Professor Chip BesioCox School of Business

Southern Methodist University

Marketing MixPROMOTION

Sales Promotions (short-term incentives)

Personal Selling

Public Relations

Direct Marketing

Advertising

What Is Advertising?

PaidPaid form of non-personalnon-personal presentation of ideas, product

Main vehicle used to build imagebuild image

Traditional Communication Model

Rules1. Consider the receiver2. Determine the desired response

Advertising Objectives

Informative AdvertisingBuild Primary Demand

Informative AdvertisingBuild Primary Demand

Persuasive AdvertisingBuild Selective Demand

Persuasive AdvertisingBuild Selective Demand

Comparison AdvertisingCompares One Brand to

Another

Comparison AdvertisingCompares One Brand to

Another

Reminder AdvertisingKeeps Consumers Thinking

About a Product.

Reminder AdvertisingKeeps Consumers Thinking

About a Product.

More Recent Communications Models

User expects a degree of personal control of information

Individuals are active participants in communications (e.g., multiple feedback loops, immediate communication)

Browsing the web results in a level of satisfaction and pleasure

Message Strategy

Considerations in developing the message

What are the objectivesobjectives?

Who is target markettarget market?

What are current perceptionsperceptions of the brand?

Appeal• Rational vs. Emotional• Product-focused vs. Customer-focused

Appeal• Rational vs. Emotional• Product-focused vs. Customer-focused

Message Execution

Effective ad copy must capture the target Market’s attention and interest

Point-of-View• One-sided• Two-sided• Comparative

Point-of-View• One-sided• Two-sided• Comparative Should Be:

• Meaningful• Believable• Distinctive

Should Be:• Meaningful• Believable• Distinctive

Message ExecutionEXAMPLES

TypicalMessage

ExecutionStyles

TypicalMessage

ExecutionStyles

TestimonialEvidence

TestimonialEvidence Slice of LifeSlice of Life

ScientificEvidence

ScientificEvidence LifestyleLifestyle

TechnicalExpertise

TechnicalExpertise FantasyFantasy

MusicalMusical

PersonalitySymbol

PersonalitySymbol

Mood orImage

Mood orImage

Media

Needs to provide access to the target target marketmarket

Needs to fit with productproduct

Needs to fit with the messagemessageGenerate exposures cost cost effectivelyeffectively

When and How Often to AdvertiseTimingTiming - Depends upon viewing and/or

reading habitsFrequencyFrequency - depends on the complexity of

the messageWear outWear out - Advertising too frequently risks

negative associations with the brand and “tuning out

Advertising ArithmeticReach - The percentage of the population that has been

exposed to the advertisement at least once (cannot exceed 100%)

Frequency - The average number of times that a reached individual has been exposed to the advertisement

GRPs (Gross Rating Points) - Usually expressed as a percentage of the population, it measures the total number of exposures that result from a given set of media options (can exceed 100%).

GRPs = Reach x Frequency

How Do We Evaluate Ads?

Recall

Recognition

Theater tests

QUESTION: “I know that half of my advertising is wasted. My problem is that I don’t know which half.”

--- John Wannamaker (circa 1935)

Mock magazines

Behavior

Hits/click-throughs

SALES?

WHAT IS THE RELATIONSHIPBETWEEN AD SPENDING AND RESULTS?

Advertising

Awareness/Attitudes

Who Develops the Advertising?

Sales Departments inSmall Companies

Sales Departments inSmall Companies

Advertising Agency

Firm that Assists Companiesin Planning, Preparing,

Implementing and Evaluating Their

AdvertisingPrograms.

Advertising Agency

Firm that Assists Companiesin Planning, Preparing,

Implementing and Evaluating Their

AdvertisingPrograms.

Advertising Departments in Larger Companies

Advertising Departments in Larger Companies

Television Advantages Large audience Low cost per exposure High impact- colour, sound and

movement Can target specific groups

Disadvantages Very high overall cost Limited prime time space Short-lived May not be watched- visual

wallpaper Proliferation of channels

reduces audience Conveys only a limited message

Magazines AdvantagesUseful for targeting specific

groupsGood reproduction- high

quality gloss imagesLong life-read at leisureCan be linked to featuresAll consumer interests

catered for

DisadvantagesCan be expensiveLong lead timeSome magazines are only

published monthly Moderate impactSlow impact due to long lifeMagazines with limited

readership are not suitable for mass marketing

Advertising on the Internet

Paid-for search inclusion (e.g. Google Adwords)Company website.Banner ads - on line adverts on relevant website.Link exchange- mutual exchange of links

between web sites or similar or complementary interest.

Search engine/directory listing.Ezine/email sponsorship- on line magazines

delivered to subscribers via email.

Advertising and Promotion

Advertising and Promotion

Internet advertising is rapidlyreplacing some traditional ad forms

Radio AdvantagesRelatively inexpensiveCan target specific segmentRelatively mobileLocal

DisadvantagesLimited impactNo visionShort lifeListener’s attention limitedAudio wallpaperMainly local rather than

national

Newspapers AdvantagesWidely readCan target specific

segmentsFrequent publicationShort lead time Inexpensive compared to

televisionLocal, regional and national

papers availableColour printing adds to

impact

DisadvantagesShort lifeLow impactMay get lost in the rest of

the paperNot every group reads a

paperHigh costs especially for

national newspaper

Cinema AdvantagesHigh impactCaptive audienceCan be specifically targetedLocal audienceVisual, sound, movement

DisadvantagesLimited audienceMainly young audienceShort lived messageMay only be seen once

Outdoor (Billboards)

AdvantagesRepeatedly seen 24/7 coverage Target particular areaMay encourage impulse

buying if close to shopsLocal media

DisadvantagesMessage must be short and

simpleCannot target socio

economic groupsRarely attract full attentionShort livedMay be seen as traffic

hazardDifficult to measure

effectiveness

Advertising and Promotion - Outdoor

Cityscape Spectaculars

Wallscapes

Digital BulletinsBulletins w/ Extensions

Advertising and Promotion - Outdoor

The Evolution of Advertising in the United States - Madison and VineBrandedEntertainment

The blending of advertising and integrated brand promotion with entertainment programming

Brand “placement” key tactic here

Some films and television programs are considered hour long promotions

IMC - A Broader View of Advertising

IMC involves integrating all communications with the customer to develop a more personal, more effective relationship

Mass MarketingMass Marketing• Selling orientation• One-size-fits-all

Mass MarketingMass Marketing• Selling orientation• One-size-fits-all One-on-FewOne-on-Few

MarketingMarketing• De-massification• Customer knowledge• Interactivity

One-on-FewOne-on-Few MarketingMarketing• De-massification• Customer knowledge• Interactivity

One-on-OneOne-on-One Marketing?Marketing?

• Customization• Micro-marketing• Relationships

One-on-OneOne-on-One Marketing?Marketing?

• Customization• Micro-marketing• Relationships

IMCIMC

IMCINTEGRATION

On Strategy

Direct MarketingDirect Marketing

Contact PointsContact Points

When - TimingWhen - TimingWhere - MediaWhere - Media

MessageMessage

AdvertisingAdvertisingPromotionPromotion

Marketing P.R.Marketing P.R.

IMCMEASUREMENT

Another key to IMC is measuring:ExposuresAttitudesBehaviors

...and tracking the changes over time

This enables monitoring of customer relationships