Marketing Communications &
Advertising
12
Prepared by
Deborah Baker
Texas Christian University
Chapter 12
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1
Learning Objectives
1. Discuss the elements of the promotional mix
and their role in the marketing mix
2. Describe the communication process
3. Explain promotional goals and tasks, and the
AIDA concept
4. Describe the factors that affect the
promotional mix
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2
Learning Objectives
5. Discuss the effects of advertising on market
share and consumers
6. Identify the major types of advertising
7. Discuss the creative decisions in developing
an advertising campaign
8. Describe media evaluation and selection
techniques
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3
Learning Objective
1
Discuss the elements of the
promotional mix and their role
in the marketing mix
Online
http://www.easports.com
1
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4
Promotion
Promotion
Communication by marketers that
informs, persuades, and reminds
potential buyers of a product in
order to influence an opinion or
elicit a response.
1
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5
Promotional Strategy
Promotional Strategy
A plan for the optimal use of the
elements of promotion:




Advertising
Public Relations
Sales Promotion
Personal Selling
Competitive
Advantage
1
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6
The Role of Promotion
Overall
Marketing
Objectives
•
•
•
•
Marketing Mix
Product
Distribution
Promotion
Price
Target Market
1
Promotional Mix
•
•
•
•
Advertising
Public Relations
Sales Promotion
Personal Selling
Promotion Plan
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Competitive Advantage
High product quality
Rapid delivery
Low prices
Excellent service
Unique features
1
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8
Promotional Mix
Promotional Mix
Combination of promotion tools used
to reach the target market and fulfill
the organization’s overall goals.

Advertising
 Public Relations
 Sales Promotion
 Personal Selling
2
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Advertising
Advertising
Impersonal, one-way
mass communication about a
product or organization that is paid
for by a marketer.
2
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Advertising Media
Traditional
Advertising Media








2
Television
Radio
Newspapers
Magazines
Books
Direct mail
Billboards
Transit cards
Electronic
Advertising Media



Internet
Electronic mail
Interactive video
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Public Relations
Public Relations
The marketing function that
evaluates public attitudes, identifies
areas within the organization that the
public may be interested in, and
executes a program of action to earn
public understanding and acceptance.
2
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Functions of Public Relations
Evaluates public
attitudes
2
Identifies areas
of public interest
Executes
programs to
“win” public
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13
Sales Promotion
Sales Promotion
Marketing activities--other than
personal selling, advertising, and
public relations--that stimulate
consumer buying and
dealer effectiveness.
2
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14
Sales Promotion
Free samples
Contests
Premiums
End
Consumers
Company
Employees
Trade Shows
Vacation Giveaways
Trade Customers
Coupons
2
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Personal Selling
Personal Selling
Planned presentation to one or more
prospective buyers for the purpose of
making a sale.
2
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Personal Selling
Traditional
Selling
2
Relationship
Selling
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Learning Objective
2
2
Describe the
communication process
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Communication
Communication
The process by which we exchange
or share meanings through a
common set of symbols.
2
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19
Marketing Communication
Categories of
Communication
Interpersonal
Communication
2
Mass
Communication
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The Communication Process
As Senders
2
As Receivers
 Inform
 Develop messages
 Persuade
 Adapt messages
 Remind
 Spot new
communication
opportunities
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21
The Communication Process
Noise
Sender
Encoding
Message
Message
Channel
Feedback
Channel
2
Decoding
Message
Receiver
Online
http://www.mcdonalds.com
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Characteristics of Advertising
Advertising
Communication Mode
Communication Control
Low
Feedback Amount
Little
Feedback Speed
Delayed
Message Flow Direction
One-way
Message Content Control
Yes
Sponsor Identification
Yes
Reaching Large Audience
Message Flexibility
2
Indirect and non-personal
Fast
Same message to all audiences
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Characteristics of Public Relations
Public Relations
Communication Mode
Communication Control
Feedback Amount
Moderate to low
Little
Feedback Speed
Delayed
Message Flow Direction
One-way
Message Content Control
No
Sponsor Identification
No
Reaching Large Audience
Message Flexibility
2
Usually indirect, non-personal
Usually fast
Usually no direct control
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Characteristics of Sales Promotion
Sales Promotion
Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Moderate to low
Little to moderate
Varies
Mostly one-way
Message Content Control
Yes
Sponsor Identification
Yes
Reaching Large Audience
Message Flexibility
2
Usually indirect and non-personal
Fast
Same message to varied target
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Characteristics of Personal Selling
Personal Selling
Communication Mode
Communication Control
High
Feedback Amount
Much
Feedback Speed
Message Flow Direction
Immediate
Two-way
Message Content Control
Yes
Sponsor Identification
Yes
Reaching Large Audience
Message Flexibility
2
Direct and face-to-face
Slow
Tailored to prospect
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Learning Objective
3
3
Explain the goals and
tasks of promotion,
and the AIDA concept
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Goals and Tasks of Promotion
Informing
PLC Stages:
Introduction
Early Growth
PLC Stages:
Growth
Maturity
3
Reminding
PLC Stages:
Maturity
Target
Audience
Persuading
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Goals and Tasks of Promotion
Informative Objective
3

Increase awareness

Explain how product works

Suggest new uses

Build company image
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Goals and Tasks of Promotion
Persuasive Objective
 Encourage brand switching
 Change customers’ perception of product
attributes
 Influence buying decision
 Persuade customers to call
3
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Goals and Tasks of Promotion
Reminder Objective
3

Remind customers that product
may be needed

Remind customers where
to buy product

Maintain customer awareness
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The AIDA Concept
AIDA Concept
Model that outlines the process for
achieving promotional goals in
terms of stages of consumer
involvement with the message.
Online
http://www.kohler.com
3
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AIDA and the Promotional Mix
Attention
Interest
Desire
Action
Advertising
Public
Relations
Sales
Promotion
Personal
Selling
Very
effective
3
Somewhat
effective
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Not
effective
33
Learning Objective
4
4
Describe the factors
that affect the
promotional mix
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Factors Affecting the
Choice of Promotional Mix
Nature of the product
Stage in PLC
Target market factors
Type of buying decision
Promotion funds
Push or pull strategy
4
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Sales ($)
Product Life Cycle and the
Promotional Mix
Maturity
Introduction
Decline
Growth
Time
Light
Heavy use of
Advertising; Advertising;
prePR for
introduction awareness;
publicity
sales
promotion
for trial
4
Advertising,
PR, brand
loyalty;
personal
selling for
distribution
Ads
decrease;
sales
promotion;
personal
selling;
reminder &
persuasive
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AD/PR
decrease;
limited
sales
promotion;
personal
selling for
distribution
36
Target Market Characteristics
For…
Advertising

Widely scattered
market

Informed buyers

Repeat buyers
Sales Promotion
Less Personal Selling
4
Online
http://www.radioguide.com
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Type of Buying Decision
Routine
Type of
Buying Decision
Affects
Promotional
Mix Choice
4
Advertising
Sales Promotion
Advertising
Not Routine
or Complex
Public Relations
Complex
Personal Selling
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Available Funds
 Trade-offs with funds
available
 Number of people in
target market
 Quality of communication
needed
 Relative costs of
promotional elements
4
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Push and Pull Strategies
PUSH STRATEGY
Manufacturer
promotes to
wholesaler
Wholesaler
promotes to
retailer
Retailer
promotes to
consumer
Consumer
buys from
retailer
Orders to manufacturer
PULL STRATEGY
Manufacturer
promotes to
consumer
Consumer
demands
product
from retailer
Retailer
demands
product
from wholesaler
Wholesaler
demands
product from
manufacturer
Orders to manufacturer
4
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Integrated Marketing Communications
Integrated Marketing
Communications
A method of carefully coordinating all
promotional messages to assure the
consistency of messages at every
contact point where a company meets
the consumer.
4
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Learning Objective
5
5
Discuss the effect
of advertising on market
share and consumers
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Advertising
 U.S. advertising expected to reach $300 billion
per year in 2006
 Top 200 brands account for 37 percent of
media spending
 The advertising industry is small—only 13,000
employed in advertising agencies
 Ad budgets of some firms exceed over $2
billion per year—over $6 million per day!
5
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Advertising and Market Share
5

New brands spend proportionately more for
advertising than old ones

A certain level of exposure is needed to affect
purchase habits

Beyond a certain level, diminishing returns
set in
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Advertising and the Consumer
 Average U.S. citizen is exposed to hundreds of
ads each day
 Advertising may change a consumer’s attitude
toward a product
 Advertising can affect
consumer ranking
of brand attributes
5
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Learning Objective
6
6
Identify the major
types of advertising
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Major Types of Advertising
6
Institutional
Advertising
Designed to enhance a company’s
image rather than promote a
particular product.
Product
Advertising
Designed to tout the benefits of a
specific good or service.
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Major Types of Advertising
Institutional
Advertising
Enhance
corporation’s identity
Advocacy
advertising
Pioneering
Product
Advertising
Competitive
Comparative
6
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Product Advertising
Pioneering
 Stimulates primary demand for
new product or category
 Used in the PLC introductory stage
Competitive
 Influences demand for brand in the
growth phase of the PLC
 Often uses emotional appeal
Comparative
2
 Compares two or more competing
brands’ product attributes
 Used if growth is sluggish, or if
competition is strong
Online
http://www.pizzahut.com
http://www.papajohns.com
6
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Learning Objective
7
7
Discuss the creative decisions
in developing an
advertising campaign
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Steps in Creating an Advertising Campaign
Determine the
advertising objectives
Make creative decisions
Make media decisions
Evaluate the campaign
7
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Setting Objectives: The DAGMAR Approach
Define target audience
Define desired percentage change
Define the time frame for change
7
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Creative Decisions
Identify
product benefits
Develop and evaluate
advertising appeals
Execute
the message
Evaluate the
campaign’s effectiveness
7
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Identify Product Benefits
Attribute
Benefit
7
“Powerade’s new line has been
reformulated to combine the scientific
benefits of sports drinks with B vitamins
and to speed up energy metabolism.”
So?
“So, you’ll satisfy your thirst with a
great-tasting drink that will power you
throughout the day.”
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Common Advertising Appeals
Profit
Product saves, makes, or protects money
Health
Appeals to body-conscious or health seekers
Love or romance
Used in selling cosmetics and perfumes
Fear
Social embarrassment, old age, losing health
Admiration
Reason for use of celebrity spokespeople
Convenience
Used for fast foods and microwave foods
Fun and pleasure
Key to advertising vacations, beer, parks
Vanity and egotism Used for expensive or conspicuous items
Environmental
Centers around environmental protection
Consciousness
7
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Unique Selling Proposition
Unique Selling Proposition
A desirable, exclusive, and believable
advertising appeal selected as the
theme for a campaign.
7
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Executing the Message
Scientific
Slice-of-Life
Musical
Demonstration
Mood or
Image
7
Lifestyle
Common
Executional
Styles
Real/
Animated
Product
Symbols
Spokesperson/
Testimonial
Fantasy
Humorous
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Learning Objective
8
8
Describe media evaluation
and selection techniques
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Major Types of Advertising Media
Newspapers
Magazines
Radio
Television
Outdoor Media
Internet
Alternative Media
8
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Newspapers
Advantages







8
Geographic selectivity
Short-term advertiser
commitments
Immediacy
Year-round readership
High individual market
coverage
Co-op and local tie-in
availability
Short lead time
Disadvantages




Limited demographic
selectivity
Limited color
Low pass-along rate
May be expensive
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Magazines
Advantages
8

Good reproduction

Demographic selectivity

Regional/local selectivity

Long advertising life

High pass-along rate
Disadvantages

Long-term advertiser
commitments

Slow audience build-up

Limited demonstration
capabilities

Lack of urgency

Long lead time
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Radio
Advantages
8
Disadvantages

Low cost

No visual treatment

Immediacy of message

Short advertising life

Short notice okay


No seasonal audience
change
High frequency to generate
retention

Background distractions

Highly portable

Commercial clutter

Short-term advertiser
commitments

Entertainment carryover
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Television
Advantages






Wide, diverse audience
Low cost per thousand
Creative and
demonstrative
Immediacy of messages
Entertainment carryover
Demographic selectivity
with cable
Disadvantages







8
Short life of message
Consumer skepticism
High campaign cost
Little demographic
selectivity with stations
Long-term advertiser
commitments
Long lead times for
production
Commercial clutter
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Outdoor Media
Advantages
8
Disadvantages

Repetition

Short message

Moderate cost

Lack of demographic
selectivity

Flexibility

High “noise” level

Geographic selectivity
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Internet
Advantages
Disadvantages

Fast growing


Ability to reach narrow
target audience
Difficult to measure ad
effectiveness and ROI


Short lead time
Ad exposure relies on “click
through” from banner ads

Not all consumers have
access to internet

Moderate cost
Online
http://www.fox.com
http://www.abc.com
8
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Examples of Alternative Media
Fax Machines
Video Shopping Carts
Computer
Screen Savers
CD-ROMs
Interactive Kiosks
Ads in
Movies and Videos
Online
http://www.looksmart.com/aboutus/media
http://www.yahoo.com/info/advertising
Advertainments
8
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http://www.bmw.com
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Media Mix Decisions
8
Cost per
Contact
The cost of reaching one
member of the target market.
Reach
The number of target consumers
exposed to a commercial at least
once during a time period.
Frequency
The number of times an individual is
exposed to a message during a time
period.
Audience
Selectivity
The ability of an advertising medium
to reach a precisely defined market.
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Media Scheduling
8
Continuous
Media Schedule
Advertising is run steadily
throughout the period.
Flighted
Media Schedule
Advertising is run heavily every
other month or every two weeks.
Pulsing
Media Schedule
Advertising combines continuous
scheduling with flighting.
Seasonal
Media Schedule
Advertising is run only when the
product is likely to be used.
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