Chapter 10

1. Chapter 10 Advertisements, Promotions, and News Releases Deny A. Kwary www.kwary.net

2. Main Topics • Marketing Mix • Promotion Mix • Planning an advertising and promotional campaign • Communicating with an advertisement • Planning a news release

3. Marketing Mix (the four Ps) • Product: • Product variety, quality, design, features, brand name, packaging, sizes, services, warranties. • Price • List price, Discounts, Allowances, Payment period, Credit terms • Place • Channels, Locations, Transport • Promotion • Advertising, sales promotion, public relations, personal selling, direct marketing.

4. Promotional mix • ‘Promotional mix’ – term given to the combination of promotional approaches that an organisation uses to communicate with the world around it.

5. Promotion Mix (Promotion Channels) • Advertising • Sales promotion • Public relations • Personal selling • Direct marketing

6. Focus on Three Channels • Advertising: Any paid form of nonpersonal presentation and promotion of a product. • Sales promotion: Short term incentives to encourage trial or purchase of a product. • Public relations: A variety of programs designed to promote and/or protect a company’s image or its individual products.

7. Advertising and Sales promotion Can serve a variety of communication objectives: • creating or increasing awareness (e.g. informing the target market of a new service); • informing or educating (e.g. explaining how to make better use of a service); • stimulating various types of ‘purchase’ decision (e.g. encouraging people to buy a product).

8. Planning an advertising andpromotional campaign • Imagine that you are the product manager responsible for launching Vegetale in your organisation’s Northern European sales territory. • It is a new, vegetable-based, high-protein food that is being positioned as an attractive alternative to meat. • How would you develop an advertising campaign, as the product moves from the development stage to its initial launch in this market?

9. Planning an advertising andpromotional campaign (continued) 1. Marketing research e.g. (1) Who buys food for the household? (2) What are the existing alternatives to meat, and how are they perceived by both consumers and non-consumers? (3) What do people already know and think of Vegetale and the company’s other products?

10. Planning an advertising andpromotional campaign (continued) 2. Identifying target market(s) e.g. In the Vegetale example, your research suggests that the demographic profile is likely to comprise females aged 20 to 35 who are professionals and skilled workers (socio-economic groups).

11. Market Segmentation • Region • Density • Geographic • Age • Gender • Occupation • Education • Demographic • Social class • Lifestyle • Psychographic • Occasions • Loyalty status • Behavioral

12. Mass Marketing Versus Target Marketing

13. Planning an advertising andpromotional campaign (continued) 3. Developing campaign objectives • 25% unprompted recall of Vegetale in your target market, by the end of a 3-month media campaign 4. Planning and budgeting • the channels to be used (e.g. newspaper and television adverts, in-store promotions); • the timescale of the campaign;

14. Planning an advertising andpromotional campaign (continued) 5. Drafting material – key messages e.g. your key messages might be that Vegetale is a new, nutritious, low-fat product, derived entirely from natural vegetable ingredients, which can be prepared much like meat and which has a similar texture to veal.

15. Challenges of direct engagement Product samples – ‘trial size’ shampoos, attached to magazines or delivered to the door, and cut-down versions of computer software packages, supplied as a CD-Rom or downloaded via the Internet. • e.g. In 1960s, a company was forced to discontinue its new promotional campaign for razor blades BECAUSE inquisitive children across the country began opening product samples that had been dropped through their letterboxes.

16. Challenges of direct engagement (continued) Miscalculations • e.g. In the early 1990s, Hoover offered its UK customers two ‘free’ flights to European or US destinations if they spent more than £100 on its products • It was worth purchasing a Hoover product, simply to secure the two free flights. • The offer was massively over-subscribed, leading to legal actions by disappointed customers, a public relations disaster, multi-million pound losses and the subsequent departure of several senior executives.

17. Some popular advertising formats Table 10.1 Some popular advertising formats

18. Some popular advertising formats (continued) Table 10.1 Some popular advertising formats

19. An example of a Postmodern Advert

20. Measured Advertising Dollars (2004) for Selected Fast Food Brands Source: “The Top 200 Megabrands”, Advertising Age. July 18, 2005. Accessed August 7, 2005.

22. Public relations • The UK’s Institute of Public Relations (IPR) has defined this communication role as ‘the planned and sustained effort to establish and maintain goodwill and mutual understanding between an organisation and its publics’ (IPR 2003).

23. An organisation’s dialogue with its stakeholders Figure 10.2 An organisation’s dialogue with its stakeholders

24. Successful PR PR can only be successful if it addresses the following key principles: • Senior management commitment is essential • PR activity must be linked to strategic aims • Organisations must understand and engage with its publics • PR strategies require plans, budgets and resources • Feedback from PR activity should inform strategic change

25. PR activities and communication channels • Corporate brochures • Sponsorship • Lobbying • Internal communication • News releases • Exhibitions and events

26. Planning a news release A news release: A statement, often about the launch of a new product, service or event used by an organisation to brief media journalists and encourage them to write articles on the subject. Unlike news articles, press releases are biased towards the perspective of the organisation.

27. Typical format for a news release The message content demonstrates a number of ‘good practice’ features, including: • the provision of relevant facts, addressing the six fundamental news questions (i.e. who? what? when? where? why? how?); • placing the most important facts at the beginning; • presenting the information in a clear and simple format; • providing relevant contact details

28. Organisation Name and Logo Release Date/Time Descriptive heading Main news point Subsidiary news points About the organisation Contact names and numbers