Presentation on theme: "A Framework for Marketing Management"— Presentation transcript:
1 A Framework for Marketing Management Chapter 16Managing Mass CommunicationsCopyright 2009, Prentice-Hall, Inc.
2 Copyright 2009, Prentice-Hall, Inc. Chapter QuestionsWhat are the steps in developing an advertising program?How should sales promotion decisions be made?What are the guidelines for effective brand-building events and experiences?How can companies exploit the potential of public relations and publicity?Copyright 2009, Prentice-Hall, Inc.
3 Developing and Managing An Advertising Program Advertising—any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.Major decisions (Five Ms):Mission—What are the objectives?Money—How much can be spent?Message—What message should be sent?Media—What media should be used?Measurement—How should the results be evaluated?Copyright 2009, Prentice-Hall, Inc.
4 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:InformPersuadeRemindReinforceCopyright 2009, Prentice-Hall, Inc.
5 Deciding on the Advertising Budget Factors to consider:Product life cycle stageMarket share and consumer baseCompetition and clutterAdvertising frequencyProduct substitutabilityCopyright 2009, Prentice-Hall, Inc.
6 Developing the Advertising Campaign Message generation and evaluationCreative development and executionLegal and social issuesCopyright 2009, Prentice-Hall, Inc.
7 Deciding on Media and Measuring Effectiveness Deciding on reach, frequency, and impactChoosing among major media typesSelecting specific vehiclesDeciding on media timing and allocationEvaluating advertising effectivenessCopyright 2009, Prentice-Hall, Inc.
8 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.Copyright 2009, Prentice-Hall, Inc.
9 Choosing Among Major Media Types Consider four main variables:Target audience’s media habitsProductMessageCostCopyright 2009, Prentice-Hall, Inc.
10 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.BillboardsPublic spacesProduct placementPoint-of-purchaseCopyright 2009, Prentice-Hall, Inc.
11 Selecting Specific Vehicles Audience size can be measured by:Circulation—number of physical units carrying the advertising.Audience—number of people exposed to the vehicle.Effective audience—number of people with target audience characteristics exposed to the vehicle.Copyright 2009, Prentice-Hall, Inc.
12 Deciding on Media Timing and Allocation Continuity—exposures appear evenly throughout a given period.Concentration—spending all ad dollars in a single period.Flighting—advertise for a period, followed by a period with no advertising, followed by a second period of advertising activity.Pulsing—continuous advertising at low-weight levels reinforced periodically by waves of heavier activity.Copyright 2009, Prentice-Hall, Inc.
13 Evaluating Advertising Effectiveness Communication-effect research (called copy testing)—seeks to determine whether an ad is communicating effectively.Pretesting—before an ad is placed.Posttesting—after an ad is placed.Formula for measuring sales impact of advertising:Share of expendituresShare of voiceShare of mind and heartShare of marketCopyright 2009, Prentice-Hall, Inc.
14 Copyright 2009, Prentice-Hall, Inc. Sales PromotionA collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.Copyright 2009, Prentice-Hall, Inc.
15 Copyright 2009, Prentice-Hall, Inc. Sales Promotion ToolsConsumer promotionsSamplesCouponsCash refund offersPrice packsPremiumsFrequency programsPrizesPatronage awardsFree trialsWarrantiesTie-in and cross promotionsPoint-of-purchase displays and demonstrationsTrade promotionsPrice-offAllowancesFree goodsBusiness and sales-force promotionsTrade shows and conventionsSales contestsSpecialty advertisingCopyright 2009, Prentice-Hall, Inc.
16 Sales Promotion Objectives Attract new usersReward loyal customersIncrease repurchase ratesAttract brand switchersCopyright 2009, Prentice-Hall, Inc.
17 Advertising vs. Promotion Reasons for decreasing advertising-to-sales-promotions ratios:Top management acceptance of promotionIncrease in number of brandsCompetitors use promotions frequentlyBrands seen as similarConsumers more price-orientedTrade demands more dealsDeclining advertising efficiencyCopyright 2009, Prentice-Hall, Inc.
18 Major Sales Promotion Decisions Establish objectivesSelect the toolsDevelop the programPretest the programImplement and control programEvaluate the resultsCopyright 2009, Prentice-Hall, Inc.
19 Copyright 2009, Prentice-Hall, Inc. Events ObjectivesIdentify with a particular target market or life styleIncrease awareness of company or product nameCreate or reinforce perceptions of key brand image associationsEnhance corporate imageCreate experiences and evoke feelingsExpress commitment to the community or on social issuesEntertain key clients or reward key employeesPermit merchandising or promotional opportunitiesCopyright 2009, Prentice-Hall, Inc.
20 Major Sponsorship Decisions Choosing event opportunitiesDesigning sponsorship programsEvent creationMeasuring sponsorship activitiesCopyright 2009, Prentice-Hall, Inc.
21 Copyright 2009, Prentice-Hall, Inc. Creating ExperiencesExperiential marketing not only communicates features and benefits but also connects a product or service with unique and interesting experiences.Copyright 2009, Prentice-Hall, Inc.
22 Copyright 2009, Prentice-Hall, Inc. Public RelationsPublic—any group that has an actual or potential interest in or impact on a company’s ability to achieve its objectives.Public relations (PR)—includes a variety of programs to promote or protect a company’s image or individual products.Copyright 2009, Prentice-Hall, Inc.
23 PR Department Functions Press relationsProduct publicityCorporate communicationLobbyingCounselingCopyright 2009, Prentice-Hall, Inc.
24 Marketing Public Relations (MPR) Launching new productsRepositioning a mature productBuilding interest in a product categoryInfluencing specific target groupsDefending products that have encountered public problemsBuilding the corporate image in a way that reflects favorably on its productsCopyright 2009, Prentice-Hall, Inc.
25 Major Tools in Marketing PR PublicationsEventsSponsorshipsNewsSpeechesPublic-service activitiesIdentity mediaCopyright 2009, Prentice-Hall, Inc.
26 Major Decisions in Marketing PR Establish marketing objectivesChoose messages and vehiclesImplement and evaluate the planCopyright 2009, Prentice-Hall, Inc.