1. Communications and Advertising Strategy Chapter Ten

2. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-2 Key Learning Points Basic model of communication and how technology is changing that model Elements of an IMC program Setting advertising goals and selecting target audiences Developing message strategies Key elements of media planning How advertising budgets are set Alternative approaches to evaluating advertising spending

3. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-3 “Forward-looking organizations are stressing a concept called integrated marketing communications (IMC), in which the marketing manager does not think of all the elements of the communications mix as communicating separate messages. Instead, these messages are coordinated to reinforce what each is saying and to present customer confusion from conflicting messages. - Russell S. Winer

4. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-4 Figure 10.2 Model of the Communication Process

5. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-5 Figure 10.3 Traditional Mass Communication Model

6. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-6 Figure 10.4 Modified Mass Communication Model

7. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-7 Discussion Questions 1.How should marketing managers manage brand communities? 2.What are the ethical aspects involved with managing brand communities? 3.Who is really the sender and who is the receiver? Successfully managing brand communities is a key challenge facing marketers today.

8. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-8 Figure 10.5 Traditional Trade-off Between Richness and Reach

9. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-9 Activity Where would you place each of the marketing communication techniques on the chart? * Personal selling * Opt-in e-mail ads * Newspaper ads * Banner ads * Network TV ads * Direct mail ads * Magazine ads * Outdoor ads * Radio ads

10. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-10 Figure 10.6 Elements of the Communication Mix

11. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-11 Table 10.1 Advertising Expenditures: Consumer vs. Business-to-Business Products

12. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-12 Integrated Marketing Communications Advertising:DefinitionAdvantagesDrawbacks

13. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-13 Direct marketing Direct marketing defined Direct marketing forms Key advantages Key drawbacks Integrated Marketing Communications

14. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-14 Integrated Marketing Communications Sales promotion Sales promotion defined Sales promotion classification AdvantagesDisadvantages

15. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-15 Integrated Marketing Communications Publicity and public relations Publicity defined Key advantage Key drawback

16. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-16 Integrated Marketing Communications Personal selling Personal selling defined Key advantages Key drawbacks Miscellaneous communication activities

17. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-17 Table 10.2 Top 10 U.S. Total Advertising Spenders

18. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-18 Table 10.3 Top B-to-B Advertising Spenders

19. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-19 Table 10.4 Top Global Advertisers in 2008

20. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-20 Advertising Management 6M Model of Communications Planning MarketMissionMessageMediaMoneyMeasurement

21. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-21 Advertising Management Market: Selecting the target audience Selecting target audiences Including non-customer targets Mission: Setting advertising goals Sales is typically not used as an advertising objective except for direct-response ads. Models of how advertising creates a customer response provide intermediate goals.

22. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-22 Figure 10.7 Models of Advertising Response

23. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-23 Figure 10.8 Advertising Goals over the PLC

24. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-24 Figure 10.9 Advertising Goals over the PLC

25. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-25 Advertising Management Message: Developing the message strategy Emotional appeals Attempt to appeal to an underlying psychological aspect of the purchase decision. There are several general types. Emotional appeals may enhance recall and brand liking.

26. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-26 Advertising Management Creative Execution Approaches Straight-sell or factual message Scientific/technical evidence ComparisonsTestimonialsAnimationHumor Product demonstration Personality symbols Slice of life FantasyDramatization

27. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-27 Figure 10.10, Part A Classification of Copy-Testing Methods

28. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-28 Figure 10.10, Part B Classification of Copy-Testing Methods

29. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-29 Advertising Management Media: Selecting media Selecting media has become more difficult due to alternative and minor media. Budgets are being shifted towards new media. Media planning has three aspects.

30. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-30 Advertising Management TelevisionStrengthsWeaknessesMagazinesStrengthsRadioStrengthsWeaknesses

31. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-31 Advertising Management Cable TV StrengthsWeaknessesOutdoorStrengthsWeaknesses

32. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-32 Table 10.5 U.S. Measured Media for All Advertisers

33. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-33 Table 10.6 U.S. Online Advertising Spending

34. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-34 Figure 10.11 Google Page Visit YouTube to learn more about Google’s advertising model.YouTube

35. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-35 Table 10.7 Google Page

36. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-36 Advertising Management New media: Influencing word-of-mouth Up-and-comers (other media) Many media are too new to evaluate in terms of effectiveness.

37. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-37 Advertising Management Media: selecting media Choosing the specific vehicles Analyzing media Contextual fit Duplication and wearout Scheduling advertising Setting the advertising budget

38. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-38 Figure 10.12 Relationship between Cumulative Ad Spending and Market Share

39. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-39 Table 10.8 Top 5 and Bottom 5 Advertisers in Sales per Dollar of Advertising

40. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-40 Table 10.9 Top 5 and Bottom 5 Industry Ad-to- Sales Ratio in 2001 by SIC Code

41. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-41 Advertising Management Measure: Measuring Advertising Effects Tracking studies over time Experimentation

42. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-42 Advertising Management Objective guarantees Marketing mix modeling Technology’s impact on advertising

43. Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-43 Executive Summary Communication theory underlies marketing communications. IMC has become central to business’ communication strategies. The 6M model of communication guides the advertising management process. New communication technologies have made media decisions more complex. Multiple methods of assessing advertising effectiveness are being used.