MARKETING MANAGEMENT Chapter Questions

12th edition

• What steps are involved in developing an

18 advertising program?
Managing Mass • How should sales promotion decisions be
Communications made?
• What are the guidelines for effective brand-
building events and experiences?
• How can companies exploit the potential of
public relations and publicity?

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Kotler Keller

Advertising Procter & Gamble’s Advertising History

Any paid form of nonpersonal presentation

and promotion of ideas, goods, or
services by an identified sponsor.

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Figure 18.1 The Five M’s of Advertising Advertising Objectives

Informative Persuasive
advertising advertising

Reminder Reinforcement
advertising advertising

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Factors to Consider in Setting an

Developing the Advertising Campaign
Advertising Budget
Stage in the product life cycle • Message generation
and evaluation
Market share and consumer base • Creative development
and execution
Competition and clutter • Social responsibility
review
Advertising frequency

Product substitutability

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Creative Brief Television
Advantages Disadvantages
• Positioning statement • Brand promise
• Reaches broad • Brief
• Key message • Evidence of promise
spectrum of • Clutter
• Target market • Media consumers • High cost of
• Objectives • Background • Low cost per exposure production
• Key brand benefits • Creative • Ability to demonstrate • High cost of
considerations product use placement
• Ability to portray • Lack of attention by
image and brand viewers
personality
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Print Ads Print Ad Components

Advantages Disadvantages
• Detailed product • Passive medium
Headline
information • Clutter
• Ability to communicate • Unable to
user imagery demonstrate product
• Flexibility use Picture
• Ability to segment

Copy Signature

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Print Ad Evaluation Criteria Media Selection
• Is the message clear at a glance?
• Is the benefit in the headline? • Reach
• Does the illustration support the headline? • Frequency
• Does the first line of the copy support or • Impact
explain the headline and illustration? • Exposure
• Is the ad easy to read and follow?
• Is the product easily identified?
• Is the brand or sponsor clearly identified?
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Figure 1.2 Relationship among Trial,

Awareness, and the Exposure Function Reach x Frequency = GRPs

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Choosing Among Major Media Types Major Media Types
• Target audience and • Newspapers • Outdoor
media habits • Television • Yellow pages
• Product • Direct mail • Newsletters
characteristics • Radio • Brochures
• Message • Magazines • Telephone
characteristics
• Internet
• Cost

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Table 18.2 Marketing

Communication Expenditures (2001)
Place Advertising
Media $ % of Total
TV 52.7 22 • Billboards
• Public spaces
Radio 19.4 8
• Product placement
Internet 3.4 1 • Point-of-purchase
Magazines 12.3 5

Newspaper 49.4 21

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 Figure 18.3 Classification of
Measures of Audience Size
Advertising Timing Patterns
• Circulation
• Audience
• Effective audience
• Effective ad-exposed
audience

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Factors Affecting Timing Patterns Media Schedule Patterns

• Buyer turnover
• Continuity
• Purchase frequency
• Concentration
• Forgetting rate
• Flighting
• Pulsing

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Evaluating Advertising Effectiveness Sales Promotion

• Communication Effect
Research
– Consumer Collection of incentive tools, mostly
feedback method short term, designed to stimulate
– Portfolio tests
quicker or greater purchase
– Laboratory tests
of particular products or services
• Sales-Effect Research
by consumers or the trade.

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Sales Promotion Tactics Using Sales Promotions

Consumer-directed Trade-directed
Establish objectives
• Samples • Price offs
• Coupons • Allowances Select tools
• Cash refund offers • Free goods
• Price offs • Sales contests Develop program
• Premiums • Spiffs
• Prizes • Trade shows Pretest
• Patronage rewards • Specialty advertising
• Free trials Implement and control
• Tie-in promotions
Evaluate results
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Events and Experiences Why Sponsor Events?
• $11.14 billion spent on • To identify with a particular target market or life
sponsorship in 2004 style
– 69% sports • To increase brand awareness
– 10% tours • To create or reinforce consumer perceptions of
key brand image associations
– 7% festivals, fairs • To enhance corporate image
– 5% arts • To create experiences and evoke feelings
– 9% causes • To express commitment to community
• To entertain key clients or reward employees
• To permit merchandising or promotional
opportunities
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Using Sponsored Events Ideal Events

Establish objectives Audience closely matches target market

Choose event opportunities Event generates media attention

Design program Event is unique with few sponsors

Implement and control Event lends itself to ancillary activities

Event enhances brand image of sponsor

Measure effectiveness

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Public Relations Functions Marketing Public Relations Functions

• Press relations • Assist in product launches

• Product publicity • Assist in repositioning mature products
• Build interest in a product category
• Corporate communications
• Influence specific target groups
• Lobbying
• Defend products
• Counseling • Build corporate image

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Major Tools in Marketing PR Steps in Marketing PR

• Publications Establish objectives

• Events
Choose messages
• Sponsorships
• News Choose vehicles
• Speeches
• Public Service Implement and control
Activities
• Identity Media Measure effectiveness

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Marketing Debate Marketing Discussion

Has TV Advertising Lost Power? What are some of your favorite TV

ads? Why? How effective are
Take a position:
1. TV advertising has faded in importance.
the message and creative
2. TV advertising is still the most powerful strategies? How are they
advertising medium. building brand equity?

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