MANAGING MASS COMMUNICATION

MARKETING MANAGEMENT
Managing Mass Communications:
Advertising, Sales Promotion,
Events and Experience, and Public Relation
Prof. Dr. Basu Swastha Dharmmesta, MBA

GROUP 1 :
Panji Ardiansyah
Priska Winny
Priscilla Novelia

Universitas Gadjah Mada

2015

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THE BEST ADVERTISING

IS DONE BY
SATIESFIED CUSTOMERS
-Philip Kotler-

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MANAGING MASS COMMUNICATION

Advertising is any paid form of nonpersonal presentation and promotion of ideas,
goods, or services by an identi ed sponsor. Advetising can be a cost-eective way to disseminate messages, whether to build a brand preference or to educate people.
In developing an advertising program, they can make the ve major decisions, known
as the ve Ms

e Five Ms of Advertising

Figure 18.1

Setting the Objectives

An advertising objectives (or goal) is a spesi c communications task and achievement
level to be accomplished with a speci c audience in a speci c period of time. We can
classify advertising objectives according to whether their aim is to inform, persuade,
remind, or reinforce.
1. Informative advertising
Aims to create brand awareness and knowledge of new products or new features of existing product.
2. Persuasive advertising
Aims to create liking, preference, conviction, and purchase of a product or service. Some persuasive advertising uses comparative advertising, which makes
an explicit comparison of the attributes of two or more brands.
3. Reminder advertising
Aims to stimulate repeat purchase of products and services.
4. Reinforcement advertising
Aims to convince current purchasers that they made the right choice.
e advertising objective should emerge from a thorough analysis of the current marketing situation. If the product class is mature, the company is the market leader,
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MANAGING MASS COMMUNICATION

and brand usage is low, the objective is to stimulate more usage. If the product class is
new, the company is not the market leader, but the brand is superior to the leader, then
the objective is to convince the market of the brands superiority.

Deciding on e Advertising Budget

How does a company know its spending the right amount? Although advertising
is treated as a current expense, part of it is really an investment in building brand equity
and customer loyalty.
Factors Aecting Budget Decisions
Five speci c factors to consider when setting the advertising budget:
1. Stage in the product life cycle
New products typically merit large advertising budgets to build awareness
and to gain consumer trial. Established brand usually are supported with
lower advertising budgets, measured as a ration to sales.
2. Market share and consumer base
High market share brands usually require less advertising expenditure as a
percentage of sales to maintain share. To build share by increasing market
size requires larger expenditures.
3. Competition and clutter
In a market with a large number of competitors and high advertising
spending, a brand must advertise more heavily to be heard.

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service, quality and product quality are created and appearance

as well as the organization of customer satisfaction is what will
cause the public image of the organization. e next public will
accept the reality of the organization through identity shown. Set
of images provided by a public organization which later became
the organizations reputation.
Whether positive or negative depending on how the organization
is to show the reality to the public.
Eorts were made by the Marketing and Public Relations of PT XL Axiata
Tbk in improving corporate image are:
a. Eorts to create a new innovation must always be made to always seek
Innovation and maneuver against superior products and superior services. With the aim that the customer can use the services with a maximum of XL. With this in mind that will lead to good corporate selfimage or a good corporate image.
b. Increase promotion in order to improve the promotion of XL knowable
existence audiences, such as:
Work with the mass media media is one very eective tool to introduce a product, then from the XL makes room media every Saturday. By installing advertorial in Jawa Pos, Surya, and Sindo.
Being a media event sponsor support is also very efektive to introduce XL to the audience. For example, support events in the regions, donations to schools in these areas.
Increase corporate value in formulating the companys strategy, organization designed to develop a culture that matches the environmental conditions. An appropriate relationship between cultural
values, corporate strategy, and business environment can strengthen a companys success. By creating a positive atmosphere to the
customer, XL provide a good service and satisfy that can be remembered by the customer at the time of his visit to the XL Center. First
impression is what will be perceived by the customer or the customer in his presence when visiting the XL Center. In this way the
promotion of rapid and precise

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o XL and Komunitas Kunci
One of the major communities in Indonesia is the KUNCI that
is set Lovers Trucks Isuzu community whose members are users Trucks Isuzu in Indonesia organized by PT Isuzu Astra Motor as a single agent. To support the needs of communication
among members of the community, PT XL Axiata Tbk. (XL)
Regional Jabodetabek cooperation with PT Isuzu Astra Motor
with support for the telecommunications activities cooperation
undertaken by XL and Isuzu among others, in the form of Isuzu
complete service to its customers and the entire network of Isuzu dealers with XL hotline number. KUNCI members will also
receive various kinds of information and sales TIPS program via
SMS. KUNCI XL- this program can be obtained in 86 outlets
throughout Indonesia Isuzu.
o Cooperation XL and BNI SMS Banking Feel Comfort rough
* 141 * 2 #
is cooperation is devoted to all customers cards XL, feel the
comfort of banking transactions using the service cooperation
through XL and XL-BNI BNI SMS Banking. e advantage is
anyone who register will immediately get 5 points just by signing up and activating XL-BNI SMS Banking.

4. Advertising frequency
e number of repetititon needed to put the brands message across to consumers has an obvious impact on the advertising budget.
5. Product substitutability
Brands in less- dierentiated or commodity-like product classes (beer,
sodrinks, bank, and airlines) require heavy advertising to establised a
unique image.

Advertising Elasticity
e predominant response function for advertising is oen concave but can
be S-Shaped. When consumer response is S-Shaped, some positive amount of advertising is necessary to generate any sales impact, but sales increases eventually atten out.

Developing the Advertising Campaign

Message generation and Evaluation
A good normally focuses on one or two core selling propositions. As part of
re ning the brand positioning, the advertiser should conduct market research to determine which appeal works best with its target audience and then prepare a creative brief,
typically one or two pages.
Creative Development and Execution
e Ads impact depends not only on what it says, but oen more important,
on how it says. Every advertising medium has advantages and disadvantages.

Public Relation

For a company, the relationship with the public outside the company is an absolute necessity. Similarly, public-relations with the public,
especially, the public in general. Harmonious and good relations can be
achieved only with the understanding that sincere, not by force. Information should be given in an honest, thorough, complete, and based on actual facts. Public sometimes very critical of something actual and unusual.
Hence the nature friendly is one of the conditions that can determine the
success or failure of an external public relations eorts.
In the external public relations strategy XL includes:
XL provides excellent service through the XL center and call center.
For digital tools XL uses twitter with account XL Care
By always deliver products that are up to date, the products and
services that always follow the development of the era, with a
competitive tari.
Monitoring customer satisfaction by distributing questionnaires
to customers or to monitor customer testimonials.
Dealing with the media. e fact that looks at the name, brand,
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Television Ads
TV advertising has two particularly important strengths.
First, it can vividly demonstrate product attributes and persuasively explain
their corresponding consumer bene ts. Second, it can dramatically portray user
and usage imegenary, brand personality, and other intangibles.
Print Ads
Print media oer a stark contrast to broadcast media. Because readers consume
them at their own pace, magazine, and newspaper can provide detailed product information and eectively communicate user and usage imagenery. At the
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same time, the static nature of the visual images in print media makes dynamic
presentation or demonstrations dicult, and print media can be fairly passive.
Radio Ads
Radios main advantage is exibility, stations are very targeted, ads relatively
inexpensive to produce and place, and short closings allow for quick response.
e obvious disadvantage of radio are its lack of visual images and the relatively
passive nature of the consumer processing that results.

Legal and Social Issues

To break through clutter, some advertisers believe they have to be edgy and push
the boundaries of what consumers are used to seeing in advertising. In doing so, marketers must be sure advertising does not overstep social and legal norms or oend the
general public, ethnic groups, racial minorities, or special-interest group.

Deciding on Media and Measuring Eectiveness

Media selection is nding the most cost-eective media to deliver the desired
number and type of exposures to the target audience.
e next step is to nd out how many exposures will produce a level of audience awareness. e eect of exposures on audience awareness depends on the exposures reach,
frequency ,and impact :
Reach (R). e number of dierent persons or households exposed to a particular media schedule at least once during a speci ed time period.

Frequency (F). e number of times within the speci ed time period that an
average person or household is exposed to the message.

Impact (I). e qualitative value of an exposure through a given medium (thus

a food ad will have a higher impact in Bon Appetit than in Fortune magazine)

taken by the company through increased sales of individual XL

card that includes personal contact between the seller or his representative to the buyer .
Business Promotion
Activities through business promotion mix to give eect to an increase in sales of XL card with business promotion activities print
media and electronic media both audio and audio- visual equipment , such as newspapers , magazines , radio and television that
aim to provide information on the quality of the brand , brand
loyalty and awareness / brand associations on products produced
by PT . XL Axiata . Promotion business promotion activities were
introduced to buyers through print media in uence directly or indirectly in getting a quality product information via information
magazines / newsletters .

SponsorshiphPT. XL Axiata as a telecommunications company that

provides mobile communications services is a company that also advertise, even routine. In addition to advertising, XL using digitalized era opportunity to later expand to the digital world. For that PT XL Axiata cooperation with various business and other businesses in running and launch
telecommunication business, which are:
1. Working together with a variety of business (business) small
and
medium-sized
2. Working together with a variety of campus events in the activities
undertaken by the community (community) college.
3. Working together with various other activities that support
the existence of the PT. XL Axiata itself.

e relationship between reach,frequency, and impact is captured in the following concepts:

Total number of exposures (E). is is the reach time the average frequency;
that is, E=RxF, also called the gross rating points (GRP).

Weighted number of exposures (WE). is is the reach times average frequency

times average impact, that is WE=RxFxI

Reach is most important when launching new products, anker brands, extension
of well known brands, or infrequently purchased brands; or when going aer an undened target market. Frequency is most important where there are strong competitors, a
complex story to tell, high consumer resistance, or a frequent purchase cycle.

Choosing Among Major Media Types

e media planner must know the capacity of the major advertising media
types to deliver reach, frequency,and impact. Media planners make their choices by considering factors such as target audience media habbits, product characteristics, message
requirements, and cost.
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Here are some examples of cooperation between PT. XL Axiata with business circles of business:
o

XL Musikkamu is a form of cooperation between PT.XL Axiata

and Musica Studio in advancing the music industry in the mobile world. Cooperation XL-Noah is actually repeating a similar
bond while Ariel is still a vocalist Peter. In addition to being
commercials, XL also cooperate in sponsorship concert series
Noah to ve cities, namely Surabaya, Cimahi, Banjarmasin,
Medan. If analyzed, although de ned as a brand ambassador XL
Free is Noah.
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Furthermore, XL uses Noah as brand ambassador campaign
launched two more, which wasBebas Karoke Bareng Noah and Konser
Bebas Xpresi with Noah. Bebas Karoeke Bareng Noah was a karaoke
competition where the participants can collect their best karaoke video
microsite and mobile app, and the opportunity to win a ticket to a live
concert Noah. Konser Bebas Xpresi with Noah was a series of roadshow
events in ve cities were packed in augmented reality, so as if the public
could be a concert with Noah. e campaign activities even got Muri Records with the award for Concert Augmented Reality With Most participants.
On January 31, 2013, Ask e Young achieve lot of targets to meet
the Key Performance Indicator (KPI), which is about 131 thousand visitors to the site, 696 thousand page views with an average of 10 pages per
visit, 3.71% bounce rate, time of 6 minutes 11 seconds for an average time
of visit, and 54, 619 buzzes. In media strategy, XL earn 8.74% in Average
Goal Conversion Rate. e number of pageviews on the website XL Android (xl.co.id/android) increased sharply within a period of two months,
which is from 69% to 446%. en in January 2013, has twitter account @
asktheyoung ocially become veri ed accounts.
At the end of 2012, XL has had keywords in the search engine
Googles Android, and put XL on two top positions on Google search pages. XL Ask e Young then spread and many blogs reviewed by Indonesia,
one of them by indonesiadigital.com.
At the end of the campaign period, Bebas Karoeke Bareng Noah
get more than 2000 records, more than 20,000 participants, and more than
11,000 tweets in a period of 3 weeks. Webisode 6 Months Later earned
more than 200 thousand visitors on Youtube within two weeks, get 92
thousand likes, 4 thousand comments, and 1057 shares in Facebook. Finally, XL managed to make 360o Integrated Campaign which make them
more consumer bound XL brand.

Alternate Advertising Options

In recent years, reduced eectiveness of traditional mass media has lead advertisers to increase their emphasis on alternate advertising media.
Place Advertising is a broad category including many creative and unexpected forms to
grab comsumers attention. e rationale is that marketers
are better o reaching people where they work, play, and of course shop.
Populer options include :
Billboards. Billboards have been transformed and now use colorful, digitally
produced graphics, backlighting, sounds, movement, and unusual even 3Dimages.

Public Spaces. Advertisers have been increasingly placing ads in unconventional places such as on movie screens, on airplanes, and in tness clubs, as well as
in classrooms, sports arenas, oce and hotel elevators, and other public places.

Product Placement sometimes placements are the result of a larger network advertising deal, but other times they are work of small product-placement shops
that maintain ties with prop masters, set designers, and production executives.
Some rms get product placement at no cost by supplying their product to the
movie company.

Sales Promotion

Whereas advertising oers a reason to buy, sales promotion oers

an incentive. XL also use sales promotion as a ingredient in marketing
campaign.
Forms of sales promotion conducted by XL :
Consumer Promotion
Trade Promotion
Trade promotion which XL conducted by XL is free good.
Sales Force Promotion
Promotion sales force is part of the promotional activities underMarke ng Management - CHAPTER 18 I halaman 24

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Evaluating Alternate Media
e main advantage of nontraditional media is that they can oen reach a very
precise and captive audience in a cost-eective manners. e challenge for nontraditional media is demonstrating its reach and eectiveness through credible, independent research.

Selecting Speci c Media Vehicles

e media planner must search for the most cost-eective vehicles within each
chosen media type. Marketers need to apply several adjustments to the cost-perthousand measure.
First, they should adjust for audience quality.
Second, adjust the exposure value for the audience-attention probability.
ird, adjust for the mediums aditorial quality (prestige and believability).
Fourth, consider ad placement policies and extra services (such as regional or
occupational aditions and lead-time requirements for magazines).

Deciding on Media Timing and Allocation

In choosing media, the advertiser has both a macroscheduling and a microscheduling
decision.

e macroscheduling decision relates to seasons and the business cycle.

e microscheduling decision calls for allocating advertising expenditures

within a short period to obtain maximum impact.

e chosen pattern should meet the communication objectives set in relationship to the
nature of the product,target customers, distribution channels, and other marketing factors.
is timing pattern should consider three factors.

Buyer turnover expresses the rate at which new buyers enter the maket; the higher
this rate,the more continuous the advertising should be.
Purchase freqruency is the number of times the average buyer buys the product
during the period; the higher the purchase frequency, the more continuous the advertising should be.
e forgetting rate is the rate at which the buyer forgets the brand; the higher the
forgeting rate, the more continouus the advertising should be.

In launching a new product, the advertiser must choose among continuity, concentration, ghting, and pulsing.

Continuity means exposures appear evenly throughout a given periode.

Concentration calls for spending all the advertising dollars in a single period.
Flighting calls for advertising during a period, followed by a period with no advertising, followed by a second period of advertising activity.
Pulsing is continuous advertising at low-weight levels, reinforced periodically by
waves of heavier activity.

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Alternate Advertising Options

XL using billboards as one of the advertising media. Many billboard are placed in road that oen be passed by vehicles and pedistrians.
For public space, we found XL billboard in airport. XL poster become
a stage background of Vierratale show performance that was a kind of
product placement.
XL not only using convensional media but also do digital campaign to sell their product. ere are two product oered by digital campaign, namely XL Rumahnya Android and XL Bebas. e rst campaign
issued for XL Rumahnya Android is Ask e Young, which is an interactive platform using the website and twitter, which provides a place for
the public to ask a lot of questions about what the younger generation. In
short, the campaign becomes crowded discussed in a lot of social media,
one of which Twitter. Ask e Young at last successful in involving users
of Android.
XL digital marketing team subsequently made a series of other
campaign for XL Bebas, products for the Internet provider other than Android. Starting with the release of the teaser campaign called Bebas Xpresi. Bebas Xpresi is an Instagram competition that promotes free theme
itself. is campaign was followed by the release of Web Webisode series
titled 6 Months Later. Web series tells about a boy character named Billy,
who was attacked by zombies. But apparently, he enabled Internet services
since six months earlier saved his life.
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Developing the Advertising Campaign

Message generation and Evaluation
XL logo was changed from its inception until today

Creative Development and Execution

Television Ads
Xl using television as a medium of promotion. is is the most effective way to inform about the products xl for all circles.
Print Ads
Xl using print media as media promotion. It is seen xl ads in newspapers and magazines.
Radio Ads
XL uses radio as a media campaign. Xl cooperation with Prambors
radio to introduce its product to the public. Prambors radio is a
radio used by young people, and this as being among the targets of
XL.
Choosing Among Major Media Types
Media planners make their choices about advertising media
by considering factors such as target audience media habits, product
characteristics,message requirements, and cost. We choose XL Bebas
one of PT.XL Axiata product-as an example to elaborate that factors.
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Evaluating Advertising Eectiveness

Most advertisers try to measure the communication eect of an ad that is, its
potential impact on awareness, knowledge, or preference. ey would also like to measure the ads sales eect.
Communication eect reasearch, called copy testing, seeks to determine whether an ad
is communicating eectively. Marketers should perform this test both before an ad is put
into media and aer it is printed or broadcast.
Pretest crictics maintain that agencies can design ads that test well but may not
necessarily perform well in the marketplace. Proponents maintain that useful diagnostic
information can emerge and that pretest should not be used as the sole decision criterion
anyway. Many advertisers use posttest to asses the overall impact of a completed campaign.
Sales eect reasearch, companies are generally interested in nding out whether they are overspending or underspending on advertising. One way to answer this question is to work with the formulation shown bellow

A companys share of advertising expenditures produces a share of voice (proportion of

company advertising of that product to all advertising of that product) that earns a share
of consumers minds and hearts and, ultimately, a share of market.

Sales Promotion
Sales promotion, a key ingredient in marketing campaigns,
consists of 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.
Whereas advertising oers
a reason to buy, sales promotion offers an incentive. Sales promotion
includes tools for consumer proMarke ng Management - CHAPTER 18 I halaman 7

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motion (samples, coupons, cash refund oers, prices o, premiums, prizes, patronage
rewards, free trials, warranties, tie-in promotions, cross-promotions, point-ofpurchas
displays, and demonstrations), trade promotion (prices o, advertising and display allowances and free goods), and business and sales force promotion(trade shows and conventions, contests for sales reps, and specialty advertising).
Objectives
Sales promotion tools vary in their speci c objectives. A free sample stimulates consumer trial, whereas a free management-advisory service aims at cementing a long-term relationship with a retailer.
Advertising versus Promotion
A decade ago, the advertising-to-sales-promotion ratio was about 60:40. Today,
in many consumer-packaged-goods companies, sales promotion accounts for 75%
of the combined budget (roughly 50% is trade promotion and 25% is consumer
promotion). Sales promotion expenditures increased as a percentage of budget expenditure annually for almost two decades, although its growth has slowed down in
recent years.
Major Decisions
In using sales promotion, a company must establish its objectives, select the
tools, develop the program, pretest the program, implement and control it, and
evaluate the results.

Reminder advertising
Xl ads using the dominance of blue color so that the buyer can remind
people to
buy Xl.

v Establishing Objectives
Sales promotion objectives derive from broader communication objectives, which
derive from more basic marketing objectives for the product. For consumers, objectives
include encouraging purchase of larger-sized units, building trial among nonusers, and
attracting switchers away from competitors brands. Ideally, promotions with consumers
would have short-run sales impact as well as long-run brand equity eects. For retailers,
objectives include persuading retailers to carry new items and higher levels of inventory.
encouraging o-season buying, encouraging stocking of related items, osetting competitive promotions, building brand loyalty, and gaining entry into new retail outlets.
For the sales force, objectives include encouraging support of a new product or model,
encouraging more prospecting, and stimulating o-season sales

Reinforcement advertising
is ad shows an example of the pleasure and satisfaction of people
using xl.

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Selecting Consumer Promotion Tools

e advertising objectives

e promotion planner should take into account the type of market, sales promotion objectives, competitive conditions, and each tools cost-eectiveness. e main
consumer promotion tools are summarized in Table 18.3. Manufacturer promotions are,
for instance in the auto industry, rebates, gis to motivate test-drives and purchases, and
high-value trade-in credit. Retailer promotions include price cuts, feature advertising,
retailer coupons, and retailer contests or premiums.

Informative advertising
At this advertisement visible in
the form of product delivery XL
and knowledge of new product
like Paket Serbu (Gratis 1000
SMS ke Semua Operator Seharian).

a.

Major Consumer Promotion Tools

Samples : Oer of afree amount of aproduct or service delivered door-to-door,

sent in the mail, picked up in a store, attached to another product, or featured
in an advertising oer
Coupons: Certi cates entitling the bearer to astated saving on the purcllase of
aspeci c product: mailed, enclosed in other products or attached to them, or
inserted in magazine and newspaper ads.
Cash Refund Oers (rebates): Provide aprice reduction aer purchase rather
than at the retail shop: Consumer sends aspeci ed proof of purchase to the
manufacturer who refunds part of the purchase price by mail.
Price Packs (cents-o deals): Oers to consumers of savings o the regular
price of aproduct, agged on the label or package. Areduced-price pack is asingle package sold at a reduced price (such as two for the price of one). A
banded pack is two related products banded together (such as a toothbrush and
toothpaste).

Persuasive advertising
At this ads more emphasis on
words that convince buyers
like Engga Usah Mikir pake
Xl pasti termurah.

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Premiums (gis) : Merchandise oer edata relatively low costor free as anincentive to purchase a particular product. A with-pack premium accompanies
the product inside or on the package. Afree in-the-mail premium ismailed to
consumers who send in a proof of purchase,such as a box top or UP Ccode.
Aself-liquidating premium is sold below its normal retail price to consumers
who request it.
Frequency
Programs:
Programs providing rewards related to the consumers frequency and
intensity in purchasing
the companys products
or services.
Prizes (contests, sweepstakes, games): Prizes are
oers of the chance to win
cash, trips, or merchandise as a result of purchasing something. Acontest calls for consumers to
submit an entry to be examined by a panel of judges who will select the best entries. Asweepstakes asks consumers to submit their names in a drawing. Agame
presents consumers with something every time they buy-bingo numbers, missing letterswhich might help them win a prize.
Patronage Awards: Values in cash or in other forms that are proportional to
patronage of acertain vendor or group of vendors.
Free Trials: Inviting prospective purchasers to try the product without cost in
the hope that they will buy.
Product Warranties: Explicit or implicit promises by sellers that the product
will perform as speci ed or that the seller will x it or refund the customers
money during aspeci ed period.

Tie-in Promotions: Two or more

brands or companies team up on coupons, refunds, and contests to increase
pulling power.

Cross-Promotions: Using one

brand to advertise another noncompeting brand.

Point-of-Purchase (P-O-P) Displays and Demonstrations: P-O-P displays and demonstrations take place at
the point of purchase or sale.

e Five Ms of XL Advertising

Sales promotion seems most eective combined with advertising. In one study, a
price promotion alone produced only a 15% increase in sales volume. When combined
with feature advertising, sales volume increased 19%; when combined with feature advertising and a point-of-purchase display, sales volume increased 24%.
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CASE STUDY

v SELECTING TRADE PROMOTION TOOLS

Manufacturersusea number of trade promotion tools (see Table 18.6).76 Manufacturers
award money to the trade (1) to persuade the retailer or wholesaler to carry the brand;
(2) to persuade the retailer or wholesaler to carry more units than the normal amount;
(3) to induce retailers to promote the brand by featuring, display, and price reductions;
and (4) to stimulate retailers and their sales clerks to push the product.

Company Pro le

Started operating commercially since October 8, 1996, XL has become the best in Asia, and is owned majorly by Axiata Group Berhad with
66,55% shares and the rest is owned by the public with 33,45% shares. XL
Axiata provides cellular service with a wide range of network with high
quality throughout Indonesia , and is the only operator that has a wide
range of ber optic network.
Transformation
XL Axiata has transformed since started operating commercially more
than a decade ago.
Alliance
XL Axiata has joined alliances to bring innovations and to ensure the
adaption to the changes in the industry.
Milestones
e history of XL Axiata until becoming the leading cellular operator in
Indonesia.
Value
XL Axiata is committed to its vision to become number one cellular operator in Indonesia.
Strategy
XL Axiata has a trusted strategy to always provides the best service.
Awards
XL Axiata is best services have been awarded with various kind of awards.

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Major Trade Promotion Tools

Price-O (o-invoice or o-list): Astraight discount o the list price on each
case purchased during astated time period.
Allowance: An amount oered in return for the retailers agreeing to feature the
manufacturers products in some way.
An advertising allowance compensates retailers for advertising the manufacturers product.
A display allowance compensates them for carrying a special product display.
Free Goods: Oers of extra cases of merchandise to intermediaries who buy a
certain quantity or who feature a certain avor or size.

v SELECTING BUSINESS
AND SALESFORCE PROMOTION TOOLS
Companies spend billions of
dollars on business and sales-force
promotion to gather business leads,
impress and reward customers, and
motivate the sales force to greater effort. ey typically develop budgets
for tools that remain fairly constant
from year to year. For many new businesses that want to make a splash to
a targeted audience, especially in the
B2B world, trade shows are an important tool, but the cost per contact is
the highest of all communication options. e following example shows
how one newcomer in the private jet
industry makes trade shows pay.
Major Business and Sales-Force Promotion Tools
Trade Shows and Conventions: Industry associations organize annual trade
shows and conventions, Business marketers may spend as much as 35% of their
annual promotion budget on trade shows, Over 5,600 trade shows take place
every year, drawing approximately 80 million attendees. Trade show attendance
can range from afew thousand people to over 70,000 for large shows held by
the restaurant or hotel-motel industries, Participating vendors expect several
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bene ts, including generating new sales leads, maintaining customer contacts,
introducing new products, meeting new customers, selling more to present
customers, and educating customers with publications, videos, and other audiovisual materials.
Sales Contests: Asales contest aims at inducing the sales force or dealers to
increase their sales results over astated period, with prizes (money, trips, gis,
or points) going to those who succeed.
Specialty Advertising: Specialty advertising consists of useful, low-cost items
bearing the companys name and address, and sometimes an advertising message that salespeople give to prospects and customers, Common items are ballpoint pens, calendars, key chains, ashlights, tote bags, and memo pads.

v PRETESTING, IMPLEMENTING, CONTROlING, AND EVALUATING

THE PROGRAM
Although most sales pro- motion programs are designed on the basis of
experience, pretests can determine
whether the tools are appropriate, the incentive size optimal, and
the presentation method ecient. Consumers
can be asked to rate or rank dierent
possible deals, or trial tests can be
run in limited geographic areas.
Marketing managers must
prepare implementation and control plans that cover lead time
and sell-in time for each individual promotion. Lead time is
the time necessary to prepare
the program prior to launching
it.82 Sell-in time begins with the
promotional launch and ends when approximately 95% of the deal merchandise is in the hands
of consumers.
Events Objectives
Marketers report a number of reasons to sponsor events:
1. To identify with a particular target marketor lifestyle----Customers can be
targeted geographically, demographically, psychographically, or behaviorally according to events. Old Spice sponsors college sports and motor
sports-including driverTony Stewarts entries in the Nextel Cup and Busch
Series-to highlight product relevancy and sample among its target audience of 16-to 24-year-old males.oo
2. To increase awareness ofcompany or product name----Sponsorship oen offers sustained exposure to a brand, a necessary condition to build brand
recognition and enhance brand recall.
Frito-Lay used balloon festivals and street parades to sample its Flat Earth
baked fruit and vegetable crisps, build awareness, and drive retail trac.o9
3. To create or reinforce perceptions oey brand image associations-Events
themselves have associations that help to create or reinforce brand associaMarke ng Management - CHAPTER 18 I halaman 12

Major Tools In Marketing PR

Publications: Companies rely extensively on published materials to
reach and in uence their target markets, ese include annual reports,
brochures, articles, company newsletters and magazines, and audiovisual
materials,
Events: Companies can draw attention to new products or other company
activities by arranging special events such as news conferences, seminars,
outings, trade shows, exhibits, contests and competitions, and anniversaries that will reach the target publics,
Sponsorships: Companies can promote their brands and corporate name
by sponsoring sports and cultural events and highly regarded causes,
News: One of the major tasks of PR professionals is to nd or create favorable news about the company, its products, and its people and to get the
media to accept press releases and attend press conferences,
Speeches: Increasingly, company executives must eld questions from the
media or give talks at trade associations or sales meetings, and these appearances can build the companys image,
Public Service Activities: Companies can build goodwill by contributing
money and time to good causes,
Identity Media: Companies need a visual identity that the public immediately recognizes. e visual identity is carried by company logos, stationery, brochures, signs, business forms, business cards, buildings, uniforms, and dress codes.

v IMPLEMENTING THE PLAN AND EVALUATING RESULTS MPRs contribution to the bottom line is dicult to measure, because it is used along
with other promotional tools. e easiest measure of MPR eectiveness is the
number of exposures carried by the media.

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MANAGING MASS COMMUNICATION

Days asco in 2007 when 2 inches of ice led to 1,000 cancelled ights,
massive delays, and passengers stuck on planes for up to nine hours.
Building the corporate image in away that re ects favorably on its
products. Bill Gatess speeches and books have helped to create an innovative image for Microso Corporation.

4.

5.

6.

7.

Major Decisions in Marketing PR

In considering when and how to use MPR, management must establish the
marketing objectives, choose the PR messages and vehicles, implement the plan
carefully, and evaluate the results.
v ESTABLISHI G OBJECTIVES MPR can build awareness by placing
stories in the media to bring attention to a product, service, person,
organization, or idea. It can build credibility by communicating the
message in an editorial context. It can help boost sales force and dealer
enthusiasm with stories about a new product before it is launched. It
can hold down promotion cost because MPR costs less than directmail and media advertising.
v CHOOSING MESSAGES AND VEHICLES Suppose a relatively unknown college wants more visibility. e MPR practitioner will search
for stories. Do any faculty members have unusual backgrounds, or are
any working on unusual projects? Are any new and unusual courses
being taught? Are any interesting events taking place on campus? If
there are no interesting stories, the MPR practitioner should propose
newsworthy events the college could sponsor. Here the challenge is to
create news.
PR ideas include hosting major academic conventions, inviting expert
or celebrity speakers, and developing news conferences. Each event is
an opportunity to develop a multitude of stories directed at dierent
audiences.

8.

Marke ng Management - CHAPTER 18 I halaman 16

9.

tions.90 To toughen its image and appeal to Americas heartland, Toyota

Tundra elected to sponsor BAS.s. shing tournaments and a Brooks &
Dunn country music tour.
To enhance corporate image----Sponsorship can improve perceptions that
the company is likable and prestigious. Although Visa views its long-standing Olympic sponsorship as a means of enhancing international brand
awareness and increasing usage and volume, it also engenders patriotic
91
goodwill and taps into the emotional Olympic spirit.
To create experiences and evoke feelings-e feelings engendered by an exciting or rewarding event may indirectly link to the brand. Online activation accounts for a large portion ofLG Electronics MobileComm USAs
sponsorship leveraging eorts. e company uses sites such as MySpace
and YouTube to extend its personality online and created its own proprietary Web site, LifeWithLG.com, as a central place for information about
events and celebrity endorsers and related content for downloading.92
To express commitment to the community or on social issues-Cause-related
marketing sponsors nonpro t organizations and charities. Firms such as
Timberland, Stoney eld Farms, Home Depot, Starbucks, American Express, and Toms of Maine have made causerelated marketing an important
cornerstone of their marketing programs.
To entertain key clients or reward key employees-Many events include lavish hospitality tents and other special services or activities only for sponsors and their guests. ese perks engender goodwill and establish valuable
business contacts.
From an employee perspective, events can also build participation and morale or be used as an incentive. BB&T Corp., a major banking and nancial
services player in the South and Southeast United States, uses its NASCAR
Busch Series sponsorship to entertain business customers and its minor
league baseball sponsorship to generate excitement among employees.
To permit merchandising or promotional opportunities-Many marketers tie
in contests or sweepstakes, in-store merchandising, direct response, or other marketing activities with an event. Ford, Coca-Cola, and CingularWireless all used their sponsorship of the hit TV show American Idol in this way.

Major Sponsorship Decisions

Successful sponsorships require choosing the appropriate events; designing the
optimal sponsorship program; and measuring the eects of sponsorship.
v CHOOSING EVENTS Because of the number of opportunities and
their huge cost, many marketers are becoming more selective about
choosing sponsorship events
v DESIGNING SPONSORSHIP PROGRAMS Many marketers believe its the marketing program accompanying an event sponsorship
that ultimately determines its success. At leasttwo to three times the
amount of the sponsorship expenditure should be spent on related
marketing activities.
v Event creation is a particularly important skill in publicizing fundraising drives for nonpro t organizations. Fund-raisers have devel-

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MANAGING MASS COMMUNICATION

oped a large repertoire of special events, including anniversary celebrations, art exhibits, auctions, bene t evenings, bingo games, book
sales, cake sales, contests, dances, dinners, fairs, fashion shows, parties
in unusual places, phonathons, rummage sales, tours, and walkathons.
v No sooner is one type of event created, such as a walkathon, than
competitors spawn new versions, such as readathons, bikeathons, and
jogathons
v MEASURING SPONSORSHlP ACTIVITIES As with public relations, measurement of events is dicult. e supply-side measurement
method focuses on potential exposure to the brand by assessing the
extent of media coverage; and the demand-side method focuses on reported exposure from consumers.
v Creating Experiences
A large part of local, grassroots marketing is experiential marketing,
which not only communicates features and bene ts but also connects
a product or service with unique and interesting experiences. e
idea is not to sell something, but to demonstrate how a brand can enrich a customers life.102 Marketing Insight: Experiential Marketing
describes the concept of Customer Experience Management. Consultants and authors Pine and Gilmore, pioneers on the topic, argue that
we are on the threshold of the Experience Economy, a new economic
era in which all businesses must orchestrate memorable events for
their customers.103 ey assert:
If you charge for stu, then you are in the commodity business.

If you charge for tangible things, then you are in the goods
business.
If you charge for the activities you perform, then you are in the
service business.
If you charge for the time customers spend with you, then and
only then are you in theexperience business.

Public Relations
Not only must the company relate constructively to customers, suppliers, and
dealers, it must also relate toa large number of interested publics.
A public is any group that has an actual or potential interest in or impact on a companys ability to achieve its objectives. Public relations (PR) includes a variety of programs
to promote or protect a companys image or individual products.
e wise company takes concrete steps to manage successful relations with its
key publics. Most companies have a public relations department that monitors the attitudes of the organizations publics and distributes information and communications
to build good will. e best PR departments counsel top management to adopt positive
programs and eliminate questionable practices so negative publicity doesnt arise in the rst
place.
ey perform the following ve functions:
1. Press relations-Presenting news and information about the organization in
the mosl positive light
Marke ng Management - CHAPTER 18 I halaman 14

2.
3.
4.
5.

Product publicity-Sponsoring eorts to publicize speci c products

Corporate communications-Promoting understanding of the organization
through internal and external communications
Lobbying-Dealing with legislators and government ocials to promote or
defeat legislation and regulation
Counseling-Advising management about public issues, and company positions and image during good times and bad.

Marketing Public Relations

or product promotion and image making. MPR, like nancial PR and Many
companies are turning to marketing public relations (MPR) to support corporate
community PR, serves a special constituency, the marketing department. 107
e old name for MPR was publicity, the task of securing editorial space-as opposed to paid space-in print and broadcast media to promote or hype a product,
service, idea, place, person, or organization. MPR goes beyond simple publicity and
plays an important role in the following tasks:
Launching new products. e amazing commercial success of toys such
as Tickle Me Elmo, Furby, and Leap Frog owes a great deal to strong publicity.
Repositioning a mature product. New York City had extremely bad press
in the 1970s until the J Love New York campaign.
Building interest in a product category. Companies and trade associations have used MPR to rebuild interest in declining commodities such as
eggs, milk, beef, and potatoes and to expand consumption of such products as tea, pork, and orange juice
In uencing speci c target groups. McDonalds sponsors special neighborhood events in Latino and African American communities to build
goodwill.
Defending products that have encountered public problems. PR professionals must be adept at managing crises, such as the letBlue Valentine
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