Key Concepts
Developing and Managing An
Advertising Program
 Advertising—any paid form of non-personal
presentation and promotion of ideas, goods, or
services by an identified sponsor.
 Major decisions (Five Ms):
 Mission—What are the objectives?
 Money—How much can be spent?
 Message—What message should be sent?
 Media—What media should be used?
 Measurement—How should the results be evaluated?
Setting the Objectives
 Advertising goal (or objective)—a specific
communication task and achievement level to be
accomplished with a specific audience in a specific
period.
 Classified according to their aim:
 Inform
 Persuade
 Remind
 Reinforce
Deciding on the Advertising Budget
 Factors to consider:
 Product life cycle stage
 Market share and consumer base
 Competition and clutter
 Advertising frequency
 Product substitutability
Developing the Advertising
Campaign
 Message generation and evaluation
 Creative development and execution
 Legal and social issues
Deciding on Media and Measuring
Effectiveness
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Deciding on reach, frequency, and impact
Choosing among major media types
Selecting specific vehicles
Deciding on media timing and allocation
Evaluating advertising effectiveness
Deciding on Reach, Frequency, and
Impact
 Reach (R)—the number of different persons or
households that are exposed to a particular media
schedule at least once during a specified period.
 Frequency (F)—The number of times within the
specified period that an average person or household
is exposed to the message.
 Impact (I)—the qualitative value of an exposure
through a given medium.
Choosing Among Major Media
Types
 Consider four main variables:
 Target audience’s media habits
 Product
 Message
 Cost
Alternative Advertising Options
 Place advertising (or out-of-home advertising) is a
broad category including many creative and
unexpected forms to grab consumers’ attention where
they work, play, and shop.
 Billboards
 Public spaces
 Product placement
 Point-of-purchase
Selecting Specific Vehicles
 Audience size can be measured by:
 Circulation—number of physical units carrying the
advertising.
 Audience—number of people exposed to the vehicle.
 Effective audience—number of people with target
audience characteristics exposed to the vehicle.
Deciding on Media Timing
and Allocation
 Continuity—exposures appear evenly throughout a
given period.
 Concentration—spending all ad dollars in a single
period.
 Flighting—advertise for a period, followed by a period
with no advertising, followed by a second period of
advertising activity.
 Pulsing—continuous advertising at low-weight levels
reinforced periodically by waves of heavier activity.
Evaluating Advertising
Effectiveness
 Communication-effect research (called copy
testing)—seeks to determine whether an ad is
communicating effectively.
 Pretesting—before an ad is placed.
 Posttesting—after an ad is placed.
 Formula for measuring sales impact of advertising:
 Share of expenditures
 Share of voice
 Share of mind and heart
 Share of market
Sales Promotion
 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.
Sales Promotion Tools
Consumer promotions
 Samples
 Coupons
 Cash refund offers
 Price packs
 Premiums
 Frequency programs
 Prizes
 Patronage awards
 Free trials
 Warranties
 Tie-in and cross promotions
 Point-of-purchase displays and
demonstrations
Trade promotions
 Price-off
 Allowances
 Free goods
Business and sales-force
promotions
 Trade shows and conventions
 Sales contests
 Specialty advertising
Sales Promotion Objectives
 Attract new users
 Reward loyal customers
 Increase repurchase rates
 Attract brand switchers
Advertising vs. Promotion
 Reasons for decreasing advertising-to-sales-
promotions ratios:
 Top management acceptance of promotion
 Increase in number of brands
 Competitors use promotions frequently
 Brands seen as similar
 Consumers more price-oriented
 Trade demands more deals
 Declining advertising efficiency
Major Sales Promotion Decisions
 Establish objectives
 Select the tools
 Develop the program
 Pretest the program
 Implement and control program
 Evaluate the results
Events Objectives
 Identify with a particular
 Create experiences and evoke
target market or life style
 Increase awareness of
company or product name
 Create or reinforce
perceptions of key brand
image associations
 Enhance corporate image
feelings
 Express commitment to the
community or on social
issues
 Entertain key clients or
reward key employees
 Permit merchandising or
promotional opportunities
Major Sponsorship Decisions
 Choosing event opportunities
 Designing sponsorship programs
 Event creation
 Measuring sponsorship activities
Creating Experiences
 Experiential marketing not only communicates
features and benefits but also connects a product or
service with unique and interesting experiences.
Public Relations
 Public—any group that has an actual or potential
interest in or impact on a company’s ability to achieve
its objectives.
 Public relations (PR)—includes a variety of
programs to promote or protect a company’s image or
individual products.
PR Department Functions
 Press relations
 Product publicity
 Corporate communication
 Lobbying
 Counseling
Marketing Public Relations (MPR)
 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
favorably on its products
Major Tools in Marketing PR
 Publications
 Speeches
 Events
 Public-service activities
 Sponsorships
 Identity media
 News
Major Decisions in Marketing PR
 Establish marketing objectives
 Choose messages and vehicles
 Implement and evaluate the plan