos held a “Crash the Super Bowl Challenge” contest that invited consumers to create their own video ads about the tasty triangular corn chips.Doritos received 1,080 user-generated videos and posted the top five on the contest Web site, where consumers could view the ads and vote for a winner.The five finalists received a $10,000 prize and PepsiCo showed the winning ad during the Super Bowl. The campaign was a smashing success.
28 Advertising Strategy Selecting Advertising Media Step 1. Decide on Reach, Frequency,and ImpactStep 2. Choosing Among Major Media TypesAdvertising Strategy Selecting Advertising Media1-20Advertising Strategy Selecting Advertising MediaThis CTR relates to the discussion on ppStep 3. Selecting Specific Media VehiclesStep 4. Deciding on Media TimingStep 5. Deciding on geographicalMedia allocationSelecting Advertising MediaIn selecting media for ads, advertisers must consider the factors that will influence reception of the message. Not all such factors are under the control of the marketer. Of those that are, the following concepts are important:Reach. Reach is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time.Frequency. Frequency is a measure of the how many times the average person in the target market is exposed to the message.Media Impact. Impact refers to the qualitative value of a message exposure through a given medium.Media Vehicles. Vehicles are specific media within a general category. Thus, “The Tonight Show” is a media vehicle on television, whereas a single magazine, The Economist, is a media vehicle in magazine print media.Media Timing. Timing involves the how and when of presenting a campaign. Advertisements should support strategic decisions based upon such factors as peak seasons and demand. Also, the pattern of the ads while shown must be considered:Continuity. This schedules ads evenly within a given period.Pulsing. This schedules ads unevenly within a given period.
29 Step 1. Decide on Reach, Frequency, and Impact Selecting Advertising MediaReach is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time Frequency is a measure of how many times the average person in the target market is exposed to the message Impact is the qualitative value of a message exposure through a given medium
30 Step 2. Choosing Among Major Media Types The major media types are television , the internet , newspaper , direct mail , magazines , radio and outdoor.Advertisers can also choose from a wide array of new digital media , such as cell phones and other digital devices.
31 Target audience media habits. Product characteristics. Step 2. Choosing Among Major Media TypesTarget audience media habits.Product characteristics.Message characteristics.Cost.
32 AdvertisingStep 3Selecting media vehicles involves decisions presenting the media effectively and efficiently to the target customer and must consider themessage’s:ImpactEffectivenessCostNote to InstructorWhen selecting specific media vehicles, the planner must consider the cost of the media as compared to its effectiveness by evaluating:Audience qualityAudience engagementEditorial quality
33 Step 3In selecting specific media vehicles, the media planner must balance media costs against several effectiveness factors such:The planner should evaluate the media vehicle’s audience qualityThe media planner should consider audience engagementThe planner should assess the vehicle's editorial quality
34 Step 4: deciding on media timing The advertiser must also decide how to schedule the advertising over the course of a year.Narrowcasting focuses the message on selected market segmentsLowers costTargets more effectivelyEngages customers better
35 Selecting Advertising Media When deciding on media timing, the planner must consider:SeasonalityPattern of the advertisingContinuity—scheduling within a given periodPulsing—scheduling unevenly within a given period
36 Step 5. Deciding on geographical Media allocationThe company makes “ notional buys “ when it placed advertising on national TV net or in nationally circulated magazines.The company makes “ local buys “ when it placed advertising on local newspapers, radio, or outdoor site .
37 Advertising Evaluation Advertising Program EvaluationAdvertising Evaluation1-20Communication EffectsIs the Ad Communicating Well?Sales EffectsIs the Ad Increasing Sales?
38 Evaluating the Effectiveness and Return on Advertising Investment Communication effects indicate whether the ad and media are communicating the ad message well and should be tested before or after the ad runs Sales and profit effects compare past sales and profits with past expenditures or through experiments
39 Developing and Advertising Programs Other Advertising Considerations Organizing for advertisingAgency vs. in-houseInternational advertising decisionsStandardizationNote to InstructorThis Web link brings you to the homepage for Advertising Age. Depending on the amount of time the instructor has during this class, it might be interesting to explore the site with the students. At the minimum, students should write down this url, especially if they have an interest in advertising.For international advertising decisions the most basic issue concerns the degree to which global advertising should be adapted to the unique characteristics of various country markets. Some large advertisers have attempted to support their global brands with highly standardized worldwide advertising, with campaigns that work as well in Bangkok as they do in Baltimore.
40 Public RelationsPublic relations involves building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events Public relations is used to promote product, people, ideas, and activities
41 Public Relations Public relations department functions include: Press relations or press agencyProduct publicityPublic affairsLobbyingInvestor relationsDevelopment
42 Public RelationsPress relations or press agency involves the creation and placing of newsworthy information to attract attention to a person, product, or service Product publicity involves publicizing specific products Public affairs involves building and maintaining national or local community relations
43 Public RelationsLobbying involves building and maintaining relations with legislators and government officials to influence legislation and regulation Investor relations involves maintaining relationships with shareholders and others in the financial community Development involves public relations with donors or members of nonprofit organizations to gain financial or volunteer support
44 The Role and Impact of Public Relations Lower cost than advertisingStronger impact on public awareness than advertising
45 Major Public Relations Tools NewsSpeechesSpecial eventsWritten materialsAudiovisual materialsCorporate identity materialsPublic service activitiesBuzz marketingSocial networkingMobile tour marketingInternet
46 Major Public Relations Decisions Click to add titleSetting Public Relations ObjectivesChoosing the Public Relations Messagesand VehiclesImplementing the Public Relations PlanEvaluating Public Relations ResultsMajor Public Relations Decisions1-20Major Public Relations DecisionsThis CTR relates to the discussion on ppPublic Relations DecisionsObjectives. Objectives are the first order of public relations business. PR must determine what it wants to accomplish and how these objectives support the overall promotion objectives.Messages. Messages require that the PR department creates the "story" it wants to tell about the company and finds the appropriate media for transmitting it.Teaching Tip: Students may wonder if editors will be angry that PR people are trying to manipulate them. If PR is open and honest, editors are willing to consider the merits of the message. Of course the company has its point of view -- but that’ legitimate and PR people can provide sources of information that save reporters time and are unavailable elsewhere.Implementation. Implementation relies as much on the personal working relationships the PR people have with media editors as the content of the stories themselves. Good relations are built on trust over time thus implementation is but one step in the on-going process of media relations.Teaching Tip: In short, PR people have to do something for editors if they expect editors to do something for them.Evaluation. Evaluation of PR efforts is difficult because so much PR is designed to support other promotion efforts. Traditional evaluation includes clippings books counting the number of media exposures.