1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12 Prepared by Deborah Baker Texas Christian University 12 Marketing Communications & Advertising

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

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

4 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12 The Role of Promotion Overall Marketing Objectives Marketing Mix Product Distribution Promotion Price Marketing Mix Product Distribution Promotion Price Target Market Promotional Mix Advertising Public Relations Sales Promotion Personal Selling Promotion Plan Promotional Mix Advertising Public Relations Sales Promotion Personal Selling Promotion Plan 1

5 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12 Online Promotional Mix Advertising Public Relations Sales Promotion Personal Selling 1

6 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12 Advertising Media Traditional Advertising Media Traditional Advertising Media Electronic Advertising Media  Television  Radio  Newspapers  Magazines  Books  Direct mail  Billboards  Transit cards  Internet  Electronic mail  Interactive video 1

7 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12 Functions of Public Relations Evaluates public attitudes Identifies areas of public interest Identifies areas of public interest Executes programs to “win” public 1

8 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12 Sales Promotion End Consumers End Consumers Trade Customers Company Employees Company Employees 1 Free samples Contests Premiums Trade Shows Vacation Giveaways Coupons

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

10 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12 The Communication Process Noise Sender Encoding Message Feedback Channel Feedback Channel Message Channel Message Channel Decoding Message Decoding Message Receiver 2 Online

11 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12 Goals and Tasks of Promotion Informing Reminding Persuading Target Audience Target Audience 3

12 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12 A ttention I nterest D esire A ction The AIDA Concept 3 Online

13 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12 Factors Affecting the Choice of Promotional Mix Nature of the product Stage in PLC Target market factors Type of buying decision Promotion funds Push or pull strategy 4

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

15 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12 Major Types of Advertising Institutional Advertising Institutional Advertising Product Advertising Product Advertising 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

16 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12 Online Product Advertising PioneeringPioneering CompetitiveCompetitive ComparativeComparative 22 6

17 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12 Steps in Creating an Advertising Campaign Determine the advertising objectives Make creative decisions Make media decisions Evaluate the campaign 7

18 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12 Setting Objectives: The DAGMAR Approach Define target audience Define desired percentage change Define the time frame for change 7

19 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12 Creative Decisions Develop and evaluate advertising appeals Develop and evaluate advertising appeals Execute the message Evaluate the campaign’s effectiveness Evaluate the campaign’s effectiveness Identify product benefits 7

20 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12 Major Types of Advertising Media Newspapers Magazines Radio Television Outdoor Media Internet Alternative Media 8

21 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12 Online Media Mix Decisions Cost Per Contact ReachReach FrequencyFrequency 22 Audience Selectivity 8

22 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12 Media Scheduling ContinuousContinuous FlightedFlighted PulsingPulsing 22 Seasonal 8