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Chapter 18 Managing Mass Communication, Advertising, Sales Promotion, Public Relations, and Direct Marketing . In this chapter , we will address the following questions: What steps are involved in developing an advertising program?
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Chapter 18 Managing Mass Communication, Advertising, Sales Promotion, Public Relations, and Direct Marketing dr wady
In this chapter , we will address the following questions: • What steps are involved in developing an advertising program? • What explains the growing use of sales promotion, and how are sales-promotion decisions made? • How can companies exploit the potential of public relations and publicity? • How can companies use integrated direct marketing for competitive advantage? dr wady
The Promotion Mix Marketing Mix P1: Product P2: Place P3: Price • Promotion Mix • Advertising • Publicity • Packaging • Direct marketing • Sponsorship • Personal selling • Sales promotion • Public relation P4:Promotion dr wady
Advertising Any Paid Form of Nonpersonal Presentation by an Identified Sponsor. Short-term Incentives to Encourage Trial or Purchase. SalesPromotion Protect and/or Promote Company’s Image/products. Public Relations Personal Presentations. Direct Communications With Individuals to Obtain an Immediate Response. Direct Marketing The Marketing Communications Mix Personal Selling dr wady
What is Advertising? Any form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. U.S. advertisers spend in excess of $175 billion each year. Advertising is used by: • Business firms, • Nonprofit organizations, • Professionals, • Social Agencies. dr wady
Ways to Handle Advertising Advertising Departments in Larger Companies Sales Departments in Small Companies Advertising Agency Firm that Assists Companies in Planning, Preparing, Implementing and Evaluating Their Advertising Programs. dr wady
MEASUREEMENT MISSION MEDIA The Five Ms Of Advertising money MEEEAGE dr wady
The meaning of The Five Ms Of Advertising What are the advertising objective? Mission How much can be spend ? money What message should send? Message Media What media should be used? Measurement How should the results be evaluated? dr wady
Objectives Setting Major Decisions in Advertising Budget Decisions Message Decisions Media Decisions Campaign Evaluation dr wady
Setting Objectives • Advertising Objectives • Specific Communication Task • Accomplished with a Specific Target Audience • During a Specific Period of Time Informative Advertising Build Primary Demand Persuasive Advertising Build Selective Demand Reminder Advertising Keeps Consumers Thinking About a Product. Comparison Advertising Compares One Brand to Another dr wady
The advertising objectives should emerge from a thorough analysis of the current marketing situation If the product class is mature , the company is the market leader and brand usage is low. Then the proper objective should be to stimulate more usage If the product class is new, the company is not the market leader But the brand is superior the leader Then the proper objective is The convince the market of the brands superiority dr wady
Setting the Advertising Budget Advertising Budget Methods Affordable, Percentage of Sales, Competitive-Parity and Objective-and-Task Product Differentiation Stage in the Product Life Cycle Factors in Setting the Advertising Budget Advertising Frequency Market Share Competition and Clutter dr wady
Plan a Message Strategy General Message to Be Communicated to Customers Click to add title Advertising Strategy Creating Advertising Messages Develop a Message Focus on Customer Benefits Creative Concept “Big Idea” Visualization or Phrase Combination of Both Advertising Appeals Meaningful Believable Distinctive dr wady
Advertising StrategyMessage Execution Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest. Slice of Life Testimonial Evidence Scientific Evidence Lifestyle Typical Message Execution Styles Fantasy Technical Expertise Personality Symbol Mood or Image Musical dr wady
Step 1. Decide on Reach, Frequency, and Impact Step 2. Choosing Among Major Media Types Advertising StrategySelecting Advertising Media Step 3. Selecting Specific Media Vehicles Step 4. Deciding on Media Timing Step 5. Deciding on geographical Media allocation dr wady
Step 1. Decide on Reach, Frequency, and Impact The number of different person or households Exposed to a particular media schedule at least once During a specified time period REACH (R) The number of times within the specified time period That average person or households is exposed To the message FREQUENCY (F) IMPACT (I) The qualitative value of an exposure through a given medium dr wady
Step 2. Choosing Among Major Media Types • Target audience media habits. • Product characteristics. • Message characteristics. • Cost. dr wady
Step 3. Selecting Specific Media Vehicles • The planner has to rely on measurement service the provide estimates of: • Audience size , composition, and media cost. • Audience size has several possible measures: • Circulation • Audience • Effect audience • Effective ad-exposed audience dr wady
Step 4. Deciding on Media Timing dr wady
Step 5. Deciding on geographical Media allocation The company makes “ notional buys “ when it placed advertising on national TV net or in nationally circulated magazines. The company makes “ local buys “ when it placed advertising on local newspapers, radio, or outdoor site . dr wady
Advertising Program Evaluation Advertising Evaluation Communication Effects Is the Ad Communicating Well? Sales Effects Is the Ad Increasing Sales? dr wady
Consumer feed back • Portfolio • Laboratory Test • Sales Effect Research dr wady
What is Sales Promotion? • Mass communication technique that offers short-term incentives to encourage purchase or sales of a product or service. • Rapid growth in the industry has been achieved because: • Product managers are facing more pressure to increase their current sales, • Companies face more competition, • Advertising efficiency has declined, • Consumers have become more deal oriented. dr wady
Consumer - Promotion Tools Short-Term Incentives to Encourage Purchase or Sales of a Product or Service. Consumer-PromotionObjectives Consumer-Promotion Tools Entice Consumers to Try a New Product Samples Advertising Specialties Coupons Lure Customers Away From Competitors’ Products Patronage Rewards Patronage Rewards Cash Refunds Get Consumers to “Load Up’ on a Mature Product Contests Price Packs Sweepstakes Hold & Reward Loyal Customers Premiums Games Point-of-Purchase Displays Consumer Relationship Building dr wady
Business - Promotion Tools Short-Term Incentives That are Directed to Industrial Customers. Business-PromotionTools Business-Promotion Objectives Conventions Generate Business Leads Trade Shows Stimulate Purchases Reward Customers Sales Contests Motivate Salespeople dr wady
Decide on the Size of the Incentive Developing the Sales Promotion Program Set Conditions for Participation Determine How to Promote and Distribute the Promotion Program Determine the Length of the Program Evaluate the Program dr wady
What is Public Relations? • Building good relations with the company’s various publics by obtaining favorable publicity, building up a good “corporate image” and handling or heading off unfavorable rumors, stories and events. • Major functions are: • Press Relations or Press A gentry • Product Publicity • Public Affairs • Lobbying • Investor Relations • Development dr wady
Major Public Relations Tools Web Site Public Service Activities News Corporate Identity Materials Speeches Special Events Audiovisual Materials Written Materials dr wady
Setting Public Relations Objectives Choosing the Public Relations Messages and Vehicles Click to add title Major Public Relations Decisions Implementing the Public Relations Plan Evaluating Public Relations Results dr wady
Direct Marketing Direct marketing is use of consumer- direct (CD) channels to reach and deliver goods and services to consumer without using marketing middlemen CHANNELS AS . Face to face . kiosks . Direct mail . web sites . Catalog . mobile devices . Telemarketing . Interactive TV dr wady
THANK YOU dr wady