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Chapter 20

Chapter 20. Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations. Learning Objectives. What steps are required in developing an advertising program? How should marketers choose advertising media and measure their effectiveness?

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Chapter 20

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  1. Chapter 20 Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

  2. Learning Objectives • What steps are required in developing an advertising program? • How should marketers choose advertising media and measure their effectiveness? • 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?

  3. Developing and Managingan Advertising Program

  4. Developing and Managingan Advertising Program • Setting the advertising objectives • Deciding on the advertising budget • Developing the advertising campaign • Choosing media • Evaluating advertising effectiveness

  5. Setting theAdvertising Objectives Informative Persuasive Reminder Reinforcement

  6. Deciding on the Advertising Budget • Stage in the product life cycle • Market share and consumer base • Competition and clutter • Advertising frequency • Product substitutability

  7. Deciding on the Advertising Budget • Advertising elasticity • Concave or S-shaped

  8. Developing the Advertising Campaign • Message generation and evaluation • Positioning of an ad—what it attempts to convey about the brand • Creative brief • Open sourcing/crowdsourcing

  9. Developing the Advertising Campaign • Creative development and execution • Advertising medium (television, print, and radio advertising media)

  10. Developing the Advertising Campaign • Television ads • Vividly demonstrates product attributes • Persuasively explains consumer benefits • Portrays usage imagery/brand • personality • Product/brand can be overlooked • Creates clutter • Easy to ignore or forget ads

  11. Developing the Advertising Campaign • Print ads • Provide detailed product information • Flexibility in design and placement • Can be fairly passive • Newspapers popular for local ads • In steady decline • Poor reproduction quality • Short shelf life

  12. Developing the Advertising Campaign • Print ad evaluation criteria • Is the message clear at a glance? • Is the benefit in the headline? • Does the illustration support the headline? • Does the first line of the copy support or explain the headline and illustration? • Is the ad easy to read and follow? • Is the product easily identified? • Is the brand or sponsor clearly identified?

  13. Developing the Advertising Campaign • Radio ads • Occurs in the car and out of home • Main advantage is flexibility • Ads are relatively inexpensive • Can be schedule to air quickly • Effective when run in morning • Can be extremely creative • Can tap into the listener’s imagination

  14. Developing the Advertising Campaign • Legal and social issues • Advertisers must not make false claims • Must not use false demonstrations • Must not create ads with the capacity to deceive • Must avoid bait-and-switch advertising

  15. Choosing Media • Reach, frequency, and impact

  16. Choosing Media • Total number of exposures (E) • Gross Rating Points (GRP): E = R X F • Weighted number of exposures (WE) • WE = R X F X I

  17. Choosing Media • Choosing among major media types

  18. Choosing Media • Place advertising options Billboards Public spaces Product placement Point of Purchase

  19. Choosing Media • Evaluating alternate media • Need to demonstrate reach/effectiveness • Selecting specific media vehicles • Media planner must choose most cost-effective vehicles and must estimate audience size, composition, media cost, and cost per thousand persons reached

  20. Choosing Media • Selecting media timing and allocation

  21. Choosing Media • Selecting media timing and allocation Continuity Concentrated Flighting Pulsing

  22. Evaluating Advertising Effectiveness • Communication-effect research • In-home tests, trailer tests, theater tests, on-air tests • Sales-effect research • Historical approach • Experimental data

  23. 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

  24. Sales Promotion • Establishing objectives • For consumers, retailers, and the sale force

  25. Sales Promotion • Selecting consumer promotion tools

  26. Sales Promotion • Selecting trade promotion tools • Forward buying and diverting retailers

  27. Sales Promotion • Selecting business and sales force promotion tools

  28. Sales Promotion • Developing the program Incentive size Conditions Duration Total sales promotion budget Timing Distribution vehicle

  29. Sales Promotion • Implementing and evaluating the program • Lead time • Sell-in time • Sales/scanner data • Consumer surveys • Experiments

  30. Events and Experiences • Events objectives • To identify with a target market or lifestyle • To increase salience of company/product name • To create/reinforce key brand image associations • To enhance corporate image • To create experiences and evoke feelings • To express commitment to the community or on social issues • To entertain key clients or reward employees • To permit merchandising/promotional opportunities

  31. Events and Experiences • Major sponsorship decisions • Choosing events • Designing sponsorship programs • Measuring sponsorship activities

  32. MeasuringSponsorship Programs • Measure outcomes, not outputs • Define/benchmark objectives on front end • Measure return for each objective • Measure behavior • Apply assumptions/ratios used by other departments • Measure results of emotional connections • Identify group norms • Include cost savings in ROI calculations • Slice the data • Capture normative data

  33. Events and Experiences • Creating experiences • Experiential marketing

  34. Public Relations • PR department functions • Press relations • Product publicity • Corporate communications • Lobbying • Counseling

  35. Public Relations • Marketing public relations (MPR) tasks Launching new products Repositioning mature products Building interest in product Building corporate image Defending problem products Influencing target groups

  36. Public Relations • Major decisions in marketing PR • Establishing objectives • Choosing messages and vehicles • Implementing the plan • Evaluating results

  37. Public Relations

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