Fundamentals of Marketing

1. Chris Banman Fall 2010 471.21 Providence College Fundamentals of Marketing

2. chapter 15 AdvertisingPublicitySales Promotion

3. ? • What do marketing managers do? • What do ad agencies do? • When advertise? • Where? • Is the Internet new? • The “copy thrust”…!? • Laws? What laws? • When is PR useful? • When are sales promotions useful?

4. Decisions • in • advertising • publicity • sales promotion

5. Decisions

6. What is an advertising agency? • Handles all or part of marketing communications for client • Vary in size • Commission for media purchases

7. Types of agencies • Full service • A la carte • Specialist

8. A Full-Service Agency will offer: • Account management. • Creative. • Media. • Traffic and production. • Account planning. • Account management.

9. Creative Team • first internal agency team members to see the brief • The brief contains a 'proposition' that the client wishes to communicate to the target audience. • The creative team will transform the proposition into something exciting and attractive to the target audience. • decide upon the 'creative concept.' This will be a motivational idea. The words used to express the creative concept are called 'copy.’ • The images, pictures and diagrams are created i.e. the 'design' or 'layout.' This is done by 'designers' and 'copywriters.' • Beware some creatives! Creatives tend to be artistic and innovative. Hence their advice should be highly regarded and any criticism should be constructive.

10. Traffic and Production • in charge of the production of the physical and artistic output, i.e. the marketing communication. • TV advert, they would commission scripts, recruit actors (mainly via agents), film crews and supporting activities (such as costumes and catering). • All ads are different and so the specifics will vary. • Print advertising, the traffic and production team would commission and sign-off all printed advertising material such as direct marketing materials, magazine ads or posters.

11. Account Planning Team • work on the 'customer's' perspective, and take an outward look at the world. • They support the creative teams by supplying data and opinion on what is actually occurring in the marketing in which advertising is to be placed. • Tend to use secondary data to support decisions, and would rarely commission original research. • However, with material supplied my organizations such as Mori, Datamonitor, ACORN, and other - the account planning team can build an image of segments to help the creatives.

12. Media Team • Organize the timing and scheduling of the marketing communications campaign. • Look at the range of media to be exploited, and then look at the best slots in which to run advertising. • Help a client to decide upon the duration of and individual slot, and how many of them to run. • Expense and return to the client are key factors that influence decision-making. • Two main skills of the media team are media planning and media buying. • Today there is a wealth of data on which media buying can be based. There is software for planning and simulation.

13. Advertising as % of Sales

14. Advertising as % of Sales

15. Possible Advertising Objectives • position brands • introduce new products • obtain outlets • ongoing contact • support sales force • get immediate action • maintain relationships

16. Advertising Objectives

17. Objective Focus Options • advertise firm • advertise product • pioneering advertising • competitive advertising • direct • indirect • comparative • reminder advertising decide!

18. Competitive Ads

19. Comparative Ads

20. Reminder Ads

21. Firm Ads • firm brand • strengthen • shape • connect divisions • build a favourable glow • advocate • causes • ideas

22. Objective Focus Options • advertise firm • advertise product • pioneering advertising • competitive advertising • direct • indirect • comparative • reminder advertising

23. Awareness  Action • get attention • hold interest • arouse desire • trigger action

24. integration vertical horizontal concerns breadth duration practicality ethics Cooperative Advertising Steinbach: The Automobile City

25. What’s the best medium? • Wide or narrow? • Are traditional media more focused? • Detailed or simple? • Action? • “Necessary?” • Content or context? • prestige • ad “neighbours” • direct (addressed) mail • direct (named) mail • unaddressed mail • flyer drop

26. “big” decisions print paper or… electronic tv radio Internet or… Or… What’s the best medium?

27. What’s the best medium?

28. What’s the best medium?

29. What’s the best medium?

30. Internet • targeting varies • response varies • see • notice • action • click • … • buy • pay for performance

31. “big” decisions print paper or… electronic tv radio Internet or… “small” decisions e.g: direct (named) mail build buy direct (addressed) mail unaddressed mail flyer drop What’s the best medium?

32. Agencies

33. Agencies

34. Results?

35. “Unfair” Advertising • government regulation • “self-regulation” • fuzzy • claims • effects change

36. news releases sponsored events press conferences interviews background “on-air” free credible attention-getting surprising effects uncertain control skills story frame novelty addictive Publicity

37. everything other than advertising publicity personal selling e.g.: coupons in-store demos “viral marketing” product placement trade fairs traditional foci: price Immediate action Sales Promotion

38. What happens after? levels after temporary drop? return to prior? new ligher? lower? price expectation the brand the product more issues: price expectation the brand the product discount expectations erosion of brand loyalty time-intensive staff money Sales Promotion text says: not for amateurs

39. product advertising institutional advertising pioneering advertising competitive advertising direct type advertising indirect type advertising comparative advertising reminder advertising advertising allowances cooperative advertising copy thrust unique selling proposition advertising agencies corrective advertising pointcasting viral marketing Terms