Marketing Management 27th of June 2011

Advertising and Public Relations

Developing Advertising Strategy Selecting Advertising Media Four Major Advertising Media Selection Decisions: Deciding on Reach, Frequency, and Impact Choosing Amongst Major Media Types Selecting Specific Media Vehicles Deciding on Media Timing

Selecting Advertising Media Deciding on Reach, Frequency, and Impact Reach is the % of target market people exposed to the ad at a given time Frequency is the no. of times the avg person in the target market is exposed to the message Media Impact is the qualitative value of the message exposure through a given medium Advertisers want media that engages consumers rather than just reach them Engagement generally happens inside the consumer not inside the medium Engagement enables you to start founding a relationship

Selecting Advertising Media Choosing Amongst Major Media Types Media planner is responsible for knowing the reach, frequency and impact of all media types Media planners need to choose media which will effectively and efficiently present the message to the target consumer Need to consider the medium’s impact, message effectiveness and costs Media mix has to consistently be re-examined because of shifts taking place in the media scene Alternative media can save costs and be better target your consumers Media multi taskers are a growing global trend

Choosing Amongst Major Media Types

Selecting Advertising Media Selecting Specific Media Vehicles These are specific media within general types e.g. TV vehicles are news, soapies, sports etc Media planner must consider cost per thousand people reached by the vehicle Media with the lowest cost per thousand for reaching target consumers is favoured Costs of production for various media must also be considered Media planner must balance media costs against several media effectiveness factors: Audience quality Audience engagement Editorial quality

Selecting Specific Media Vehicles

Selecting Advertising Media Deciding on Media Timing Deciding how to schedule advertising over an annual period Sometimes seasonal advertising is favoured to follow seasonal sales or to flatten sales throughout the year Advertisers also have to consider the pattern of the adverts: Continuity – scheduling evenly throughout a period Pulsing – scheduling unevenly over a given time period

Evaluating Advertising Effectiveness and ROI How do we know we’re spending the right amount on advertising? and What return are we getting on our advert investments? Advertisers always need to evaluate 2 advertising results: Communication effects: is the ad message being communicated well Profit and Sales effects: How are the sales affected by the advert and its messaging Measuring the effectiveness of advertising is still not an exact science – too difficult to measure No real metrics available for advertisers to use apart from consumer responses and product sales Judgement and Qualitative analysis is still popular

Other Advertising Considerations Two important functions: Organising the advertising function and Adapting advertising strategies for International markets Organising for Advertising Who and which department looks after advertising International Advertising Decisions Unique characteristics of different country markets Some companies have standard worldwide advertising Benefits of standardisation – lower costs, greater global coordination, consistent worldwide image Disadvantages of standardisation – countries have different cultures and demographics, different economic conditions

Other Advertising Considerations Advertising Agency: A marketing services firm that assists companies in planning, preparing, implementing and evaluating portions or all advertising programs Think globally and act locally – means of overcoming limitations of standardisation Develop global advertising strategies to make worldwide advertising more efficient and consistent Adapt the strategies to make them responsive to consumer needs within a local market Global Advertising Challenges Media costs and availability differ from country to country Advertising practice regulations differ Systems, laws which define company advertising Specific advertising must be adapted to meet local cultures, customs, media characteristics and advertising regulations

Public Relations

Public Relations Public Relations: building good relations with the company’s various publics through favourable publicity, building a good corporate image, and handling unfavourable rumours, stories and events Functions of Public Relations: Press Relations Product Publicity Public Affairs Lobbying Investor Relations Development PR is used to promote products, people, places, ideas, activities, organisations and nations Companies use PR to build good relations with consumers, investors, media and the community

Role and Impact of PR PR can achieve great awareness at far lower costs than advertising Space and time in the media isn’t paid for In house interesting stories can be developed and picked up by numerous media PR has more credibility than advertising The limited and scattered use of PR makes people refer to it as a marketing step child Sometimes PR related product marketing objectives are ignored because of publics involvement PR can be an extremely powerful brand building tool PR and Advertising should work collectively as part of the IMC program to build brands and relationships

Role and Impact of PR

Major Public Relations Tools News: PR professionals create favourable news, Events and activities also create news Speeches: planned trade associations, press conferences Special Events: opening functions, conferences, awards Audiovisual Materials: DVDs, slide and sound programs Corporate Identity Materials: logo’s, stationery, brochures, business cards, uniforms Public Service Activities: donations and community involvements Buzz Marketing and Social Networking Websites

See you next time. Cheers Guys!