18
Managing Mass
Communications:
Advertising,
Sales Promotions,
Events and Experiences,
and Public Relations
M.Usman Aleem
Chapter Questions
• What steps are involved in developing an
advertising program?
• How should sales promotion decisions be
made?
• What are the guidelines for effective brandbuilding events and experiences?
• How can companies exploit the potential of
public relations and publicity?
M.Usman Aleem
GEICO Relies Heavily on
TV Advertising
M.Usman Aleem
What is Advertising?
Advertising is any paid form of
nonpersonal presentation and
promotion of ideas, goods, or services
by an identified sponsor.
M.Usman Aleem
Procter & Gamble’s
Advertising History
M.Usman Aleem
Figure 18.1 The Five M’s of Advertising
M.Usman Aleem
Advertising Objectives
Informative
advertising
Persuasive
advertising
Reminder
advertising
Reinforcement
advertising
M.Usman Aleem
Factors to Consider in Setting an
Advertising Budget
Stage in the product life cycle
Market share and consumer base
Competition and clutter
Advertising frequency
Product substitutability
M.Usman Aleem
Developing the
Advertising Campaign
• Message generation
and evaluation
• Creative
development and
execution
• Legal and social
issues
M.Usman Aleem
Television
Advantages
• Reaches broad
spectrum of consumers
• Low cost per exposure
• Ability to demonstrate
product use
• Ability to portray image
and brand personality
M.Usman Aleem
Disadvantages
• Brief
• Clutter
• High cost of production
• High cost of placement
• Lack of attention by
viewers
Print Ads
Advantages
• Detailed product
information
• Ability to
communicate user
imagery
• Flexibility
• Ability to segment
M.Usman Aleem
Disadvantages
• Passive medium
• Clutter
• Unable to
demonstrate
product use
Print Ad Components
Picture
Headline
Copy
M.Usman Aleem
Signature
Print Ad Evaluation Criteria
•
•
•
•
Is the message clear at a glance?
Is the benefit in the headline?
Does the illustration support the headline?
Does the first line of the copy support or
explain the headline and illustration?
• Is the ad easy to read and follow?
• Is the product easily identified?
• Is the brand or sponsor clearly identified?
M.Usman Aleem
Media Selection
•
•
•
•
M.Usman Aleem
Reach
Frequency
Impact
Exposure
Figure 18.2 Relationship Among Trial,
Awareness, and the Exposure
Function
M.Usman Aleem
Reach x Frequency = GRPs
M.Usman Aleem
Choosing Among Major Media Types
• Target audience
and media habits
• Product
characteristics
• Message
characteristics
• Cost
M.Usman Aleem
Major Media Types
•
•
•
•
•
Newspapers
Television
Direct mail
Radio
Magazines
M.Usman Aleem
•
•
•
•
•
•
Outdoor
Yellow Pages
Newsletters
Brochures
Telephone
Internet
Table 18.2 Marketing Communication
Expenditures (2007)
Media
$
% of Total
TV
72.1
32
Radio
20.9
9
Internet
16.7
8
Magazines
23.7
11
Newspaper
45.8
20
M.Usman Aleem
Place Advertising
•
•
•
•
Billboards
Public spaces
Product placement
Point-of-purchase
M.Usman Aleem
Virtual Worlds
as a Media Vehicle
M.Usman Aleem
Measures of Audience Size
•
•
•
•
Circulation
Audience
Effective audience
Effective ad-exposed audience
M.Usman Aleem
Figure 18.3 Classification of
Advertising Timing Patterns
M.Usman Aleem
• Buyer turnover
Factors Affecting Timing
• Purchase frequency
Patterns
• Forgetting rate
M.Usman Aleem
Media Schedule Patterns
•
•
•
•
Continuity
Concentration
Flighting
Pulsing
Flighting is an advertising term for a timing pattern in which commercials are scheduled to run
during intervals that are separated by periods in which no advertising messages appear for the
advertised item. The advantage of the flighting technique is that it allows an advertiser who does
not have funds for running spots continuously to conserve money and maximize the impact of the
commercials by airing them at key strategic times.
Advertisers will often employ less costly media such as radio or newspaper during a television
flighting hiatus. This method of media planning allows the messages and themes of the advertising
campaign to continue to reach consumers while conserving advertising funds.
Pulsing combines flighting and continuous scheduling by using a lowadvertising level
all year round and heavy advertising during peak selling periods. Product categories
that are sold year round but experience a surge in sales at intermittent periods are good
candidates for pulsing.
M.Usman Aleem
Advertising media selection
(Performance)
• Advertising media selection is
the process of choosing the most
cost-effective
media
for
advertising, to achieve the required
coverage
and
number
of
exposures in a target audience.
M.Usman Aleem
Advertising media selection (Performance)
•
•
•
•
Frequency:
To maximize overall awareness, the advertising must reach the maximum number of the
target audience. There is a limit for the last few percent of the general population who
don't see the main media advertisers use. These are more expensive to reach. The
'cumulative' coverage cost typically follows an exponential curve. Reaching 90 percent can
cost double what it costs to reach 70 percent, and reaching 95 percent can double the cost
yet again. In practice, the coverage decision rests on a balance between desired coverage
and cost. A large budget achieves high coverage—a smaller budget limits the ambitions of
the advertiser.
Frequency—Even with high coverage, it is insufficient for a target audience member to
have just one 'Opportunity To See' (OTS) the advertisement. In traditional media, around
five OTS are believed required for a reasonable impact. To build attitudes that lead to
brand switching may require more. To achieve five OTS, even in only 70 percent of the
overall audience, may require 20 or 30 peak-time transmissions of a commercial, or a
significant number of insertions of press advertisements in the national media. As these
figures suggest, most consumers simply don't see the commercials that often (whereas
the brand manager, say, sees every one and has already seen them many times before
their first transmission, and so is justifiably bored).
The life of advertising campaigns can often extend beyond the relatively short life usually
expected. Indeed, as indicated above, some research shows that advertisements require
significant exposure to consumers before they even register. As David Ogilvy long ago
recommended, "If you are lucky enough to write a good advertisement, repeat it until it
stops selling. Scores of good advertisements have been discarded before they lost their
potency."
M.Usman Aleem
Advertising media selection (Performance)
• Spread
• More sophisticated media planners also look at the 'spread' of
frequencies. Ideally all of the audience should receive the average
number of OTS. Those who receive fewer are insufficiently motivated,
and extra advertising is wasted on those who receive more. It is, of
course, impossible to achieve this ideal. As with coverage, the pattern is
weighted towards a smaller number—of heavy viewers, for example—
who receive significantly more OTS, and away from the difficult last few
percent. However, a good media buyer manages the resulting spread of
frequencies to weigh it close to the average, with as few audience
members as possible below the average.
• Frequency is also complicated by the fact that this is a function of time.
A pattern of 12 OTS across a year may be scarcely noticed, whereas 12
OTS in a week is evident to most viewers. This is often the rationale for
advertising in `bursts' or `waves' (sometimes described as `pulsing').
This concentrates expenditure into a number of intense periods of
advertising, spread throughout the year, so brands do not remain
uncovered for long periods.
M.Usman Aleem
Evaluating Advertising
Effectiveness
• Communication-Effect Research
• Consumer feedback method
• Portfolio tests
• Laboratory tests
• Sales-Effect Research
M.Usman Aleem
Figure 18.4 Formula for Measuring
Sales Impact of Advertising
M.Usman Aleem
What is Sales Promotion?
Sales promotions consist of a
collection of incentive tools, mostly
short term, designed to stimulate
quicker or greater purchase of
particular products or services by
consumers or the trade.
M.Usman Aleem
Sales Promotion Tactics
Consumer-directed
• Samples
• Coupons
• Cash refund offers
• Price offs
• Premiums
• Prizes
• Patronage rewards
• Free trials
• Tie-in promotions
M.Usman Aleem
Trade-directed
• Price offs
• Allowances
• Free goods
• Sales contests
• Spiffs
• Trade shows
• Specialty
advertising
Using Sales Promotions
Establish objectives
Select tools
Develop program
Pretest
Implement and control
Evaluate results
M.Usman Aleem
Events and Experiences
• $14.9 billion spent
on sponsorship
•
•
•
•
•
66% sports
11% tours
5% festivals, fairs
5% arts
10% causes
M.Usman Aleem
Why Sponsor Events?
• To identify with a particular target market or
life style
• To increase brand awareness
• To create or reinforce consumer perceptions
of key brand image associations
• To enhance corporate image
• To create experiences and evoke feelings
• To express commitment to community
• To entertain key clients or reward employees
• To permit merchandising or promotional
opportunities
M.Usman Aleem
Using Sponsored Events
Establish objectives
Choose events
Design programs
Measure effectiveness
M.Usman Aleem
Ideal Events
Audience closely matches target market
Event generates media attention
Event is unique with few sponsors
Event lends itself to ancillary activities
Event enhances brand image of sponsor
M.Usman Aleem
Customer Experience Management:
Experience Providers
•
•
•
•
Communications
Identity
Product presence
Co-branding
M.Usman Aleem
•
•
•
•
Environments
Internet
Electronic media
People
Steps in the CEM Framework
Analyze the customer’s experiential world
Build the experiential platform
Design the brand experience
Structure the customer interface
Engage in continuous innovation
M.Usman Aleem
Tasks Aided by Public Relations
•
•
•
•
•
Launching new products
Repositioning a mature product
Building interest in a product category
Influencing specific target groups
Defending products that have
encountered public problems
• Building the corporate image in a way
that reflects favorable on products
M.Usman Aleem
Public Relations Functions
•
•
•
•
•
Press relations
Product publicity
Corporate communications
Lobbying
Counseling
M.Usman Aleem
Major Tools in Marketing PR
•
•
•
•
•
•
Publications
Events
Sponsorships
News
Speeches
Public Service
Activities
• Identity Media
M.Usman Aleem
Decisions in Marketing PR
Establish objectives
Choose messages
Choose vehicles
Implement
Evaluate results
M.Usman Aleem
Marketing Debate
 Should marketers test advertising?
Take a position:
1. Ad pretesting is an unnecessary waste
of marketing dollars.
or
2. Ad pretesting provides an important
diagnostic function for marketers as to the
likely success of an ad campaign.
M.Usman Aleem
Marketing Discussion
 What are some of your favorite TV
ads? Why?
 How effective are the message and
creative strategies?
 How are they building brand equity?
M.Usman Aleem