Lectures Marketing management: Chapter 18 - ThS. Nguyễn Tiến Dũng

Lectures Marketing management - Chapter 18: Managing mass communications (Advertising, sales promotions, events and experiences, and public relations) provides students with the knowledge: Advertising, sales promotion, events and experiences, public relations. Invite you to refer to the disclosures.

CHAPTER 18 MANAGING MASS COMMUNICATIONS: ADVERTISING, SALES PROMOTIONS, EVENTS AND EXPERIENCES,

AND PUBLIC RELATIONS

Nguyen Tien Dung, MBA Email: dung.nguyentien3@hust.edu.vn

brand-building events and experiences?

4. How can companies exploit the potential of

public relations and publicity?

Chapter Main Contents

1. Advertising

2. Sales promotion

3. Events and Experiences

4. Public relations

1 Advertising Program: 5M’s Model

1.1 Setting the objectives

● Types of purpose:

● To inform: informative ads, to create brand awareness and knowledge

● To persuade: persuasive ads, to create brand preferences and

stimulate making buying decisions

● To remind: reminder ads, to stimulate re-buy actions

● To reinforce: reinforcement ads

● To increase among 30 million homemakers

who own automatic washers the number

who identify brand X as a low-sudsing

detergent, and who are persuaded that it

gets clothes cleaner, from 10 percent to 40 percent in one year.

A A





Factors Influencing the Advertising Budget

Advertising Budget

Stage in the

product life

cycle

Market share and consumer

base

Competition and clutter

Advertising frequency

Product substitutability

● Ad expenditure:

● 50%: the current year’s sales

● 50%: the next year’s sales

● Other studies reinforce these

conclusions In a 2004 IRI study

of 23 brands, advertising often

didn’t increase sales for mature

brands or categories in decline

● A review of academic research

found that advertising elasticities

were estimated to be higher for

new (.3) than for established

products (.1).

Ad Elasticity

1.3 Ad Message

● Message generation and evaluation: what to

say

● Unique selling proposition (USP)

● Create alternative ad themes then choose

● Creative development and execution: how to

say

● TV ads

● Radio ads

● Print ads

● Legal and social issues:

● Messages must follow local regulations

● Messages have to fit with the local culture

● The tagline for California

Milk Processor Board’s “Got

milk?” campaign has also

been used as part of the

“milk mustache” print ad

series, featuring numerous

celebrities such as St Louis

Cardinals baseball slugger

Albert Pujols.

Print Ad Evaluation

1. Is the message clear at a glance? Can you

quickly tell what the advertisement is all

about?

2. Is the benefit in the headline?

3. Does the illustration support the headline?

4. Does the first line of the copy support or

explain the headline and illustration?

5. Is the ad easy to read and follow?

6. Is the product easily identified?

7. Is the brand or sponsor clearly identified?

1.4 Ad Media

● Decisions

● Choosing media types

● Choosing specific media vehicles

● Scheduling media: macro and micro schedules

● Total number of exposures (E) or Gross

Rating Point (GRP): GRP = R x F

● F = 3, R = 80(%)  GRP = 240

● F = 6, R = 40(%)  GRP = 240

● If another media schedule has a GRP of 300, it

has more weight, but we cannot tell how this

weight breaks down into reach and frequency.

● Weighted number of exposures (WE) This

is the reach times average frequency times

average impact, that is WE = R × F × I.

● Factors to consider:

● Target audience media habits

● Product characteristics:

● Women’s clothing: color magazines

● Hi-tech products: hi-tech media

● Message characteristics

● Media Cost: Costs per thousand (CPM)

Choosing Among Major Media Types

Alternative advertising options

Point of Purchase Display

Selecting specific media vehicles

● Evaluative criteria:

● Circulation: the number of units is issued and

carries the ad

● Audience: the number of people exposed to the

vehicle (more than circulation)

● Effective audience

● Effective ad-exposed audience

● CPM: cost per thousand

● Audience quality

● Audience attention probability

Media Timing and Allocation

● Types of schedules:

● Macro schedules: for seasons and the business cycle

● Micro schedules: for months, weeks, days and hours

● Timing pattern: influencing factors

● Buyer turnover: the higher, the more continuous

Advertising Timing Patterns

● Historical approach: study the correlation

between sales and ad expenses

● Experimental design: pretest-posttest

measurement

2 Sales Promotion (SP)

● Objectives

● Advertising versus Promotion

● Major Decisions

● SP provides incentives to buy

● To attract new triers

● To attract brand switchers

● To reward loyal customers and maintaining a long-term relationship with existing

customers

● To increase the repurchase rates of

occasional users

Major Decisions

● Determining objectives

● Selecting SP tools:

● Consumer promotion tools

● Trade promotion tools

● Business and sales-force promotion tools

● Developing the program

● Pretesting, implementing, controlling, and

evaluating the program

Evaluating a SP program

● Sales comparison

● Customer survey

● Experiments

3 Events and Experiences

● Events:

● Reasons to sponsor events

● Designing an event

● Choosing suitable events

● Designing sponsorship programs

● Measuring sponsorship activities

● Experiences

Reasons to sponsor events

1 To identify with a particular target market or life style.

2 To increase awareness of company or product name

3 To create or reinforce consumer perceptions of key brand

image associations

4 To enhance corporate image dimensions

5 To create experiences and evoke feelings

6 To express commitment to the community or on social

issues

7 To entertain key clients or reward key employees

8 To permit merchandising or promotional opportunities

Choosing an ideal event

1. The event’s audience closely matches the

desired target market

2. The event generates much favorable

5. The event reflects or enhances the brand or

corporate image of the sponsor

Measuring the effectiveness of an event

● The supply-side method:

● To estimate the amount of

time or space devoted to

media coverage of an event

● The "demand-side"

method:

● Event spectators are

identified and surveyed to

measure sponsor recall of the

event as well as resulting

attitudes and intentions

toward the sponsor

PR functions

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 Counseling - Advising management about public issues

and company positions and image during good times and bad.

Marketing PR tasks

● Assisting in the launch of new products

● Assisting in 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

Major decisions in marketing PR

● Setting objectives

● Choosing messages and vehicles

● Implementing the plan and evaluating results