Chapter 18 Mass Communication

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    Key Concepts

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    Developing and Managing An

    Advertising Program

    Advertisingany paid form of non-personalpresentation and promotion of ideas, goods, or

    services by an identified sponsor.

    Major decisions (Five Ms):MissionWhat are the objectives?

    MoneyHow much can be spent?MessageWhat message should be sent?MediaWhat media should be used?MeasurementHow should the results be evaluated?

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    Setting the Objectives

    Advertising goal(or objective)a specificcommunication task and achievement level to beaccomplished with a specific audience in a specificperiod.

    Classified according to their aim:

    Inform

    Persuade Remind

    Reinforce

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    Deciding on the Advertising Budget

    Factors to consider:

    Product life cycle stage

    Market share and consumer base

    Competition and clutter

    Advertising frequency

    Product substitutability

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    Developing the Advertising

    Campaign

    Message generation and evaluation

    Creative development and execution

    Legal and social issues

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    Deciding on Media and Measuring

    Effectiveness

    Deciding on reach, frequency, and impact

    Choosing among major media types Selecting specific vehicles

    Deciding on media timing and allocation

    Evaluating advertising effectiveness

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    Deciding on Reach, Frequency, and

    ImpactReach (R)the number of different persons or

    householdsthat are exposed to a particular mediaschedule at least once during a specified period.

    Frequency (F)The number of timeswithin thespecified period that an average person or household

    is exposed to the message.

    Impact (I)the qualitative value of an exposurethrough a given medium.

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    Choosing Among Major Media

    Types

    Consider four main variables: Target audiences media habits

    Product

    Message

    Cost

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    Selecting Specific Vehicles

    Audience size can be measured by:

    Circulationnumber of physical units carrying theadvertising.

    Audiencenumber of people exposed to the vehicle.

    Effective audiencenumber of people with targetaudience characteristics exposed to the vehicle.

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    Deciding on Media Timing

    and Allocation

    Continuityexposures appear evenly throughout agiven period.

    Concentrationspending all ad dollars in a singleperiod.

    Flightingadvertise for a period, followed by a period

    with no advertising, followed by a second period ofadvertising activity.

    Pulsingcontinuous advertising at low-weight levelsreinforced periodically by waves of heavier activity.

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    Evaluating Advertising

    Effectiveness

    Communication-effect research(called copytesting)seeks to determine whether an ad iscommunicating effectively. Pretestingbefore an ad is placed. Posttestingafter an ad is placed.

    Formula for measuring sales impact of advertising:

    Share of expenditures Share of voice

    Share of mind and heart

    Share of market

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    Sales Promotion

    A collection of incentive tools, mostly short term,

    designed to stimulate quicker or greater purchase ofparticular products or services by consumers or thetrade.

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    Sales Promotion Tools

    Consumer promotions Samples Coupons Cash refund offers Price packs Premiums Frequency programs Prizes Patronage awards

    Free trials Warranties Tie-in and cross promotions Point-of-purchase displays and

    demonstrations

    Trade promotions Price-off Allowances Free goods

    Business and sales-forcepromotions

    Trade shows and conventions Sales contests

    Specialty advertising

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    Sales Promotion Objectives

    Attract new users

    Reward loyal customers Increase repurchase rates

    Attract brand switchers

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    Advertising vs. Promotion

    Reasons for decreasing advertising-to-sales-promotions ratios:

    Top management acceptance of promotion

    Increase in number of brands

    Competitors use promotions frequently

    Brands seen as similar

    Consumers more price-oriented Trade demands more deals

    Declining advertising efficiency

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    Major Sales Promotion Decisions

    Establish objectives

    Select the tools Develop the program

    Pretest the program

    Implement and control program Evaluate the results

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    Events Objectives Identify with a particular

    target market or life style

    Increase awareness ofcompany or product name

    Create or reinforceperceptions of key brand

    image associations Enhance corporate image

    Create experiences and evokefeelings

    Express commitment to thecommunity or on socialissues

    Entertain key clients or

    reward key employees Permit merchandising or

    promotional opportunities

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    Major Sponsorship Decisions

    Choosing event opportunities

    Designing sponsorship programs

    Event creation

    Measuring sponsorship activities

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    Creating Experiences

    Experiential marketing not only communicatesfeatures and benefits but also connects a product orservice with unique and interesting experiences.

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    Public Relations

    Publicany group that has an actual or potentialinterest in or impact on a companys ability to achieveits objectives.

    Public relations (PR)includes a variety ofprograms to promote or protect a companys image orindividual products.

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    PR Department Functions

    Press relations

    Product publicity Corporate communication

    Lobbying

    Counseling

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    Marketing Public Relations (MPR) Launching new products

    Repositioning a mature product

    Building interest in a product category

    Influencing specific target groups

    Defending products that have encountered public

    problems Building the corporate image in a way that reflects

    favorably on its products

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    Major Tools in Marketing PR

    Publications

    Events Sponsorships

    News

    Speeches

    Public-service activities Identity media

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    Major Decisions in Marketing PR

    Establish marketing objectives

    Choose messages and vehicles

    Implement and evaluate the plan