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12. Marketing Communications &. Advertising. Prepared by Deborah Baker Texas Christian University. Learning Objectives. 1. Discuss the elements of the promotional mix and their role in the marketing mix Describe the communication process - PowerPoint PPT PresentationTRANSCRIPT
1Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12
Marketing Marketing Communications &Communications &
Prepared byDeborah Baker
Texas Christian University
12 Advertising
2Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12
Learning ObjectivesLearning Objectives
1. Discuss the elements of the promotional mix and their role in the marketing mix
2. Describe the communication process
3. Explain promotional goals and tasks, and the AIDA concept
4. Describe the factors that affect the promotional mix
3Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12
Learning ObjectivesLearning Objectives
5. Discuss the effects of advertising on market share and consumers
6. Identify the major types of advertising
7. Discuss the creative decisions in developing an advertising campaign
8. Describe media evaluation and selection techniques
4Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12
Learning Objective Learning Objective
Discuss the elements of the promotional mix and their role in the marketing mix
1
1
Onlinehttp://www.easports.com
5Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12
PromotionPromotion
PromotionPromotionCommunication by marketers that informs, persuades, and reminds
potential buyers of a product in order to influence an opinion or
elicit a response.
1
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Promotional StrategyPromotional Strategy
Promotional StrategyPromotional StrategyA plan for the optimal use of the
elements of promotion:
1
Advertising Public Relations Sales Promotion Personal Selling
CompetitiveCompetitiveAdvantageAdvantage
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The Role of PromotionThe Role of PromotionOverall
Marketing Objectives
Marketing Mix• Product• Distribution• Promotion• Price
Target Market
Promotional Mix
• Advertising• Public Relations• Sales Promotion• Personal Selling
Promotion Plan
1
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Competitive AdvantageCompetitive Advantage
Unique features
Excellent service
Low prices
Rapid delivery
High product quality
1
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Promotional MixPromotional Mix
Advertising Public Relations Sales Promotion Personal Selling
Promotional MixPromotional MixCombination of promotion tools used to reach the target market and fulfill
the organization’s overall goals.
2
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AdvertisingAdvertising
AdvertisingAdvertisingImpersonal, one-way
mass communication about a product or organization that is paid
for by a marketer.
2
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Advertising MediaAdvertising Media
Traditional Advertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Electronic mail Interactive video
2
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Public RelationsPublic Relations
Public RelationsPublic RelationsThe marketing function that
evaluates public attitudes, identifies areas within the organization that the
public may be interested in, and executes a program of action to earn
public understanding and acceptance.
2
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Functions of Public RelationsFunctions of Public Relations
Evaluates public attitudes
Identifies areas of public interest
Executes programs to “win” public
2
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Sales PromotionSales Promotion
Sales PromotionSales PromotionMarketing activities--other than
personal selling, advertising, and public relations--that stimulate
consumer buying and dealer effectiveness.
2
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Sales PromotionSales Promotion
EndConsumers
Trade Customers
CompanyEmployees
2
Free samples
Contests
Premiums
Trade Shows
Vacation Giveaways
Coupons
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Personal SellingPersonal Selling
Personal SellingPersonal SellingPlanned presentation to one or more
prospective buyers for the purpose of making a sale.
2
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Personal SellingPersonal Selling
Traditional Selling
Relationship Selling
2
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Learning Objective Learning Objective
Describe the communication process2
2
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CommunicationCommunication
CommunicationCommunicationThe process by which we exchange
or share meanings through a common set of symbols.
2
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Marketing CommunicationMarketing Communication
Categories of Communication
InterpersonalCommunication
MassCommunication
2
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As Senders As Receivers
The Communication ProcessThe Communication Process
Develop messages
Adapt messages
Spot new communication opportunities
2
Inform
Persuade
Remind
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The Communication ProcessThe Communication Process
Noise
Sender EncodingMessage
FeedbackChannel
MessageChannel
DecodingMessage Receiver
2
Onlinehttp://www.mcdonalds.com
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Characteristics of AdvertisingCharacteristics of Advertising
Communication Mode Communication ControlFeedback AmountFeedback SpeedMessage Flow DirectionMessage Content ControlSponsor IdentificationReaching Large Audience Message Flexibility
AdvertisingAdvertising
Indirect and non-personal LowLittle
DelayedOne-way
YesYesFast
Same message to all audiences
2
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Characteristics of Public RelationsCharacteristics of Public Relations
Communication Mode Communication ControlFeedback AmountFeedback SpeedMessage Flow DirectionMessage Content ControlSponsor IdentificationReaching Large Audience Message Flexibility
Public RelationsPublic Relations
Usually indirect, non-personal Moderate to low
LittleDelayedOne-way
NoNo
Usually fast Usually no direct control
2
25Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12
Characteristics of Sales Characteristics of Sales PromotionPromotion
Communication Mode Communication ControlFeedback AmountFeedback SpeedMessage Flow DirectionMessage Content ControlSponsor IdentificationReaching Large Audience Message Flexibility
Sales PromotionSales Promotion
Usually indirect and non-personal Moderate to low
Little to moderateVaries
Mostly one-wayYesYes
Fast Same message to varied target
2
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Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication ControlFeedback AmountFeedback SpeedMessage Flow DirectionMessage Content ControlSponsor IdentificationReaching Large Audience Message Flexibility
Personal SellingPersonal Selling
Direct and face-to-face HighMuch
ImmediateTwo-way
YesYes
Slow Tailored to prospect
2
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Learning Objective Learning Objective
Explain the goals and tasks of promotion, and the AIDA concept
3
3
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Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
PLC StagesPLC Stages:Introduction Early Growth
PLC Stages:PLC Stages:Growth Maturity
PLC Stages:PLC Stages:Maturity
3
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Goals and Tasks of PromotionGoals and Tasks of Promotion
Increase awareness
Explain how product works
Suggest new uses
Build company image
3
Informative Objective
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Goals and Tasks of PromotionGoals and Tasks of Promotion
Encourage brand switching
Change customers’ perception of product attributes
Influence buying decision
Persuade customers to call
3
Persuasive Objective
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Goals and Tasks of PromotionGoals and Tasks of Promotion
Remind customers that product may be needed
Remind customers where to buy product
Maintain customer awareness
3
Reminder Objective
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The AIDA ConceptThe AIDA Concept
AIDA Concept AIDA Concept Model that outlines the process for
achieving promotional goals in terms of stages of consumer
involvement with the message.
3
Onlinehttp://www.kohler.com
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AIDA and the Promotional MixAIDA and the Promotional Mix
3
Veryeffective
Somewhateffective
Noteffective
AttentionAttention InterestInterest DesireDesire ActionAction
AdvertisingAdvertising
PublicPublicRelationsRelations
SalesSalesPromotionPromotion
PersonalPersonalSellingSelling
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Learning Objective Learning Objective
Describe the factors that affect the promotional mix
4
4
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Factors Affecting the Factors Affecting the Choice of Promotional MixChoice of Promotional Mix
Nature of the product
Stage in PLC
Target market factors
Type of buying decision
Promotion funds
Push or pull strategy
4
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Product Life Cycle and theProduct Life Cycle and thePromotional MixPromotional Mix
Light Advertising;
pre-introduction
publicity
Heavy use of Advertising;
PR forawareness;
sales promotion
for trial
AD/PRdecrease;
limited sales
promotion; personal selling for
distribution
Ads decrease;
sales promotion;personal selling;
reminder & persuasive
Advertising, PR, brand
loyalty;personal selling for
distribution
IntroductionIntroduction GrowthGrowth
MaturityMaturityDeclineDecline
Sale
s ($
)Sa
les
($)
TimeTime
4
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Target Market CharacteristicsTarget Market Characteristics
For… Widely scattered
market Informed buyers Repeat buyersAdvertising
Sales Promotion
Less Personal SellingOnlinehttp://www.radioguide.com
4
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Type of Buying DecisionType of Buying Decision
Advertising
Sales PromotionType ofType of
Buying DecisionBuying DecisionAffectsAffects
Promotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not RoutineNot Routineor Complexor Complex
Advertising
Public Relations
4
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Available FundsAvailable Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
4
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Push and Pull StrategiesPush and Pull Strategies
ManufacturerManufacturerpromotes to promotes to wholesalerwholesaler
Wholesaler Wholesaler promotes to promotes to
retailerretailer
Retailer Retailer promotes topromotes toconsumerconsumer
ConsumerConsumerbuys frombuys from
retailerretailer
PUSH STRATEGYPUSH STRATEGY
Orders to manufacturer
ManufacturerManufacturerpromotes to promotes to
consumerconsumer
Consumer Consumer demands demands productproduct
from retailerfrom retailer
Retailer Retailer demands demands productproduct
from wholesalerfrom wholesaler
Wholesaler Wholesaler demandsdemands
product fromproduct frommanufacturermanufacturer
Orders to manufacturer
PULL STRATEGYPULL STRATEGY
4
41Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12
Integrated Marketing Integrated Marketing CommunicationsCommunications
Integrated Marketing Integrated Marketing CommunicationsCommunications
A method of carefully coordinating all promotional messages to assure the
consistency of messages at every contact point where a company meets
the consumer.
4
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Learning Objective Learning Objective
Discuss the effect of advertising on market share and consumers
5
5
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AdvertisingAdvertising
U.S. advertising expected to reach $300 billion per year in 2006
Top 200 brands account for 37 percent of media spending
The advertising industry is small—only 13,000 employed in advertising agencies
Ad budgets of some firms exceed over $2 billion per year—over $6 million per day!
5
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Advertising and Market ShareAdvertising and Market Share
New brands spend proportionately more for advertising than old ones
A certain level of exposure is needed to affect purchase habits
Beyond a certain level, diminishing returns set in
5
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Advertising and the ConsumerAdvertising and the Consumer
Average U.S. citizen is exposed to hundreds of ads each day
Advertising may change a consumer’s attitude toward a product
Advertising can affect consumer ranking of brand attributes
5
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Learning Objective Learning Objective
Identify the major types of advertising
6
6
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Major Types of AdvertisingMajor Types of Advertising
InstitutionalAdvertising
ProductAdvertising
Designed to enhance a company’s image rather than promote a
particular product.
Designed to tout the benefits of a specific good or service.
6
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Major Types of AdvertisingMajor Types of AdvertisingEnhance
corporation’s identity
Pioneering
Competitive
Comparative
ProductAdvertising
InstitutionalAdvertising
Advocacy advertising
6
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Onlinehttp://www.pizzahut.comhttp://www.papajohns.com
Product AdvertisingProduct AdvertisingPioneeringPioneering
Stimulates primary demand for new product or category
Used in the PLC introductory stage
CompetitiveCompetitive Influences demand for brand in the
growth phase of the PLC Often uses emotional appeal
ComparativeComparative Compares two or more competing
brands’ product attributes Used if growth is sluggish, or if
competition is strong2
6
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Learning Objective Learning Objective
Discuss the creative decisions in developing an advertising campaign
7
7
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Steps in Creating an Advertising Steps in Creating an Advertising CampaignCampaign
Determine the advertising objectives
Make creative decisions Make media decisions
Evaluate the campaign
7
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Setting Objectives: The DAGMAR Setting Objectives: The DAGMAR ApproachApproach
Define target audience
Define desired percentage change
Define the time frame for change
7
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Creative DecisionsCreative Decisions
Develop and evaluateadvertising appeals
Execute the message
Evaluate thecampaign’s effectiveness
Identify product benefits
7
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Identify Product BenefitsIdentify Product Benefits
7
Attribute
Benefit
“Powerade’s new line has been reformulated to combine the scientific
benefits of sports drinks with B vitamins and to speed up energy metabolism.”
So?
“So, you’ll satisfy your thirst with a great-tasting drink that will power you
throughout the day.”
55Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 12
Common Advertising AppealsCommon Advertising AppealsProfit
Health
Love or romance
Fear
Admiration
Convenience
Fun and pleasure
Vanity and egotism Environmental Consciousness
Product saves, makes, or protects money
Appeals to body-conscious or health seekers
Used in selling cosmetics and perfumes
Social embarrassment, old age, losing health
Reason for use of celebrity spokespeople
Used for fast foods and microwave foods
Key to advertising vacations, beer, parks
Used for expensive or conspicuous items
Centers around environmental protection
7
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Unique Selling PropositionUnique Selling Proposition
Unique Selling PropositionUnique Selling Proposition
A desirable, exclusive, and believable advertising appeal selected as the
theme for a campaign.
7
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Executing the MessageExecuting the Message
Mood or Image
Musical
Demon-stration
Scientific
Real/AnimatedProductSymbols
Fantasy
LifestyleSlice-of-Life
Humorous
CommonCommonExecutionalExecutional
StylesStyles
Spokes-person/
Testimonial
7
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Learning Objective Learning Objective
Describe media evaluation and selection techniques
8
8
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Major Types of Advertising MediaMajor Types of Advertising MediaNewspapers
Magazines
Radio
Television
Outdoor Media
Internet
Alternative Media
8
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NewspapersNewspapersAdvantagesAdvantages
Geographic selectivity Short-term advertiser
commitments Immediacy Year-round readership High individual market
coverage Co-op and local tie-in
availability Short lead time
DisadvantagesDisadvantages
Limited demographic selectivity
Limited color Low pass-along rate May be expensive
8
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MagazinesMagazines
8
Good reproduction Demographic selectivity Regional/local selectivity Long advertising life High pass-along rate
Long-term advertiser commitments
Slow audience build-up Limited demonstration
capabilities Lack of urgency Long lead time
AdvantagesAdvantages DisadvantagesDisadvantages
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No visual treatment Short advertising life High frequency to generate
retention Background distractions Commercial clutter
AdvantagesAdvantages DisadvantagesDisadvantages
RadioRadio
Low cost Immediacy of message Short notice okay No seasonal audience
change Highly portable Short-term advertiser
commitments Entertainment carryover
8
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TelevisionTelevision
8
Wide, diverse audience Low cost per thousand Creative and
demonstrative Immediacy of messages Entertainment carryover Demographic selectivity
with cable
Short life of message Consumer skepticism High campaign cost Little demographic
selectivity with stations Long-term advertiser
commitments Long lead times for
production Commercial clutter
AdvantagesAdvantages DisadvantagesDisadvantages
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Outdoor MediaOutdoor Media
8
Repetition Moderate cost Flexibility Geographic selectivity
Short message Lack of demographic
selectivity High “noise” level
AdvantagesAdvantages DisadvantagesDisadvantages
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InternetInternet
8
Fast growing Ability to reach narrow
target audience Short lead time Moderate cost
Difficult to measure ad effectiveness and ROI
Ad exposure relies on “click through” from banner ads
Not all consumers have access to internet
AdvantagesAdvantages DisadvantagesDisadvantages
Onlinehttp://www.fox.comhttp://www.abc.com
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Examples of Alternative MediaExamples of Alternative Media
Onlinehttp://www.looksmart.com/aboutus/media
http://www.yahoo.com/info/advertising
http://www.bmw.com
8
Ads in Movies and Videos
Interactive Kiosks
Computer Screen Savers
Video Shopping Carts
Fax Machines
CD-ROMs
Advertainments
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Media Mix DecisionsMedia Mix DecisionsCost perContact
Reach
Frequency
AudienceSelectivity
The cost of reaching one member of the target market.
The number of target consumers exposed to a commercial at least
once during a time period.The number of times an individual is exposed to a message during a time
period.
The ability of an advertising medium to reach a precisely defined market.
8
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Media SchedulingMedia SchedulingContinuous
Media Schedule
Flighted Media Schedule
PulsingMedia Schedule
SeasonalMedia Schedule
Advertising is run steadily throughout the period.
Advertising is run heavily every other month or every two weeks.
Advertising combines continuous scheduling with flighting.
Advertising is run only when the product is likely to be used.
8