Advertisements, Advertisements, Promotions, and News Promotions, and News

ReleasesReleases

Chapter 10Chapter 10

Deny A. Kwarywww.kwary.net

Main TopicsMain Topics

Marketing MixMarketing Mix Promotion MixPromotion Mix Planning an advertising and Planning an advertising and

promotional campaignpromotional campaign Communicating with an Communicating with an

advertisement advertisement Planning a news releasePlanning a news release

Marketing Mix (the four Marketing Mix (the four Ps)Ps) Product:Product:

– Product variety, quality, design, features, Product variety, quality, design, features, brand name, packaging, sizes, services, brand name, packaging, sizes, services, warranties.warranties.

PricePrice– List price, Discounts, Allowances, Payment List price, Discounts, Allowances, Payment

period, Credit termsperiod, Credit terms PlacePlace

– Channels, Locations, TransportChannels, Locations, Transport PromotionPromotion

– Advertising, sales promotion, public relations, Advertising, sales promotion, public relations, personal selling, direct marketing.personal selling, direct marketing.

Promotional mixPromotional mix

‘‘Promotional mixPromotional mix’ – term given to ’ – term given to the combination of promotional the combination of promotional approaches that an organisation uses approaches that an organisation uses to communicate with the world to communicate with the world around it. around it.

Promotion Mix Promotion Mix (Promotion Channels)(Promotion Channels)

AdvertisingAdvertising

Sales promotionSales promotion

Public relationsPublic relations

Personal sellingPersonal selling

Direct marketingDirect marketing

Focus on Three ChannelsFocus on Three Channels

Advertising:Advertising: Any paid form of Any paid form of nonpersonal presentation and promotion of nonpersonal presentation and promotion of a product.a product.

Sales promotion:Sales promotion: Short term incentives Short term incentives to encourage trial or purchase of a product. to encourage trial or purchase of a product.

Public relations:Public relations: A variety of programs A variety of programs designed to promote and/or protect a designed to promote and/or protect a company’s image or its individual products.company’s image or its individual products.

Advertising and Advertising and Sales promotionSales promotion

Can serve a variety of communication Can serve a variety of communication objectives:objectives:

creating or increasing awareness (e.g. creating or increasing awareness (e.g. informing the target market of a new service);informing the target market of a new service);

informing or educating (e.g. explaining how to informing or educating (e.g. explaining how to make better use of a service);make better use of a service);

stimulating various types of ‘purchase’ stimulating various types of ‘purchase’ decision (e.g. encouraging people to buy a decision (e.g. encouraging people to buy a product).product).

Planning an advertising andPlanning an advertising andpromotional campaignpromotional campaign

Imagine that you are the Imagine that you are the product managerproduct manager responsible for launching responsible for launching VegetaleVegetale in your in your organisation’s Northern European sales organisation’s Northern European sales territory. territory.

It is a new, vegetable-based, high-protein It is a new, vegetable-based, high-protein food that is being positioned as an food that is being positioned as an attractive alternative to meat.attractive alternative to meat.

How would you develop an advertising How would you develop an advertising campaign, as the product moves from the campaign, as the product moves from the development stage to its initial launch in development stage to its initial launch in this market?this market?

1. Marketing research1. Marketing research

e.g. e.g. (1) (1) Who buys food for the Who buys food for the household? household?

(2)(2) What are the existing alternatives to What are the existing alternatives to meat, and how are they perceived by meat, and how are they perceived by both consumers and non-consumers? both consumers and non-consumers?

(3)(3) What do people already know and What do people already know and think of think of VegetaleVegetale and the company’s and the company’s other products?other products?

Planning an advertising andPlanning an advertising andpromotional campaign promotional campaign (continued)(continued)

2. Identifying target market(s)2. Identifying target market(s)

e.g.e.g. In the In the Vegetale Vegetale example, your example, your research suggests that the research suggests that the demographic profile is likely to demographic profile is likely to comprise females aged 20 to 35 who comprise females aged 20 to 35 who are professionals and skilled workers are professionals and skilled workers (socio-economic groups). (socio-economic groups).

Planning an advertising andPlanning an advertising andpromotional campaign promotional campaign (continued)(continued)

Market SegmentationMarket Segmentation

GeographicGeographic •Region•Density

•Age•Gender•Occupation•Education

•Social class•Lifestyle

•Occasions•Loyalty status

BehavioralBehavioral

PsychographicPsychographic

DemographicDemographic

Mass MarketingMass Marketing

VersusVersus

Target MarketingTarget Marketing

3. Developing campaign objectives3. Developing campaign objectives– 25% unprompted recall of 25% unprompted recall of Vegetale Vegetale in your in your

target market, by the end of a 3-month media target market, by the end of a 3-month media campaigncampaign

4. Planning and budgeting4. Planning and budgeting– the channels to be used (e.g. newspaper the channels to be used (e.g. newspaper

and television adverts, in-store and television adverts, in-store promotions); promotions);

– the timescale of the campaign;the timescale of the campaign;

Planning an advertising andPlanning an advertising andpromotional campaign promotional campaign (continued)(continued)

5. Drafting material – key messages5. Drafting material – key messages

e.g.e.g. your key messages might be that your key messages might be that VegetaleVegetale is a new, nutritious, low-fat is a new, nutritious, low-fat product, derived entirely from natural product, derived entirely from natural vegetable ingredients, which can be vegetable ingredients, which can be prepared much like meat and which has a prepared much like meat and which has a similar texture to veal.similar texture to veal.

Planning an advertising andPlanning an advertising andpromotional campaign promotional campaign (continued)(continued)

Challenges of direct Challenges of direct engagementengagement

Product samplesProduct samples – ‘trial size’ shampoos, attached – ‘trial size’ shampoos, attached to magazines or delivered to the door, and cut-down to magazines or delivered to the door, and cut-down versions of computer software packages, supplied versions of computer software packages, supplied as a CD-Rom or downloaded via the Internet. as a CD-Rom or downloaded via the Internet. e.g. In 1960s, a company was forced to e.g. In 1960s, a company was forced to discontinue its new promotional campaign for razor discontinue its new promotional campaign for razor bladesblades

BECAUSE inquisitive children across the country BECAUSE inquisitive children across the country began opening product samples that had been began opening product samples that had been dropped through their letterboxes.dropped through their letterboxes.

Challenges of direct Challenges of direct engagement (continued)engagement (continued)MiscalculationsMiscalculations e.g. In the early 1990s, Hoover offered its UK e.g. In the early 1990s, Hoover offered its UK

customers two ‘free’ flights to European or US customers two ‘free’ flights to European or US destinations if they spent more than £100 on its destinations if they spent more than £100 on its productsproducts

It was worth purchasing a Hoover product, simply It was worth purchasing a Hoover product, simply to secure the two free flights.to secure the two free flights.

The offer was massively over-subscribed, leading The offer was massively over-subscribed, leading to legal actions by disappointed customers, a to legal actions by disappointed customers, a public relations disaster, multi-million pound public relations disaster, multi-million pound losses and the subsequent departure of several losses and the subsequent departure of several senior executives.senior executives.

Table 10.1 Some popular advertising formats

Some popular Some popular advertising formatsadvertising formats

Slice of Life This traditional format has been commonly used on television adverts for fast-moving consumer goods and domestic appliances such as washing machines.

Humorous Visual and verbal humour which is used for all kinds of products.

Aspirational Imagery is used, either to enhance a brand identity, or to suggest that consumers can obtain some element of fantasy lifestyle by purchasing the product.

Some popular Some popular advertising formats advertising formats (continued)(continued)

Table 10.1 Some popular advertising formats

EndorsementEndorsement The receiver is given an assurance The receiver is given an assurance regarding the message, because it is regarding the message, because it is delivered by someone that they know delivered by someone that they know or trust.or trust.

DemonstrationDemonstration It is effective for introducing novel It is effective for introducing novel products or ones that are difficult to products or ones that are difficult to understand.understand.

PostmodernPostmodern Bizarre and self-parodying adverts Bizarre and self-parodying adverts where the promotional message where the promotional message appears obscure, if not unintelligible.appears obscure, if not unintelligible.

An example of An example of a Postmodern Adverta Postmodern Advert

Measured Advertising Dollars (2004) for Selected Fast Food Brands

Source: “The Top 200 Megabrands”, Advertising Age. July 18, 2005. Accessed August 7, 2005.

Public relationsPublic relations

The UK’s Institute of Public Relations The UK’s Institute of Public Relations (IPR) has defined this communication (IPR) has defined this communication role as ‘the planned and sustained role as ‘the planned and sustained effort to establish and maintain goodwill effort to establish and maintain goodwill and mutual understanding between an and mutual understanding between an organisation and its publics’ organisation and its publics’

(IPR 2003). (IPR 2003).

Figure 10.2 An organisation’s dialogue with its stakeholders

An organisation’s dialogue with its An organisation’s dialogue with its stakeholders stakeholders

Successful PRSuccessful PR

PR can only be successful if it addresses the PR can only be successful if it addresses the following key principles:following key principles: Senior management commitment is Senior management commitment is essentialessential PR activity must be linked to strategic aimsPR activity must be linked to strategic aims Organisations must understand and Organisations must understand and engage engage with its publicswith its publics PR strategies require plans, budgets and PR strategies require plans, budgets and

resourcesresources Feedback from PR activity should inform Feedback from PR activity should inform

strategic changestrategic change

PR activities and PR activities and communication channelscommunication channels

Corporate brochuresCorporate brochures SponsorshipSponsorship LobbyingLobbying Internal communicationInternal communication News releases News releases Exhibitions and eventsExhibitions and events

Planning a news releasePlanning a news release

A news release:A news release:

A statementA statement, often about the launch of a new , often about the launch of a new product, service or event used by an product, service or event used by an organisation to brief media journalists and organisation to brief media journalists and encourage them to write articles on the encourage them to write articles on the subject. subject.

Unlike news articles, press releases are biased Unlike news articles, press releases are biased towards the perspective of the organisation.towards the perspective of the organisation.

Typical format for a news Typical format for a news releaserelease

The message content demonstrates a The message content demonstrates a number of ‘good practice’ features, number of ‘good practice’ features, including:including: the provision of relevant facts, addressing the provision of relevant facts, addressing

the six fundamental news questions (i.e. the six fundamental news questions (i.e. who? what? when? where? why? how?);who? what? when? where? why? how?);

placing the most important facts at the placing the most important facts at the beginning;beginning;

presenting the information in a clear and presenting the information in a clear and simple format;simple format;

providing relevant contact detailsproviding relevant contact details

Organisation Name and Logo

Release Date/TimeDescriptive

headingMain news point

Subsidiary news points

About the organisation

Contact names and numbers