Marketing Communications &

1. 12 Marketing Communications & Advertising Prepared by Deborah Baker Texas Christian University

2. Learning Objectives • 1. Discuss the elements of the promotional mix and their role in the marketing mix • Describe the communication process • Explain promotional goals and tasks, and the AIDA concept • Describe the factors that affect the promotional mix

3. Learning Objectives • 5. Discuss the effects of advertising on market share and consumers • 6. Identify the major types of advertising • Discuss the creative decisions in developing an advertising campaign • Describe media evaluation and selection techniques

4. Learning Objective Discuss the elements of the promotional mix and their role in the marketing mix 1 Online http://www.easports.com 1

5. 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. Inform Persuade Remind 1

6. 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

7. Overall Marketing Objectives • Promotional Mix • Advertising • Public Relations • Sales Promotion • Personal Selling • Promotion Plan • Marketing Mix • Product • Distribution • Promotion • Price Target Market The Role of Promotion 1

8. High product quality Rapid delivery Low prices Excellent service Unique features Competitive Advantage 1

9. 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

10. Advertising Advertising Impersonal, one-way mass communication about a product or organization that is paid for by a marketer. 2

11. Advertising Media Traditional Advertising Media ElectronicAdvertising Media • Internet • Electronic mail • Interactive video • Television • Radio • Newspapers • Magazines • Books • Direct mail • Billboards • Transit cards 2

12. Public Relations Public Relations The marketing function thatevaluates 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

13. Evaluates public attitudes Identifies areas of public interest Executes programs to “win” public Functions of Public Relations 2

14. Sales Promotion Sales Promotion Marketing activities--other than personal selling, advertising, and public relations--that stimulate consumer buying and dealer effectiveness. 2

15. Free samples Contests Premiums Trade Shows Vacation Giveaways Coupons Sales Promotion End Consumers Company Employees Trade Customers 2

16. Personal Selling Personal Selling Planned presentation to one or more prospective buyers for the purpose of making a sale. 2

17. Traditional Selling Relationship Selling Personal Selling 2

18. Learning Objective Describe the communication process 2 2

19. Communication Communication The process by which we exchange or share meanings through a common set of symbols. 2

20. Categories of Communication Interpersonal Communication Mass Communication Marketing Communication 2

21. As Senders As Receivers The Communication Process • Inform • Persuade • Remind • Develop messages • Adapt messages • Spot new communication opportunities 2

22. Noise Sender EncodingMessage Message Channel Decoding Message Receiver Feedback Channel The Communication Process Online http://www.mcdonalds.com 2

23. Advertising Communication Mode Indirect and non-personal Communication Control Low Feedback Amount Little Feedback Speed Delayed Message Flow Direction One-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Fast Message Flexibility Same message to all audiences Characteristics of Advertising 2

24. Public Relations Communication Mode Usually indirect, non-personal Communication Control Moderate to low Feedback Amount Little Feedback Speed Delayed Message Flow Direction One-way Message Content Control No Sponsor Identification No Reaching Large Audience Usually fast Message Flexibility Usually no direct control Characteristics of Public Relations 2

25. Sales Promotion Communication Mode Usually indirect and non-personal Communication Control Moderate to low Feedback Amount Little to moderate Feedback Speed Varies Message Flow Direction Mostly one-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Fast Message Flexibility Same message to varied target Characteristics of Sales Promotion 2

26. Personal Selling Communication Mode Direct and face-to-face Communication Control High Feedback Amount Much Feedback Speed Immediate Message Flow Direction Two-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Slow Message Flexibility Tailored to prospect Characteristics of Personal Selling 2

27. Learning Objective Explain the goals and tasks of promotion, and the AIDA concept 3 3

28. Informing Reminding PLC Stages: Introduction Early Growth Target Audience PLC Stages: Maturity Persuading PLC Stages: Growth Maturity Goals and Tasks of Promotion 3

29. Goals and Tasks of Promotion Informative Objective • Increase awareness • Explain how product works • Suggest new uses • Build company image 3

30. Goals and Tasks of Promotion Persuasive Objective • Encourage brand switching • Change customers’ perception of product attributes • Influence buying decision • Persuade customers to call 3

31. Goals and Tasks of Promotion Reminder Objective • Remind customers that product may be needed • Remind customers where to buy product • Maintain customer awareness 3

32. Attention Interest Desire Action 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

33. Attention Interest Desire Action Advertising Public Relations Sales Promotion Personal Selling Very effective Somewhat effective Not effective AIDA and the Promotional Mix 3

34. Learning Objective Describe the factors that affect the promotional mix 4 4

35. Nature of the product Stage in PLC Target market factors Type of buying decision Promotion funds Push or pull strategy Factors Affecting the Choice of Promotional Mix 4

36. Maturity Decline Growth Introduction Sales ($) Time Light Advertising; pre- introduction publicity Heavy use of Advertising; PR for awareness; sales promotion for trial Advertising, PR, brand loyalty; personal selling for distribution Ads decrease; sales promotion; personal selling;reminder & persuasive AD/PR decrease; limited sales promotion; personal selling for distribution Product Life Cycle and thePromotional Mix 4

37. Target Market Characteristics For… • Widely scattered market • Informed buyers • Repeat buyers Advertising Sales Promotion Less Personal Selling Online http://www.radioguide.com 4

38. Routine Advertising Type of Buying Decision Affects Promotional Mix Choice Sales Promotion Advertising Not Routine or Complex Public Relations Complex Personal Selling Type of Buying Decision 4

39. Available Funds • Trade-offs with funds available • Number of people in target market • Quality of communication needed • Relative costs of promotional elements 4

40. 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 Push and Pull Strategies 4

41. 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

42. Learning Objective Discuss the effect of advertising on market share and consumers 5 5

43. 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

44. Advertising and Market Share • 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 5

45. 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

46. Learning Objective 6 Identify the major types of advertising 6

47. 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. Major Types of Advertising 6

48. Enhance corporation’s identity Institutional Advertising Advocacy advertising Pioneering Product Advertising Competitive Comparative Major Types of Advertising 6

49. Stimulates primary demand for new product or category • Used in the PLC introductory stage Pioneering • Influences demand for brand in the growth phase of the PLC • Often uses emotional appeal Competitive • Compares two or more competing brands’ product attributes • Used if growth is sluggish, or if competition is strong Comparative • 2 Product Advertising Online http://www.pizzahut.com http://www.papajohns.com 6

50. Learning Objective Discuss the creative decisions in developing an advertising campaign 7 7