Communications and Advertising Strategy

CommunicatioCommunications and ns and

Advertising Advertising StrategyStrategy

Chapter TenChapter Ten

Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 10-2

Key Learning PointsKey Learning Points

Basic model of communication and how Basic model of communication and how technology is changing that modeltechnology is changing that modelElements of an IMC programElements of an IMC programSetting advertising goals and selecting Setting advertising goals and selecting target audiencestarget audiencesDeveloping message strategiesDeveloping message strategiesKey elements of media planningKey elements of media planningHow advertising budgets are setHow advertising budgets are setAlternative approaches to evaluating Alternative approaches to evaluating advertising spendingadvertising spending


Figure 10.1Figure 10.1Army WebsiteArmy Website

Visit the Army web site.


““Forward-looking organizations are Forward-looking organizations are stressing a concept called integrated stressing a concept called integrated marketing communications (IMC), in which marketing communications (IMC), in which the marketing manager does not think of the marketing manager does not think of all the elements of the communications all the elements of the communications mix as communicating separate mix as communicating separate messages. Instead, these messages are messages. Instead, these messages are coordinated to reinforce what each is coordinated to reinforce what each is saying and to present customer confusion saying and to present customer confusion from conflicting messages.from conflicting messages.

- Russell S. Winer


Figure 10.2Figure 10.2Model of the Communication Model of the Communication

ProcessProcess


Figure 10.3Figure 10.3Traditional Mass Communication Traditional Mass Communication

ModelModel


Figure 10.4Figure 10.4Modified Mass Communication Modified Mass Communication

ModelModel


Discussion QuestionsDiscussion Questions

1.1. How should marketing managers How should marketing managers manage brand communities?manage brand communities?

2.2. What are the ethical aspects involved What are the ethical aspects involved with managing brand communities? with managing brand communities?

3.3. Who is really the sender and who is the Who is really the sender and who is the receiver?receiver?

Successfully managing brand Successfully managing brand communities is a key challenge facing communities is a key challenge facing marketers today.marketers today.


Figure 10.5Figure 10.5Traditional Trade-off Between Traditional Trade-off Between

Richness and ReachRichness and Reach


ActivityActivity

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


Figure 10.6Figure 10.6Elements of the Communication Elements of the Communication

MixMix


Table 10.1 Table 10.1 Advertising Expenditures: Advertising Expenditures:

Consumer vs. Business-to-Business Consumer vs. Business-to-Business ProductsProducts


Integrated Marketing Integrated Marketing CommunicationsCommunications

Advertising: Advertising: DefinitionDefinition

AdvantagesAdvantages

DrawbacksDrawbacks


Direct marketingDirect marketingDirect marketing definedDirect marketing defined

Direct marketing formsDirect marketing forms

Key advantagesKey advantages

Key drawbacksKey drawbacks




Sales promotionSales promotionSales promotion definedSales promotion definedSales promotion classificationSales promotion classificationAdvantagesAdvantagesDisadvantagesDisadvantages



Publicity and public relationsPublicity and public relationsPublicity definedPublicity defined

Key advantageKey advantage

Key drawbackKey drawback



Personal sellingPersonal sellingPersonal selling Personal selling defineddefinedKey advantagesKey advantagesKey drawbacksKey drawbacks

Miscellaneous Miscellaneous communication communication activitiesactivities


Table 10.2Table 10.2Top 10 U.S. Total Advertising Top 10 U.S. Total Advertising

SpendersSpenders


Table 10.3Table 10.3Top B-to-B Advertising SpendersTop B-to-B Advertising Spenders


Table 10.4Table 10.4Top Global Advertisers in 2008Top Global Advertisers in 2008


Advertising ManagementAdvertising Management

6M Model of 6M Model of Communications PlanningCommunications Planning

MarketMarket

MissionMission

MessageMessage

MediaMedia

MoneyMoney

MeasurementMeasurement



Market: Selecting the target audienceMarket: Selecting the target audienceSelecting target audiencesSelecting target audiences

Including non-customer targetsIncluding non-customer targets

Mission: Setting advertising goalsMission: Setting advertising goalsSales is typically not used as an Sales is typically not used as an advertising objective except for direct-advertising objective except for direct-response ads.response ads.

Models of how advertising creates a Models of how advertising creates a customer response provide intermediate customer response provide intermediate goals.goals.


Figure 10.7Figure 10.7Models of Advertising ResponseModels of Advertising Response


Figure 10.8Figure 10.8Advertising Goals over the PLCAdvertising Goals over the PLC


Figure 10.9Figure 10.9Advertising Goals over the PLCAdvertising Goals over the PLC



Message: Developing the Message: Developing the message strategymessage strategy

Emotional appealsEmotional appealsAttempt to appeal to an Attempt to appeal to an underlying psychological aspect underlying psychological aspect of the purchase decision.of the purchase decision.There are several general types.There are several general types.Emotional appeals may enhance Emotional appeals may enhance recall and brand liking.recall and brand liking.



Creative Execution ApproachesCreative Execution Approaches

Straight-sell or Straight-sell or factual messagefactual message

Scientific/technical Scientific/technical evidenceevidence

ComparisonsComparisons

TestimonialsTestimonials

AnimationAnimation

HumorHumor

Product Product demonstratiodemonstrationn

Personality Personality symbolssymbols

Slice of lifeSlice of life

FantasyFantasy

DramatizatioDramatizationn


Figure 10.10, Part AFigure 10.10, Part AClassification of Copy-Testing Classification of Copy-Testing

MethodsMethods


Figure 10.10, Part BFigure 10.10, Part BClassification of Copy-Testing Classification of Copy-Testing

MethodsMethods



Media: Selecting mediaMedia: Selecting mediaSelecting media has become Selecting media has become more difficult due to alternative more difficult due to alternative and minor media.and minor media.

Budgets are being shifted Budgets are being shifted towards new media.towards new media.

Media planning has three aspects.Media planning has three aspects.



TelevisionTelevisionStrengthsStrengthsWeaknessesWeaknesses

MagazinesMagazinesStrengthsStrengths

RadioRadioStrengthsStrengthsWeaknessesWeaknesses



Cable TVCable TVStrengthsStrengths

WeaknessesWeaknesses

OutdoorOutdoorStrengthsStrengths

WeaknessesWeaknesses


Table 10.5Table 10.5U.S. Measured Media for All U.S. Measured Media for All

AdvertisersAdvertisers


Table 10.6Table 10.6U.S. Online Advertising SpendingU.S. Online Advertising Spending


Figure 10.11Figure 10.11Google PageGoogle Page

Visit YouTube to learn more about Google’s advertising model.


Table 10.7Table 10.7Google PageGoogle Page



New media:New media:Influencing word-of-mouthInfluencing word-of-mouth

Up-and-comers (other media)Up-and-comers (other media)Many media are too new to Many media are too new to evaluate in terms of evaluate in terms of effectiveness.effectiveness.



Media: selecting mediaMedia: selecting mediaChoosing the specific vehiclesChoosing the specific vehiclesAnalyzing mediaAnalyzing mediaContextual fitContextual fitDuplication and wearoutDuplication and wearout

Scheduling advertisingScheduling advertisingSetting the advertising budgetSetting the advertising budget


Figure 10.12Figure 10.12Relationship between Cumulative Relationship between Cumulative

Ad Spending and Market ShareAd Spending and Market Share


Table 10.8Table 10.8Top 5 and Bottom 5 Advertisers in Top 5 and Bottom 5 Advertisers in

Sales per Dollar of AdvertisingSales per Dollar of Advertising


Table 10.9Table 10.9Top 5 and Bottom 5 Industry Ad-Top 5 and Bottom 5 Industry Ad-

to-Sales Ratio in 2001 by SIC Codeto-Sales Ratio in 2001 by SIC Code



Measure: Measuring Measure: Measuring Advertising EffectsAdvertising Effects

Tracking studies over timeTracking studies over time

ExperimentationExperimentation



Objective guaranteesObjective guarantees

Marketing mix modelingMarketing mix modeling

Technology’s impact on Technology’s impact on advertisingadvertising


Executive SummaryExecutive Summary

Communication theory underlies Communication theory underlies marketing communications.marketing communications.IMC has become central to business’ IMC has become central to business’ communication strategies.communication strategies.The 6M model of communication guides The 6M model of communication guides the advertising management process.the advertising management process.New communication technologies have New communication technologies have made media decisions more complex.made media decisions more complex.Multiple methods of assessing Multiple methods of assessing advertising effectiveness are being used.advertising effectiveness are being used.


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