Principles of Marketing

1. 15 Principles of Marketing Advertising and Public Relations

2. Learning Objectives After studying this chapter, you should be able to: • Define the roles of advertising in the promotion mix • Describe the major decisions involved in developing an advertising program • Define the role of public relationships in the promotion mix • Explain how companies use public relations to communicate with and influence important publics 15-2

3. Chapter Outline • Advertising • Public Relations 15-3

4. Advertising Developing Advertising Programs • Setting advertising objectives • Setting the advertising budget • Developing advertising strategy • Evaluating advertising campaigns 15-4

5. Advertising Developing Advertising Programs Setting Advertising Objectives An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific time Objectives are classified by primary purpose • Inform • Persuade • Remind 15-5

6. Advertising Developing Advertising Programs Setting Advertising Objectives Informative advertising is used when introducing a new product category; the objective is to build primary demand • Comparative advertising directly or indirectly compares the brand with one or more other brands 15-6

7. Advertising Developing Advertising Programs Setting Advertising Objectives Persuasive advertising is important with increased competition to build selective demand 15-7

8. Advertising Developing Advertising Programs Setting Advertising Objectives Reminder advertising is important with mature products to help maintain customer relationships and keep customers thinking about the product 15-8

9. Advertising Developing Advertising Programs Setting the Advertising Budget Factors to consider when setting the budget • Product life-cycle stage • Market share 15-9

10. Advertising Developing Advertising Programs Setting the Advertising Budget Product life-cycle stage • New products require larger budgets • Mature brands require lower budgets 15-10

11. Advertising Developing Advertising Programs Setting the Advertising Budget Market share • Building or taking market share requires larger budgets • Markets with heavy competition or high advertising clutter require larger budgets • Undifferentiated brands require larger budgets 15-11

12. Advertising Developing Advertising Programs Developing the Advertising Strategy Advertising strategy is the strategy by which the company accomplishes its advertising objectives. It consists of two major elements: creating the advertising message and selecting the advertising media. 15-12

13. Advertising Developing Advertising Programs Creating the Advertising Message Advertisements need to break through the clutter: • Gain attention • Communicate well 15-13

14. Advertising Developing Advertising Programs Creating the Advertising Message Advertisements need to be better planned, more imaginative, more entertaining, and more rewarding to consumers • Madison & Vine—the intersection of Madison Avenue and Hollywood—represents the merging of advertising and entertainment 15-14

15. Advertising Developing Advertising Programs Creating the Advertising Message Steps in creating effective advertising messages • Message strategy • Creative concept • Message execution 15-15

16. Advertising Developing Advertising Programs Creating the Advertising Message Message strategy is the general message that will be communicated to consumers • Identifies consumer benefits 15-16

17. Advertising Developing Advertising Programs Creating the Advertising Message Creative concept is the idea that will bring the message strategy to life and guide specific appeals to be used in an advertising campaign Characteristics of the appeals include: • Meaningful • Believable • Distinctive 15-17

18. Slice of life Lifestyle Fantasy Mood or image Musical Personality symbol Technical expertise Scientific evidence Testimonial evidence or endorsement Advertising Developing Advertising Programs Creating the Advertising Message Message execution captures the target market’s attention and interest and can include the following execution styles: 15-18

19. Advertising Developing Advertising Programs Creating the Advertising Message Message execution also includes: • Tone • Positive or negative • Attention-getting words • Format • Illustration • Headline • Copy 15-19

20. Advertising Developing Advertising Programs Selecting Advertising Media Major steps include: • Deciding on reach-frequency-impact • Selecting media vehicles • Deciding on media timing 15-20

21. Advertising Developing Advertising Programs Selecting Advertising Media Reach is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time Frequency is a measure of how many times the average person in the target market is exposed to the message Impact is the qualitative value of a message exposure through a given medium 15-21

22. Advertising Developing Advertising Programs Selecting Advertising Media Selecting media vehicles involves decisions that present the media effectively and efficiently to the target customer and must consider the message’s: • Impact • Effectiveness • Cost 15-22

23. Advertising Developing Advertising Programs Selecting Advertising Media Narrowcasting versus shotgun approaches Narrowcasting focuses the message on selected market segments • Lower cost • Targets more effectively • Engages customers better 15-23

24. Advertising Developing Advertising Programs Selecting Advertising Media When selecting specific media vehicles, the planner must consider cost of the media as compared to its effectiveness by evaluating: • Audience quality • Audience engagement • Editorial quality 15-24

25. Advertising Developing Advertising Programs Selecting Advertising Media When deciding on media timing, the planner must consider: • Seasonality • Pattern of the advertising • Continuity—scheduling within a given period • Pulsing—scheduling unevenly within a given period 15-25

26. Advertising Developing Advertising Programs Evaluating Advertising Effectiveness and Return on Advertising Investment Types of evaluation include measuring: • Communication effects • Sales and profit effects 15-26

27. Advertising Developing Advertising Programs Evaluating Advertising Effectiveness and Return on Advertising Investment Communication effects indicate whether the ad and media are communicating the ad message well and can be tested before or after the ad runs Sales and profit effects compare past sales and profits with past expenditures or through experiments 15-27

28. Advertising Developing Advertising Programs Other Advertising Considerations • How will the company organize its advertising function? • Who will perform which advertising tasks? • How will the company adapt its advertising strategies and programs to international markets? 15-28

29. Advertising Developing Advertising Programs Other Advertising Considerations Organizing for advertising can include: • A salesperson in smaller companies • Advertising departments and outside agencies in larger companies 15-29

30. The End