Summary
Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Advertising is a five-step process of setting advertising objectives, establishing a budget, choosing the advertising message and creative strategy, deciding on the media and evaluating communication and sales effects. Marketers may use advertising, sales promotions, events and experiences and public relations to create brand awareness and loyalty for their products.
A. Developing and Managing an Advertising Program
1. Advertising is any paid form of nonpersonal presentation and promotion of a product by an identified sponsor.
2. Proctor & Gamble used advertising to revamp a brand that’s been around for decades, Old Spice. By advertising in a realm where people actually want to watch the commercials, the Super Bowl, they were able to gain the attention of many consumers who might not have paid much attention in an ordinary time slot.
3. Advertising can be a cost-effective way to reach consumers and make them aware of your products. Before launching an ad campaign, marketing managers should start by identifying the target audience and the buyer motives. Marketers can make the five major decisions, known as the five Ms: 1) Mission – what are the advertising objectives? 2) Money – how much can we spend and how best to allocate it? 3) Message – what message do we want to send? 4) Media – what media should we use? 5) Measurement – how do we evaluate the results? Advertising objectives can be classified into informative advertising (creates brand awareness), persuasive advertising (creates liking, preference and conviction), reminder advertising – stimulates repeat purchases, and reinforcement advertising – aims to convince current purchasers that they made the right choice. When setting the advertising budget, there are five factors to consider, 1) stage in the product life cycle, 2) market share and consumer base, 3) competition and clutter, 4) advertising frequency, and 5) product substitutability. When designing an ad campaign marketers will need to consider the message generation and evaluation, the creative development and execution and legal and social issues.
B. Deciding on Media and Measuring Effectiveness
1. Media selection is finding the most cost-effective media to deliver the desired number and type of exposures to the target audience.
2. An example of the effectiveness of a well-planned media advertising campaign is Southwest Airlines, who launched a campaign advertising that bags fly free. Even though many competitors were cutting back on media spending during the recession, Southwest was able to add a full point of market share.
3. Once the message has been chosen, the marketers must decide how to deliver it. This involves deciding on the desired reach, frequency and impact; choosing among major media types; selecting specific media vehicles; deciding on media timing; and deciding on geographical media allocation. The effect of exposures on audience awareness depends on reach – how many different persons or households are exposed, frequency – the number of times within a specified time period a person or household is exposed, and impact – the qualitative value of an exposure through a given medium. A media planner must know the benefits and limitations of each method. Because of reduced effectiveness of traditional mass media, advertisers are now seeking ways to reach their target audience outside their homes and instead reach them where they work, play and shop. These ads can appear as billboards, product placements in television and movies, point of purchase, signs on buses, shopping carts and vehicles. The media planner must decide on the most cost-effective vehicles within each chosen media type. Also in choosing media, the advertiser must decide on a macroscheduling (seasons and business cycle) and a microscheduling (allocating advertising expenditures within a short period to obtain maximum impact) decision. Advertisers should measure the effectiveness of their advertising efforts and how well the target audience is responding to it. One way to measure this is through communication-effect research.
C. Sales Promotion
1. Sales promotion is a key ingredient in marketing campaigns and consists of a collection of incentive tools, mostly short-term, designed to stimulate quicker or greater purchase of particular products or services by consumers of the trade.
2. Some of the major types of promotion tools are samples, coupons, cash refund offers (rebates), price packs (cents-off deals), premiums, frequency programs, prizes, patronage awards, free trials, product warranties, tie-in promotions, cross promotions, and point-of-purchase displays and demonstrations.
3. The objectives of sales promotions are too attract new customers, reward loyal customers and to increase repurchase rates of occasional customers. Many customers will switch brands during a promotion and become brand users. Others will only switch during the promotion or will take advantage of the promotion to stockpile on their favorite items, reducing later sales. As promotions became more popular with management, advertising efficiency declined. Sales promotions, however, don’t build the brand loyalty that advertising does and many smaller companies cannot afford to launch a sales promotion on a large scale. When using sales promotions, a company must establish its objectives, select the tools, develop the program, pretest the program, implement and control it, and evaluate the results.
D. Events and Experiences
1. Becoming part of a personally relevant moment in consumers’ lives though events and experiences can broaden and deepen a company or brand’s relationship with the target market.
2. Some examples of corporate sponsorship are Visa sponsoring the Olympics, Old Spice sponsoring college sports and motor sports, Toyota sponsoring fishing tournaments, and Hyundai and Sony sponsoring the World Cup soccer events.
3. Marketers try to become part of consumers lives by sponsoring or being associated with major events for a number of reasons: 1) to identify with a particular target market or lifestyle; 2) to increase salience of company or product name; 3) to create or reinforce perceptions of key brand image associations; 4) to enhance corporate image; 5) to create experiences and evoke feelings; 6) to express commitment to the community or on social issues; 7) to entertain key clients or reward key employees; and 8) to permit merchandising or promotional opportunities. Making sponsorship successful can be determined by a few major decisions: 1) choosing event opportunities that fit the brand’s marketing objectives and communication strategy; 2) designing sponsorship programs that accompanies an event sponsorship is what ultimately determines its success. 3) measuring sponsorship activities to determine their success.
E. Public Relations
1. Public relations (PR) include a variety of programs to promote or protect a company’s image or individual products. A public is any group that has an actual or potential interest in or impact on a company’s ability to achieve its objectives.
2. Examples of strong publicity or MPR are the “I Love New York” campaign from the 1970’s, the extreme amount of “feel good” publicity launched by Tylenol, Toyota and BP when these companies had major public image crisis to overcome.
3. Most companies have PR departments to monitor the attitudes of the organization’s publics and distribute information and communications to build goodwill. They perform the following five functions: 1) press relations, 2) product publicity, 3) corporate communications, 4) lobbying, 5) counseling management about public issues. Market public relations (MPR) support corporate or product promotion and image making. The old name for MPR was “publicity” but MPR goes much further than simple publicity and plays an important role in the following tasks: 1) launching new products, 2) repositioning a mature product, 3) building interest in a product category, 4) influencing specific target groups, 5) defending products that have encountered public problems, and 6) building the corporate image in a way that reflects favorably on its products. There are major decisions in marketing PR in regards to establishing the market objectives, choosing the PR messages and vehicles, implementing the plan and evaluating the results. The main tools of MPR are: 1) publications; 2) events; 3) sponsorships; 4) news; 5) speeches; 6) public service activities; and 7) identity media. The easiest measure of MPR effectiveness is the number of exposures carried by the media but a better measure is the change in product awareness, comprehension or attitude resulting from an MPR campaign.
No comments:
Post a Comment