18

Managing Mass
Communications

Marketing Management, 15th ed

 What is Advertising?

Advertising is any paid form of

nonpersonal presentation and
promotion of ideas, goods, or services
by an identified sponsor.

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 Figure 18.1 The Five M’s of Advertising

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 Advertising Objectives
• Informative advertising: aims to
create brand awareness and
knowledge of new products or new
features of products.
• Persuasive advertising: aims to
create liking, preference, conviction,
and purchase of a product or service.
• Reminder advertising: aims to
stimulate repeat purchase of products
and services.
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 Advertising Objectives

• Reinforcement advertising: aims to

convince current purchasers that they
made the right chance.

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 Factors to Consider in Setting an
Advertising Budget
• Stage in the product life cycle: new
products typically merit large
advertising budgets to build awareness
and to gain consumer trial.
• Market share and consumer base:
high market share brands usually
require less advertising expenditure as
a percentage of sales to maintain
share.
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 Factors to Consider in Setting an
Advertising Budget
• Competition clutter: in a market with a
large number of competitors and high
advertising spending, a brand must
advertise more heavily to be heard.
• Product substitutability: brands in
less-differentiated or commodity like
product classes require heavy
advertising to establish unique image.

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 Developing the
Advertising Campaign
• In developing an ad campaign marketers
employ both art and science to develop the
message strategy or positioning of an ad,
what the ad attempts to convey about the
brand and its creative strategy. And how the
ad expresses the brand claim.

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 Developing the
Advertising Campaign
• Message generation and evaluation:
advertiser’s are always seeking the next big
idea that connects with consumers.
• Fresh insights are important fr avoiding using the
same appeals and position as others.
• A good ad normally focuses on one or two core
selling propositions.
• The advertiser should conduct market research to
determine which appeal works best with its target
audience.

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 Creative development and
execution:
Television
Advantages Disadvantages
• Reaches broad • Brief
spectrum of consumers • Clutter
• Low cost per exposure • High cost of production
• Ability to demonstrate • High cost of placement
product use • Lack of attention by
• Ability to portray image viewers
and brand personality

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 Print Ads

Advantages Disadvantages
• Detailed product • Passive medium
information • Clutter
• Ability to • Unable to
communicate user demonstrate
imagery product use
• Flexibility
• Ability to segment

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 Radio Ads

• Radio’s main advantage is flexibility

• Stations are targeted
• Short closings allow for quick response
• It is cheap to create and place the ad.
• Effective medium in the morning
• Can allow companies achieve a balance
between broad and localized market
coverage.

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 Legal and Social Issues

• Advertisers and their agencies must

ensure that advertising does not violate
any law.
• Public policy makers have developed a
substantial body of laws and
regulations to govern advertising.

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 Deciding on Media and Measuring
Effectiveness
• Depending on Reach, Frequency,
and Impact
• Media selection: finding the most cost
effective media to deliver the desired
number and type of exposures to the
target audience.
• Desired number of exposures: a
specified advertising objective and
response from the target audience.

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 Deciding on Media and Measuring
Effectiveness:
Reach, Frequency, and Impact
• Reach: number of different persons or
households exposed to a particular media
schedule atleast once during specified time
period.
• Frequency: the number of times within the
specified time period that an average person
or household is exposed to the message.
• Impact: the qualitative value of an exposure
through a give medium.

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 Deciding on Media and Measuring
Effectiveness:
Reach, Frequency, and Impact
• Total number of exposures: this is the
reach times the average frequency, that
is E=RxF. Also called the gross rating
points.
• Weighted number of exposures: this
is the reach times average frequency
times average impact, WE= RxFxI

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 Figure 18.2 Relationship Among Trial,
Awareness, and the Exposure
Function

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 Reach x Frequency = GRPs

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 Choosing Among Major Media Types

• Target audience
and media habits
• Product
characteristics
• Message
characteristics
• Cost

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 Major Media Types

• Newspapers • Outdoor
• Television • Yellow Pages
• Direct mail • Newsletters
• Radio • Brochures
• Magazines • Telephone
• Internet

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 Place Advertising
• Or out-of-home advertisings, is a broad category
including many creative and unexpected forms to
grab consumers’ attention.
• Rationale is that consumers are easily reached
where they work, play, and shop.
• Public spaces: ads are increasingly being placed
in places such as classrooms, fitness clubs,
airplanes, movie screens etc.
• Street furniture: bus shelters and other public areas
area another fast growing option.
 Place Advertising

• Billboards: displayed inside buses, at

airports etc. digital billboards are
gaining currency because of the
improvements in the infrastructure of
cities the categories that use outdoor
media are telecom, entertainment and
media etc.
• They are limited by the fact that there are
no adequate measurement matrices to
assess their impact.
 Place Advertising

• Product placement: products and

brands are placed in different movie
scenes to get viewer attention and
communicate brand messages in
context of the story.
• Point-of-purchase: the appeal of point
of purchase advertising lies in the fact
that in many product ctegories
consumers make the bulk of their final
brand decisions in the store.
 Evaluating Alternate Media

• Ads now can appear virtually anywhere

consumers have a few spare minutes
or even seconds to notice them.
• Main advantage of non traditional
media is that they can often reach a
very precise and captive audience in a
cost-effective manner.
• The message must simple and direct.

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 Selecting Specific Media Vehicles

• Planer must rely on measurement services

that estimate audience size, composition,
and media cost.
• Audience quality: for a baby lotion ad, a
magazine read by 1 million mothers has a
significant exposure value, if read by 1 million
teenagers it has no exposure value.
• Audience attention probability: readers of
SHE may give more attention to ads than
readers of Jung newspaper.
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 Selecting Specific Media Vehicles

• Editorial quality must have prestige

and believability.
• People are more likely to believe a TV or
radio ad and to become more positively
disposed toward the brand when the ad is
placed within a program they like.

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 Measures of Audience Size

• Circulation
• Audience
• Effective audience
• Effective ad-exposed audience

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 Figure 18.3 Classification of
Advertising Timing Patterns

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 Deciding on Media Timing and
Allocation
• Micro-scheduling decision: relates to seasons and
the business cycle.
• Macro-scheduling decision: calls for allocating
advertising expenditures within a short period to
obtain maximum impact.
• Buyer turnover: expresses the rate a which new
buyers enter the market.
• Purchase frequency: number of times the average
buyer buys the product during the period.
• Forgetting rate: is the rate at which the buyer
forgets the brand.

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 Deciding on Media Timing and
Allocation
• Continuity: continuous advertising in a given
period.
• Concentration: calls for spending all the
advertising dollars in a single period. For
example this works well seasonal products
such as Christmas trees.
• Flighting: this is periodial advertisement as
well however it is only so because of financial
constraints.
• Pulsing: continuous advertisement with a
heavier concentration in certain seasons.
 Evaluating Advertising
Effectiveness
• Communication-Effect Research: Is
called copy testing, seeks to determine
whether an ad is communicating
effectively.
• Consumer feedback method
• Portfolio tests
• Laboratory tests

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 Evaluating Advertising
Effectiveness
• Sales-Effect Research: the fewer or
more controllable other factors such as
features and price are, the easier it is to
measure advertising’s effects on sales .
• Sales impact is easiest to measure in
direct marketing situations.

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 Figure 18.4 Formula for Measuring
Sales Impact of Advertising

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 What is Sales Promotion?

Sales promotions consist 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.

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 Sales Promotion Tactics

Consumer- Trade-promotion
promotion • Price offs
• Samples • Allowances
• Coupons • Free goods
• Cash refund offers • Sales contests
• Price offs • Spiffs
• Premiums • Trade shows
• Prizes • Specialty
• Patronage rewards advertising
• Free trials
• Tie-in promotions
 Advertising Vs. Promotion

• Incessant price reductions, coupons, deals etc. can

devalue the product in buyers’ minds.
• Some sales promotions are consumer franchise
building.
• Dominant brands offer deals less frequently because
most deals subsidize only current users.
• Consumer franchise building promotions can offer
the best of both worlds-building brand equity while
moving product.

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 Using Sales Promotions

Establish objectives

Select tools

Develop program

Implement and control

Evaluate results

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 Major Decisions:
Establishing Objectives
• For consumers objectives include
encouraging more frequent purchases or
purchase of larger-sized units among users.
• For retailers, objectives include persuading
retailers to carry items and more inventory.
• For the sales force, objectives of promotion
include encouraging their support of a new
product, encouraging more prospecting, and
stimulating off-season sales.

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 Major Decisions:
Selecting Consumer Promotion
Tools
• The promotion planner take into
account the type of market, sales
promotion objectives, competitive
conditions and each tools cost.

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 Major Decisions: Selecting Trade
Promotion Tools
• Manufactures award money to the
trade:
• To persuade the retailer or the wholesaler
to carry the brand
• To persuade the retailer or wholesaler to
carry more unit than the normal amount.
• To induce retailers to promote the brand
• To stimulate retailers and their sales clerks
to push the product

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 Major Decisions: Selecting Trade
Promotion Tools
• Some retailers are doing forward
buying- that is buying a greater quantity
during the deal period than they can
immediately sell
• Some retailers are diverting, buying
more than needed in a region where
the manufacturer offers a deal and
shipping the surplus to their stores in
non-deal regions.
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 Major Decisions: Selecting
Business And Sales Force
Promotion Tools

• Companies spend billions of dollars on

business and sales for promotion tools
to gather leads, impress and reward
customers and motivate sales force.

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 Major Decisions: Developing The
Program
• Planning sales promotion programs, marketers are increasingly
blend in several media into a total campaign concept.
• Before using an incentive marketers first determine size: a
certain minimum discount is necessary is the promotion is to
succeed.
• Second, the marketing manager must establish conditions for
participation: incentives might be offered to everybody or select
groups.
• Third marketer must decide duration of the promotion.
• Fourth, the distribution vehicle must be chosen: a coupon can
be distributed via email, in product packages, magazines etc.
• Fifth, timing of the promotion.
• Lastly, total sales promotion budget.

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 Major Decisions: Implementing
and Evaluating the Program
• Manufacturers can evaluate the program using sales
data, consumer surveys, and experiments:
• Sales (scanner) data help analyze the types of people who
took advantage of the promotion, what they bought before
the promotion and how they behaves later toward the brand
and other brands.
• Consumer surveys can uncover how many consumers
recall the promotion, what they thought of it, ,how many
took advantage of it, and how it affected later brand-choice
behavior.
• Experiments vary such attributes as incentive, duration, and
distribution media.

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 Events Objectives
• To identify with a particular target market
or life style: Customers can be targeted
geographically, demographically,
psychographically, or behaviorally according
to events
• To increase brand awareness:
Sponsorship often offers sustained exposure
to a brand, a necessary condition to reinforce
brand salience.
• To create or reinforce consumer
perceptions of key brand image
associations: Events themselves have
associations that help to create or reinforce
brand associations
 Events Objectives
• To enhance corporate image:
Sponsorship can improve perceptions
that the company is likable and
prestigious.
• To create experiences and evoke
feelings: The feelings engendered by
an exciting or rewarding event may
indirectly link to the brand.
• To express commitment to
community: Cause-related marketing
sponsors nonprofit organizations and
charities.
 Events Objectives

• To entertain key clients or reward

employees: Many events include
lavish hospitality tents and other special
services or activities only for sponsors
and their guests
• To permit merchandising or
promotional opportunities: Many
marketers tie contests or sweepstakes,
in-store merchandising, direct
response, or other marketing activities
with an event
 Major Sponsorship Decisions

• CHOOSING EVENTS: Because of the

number of opportunities and their huge
cost, many marketers are becoming
more selective about choosing
sponsorship events. The event must
meet the marketing objectives and
communication strategy defined for the
brand. The audience must match the
target market.
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 Major Sponsorship Decisions
• DESIGNING SPONSORSHIP PROGRAMS:
• Event creation is a particularly important skill in
publicizing fund-raising drives for nonprofit
organizations.
• MEASURING SPONSORSHIP ACTIVITIES:
• supply-side measurement method focuses on
potential exposure to the brand by assessing the
extent of media coverage. It approximates the
amount of time or space devoted to media
coverage of an event,
• demand-side method focuses on exposure
reported by consumers. It identifies the effect
sponsorship has on consumers’ brand
knowledge.
 Public Relations

• A public is 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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 Public Relations Functions

• Press relations: presenting news and

information about the organization in
the most positive light.
• Product publicity: sponsoring efforts
to publicize specific products.
• Corporate communications:
promoting understanding of the
organization through internal and
external communications.
 • Lobbying: dealing with legislators and
government officials to promote or
defeat legislation and regulation.
• Counseling: advising management
about public issues, and company
positions and image during good times
and bad.

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 Marketing Public Relations

• Many companies are turning to

marketing public relations (MPR) to
support corporate or product promotion
and image making.
• The old name for MPR was publicity

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 Marketing Public Relations:
Tasks of 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 favorable on products
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 Decisions in Marketing PR

• Establish 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
 Major Tools in Marketing PR
• Publications
• Events
• Sponsorships
• News
• Speeches
• Public Service
Activities
• Identity Media

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 Decisions in Marketing PR

• Choose messages:
• MPR practitioner should propose
newsworthy events the college could
sponsor.
• Each event and activity is an opportunity to
develop a multitude of stories directed at
different audiences. A good PR campaign
will engage the public from a variety of
angles.

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 Decisions in Marketing PR

• Choose vehicles
• Implement
• Evaluate results

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