Você está na página 1de 475

PROMOTIONAL

MANAGEMENT
1.INTRO TO IMC: A BIGGER
PERSPECTIVES OF IMC
SEPT-DEC 2015

Learning Objectives

Understand how advertising has moved from traditional medium to the Internet, (b) how website
owners have more control over their advertising, and (c) the cost of such advertising.
Understand the rapidly changing media environment is making it increasingly difficult to reach
target audiences and communicate effectively with them.
Understand how traditional media is more and more often a pointer to an online device.
Understand the key aspect of IMC is that it encourages marketers to consider a variety of
communication tools and how they can be used to deliver messages about their company or
brands.
Understand that public relations generally has a broader objective than does publicity. Its
purpose is to establish and maintain a positive image of the company among its various publics.
Understand the definition of market positioning and the two approaches that can be taken to
achieve it consumer or competition.
Understand the process of developing a positioning strategy.
Learn the various approaches that can be used to position a brand and differentiate it from the
competition.
Understand the various marketing intermediaries and the role they play in the marketing process.
Understand the concepts of a push versus pull promotional strategy.

Last Updated:March 23, 2016

LMS SEGi education group

Its Googles World

The most powerful brand in the world

Its Googles World

Founded in 1998

Delivers relevant search results by favoring


pages linked to by other sites
Sells ads linked to search keywords
Annual revenue exceeds $10 billion

Keys to success

Simplicity
Speed
Accuracy

Google Adwords

Keyword-targeting advertising

Contextual ads

Text ads at top or side of search results


Advertisers compete for top spot
Cost is per click (CPC)
Appear on other relevant Web sites

Site-targeted

Generates sales and branding


Cost is per thousand impressions (CPM)

Google Rapidly Expanding

Beyond online search advertising

Automated purchase of radio ads


Magazine and newspaper ad-buying
YouTube
Google TV Ads
Partnership with Nielsen Media Research
New varieties of online ads

Rapidly Changing Media Environment

Increasingly difficult to target audiences &


communicate effectively

Consumers no longer passive recipients


They demand more than information
From a myriad of sources

Integrated Marketing Approach

Traditional mass media

Television, radio, magazines, newspapers,


billboards
Now drive consumers to Web sites

Online strategies

Provide detailed information


Be experiential, entertaining, interactive
MySpace, YouTube, Facebook, wireless
mobile media devices, e-mail

The New Look of Advertising

Interactive, Informative, Entertaining

Growth of Advertising and Promotion


Expenditure in Billions of Dollars

Advertising Outside
U.S.

2007
1980

U.S. Advertising

$0

$50

$100

$150

$200

$250

$300

$350

$400

What is Marketing?

An organizational function
Processes for creating,
communicating, and
delivering value to
customers
Managing customer
relationships in ways that
benefit the organization
and its stakeholders

Value
Value

Relationship
Relationship marketing
marketing

Mass
Mass customization
customization

Customer
Customer relationship
relationship
management
management (CRM)
(CRM)

The Scion Web Site

Consumers can now customize


the car they want to purchase

Marketing Mix

The four Ps
Product
Price
Place
Promotion

Coordinated Marketing Elements Build Image

Traditional Marketing Approach


Point of
purchase

Interactive
marketing

Special
events

Media
Advertising

Public
relations
Direct
marketing

Publicity

Sales
promotion

Packaging

Direct
response

Contemporary IMC Approach


Packaging

Sales
promotion

Point of
purchase
Publicity

Interactive
marketing

Media
Advertising

Direct
marketing

Direct
response

Public
relations

Special
events

Defining IMC
IMC
IMC isis aa strategic
strategic business
businessprocess
processused
used
to
toplan,
plan, develop,
develop, execute
execute and
and evaluate
evaluate
coordinated,
coordinated, measurable,
measurable, persuasive
persuasive brand
brand
communication
communication programs
programswith
withconsumers,
consumers,
customers,
customers, prospects
prospectsemployees
employeesand
andother
other
relevant
relevant external
external and
andinternal
internal audiences.
audiences.

The
The goal
goal of
ofIMC
IMCisisto
to generate
generate
short-term
financial
returns
short-term financial returnsand
and
build
long-term
brand
value.
build long-term brand value.

Contemporary Perspective of IMC

Recognized
Recognized as
as aa business
business process
process

IMC
IMC

Importance
of
audience
Multiple
relevant
audiences
Importance
of relevant
relevant
audience
Multiple
relevant
audiences
Demand
accountability
and
Demand for
for
accountability
and
Demand
for
accountability
Demand
for
accountability
measurement
of
outcomes
measurement of outcomes

Test Your Knowledge


Why are marketers decreasing the use of mass media
advertising and increasing the use of integrated marketing
communications?
A) The mass market has become fragmented.
B) New technologies have given consumers
greater control over the communication
process.
C) Use of the Internet and electronic
commerce is growing.
D) New global markets are emerging.
E) All of the above.

Growing Importance of IMC

Strategic integration of communications


functions

Avoids duplication
Synergy among promotional tools
More efficient and effective marketing

Rapidly changing environment

Consumers
Technology
Media

Behind the Growing Importance of IMC


From

Toward

Media
Media advertising
advertising

Multiple
Multiple forms
forms of
of communication
communication

Mass
Mass media
media

Specialized
Specialized media
media

Manufacturer
Manufacturer dominance
dominance

Retailer
Retailer dominance
dominance

General
General focus
focus

Data-based
Data-based marketing
marketing

Low
Low agency
agency accountability
accountability

Greater
Greater agency
agency accountability
accountability

Traditional
Traditional compensation
compensation

Performance-based
Performance-based compensation
compensation

Limited
Limited Internet
Internet availability
availability

Widespread
Widespread Internet
Internet availability
availability

The Role of IMC in Branding

Brand identity is a combination of

Name
Logo
Symbols
Design
Packaging
Performance
Image or associations

IMC plays a major role in


developing and sustaining
brand identity and equity

The Most Valuable Brands in the World


Rank

Brand

Brand Value
(Billions)

Coca-Cola

Microsoft

58.71

IBM

57.09

General Electric

51.57

Nokia

33.70

Toyota

32.07

Intel

30.95

McDonalds

29.39

Disney

29.21

Mercedes-Benz

23.57

10

$65.32

Finding New Ways to Build Brands

Consumers are driving the trend

They view brands as a form of


self-expression
They know more about brands and the
companies that make them
Cynicism about corporations is at an
all-time high
They seek and share information with other
consumers via the Internet

Finding New Ways to Build Brands

Get consumers involved

Apple Computer lets consumers test products


in store
Starbucks positions stores as a community
gathering place

Interaction can be the best marketing

MySpace
Facebook
Google

The Promotional Mix


Advertising
Advertising
Direct
Direct Marketing
Marketing
Interactive/
Interactive/
Internet
Internet Marketing
Marketing

Sales
Sales Promotion
Promotion
Publicity/Public
Publicity/Public
Relations
Relations

Personal
Personal Selling
Selling

Advertising

Paid forms of non-personal communication

About an organization, product, service, or


idea by an identified sponsor
No feedback from audience
Important for products and services aimed
at mass consumer markets
Cost effective

The Most Common Forms of Advertising


National
National Advertising
Advertising
Retail/Local
Retail/Local Advertising
Advertising

Consumers

Primary
Primary vs.
vs. Selective
Selective
Demand
Demand Advertising
Advertising

Business-to-Business
Business-to-Business Advertising
Advertising
Professional
Professional Advertising
Advertising
Trade
Trade Advertising
Advertising

Organizations

Direct Marketing
Direct
Direct
Mail
Mail
Direct
Direct
Response
Response
Advertising
Advertising

Internet
Internet
Sales
Sales

Direct
Direct
Marketing
Marketing
Shopping
Shopping
Channels
Channels

Telemarketing
Telemarketing
Catalogs
Catalogs

Bose Uses Direct Response Advertising

Includes call
for action.
Phone number,
mail-in form,
website address
provided.

Interactive/Internet Marketing

Back-and-forth communication

Users participate in and modify the form and


content of information
Happens in real time

Interactive media

Internet
CD-ROMs
Kiosks
Interactive television
Digital cell phones

Sales Promotion

*Click outside of the video screen to advance to the next slide

Using the Internet as an IMC Tool


The
The
Internet
Internet

Educates
Educates or
or
informs
informs
customers
customers

Obtains
Obtains
customer
customer
database
database
information
information

AA persuasive
persuasive
advertising
advertising
medium
medium

Communicates
Communicates
and
and interacts
interacts
with
with buyers
buyers

AA sales
sales tool
tool
or
or an
an actual
actual
sales
sales vehicle
vehicle

Provides
Provides
customer
customer
service
service and
and
support
support

Builds
Builds and
and
maintains
maintains
customer
customer
relationships
relationships

Sales Promotion
Coupons
Samples
Premiums

Trade Allowances

Contest/Sweepstake

POP Displays

Refunds/Rebates

Training Programs

Bonus Packs

Trade Shows

Loyalty Programs
Events

Coop Advertising

Consumer-oriented

Trade-oriented

[For end-users]

[For resellers]

Sales Promotion

Most of the promotional budget now goes to


sales promotion

Declining brand loyalty


Increased consumer sensitivity to deals
Larger and more powerful retailers are
demanding more trade promotion support

Test Your Knowledge


_____ is nonpersonal communication,
neither directly paid for nor run under,
identified sponsorship.
A)

Advertising

B)

Sales promotion

C)

Publicity

D)

Public relations

E)

Personal selling

Advertising Versus Publicity


Factor
Factor

Advertising
Advertising

Publicity
Publicity

Control
Control

Great
Great

Little
Little

Credibility
Credibility

Lower
Lower

Higher
Higher

Reach
Reach

Measurable
Measurable

Undetermined
Undetermined

Frequency
Frequency

Schedulable
Schedulable

Uncontrollable
Uncontrollable

Cost
Cost

High/Specific
High/Specific

Low/Unspecified
Low/Unspecified

Flexibility
Flexibility

High
High

Low
Low

Timing
Timing

Specifiable
Specifiable

Tentative
Tentative

Publicity Vehicles
Feature
Feature
Articles
Articles

News
News
Releases
Releases

Interviews
Interviews

Publicity
Publicity
Vehicles
Vehicles

Press
Press
Conferences
Conferences

Special
Special
Events
Events

Public Relations

Systematically planning and


distributing information in an attempt to
control and manage image and the nature
of the publicity received.

Public Relations Tools


Cause-related
Marketing
Publicity
Publicity
Vehicles
Vehicles

Special
Special
Publications
Publications

Community
Community
Activities
Activities

Corporate
Corporate
Advertising
Advertising

Public Affairs
Affairs
Public
Activities
Activities

Special
Special Event
Event
Sponsorship
Sponsorship

Personal Selling

Person-to-person communication

A seller attempts to assist and/or persuade


prospective buyers to make a purchase or act
on an idea

IMC Audience Contact Tools


Broadcast
Broadcast
media
media

Print
Print media
media

Public
Public
Relations/
Relations/
publicity
publicity

Internet/
Internet/
interactive
interactive

Direct
Direct
marketing
marketing

Out-of-home
Out-of-home
media
media

Target
Target Audience
Audience
Personal
Personal
selling
selling

Point-ofPoint-ofpurchase
purchase

Sales
Sales
Promotion
Promotion

Word-ofWord-ofmouth
mouth

Events
Events and
and
sponsorship
sponsorship

Product
Product
placements
placements

Test Your Knowledge

The _____ is a written document that


describes the overall marketing strategy
and programs developed for an
organization, product line, or brand.
A) promotional plan
B) marketing plan
C) communications plan
D) marketing audit
E) situation analysis

Last Updated:March 23, 2016

LMS SEGi education group

44

The IMC Planning Process

Developing an integrated marketing


communications plan requires
Planning
Executing
Evaluating
Controlling

Basic Elements of a Marketing Plan


1.
1. AA detailed
detailed situation
situation analysis
analysis

2.
2. Specific
Specific marketing
marketing objectives
objectives

3.
3. AA marketing
marketing strategy
strategy and
and program
program

4.
4. AA program
program for
for implementing
implementing the
the strategy
strategy

5.
5. AA process
process for
for monitoring
monitoring and
and evaluating
evaluating performance
performance

Model of
the IMC Planning Process
Review of marketing plan
Analysis of Promotional program situation
Analysis of communications process
Budget determination
Develop integrated marketing communications program
Advertising

Sales
promotion

PR/
publicity

Personal
selling

Direct
marketing

Develop objectives and strategy for each


Develop message, media strategy, and tactics
Integrate and implement marketing communications strategies
Monitor, evaluate and control IMC Program

Internet/
interactive

The Role of IMC in


the Marketing
Process
Last Updated:March 23, 2016

LMS SEGi education group

48

Under Armour Protects Its House

Under Armour Protects Its House

Keys to Under Armours success

Niche markets
Strong product positioning
Unique brand identity
Strong brand reputation

Marketing and Promotions Process Model


Opportunity
analysis

Identifying
markets

Product
decisions
Promotional
decisions

Competitive
analysis

Market
segmentation

Pricing
decisions

Channel-ofdistribution
decisions
Target
marketing

Advertising

Direct
marketing

Interactive
marketing

Selecting a
target market

Positioning
through
marketing
strategies

Sales
promotion
Publicity
and public
relations
Personal
selling

Promotion
to final
buyer

Internet/
Interactive

Promotion
to trade

Resellers
Purchase

Ultimate
consumer

Consumers

Businesses

Marketing to a Lifestyle

Padres Pitch to the Fans

*Click outside of the video screen to advance to the next slide

The Target Marketing Process

Identify
Identify markets
markets with
with unfulfilled
unfulfilled needs
needs
Determine
Determine market
market segmentation
segmentation
Select
Select market
market to
to target
target
Position
Position through
through marketing
marketing strategies
strategies

A Product for Every Market Segment

The Marketing Segmentation Process


Find
Find ways
ways to
to group
group consumers
consumers
according
according to
to their
their needs
needs
Find
Find ways
ways to
to group
group marketing
marketing actions
actions
available
available to
to the
the organization
organization
Develop
Develop aa market/product
market/product grid
grid to
to relate
relate the
the market
market
segments
segments to
to the
the firms
firms products
products and
and actions
actions
Select
Select the
the product
product segments
segments toward
toward which
which the
the
firm
firm will
will direct
direct its
its marketing
marketing actions
actions

Take
Take marketing
marketing actions
actions to
to reach
reach target
target segments
segments

What do NASCAR, Coors, and Unilever know?

Bases for Segmentation


Psychographic
Psychographic

Demographic
Demographic

Customer
Customer
Characteristics
Characteristics
Socioeconomic
Socioeconomic

Geographic
Geographic

Behavior
Behavior

Usage
Usage

Outlet
Outlet Type
Type
Buying
Buying
Situation
Situation

Awareness
Awareness

Benefits
Benefits

Geographic Marketing

Demographic Segmentation

Psychographic Segmentation

Dividing the market on the basis of

Personality
Values
Lifestyle

VALS lifestyle segmentation

Eight lifestyles with distinctive attitudes,


behaviors, and decision-making patterns
Combined with estimate of the resources
on which the consumer can draw

Behavioristic Segmentation

Usage
Buying
Responses

Loyalties

Benefit Segmentation

PRIZM Cluster Profiles


HIGH

LOW

Test Your Knowledge

The key factor in communicating information about


a brand and differentiating it from competitors is:
A) Its perceived price differential
B) Its integrated promotional strategy
C) The market positioning strategy assigned
it by the manufacturer
D) Its distribution intensity
E) The benefits the brand offers

Selecting a Target Market


Determine how many
segments to enter
Determine which segments
have the greatest potential

Market Positioning
Fitting the product or service to one or more segments of the
broad market in such a way
as to set it apart from the competition

Developing a Positioning Strategy


What
What position
position do
do
we
we have
have now?
now?
Does
Does our
our creative
creative
strategy
strategy
match
match it?
it?

What
What position
position do
do
we
we want
want to
to own?
own?

The
The
Position
Position
Do
Do we
we have
have the
the
tenacity
tenacity to
to stay
stay
with
with it?
it?

From
From whom
whom must
must
we
we win
win this
this
position?
position?
Do
Do we
we have
have the
the
money
money to
to do
do the
the
job?
job?

Positioning Strategies
How should
we position?

Attributes
Attributes and
and Benefits?
Benefits?
Price
Price or
or Quality?
Quality?
Use
Use or
or Application?
Application?
Product
Product Class?
Class?
Product
Product User?
User?
Competitor?
Competitor?
Cultural
Cultural Symbols?
Symbols?

Positioning by Use or Application

Developing a Positioning Platform


1.
1.

Identify
Identify the
the competitors
competitors

2.
2.

Assess
Assess perceptions
perceptions of
of them
them

3.
3.

Determine
Determine their
their positions
positions

4.
4.

Analyze
Analyze consumer
consumer preferences
preferences

5.
5.

Make
Make the
the positioning
positioning decision
decision

6.
6.

Monitor
Monitor the
the position
position

Making the Positioning Decision


Is
Is the
the current
current
position
position strategy
strategy
working?
working?

Is
Is the
the segmentation
segmentation
strategy
strategy
appropriate?
appropriate?

The
The
Checklist
Checklist

How
How strong
strong is
is the
the
competition?
competition?

Are
Are there
there sufficient
sufficient
resources
resources to
to
communicate
communicate the
the
position?
position?

Advertising Develops Brand Image

Branding and Product Names

Brand names often communicate


attributes and meaning

Safeguard
I Cant Believe Its Not Butter!
Easy-Off
Arrid
Spic and Span

Branding and Packaging Are Linked


Product
Product Decisions
Decisions
BRANDING
BRANDING

Brand
Brand
name
name
communcommunicates
icates
attributes
attributes
and
and
meaning
meaning

Advertising
Advertising
creates
creates and
and
maintains
maintains
brand
brand
equity
equity

PACKAGING
PACKAGING

Has
Has become
become
increasingly
increasingly
important
important

Often
Often
customers
customers
first
first
exposure
exposure to
to
product
product

A Package is More than a Container

Pricing Decisions
What
What consumers
consumers give
give
up
up to
to purchase
purchase aa
product
product or
or service
service

Factors
Factors the
the firm
firm must
must
consider
consider

Costs
Costs
Demand
Demand

Price
Price Variable
Variable

Time
Time

Mental
Mental activity
activity

Competition
Competition
Perceived
Perceived value
value

Behavioral
Behavioral effort
effort

Relating Price to Ads and Promotion


Pricing
Pricing
Considerations
Considerations

Price
Price must
must be
be consistent
consistent with
with
perceptions
perceptions of
of the
the product
product
Higher
Higher prices
prices communicate
communicate higher
higher
product
product quality
quality
Lower
Lower prices
prices reflect
reflect bargain
bargain or
or
value
value perceptions
perceptions
Price,
Price, advertising
advertising and
and distribution
distribution be
be
unified
unified in
in
identifying
identifying product
product position
position
AA product
product positioned
positioned as
as high
high quality
quality
while
while carrying
carrying aa lower
lower price
price than
than
competitors
competitors will
will confuse
confuse customers
customers

When Price is Not an Issue

Distribution Channel Decisions


Selecting
Selecting

Distribution
Distribution
Channel
Channel
Decisions
Decisions

Managing
Managing

Motivating
Motivating

Distribution Intermediaries
Brokers
Brokers

Distribution
Distribution
Channel
Channel
Intermediaries
Intermediaries

Distributors
Distributors

Wholesalers
Wholesalers

Retailers
Retailers

Promotional Strategy: Push or Pull?


Push
Push Policy
Policy

Pull
Pull Policy
Policy

Producer
Producer

Producer
Producer

Wholesaler
Wholesaler

Wholesaler
Wholesaler

Retailer
Retailer

Retailer
Retailer

Consumer
Consumer

Consumer
Consumer
Information Flow

Test Your Knowledge

An ad in a publication aimed at veterinarians explains why they


should recommend Eukanuba cat food to the owners of the cats
they treat. This is an example of:
A) Consumer advertising
B) A promotional pull strategy
C) A harvesting strategy
D) A consumer promotion
E) A promotional push strategy

TUTORIAL

You plan to draft your assignment


following the chapter 1 marketing process,
outline the structure of your content .

Last Updated:March 23, 2016

LMS SEGi education group

84

PROMOTIONAL
MANAGEMENT
2. ROLE OF ADV AGENCY
JUNE-AUG 2015

On completion of these chapters you


should be able to:

Understand the role of creative boutiques in planning an IMC program.


Analyse the role of media buying services.
Analyse how advertising agencies are compensated for their work.
Understand the agency evaluation, which is often done on a subjective, informal
basis, particularly in smaller companies where ad budgets are low or advertising is
not seen as a critical factors in the firms marketing performance.
Outline the reasons why/how an agency loses clients.
Understand the various ways an agency can gain new business.
Understand about how agencies can use ingenuity to win awards, and how winning
award brings clients.
Analyze the role of sales promotion agencies.
Understands the services provided by public relations firms.
Outline the role of interactive agencies.
Understand the marketing research agency as a collateral service in the promotional
process.
Analyze type of website that would be developed by an interactive ad agency.

Last Updated:March 23, 2016

LMS SEGi education group

86

Participants in the IMC Process

Advertiser
Advertiser (Client)
(Client)
Advertising
Advertising agency
agency
Media
Media organizations
organizations

Marketing
Marketing
communications
communications
specialist
specialist
organizations
organizations
Collateral
Collateral services
services

DirectDirectresponse
response
agencies
agencies

Sales
Sales
promotion
promotion
agencies
agencies

Public
Public
relations
relations
firms
firms

Interactive
Interactive
agencies
agencies

Organizing for Advertising and Promotion

The way a company (the client) organizes


depends on

Its size
The number of products it markets
The role of advertising and promotion in the
marketing mix
The budget
Its marketing organization structure

Advertising Dept. Under Centralized System

President
President

Production
Production

Finance
Finance

Marketing
Marketing
research
research

Marketing
Marketing

Advertising
Advertising Sales
Sales

Research
Research
and
and
developdevelopment
ment

Human
Human
resources
resources

Product
Product
planning
planning

Pros & Cons of a Centralized System


+ Positive

- Negative

Better
Better
communications
communications
Fewer
Fewer
personnel
personnel

Less
Less goal
goal
involvement
involvement

The
The
Centralized
Centralized
System
System

Longer
Longer
response
response time
time

Continuity
Continuity

More
More top
top
management
management
involvement
involvement

Impractical
Impractical for
for
multiple
multiple brands,
brands,
products,
products, divisions
divisions

Decentralized Advertising System


Corporate
Production

Finance

Sales

Marketing

R&D

Product
Management
Brand
Manager
Ad agency
Brand
Manager
Ad agency

Human
Resources
Marketing
services

Advertising
Dept

Marketing
Research

Sales promotion
Package design
Merchandising

Pros & Cons of Decentralization


+ Positive

- Negative
Ineffective
Ineffective
decision
decision making
making

Concentrated
Concentrated
attention
attention

Rapid
Rapid problem
problem
response
response

Increased
Increased
flexibility
flexibility

The
The
Decentralized
Decentralized
System
System

Internal
Internal conflicts
conflicts

Unequal
Unequal
distribution
distribution
of
of funds
funds

Lack
Lack of
of
Authority
Authority

Test Your Knowledge


A major reason why some companies choose to use an in-house
agency is to:
A) Maintain creative freshness
B) Reduce advertising and promotions costs
C) Better understand how advertising works
D) Win advertising awards that will enhance
the image of their brands
E) Do all of the above

In-House Agencies

Benettons in-house agency works with


outside agencies to develop ads

Pros & Cons of In-House Agencies


+ Positive

- Negative

Cost
Cost
savings
savings

More
More
control
control

Better
Better
coordination
coordination

Less
Less
experience
experience

The
The
In-house
In-house
Agency
Agency

Less
Less
objectivity
objectivity

Less
Less
flexibility
flexibility

The Ad Agencys Role

Reasons for using an ad agency

Highly skilled specialists


Specialization in a particular industry
Objective viewpoint of the market
Broad range of experience

Ad Agencies Have Skilled Specialists

Artists
Artists

Writers
Writers

Researchers
Researchers

Photographers
Photographers

Media
Media Analysts
Analysts

Other
Other Skills
Skills

Full-Service Agencies
Planning
Planning
advertising
advertising
Creating
Creating
advertising
advertising
Producing
Producing
advertising
advertising

Full
Full range
range of
of
marketing
marketing
communication
communication
and
and promotion
promotion
services
services

Direct
Direct marketing
marketing

Selecting
Selecting media
media

Interactive
Interactive
capabilities
capabilities

Strategic
Strategic market
market
planning
planning
Sales
Sales
promotions
promotions

Performing
Performing
research
research

Nonadvertising
Nonadvertising
services
services

Package
Package design
design
Public
Public relations
relations
and
and publicity
publicity

Typical Full-Service Agency Organization


Board of
directors
President
VP creative
services

VP account
services
Print
production

Writers

Art directors

TV
production

Traffic

VP marketing
services

Media
Account
supervision

VP management
and finance

Sales
Promotion

Research

Office
management

Account
Executive

Finance

Accounting
Personnel

Services Provided by Agencies


Agency
Agency Services
Services
Account
Account
Services
Services

The
The link
link
between
between
agency
agencyand
and
client
client
Managed
Managed by
by
the
account
the account
executive
executive

Marketing
Marketing
Services
Services

Research
Research
department
department
May
Mayinclude
include
account
account
planners
planners
Media
Media dept.
dept.
obtains
obtains
media
media
space,
space, time
time

Creative
Creative
Services
Services

Creation,
Creation,
execution
execution of
of
ads
ads
Copywriter
Copywriter
artists,
artists, other
other
specialists
specialists

Mgmt
Mgmt &
&
Finance
Finance

Accounting
Accounting
Finance
Finance
Human
Human
resources
resources
New
New
business
business
generation
generation

The Role of Creative Boutiques

Creative
Creative
Boutiques
Boutiques

Provide
Provide only
only creative
creative services
services

Full-service
Full-service agencies
agencies may
may
subcontract
subcontract with
with creative
creative
boutiques
boutiques

Ability
Ability to
to turn
turn out
out inventive
inventive
creative
creative work
work quickly
quickly

Media Buying Can be Specialized

Media
Media
Specialist
Specialist
Companies
Companies

Specialize
Specialize in
in buying
buying media,
media,
especially
especially broadcast
broadcast time
time

Agencies
Agencies and
and clients
clients develop
develop
media
media strategy
strategy

Media
Media buying
buying organizations
organizations
implement
implement the
the strategy
strategy and
and
buy
buy time
time and
and space
space

Test Your Knowledge


Which of the following statements about changes in the way
advertising agencies are being compensated is true?
A) Most clients do not pay full commissions to
their agencies because they prefer fee- or
incentive-based systems.
B) From the viewpoints of both the client and the agency,
the traditional commission system is superior to
negotiated commissions.
C) Most clients want their agencies to be in total charge
of the integrated marketing communications process,
so they prefer to compensate them based on media
commissions.
D) Statements A, B, and C are all true.

Methods of Agency Compensation

Commissions
Commissions
from
from media
media

Compensation
Compensation
Methods
Methods

Fee,
Fee, cost,
cost, and
and incentiveincentivebased
based systems
systems

Percentage
Percentage
charges
charges

Evaluating Agencies

Financial
Audit

Qualitative
Audit

Verify costs, expenses

Planning

Personnel hours charged

Program development

Payments to media

Implementation

Payments to suppliers

Results achieved

Top Agency Value-Add Activities

New media
guidance,
solutions

Brand
driver
evaluation

Talented
people

Integrated
disciplines
& functions
Creative
ideas

Collaboration

Ideas/programs
for multi comm.
programs

Loyalty to a Single Agency

Young & Rubicam


has handled the
Dr Pepper
account for
over 30 years

Why Agencies Lose Clients


Poor
performance

Declining
sales

Personnel
changes

Poor
communications

Payment
conflicts

Changes
in size of client
or agency

Unrealistic
Client demands

Policy Changes

Conflicts of
interest

Policy Changes

Change in
clients strategy

Personality
conflicts

How Agencies Gain Clients

Referrals
Referrals

Presentations
Presentations

Solicitations
Solicitations

Public
Public Relations
Relations

Image,
Image, Reputation
Reputation

The Hottest Agency in the Ad Business

Direct-Marketing Agency Activities

Database
Database
management
management

DirectDirectMarketing
Marketing
Agencies
Agencies

Direct
Direct
mail
mail

Research
Research

Media
Media services
services

Creative
Creative
Database
Database
development,
development,
management
management

Production
Production

Direct-Marketing Agency

Departments in a typical direct-marketing


agency

Account management
Creative
Media
Database development and management

Sales Promotion Agencies


Promotional
Promotional planning
planning
Creative
Creative research
research
Tie-in
Tie-in coordination
coordination
Fulfillment
Fulfillment
Premium
Premium design
design and
and
manufacturing
manufacturing
Catalog
Catalog production
production
Contest/sweepstakes
Contest/sweepstakes
management
management

Functions Performed by Public Relations Firms

Strategy
development

Public
affairs

Special events

Generating
publicity

News releases,
communication

Managing
crises

Research

Coordination
with promotional
areas

Lobbying

Functions Performed by Interactive Agencies

Web
Web
banner
banner ads
ads

CD-ROMs
CD-ROMs
Interactive
Interactive
Media
Media Creation
Creation

Web
Web sites
sites
Kiosks
Kiosks

Search
Search engine
engine
optimization
optimization

Text
Text messages
messages

Website for the California Milk Advisory Board

Marketing Research Companies

Help
Help clients
clients underunderstand
stand target
target audience
audience

Qualitative
Qualitative research
research

Quantitative
Quantitative studies
studies

Pros and Cons of Integrated Services


+ Positive

- Negative

Greater
Greater synergy
synergy

Convenience
Convenience

Single
Single image
image for
for
product
product or
or service
service

Budget
Budget politics
politics

Integrated
Integrated
Services
Services

Poor
Poor
communication
communication

No
No synergy
synergy

Test Your Knowledge


Marketing executives say the biggest obstacle to implementing
IMC is:
A) Lack of management support
B) Insufficient budgets
C) Lack of people with the right perspective
and skills
D) Inexperienced ad agencies

Obstacles to Implementing IMC

Key obstacles

Lack of people with the broad perspective and


skills to make it work
Internal turf battles
Agency egos
Fear of budget reductions
Ensuring consistent execution
Measuring success
Compensation

TUTORIAL
1.

2.

3.

4.

5.

List all IMC


Participants
Why company
refuse to apply IMC
in their organization.
Explain adv of
implementing IMC in
your organization
How to compensate
agency

Last Updated:March 23, 2016

6.

7.

8.

Why agency loose


client
How agency can
gain clients
Discuss all type of
adv agency
Write a short note on
the following

LMS SEGi education group

Creative boutique
Full services/
integrated
Media specialist
company
121

PROMOTIONAL
MANAGEMENT
3. COMMUNICATION PROCESS
JUNE-AUG

2015

The Nature of Communication

The communication process is complex, and often unsuccessful

Source Encoding

Forms of Encoding

Verbal
Verbal
Spoken
Spoken

Word
Word

Written
Written

Word
Word

Song
Song

Lyrics
Lyrics

Graphic
Graphic
Pictures
Pictures
Drawings
Drawings
Charts
Charts

Musical
Musical

Animation
Animation

ArrangeArrange-

Action/
Action/

InstrumInstrum-

Pace/
Pace/

Voices
Voices

Shape/
Shape/

ment
ment

entation
entation

Motion
Motion
Speed
Speed
Form
Form

The Semiotic Perspective

Object
Object

Interpretant
Interpretant

Sign/Symbol
Sign/Symbol

An Image Can Convey More Than Words

What is the symbolic meaning of this Levi ad?


The Model

The Clothes

The Setting
The Statement
The Tag Line

Communication Channel

Personal
Personal
Channels
Channels

Word of
Mouth

Nonpersonal
Nonpersonal
Channels
Channels

Personal
Selling

Print
Media

Broadcast
Media

Marketers Embrace Buzz Marketing

Apples for Dessert

Field of Experience Overlap


Different Worlds

Sender
Sender
Experience
Experience

Receiver
Receiver
Experience
Experience
Moderate Commonality

Sender
Sender
Experience
Experience

Receiver
Receiver
Experience
Experience

High Commonality

Receiver
Receiver
Sender
Sender
Experience
Experience
Experience
Experience

Receiver
Experience

Noise

Successful Communication
Select
Select an
an appropriate
appropriate source
source

Develop
Develop aa properly
properly encoded
encoded message
message

Select
Select appropriate
appropriate channel
channel for
for target
target audience
audience

Receive
Receive feedback
feedback

Identifying the Target Audience

Mass Markets and Audiences


Markets Segments
Niche Markets
Individual
and Group
Audiences

Connecting on an Emotional Level

Cognitive Response

AA method
method for
for examining
examining consumers
consumerscognitive
cognitive
processing
processing of
of advertising
advertising messages
messages by
by looking
looking at
at
their
their cognitive
cognitive responses
responses to
to hearing,
hearing, viewing,
viewing, or
or
reading
reading communications
communications
Examines
Examines thoughts
thoughts that
that are
are evoked
evoked
by
by an
an advertising
advertising message
message
Consumers
Consumers write
write down
down or
or verbally
verbally report
report
their
their reactions
reactions to
to aa message
message

A Model of Cognitive Response

Cognitive Response Categories


Product/Message
Product/Message Thoughts
Thoughts
Counterarguments
Counterarguments

Support
Support arguments
arguments

Source-Oriented
Source-Oriented Thoughts
Thoughts
Source
Source derogation
derogation

Source
Source bolstering
bolstering

Ad
Ad Execution
Execution Thoughts
Thoughts
Thoughts
Thoughts about
about
the
the ad
ad itself
itself

Affect
Affect attitude
attitude
toward
toward the
the ad
ad

Elaboration Likelihood Model


Focuses
Focuses on
on the
the way
way consumers
consumers respond
respond to
to persuasive
persuasive
messages,
messages, based
based on
on the
the amount
amount and
and nature
nature of
of elaboration
elaboration
or
or processing
processing of
of information
information
Routes to attitude change

Central
Central route
route
ability
ability and
and
motivation
motivation to
to process
process
aa message
message is
is high
high and
and
close
close attention
attention is
is paid
paid
to
to message
message content
content

Peripheral
Peripheral route
route
ability
ability and
and
motivation
motivation to
to process
process
aa message
message is
is low;
low;
receiver
receiver focuses
focuses more
more
on
on peripheral
peripheral cues
cues
than
than on
on message
message
content
content

Test Your Knowledge


The elaboration likelihood model (ELM) states that there are two
routes to persuasion, the central route and the peripheral route. With
the peripheral route:
A) The message is more likely to be received
if a celebrity endorser is used
B) The message should lots of information
C) The receiver is viewed as very actively
involved in the communication process
D) The quality of the message claims are
more important than the spokesperson,
headline, pictures, or music bed
E) The sender is dealing with a highinvolvement buying situation

Celebrity Endorsers Can Be Peripheral Cues

How Advertising Works

Promotional Planning Elements

Promotional
Promotional Planning
Planning

Receiver
Receiver
Comprehension
Comprehension

Channel
Channel
Presentation
Presentation

Message
Message
Yielding
Yielding

Source
Source
Attention
Attention

Can
Can the
the
receiver
receiver
comprehend
comprehend
the
the ad?
ad?

Which
Which media
media
will
will increase
increase
presentation?
presentation?

What
What type
type of
of
message
message will
will
create
create
favorable
favorable
attitudes?
attitudes?

Who
Who will
will be
be
effective
effective in
in
getting
getting
consumers
consumers
attention?
attention?

A Direct Source

Source Attributes Receiver Processing Modes

Source Credibility

Ethical
Ethical
Knowledgeable
Knowledgeable

Skillful
Skillful

Trustworthy
Trustworthy

Source
Source

Believable
Believable

Experienced
Experienced

Unbiased
Unbiased
Honest
Honest

Experts Lend Authority to an Appeal

Corporate Leaders as Spokespeople

*Click outside of the video screen to advance to the next slide

Limitations of Credible Sources

High- and low-credibility sources

Equally effective when arguing for a position


opposing their own best interest

Sleeper effect

Persuasiveness increases over time

Source Attractiveness

Similarity
Similarity
Resemblance
Resemblance
between
between the
the
source
source and
and
recipient
recipient of
of the
the
message
message

Familiarity
Familiarity
Knowledge
Knowledge of
of the
the
source
source through
through
repeated
repeated or
or
prolonged
prolonged
exposure
exposure

Likeability
Likeability
Affection
Affection for
for the
the
source
source resulting
resulting
from
from physical
physical
appearance,
appearance,
behavior,
behavior, or
or
personal
personal traits
traits

Top Celebrity Endorsers


Top Male Endorsers
Tiger Woods
Michael Jordan
David Beckham
Lance Armstrong
Top Female Endorsers
Maria Sharapova
Jennifer Lopez
Jessica Simpson
Venus/Serena Williams
Annika Sorenstram

Test Your Knowledge


The use of celebrities in commercials is generally based on the
source characteristics of _____ and represents an attempt to induce
persuasion through the ______ process.
A) expertise; yielding
B) expertise; identification
C) power; identification
D) attractiveness; identification
E) attractiveness; internalization

Advertising Risks of Using Celebrities


The
The celebrity
celebrity may
may overshadow
overshadow
the
the product
product being
being endorsed
endorsed

The
The celebrity
celebrity may
may be
be overexposed,
overexposed,
reducing
reducing his
his or
or her
her credibility
credibility

The
The target
target audience
audience may
may not
not be
be
receptive
receptive to
to celebrity
celebrity endorsers
endorsers

The
The celebritys
celebritys behavior
behavior may
may pose
pose
aa risk
risk to
to the
the company
company

Endorser Traits

Meaning Movement & the Endorsement Process

Energy & Power The Athlete and the Product

Yao Ming is a Popular Endorser in China

Choosing a Celebrity Endorser

Match
Match w/audience
w/audience

Trust
Trust

Match
Match w/product
w/product

Risk
Risk
Factors

Image
Image

Familiarity
Familiarity

Cost
Cost

Likability
Likability

Familiarity and Appeal- THE SCIENTIFIC APPROACH

Q-scores

% of those who say one of my favorites


divided by % who have heard of him/her

Sports stars average 17; performers 18

Broken down by demographic criteria

Fame index database

10,000 celebrities rated by 250 criteria

Age, sex, residence, career highlights, charity


affiliations, fears, interests, additions, etc.

Applying Likability: Decorative Models

Source Power

Perceived
Perceived
control
control

Perceived
Perceived
concern
concern

Compliance
Compliance

Perceived
Perceived
scrutiny
scrutiny

Source power depends on several


factors:

1.

2.

The source must be perceived as being able to


administer positive or negative sanctions to the receiver
(perceived control)
The receiver must think the source cares about whether
or not the receiver conforms (perceived concern).
The receivers estimate of the sources ability to observe
conformity is also important (perceived scrutiny).
When a receiver perceives a source as having power,
influence occurs through a process known as
compliance. The receiver accepts the persuasive
influence of the source and acquiesces to his or her
position in hopes of obtaining a favorable reaction or
avoiding punishment.

Last Updated:March 23, 2016

LMS SEGi education group

163

Source Power

Message Structure

Recall

Order of Presentation

Beginning

Middle

End

COMMUNICATION TECHNIQUE

Conclusion Drawing

Message Sidedness

Refutation- TWO SIDE MESSAGE

Verbal vs. Visual Messages

Test Your Knowledge


The campaign centered around the theme Pork, the Other White
Meat is designed to show consumers that pork is as lean as
chicken. Ads in this campaign use:
A) Conclusion drawing
B) A fear appeal
C) A refutational appeal
D) A humorous appeal
E) An affective conclusion

Message Appeal Choices

Appeal
Appeal to
to the
the logical,
logical,
rational
rational minds
minds of
of
consumers
consumers

Appeal
Appeal to
to both
both

Appeal
Appeal to
to the
the feelings
feelings
and
and emotions
emotions of
of
consumers
consumers

Message Appeal Options


Comparative
Comparative
Ads
Ads
Especially
Especially

useful
useful for
for new
new
brands
brands

Often
Often used
used for
for
brands
brands with
with
small
small market
market
share
share

Used
Used often
often in
in
political
political
advertising
advertising

Fear
Fear
Appeals
Appeals
May
May stress
stress

physical
physical danger
danger
or
or threats
threats to
to
health
health

May
May identify
identify

social
social threats
threats

Can
Can backfire
backfire ifif
level
level of
of threat
threat
is
is too
too high
high

Humor
Humor
Appeals
Appeals
Can
Can attract
attract and
and
hold
hold attention
attention

Often
Often the
the best
best
remembered
remembered

Put
Put consumers
consumers
in
in aa positive
positive
mood
mood

Miller Lites Comparative Advertising

Fear Appeals and Message Acceptance

Protection Motivation
Dangers of
Hepatitis A

Havrix
vaccination

Humor Appeals
Pros

Cons

Aids
Aids attention
attention and
and
awareness
awareness

Does
Does not
not aid
aid persuasion
persuasion in
in
general
general

May
May aid
aid retention
retention of
of the
the
message
message

May
May harm
harm recall
recall and
and
comprehension
comprehension

Creates
Creates aa positive
positive mood
mood
and
and enhances
enhances persuasion
persuasion

May
May harm
harm complex
complex copy
copy
registration
registration

May
May aid
aid name
name and
and simple
simple
copy
copy registration
registration

Does
Does not
not aid
aid source
source
credibility
credibility

May
May serve
serve as
as aa distracter,
distracter,
reducing
reducing counterarguing
counterarguing

Is
Is not
not effective
effective in
in bringing
bringing
about
about sales
sales
May
May wear
wear out
out faster
faster than
than
non-humorous
non-humorous ads
ads

Humor in Print Media

Test Your Knowledge

An ad for Snorestop Extinguisher, a nose spray for eliminating


snoring, has the headline, Wife shoots husband and rests in
peace. This ad uses _____ to attract attention and convey a key
selling point.
A) a two-sided message approach
B) a humor appeal
C) comparative advertising
D) a refutational appeal
E) a primacy appeal

Channel Factors

Personal
Personal
Flexible
Flexible

Nonpersonal
Nonpersonal

No
No personal
personal
contact
contact

Geared
Geared to
to aa
large
large audience
audience

Static
Static

Powerful
Powerful
Real
Real time
time

Differences in Information Processing


Self-Paced
Self-Paced
Media
Media

Externally
Externally
Paced
Paced Media
Media

Newspapers
Newspapers
Magazines
Magazines
Direct Mail
Direct Mail
Internet
Internet

Radio
Radio

vs.

Television
Television

Context and Environment

Clutter

Clutter is the amount of advertising in a medium. For


television, clutter includes all the nonprogram material that
appears in the broadcast environment commercials,
promotional messages for shows, public service
announcements (PSAs), and the like.
Clutter is of increasing concern to advertisers because there
are so many messages competing for the consumers
attention. On average, one fourth of a broadcast hour on TV is
devoted to commercials; radio stations carry an average of
10-12 minutes of commercials per hour.
And, commercials have dropped in length from 60 seconds, to
30 seconds, to 15 seconds. That means many more
commercials are now being shown. A viewer watching three
hours of prime-time programming on the major networks
could be subjected to as many as 100 commercial messages.

Last Updated:March 23, 2016

LMS SEGi education group

183

SUMMARY
1.
2.
3.

4.
5.
6.
7.

DEF
COM PROCESS
SOURCE POWER/ CREDIBILITYENDORCER/ SCIENTIFIC APPROACH /
MESSAGE STRATEGIES
TRADITIONAL COM APPROACH AIDA
FCB GRID
CLUTTER

Last Updated:March 23, 2016

LMS SEGi education group

184

TUTORIAL
1.

2.
3.
4.
5.
6.
7.
8.

How FCB grid can be applied as marketing


strategy
Explain FCB Grid
What is the limitation of FCB grid
Explain forms of encoding
How can we minimize clutter in our A&P efforts.
Explain Channel
Explain Source
Describe credibility in A&P

Last Updated:March 23, 2016

LMS SEGi education group

185

PROMOTIONAL
MANAGEMENT
4. OBJECTIVES AND BUDGET
SETTING
JUNE-AUG

2015

Value of Objectives

Objectives
Objectives

Focus
Focus &
&
Coordination
Coordination
Plans
Plans &
&
Decisions
Decisions
Measurement
Measurement
&
& Control
Control

Characteristics of Objectives
Attainable
Attainable

Realistic
Realistic

Measurable
Measurable
Objectives
Objectives

Not
Not Mutually
Mutually
Exclusive
Exclusive

Specific
Specific

Advertising Can Shape Corporate Images

Marketing Versus Communications Objectives


Marketing
Marketing
Objectives
Objectives

Communications
Communications
Objectives
Objectives

Generally stated in the


Generally stated in the

firms
firms marketing
marketing plan
plan
Achieved through the
Achieved through the
overall
overall marketing
marketing plan
plan
Quantifiable, such as
Quantifiable, such as
sales,
sales, market
market share,
share, ROI
ROI
To be accomplished in a
To be accomplished in a
given
given period
period of
of time
time
Must be realistic and
Must be realistic and
attainable
attainable to
to be
be effective
effective

Derived from the overall


Derived from the overall

Vs.

marketing
marketing plan
plan
More narrow than
More narrow than
marketing
marketing objectives
objectives
Based on particular
Based on particular
communications
communications tasks
tasks
Designed to deliver
Designed to deliver
appropriate
appropriate messages
messages
Focused on a specific
Focused on a specific
target
target audience
audience

Many Different Factors Affect Sales

$
$ALE
ALE$
$

Promotion
Promotion

Distribution
Distribution

Product
Product
Competition
Competition Quality
Quality

Technology
Technology

Price
Price Policy
Policy

The
The
Economy
Economy

Sales As Advertising Objectives

Direct Response Ads Seek Sales

Many Ads Seek Communications Objectives

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Advertising and Movement Toward Action


Conative
Realm of motives.
Ads stimulate or
direct desires.

Affective
Realm of emotions.
Ads change attitudes
and feelings

Purchase
Conviction
Preference
Liking
Knowledge

Cognitive
Realm of thoughts.
Ads provide
information and facts.
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Awareness

Point of purchase
Retail store ads, Deals
Last-chance offers
Price appeals, Testimonials

Competitive ads
Argumentative copy
Image copy
Status, glamour appeals
Announcements
Descriptive copy
Classified ads
Slogans, jingles, skywriting
Teaser campaigns

Image Ads Can Have a Strong


Effect on Preference

5% Use
20% Trial

25% Preference
40% Liking

Co
g

ni

t iv

Aff
e

ct
iv

Co

na
tiv

Pyramid of Communications Effects

70% Knowledge
90% Awareness

The DAGMAR Approach

Define
Advertising
Goals for
Measuring
Advertising
Results
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

DAGMAR Difficulties
Legitimate
Legitimate Problems
Problems
Attitude
Attitude -- Behavior
Behavior
Relationship
Relationship

Response
Response Hierarchy
Hierarchy
Problems
Problems

Questionable
Questionable Objections
Objections

Sales
Sales Objectives
Objectives
Needed
Needed

Costly
Costly and
and
Impractical
Impractical

Inhibits
Inhibits Creativity
Creativity

Advertising-Based View of Communications


Advertising Through Media

Acting on Consumers

Balancing Objectives and Budgets

What were
willing and
able to
spend

Dollars

What we need
to achieve our
objectives

Goals

Marginal Analysis

Sales in $

Sales

Gross Margin

Ad. Expenditure

Profit
Point A
Advertising / Promotion in $

BASIC Principle of Marginal Analysis

Increase
Increase Spending
Spending

IfIf the
the increased
increased cost
cost is
is less
less than
than the
the
incremental
incremental (marginal)
(marginal) return
return

Hold
Hold
Spending
Spending

IfIf the
the increased
increased cost
cost is
is equal
equal to
to the
the
incremental
incremental (marginal)
(marginal) return.
return.

Decrease
Decrease Spending
Spending

IfIf the
the increased
increased cost
cost is
is more
more than
than
the
the incremental
incremental (marginal)
(marginal) return
return

Assumptions for Marginal Analysis


Sales are the
result of
advertising and
promotion, and
nothing else

Sales are the


principal
objective of
advertising
and promotion

Advertising Sales/Response Functions

Advertising Expenditures

Initial Spending
Little Effect

Middle Level
High Effect

High Spending
Little Effect

B. S-Shaped
Response
Function
Incremental Sales

Incremental Sales

A. ConcaveDownward
Response Curve

Range A

Range B

Range C

Advertising Expenditures

Top-Down Budgeting

Top
Top Management
Management Sets
Sets the
the Spending
Spending Limit
Limit

The
The Promotion
Promotion Budget
Budget Is
Is Set
Set to
to Stay
Stay Within
Within
the
the Spending
Spending Limit
Limit

Top-Down Budgeting Methods


Competitive
Competitive
Parity
Parity

Arbitrary
Arbitrary
Allocation
Allocation

Top
Top
Management
Management

Return
Return on
on
Investment
Investment

Percentage
Percentage
of
of Sales
Sales

Affordable
Affordable
Method
Method

Bottom-Up Budgeting
Total
Total Budget
Budget Is
Is Approved
Approved by
by
Top
Top Management
Management

Cost
Cost of
of Activities
Activities are
are Budgeted
Budgeted

Activities
Activities to
to Achieve
Achieve Objectives
Objectives
Are
Are Planned
Planned

Promotional
Promotional Objectives
Objectives Are
Are Set
Set

Objective and Task Method

Establish
Establish Objectives
Objectives
(create
(create awareness
awareness of
of new
new product
product among
among
20
20 percent
percent of
of target
target market)
market)

Determine
Determine Specific
Specific Tasks
Tasks
(advertise
(advertise on
on market
market area
area television
television and
and
radio
radio and
and local
local newspapers)
newspapers)

Estimate
Estimate Costs
Costs Associated
Associated with
with Tasks
Tasks
(determine
(determine costs
costs of
of advertising,
advertising,
promotions,
promotions, etc)
etc)

Are There Economies of Scale?


Proposition I
Larger firms can support their brands with lower relative
advertising costs than smaller firms.
No evidence to support this!

Proposition II
The leading brand in a product group enjoys lower advertising
costs per sales dollar than do other brands.
No evidence to support this!

Proposition III
There is a static relationship between advertising costs per
dollar of sales and the size of the advertiser.
No evidence to support this!

High
Low

Competitors
Share of Voice

Ad Spending and Share of Voice

Decreasefind
Decreasefind aa
Defensible
Defensible Niche
Niche

Increase
Increase to
to Defend
Defend

Attack
Attack With
With Large
Large
SOV
SOV Premium
Premium

Maintain
Maintain Modest
Modest
Spending
Spending Premium
Premium

Low

High
Your Share of Market

PROMOTIONAL
MANAGEMENT
5. CREATIVE IN
ADVERTISEMENT SETTING
JUNE-AUG

2015

Advertising Creativity

Creative
Creative
Strategy
Strategy

Determining
Determining what
what the
the
advertising
advertising message
message will
will say
say
or
or communicate
communicate

Creative
Creative
Tactics
Tactics

Determining
Determining how
how the
the
message
message strategy
strategy will
will be
be
executed
executed

Taglines That Set Vegas Part

What happens here, stays here


Be anyone
Your Vegas is Showing

Best Ads of all Time?

Nissan

Enjoy the ride

Alka-Seltzer

Mama Mia! Thats a spicy meatball!


I cant believe I ate the whole thing

Hard- vs. Soft-Sell Advertising

*Click outside of the video screen to advance to the next slide

The Power Idea

Describable
Describable
in
in aa simple
simple
word
word or
or
phrase
phrase

Likely
Likely to
to
attract
attract the
the
prospects
prospects
attention
attention

Lets
Lets
prospects
prospects
vividly
vividly
experience
experience
the
the goods
goods

Revolves
Revolves
around
around the
the
clinching
clinching
benefit
benefit

Allows
Allows you
you to
to
brand
brand the
the
advertising
advertising

Creativity and Synergy


Agency

Client

Account
executives

Marketing
managers

Media
planners

Brand
managers

Researchers

Attorneys

Upper
managemen
t

An Absolut World

The Only Rule in Advertising

There are no rules

The Perpetual Debate

Only artistic
value and
originality count

It isnt creative if it
doesnt sell

Stick with
what
works

Try
something
new

Suits

Artists

Wrigley Takes a Creative Risk

Creative Personnel

Unconventional
Abstract
Less
structured
Less
organized
Intuitive

Youngs Creative Process


Immersion
Immersion

Get
Get raw
raw material
material and
and data,
data, and
and
immerse
immerse yourself
yourself in
in the
the problem
problem

Digestion
Digestion

Take
Take the
the information,
information, work
work itit over,
over,
wrestle
wrestle with
with itit in
in your
your mind
mind

Incubation
Incubation

Turn
Turn the
the information
information over
over to
to the
the
subconscious
subconscious to
to do
do the
the work
work

Illumination
Illumination

Eureka!
Eureka! II have
have it!
it! phenomenon
phenomenon

Verification
Verification

Study
Study the
the idea,
idea, evaluate
evaluate it,
it,
reshape
reshape itit for
for practical
practical usefulness
usefulness

Wallas Creative Process Model

Illumination
Seeing the
Solution

Preparation
Gathering
Information

The
Creative
Process
Verification
Refining
the Idea

Incubation
Setting
Problem
Aside

Test Your Knowledge


A client manufactures maternity clothes for businesswomen, and
it wants a new advertising campaign. Visits to obstetrician's
offices to observe the clothes being worn and to maternity shops
to see how they were selected could be a part of the _____ stage
of the creative process.
A) Preparation
B) Verification
C) Revision
D) Reality check
E) Incubation

Getting Creative Input

Read anything
related to the
product or
market!

Conduct studies
of product,
service,
audience!

Use the product


to become
familiar
with it!

Work in and
learn about the
clients
business!

Listen to what
people are
talking about!

Ask everyone
involved for
information!

Branding Research

Got Milk?

Input Verification and Revision


Evaluate
Evaluate ideas
ideas
Reject
Reject the
the inappropriate
inappropriate
Objective
Objective

Refine
Refine the
the remaining
remaining
Give
Give ideas
ideas final
final expression
expression

Directed
Directed focus
focus groups
groups
Message
Message communication
communication studies
studies
Portfolio
Portfolio tests
tests
Viewer
Viewer reaction
reaction profiles
profiles

Techniques
Techniques

Top 10 Slogans of the Century


Company or Brand

Campaign Theme

1. De Beers

Diamonds are forever

2. Nike

Just do it!

3. Coca Cola

The pause that refreshes

4. Miller Lite

Tastes great, less filling

5. Avis

We try harder

6. Maxwell House

Good to the last drop

7. Wheaties

Breakfast of champions

8. Clairol

Does she . . . or doesnt she?

9. Morton Salt

When it rains it pours

10. Wendys

Wheres the beef?

An Advertising Campaign
Integrated
Integrated
Interrelated
Interrelated

Marketing
Marketing
Communication
Communication
Activities
Activities

Coordinated
Coordinated

In
In Different
Different
Media
Media

Centered
Centered on
on aa
Theme
Theme or
or Idea
Idea

Over
Over aa Time
Time
Period
Period

Test Your Knowledge


Advertising campaign themes:
A) Are always tactical in nature and design
B) Set the tone or direction for all of the
individual ads that make up the
campaign
C) Are typically designed by the client and
implemented by the agency
D) Are usually used for ads that run in only
media vehicle
E) Are described by all of the above

one type of

Advertising Campaign Themes

The
The central
central message
message that
that will
will be
be communicated
communicated in
in
all
all IMC
IMC activities
activities

Miller
Miller
Lite
Lite

Marlboro
Marlboro
country
country

BMW
BMW

The
The ultimate
ultimate
driving
driving
machine
machine

General
General Mills,
Mills,
Wheaties
Wheaties

The
The breakfast
breakfast
of
of champions
champions

Developing a Creative Strategy

Creative
Creative Strategy
Strategy

Target
Target
audience
audience
identity
identity

Basic
Basic
problem,
problem,
issue,
issue,
opportunity
opportunity

Major
Major
selling
selling
idea
idea or
or
key
key
benefit
benefit

Any
Any
supportive
supportive
information
information

Copy Platform Outline

Basic problem or issue the advertising must


address
Advertising and communications objectives
Target audience
Major selling idea or key benefits
to communicate
Creative strategy statement
Supporting information and requirements

Model of Marketing Information Flow


Knowledge
of vital
marketing
information
Client/agency
communication

Client gatekeepers
(Brand manager)

Internal client
decision
to share
information
with agency

Internal agency
communication

Agency gatekeeper
(Account manager)

Agency gatekeeper
decision on sharing
client info with staff

Creative staff

Art is created

Successful, Long-Running Campaigns


Company or Brand

Campaign Theme

Nike

Just do it

Allstate Insurance

Youre in good hands with Allstate

Hallmark cards

When you care enough to send


the very best

Budweiser

This Buds for you

Intel

Intel inside

State Farm Insurance

Like a good neighbor,


State Farm is there

Chevy Trucks

Like a rock

Dial soap

Arent you glad you use Dial?

Search for a Major Selling Idea

Positioning
Positioning the
the Brand
Brand

Use
Use aa Unique
Unique
Selling
Selling Position
Position

Seeking
Seeking the
the Major
Major
Idea
Idea

Positioning
Positioning

Create
Create the
the Brand
Brand
Image
Image

The Unique Selling Proposition (USP)


Unique
Unique Selling
Selling
Proposition
Proposition
Benefit
Benefit
Buy
Buy this
this
product/service
product/service
and
and you
you get
get
this
this benefit
benefit or
or
reward
reward

Unique
Unique
Must
Must be
be unique
unique
to
to this
this brand
brand or
or
claim;
claim;
something
something rivals
rivals
can't
can't or
or don't
don't
offer
offer

Potent
Potent
Promise
Promise must
must
be
be strong
strong
enough
enough or
or
attractive
attractive
enough
enough to
to
move
move people
people

Perspectives of Great Ad Men on the Big Idea

David
David Ogilvy
Ogilvy

Leo
Leo Burnett
Burnett

Brand
Brand image
image or
or personality
personality
is
is particularly
particularly important
important
when
when brands
brands are
are similar
similar

Find
Find the
the inherent
inherent drama
drama or
or
characteristic
characteristic of
of the
the
product
product that
that makes
makes
consumers
consumers buy
buy itit

Every
Every ad
ad must
must contribute
contribute to
tothe
the
complex
complex symbol
symbol that
that isis the
the brand
brand
image.
image.

(Inherent
(Inherent drama)
drama)isisoften
often hard
hard to
to
find
find but
but itit isisalways
alwaysthere,
there, and
and once
once
found
found itit isis the
the most
most interesting
interestingand
and
believable
believable of
of all
all advertising
advertising
appeals.
appeals.

Image Advertising

Test Your Knowledge


Which of the following is most often the basis of a marketer's
creative strategy when the company has multiple brands
competing in the same market?
A) Unique selling propositions
B) Brand image
C) Inherent drama
D) Transformational advertising
E) Positioning

Inherent Drama

Inherent
Inherent
Drama
Drama

Messages
Messages generally
generally presented
presented in
in aa
warm,
warm, emotional
emotional way
way

Focus
Focus on
on consumer
consumer benefits
benefits with
with
an
an emphasis
emphasis on
on the
the dramatic
dramatic
element
element in
in expressing
expressing them
them

Positioning

Positioning
Positioning

Establish
Establish aa particular
particular place
place in
in the
the
customers
customers mind
mind for
for the
the product
product or
or
service
service

Based
Based on
on product
product attributes/
attributes/
benefits,
benefits, price/quality,
price/quality, use
use or
or
application,
application, type
type of
of user,
user, problem
problem
solved
solved

IBM as a Provider of Business Consulting Services

Contemporary Approaches to the Big Idea

Appeals and Execution Style

Advertising
Advertising
Appeals
Appeals

Execution
Execution
Style
Style

The
The approach
approach used
used to
to attract
attract
the
the attention
attention of
of consumers
consumers
To
To influence
influence consumer
consumer feelings
feelings
toward
toward aa product,
product,
service
service or
or cause
cause

The
The way
way an
an appeal
appeal is
is turned
turned
into
into an
an advertising
advertising message
message
The
The way
way the
the message
message is
is
presented
presented to
to the
the consumer
consumer

Types of Informational/Rational Appeals


Feature:
Feature: Focus
Focus on
on dominant
dominant traits
traits of
of the
the product
product
Competitive:
Competitive: Makes
Makes comparisons
comparisons to
to other
other brands
brands
Price:
Price: Makes
Makes price
price offer
offer the
the dominant
dominant point
point
News:
News: News
News announcement
announcement about
about the
the product
product
Popularity:
Popularity: Stresses
Stresses the
the brands
brands popularity
popularity

A Rational Appeal

Appealing to Personal States or Feelings


Safety
Security
Fear
Love, Affection
Happiness, Joy
Nostalgia
Sentiment
Excitement
Arousal

Stimulation
Sorrow, Grief
Pride
Achievement
Accomplishment
Self-esteem
Embarrassment
Actualization
Pleasure
Ambition
Comfort

Appealing to Social-Based Feelings

Approval
Approval

Affiliation
Affiliation
EmbarrassEmbarrassment
ment

Acceptance
Acceptance

Status
Status

Social-Based
Social-Based
Feelings
Feelings

Respect
Respect

Belonging
Belonging

Involvement
Involvement
Rejection
Rejection

Recognition
Recognition

TaylorMade Uses an Emotional Appeal

*Click outside of the video screen to advance to the next slide

Transformational Ads

Feelings
Feelings

Meanings
Meanings

Richer
Richer

More
More
Exciting
Exciting

Images
Images

The
The ads
ads
create
create .. .. ..

It
It must
must make
make
the
the product
product use
use
experience
experience .. .. ..

Beliefs
Beliefs

Warmer
Warmer

More
More
Enjoyable
Enjoyable

Transformational Advertising for Skyy Vodka

Combining Rational and Emotional Appeals

Levels of Relationships With Brands

Emotions

Personality

Product Benefits

Test Your Knowledge


According to McCann-Erickson's concept of emotional bonding, the
strongest relationship that develops between a brand and a
consumer is based on:
A) Product benefits
B) Brand personality
C) Feelings or emotional attachment to
the brand
D) Rational motives
E) Competitive advantage over similar
products in the market

MasterCard Creates an Emotional Bond

Reminder Advertising

Teaser Ads Excite Curiosity

Ad Execution Techniques

Straight
Straight sell
sell

Animation
Animation

Scientific/Technical
Scientific/Technical

Personality
Personality Symbol
Symbol

Demonstration
Demonstration

Imagery
Imagery

Comparison
Comparison

Dramatization
Dramatization

Testimonial
Testimonial

Humor
Humor

Slice
Slice of
of life
life

Combinations
Combinations

Straight Sell or Factual Image

Mentadent Uses a Demonstration Ad

Slice-of-Life Execution

Test Your Knowledge


Which of the following is an advertising execution approach
designed to illustrate key advantages or features of a product by
showing it in actual use?
A) Comparison
B) Demonstration
C) Scientific evidence
D) Straight-sell
E) Animation

Animation

Personality Symbol

Jeep Uses Imagery for the Wrangler

Basic Components of Print Advertising


Headline
Headline
Words
Words in
in the
the Leading
Leading Position
Position of
of the
the Ad
Ad
Subheads
Subheads
Smaller
Smaller Than
Than the
the Headline,
Headline, Larger
Larger Than
Than the
the Copy
Copy
Body
Body Copy
Copy
The
The Main
Main Text
Text Portion
Portion of
of aa Print
Print Ad
Ad

Visual
Visual Elements
Elements
Illustrations
Illustrations Such
Such As
As Drawings
Drawings or
or Photos
Photos
Layout
Layout
How
How Elements
Elements Are
Are Blended
Blended Into
Into aa Finished
Finished Ad
Ad

Headlines Help Select Good Prospects

Ad Layout

Visual
element

Indirect
headline
Body copy

Ad Layout

Creative Tactics for Television

Sight

Motion

Sound

Nortel Uses Music Creatively

*Click outside of the video screen to advance to the next slide

Jingles

Determinants of Creativity

Determinants of Creativity It is generally agreed upon that there are two central determinants of creativity which are
divergence and relevance. Divergence refers to the extent to which an ad contains elements that are novel different or
unusual. Some of the ways divergence can be achieved in advertising include the following:

Originality: Ads that contain elements that are rare, surprising, or move away from the obvious and commonplace.

Flexibility: Ads that contain different ideas or switch from one perspective to another.

Elaboration: Ads that contain unexpected details or finish and extend basic ideas so they become more intricate,
complicated or sophisticated.

Synthesis: Ads that combine, connect, or blend normally unrelated objects or ideas.

Artistic value: Ads that contain artistic verbal impressions or attractive shapes and colors

Relevance reflects the degree to which the various elements or the ad are meaningful, useful, or valuable to the consumer
and can be achieved in two ways. Ad-to-consumer relevance refers to situations where the ad contains execution
elements that are meaningful to consumers. For example, advertisers may use celebrities which whom consumers identify,
music that they like or visual images and other execution techniques that capture their interest and attention. Brand-toconsumer relevance refers to situations where the advertised brand of a product or service is of personal interest to
consumers. Relevance or appropriateness can also be viewed in terms of the degree to which an advertisement provides
information or an image that is pertinent to the brand.

Last Updated:March 23, 2016

LMS SEGi education group

277

Divergence

Originality: Ads that contain elements that are rare, surprising, or


move away from the obvious and commonplace.
Flexibility: Ads that contain different ideas or switch from one
perspective to another.
Elaboration: Ads that contain unexpected details or finish and
extend basic ideas so they become more intricate, complicated or
sophisticated.
Synthesis: Ads that combine, connect, or blend normally unrelated
objects or ideas.
Artistic value: Ads that contain artistic verbal impressions or
attractive shapes and colors

Last Updated:March 23, 2016

LMS SEGi education group

278

Relevance

Relevance reflects the degree to which the various elements


or the ad are meaningful, useful, or valuable to the consumer
and can be achieved in two ways. Ad-to-consumer relevance
refers to situations where the ad contains execution elements
that are meaningful to consumers. For example, advertisers
may use celebrities which whom consumers identify, music
that they like or visual images and other execution techniques
that capture their interest and attention. Brand-to-consumer
relevance refers to situations where the advertised brand of a
product or service is of personal interest to consumers.
Relevance or appropriateness can also be viewed in terms of
the degree to which an advertisement provides information or
an image that is pertinent to the brand.

Last Updated:March 23, 2016

LMS SEGi education group

279

Production Stages for TV Commercials

Preproduction
Preproduction

All
All work
work before
before actual
actual shooting,
shooting,
recording
recording

Production
Production

Period
Period of
of filming,
filming, taping,
taping, or
or recording
recording

Postproduction
Postproduction

Work
Work after
after spot
spot is
is filmed
filmed or
or recorded
recorded

Preproduction Tasks

Select
Select aa director
director
Choose
Choose
production
production
company
company

Preproduction
Preproduction
meeting
meeting

Preproduction
Preproduction
Production
Production
timetable
timetable

Bidding
Bidding
Cost
Cost estimation
estimation
and
and timing
timing

Production Tasks

Production
Production

Location
Location

Timing
Timing

Talent
Talent

Postproduction Tasks

Editing
Editing

Processing
Processing

Release/
Release/
shipping
shipping

Sound
Sound
effects
effects
Postproduction
Postproduction
Audio/video
Audio/video
mixing
mixing

Duplicating
Duplicating

Approvals
Approvals

Opticals
Opticals

Test Your Knowledge


The creative work of an advertising agency may be reviewed and
evaluated by:
A) Brand managers
B) Advertising managers
C) Legal departments
D) Board of directors
E) All of the above

Evaluation Guidelines for Creative Output


Consistent
Consistent with
with brand
brand marketing
marketing objectives?
objectives?
Consistent
Consistent with
with brand
brand advertising
advertising objectives?
objectives?
Consistent
Consistent with
with creative
creative strategy,
strategy, objectives?
objectives?
Communicates
Communicates what
what its
its supposed
supposed to?
to?
Approach
Approach appropriate
appropriate to
to target
target audience?
audience?
Communicates
Communicates clear,
clear, convincing
convincing message?
message?
Does
Does execution
execution overwhelm
overwhelm the
the message?
message?
Appropriate
Appropriate to
to the
the media
media environment?
environment?
Truthful
Truthful and
and tasteful?
tasteful?

The Hispanic Market

Pennzoil Creates Ads for the Hispanic Market

*Click outside of the video screen to advance to the next slide

TUTORIAL
1.

2.

3.

Explain the
difference between
creative technique
and tactics (8m)
List 5 suitable
appeals for A&P in
Malaysia and explain
why (10m)
Explain 3 execution
styles (6m)

Last Updated:March 23, 2016

4. Explain the structure


of print advertisement
(10m)
5. What is creative
determinants? (4m)
6. Explain creative
determinants ( 20m)

LMS SEGi education group

288

Explain creative determinants ( 20m)


1.
2.

3.
4.
5.

6.

7.
8.

9.
10.
11.
12.

13.

Creative determinants is a standard to measure creativety .


When we want to explain or categorized certain categories , we used creative determinants as a
standard measurement
There are two types of CD which are divergence and relevancy .
Divergence explain novelty in a&p .
Divergence can be subdivided into 5 categories namely originality,flexibility , elaboration, artistic and
synthesis
Originality: Ads that contain elements that are rare, surprising, or move away from the obvious and
commonplace.
Flexibility: Ads that contain different ideas or switch from one perspective to another.
Elaboration: Ads that contain unexpected details or finish and extend basic ideas so they become more
intricate, complicated or sophisticated.
Synthesis: Ads that combine, connect, or blend normally unrelated objects or ideas.
Artistic value: Ads that contain artistic verbal impressions or attractive shapes and colors
Relevance reflects the degree of relatedness
Ad-to-consumer relevance refers to situations where the ad contains execution elements that are
meaningful to consumers.
Brand-to-consumer relevance refers to situations where the advertised brand of a product or service is
of personal interest to consumers.

Last Updated:March 23, 2016

LMS SEGi education group

289

PROMOTIONAL
MANAGEMENT
6 . INTERNATIONAL
ADVERTISEMENT
JUNE-AUG

2015

Top 10 Companies by Ad Spending


Outside the U.S.

Slide 20-1
Figure 20-1

Wednesday, March 23, 2016

LMS

Advantages of Global Marketing


and Advertising

Economies of scale in production and


distribution
Lower marketing and advertising costs
Ability to exploit good ideas on a worldwide
basis
Consistent brand and/or company image in all
markets
Simplification of coordination and control of
marketing and promotional programs

Wednesday, March 23, 2016

LMS

Problems
Problems with
with Global
Global
Advertising
Advertising

Differences in market and economic development,


consumer needs, media availability and legal
restrictions

Cultural differences make advertising


standardization difficult

Usage patterns and perceptions of a product may


vary from one country to another

Wednesday, March 23, 2016

LMS

When is Globalization
Appropriate?

Brands that can be adapted for a visual appeal


Brands that are promoted with image campaigns
that play to universal appeals
High-tech products and new products coming to
the world for the first time
Products with nationalistic flavor
Products that appeal to a market segment with
universally similar tastes, interests, needs and
values

Wednesday, March 23, 2016

LMS

Decision Areas in International


Advertising
Organizational structure
Agency selection
Advertising research
Creative strategy
Media strategy and selection
Wednesday, March 23, 2016

LMS

Criteria
Criteria for
for Selecting
Selecting an
an Agency
Agency

Ability to cover relevant markets

Quality of work

Market research, public relations, and other


services offered

Relative roles of company and agency

Level of communication and control desired by


company

Wednesday, March 23, 2016

LMS

Criteria
Criteria for
for Selecting
Selecting an
an Agency
Agency
cont.
cont.

Ability to coordinate international campaign


Size of companys international business
Companys desire for local vs. international image
Company organizational structure
Companys level of involvement with international
operations

Wednesday, March 23, 2016

LMS

Factors
Factors that
that Affect
Affect International
International
Sales
Sales Promotion
Promotion

Economic development
Market maturity
Consumer perceptions
Trade structure
Regulations

Wednesday, March 23, 2016

LMS

The Role
Public Relations
Toof
manage
relationship with the public
General
Public
Employees

CLIENT

Suppliers

Wednesday, March 23, 2016

LMS

Customers

Stockholders

Public Relations Management Process

Wednesday, March 23, 2016

Determination and evaluation of


public

Identification of policies and


procedures

Development and execution of the


program

LMS

Weak
Strong

MARKETING

Four Classes of Marketing


and Public Relations
Example
:
Small social
service
agencies

Example:
Hospitals,
colleges and
universities

Example:

Example:

Small
manufacturin
g companies

Large,
Fortune fivehundred
companies

Weak

Strong

PUBLIC RELATIONS

Wednesday, March 23, 2016

LMS

Marketing Public Relations


(MPR) Functions

Building marketplace excitement before media


advertising breaks
Creating advertising news where there is no
product news
Introducing a product with little or no advertising
Providing a value-added customer service
Building brand-to-customer bonds
Influencing the influentials (i.e., providing
information to opinion leaders)

Wednesday, March 23, 2016

Defending products at risk and giving customers


a reason to buy

LMS

Evaluating Public Relations Plans


1.

Does the plan reflect a thorough understanding of the companys


business situation?
2. Has the PR program made good use of research and background
sources?
3. Does the plan include full analysis of recent editorial coverage?
4. Do the PR people fully understand the products strengths and
weaknesses?
5. Does the PR program describe several cogent, relevant
conclusions from the research?
6. Are the program objectives specific and measurable?
7. Does the program clearly describe what the PR activity will be and
how it will benefit the company?
8. Does the program describe how its results will be measured?
9. Do the research, objectives, activities, and evaluations tie
together?
10. Has the PR department communicated with marketing throughout
the development of the program?
Wednesday, March 23, 2016

LMS

Research on Public Attitudes

Provides input for the planning process

Serves as an early warning system

Secures internal cooperation, support

Increases communications effectiveness

Wednesday, March 23, 2016

LMS

Public Relations Audiences

Wednesday, March 23, 2016

Employees of the firm


Stockholders and investors
Community members
Suppliers and customers
Print and broadcast media
Educators
Civic and business organizations
Governments
Financial groups
LMS

Public Relations Tools

Wednesday, March 23, 2016

Press releases

Press conferences

Exclusives

Interviews

Community involvement

The internet
LMS

Telling the PR Story

Technical methods make it


easier for the press

They increase the likelihood


media will use the story

Wednesday, March 23, 2016

Telephone press conferences


In-studio media tours
Multicomponent video news
releases (VNR)
Targeted wire stories
LMS

Promotional Publications

Wednesday, March 23, 2016

Inserts
Enclosures
Annual reports
Posters
Bulletin boards
Exhibits
Audiovisuals
Position papers
Speeches

LMS

News releases
Media kits
Booklets
Leaflets
Pamphlets
Brochures
Manuals
Books
Letters

Advantages of Public Relations

Wednesday, March 23, 2016

Credibility

Cost

Avoidance of clutter

Lead generation

Selectivity

Image building
LMS

Criteria for Measuring PR Effectiveness

Wednesday, March 23, 2016

Total number of impressions . . .

Over time

On the target audience

On specific target audiences

Percentage of . . .

Positive articles over time

Negative articles over time

Ratio of positive to negative articles

Percentage of positive and negative articles by . . .

Subject

Publication

Reporter

Target audience

LMS

Corporate Advertising

Wednesday, March 23, 2016

Types
Image advertising
Event sponsorship
Advocacy advertising
Cause-related advertising
Objectives
Boost employee morale
Smooth labor relations
Help newly deregulated industries
Ease consumer uncertainty
Answer investor questions
Help diversified companies
Establish identity for parent
Decrease reliance solely on brand
LMS

To 30 Companies Based on RQ
(Reputation Quotient)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Johnson & Johnson


Coca-Cola
Hewlett-Packard
Intel
Ben &Jerrys
Wal-Mart
Xerox
Home Depot
Gateway
Disney
Dell
General Electric
Lucent
Anheuser-Busch
Microsoft

Wednesday, March 23, 2016

83.4
81.6
81.2
81.0
81.0
80.5
79.9
79.7
78.8
78.7
78.4
78.1
78.0
78.0
77.9

16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
LMS

Amazon.com
IBM
Sony
Yahoo!
AT&T
FedEx
Procter & Gamble
Nike
McDonalds
Southwest Airlines
America Online
Daimler Chrysler
Toyota
Sears
Boeing

77.8
77.6
77.4
76.9
75.7
75.7
71.9
71.3
71.2
70.6
69.2
69.1
68.6
67.6
67.3

Top 5 Companies for Each of 6 Elements


of Reputation
Social Responsibility
Emotional Appeal
How much the company is
liked, admired, and
respected

1
2
3
4
5
Wednesday, March 23, 2016

Johnson & Johnson


Coca-Cola
Hewlett-Packard
Ben & Jerrys
Xerox
LMS

Perceptions of the
company as a good
citizen in its dealings
with communities,
employees,
and the
1 Ben & Jerrys
environment

2
3
4
5

Amazon.com
Johnson & Johnson
Wal-Mart
Xerox

Top 5 Companies for Each of 6 Elements of


Reputation
Workplace Environ.

Products & Services


Perceptions of the quality,
innovation, value, and
reliability of its products and
services
1 Johnson & Johnson

2
3
4
5
Wednesday, March 23, 2016

Intel
Hewlett-Packard
Xerox
Ben & Jerrys

Perception of how well


the company is
managed, how it is to
work for, and the quality
1
Johnson
& Johnson
of its
employees

2
3
4
5
LMS

Lucent
Ben & Jerrys
Hewlett-Packard
Intel

Top 5 Companies for Each of 6 Elements of


Reputation
Vision & Leadership
How much the company
demonstrates a clear vision
and strong leadership

1
2
3
4
5
Wednesday, March 23, 2016

Microsoft
Intel
Anheuser-Busch
Coca-Cola
Dell

Financial
Performance
Perceptions of its
1 Microsoft
profitability, prospects,
2 Wal-Mart
and risk

3 Coca-Cola
4 Johnson & Johnson
5 Intel

LMS

ADVERTISING
MANAGEMENT
7 . MEDIA
JUNE-AUG

2015

Media Expenditures to Reach $1 Trillion

Traditional Media

Satellite radio
stations
2

Consumer
magazines
5,340

Broadcast
networks (TV and
cable)
100

Newspapers
(daily and
weekly)
8,100

TV stations
3,510

Radio stations
13,898

Media Terminology
Media
Media
Planning
Planning

AA series
series of
of decisions
decisions involving
involving the
the delivery
delivery
of
of messages
messages to
to audiences
audiences

Media
Media
Objectives
Objectives

Goals
Goals to
to be
be attained
attained by
by the
the media
media strategy
strategy
and
and program
program

Media
Media
Strategy
Strategy

Decisions
Decisions on
on how
how the
the media
media objectives
objectives can
can
be
be attained
attained

Media
Media

Various
Various categories
categories of
of delivery
delivery systems,
systems,
including
including broadcast
broadcast and
and print
print media
media

Broadcast
Broadcast
Media
Media

Either
Either radio
radio or
or television
television network
network or
or local
local
station
station broadcasts
broadcasts

Media Terminology
Print
Print
Media
Media

Publications,
Publications, such
such as
as newspapers,
newspapers,
magazines,
magazines, direct
direct mail,
mail, outdoor,
outdoor, etc.
etc.

Media
Media
Vehicle
Vehicle

The
The specific
specific carrier
carrier within
within aa medium
medium
category
category

Reach
Reach

Number
Number of
of different
different audience
audience members
members
exposed
exposed at
at least
least once
once in
in aa time
time period
period

Coverage
Coverage

The
The potential
potential of
of audience
audience that
that might
might
receive
receive the
the message
message through
through the
the vehicle
vehicle

Frequency
Frequency

Number
Number of
of times
times the
the receiver
receiver is
is exposed
exposed to
to
the
the media
media vehicle
vehicle in
in aa time
time period
period

Developing the Media Plan


Situation
Situation
analysis
analysis

Marketing
Marketing
strategy
strategy plan
plan

Creative
Creative
strategy
strategy plan
plan

Setting
Setting media
media objectives
objectives
Determining
Determining media
media strategy
strategy
Selecting
Selecting broad
broad media
media classes
classes
Selecting
Selecting media
media within
within class
class
Media
Media use
use decision
decision

broadcast
broadcast

Media
Media use
use
decision
decision

print
print

Media
Media use
use decision
decision

other
other media
media

Media Planning Difficulties


Measurement
Measurement
Problems
Problems

Lack
Lack of
of
Information
Information

Problems
Problems
in
in Media
Media
Planning
Planning

Time
Time
Pressure
Pressure

Inconsistent
Inconsistent
Terms
Terms

Developing a Media Plan


Analyze
Analyze the
the market
market
Establish
Establish media
media objectives
objectives
Develop
Develop media
media strategy
strategy
Implement
Implement media
media strategy
strategy
Evaluate
Evaluate performance
performance

Analyzing Market Potential

Index Number
Percentage of users
in a demographic segment
Index =
Percentage of population
in the same segment

X 100

Brand and Category Analysis

Brand Development Index

BDI =

Percentage of brand to total


U.S. sales in market
Percentage of total U.S.
population in market

X 100

Brand and Category Analysis

Category Development Index


Percentage of total product
category sales in market
CDI =

Percentage of total U.S.


population in market

X 100

Test Your Knowledge


In calculating both the brand development index (BDI) and the
category development index (CDI), a media planner obtains the
following results: Low BDI and High CDI. What do these results
imply?
A) High market share; good market

potential

B) Low market share; good market potential


C) High market share; monitor for sales decline
D) Low market share; poor market potential

Brand and Category Analysis

High CDI

Low BDI

High
High market
market share
share
Good
Good market
market
potential
potential

Low
Low market
market share
share
Good
Good market
market
potential
potential

Low CDI

High BDI

High
High market
market share
share
Monitor
Monitor for
for sales
sales
decline
decline

Low
Low market
market share
share
Poor
Poor market
market
potential
potential

Brand and Category Analysis

High CDI

Low BDI

The
The market
market usually
usually
represents
represents good
good sales
sales
potential
potential for
for both
both the
the
product
product and
and the
the brand.
brand.

The
The product
product category
category
shows
shows high
high potential
potential but
but
the
the brand
brand isnt
isnt doing
doing well;
well;
the
the reason
reason should
should be
be
determined.
determined.

Low CDI

High BDI

The
The category
category isnt
isnt selling
selling
well
well but
but the
the brand
brand is;
is;
may
may be
be aa good
good market
market in
in
which
which to
to advertise
advertise but
but
should
should be
be monitored
monitored for
for
sales
sales decline.
decline.

Both
Both the
the product
product category
category
and
and the
the brand
brand are
are doing
doing
poorly;
poorly; not
not likely
likely to
to be
be aa
good
good place
place to
to advertise.
advertise.

Target Audience Coverage


Population excluding target market
Target market
Media coverage
Media overexposure
Target
Market
Proportion

Full
Market
Coverage

Partial
Market
Coverage

Coverage
Exceeding
Market

Geographic Coverage

Three Scheduling Methods

Continuity

Flighting

Pulsing

Jan

Feb Mar Apr May Jun

Jul

Aug Sep Oct Nov Dec

Reach and Frequency


A. Reach
of One
OneProgram
Program
A.
Reach of

total
audience
reached
by
B. Reach
of Two
Programs

one program
B. Reach of Two Programs total audience reached by
two programs (including duplicated reach)
C. Duplicated Reach of Both duplicated reach only
(those that were exposed more than once)
D. Unduplicated Reach of Both total reach less
duplication (exposed only once)

C. Duplicated Reach of Both

D. Unduplicated Reach of Both

A. Reach

of One Program total audience


reached by one program
B. Reach of Two Programs total audience
reached by two programs (including duplicated
reach)
C. Duplicated Reach of Both duplicated reach
only (those that were exposed more than once)
D. Unduplicated Reach of Both total reach less
duplication (exposed only once)

Last Updated:March 23, 2016

LMS SEGi education group

334

Graph of Effective Reach

Marketing Factors Determining Frequency

Marketing
Marketing
Factors
Factors

Brand
Brand
Loyalty
Loyalty

Brand
Brand
History
History

Share
Share of
of
Voice
Voice

Brand
Brand
Share
Share

Usage
Usage
Cycle
Cycle

Purchase
Purchase
Cycles
Cycles

Target
Target
Group
Group

Message Factors Determining Frequency

Message
Message
or
or Creative
Creative
Factors
Factors

Message
Message Complexity
Complexity
Message
Message Uniqueness
Uniqueness
New
New Vs.
Vs. Continuing
Continuing Campaigns
Campaigns
Image
Image Versus
Versus Product
Product Sell
Sell
Message
Message Variation
Variation
Wearout
Wearout
Advertising
Advertising Units
Units

Media Factors Determining Frequency

Clutter
Clutter
Repeat
Repeat
Exposure
Exposure

Scheduling
Scheduling

Media
Media
Factors
Factors
Editorial
Editorial
Environment
Environment

Attentiveness
Attentiveness

Number
Number of
of
Media
Media Used
Used

Flexibility in Media Planning Strategies

Market
Market
opportunities
opportunities

Market
Market threats
threats

Flexibility
Flexibility

Changes
Changes in
in media
media
or
or media
media vehicle
vehicle

Availability
Availability of
of
media
media

Test Your Knowledge


Why should an effective media strategy be flexible?
A) Due to the potential development of new
media
B) Due to an alteration of a competitor's
media schedule
C) Due to the unavailability of the desired
medium
D) Due to a drop in the ratings of a show
previously on the media schedule
E) Due to all of the above

advertising

Determining Relative Cost of Print Media

Cost per thousand (CPM)


CPM =

Cost of ad space
(absolute cost)

Circulation

X 1,000

Calculating CPM Based on Target Audience

Determining Relative Cost of Broadcast Media

Cost per rating point (CPRP)


CPRP =

Cost of commercial time


Program rating

Evaluation and Follow-Up

How well did these strategies achieve


the media objectives?

How well did the media plan contribute


to attaining the overall marketing and
communications objectives?

Use again, or analyze flaws

Television Pros and Cons


Advantages
Mass
Mass coverage
coverage
High
High reach
reach
Sight,
Sight, sound,
sound, motion
motion
High
High prestige
prestige

Disadvantages
Low
Low selectivity
selectivity
Short
Short message
message life
life

Low
Low cost
cost per
per exposure
exposure

High
High absolute
absolute cost
cost

Attention
Attention getting
getting

High
High production
production cost
cost

Favorable
Favorable image
image

Clutter
Clutter

Radio Pros and Cons


Advantages
Local
Local coverage
coverage
Low
Low cost
cost
High
High frequency
frequency
Flexible
Flexible

Disadvantages
Audio
Audio only
only
Clutter
Clutter

Low
Low production
production cost
cost

Low
Low attention
attention getting
getting

Well-segmented
Well-segmented audience
audience

Fleeting
Fleeting message
message

Magazine Pros and Cons

Advantages
Segmentation
Segmentation potential
potential
Quality
Quality reproduction
reproduction

Disadvantages

High
High information
information content
content

Long
Long lead
lead time
time for
for
ad
ad placement
placement

Longevity
Longevity

Visual
Visual only
only

Multiple
Multiple readers
readers

Lack
Lack of
of flexibility
flexibility

Newspaper Pros and Cons


Advantages
High
High coverage
coverage
Low
Low cost
cost
Short
Short lead
lead time
time for
for
placing
ads
placing ads

Ads
Ads can
can be
be placed
placed in
in interest
interest
sections
sections

Timely
Timely (current
(current ads)
ads)

Disadvantages
Short
Short life
life
Clutter
Clutter
Low
Low attention
attention getting
getting

Reader
Reader controls
controls exposure
exposure

Poor
Poor reproduction
reproduction quality
quality

Can
Can be
be used
used for
for coupons
coupons

Selective
Selective reader
reader exposure
exposure

Outdoor Pros and Cons

Disadvantages
Short
Short exposure
exposure time
time
Short
Short ads
ads

Advantages
Location
Location specific
specific
High
High repetition
repetition
Easily
Easily noticed
noticed

Poor
Poor image
image
Local
Local restrictions
restrictions

Direct Mail Pros and Cons

Advantages
High
High selectivity
selectivity
Reader
Reader controls
controls exposure
exposure
High
High information
information content
content
Repeat
Repeat exposure
exposure
opportunities
opportunities

Disadvantages
High
High cost
cost per
per contact
contact
Poor
Poor image
image (junk
(junk mail)
mail)
Clutter
Clutter

Internet Pros and Cons

Advantages

Disadvantages

User
User selects
selects product
product
information
information

Limited
Limited creative
creative capability
capability

User
User attention
attention and
and
involvement
involvement

Websnarl
Websnarl

Interactive
Interactive relationship
relationship

Technology
Technology limitations
limitations

Direct
Direct selling
selling potential
potential

Few
Few measurement
measurement
techniques
techniques

Flexible
Flexible message
message platform
platform

Limited
Limited reach
reach

Test Your Knowledge


In terms of media vehicles, ______ would be most efficient medium
for the Got Milk slogan.
A) television
B) interactive media
C) radio
D) outdoor
E) newspapers

TUTORIAL

Explain the following


terms :

Vehicle
Reach
Frequency

When is the best time


to use/ choose the 3
types of scheduling.

Last Updated:March 23, 2016

The dilemma between


frequency and reach
is well-known.
Discuss.
Explain 2 adv or
disadv of all
traditional medias.

LMS SEGi education group

353

PROMOTIONAL
MANAGEMENT
8 . PRINT
JUNE-AUG

2015

The Role of Magazines and Newspapers


Reader sets the
pace

Not
intrusive

Selective
audience

Highinvolvement

High readership

12-355

Magazines Target Specific Markets

12-356

Classifications of Magazines

Consumer
Consumer

Farm
Farm

Business
Business

12-357

Consumer Magazines Target Interests

12-358

Example of a Farm Publication

12-359

Business Publications Target


Professions or Industries

12-360

Advantages of Magazines
Selectivity
Reproduction Quality
Creative Flexibility
Permanence
Prestige
Receptivity, Engagement
Services

12-361

City Magazines Offer Geographic


Targeting

12-362

Readers Digest Promotes Its Regional Editions

12-363

Creative Flexibility
Bleed Pages
Creative
Space

Inserts

Gatefolds

Pop-Ups
Cover
Positions
12-364

Test Your Knowledge


An ad for California Almonds is a close-up view of
a swirl of white and milk chocolate topped with
sliced almonds. The chocolate swirls extend to the
very edge of the page. This ad is an example of
a(n):
A) Gatefold
B) Bleed page
C) Maximum coverage ad
D) Overrun
E) Total page ad

12-365

Smaller Ads Can Extend a Media Budget

12-366

Magazines Can Lend Prestige to a Brand

12-367

Comparing Media on Various Factors

12-368

Special Services Offered by Magazines

Retailer

alerts

Consumer
Split

research studies

runs

Personalized

messages to
tightly targeted audiences

12-369

Disadvantages of Magazines
Costs
Limited Reach
Limited Frequency
Long Lead Time
Clutter
Competition

12-370

Magazine Circulation
Primary
Circulation
Total
Audience

Guaranteed
Circulation

Controlled
Circulation

Circulation
Verification
Pass-Along
Readership
12-371

Readership and Total Audience

Readers per copy X circulation = Total Audience

12-372

Media Research Guides Advertisers

SRDS Data
Reader Data
from Magazines
Syndicated
Research Studies

12-373

Cost Elements of Advertising Space


Circulation
Size of the ad
Position in the publication
Editions chosen
Production requirements
Insertion number/frequency
Use of color
12-374

Magazine Costs and Networks


Advertising
$$$

Time
News
Network

Newsweek
U.S. News & World Report

12-375

The Future for Magazines


Current Problems

Potential Solutions

Declining revenues

Stronger editorial platforms

Decreasing circulations

Better circulation mgmt

Failing publications

Cross-magazine & media deals

Increasing costs

Database marketing

Strong media
competition

Technology advances
Electronic delivery methods

12-376

Characteristics of Newspapers

Still a major
advertising medium

Account for nearly 18%


of ad spending

Especially important to
local retailers

Also used by national


advertisers
12-377

Types of Newspapers

Daily

National
Special-audience

Weekly

Supplements

12-378

College Newspapers Effectively Reach


Students

12-379

Test Your Knowledge


National advertisers tend to avoid weekly
newspapers because of:
A) Their poor image
B) Their high absolute cost
C) Difficulties associated with purchasing
and placing ads in them
D) An overly broad geographic focus
E) The large number of local ads they
typically contain

12-380

Types of Newspaper Advertising


Display Ads

Classified
Ads

Special Ads
and Inserts

Local (mostly retail)


National or general
Small items arranged by topic
Rates based on size, duration
Legal notices - public reports
Notices by people and/or
organizations
Political ads
Circulars, catalogs, brochures
12-381

Newspaper Advantages and Limitations


Advantages

Disadvantages

Extensive penetration

Low production quality

Flexibility

Short life span

Geographic selectivity

Lack of selectivity

Involvement, acceptance

Clutter

Services offered

Limited use of color

12-382

Ways To Break Through the Clutter

12-383

Newspaper Circulation Figures

Other
Zone

Other
Zone

City Zone

Other
Zone

Retail
Trading
Zone

12-384

Purchasing Newspaper Space

General rates

Advertisers are outside


the newspapers designated
market area
Includes national advertisers
Are up to 75% higher than local rates

Retail or local rates

Advertisers conduct business within the


designated market
12-385

The Newspaper National Network

12-386

Newspaper Advertising Rates


Standard
Advertising Units

Sales by
Column Inch

One inch by
2 1/16 inches wide

1 inch deep by
1 column width

Fits in all newspapers that use


this format size

Column widths vary

Simplifies rate quotes

Column width affects ad size,


shape, cost

Simplifies production process

Complicated purchasing and


placement process

12-387

Rate Structures and Terminology

Combination Rates
Open Rates

Run-of-Paper [ROP]

Flat Rates

Preferred Position

12-388

Test Your Knowledge


The Washington Post newspaper has been
involved in a deal with Newsweek magazine,
whereby advertisers can purchase a package that
includes ads in both media. This is an example of:
A) A cross-magazine deal
B) A cross-newspaper deal
C) A cross-media buy
D) Cooperative advertising
E) A standard advertising unit buy

12-389

The Future of Newspapers


Competition
from other
media

Declining
circulation

Problems and
issues

Attracting and
retaining readers

Online delivery
Cross-media
opportunities

12-390

Attracting and Retaining Readers

12-391

PROMOTIONAL
MANAGEMENT
9 . TV AND RADIO
JUNE-AUG

2015

The Impact of DVRs on Television

11-393

Television Advantages

Creativity and Impact


Coverage and Cost Effectiveness
Captivity and Attention
Selectivity and Flexibility

11-394

Top 10 Network TV Advertisers

11-395

Selectivity and Flexibility

11-396

Television Limitations
Fleeting
Fleeting
Message
Message
Limited
Limited
Attention
Attention

Zipping
Zipping

Cost
Cost

Negative
Negative
Factors
Factors

Zapping
Zapping
Negative
Negative
Evaluation
Evaluation

Low
Low
Selectivity
Selectivity

Clutter
Clutter

Distrust
Distrust

11-397

Network versus Spot


Network

Affiliated stations
that are linked
Purchase transactions
are simplified

Spot &
Local

Commercials shown
on local stations
May be local or national
spot commercials
11-398

The CW Network

11-399

Test Your Knowledge


_____ are shows that are sold or distributed on a
station-by-station, market-by-market basis.
A) Spot broadcasts
B) Televised advertorials
C) Affiliate programs
D) Participation programs
E) Syndicated programs

11-400

Syndicated Programs
Sold and
distributed
station by
station

Advertisersupported or
bartered

Off-network syndication
are reruns
First-run syndications
are also featured

Programs sold to stations in


return for air time

11-401

Top 10 Syndicated Programs

11-402

Methods of Buying Time


Sponsorship
1. Advertiser
assumes
responsibility
for the
production
and perhaps
content
2. Sponsor has
control and
can capitalize
on a shows
prestige

Participations
1. Participating
sponsors share
the cost
2. May occur
regularly or
sporadically

Spot
Announcements
1. May be
purchased
by daypart
or adjacency

3. Advertiser
doesnt do
production
4. Participants
lack control
over content
11-403

TV Advertising Buying Decisions


Network Versus
Spot

Reach is the primary consideration


but ease of purchase is important.

National Versus
Local Spot

Considerations are the geographic


markets and ability to acquire airtime.

Sponsor,
Participate,
or Spot

Method of buying affects cost,


commitment, and identification.

Specific Daypart
and Weeks

Scheduling depends on reach and


frequency requirements.

11-404

Common Television Dayparts

11-405

Cable Television

Rapid growth during last 20 years

91% of households have cable TV via wired


cable or satellite

Development of superstations

Independent local stations that send their


signals nationally via satellite
Sports, movies, and reruns of network shows
Carries national advertising
11-406

Advertising on Cable Television


Advantages
1.

2.

National, regional,
and local available
Highly selective
narrowcasting

3.

Low cost

4.

Flexibility

Limitations
1.

Overshadowed by
major networks

2.

Audience
fragmentation

3.

Lacks penetration
in major markets

11-407

The Future of Cable


More
channels

Govt.
regulations

Future
Challenges
DBS services

Competition
New
technology

11-408

Test Your Knowledge


The sole source of network television and
local audience information is:
A) Arbitron Co.
B) Nielsen Media Research
C) RADAR
D) Smart-TV
E) Burke Research

11-409

Measuring the TV Audience


Total Audience

Program
Rating

Share of
Audience

Households
Using TV

11-410

TV Audience Measures

Share of Audience

Program Rating

11-411

National Audience Information

11-412

Local Audience Information

NSI reports

Viewing times
Programs
watched
Audience size
estimates
Demographics

11-413

Sweeps Periods

11-414

Developments in Audience Measurement


Commercial Ratings
Data (C3)
Anywhere Media
Measurement (A2/M2)
Engagement
Metrics

11-415

Radio and TV Similarities


Are time oriented media
Are sold in time segments

Both
Both
Media
Media

Have some network affiliates


Have some independents
Use the public airway
Are regulated by the F.C.C.
Are externally paced media
Are passive, low-involvement
11-416

Advantages of Radio
Cost and Efficiency
Receptivity
Selectivity
Flexibility
Mental Imagery
Integrated Marketing

11-417

Radio Gives Customers a Clearer Picture

11-418

Limitations of Radio
Creative Limitations
Audience Fragmentation
Chaotic Buying
Limited Research Data
Limited Listener Attention
Digital Media Competition
Clutter
11-419

Buying Radio Time


Network
Radio

Three national networks


Over 100 regional/area networks
A multitude of syndicated programs

Spot
Radio

About 20% of all spots


Allows great flexibility, targeting
Purchase transaction can be difficult

Local
Radio

Nearly 80% of advertisers are local


Local CATV is becoming competitive
11-420

Radio Time Classifications

11-421

Test Your Knowledge


Arbitron:

A) Measures local radio audiences


B) Measures listenership to webcasts
C) Provides radio stations with monthly
cume ratings
D) Now owns RADAR, which is a source
of national network rating numbers
E) All of the above

11-422

Audience Information
Person
Person
estimates
estimates

Share
Share

RADAR
RADAR

Arbitron

Rating
Rating

Network
Network audience
audience
measures
measures

11-423

PROMOTIONAL
MANAGEMENT
10 . SUPPORT MEDIA
JUNE-AUG

2015

The Role of Support Media

To
Toreach
reach those
those people
people in
in the
the target
target
audience
audience that
that primary
primary media
media (TV,
(TV,
print,
print, etc.)
etc.) may
may not
not have
have effectively
effectively
reached
reached and
and to
to reinforce,
reinforce, or
or support,
support,
their
their messages.
messages.

13-425

Support Media

Support
Support media
media are
are
also
also referred
referred to
to as
as

Alternative
Alternative
Media
Media

Nonmeasured
Nonmeasured
Media
Media

Nontraditional
Nontraditional
Media
Media

13-426

Out-of-Home Advertising Media

13-427

Top 10 Outdoor Advertising Categories


1.

Miscellaneous services and amusements

2.

Insurance and real estate

3.

Communications

4.

Public transportation, hotels, resorts

5.

Media and advertising

6.

Retail

7.

Restaurants

8.

Financial

9.

Automotive dealers and services

10.

Automotive, auto accessories/equipment


13-428

Attention-Getting Billboards

13-429

Alternative Out-of-Home Media


Aerial
Aerial Advertising
Advertising
Sky
Sky Banner
Banner

Blimp
Blimp

Sky
Sky Writing
Writing

Mobile
Mobile Billboards
Billboards
Trucks
Trucks

Vans
Vans

Trailers
Trailers

13-430

Blimps Carry Messages High and Wide

13-431

In-Store Media

Typical in-store media

In-store ads
Aisle displays
Store leaflets
Shopping cart
signage
In-store TV

13-432

Trucks Become Billboards on Wheels

13-433

Transit Advertising

Inside Cards

Outside Posters

Station, Platform, Terminal Posters


13-434

Posters Gain Attention in Terminals

13-435

Pros of Outdoor Advertising


Wide
Wide local
local coverage
coverage

Creation
Creation of
of awareness
awareness

High
High frequency
frequency

Efficiency
Efficiency

Geographic
Geographic flexibility
flexibility

Sales
Sales effectiveness
effectiveness

Creativity
Creativity

Production
Production capability
capability
Timeliness
Timeliness

13-436

Cons of Outdoor Advertising

Waste
Waste coverage
coverage

High
High cost
cost

Limited
Limited message
message ability
ability

Measurement
Measurement problems
problems

Wearout
Wearout

Image
Image problems
problems
13-437

Transit Advertising
Advantages
Exposure
Frequency
Disadvantages
Reach
Mood of the Audience

13-438

Measurement in Out-of-Home Media


Competitive Media Reports
Simmons Market Research Bureau
Point of Purchase Advertising Institute
Outdoor Advertising Association of America
Traffic Audit Bureau
Scarborough
American Public Transportation Association
13-439

Test Your Knowledge

Which of the following is an example of an out-of-home advertising


medium?
A) A billboard on the top of a taxi
B) An ad placed inside a bus shelter
C) Banners pulled by airplanes
D) An ad on a park bench
E) All of the above

13-440

Promotional Products Marketing

The
The advertising
advertising or
or promotional
promotional medium
medium
or
or method
method that
that uses
uses promotional
promotional
products,
products, such
such as
as ad
ad specialties,
specialties,
premiums,
premiums, business
business gifts,
gifts, awards,
awards, prizes,
prizes,
or
or commemoratives.
commemoratives.

13-441

Pros and Cons of Promotional Products


Advantages

Disadvantages

Selectivity

Poor image

Flexibility

Saturation

Frequency

Lead Time

Cost
Goodwill
High recall
Augmentation
13-442

Measurement of Promotional Products

71% of people surveyed had received


a promo product within the last year

33.7%... still had the item


76%... recalled advertisers name
52%... improved impression of company
73%... used item at least once a week
55%... kept it more than a year

13-443

Forms of Yellow Pages

13-444

Pros and Cons of Yellow Pages


Advantages

Disadvantages

Wide Availability

Market Fragmentation

Action Oriented

Timeliness

Low Cost

Lack of Creativity

Frequency

Lead Times

Non-Intrusiveness

Clutter

Trust

Size Requirements
13-445

Advertising in Movie Theaters


Advantages

Disadvantages

High Exposure

Irritation

Emotional attachment

Cost

Cost
Attention
Lack of Clutter
Proximity
Segmentation
13-446

Nontraditional Support Media


Product
Product
Placements
Placements
Others
Others

Product
Product Integration
Integration

Branded
Branded
Entertainment
Entertainment
Ad-Supported
Ad-Supported
VOD
VOD

Advertainment
Advertainment
Content
Content
Sponsorship
Sponsorship

13-447

Branded Entertainment
Advantages

Disadvantages

High Exposure

High Absolute Cost

High Frequency

Time of Exposure

Media Support

Limited Appeal

Source Association

Lack of Control

Low Cost/High Recall

Public Reactions

Bypass Regulations

Competition

Viewer Acceptance

Negative Placements

Targeting

Clutter
13-448

Measurement in Branded Entertainment

Nielson Media Research

Services

Nielson-IAG Research
Deutsch/iTVX
Brand Advisers

13-449

Test Your Knowledge

Which of the following is the best example of place-based media?


A) Movie ads on popcorn bags
B) Televisions in classrooms
C) Interactive kiosks
D) Internet banners
E) Mobile billboards

13-450

Guerrilla Marketing

a.k.a.
Stealth
Street
Buzz
Ambush
Viral
13-451

Other Media
Parking
Parking lot
lot
ads
ads
Videogame
Videogame
ads
ads

Others
Others

Gas
Gas station
station
pump
pump ads
ads

Place-based
Place-based
media
media
13-452

Alternative Media
Advantages

Disadvantages

Awareness and
Attention

Irritation

Cost Efficiencies

Wearout

Targeting

13-453

1. Support media cannot be used as a sole medium for advertising.


True
/ False Questions
True False
2. Support media is also known as measured media because it is
easy to measure. True False
3. Outdoor advertising is one of the newest methods of advertising
that has developed with the development of new technology.
True False
4. One of the major disadvantages of outdoor advertising is its lack of
persuasiveness. True False
6. Aerial advertising is very expensive in terms of absolute costs
especially when employed to reach specific target markets.
True False
Last Updated:March 23, 2016

LMS SEGi education group

454

PROMOTIONAL
MANAGEMENT
11 . MESUREMENT AND
EVALUATION
JUNE-AUG

2015

Reasons for and Against


Measuring Effectiveness

Reasons to Measure

Reasons Not to Measure

Avoid
Avoid Costly
Costly Mistakes
Mistakes

Cost
Cost of
of Measurement
Measurement

Evaluate
Evaluate Strategies
Strategies

Problems
Problems With
With Research
Research

Increase
Increase Efficiency
Efficiency of
of
Advertising
Advertising in
in General
General

Disagreement
Disagreement About
About What
What
to
to Test
Test

Determine
Determine If
If Objectives
Objectives
Are
Are Achieved
Achieved

Creative
Creative Objections
Objections

Last Update:March 23, 2016

LMS
456

Measuring Advertising Effectiveness


What
to
test
What
to
test
What
to
What to test
test

Where
to
test
Where
to
test
Where
to
Where to test
test

How
How to
to test
test

When
When to
to test
test

Source factors
Source factors
factors
Source
Source factors
Message variables
Message variables
variables
Message
Message variables
Media strategies
Media strategies
strategies
Media
Media strategies
Budget decisions
Budget decisions
decisions
Budget
Budget decisions

Laboratory tests
Laboratory tests
tests
Laboratory
Laboratory tests
Field tests
Field tests
tests
Field
Field tests

Testing guidelines
Testing guidelines

Pretesting
Pretesting

Appropriate tests
Appropriate tests

Posttesting
Posttesting

Last Update:March 23, 2016

LMS
457

PRE TEST MEASUREMENT

Pretesting Methods
Laboratory

Field

Consumer
Consumer Juries
Juries

Dummy
Dummy Ad
Ad Vehicles
Vehicles

Portfolio
Portfolio Tests
Tests

On-air
On-air Tests
Tests

Physiological
Physiological Measures
Measures
Theater
Theater Tests
Tests
Rough
Rough Tests
Tests
Concept
Concept Tests
Tests
Reliability
Reliability Tests
Tests
Comprehension
Comprehension and
and
Reaction
Reaction Tests
Tests

Last Update:March 23, 2016

LMS
458

Field Posttesting Methods


Recall
Recall Tests
Tests
Tracking
Tracking
Studies
Studies

Association
Association
Measures
Measures
Methods
Methods

Recognition
Recognition
Tests
Tests

Single-Source
Single-Source
Systems
Systems
Inquiry
Inquiry Tests
Tests

Last Update:March 23, 2016

LMS
459

Posttesting the Value of a Sponsorship

Last Update:March 23, 2016

LMS

460

Positioning Advertising Copy Testing (PACT)


1. Provide measurements relevant to objectives of advertising
2. Require agreement on how results will be used before each test
3. Provide multiple measures (Single measures aren't adequate)
4. Be based on a model of human response to communications
5. Consider multiple versus single exposure to the stimulus
6. Require alternative executions to have the same degree of finish
7. Provide controls to avoid the biasing effects of exposure context
8. Take into account basic considerations of sample definition
9. Demonstrate reliability and validity

Last Update:March 23, 2016

LMS
461

The Testing Process


1.Concept
1.Concept Testing
Testing
1.Concept
1.Concept Testing
Testing

2.Rough
2.Rough Testing
Testing
Occurs
Occurs at
at
Various
Various Stages
Stages

3.Finished
3.Finished Art
Art or
or
Commercial
Commercial Testing
Testing
4.Market
4.Market Testing
Testing (Post(Posttesting)
testing)

Last Update:March 23, 2016

LMS
462

Concept Testing
Objective
Objective

Explores
Explores Consumers
Consumers Responses
Responses to
to Ad
Ad Concepts
Concepts
Expressed
Expressed in
in Words,
Words, Pictures,
Pictures, or
or Symbols
Symbols
Alternatives
Alternatives Are
Are Exposed
Exposed to
to Consumers
Consumers Who
Who
Match
Match the
the the
the Target
Target Audience
Audience

Method
Method

Reactions
Reactions and
and Evaluations
Evaluations Are
Are Sought
Sought Through
Through
Focus
Focus Groups,
Groups, Direct
Direct Questioning,
Questioning, Surveys,
Surveys, Etc.
Etc.
Sample
Sample Sizes
Sizes Depend
Depend on
on the
the Number
Number of
of Concepts
Concepts
and
and the
the Consensus
Consensus of
of Responses
Responses

Output
Output
Last Update:March 23, 2016

Qualitative
Qualitative And/or
And/or Quantitative
Quantitative Data
Data Evaluating
Evaluating
and
and Comparing
Comparing Alternative
Alternative Concepts
Concepts
LMS
463

Rough Art, Copy, and Commercial


Testing
Comprehension
Comprehension and
and Reaction
Reaction Tests
Tests
Consumer
Consumer Juries
Juries
Advantages

Disadvantages

Control
Control

Consumer
Consumer May
May Become
Become aa SelfSelfappointed
appointed Expert
Expert

Cost
Cost Effectiveness
Effectiveness

Number
Number of
of Ads
Ads That
That Can
Can Be
Be
Evaluated
Evaluated Is
Is Limited
Limited

Endorsements
Independent
Endorsements
Endorsements
by Independent
Independent
Endorsements by
Independent
Third
Third Parties
Parties

AA Halo
Halo Effect
Effect Is
Is Possible
Possible

Achievement
Achievement of
of Credibility
Credibility

Preference
Preference for
for Ads
Ads Types
Types
May
May Overshadow
Overshadow Objectivity
Objectivity

Last Update:March 23, 2016

LMS
464

Rough Testing Terms


Animatic
Animatic Rough
Rough

Photomatic
Photomatic Rough
Rough

Terms
Terms

Live-action
Live-action Rough
Rough
Last Update:March 23, 2016

LMS
465

Animatic rough - includes a succession of


drawings/cartoons, rendered artwork, still
frames and simulated movement
Photomatic rough -successions of
photographs often showing real
people/scenery, etc. with still frames and
simulated movement
Live-action rough - employs live motion,
stand-in involvement often with nonunion
crews, limited props and opticals, and location
settings.

Last Updated:March 23, 2016

LMS SEGi education group

466

Pretesting Finished Print Ads

Portfolio
Portfolio
Tests
Tests

Readability
Readability
Tests
Tests

A
A Laboratory
Laboratory Method
Method
A
Laboratory
A Laboratory Method
Method
Includes
Test
and
Control
Ads
IncludesTest
Testand
andControl
ControlAds
Ads
Includes
Includes
Test
and
Control
Ads
Portfolio
Test
Have
Problems
Portfolio
Test
Have
Problems
Portfolio
Test
Have
Portfolio Test Have Problems
Problems
Based
Based on
on Syllables
Syllables Per
Per 100
100 Words
Words
Other
Other Factors
Factors Also
Also Considered
Considered

Dummy
Dummy
Advertising
Advertising
Vehicles
Vehicles
Last Update:March 23, 2016

LMS
467

Pretesting Finished Broadcast Ads


Theater
Theater
Tests
Theater
Tests
Theater Tests
Tests

On-Air
On-Air Tests
Tests

Measures changes in product


Measures changes in product

Insertion in TV programs in
Insertion in TV programs in

preferences
preferences
May also measure . . .
May also measure . . .
Interest in and reaction to
Interest in and reaction to
the
the commercial
commercial
Reaction from an
Reaction from an
adjective
adjective checklist
checklist
Recall of various aspects
Recall of various aspects
included
included
Interest in the brand
Interest in the brand
presented
presented
Continuous (frame-byContinuous (frame-byframe)
frame) reactions
reactions
Last Update:March 23, 2016

specific
specific markets
markets
Limitations are imposed by
Limitations are imposed by
day-after
day-after recall
recall
Physiological Measures
Physiological Measures

LMS
468

Market Testing Print

Ads

Inquiry
Inquiry Tests
Tests

Recognition
Recognition Tests
Tests

Testing
Testing

Recall
Recall Tests
Tests

Tracking
Tracking Studies
Studies
Last Update:March 23, 2016

LMS
469

Starch-Scored
Noted reflect.com
score the Magazine Ad
percentage of readers who
remember seeing the ad
Seen-associated score
the percentage who
remember seeing or
reading any part of the ad
identifying the product or
brand
Read most scorethe
percentage of readers who
+
report reading at least half

Last Update:March 23, 2016

LMS

470

Starch-Scored Natures Accents Ad

Last Update:March 23, 2016

LMS

471

Day after recall test - the most commonly performed


Market
measure.Testing Broadcast Commercials
Persuasive measures
attempting
to measure persuasive
Day
Persuasive
Day After
After
Persuasive
impact of the commercial
Recall
Measures
Recall Tests
Testson brand selection.
Measures
Diagnostic - measures to determine viewers perceptions of
the commercial including evaluations, perceptions, etc.
Comprehensive measures - a combination of each of the
Tracking
Tracking
three
previous measures.
Diagnostics
Diagnostics
Studies
Studies
Test marketing - testing of finished commercials in specified
Testing
Testing
test markets.
Single source tracking - tracking of the impact of the
commercial
from TV set to the retail store through
the use of
Comprehensive
Comprehensive
Single-source
Single-source
Measures
scanner
data
Measures
Tracking
Tracking
Tracking studies - measuring the effects on various factors
Marketing
(recall, awareness, andTest
attitudes)
over time.
Test
Marketing
Last Update:March 23, 2016

LMS
472

Comprehensive Testing by Ipsos-ASI

Last Update:March 23, 2016

LMS

+
473

Essentials of Effective Testing


Use
Use aa Consumer
Consumer
Response
Response Model
Model

Establish
Establish
Communications
Communications
Objectives
Objectives

Testing
Testing

Understand
Understand and
and
Implement
Implement
Proper
Proper Research
Research
Last Update:March 23, 2016

Use
Use Pretests
Pretests and
and
Posttests
Posttests

Use
Use Multiple
Multiple
Measures
Measures
LMS
474

FOCUS REVIEW CHAPTER

CHAPTER

Last Updated:March 23, 2016

CHAPTER

CHAPTER

CHAPTER

CHAPTER

LMS SEGi education group

CHAPTER

CHAPTER
6

475