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Principles and Practice of Marketingfourth edition

DAVID JOBBER

Chapter 9Advertising

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Key Promotional

Mix Tools

AdvertisingPersonal

Selling

Direct

Marketing

Sales

Promotion

Internet &

Online

Marketing

Publicity

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Top Advertisers in Europe

TotalA

d.spend19

98(US$m)

Source: Adapted from Advertising Expenditure by Country & Medium, European Marketing Pocket Book, 2000 Ed

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Considerations having impact on the choice

of promotional mix

Resource availability and cost of availability

Market size and concetration

Customer information needs

Product characteristics Distribution Push versus Consumer pull strategies

Coordination between advertising and sales

depatment

Need of integrated marketing communications!

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The communication process

ReceiverEncodedmessage

Decodedmessage

TransmissionSource

Feedback

Noise

Noise

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A framwork for implementing integrated

marketing conditions

Marketing Strategy

Postitioning Strategy

Communication decisions

1. Identify target audience(s)

2. Set communication

objectives

3. Create message(s)

4. Select promotional mix

5. Select promotional budget

Exceute integrated marketing

communication

Evaluate integrated marketing

communication

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Strong and weak theories of howadvertising works

Desire

(or conviction)

Interest

Awareness

Action

Reinforcement

Trial

Awareness

Strong (AIDA) Weak (ATR)

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Developing advertising strategy

Identify and understand target audience

Marketing strategy

Define advertising objectives

Set the advertising budget

Message decisions Media decisions

Execute campaign

Evaluate advertising effectiveness

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Setting the Advertising Budget

Percentageof Sales

Affordability Matching

Competition

Objective

& Task

Stimulat

e

Sales

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Message decisionsCustomer convergence

consumers across different countries sharecommon experiences, needs and motivations

Advertising platform foundation of the advertising message, the basic

selling proposition it should be: important to the target audience

communicate competitive advantage

Advertising message translates the platform into words, symbols and

illustrations which are attractive and meaningful to the target audience

See Marketing in Action 9.1 Creating and sending messages

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Top Advertising Spend Organisationsin Selected EU Countries

GermanyProcter & Gamble

Ferrero

Deutche Telecom

Opel

Effem

UKProcter & Gamble

British TelecomVauxhall

Reault

Kelloggs

FranceVivendi

LOreal

PSA Group

France Telecom

Nestle

SpainTelephonica Serviious Moviles

El Corte InglesProcter & Gamble Espana

Telephonica de Espana

Fasa Reault

Source: European Marketing Pocket Book, 1997 Ed.

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How brand personality is used byconsumers

Self-expressionacts as a bridge

Reassurance

Communicates thebrands functional

characteristics

Trustworthiness

Brandpersonality

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Media Class Optionsand Global shares of display advertising revenue

Table 9.2 and Figure 9.3

PressNationalRegional

29%

MagazinesFashion

Technical

Trade

12,5%

Television37,8% (major option)

Radio8,3%

Cinema0,4%

Postersout of homes 5,5%

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Media buying

Much money can be saved

Three methods

full service agencies media specialists

media buying clubs

All the worlds top media buying operation are owned

by global advertising companies (WPP and Publics)

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Sales promotion

Incentives to consumers or the trade that are designed tostimulate purchase.

Money off, free gifts, discounts and sales force competitions

Key reasons for Sales Promotion: Increased impulse purchasing

The rising cost of advertising and avdertising clutter(cost effectiveness)

Shortening time horizons Competitor activities

Measurability (Electronic Point of Sales EPOS)

Group discussions, hall tests and experimenation

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Consumer and Trade promotions

Premiummini portion packs

Money offBonus

packs

Free

samples

Prize

promotions

Loyalty

cards

Free goodsoffer more for the

same price

Allowancesa sum of money in

return to retailer for

displaying

Price

discountsJoint promotion andExtra shelf space

Coupons

Consumer

promotions

Trade promotions

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Publicity relations and publicity Attracting other gruops than customers and distributors

Corporate advertising, seminars, publications, lobbying and

charitable donations Foster prestige and reputation

Promote products by creating desire to buy

Deal with opportunities and overcome misconceptions

Fostering goodwill among customers, employees, suppliers,

distributers, governments

Three major reasons for public relationsThe recognition of the power and valueincreased advertising costsimproved understanding of the role

Three reasons for publictyThe message has high credibility

No direct media cost

No control over the publication (Newsworthy?)

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Sponsorship a buisness relationship between a provider of funds, resources or services

and an individual, event or organisation which offers in return some rightsand association that may be used for commercial advantageSleight

Vast range of toolsSports, arts, communities, teams, tournaments, individual personalities, webblogs, fairs and shows, parties, etc

A source of revenues for those being sponsoredOlympic games the biggest global sporting event; UEFA CL, WC, Barcelona

Extremely expensive for the sponsors

Five principal objectives (p 235-7):to gain publicity,create entertainment opportunities,foster favourable brand and company associations,improve community relations,create promotional opportunitis.

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Defining Opportunities to See (OTS) ?

TelevisionPresence in the room with the set switched on at turn ofclock minute to relevant channel, providing presence inthe room with the set on is for at least 15 consecutiveseconds

Press and MagazinesRead or looked at any issue (for at least two minutes)

within the publication period (e.g. for weeklies within thelast 7 days)

PostersTraffic past site including pedestrians

CinemaActual cinema admissions

Th f l

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The structure of a largeadvertising agency

Managing director

Accountmanagement

Productionand trafficCreative Media Planning

Accountexecutives

Accountdirectors

Manageaccount

Developconcepts andcreate copyand artwork

Decideupon media

andnegotiate

price

Make theads and getthe right adto the right

media at theright time

Commission,

conduct andinterpret

marketingresearch for

use incampaignplanning

Artdirector

Copywriters

Buyers

Planners

Trafficmanager

Productionmanager

Researchers

Strategists

Layout