Communications and Advertising Strategy Chapter Ten Key Learning

Communications and Advertising Strategy Chapter Ten

Key Learning Points Basic model of communication and how technology is changing that model Elements of an IMC program Setting advertising goals and selecting target audiences Developing message strategies Key elements of media planning How advertising budgets are set Alternative approaches to evaluating advertising spending Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -2

“Forward-looking organizations are stressing a concept called integrated marketing communications (IMC), in which the marketing manager does not think of all the elements of the communications mix as communicating separate messages. Instead, these messages are coordinated to reinforce what each is saying and to present customer confusion from conflicting messages. - Russell S. Winer Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -3

Figure 10. 2 Model of the Communication Process Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -4

Figure 10. 3 Traditional Mass Communication Model Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -5

Figure 10. 4 Modified Mass Communication Model Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -6

Discussion Questions Successfully managing brand communities is a key challenge facing marketers today. 1. How should marketing managers manage brand communities? 2. What are the ethical aspects involved with managing brand communities? 3. Who is really the sender and who is the receiver? Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -7

Figure 10. 5 Traditional Trade-off Between Richness and Reach Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -8

Activity Where would you place each of the marketing communication techniques on the chart? * Personal selling * Opt-in e-mail ads * Newspaper ads * Banner ads * Network TV ads * Direct mail ads * Magazine ads * Outdoor ads * Radio ads Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -9

Figure 10. 6 Elements of the Communication Mix Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -10

Table 10. 1 Advertising Expenditures: Consumer vs. Business-to-Business Products Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -11

Integrated Marketing Communications Advertising: Definition Advantages Drawbacks Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -12

Integrated Marketing Communications Direct marketing defined Direct marketing forms Key advantages Key drawbacks Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -13

Integrated Marketing Communications Sales promotion defined Sales promotion classification Advantages Disadvantages Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -14

Integrated Marketing Communications Publicity and public relations Publicity defined Key advantage Key drawback Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -15

Integrated Marketing Communications Personal selling defined Key advantages Key drawbacks Miscellaneous communication activities Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -16

Table 10. 2 Top 10 U. S. Total Advertising Spenders Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -17

Table 10. 3 Top B-to-B Advertising Spenders Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -18

Table 10. 4 Top Global Advertisers in 2008 Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -19

Advertising Management 6 M Model of Communications Planning Market Mission Message Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall Media Money Measurement 10 -20

Advertising Management Market: Selecting the target audience Selecting target audiences Including non-customer targets Mission: Setting advertising goals Sales is typically not used as an advertising objective except for direct-response ads. Models of how advertising creates a customer response provide intermediate goals. Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -21

Figure 10. 7 Models of Advertising Response Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -22

Figure 10. 8 Advertising Goals over the PLC Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -23

Figure 10. 9 Advertising Goals over the PLC Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -24

Advertising Management Message: Developing the message strategy Emotional appeals Attempt to appeal to an underlying psychological aspect of the purchase decision. There are several general types. Emotional appeals may enhance recall and brand liking. Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -25

Advertising Management Creative Execution Approaches Straight-sell or factual message Scientific/technical evidence Comparisons Testimonials Animation Humor Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall Product demonstration Personality symbols Slice of life Fantasy Dramatization 10 -26

Figure 10. 10, Part A Classification of Copy-Testing Methods Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -27

Figure 10. 10, Part B Classification of Copy-Testing Methods Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -28

Advertising Management Media: Selecting media has become more difficult due to alternative and minor media. Budgets are being shifted towards new media. Media planning has three aspects. Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -29

Advertising Management Television Strengths Weaknesses Magazines Strengths Radio Strengths Weaknesses Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -30

Advertising Management Cable TV Strengths Weaknesses Outdoor Strengths Weaknesses Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -31

Table 10. 5 U. S. Measured Media for All Advertisers Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -32

Table 10. 6 U. S. Online Advertising Spending Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -33

Figure 10. 11 Google Page Visit You. Tube to learn more about Google’s advertising model. Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -34

Table 10. 7 Google Page Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -35

Advertising Management New media: Influencing word-of-mouth Up-and-comers (other media) Many media are too new to evaluate in terms of effectiveness. Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -36

Advertising Management Media: selecting media Choosing the specific vehicles Analyzing media Contextual fit Duplication and wearout Scheduling advertising Setting the advertising budget Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -37

Figure 10. 12 Relationship between Cumulative Ad Spending and Market Share Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -38

Table 10. 8 Top 5 and Bottom 5 Advertisers in Sales per Dollar of Advertising Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -39

Table 10. 9 Top 5 and Bottom 5 Industry Ad-to. Sales Ratio in 2001 by SIC Code Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -40

Advertising Management Measure: Measuring Advertising Effects Tracking studies over time Experimentation Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -41

Advertising Management Objective guarantees Marketing mix modeling Technology’s impact on advertising Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -42

Executive Summary Communication theory underlies marketing communications. IMC has become central to business’ communication strategies. The 6 M model of communication guides the advertising management process. New communication technologies have made media decisions more complex. Multiple methods of assessing advertising effectiveness are being used. Copyright © 2011 Pearson Education, Inc. , Publishing as Prentice Hall 10 -43