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Chapter 3

Chapter 3. Advertising and the Marketing Process. Learning Objectives. Learn how advertising relates to marketing. An overview of an IMC planning process. Understand advantages and disadvantages of various forms of marketing communications. Review various positioning strategies.

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Chapter 3

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  1. Chapter 3 Advertising and the Marketing Process

  2. Learning Objectives • Learn how advertising relates to marketing. • An overview of an IMC planning process. • Understand advantages and disadvantages of various forms of marketing communications. • Review various positioning strategies.

  3. The Marketing Plan A Marketing Plan is a Blueprint of Planned Marketing Activity That Strives to Create a Competitive Advantage for an Individual Product, a Product Line, or an Idea. Research Stage Analyze Marketing Environment Strategic Stage Develop Objectives and Strategies Tactical Stage Specific Tools Are Selected Implementation Stage Coordinate Strategy With Marketing Activities Evaluation Stage Assess How Well Objectives Were Achieved

  4. Advertising’s Role in the Marketing Plan (Fig. 3.1) Advertising is One of Several Marketing Communication Options.

  5. The Promotional Mix

  6. An Integrated Marketing Communications Planning Model Review of marketing plan Analysis of promotional program situation Analysis of the communications process Budget determination Develop integrated marketing communication program

  7. An Integrated Marketing Communications Planning Model (cont’d) Advertising Direct Marketing Sales promotion PR/ Publicity Personal selling Advertising objectives Direct Marketing objectives Sales Promotion objectives PR/publicity objectives Personal Selling objectives Message strategy Direct Marketing strategy Sales Promotion strategy PR/publicity strategy Personal Selling strategy Media strategy Integrate & implement marketing communications strategies Monitor, evaluate, and control integrated marketing communications program

  8. EXH 5-9

  9. Allocation of Advertising and Promotional Budgets (in percentages)

  10. Advertising: Advantages • Ability to control message • Cost effective way to reach a large target market • Ability to create images and differentiate brands • Can sometimes strike responsive reaction from customers

  11. Advertising: Disadvantages • High costs of producing and placing ads • Difficult to determine effectiveness • Credibility problems • Clutter

  12. Sales Promotion: Advantages • Provides extra incentive to purchase product • Way to appeal to price sensitive consumer • Can generate extra interest in ads • Easier to measure efforts

  13. Sales Promotion: Disadvantages • Often only has short term impact • Often abused • Can lead to promotional wars • Often does not contribute to brand image

  14. Publicity/PR • Advantages -- Credibility -- Low cost way to communicate • Disadvantages -- Lack of control -- Difficult to get media cooperation -- Can be negative

  15. Personal Selling: Advantages • Communication flexibility • Can communicate complex information • Can target to specific markets and customers • Direct Feedback

  16. Personal Selling: Disadvantages • High cost per contract • Expensive way to reach large number of customers • Difficult to communicate uniform message

  17. Direct Marketing: Advantages • Changes in society have made consumers receptive to direct-marketed products • Allows for more selectivity and target marketing • Can customize message

  18. Direct Marketing: Disadvantages • Consumers and businesses receive too much unsolicited direct mail and phone calls • Image problems for direct-marketed products • Clutter problems

  19. Breakdown of Spending on Event Sponsorship

  20. Most Common Reasons Marketers Sponsor Events • Increase awareness of company or product name. • Identify with a particular lifestyle. • Differentiate product from competitors. • Enhance commitment to community or ethnic group. • Entertain key clients; business-to-business marketing. • Create merchandising opportunities. • Shape or reinforce the public’s perception of a product’s attributes • Affect the bottom line.

  21. How to measure the effectiveness of sponsorship (DDBNeedham) • Persuasion Impact = • (Strength of the Link) x (Duration of the Link) x { (Gratitude Felt due to the Link) + (Perceptual Change due to the Link)} • Strength of the link = % of the target who recognize the link between the sponsoring brand and the event or organization • Gratitude = “I feel I am contributing to the event by buying the sponsoring brands”

  22. Product Differentiation • A Competitive Marketing Strategy Designed to • Create Product Differences in the Eyes • of the Consumer. Tangible Differences Product Features, Color, Size, Quality of Performance, Options or Price Intangible Differences Image That Implies Difference such as Status, Enjoyment or Masculinity

  23. Positioning Guidelines • Marketers can position a product, service, or idea in the following ways: • By attribute (Pentium III offers 3-dimensional graphics) • By price (Wal-Mart means value) • By its ability to surpass the competition (Ford beats Chevy) • By application (Tylenol Flu is for flu attacks) • By product user (TeenPeople is the favorite magazine of high school students) • By product class (Carnation Instant Breakfast is a breakfast food)

  24. Review • Learn how advertising relates to marketing. • An overview of an IMC planning process. • Understand advantages and disadvantages of various forms of marketing communications. • Review various positioning strategies.

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