MARK Chap 18 Notes
MARK Chap 18 Notes MARK 3001
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This 9 page Class Notes was uploaded by Kyla Brinkley on Friday October 23, 2015. The Class Notes belongs to MARK 3001 at University of Georgia taught by Kimberly Grantham in Summer 2015. Since its upload, it has received 59 views. For similar materials see Principles of Marketing in Marketing at University of Georgia.
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Date Created: 10/23/15
Kyla Brinkley MARK 3001 Notes Fall 2015 Chapter 18 Advertising Public Relations and Sales Promotions a Advertising a paid form of communication from an identifiable source delivered through a communication channel and designed to persuade the receiver to take some action now or in the future iv v b Step i ii iii iv Most visible form of marketing communications Must be carried by some medium TV radio print web etc Legally the source of the message must be known or knowable Advertising represents a persuasive form of communication designed to get the consumer to take some action Perception is selective 1 Identify Target Audience Success of advertising program depends on how well the advertiser can identify its target audience Research Helps select media to be used Target audience may or may not be the same as current users c Step 2 Set Advertising Objectives iv Advertising plan a section of the firm s overall marketing plan that explicitly outlines the objectives of the ad campaign how the campaign might accomplish those objectives and how the firm can determine whether the campaign was successful Pull strategy designed to get customers to pull the product into the supply chain by demanding it Push strategy designed to increase demand by motivating sellers wholesalers distributors or salespeople to highlight the product rather than the products of competitors and thereby push the product onto consumers Ad campaigns aim to 1 Inform 2 Persuade 3 Remind vi vii viii Ads can be used to stimulate demand for a product category entire industry or a specific brand firm or item Informative Advertising a communication used to create and build brand awareness with the ultimate goal of moving the consumer through the buying cycle to a purchase 1 Determine early stages of product life cycle 2 Tell about upcoming sales event or new merch arrival Persuasive Advertising communication used to motivate consumers to take action 1 Growth early maturity stages of product life cycle 2 Competition most intense 3 Accelerate market s acceptance of product 4 Reposition Reminder Advertising communication used to remind consumers of a product or to prompt repurchases especially for products that have gained market acceptance and are in the maturity stage of their life cycle 1 Triggers response without any thought needed Focus of Advertisements 1 Productfocused advertisements used to inform persuade or remind consumers about a specific product or service a Product focus institutional focus public service focus 2 Institutional advertisements a type of ad that informs persuades or reminds consumers about issues related to places politics or an industry a ex got milk Ads 3 public service advertising PSA advertising that focuses on public welfare and generally is sponsored by nonprofit institutions civic groups religious organizations trade associations or political groups a form of social marketing the content distributed through online and mobile technologies to facilitate interpersonal interactions a specific amount of airtime must be devoted to them by Federal Communications Commission FCC d Step 3 Determine the Advertising Budget i Consider role that advertising plays in attempt to meet objectives ii Advertising expenditures vary during product life cycle iii Nature of market amp the product influence the size of ad budgets 1 Less spent on BZB than BZC e Step 4 Convey the Message i The Message 1 Provides target audience with reasons to respond in the desired way 2 Unique selling proposition value proposition a strategy of differentiating a product by communicating its unique attributes often becomes the common theme or slogan in the entire ad campaign a must be unique to brand meaningful to consumer b must be sustainable over time even with repe on ii The Appeal 1 informational appeal used in a promotion to help consumers make purchase decisions by offering factual information and strong arguments build around relevant issues that encourage them to evaluate the brand favorably on the basis of the key benefits it provides a informing about its competitive advantage b persuade 2 emotional appeal aims to satisfy consumers emotional desires rather than their utilitarian needs focus on feelings about the self fear safety humor happiness lovesex comfort h nostalgia f Step 5 Evaluate and Select Media ceases vi Media planning the process of evaluating and selecting the media mix that will deliver a clear consistent compelling message to the intended audience Media mix the combination of the media used and the frequency of advertising in each medium 39 39 Media buy the actual purchase of airtime or print pages 1 Largest expense in ad budget 2 TV adsmost expensive Mass and Niche Media 1 Mass media channels that are ideal for reaching large numbers of anonymous audience members include national newspapers magazines radio and television 2 Niche media channels that are focused and generally used to reach narrow segments often with unique demographic characteristics or interests a HGTV Skateboarder magazine Choosing the Right Medium 1 Consumers use different media for different purposes to which advertisers should match their messages 2 Communication media various in ability to reach desired audience a Fast food commercials often on radio because people are deciding on the way Determining the Advertising Schedule 1 Advertising schedule specification of the timing and duration of advertising a Continuous schedule runs steadily throughout the year Suited to products that are consumed continually at steady rates and require a steady level of persuasive or reminder advertising b Flighting an ad schedule implemented in spurts with periods of heavy advertising followed by periods of no advertising c Pulsing combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods g Step i VI vii viii ix h Step i 6 Create Advertisements Message and appeal are translated into worlds pictures colors music Execution style of ad usually dictates type of medium used 1 Image tv amp magazines 2 Price newspaper radio 3 Appeal to specific target audience digital Integrated marketing maintaining consistency across execution styles of advertising Eye catching subject product features impression arouse interest headline Headline in an ad large type designed to draw attention Subhead an additional smaller headline in an ad that provides a great deal of information through the use of short and simple words Body copy main text portion of an ad Brand elements characteristics that identify the sponsor of a specific ad Can t let creativity overshadow the message 7 Assess Impact Using Marketing Metrics Pretesting assessments performed before an ad campaign is implemented to ensure that the various elements are working in an integrated fashion and doing what they are intended to do Tracking includes monitoring key indicators such as daily or weekly sales volume while the ad is running to shed light on any problems with the message or the medium 39 39 Posttesting the evaluation of an IMC campaign s impact after it has been implemented Measuring sales impact is hard other factors besides ads impact consumer decisions 1 Competitors 2 Economic conditions in target market 3 Sociocultural changes 4 Instore merch availability 5 Weather Timeseries analysis sales data from past used to predict future j vi Lift additional sales caused by advertising vii firms find creative ways to identify advertising effectiveness Regulatory and Ethical Issues in Advertising i Federal Trade Commission FTC 1914 enforces truth in advertising laws defines deceptive and unfair ad practices ii Federal Communications Commission FCC 1934 Restricts broadcasting material with obsceneindecent content promotion of lotteries cigarettes or that perpetuate a fraud iii Food and Drug Administration FDA 1930 Regulates packaging labeling required disclosure statements warning labels dosage requirements defines light amp organic iv Puffery the legal exaggeration of praise stopping just short of deception lavished on a product 1 Ex charmin bears have to leave a little TP on behind to show that charmin leaves less than other brands rather than none at all a deception Public Relations the organizational function that manages the firm s communications to achieve a variety of objectives including building amp maintaining a positive image handling or heading off unfavorable stories or events and maintaining positive relationships with the media i Supports other promotional efforts with free media attention and general goodwill ii Designers having celebs wear their fashions on the red carpet iii Importance of PR has grown as cost of other marketing communications increased and consumers are more skeptical about claims made in other media 1 Seen as more credible because firm doesn t pay print space or tv time iv Causerelated marketing commercial activity in which businesses amp charities form a partnership to market an image product or service for their mutual benefit a type of promotional campaign v Event sponsorship popular PR tool occurs when corporations support various activities financially or otherwise usually in the cultural or sports and entertainment sectors vi Firms often distribute a PR toolkit to communicate with various audiences 1 Publications 2 Video and audio 3 Annual reports 4 Media relations 5 Electronic media k Sales Promotion special incentive or excitementbuilding program that encourages the purchase of a product or service like coupons rebates contests free samples and pointof purchase displays i Types of Sales Promotion 1 Coupons provides a stated discount to consumers on the final selling price of a specific item the retailer handles the discount a Some companies track coupon usage b Found in newspapers on products on shelf online in mail at register c Some coupons sent to consumers through internet or mobile have information about the consumer to collect data 2 Deals a type of short term price reduction that can take several forms such as a featured price a price lower than the regular price a buy one get one free offer or a certain percentage more free offer contained in larger packaging can involve a special financing arrangement such as reduced percentage interest rates or extended repayment terms a Encourage consumers to try product by reducing risk b Can alter perceptions of value 3 Premiums items offered for free or at a bargain price to reward some type of behavior such as buying sampling or testing a Build goodwill among consumers perceive high value in premiums b Included in packaging places on package handed out in store delivered in mail c Finding a premium that is consistent with brands message and image and desirable to target market at reasonable cost is challenging Contest a brandsponsored competition that requires some form of skill or effort a Require consumer involvement create excitement or buzz Sweepstakes a form of sales promotion that offers prizes based on a chance drawing of entrants names a only task is to fill out form or buy a ticket b encourage consumers to consume more if the form is inside the product packaging c many states specify that no purchase be required to enter into a sweepstakes sampling offers potential customers the opportunity to try a product or service before they make a buying decision a costly but effective b restaurants grocery stores loyalty programs specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time a increase engagement b more popular tied to long term CRM systems c can be expensive pointofpurchase POP display a merchandise display located at the point of purchase such as the checkout counter in a grocery store a increase visibility b encourage trial c purchase on impulse d checkout screen of websites rebates a consumer discount in which a portion of the purchase price is returned to the buyer in cash the manufacturer not the retailer issues the refund 10 ii 1 2 3 4 electronics mailin likelihood consumer will actually apply for the rebate is low stimulate sales but won t have to pay the money offered product placement inclusion of a product in nontraditional situations such as in a scene in a movie or TV program a increase visibility b American idol CocaCola c Hard to determine which movies will be successful 9 Using Sales Promotion Tools Marketers must be careful with sales promotions Consumers may stock up while items are on sale short term benefit Can decrease future demand Crosspromoting efforts of 2 or more firms joining together to reach a specific target market Goal of sales promotion is to create value for consumers and firm Can generate long and short term results
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