Mass communicationboon for marketing or not

ASSIGNMENT:2

Five major decisions are to be made:-

1.Mission- sales goals and advertising objectives??2.Money-market share and computer base ,

advertising frequency and product substitutability??

3.Message-message generation , message evaluation, message selection ,social responsibility and reviews??

4.Media-reach frequency,impact,major media types ,specific media vehicle ??

5.Measurment- communication impact ,sales

impact??

what are the effective ways for developing an advertising programFirst we start with setting the objectives of advertising:-

-informative advertising

-Remind

- Reinforcement advertising

Informative advertising

• Aims to create brand awareness , knowledge of new product or new feature of existing product

Remind

• Aims to stimulate repeat purchase of products and services ,like coca cola ads in magazine are intended to remind people to purchase coca cola.

Reinforcement advertising

• Aims to convince current purchaser that they have made right choice of the product ,like advertisements of content customer sitting in his car conveying the right auto brand choice.

Ex: Coca-cola

Advertising is treated as current expense ,part of it is really an investment in building brand equity and customer loyalty.

Now we move on to the second M of building an advertising program that is money or budget decisions

Factors affecting budgeting decision :-

• Market share and consumer base –high market share brand usually require less expenditure as a percentage of sales to maintain share

Branded base of consumer :P

• Stage in product life cycle –new products typically merit a large advertising budget to build awareness and to gain consumer trial

• Established brand require lower budget measured as ratio to sales .

Competition and clutter – in a market with a large number of competitors and high advertising spending , brand needs to advertise heavily to be heard .

• Product substitutability-brand in less differentiated and commodity size product classes like beer , bank , soft drink , airline require heavy advertising to establish unique image.

Advertising frequency- The number of repetitions to but the ad

across the consumer has an impact on advertising budget.

Now we move on towards our third M that is message.

-Look for the “big idea” that connect with the consumer

rationally and emotionally and this sharply distinguishes the brand.

- Fresh insight are necessary for uniqueness. - a good ad focuses on core selling propositions .

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Effective example of execution and target hitting.

• A UK “Life’s for Sharing” ad for T-Mobile.• In which 400 people break into a choreographed dance routine in the

Liverpool Street Station was shown exactly once on the Celebrity Big Brother television show,

• But it was watched more than 15 million times online when word about it spread via e-mail messages , blogs ,and social networks.

• It portrayed consumer involvement and connected better with the mind set of the people.

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Creative development and execution

-“what it says but also on how it says”

Creativity at its best(GOT)

Advertising media

-television -radio -print

TelevisionTelevision is generally acknowledged as the most powerful advertising medium. Strengths

1.It can vividly demonstrate product attributes and persuasively explain consumer benefits .2.It portrays usage imagery and brand personality .

Disadvantage:

- Due to distracting creative element product related message and brand may be overlooked.

Print adAdvantages:- Print media offer a stark contrast to broadcast media.- magazines and newspapers +detailed product information and +effective user and usage imagery.Disadvantages:- Due to static nature of visual images- dynamic presentation and demonstration is difficult and it

becomes passive.

RADIOAdvantage:-Radio’s main advantage is flexibility-stations are very targeted- ads are relatively inexpensive to produce- companies achieve a balance between broad and localized market

coverageDisadvantage :- lack of visual images which makes it passive

Advantage:-Radio’s main advantage is flexibility-stations are very targeted-ads are relatively inexpensive to produce-companies achieve a balance between broad and localized market coverageDisadvantage :- lack of visual images which makes it passive

Print ad

Example of effective media selection

-Motel 6,the nation’s largest budget motel

chain

-founded in 1962 when the “6” stood for $6

a night .

-After its business fortunes hit bottom in

1986 with an occupancy rate of only 66.7

percent

-Motel 6 made a number of marketing

changes , including the launch of humorous

60-second radio ads delivering the clever

tagline , “We’ll Leave the Light on for You.”

- Named one of the Top 100 Ad Campaigns

Deciding on media and measure effectiveness

• Deciding on desired reach, frequency, and impact • choosing among major media types • selecting specific media vehicles• deciding on media timing• deciding on geographical media allocation.• Then the marketer evaluates the results of these decisions

Media selection

• Reach (R). The number of different persons or households exposed to a particular media schedule at least once during a specified time period • Frequency (F). The number of times within the specified time period that an average person or household is exposed to the message • Impact (I). The qualitative value of an exposure through a given medium

Relationship - reach, frequency, and impact

• Total number of exposures (E). This is the reach times the average frequency ; that is , E= R×F, also called the gross rating points (GRP).If a given media schedule reaches 80 percent of homes with an average exposure frequency. • Weighted number of exposures (WE). This is the reach times average frequency times average impact ,that is WE = R×F×I.

Frequency

Frequency is most important where there are -strong competitors -a complex story to tell high consumer resistance -a frequent-purchase cycle.-key reason for repetition is forgetting .-The higher the forgetting rate associated with a brand, product category, or message, the higher the warranted level of repetition .

Alternate advertising options

• PLACE ADVERTISING - Billboards - Public Spaces - Product Placement - Point of Purchase • Playing games with

brands.

The macro scheduling decision relates to seasons and the business cycle.

The micro scheduling decision calls for allocating advertising expenditures within a short period to obtain maximum impact.

Deciding on media timing and allocation

• COMMUNICATION-EFFECT RESEARCH• SALES-EFFECT RESEARCH

Evaluating Advertising Effectiveness

COMMUNICATION-EFFECT RESEARCH

-called copy testing-determine whether an ad is communicating effectively. -Pretest critics maintain that agencies can design ads that test well. - Many advertisers use postests to assess the overall impact of a

completed campaign. -If a company hoped to increase brand awareness from 20 percent to 50 percent and succeeded in increasing it to only 30 percent, then the company is not spending enough, its ads are poor, or it has overlooked some other factor

SALES-EFFECT RESEARCH

A company’s share of advertising expenditures produces a share of voice that earns a share of consumers’minds and hearts and,ultimately,a share of market.

How should sales promotion decision be made ??

High brand: Sales promotions in markets of high brand similarity can

produce a high sales response in the short run. In markets of high brand dissimilarity, they may be able to alter

market shares permanently.But sales may then hit a postpromotion dip.

Small-share competitors

-they find it advantageous to use sales promotion -cannot afford to match the market leaders’ large advertising budgets-can they obtain shelf space without offering trade allowances -Dominant brands offer deals less frequently, because most deals subsidize only current users.

Major consumer promotion tools

1. Coupons2. Cash Refund Offers (rebates):. 3. Price Packs (cents-off deals)4. Premiums (gifts)5. Frequency Programs.6 . Prizes (contests , sweepstakes , games)7 .Patronage Awards 8 . Free Trials 9. Product Warranties:10. Tie-in Promotions

Selecting trade promotion tools-

Manufacturers award money to the trade (1) to persuade the retailer or wholesaler to carry the brand;(2) to persuade the retailer or wholesaler to carry more units than the normal amoun

(3) to induce retailers to promote the brand by featuring, display, and price reductions; and (4) to stimulate retailers and their sales clerks to push the product.

Selecting business and sales promotion tools

• Trade shows and conventions

• Sales contest• Specialty Advertising

Implementing and evaluating the program

• Marketing managers must prepare implementation and control plans.

• cover lead time and sell-in time for each individual promotion.

• Lead time is the time necessary to prepare the program prior to launching it.

• Sell-in time begins with the promotional launch and ends when approximately 95 percent of the deal merchandise is in the hands of consumers.

• Sales promotions work best when they attract competitor’s customers who then switch.

What are guidelines for effective brand building events and experiences

1.To identify with a particular target market or lifestyle— Customers can be targeted geographically, demographically, psychographically , or behaviourally according to events. Old Spice sponsors college sports and motor sports—including a 10-year deal with driver .

2.To increase salience of company or product name—Sponsorship often offers sustained exposure to a brand, a necessary condition to reinforce brand salience.

3.To create or reinforce perceptions of key brand image association

4.promotional Opportunities—Many marketers tie contests or sweepstakes, in-store merchandising, direct response, or other marketing activities with an event.Ford,Coca-Cola,and AT&T Mobility have all used their sponsorship of the hit TV show American Idol in this way.

5To enhance corporate imagesponsorships can improve the perception that

company is likable and prestigious . here I would like to quote example of

company visa Visa views its long-standing Olympic sponsorship as a means of enhancing international brand awareness and increasing usage and volume, it also engenders patriotic goodwill and taps into the emotional Olympic spirit

6.To create experience and evoke feelings - The feelings engendered by an exciting or

rewarding event may indirectly link to the brand.

- Ex:Audi models featured prominently in the 2010 blockbuster Iron Man 2,including main character Tony Stark’s personal R8 Spyder,the A8,Q5 and Q7 SUVs, and A3 hatchback.

7.To express commitment to the community or to social cause -Cause-related marketing sponsors non-profit organizations and charities-Firms such as Timberland, Stonyfield Farms, Home Depot, Starbucks, American Express, and Tom’s of Maine have made cause-related marketing an important cornerstone of their marketing programs.

How can companies exploit potential of public relation and publicity ???

1.Press relations—Presenting news and information about the organization in the most positive light .

2. Product publicity—Sponsoring efforts to publicize specific products .

3.Corporate communications—Promoting understanding of the organization through internal and external communications .

4. Lobbying—Dealing with legislators and government officials to promote or defeat legislation and regulation .

5. Counselling—Advising management about public issues, and company positions and image during good times and bad .

Major Tools in Marketing PR

Publications

• Companies rely extensively on published materials to reach and influence their target markets.

• These include annual reports , brochures , articles, company newsletters and magazines, and audiovisual materials.

Events

-arranging and publicizing special events such as news conferences , seminars , outings , trade shows , exhibits, contests and competitions , and anniversaries that will reach the target publics.

-Sponsorships: Companies can promote their brands and corporate name by sponsoring and publicizing sports and cultural events and

highly regarded causes.

- One of the major tasks of PR professionals is to find or create favourable news about the company , its products.

News

- Increasingly , company executives must field questions from the media or give talks at trade associations or sales meetings , and these appearances can build the company’s image.

Speeches

Public Service Activities

-Companies can build goodwill by contributing money and time to good causes. -Identity Media: Companies need a visual identity that the public immediately recognizes.-The visual identity is carried by company logos , stationery , brochures, signs, business forms , business cards, buildings , uniforms , and dress codes.

Presentation created by

YASH MEHROTRA IIT BHU