Chapter 17 MANAGING MASS

COMMUNICATIONS
DETAILED CHAPTER OUTLINE
Although there has been an enormous increase in the use of personal communications by marketers in
recent years, due to the rapid penetration of the Internet and other factors, the fact remains that mass
media, if used correctly, is still an important component of a modern marketing communications
program. The old days of if you build a great ad, they will come, however, are long gone. To
generate consumer interest and sales, mass media must often be supplemented and carefully integrated
with other communication. In the era of information sharing through the Internet and social media
sites, creating discussion-worthy symbols and characters help in creating powerful mnemonic devices
that generate higher consumer interest and brand recall.
DEVELOPING AND MANAGING AN ADVERTISING PROGRAM
Advertising can be a cost-effective way to disseminate messages, whether to build a brand preference
or to educate people.
A In developing an advertising program, marketing managers must always start by identifying
the target market and buyer motives.
! They can then make the five ma"or decisions known as the #$s%
& $ission% 'hat are the advertising ob"ectives(
) $oney% *ow much to spend(
+ $essage% 'hat message should be sent(
, $edia% 'hat media should be used(
# $easurement% *ow should the results be evaluated(
Setting the Objectives
The advertising objectives must fow from prior decisions on target market, brand
positioning, and the marketing program.
A An advertising ob"ective -or goal is a specific communication task and achievement
level to be accomplished with a specific audience in a specific period of time.
! Advertising ob"ectives can be classified according to whether their aim is to%
& Inform
) .ersuade
+ /emind
, /einforce
0 1ach aim at different stages in the hierarchy of effects discussed in 0hapter &2.
3 Information advertising aims to create brand awareness and knowledge of new products
or new features of e4isting products.
1 .ersuasive advertising aims to create liking, preference, conviction, and purchase of a
product or service.
5 /eminder advertising aims to stimulate repeat purchase of products and services.
6 /einforcement advertising aims to convince purchasers that they made the right choice.
* The advertising ob"ective should emerge from a thorough analysis of the current
marketing situation.
Deciding on the Advertising Budget
How does a company know if it is spending the right amount?
A Although advertising is treated as a current e4pense, part of it really is an investment in
building brand e7uity and customer loyalty.
Factors affecting budget decisions
*ere are five specific factors to consider when setting the advertising budget%
& 8tage in the product life cycle
) $arket share and consumer base
+ 0ompetition and clutter
, Advertising fre7uency
# .roduct substitutability
Advertising Elasticit
The predominant response function for advertising is often concave but can be 8-shaped.
'hen consumer response is 8-shaped, some positive amount of advertising is necessary to generate
any sales impact, but sales increases eventually flatten out.
Develo!ing t"e Advertising Ca#!aign
In designing and evaluating an ad campaign, marketers employ both art and science to develop the
message strategy or positioning of an ad9what the ad attempts to convey about the brand, its creative
strategy - how the ad e4presses the brand claim.
$essage %eneration and Evaluation
Advertisers are always seeking the big idea that connects with consumers rationally
and emotionally, sharply distinguishes the brand from competitors, and is broad and
flexible enough to translate to different media, markets, and time periods.Fresh
insights are important for avoiding using the same appeals and position as others.
A good ad normally focuses on one or two core selling propositions.
A 0reative brief
! .ositioning statement
&. Includes considerations such as key message, target audience, communications ob"ectives
-to do, to know, to believe, key brand benefits, supports for the brand promise, and media.
Creative Develo!#ent and E&ecution
The ad:s impact depends not only on what is said, but often more importantly, on how it says it.
14ecution can be decisive.
1very advertising medium has specific advantages and disadvantages.
Teevision Ads
Television is generally acknowledged as the most powerful advertising medium and reaches a broad
spectrum of consumers.
A The wide reach translates to low cost per e4posure.
! 5rom a brand-building perspective, T; advertising has two particularly important strengths%
& It can be an effective means of vividly demonstrating product attributes and persuasively
e4plaining their corresponding consumer benefits.
) T; advertising can be a compelling means for dramatically portraying user and usage
imagery, brand personality, and other brand tangibles.
0 Television advertising also has its drawbacks.
& !ecause of the fleeting nature of the message and the potentially distracting creative
elements, product-related messages and the brand itself can be overlooked.
) The large number of ads and non-programming material creates clutter that makes it easy
for consumers to ignore or forget ads.
+ T; advertising has high costs in production and placement.
3 .roperly designed and e4ecuted T; ads can improve brand e7uity and affect sales and profits.
& A well-done T; commercial can still be a powerful marketing tool.
Print Ads
.rint media offers a stark contrast to broadcast media.
A .rint media can provide much detailed product information and can also effectively
communicate user and usage imagery.
! *owever, the static nature of the visual images makes it difficult to provide dynamic
presentations or demonstrations.
0 It can also be a fairly passive medium.
3 The two main print media9newspapers and maga<ines9have many of the same advantages
and disadvantages.
& =ewspapers are timely and pervasive.
) $aga<ines are more effective at building user and usage imagery.
1 5ormat elements such as ad si<e, color, and illustration affect a print ad:s impact.
5 /esearchers studying print advertisements report that the%
& .icture
) *eadline
+ 0opy -are important in that order
Radio Ads
/adio is a pervasive medium.
A /adio:s main advantage is fle4ibility%
& 8tations are very targeted.
) Ads are relatively ine4pensive to produce and place.
+ 8hort closing allow for 7uick response.
! /adio is particularly effective in the morning.
& It allows a company to achieve a balance between broad and locali<ed market coverage.
) Its penetration has increased from #> percent in )??@ to @@ percent in )?&&, in India
0 The obvious disadvantages of radio are%
& The lack of visual images.
) /elatively passive nature of the consumer processing that results.
Fil# Ads
A In 8outh Asia, films are an e4tremely popular entertainment vehicle for the masses.
! The advantage of this medium is that the audience is in the mood to focus on the advertisements.
0 The freedom to choose specific films and theaters to release ads provides fle4ibility to the
advertisers.
3 The cost of developing prints for release in different theaters and the difficulties in monitoring the
screening of advertisements in far-flung movie theaters pose difficulties to advertisers.
Legal and 'ocial 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.
Advertisers and their agencies must be sure advertising does not overstep social and legal norms.
.ublic policy makers have developed a substantial body of laws and regulations to govern advertising.
Indian laws do not permit advertisements of alcoholic beverages and cigarettes to be aired on
television. *owever, indirect -or surrogate advertising is permitted in print and outdoor
advertisements for these product categories.
8imilarly, infant food advertising is not acceptable and neither are advertisements targeted at
children.
Advertisements of pharmaceutical products that promise cure, diagnosis, and treatment are
governed by the 3rugs and 0osmetics /ules and the 3rugs and $agical /emedies
-Ab"ectionable Advertisements Act. According to the Act, no advertisements should promise
magical cure for any ailments or disease. It specifies the diseases and ailments that cannot be
advertised promising cure or remedies.
Advertisements that offend morality, decency, and religious sensibilities of the audience are
also prohibited.
The Advertisements 8tandard 0ouncil of India -A80I, a self-regulatory voluntary organi<ation
formed by the advertising industry, provides basic guidelines for ensuring fairness in advertising and
has mechanisms to safeguard against misleading messages. Any individual or organi<ation can file
complaints against specific advertisements and A80I, through due processes, can pass directives on
the basis of these complaints. The Advertising 8tandards 0ouncil of India has an advertising code
which stipulates that women must not be portrayed in a manner that emphasi<es passive, submissive
7ualities, encouraging women to play a subordinate, secondary role in the family and society.
DECIDIN% ON $EDIA AND $EA'URIN% EFFECTI(ENE''
After choosing the message, the advertiser:s ne4t task is to choose media to carry it. The steps here are
deciding on desired reach, fre7uency, and impactB choosing among ma"or media typesB selecting
specific media vehiclesB deciding on media timingB and deciding on geographical media allocation.
Then the marketer evaluates the results of these decisions.
Deciding On Reac") Fre*uenc) and I#!act
$edia selection is finding the most cost-effective media to deliver the desired number and type of
e4posures to the target audience.
A 'hat do we mean by the desired number of e4posures(
& The advertiser is seeking a specified advertising ob"ective and response from the target
audience.
! The ne4t task is to find out how many e4posures, 1C, will produce a level of audience
awareness.
0 The effect of e4posures on audience awareness depends on the e4posures.
& /each
) 5re7uency
+ Impact
There are important tradeoffs among reach, fre7uency, and impact, namely budget dollars.
3 The relationship between reach, fre7uency, and impact is captured in the following concepts%
A Total number of e4posures -1 is reach times the average fre7uency% 1 D / 4 5
) 'eighted number of e4posures -'1 is the reach times average fre7uency times average
impact% '1 D / E 5 E I
1 The media planner has to figure out the most cost-effective combination of reach, fre7uency,
and impact.
5 /each is most important when%
& Faunching new products
) 5lanker brands
+ 14tensions of well-known brands
, Infre7uently purchased goods
# 6oing after an undefined target market
6 5re7uency is most important where%
& There are strong competitors
) A comple4 story to tell
+ *igh consumer resistance
, A fre7uent-purchase cycle
* A key reason for repetition is forgetting.
& The higher the forgetting rate associated with a brand, the higher the warranted level of
repetition.
) Ads wear out and viewers tune them out so repetition is not enough.
+ Advertisers should insist on fresh ads.
!hoosing A"ong M#jor Medi# T$%es
The media planner has to know the capacity of the major advertising media types to
deliver reach, frequency, and impact.
A $edia planners make their choices by considering the following variables%
& Target audiences: media habits
) .roduct characteristics
+ $essage characteristics
, 0ost
! 6iven the abundance of media, the planner must first decide how to allocate the budget to the
ma"or media types.
0 The distribution must be planned with the awareness that people are increasingly time-starved.
3 Attention is becoming a scarce currency, and advertisers need strong devices to capture
people:s attention.
1 $arketers must also recogni<e that consumer response can be 8-shaped% An ad threshold
effect e4ists where some positive amount of advertising is necessary before any sales impact
can be detected, but sales increases eventually flatten out.
Atern#tive Advertising O%tions
In recent years, reduced effectiveness of traditional mass media has led advertisers to increase
their emphasis on alternate advertising media.
Place Advertising
.lace advertising, or out-of-home advertising, is a broadly defined category that captures many
different alternative advertising forms.
A $arketers are using creative and une4pected ad placement to grab consumer:s attention.
! The rationale is that marketers are better off reaching people in other environments, such as
where they%
& 'ork
) .lay
+ 8hop
0 8ome of the options available include%
& !illboards
) .ublic places
+ .roduct placement
, .oint-of-purchase
There are many ways to communicate with consumers at the point of purchase -P+O+P.
In-store advertising includes ads on shopping carts, cart straps, aisles, and shelves, as well as
promotion options such as in-store demonstrations, live sampling, and instant coupon machines.
8ome supermarkets are selling floor space for company logos and e4perimenting with talking shelves.
.-A-. radio provides 5$-style programming and commercial messages to thousands of food stores
and drugstores nationwide.
.rogramming includes a store-selected music format, consumer tips, and commercials.
$ar,eting $e#o- .rand Place#ents in .oll/ood
/ecent years have witnessed the growing phenomenon of brand placements in *indi movies. In the
past, product and brand placements were a blink and- miss affair in movie scenesB today, they are
woven into story lines and dialogs. A variety of brands across different product categories, ranging
from automobiles to soft drinks and engine oils, have found a place in movies.
The number of brand placements in !ollywood movies however lags behind *ollywood. Als despite
the increasing number of integrated product placements, !ollywood still has a higher number of visual
depiction rather than integrations with the story line.
Evaluating Alternative $edia
Ads can now appear virtually anywhere consumers have a few minutes or even seconds to notice
them.
The main advantage of non-traditional media is a very precise and captive audience in a cost-
effective manner.
A Gni7ue ad placements designed to break through clutter may also be perceived as invasive and
obtrusive, however.
! 0onsumer backlash often results when people see ads in traditionally ad-free spaces, such as
in schools, on police cruisers, and in doctors: waiting rooms.
0 The challenge with non-traditional media is demonstrating its reach and effectiveness through
credible, independent research.
3 These new marketing strategies must be "udged on how they contribute, directly or indirectly,
to brand e7uity.
1 .erhaps because of the sheer pervasiveness of advertising, consumers seem to be less bothered
by non-traditional media now than in the past.
5 0onsumers must be favorably affected in some way to "ustify the marketing e4penditures for
non-traditional media.
$ar,eting Insig"t- Co##unicating to t"e Rural Audience
6iven the number and variations in spoken languages, and the comple4ities due to culture, ethos, and
value orientations, developing and e4ecuting a communication strategy for the rural audience in 8outh
Asia is a challenging task for marketers. A deeper understanding of the social, behavioral, and
psychological sensibilities of rural audiences is critical while designing the communication strategy.
8tudies show that the same commercial is interpreted differently in different parts of the country and
that 7uickies, gimmicks, or slick advertisements are not appreciated by rural consumers.
0onventional media such as cinema, radio, and television has been limited in its reach and impact in
rural areas. *owever, with increasing literacy and penetration of technology, this situation is changing.
Television has emerged as the fastest growing and most powerful medium in rural India. 'hile
developing communication strategies for rural markets, companies rely on nonconventional, rural-
centric media such as haats, mandis, melas, video vans, and folk media in addition to conventional
media.
$ar,eting Insig"t- Plaing ga#es /it" brands
$any advertisers have adopted an if you can:t beat them, "oin them attitude and are advertising in
online games. $arketers are also playing starring roles in popular video games by having their
product featured in the games. The growing popularity of 8econd Fife and other virtual communities
is creating new placement opportunities for marketers.
Seecting S%eci&c Vehices
The media planner must search for the most coste!ective vehicles within each
chosen media type.
A In making choices, the planner has to rely on measurement services that provide estimates of
audience si<e, composition, and media cost.
! Audience si<e has several possible measures%
& 0irculation
) Audience
+ 1ffective audience
, 1ffective ad-e4posed audience
0 $edia planner calculates the cost per thousand persons reached by a vehicle.
3 8everal ad"ustments have to be applied to the cost-per-thousand measure%
& The measure should be ad"usted for audience 7uality.
) The e4posure value should be ad"usted for the audience-attention probability.
+ The e4posure value should be ad"usted for the maga<ine:s editorial 7uality -prestige and
believability.
, The e4posure value should be ad"usted for the maga<ine:s ad placement policies and e4tra
services.
1 $edia planners are using more sophisticated measures of effectiveness and employing them in
mathematical models to arrive at the best media mi4.
Deciding On $edia Ti#ing and Allocation
In choosing media, the advertiser faces both a macro scheduling and a micro-scheduling problem.
A The macro-scheduling problem involves scheduling the advertising in relation to seasons and
the business cycle.
! The micro-scheduling problem calls for allocating advertising e4penditures within a short
period to obtain ma4imum impact.
0 The most effective pattern depends on the communication ob"ectives in relation to the%
& .roduct
) Target customers
+ 3istribution channels
, Ather marketing factors
3 The timing pattern should also consider three factors%
& !uyer turnover% the higher this rate, the more continuous the advertising should be.
) .urchase fre7uency% the higher the purchase fre7uency, the more continuous the
advertising should be.
+ 5orgetting rate% the higher the forgetting rate, the more continuous the advertising should
be.
1 In launching a new product, the advertiser has to choose among%
& 0ontinuity
) 0oncentration
+ 5lighting
, .ulsing
5 A company has to decide how to allocate its advertising budget over space as well as over
time%
& Areas of dominant influence -A3Is
) 3esignated marketing areas -3$As
Evaluating Advertising Effectiveness
$ost advertisers try to measure the communication effect of an ad9that is, the potential effect
on awareness, knowledge, or preference. They would also like to measure the ad:s sales effect.
Co##unication+Effect Researc"
0ommunication-effect research seeks to determine whether an ad is communicating effectively.
0alled copy testing, it can be done before an ad is put into media and after it is printed or
broadcast.
There are three ma"or methods of pre-testing%
A The consumer feedback method asks consumers for their reactions to a proposed ad.
! .ortfolio tests ask consumers to view or listen to a portfolio of advertisements, then consumers
are asked to recall all the ads and their contents.
0 Faboratory tests use e7uipment to measure physiological reactions to an ad.
$any advertisers use post-tests to assess the overall impact of a completed campaign.
'ales+Effect Researc"
The fewer or more controllable other factors such as features and price are, the easier
it is to measure advertisings effect on sales. The sales impact is easiest to measure in
direct marketing situations and hardest in brand or corporate image-building
advertising.
A 8ales are influenced by many factors%
& 5eatures
) .rice
+ Availability
, 0ompetitors: actions
! The sales impact is easiest to measure in direct-marketing situations.
0 It:s harder to measure in brand or corporate image-building campaigns.
3 0ompanies are generally interested in finding out whether they are overspending or under
spending on advertising.
1 A company:s share of advertising e4penditures produces%
& A share of voice
) 1arns a share of consumers: minds and hearts
+ Gltimately a share of market
5 /esearchers try to measure the sales impact through analy<ing historical or e4perimental data.
6 The historical approach involves correlating past sales to past advertising e4penditures.
* Ather researchers use an e4perimental design to measure advertising:s sales impact.
'ALE' PRO$OTION
8ales promotion, a key ingredient in marketing campaigns, consists of a collection of incentive
tools, mostly short-term, designed to stimulate 7uicker or greater purchase of particular products
or services by consumers or the trade.
A 'here advertising offers a reason to buy, sales promotion offers an incentive to buy.
! 8ales promotions include tools for%
& 0onsumer promotion
) Trade promotion
+ !usiness and sales-force promotion
Ob0ectives
8ales promotions tools vary in their specific ob"ectives%
A 8ellers use incentive-type promotions to%
& Attract new users.
) /eward loyal customers.
+ Increase the repurchase rates of occasional users.
! 8ales promotions are often used to attract brand switchers.
0 8ales promotions used in markets of high brand similarity can produce a high sales response
in the short run.
3 In markets of high brand dissimilarity, sales promotions may be able to alter market shares
permanently.
1 In addition to brand switching, consumers may engage in stockpiling during sales promotions.
Advertising versus Pro#otion
8ales promotion e4penditures increased as a percentage of budget e4penditure for a number of
years, although its growth has recently slowed.
A 8everal factors contributed to this growth, particularly in consumer markets.
! .romotion became more accepted by top management as an effective sales toolB
0 The number of brands increasedB competitors used promotions fre7uentlyB
3 $any brands were seen as similarB
1 0onsumers became more price-orientedB
5 The trade demanded more deals from manufacturersB
6 Advertising efficiency declined.
* The rapid growth of sales promotion created clutter.
I Foyal brand buyers tend not to change their buying patterns as a result of competitive
promotions.
H .rice promotions may not build permanent total-category volume.
I The upshot is that many consumer-packaged-goods companies feel forced to use more
sales promotion than they wish. They blame heavy use of sales promotion for decreased
brand loyalty, increased price sensitivity, brand-7uality image dilution, and a focus on
short-run marketing planning.
$a0or Decisions
In using sales promotions, a company must establish its ob"ectives, select the tools, develop the
program, pretest the program, implement and control it, and evaluate the results.
Establis"ing Ob0ectives
8ales promotion ob"ectives are derived from broader promotion ob"ectives that are derived from more
basic marketing ob"ectives developed for the product.
A 5or consumers, ob"ectives may include%
& 1ncouraging purchase of larger-si<ed units
) !uilding trial among non-users
+ Attracting switchers away from competitors: brands
! Ideally, promotions with consumers would have short-run sales impact as well as long-run
brand e7uity effects.
0 5or retailers, ob"ectives include persuading retailers to%
& 0arry new items
) *igher levels of inventory
+ 1ncourage off-season buying
, 1ncourage stocking of related items
# Affset competitive promotions
2 !uild brand loyalty
@ 6ain entry into new retail outlets
3 5or the sales force, ob"ectives include%
& 1ncourage support of a new product or model
) 1ncourage more prospecting
+ 8timulate off-season sales
'electing Consu#er+Pro#otion Tools
The promotion planner should take into account the type of market, sales-promotion ob"ectives,
competitive conditions, and each tool:s cost effectiveness.
A 'e can distinguish between manufacturer:s promotions and retailer promotions.
& $anufacturer:s promotions are illustrated by use of rebates and gifts.
) /etailer promotions include price cuts, feature advertising, coupons, contests, or
premiums.
! 'e can also distinguish between sales-promotion tools that are consumer-franchise building
and reinforce the consumer:s brand preference and those that do not.
0 0onsumer franchise-building promotions offer the best of both worlds9they build brand
e7uity while moving product.
3 8ales promotion seems most effective when used together with advertising.
1 3igital coupons eliminate printing costs, reduce paper waste, are easily updatable, and have
higher redemption rates.
'electing Trade+Pro#otion Tools
$anufacturers use a number of trade-promotion toolsB a higher proportion of the promotion pie
is devoted to trade-promotion tools than to consumer promotion.
A $anufacturers award money to the trade%
& To persuade the retailer or wholesaler to carry the brand
) To persuade the retailer or wholesaler to carry more units than the normal amount
+ To induce retailers to promote the brand by featuring, displaying, and reducing prices
, To stimulate retailers and their sales clerks to push the product
! The growing power of large retailers has increased their ability to demand trade promotions at
the e4pense of consumer promotion and advertising.
0 $anufacturers face several challenges in managing trade promotions%
& They often find it difficult to police retailers
a. $anufacturers are increasingly insisting on proof of performance before paying
allowance
) $ore retailers are doing forward buying9buying a greater 7uantity during the deal period
than they can sell during the deal period
+ /etailers are doing more diverting
a. $anufacturers are trying to handle forward buying and diverting by limiting the
amount that they will sell at a discount
'electing .usiness+and 'ales+Force+Pro#otion Tools
0ompanies spend billions of dollars on business- and sales-force-promotion tools. These tools are
used to gather business leads, impress, and reward customers, and motivate the sales force to greater
effort.
Develo!ing t"e Progra#
In planning sales-promotion programs, marketers are increasingly blending several media into a total
campaign concept.
A In deciding to use a particular incentive, marketers have several factors to consider%
& The si<e of the incentive
) The conditions for participation
+ The duration of the promotion
, The distribution vehicle
# The timing of the promotion
2 The total sales-promotion budget
I#!le#enting and Evaluating t"e Progra#
$arketing managers must prepare implementation and control plans for each individual promotion
that cover lead-time and sell-in time.
A Fead-time is the time necessary to prepare the program prior to launching it.
! 8ell-in time begins with the promotional launch and ends when the merchandise is in the
hands of consumers.
0 $anufacturers can evaluate the program using three methods%
A 8ales data
! 0onsumer survey
0 14periments
3 Additional costs beyond the cost of specific promotions include the risk that promotions
might decrease long-run brand loyalty.
a. .romotions can be more e4pensive than they appear. 8ome are inevitably
distributed to the wrong consumers.
b. 0osts of special production runs, e4tra sales-force effort, and handling
re7uirements.
c. 5inally, certain promotions irritate retailers, who may demand e4tra trade
allowances or refuse to cooperate.
E(ENT' AND E1PERIENCE'
8ponsoring events enables companies to obtain wider e4posure for their brands and influence
consumers: attitude towards brands. 0ricket sponsorship is big business in 8outh Asia. In business-to-
business conte4t also, sponsorship is important to obtain visibility and positive word-of-mouth
publicity. $a"or events and conferences are sponsored by companies who get positive e4posure to
well defined target audiences.
!y becoming part of a special and more personally relevant moment in consumers: lives, involvement
with events can broaden and deepen the relationship in consumers: lives.
A 3aily encounters with brands may also affect consumers: brand attitudes and beliefs.
! Atmospheres are packaged environments that create or reinforce leaning toward product
purchase.
$ore firms are creating on-site or off-site product and brand e4periences.$any firms are creating
their own events and e4periences to create consumer and media interest and involvement.
Events Ob0ectives
$arketers report a number of reasons why they sponsor events%
A To identify with a particular target market or lifestyle
! To increase awareness of company or product name
0 To create or reinforce consumer perceptions of key brand image associations
3 To enhance corporate image dimensions
1 To create e4periences and evoke feelings
5 To e4press commitment to the community or to social issues
6 To entertain key clients or reward key employees
* To permit merchandising or promotional opportunities
I 3espite these potential advantages, there are a number of potential disadvantages to
sponsorships%
& The success of the event can be unpredictable and out of the control of the sponsor.
) 8ome consumers may still resent the commerciali<ation of events.
$a0or '!onsors"i! Decisions
$aking sponsorships successful re7uires choosing the appropriate events, designing the optimal
sponsorship program for the event, and measuring the effects of sponsorship.
C"oosing Events
!ecause of the huge amount of money involved and the number of events, many marketers are
becoming more selective about choosing sponsorship events.
A The event must meet the marketing ob"ectives and communication strategy defined for the
brand.
& The audience delivered by the event must match the target market.
) The event must have sufficient awareness.
+ .ossess the desired image.
, !e capable of creating the desired effect with that target market.
# 0onsumers must make favorable attributions to the sponsor for its event involved.
! An ideal event is also uni7ue but not encumbered with many sponsors, lending itself to%
& ancillary marketing activities,
) reflect or enhance the sponsor:s brand or corporate image.
Designing '!onsors"i! Progra#s
$any marketers believe that it is the marketing program accompanying an event sponsorship that
ultimately determines its success.
A At least ) to + times the amount of the sponsorship e4penditure should be spent on related
marketing activities.
! 1vent creation is a particularly important skill in publici<ing fundraising drives for non-profit
organi<ations.
0 $ore firms are now using their names to sponsor the arenas, stadiums, and other venues that
hold events.
$easuring '!onsors"i! Activities
It is a challenge to measure the success of events.
& The supply-side method focuses on potential e4posure to the brand by assessing the e4tent
of media coverage.
) 3emand-side method focuses on reported e4posure from consumers.
! 8upply-side methods attempt to appro4imate the amount of time or space devoted to media
coverage of an event.
& This measure of potential impressions is then translated into an e7uivalent value in
advertising dollars according to the fees associated with actual advertising in the particular
media vehicle.
0 The demand-side method attempts to identify the effects sponsorship has on consumers: brand
knowledge.
Creating E&!eriences
A large part of local, grassroots marketing is e4periential marketing, which not only
communicates features and benefits, but also connects a product or service with uni7ue and
interesting e4periences.
$ar,eting $e#o- $easuring Hig" Perfor#ance '!onsors"i! Progra#s
$easure outcomes, not outputs. 5ocus on what a sponsorship actually produced rather
than what a sponsor got or did.
3efine and benchmark ob"ectives on the front end. 8pecific ob"ectives help to identify
what measures should be tracked.
$easure return for each ob"ective against prorated share of rights and activation fees.
/ank and rate ob"ectives by importance and allocate the total sponsorship budget against
each of those ob"ectives.
$easure behavior. 0onduct a thorough sales analysis to identify shifts in marketplace
behavior as a result of the sponsorship.
Apply the assumptions and ratios used by other departments within the company.
Applying statistical methods used by other departments makes it easier to gain
acceptance for any sponsorship analysis.
/esearch the emotional identities of customers and measure the results of emotional
connections.
Identify group norms. *ow strong of a community e4ists around the sponsored event or
participants(
Include cost savings in /AI calculations. 0ontrast e4penses that a firm has typically
incurred in the past achieving a particular ob"ective from those e4penses allocated to
achieve the ob"ective as part of the sponsorship.
8lice the data. 8ponsorship affects market segments differently. !reaking down a target
market into smaller segments can better identify sponsorship effects.
0apture normative data. 3evelop a core set of evaluation criteria that can be applied
across all different sponsorship programs.
PU.LIC RELATION'
=ot only must the company relate constructively to customers, suppliers, and dealers, it must
also relate to a large number of interested publics.
A A public is any group that has an actual or potential interest in or impact on a company:s
ability to achieve its ob"ectives.
! .ublic relations -./ involves a variety of programs designed to promote or protect a
company:s image to its individual products.
0 The wise company takes concrete steps to manage successful relations with its key publics.
3 $ost companies have a public-relations department that monitors the attitudes of the
organi<ations: publics and distributes information and communications to build goodwill.
1 ./ departments perform the following functions%
& .ress relations
) .roduct publicity
+ 0orporate communications
, Fobbying
# 0ounseling
$ar,eting Public Relations
$any companies are turning to marketing public relations -$./ to support corporate or product
promotion and image making.
A The old name for $./ was publicity that was seen as the task of securing editorial space to
promote or hype a product, service, idea, etc.
! $./ goes beyond simple publicity and plays an important role in the following tasks%
& Faunching new products
) /epositioning a mature product
+ !uilding interest in a product category
, Influencing specific target groups
# 3efending products that have encountered public problems
2 !uilding the corporate image in a way that reflects favorably on its products
0 As the power of mass advertising weakens, marketing managers are turning to $./ to build
awareness and brand knowledge for both new and established products.
3 $./ is also effective in blanketing local communities and reaching specific groups.
1 $./ must be planned "ointly with advertising.
5 0reative public relations can affect public awareness at a fraction of the cost of advertising.
6 8ome e4perts say that consumers are five times more likely to be influenced by editorial copy
than by advertising.
$a0or Decisions in $ar,eting PR
In considering when and how to use $./, management must establish the marketing ob"ectives,
choose the ./ messages and vehicles, implement the plan carefully, and evaluate the results.
Establis"ing Ob0ectives
$./ can%
A !uild awareness by placing stories in the media to bring attention to a product, service,
person, organi<ation, or idea.
! It can build credibility by communicating the message in an editorial conte4t.
0 It can help boost sales-force and dealer enthusiasm with stories about a new product before it
is launched.
3 It can hold down promotion costs because $./ costs less than direct mail and media
advertising.
C"oosing $essage and (e"icles
The $./ manager must identify or develop interesting stories about the product.
A 1ach event is an opportunity to develop a multitude of stories directed at different
audiences.
! The best $./ practitioners are able to find or create stories even for mundane or out-of-
fashion product.
I#!le#enting t"e Plan and Evaluating Results
$./:s contribution to the bottom line is difficult to measure, because it is used along with other
promotional tools.
A The three most commonly used measures of $./ effectiveness are%
& =umber of e4posures
) Awareness, comprehension, or attitude change
+ 0ontribution to sales and profits
! The easiest measure of $./ effectiveness is the number of e4posures carried by the media.
& This measure is not very satisfying because it contains no indication of%
a. *ow many people actually read, heard, or recalled the message
b. 'hat they thought afterward
c. Information on the net audience reached
-i It would be better to know the number of unduplicated e4posures
0 A better measure is the change in%
& .roduct awareness )0omprehension +Attitude resulting from the $./ campaign