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A Framework forMarketing Management

Chapter 16Chapter 16Managing Mass Communications

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Chapter Questions

What 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?

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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?

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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: Inform Persuade Remind Reinforce

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Deciding on the Advertising Budget Factors to consider:

Product life cycle stage Market share and consumer base Competition and clutter Advertising frequency Product substitutability

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Developing the Advertising Campaign Message generation and evaluation Creative development and execution Legal and social issues

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Deciding on Media and Measuring Effectiveness Deciding on reach, frequency, and impact Choosing among major media types Selecting specific vehicles Deciding on media timing and allocation Evaluating advertising effectiveness

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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.

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Choosing Among Major Media Types Consider four main variables:

Target audience’s media habits Product Message Cost

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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. Billboards Public spaces Product placement Point-of-purchase

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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.

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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.

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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 expenditures Share of voice Share of mind and heart Share of market

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Sales Promotion

A collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.

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Sales Promotion Tools

Consumer promotions Samples Coupons Cash refund offers Price packs Premiums Frequency programs Prizes Patronage awards Free trials Warranties Tie-in and cross promotions Point-of-purchase displays and

demonstrations

Trade promotions Price-off Allowances Free goods

Business and sales-force promotions

Trade shows and conventions Sales contests Specialty advertising

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Sales Promotion Objectives

Attract new users Reward loyal customers Increase repurchase rates Attract brand switchers

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Advertising vs. Promotion

Reasons for decreasing advertising-to-sales-promotions ratios: Top management acceptance of promotion Increase in number of brands Competitors use promotions frequently Brands seen as similar Consumers more price-oriented Trade demands more deals Declining advertising efficiency

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Major Sales Promotion Decisions Establish objectives Select the tools Develop the program Pretest the program Implement and control program Evaluate the results

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Events Objectives

Identify with a particular target market or life style

Increase awareness of company or product name

Create or reinforce perceptions of key brand image associations

Enhance corporate image

Create experiences and evoke feelings

Express commitment to the community or on social issues

Entertain key clients or reward key employees

Permit merchandising or promotional opportunities

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Major Sponsorship Decisions

Choosing event opportunities Designing sponsorship programs Event creation Measuring sponsorship activities

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Creating Experiences

Experiential marketing not only communicates features and benefits but also connects a product or service with unique and interesting experiences.

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Public Relations

Public—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.

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PR Department Functions

Press relations Product publicity Corporate communication Lobbying Counseling

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Marketing Public Relations (MPR) Launching new products Repositioning a mature product Building interest in a product category Influencing specific target groups Defending products that have encountered

public problems Building the corporate image in a way that

reflects favorably on its products

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Major Tools in Marketing PR

Publications Events Sponsorships News

Speeches Public-service activities Identity media

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Major Decisions in Marketing PR Establish marketing objectives Choose messages and vehicles Implement and evaluate the plan

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