01

An Introduction to Integrated
Marketing Communications

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

 The Role of Marketing

Advertising & Nonprofit

Promotion Organizations
Inform customers of Solicit donations
a product or service
Offer intangible
Convince them of its social and
ability to satisfy their psychological
wants or needs satisfactions
Help develop and
sustain relationships

1-2
 The Marketing Mix

• The Four Ps
• Product
• Price
• Place
• Promotion

1-3
Building Brands in a Recession

Consumers

Spend less money

Carefully scrutinize purchases
Rethink brand loyalties
Willing to trade off or down
More price sensitive
More value conscious

1-4
 Building Brands in a Recession

Companies

Reduce advertising budgets

Balance discounts/promos w/brand image
Must overcome consumer distrust
Change product marketing focus
Increase online social presence
Look for new ways to remain relevant

1-5
 Advertising Classifications

National

Retail / Local

Primary / Selective Demand

Consumers

Business-to-Business

Professional

Trade
Organizations
1-6
 Forms of Direct Marketing

Direct
Direct Mail Catalogs
Response Ads

Telemarketing Direct Selling

Database Shopping Internet

Management Channels Sales

1-7
 Interactive Marketing

• Interactive media
• Internet
• Kiosks
• Interactive television
• Cell phones
• Other mobile devices

1-8
 Sales Promotion

Marketing activities that provide

extra value or incentives to the…

Sales Ultimate
Force Consumer
Retailers

1-9
 Publicity

A news story,
editorial, or High credibility and
announcement to low cost
a mass audience
Not directly paid for
or run under
identified sponsor

Is sometimes Not always under

unfavorable company control

1-10
 Public Relations

• Management function
• Evaluates public attitudes
• Identifies items of public interest
• Executes a program of action to earn
public understanding and acceptance

• Primary objectives
• Establish and maintain a positive image
of the company among various publics

1-11
 Personal Selling

• Person-to-person communication
• A seller attempts to assist and/or
persuade prospective buyers to make a
purchase or act on an idea
1-12
 Elements of a Marketing Plan

Detailed situation analysis

Specific marketing objectives

Marketing strategy and program

Program for implementing the strategy

Process for monitoring & evaluating performance

1-13
Promotional Program Situational Analysis

Internal External

Firm’s promotional Customer analysis

organization/capabilities Competitive analysis
Review of previous Environmental analysis
programs and results
Assess firm/brand
image
Assess strengths and
weaknesses of product
or service

1-14
Monitoring, Evaluation, Control

Basic Goals

Determine how well the program

is doing, and why
Problem correction
Continual management feedback
Input for future promotions/strategies

1-15
• The Role of IMC in the
Marketing Process
Marketing & Promotions Process Model

2-17
Marketing Strategy and Analysis

Strategic Marketing Plan

Target
Opportunity Competitive
Market
Analysis Analysis
Selection

2-18
The Target Marketing Process

Identify markets with unfulfilled needs

Determine market segmentation
Select a market to target
Position through marketing strategies

2-19
 Target Market Identification

Isolate Consumers With Similar…

Lifestyles Social class

Geographic
Economic status Age
location

Marital status Needs

2-20
 Bases for Market Segmentation

Demographic Geographic Socioeconomic

Gender Region Income
Age City size Education
Race Metropolitan area Occupation
Life stage Density
Birth era
Household size Psychographic
Residence tenure Personality
Marital status Values/Lifestyle

2-21
Positioning Strategies

Attributes and Benefits

Price/Quality
Use/Application
Product Class
Product Users
Competitors
Cultural Symbols

2-22
 The Marketing Planning Program

Product Distribution
Decisions Channels

Promotional Price
Strategy Decisions

2-23
Branding Goals

2-24
 Branding and Packaging Decisions

BRANDING PACKAGING

Brand Advertising Has become Often the

name creates increasingly customers’
commun- and important first
icates maintains exposure
attributes brand to product
and equity
meaning

2-25
 Pricing Decisions

Factors the firm What consumers

must consider give up to buy a
product or service

Costs Time

Demand Mental activity

Competition Behavioral effort

Perceived value

2-26
 Channels and Image

• Channels can impact communication

objectives
• Image
• Store displays
• Point-of-purchase merchandising
• Shelf footage

2-27
 Types of Channels

• Direct
• Driven by direct-response ads,
telemarketing, the Internet
• Often used when selling expensive and
complex products

• Indirect
• Network of wholesalers and/or retailers

2-28
 c3

• Organizing for Advertising and

Promotion: The Role of Ad Agencies
and Other Marketing Communication
Organizations
Participants in the IMC Process

3-30
Advertising Dept. Under a Centralized System

President

Research
and Human
Production Finance Marketing
develop- resources
ment

Marketing Product
Advertising Sales
research planning

3-31
 Decentralized Advertising System

Corporate

Production Finance Marketing R&D Human

Resources

Sales Product Marketing

Management services

Brand Advertising Marketing

Manager Dept Research

Ad agency
Sales promotion
Brand
Manager Package design

Ad agency Merchandising

3-32
 Full-Service Agencies

Planning Performing
Full range of advertising research
marketing
communication Creating
Selecting media
advertising
and promotion
services Producing
advertising

Strategic market Interactive

planning capabilities
Nonadvertising
services Sales
Package design
promotions

Direct Public relations

marketing and publicity

3-33
 Agency Services

Account Marketing Creative Mgmt &

Services Services Services Finance

The link Research Creation, Accounting

between department execution
agency and of ads Finance
client May include
account Copywriter Human
Managed planners artists, resources
by the other New
account Media dept. specialists
obtains business
executive generation
media
space, time

3-34
 Creative Boutiques

Creative Provide only

Boutiques creative services

May subcontract from

full-service agencies

Strength is turning out

creative work quickly

3-35
 Media Buying

Media
Specialize in buying media,
Specialist
especially broadcast time
Companies

Agencies and clients develop

media strategy

Media buying organizations

implement strategies, and
buy time and space

3-36
Agency Compensation Methods

Commissions from media

Fee, cost, and incentive-based systems

Percentage charges

3-37
 Evaluating Agencies

Financial Audit Qualitative Audit

Verify costs, expenses Planning

Personnel hours billed Program development

Payments to media Implementation

Payments to suppliers Results achieved

3-38
Direct Marketing Agency Activities

Direct-Marketing Agency Services

Database
Media services
management

Direct mail Creative capabilities

Research Production

3-39
Sales Promotion Agencies

Promotional planning

Creative research

Tie-in coordination

Fulfillment

Premium design and

manufacturing

Catalog production

Contest/sweepstakes
management
3-40
Functions Performed by Public Relations Firms

Strategy Public Special

development affairs events

Generating News releases, Managing

publicity communication crisis

Coordination
Lobbying Research w/promotional
areas

3-41
Functions Performed by Interactive Agencies

Interactive Media Creation

Websites
Banner ads
Search engine optimization
Mobile marketing
Social media campaigns
Digital media

3-42
 Collateral Services

• Typical collateral services

• Marketing research
• Package design
• Consultants
• Photographers
• Printers
• Video production
• Event marketing

3-43
CB & IMC CHAP - 4
 Consumer Decision Making

Decision Stage Psychological Process

Problem recognition Motivation

Information search Perception

Alternative evaluation Attitude formation

Purchase decision Integration

Post-purchase evaluation Learning

4-45
 Sources of Problem Recognition

New Needs
Out of Stock Dissatisfaction
or Wants

Related Products, Market-Induced New

Purchases Recognition Products

4-46
Maslow’s Hierarchy of Needs

Self-
actualization
needs
(self-development
and realization)

Esteem needs
(self-esteem,
recognition, status)

Social needs
(sense of belonging, love)

Safety needs
(security, protection)

Physiological needs
(hunger, thirst)

4-47
The Perception Process

Receive

Select

Organize

Interpret

4-48
 What is a sensation?

Taste Hearing
Immediate,
direct response
of the senses
Smell Touch

Sight

4-49
The Selective Perception Process

Selective Exposure

Selective Attention

Selective Comprehension

Selective Retention

4-50
 Evaluation of Alternatives

All Available Brands

Brand A Brand B Brand C Brand D Brand E

Brand F Brand G Brand H Brand I Brand J

Brand K Brand L Brand M Brand N Brand O

Evoked Set of Brands

Brand B Brand E

Brand F Brand I

Brand M
4-51
Two Forms of Evaluation Criteria

Evaluative Criteria

Objective Subjective

Price Style
Warranty Appearance
Service Image

4-52
 Consumers Have Many Attitudes

Individuals Products

Ads Brands
Attitudes
Toward
Media Companies

Retailers Organizations

4-53
 Ways to Change Attitudes

Change beliefs about an important attribute

Change perceptions of the

value of an attribute

Add a new attribute to the

attitude formation mix

Change perceptions or beliefs about

a competing brand

4-54
 The Decision Process

Pre- Post
Decision
evaluation evaluation

Integration Purchase Satisfaction

processes intention

Dis-
Heuristics
Brand loyalty satisfaction

Affect referral
decision rule Cognitive
dissonance

4-55
 How Consumers Learn

Thinking Conditioning Modeling

Based on Based on Based on

intellectual conditioning emulation
evaluation and through (copying) of
problem association or behavior of
solving reinforcement/ others
punishment

4-56
 Situational Determinants

Purchase
Situation
Usage Communications
Situation Situation

4-57
The Nature of Communication

5-58
Message Development

Content

Design Structure

5-59
 Communication Channels

Personal Nonpersonal
Channels Channels

Word of Personal Print Broadcast

Mouth Selling Media Media

5-60
 Field of Experience Overlap

Different Worlds

Sender Receiver
Experience Experience

Moderate Commonality
Receiver
Sender Experience
Experience

High Commonality
Receiver
Receiver Experience
Sender
Experience
Experience

5-61
 Successful Communication

Select an appropriate source

Develop a properly encoded message

Select appropriate channel for target audience

Receive feedback

5-62
Identifying the Target Audience

Mass Markets and Audiences

Markets Segments

Niche Markets

Individual &
Group
Audiences

5-63
The Response Process

5-64
Alternative Response Hierarchies

Topical Involvement
High Low
Learning Low involvement
model model
Perceived product

High
Cognitive
differentiation

Cognitive
Affective
Conative

Dissonance/ Conative
attribution model
Low

Conative
Affective Affective
Cognitive

5-65
 The FCB Planning Model

Thinking Feeling

Involvement 1 2
High

Informative Affective
The Thinker The Feeler

3 4
Involvement

Habit Self-
Low

Formation Satisfaction
The Doer The Reactor

5-66
 Developing Promotional Strategies

• Ad options based on the FCB grid

• Rational versus emotional appeals
• Increasing involvement levels
• Evaluation of a think-type product on the
basis of feelings
5-67
A Model of Cognitive Response

5-68
 Cognitive Response Categories

Product/Message Thoughts

Counterarguments Support arguments

Source-Oriented Thoughts

Source derogation Source bolstering

Ad Execution Thoughts

Thoughts about Affect attitude

the ad itself toward the ad
5-69
Elaboration Likelihood Model (ELM)

Focuses on the way consumers respond to persuasive

messages, based on the amount and nature of elaboration
or processing of information

Routes to Attitude Change

Central route – Peripheral route –

ability and
motivation to process
a message is high and
close attention is paid
to message content
ability and
motivation to process
a message is low;
receiver focuses more
on peripheral cues
than on message
content

5-70
How Advertising Works

5-71
 06

Source, Message, and

Channel Factors

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

 Promotional Planning Elements

Promotional Planning

1 2 3 4
Receiver Channel Message Source
Comprehension Presentation Yielding Attention

Can the Which media What type of Who will be

receiver will increase message will effective in
comprehend presentation? create getting
the ad? favorable consumers’
attitudes? attention?

6-73
Source Attributes & Receiver Processing Modes

6-74
 Source Credibility

Ethical

Knowledgeable Trustworthy

Skillful Source Experienced

Believable Unbiased

Honest

6-75
 Limitations of Credible Sources

• High- and low-credibility sources

• Equally effective when arguing for a
position opposing their own best interest
• Sleeper effect
• Persuasiveness increases over time
6-76
 Source Attractiveness

Similarity Familiarity Likeability

Resemblance Knowledge of the Affection for the

between the source through source resulting
source and repeated or from physical
recipient of the prolonged appearance,
message exposure behavior, or
personal traits

6-77
Advertising Risks of Using Celebrities

The celebrity may overshadow

the product being endorsed

The celebrity may be overexposed,

reducing his or her credibility

The target audience may not be

receptive to celebrity endorsers

The celebrity’s behavior may pose

a risk to the company

6-78
 Choosing a Celebrity Endorser

Match
Trust
w/audience

Match w/product Risk

Factors

Image Familiarity

Cost Likability

6-79
 Q-Score = Star Power

• Q-Score Formula
• The percent of
those who say “one
of my favorites”

• Divided by the
percent who have
heard of him/her

Lance Armstrong
6-80
 Source Power

Perceived Perceived Perceived

control concern scrutiny

Compliance

6-81
 Message Appeal Choices

Appeal to the logical, Appeal to the feelings

rational minds of and emotions of
consumers consumers

Appeal to both

6-82
 Message Appeal Options

Comparative Fear Humor

Ads Appeals Appeals

• Especially • May stress • Can attract and

useful for new physical danger hold attention
brands or threats to
health
• Often the best
• Often used for remembered
brands with • May identify • Puts consumers
small market social threats
in a positive
share
• Can backfire if mood
• Used often in level of threat
political is too high
advertising

6-83
 Humor Appeals

Pros Cons
Aids attention and Does not aid persuasion in
awareness general

May aid retention of the May harm recall and

message comprehension

Creates a positive mood May harm complex copy

and enhances persuasion registration

May aid name and simple Does not aid source

copy registration credibility

May serve as a distracter, Not effective in bringing

reducing counterarguing about sales

May wear out faster than

non-humorous ads
6-84
Personal vs. Non-personal Channels

Personal Non-personal
Selling Advertising

•Flexible • Geared to
•Powerful large audience
•Real time • Static

6-85
Differences in Information Processing

Self-Paced Externally
Media Paced Media

• Newspapers • Radio

• Magazines vs. • Television

• Direct Mail

• Internet

6-86
 07

Establishing Objectives
and Budgeting for the
Promotional Program

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

 Characteristics of Objectives

Specific

Attainable Measurable

Realistic Quantifiable

7-88
Sales vs. Communications Objectives

7-89
 Factors Influencing Sales

Technology
Competition

The
Advertising economy
& promotion

Product
quality
Distribution
Price

7-90
 Communications Effects Pyramid

5% Use

e
tiv
na
20% Trial
Co
e

25% Preference
iv
ct
fe
Af

40% Liking
ve

70% Knowledge/comprehension
iti
gn
Co

90% Awareness

7-91
GfK Purchase Funnel

7-92
 The DAGMAR Approach

Define Awareness

Advertising
Goals for
Comprehension

Measuring Conviction
Advertising
Results Action

7-93
 Advertising-Based View of Marketing

Ads

Acting on Consumers

7-94
Marginal Analysis

7-95
 Budget Adjustments

Increase If cost is less than the

Spending marginal revenue generated

Hold If the cost is equal to the

Spending marginal revenue generated

Decrease If the cost is more than the

Spending marginal revenue generated

7-96
 Sales Response Models

A. Concave-Downward B. S-Shaped Response

Response Curve Function
Incremental Sales

Incremental Sales

Initial Spending

High Spending
Middle Level

Little Effect
Little Effect

High Effect
Range A Range B Range C
Advertising Expenditures Advertising Expenditures

7-97
Factors Influencing Advertising Budgets

Product Hidden product

life cycle qualities

Product Product
durability price

Purchase
Differentiation frequency

7-98
Top-Down vs. Bottom-Up Budgeting

7-99
 Build-Up Approaches

• Objective and Task Method

• Define communications objectives to be
accomplished
• Determine specific strategies and tasks
needed to attain them
• Estimate costs associated with
performance of these strategies and tasks

7-100
Implementing the Objective and Task Approach

Isolate objectives

Determine tasks required

Estimate required expenditures

Monitor

Reevaluate objectives

7-101
 08

Creative Strategy:
Planning and Development

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

 Advertising Creativity

Determining what the

Creative
advertising message will say
Strategy
or communicate

Creative Determining how the

message strategy will be
Tactics executed

8-103
 Determinants of Creativity

Divergence Relevance

Originality Ad-to-consumer
Flexibility Brand-to-consumer
Elaboration
Synthesis
Artistic Value

8-104
Creative Personnel

Unconventional

Abstract

Less structured

Less organized

Intuitive

8-105
 Young’s Creative Process

Get raw material and data, and

Immersion
immerse yourself in the problem

Take the information, work it over,

Digestion
wrestle with it in your mind

Turn the information over to the

Incubation
subconscious to do the work

Illumination “Eureka! I have it!” phenomenon

Study the idea, evaluate it,

Verification
reshape it for practical usefulness

8-106
Wallas’ Creative Process Model

Illumination Preparation
Seeing the Gathering
Solution Information

The
Creative
Process

Verification Incubation
Refining Setting
the Idea Problem
Aside

8-107
 Getting Creative Input

Use the
Read anything product to
Listen to what
related to the become
people are
product or familiar
talking about
market with it

Conduct
studies of Ask everyone
Work in and
product, involved for
learn about the
service, information
client’s
audience
business

8-108
 Input Verification and Revision

•Evaluate ideas
•Reject the inappropriate
Objective
•Refine the remaining
•Give ideas final expression

•Directed focus groups

•Message communication studies
Techniques
•Portfolio tests
•Viewer reaction profiles

8-109
 An Advertising Campaign

Integrated

Interrelated Marketing Coordinated

Communication
Activities

In Different Centered on a Over a Time

Media Theme or Idea Period

8-110
 The Creative Brief

• Basic problem or issue the advertising

must address
• Advertising and communications
objectives
• Target audience
• Major selling idea or key benefits
to communicate
• Creative strategy statement
• Supporting information and
requirements

8-111
 Marketing Information Flow

Knowledge
of vital
marketing
information

Client/agency Internal agency

communication communication

Client gatekeepers Agency gatekeeper Creative staff

(Brand manager) (Account manager)

Internal client
decision Agency gatekeeper Art is created
to share decision on sharing
information client info with staff
with agency

8-112
Search for a Major Selling Idea

Finding the Use a Unique

inherent drama Selling Position

Seeking the
Major Idea

Positioning Create a Brand

Image

8-113
The Unique Selling Proposition (USP)

Benefit Unique Potent

Buy this Must be Promise

product/serv unique to must be
ice and you this brand or strong
get this claim; rivals enough to
benefit can't or don't move mass
offer it millions

8-114
Positioning

Establish a particular
place in the
customer’s mind for
the product or service

Based on product
attributes/benefits,
price/quality, use or
application, type of
user, or problem
solved

8-115
 09

Creative Strategy:
Implementation and Evaluation

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

 Appeals and Execution Style

The approach used to attract

the attention of consumers
Advertising
Appeals To influence consumer
feelings toward a product,
service, or cause

The way an appeal is turned

into an advertising message
Execution
Style
The way the message is
presented to the consumer

9-117
Informational/Rational Appeals

Feature
Focus on the dominant product traits

Competitive
Makes comparisons to other brands
Price
Makes price offer the dominant point
News
News announcement about the product
Popularity
Stresses the brand’s popularity

9-118
Appealing to Personal States or Feelings

Personal Social-Based
Safety Recognition
Security Status
Fear Respect
Love, Affection Involvement
Embarrassment
Happiness, Joy
Affiliation
Nostalgia
Rejection
Sentiment
Acceptance
Excitement Approval
Sorrow, Grief

9-119
 Transformational Ads

Feelings Images
The ads
create . . .
Meanings Beliefs

Richer Warmer
It makes the
product use
More experience. . . More
Exciting Enjoyable

9-120
Levels of Relationships With Brands

Emotions

Personality

Product Benefits

9-121
 Ad Execution Techniques

Straight sell Animation

Scientific/Technical Personality Symbol

Demonstration Imagery

Comparison Dramatization

Testimonial Humor

Slice of life Combinations

9-122
Basic Components of Print Advertising

Headline
Words in the Leading Position of the Ad

Subheads
Smaller Than the Headline, Larger Than the Copy

Body Copy
The Main Text Portion of a Print Ad

Visual Elements
Illustrations Such As Drawings or Photos

Layout
How Elements Are Blended Into a Finished Ad

9-123
 The Power of Audio in Commercials

• Audio elements
• Voices
• Music
• Sound effects
• Presentation methods
• Voiceover
• Needledrop
• Jingles

9-124
Production Stages for TV Commercials

All work before actual

Preproduction
shooting, recording

Period of filming, taping, or

Production
recording

Work after spot is filmed or

Postproduction recorded

9-125
 Client Evaluation and Approval

• Client-side approvals
• Advertising or communications manager
• Product or brand managers
• Marketing director or vice president
• Legal department
• President or CEO
• Board of directors

9-126
 Preproduction Tasks

Select a director

Choose
Preproduction
production
meeting
company

Preproduction

Production
Bidding
timetable

Cost estimation
and timing

9-127
 Production Tasks

Production

Location Timing Talent

9-128
 Postproduction Tasks

Editing Processing

Release/ Sound
shipping effects
Postproduction
Audio/video
Duplicating
mixing

Approvals Opticals

9-129
 10

Media Planning and Strategy

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

 Developing a Media Plan

Analyze the market

Establish media objectives

Develop/implement media strategy

Evaluate performance

10-131
 Using Index Numbers

Index Number
Percentage of users
in a demographic segment
Index = X 100
Percentage of population
in the same segment

10-132
Using the Brand Development Index

Brand Development Index

Percentage of brand to total

U.S. sales in market
BDI = X 100
Percentage of total U.S.
population in market

10-133
Using the Category Development Index

Category Development Index

Percentage of total product

category sales in market
CDI = X 100
Percentage of total U.S.
population in market

10-134
Using BDI and CDI

10-135
 Developing Media Strategies

• Criteria to consider during plan development

• The media mix
• Target market coverage
• Geographic coverage
• Scheduling
• Reach and frequency
• Recency
• Creative aspects and mood
• Flexibility
• Budget

10-136
 Scheduling Methods

Continuity

Flighting

Pulsing

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

10-137
 Ratings Points

• Gross ratings points (GRPs)

• GRP = Reach X Frequency
• Target ratings points (TRPs)
• The number of people in the primary
target audience the media buy will reach
• The number of times they will be reached

10-138
Marketing Factors Determining Frequency

Marketing
Factors

Brand Brand Usage

Loyalty Share Cycle

Brand Share of Purchase Target

History Voice Cycles Group

10-139
Message Factors Determining Frequency

Message Message Complexity

or Creative
Factors Message Uniqueness

New vs. Continuing Campaigns

Image Versus Product Sell

Message Variation

Wearout

Advertising Units

10-140
Media Factors Determining Frequency

Clutter

Repeat
Scheduling
Exposure
Media
Factors
Editorial
Attentiveness
Environment
Number of
Media Used

10-141
Determining Relative Cost of Print Media

Cost per thousand (CPM)

Cost of ad space
CPM = (absolute cost) X 1,000
Circulation

10-142
Determining Relative Cost of Broadcast Media

Cost per rating point (CPRP)

Cost of commercial time

CPRP = Program rating

10-143
Determining Newspaper Advertising Costs

Daily Inch Rate

Cost of ad space x 1,000

Circulation

10-144
 11

Evaluation of Media: Television and

Radio

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

 Television Advantages

Creativity and Impact

Coverage and Cost Effectiveness

Captivity and Attention

Selectivity and Flexibility

11-146
 Television Limitations

Fleeting
Cost
Message

Limited Low
Attention Selectivity
Negative
Zipping Factors
Clutter
Zapping
Negative
Distrust
Evaluation

11-147
 Network versus Spot

Affiliated stations
that are linked
Network
Purchase transactions
are simplified

Commercials shown
Spot & on local stations
Local
May be local or “national
spot” commercials

11-148
 Syndicated Programs

Off-network syndication
Sold and are “reruns”
distributed
station by
station First-run syndications
are also featured

Advertiser-
Programs sold to stations in
supported or return for air time
bartered

11-149
 Methods of Buying Time

Spot
Sponsorship Participations
Announcements

1. Advertiser 1. Participating 1. May be

assumes sponsors purchased
responsibility share the cost by daypart
for the 2. May occur or adjacency
production regularly or
and perhaps sporadically
content
3. Advertiser
2. Sponsor has doesn’t do
control and production
can capitalize
on a show’s 4. Participants
prestige lack control
over content

11-150
Common Television Dayparts

11-151
 Advertising on Cable Television

Advantages Limitations

1. National, regional, 1. Overshadowed by

and local available major networks
2. Audience
2. Highly selective fragmentation
“narrowcasting”
3. Lacks penetration
3. Low cost in major markets
4. Flexibility

11-152
TV Audience Measures

Share of Audience

Program Rating

11-153
Advantages of Radio

Cost and Efficiency

Receptivity

Selectivity

Flexibility

Mental Imagery

Integrated Marketing

11-154
Limitations of Radio

Creative Limitations

Audience Fragmentation

Chaotic Buying

Limited Research Data

Limited Listener Attention

Digital Media Competition

Clutter

11-155
 Buying Radio Time

Three national networks

Network
Radio Over 100 regional/area networks

A multitude of syndicated programs

About 20% of all spots

Spot
Radio Allows great flexibility, targeting

Purchase transaction can be difficult

Nearly 80% of advertisers are local

Local
Radio Local CATV is becoming competitive

11-156
Radio Time Classifications

11-157
 12

Evaluation of Print Media

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

The Role of Magazines and Newspapers

Reader sets Not

the pace intrusive

Selective High-
audience involvement

High
readership

12-159
 Classifications of Magazines

Consumer Farm Business

12-160
Advantages of Magazines

Selectivity

Reproduction Quality

Creative Flexibility

Permanence

Prestige

Receptivity, Engagement

Services

12-161
 Creative Flexibility

Bleed Pages

Creative
Inserts
Space

Gatefolds Pop-Ups

Cover
Positions
12-162
Special Services Offered by Magazines

•Retailer alerts
•Consumer research studies
•Split runs
•Personalized messages to
tightly targeted audiences

12-163
Disadvantages of Magazines

Costs

Limited Reach

Limited Frequency

Long Lead Time

Clutter

Competition

12-164
 Magazine Circulation

Primary
Circulation

Total Guaranteed
Audience Circulation

Controlled Circulation
Circulation Verification

Pass-Along
Readership
12-165
Cost Elements of Advertising Space

Circulation

Size of the ad

Position in the publication

Editions chosen

Production requirements

Insertion number/frequency

Use of color

12-166
 Types of Newspapers

Daily National
Special-audience
Weekly Supplements

12-167
 Types of Newspaper Advertising

• Local (mostly retail)

Display Ads
• National or general

Classified • Small items arranged by topic

Ads • Rates based on size, duration

Special Ads • Legal notices - public reports

and Inserts • Notices by people and/or
organizations
• Political ads
• Circulars, catalogs, brochures

12-168
Newspaper Advantages and Limitations

Advantages Disadvantages
Extensive penetration Low production quality

Flexibility Short life span

Geographic selectivity Lack of selectivity

Involvement, acceptance Clutter

Services offered Limited use of color

12-169
 Purchasing Newspaper Space

• General rates
• Advertisers are outside
the newspaper’s designated
market area
• Includes national advertisers
• Are up to 75% higher than local rates
• Retail or local rates
• Advertisers conduct business within the
designated market

12-170
 Newspaper Advertising Rates

Standard Sales by
Advertising Units Column Inch
One inch by 1 inch deep by
2 1/16 inches wide 1 column width

Fits in all newspapers

Column widths vary
that use this format size

Column width affects ad

Simplifies rate quotes
size, shape, cost

Simplifies production Complicated purchasing

process and placement process

12-171
 13

Support Media

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

 The Role of Support Media

To reach those people in the target

audience that primary media (TV,
print, etc.) may not have effectively
reached and to reinforce, or support,
their messages.

13-173
Out-of-Home Advertising Media

13-174
 In-Store Media

• Typical in-store media

• In-store ads
• Aisle displays
• Store leaflets
• Shopping cart
signage
• In-store TV

13-175
 Transit Advertising

Inside Cards Outside Posters

Station, Platform, Terminal Posters

13-176
 Pros of Outdoor Advertising

Wide local coverage Creation of awareness

High frequency Efficiency

Geographic flexibility Sales effectiveness

Creativity Production capability

Timeliness

13-177
 Cons of Outdoor Advertising

Waste coverage High cost

Limited message ability Measurement problems
Wearout Image problems

13-178
Transit Advertising

Advantages
Exposure

Frequency

Disadvantages
Reach

Mood of the Audience

13-179
Pros and Cons of Promotional Products

Advantages Disadvantages
Selectivity Poor image

Flexibility Saturation

Frequency Lead Time

Cost

Goodwill

High recall

Augmentation

13-180
 Pros and Cons of Yellow Pages

Advantages Disadvantages
Wide Availability Market Fragmentation

Action Oriented Timeliness

Low Cost Lack of Creativity

Frequency Lead Times

Non-Intrusiveness Clutter

Trust Size Requirements

13-181
 Advertising in Movie Theaters

Advantages Disadvantages
High Exposure Irritation

Emotional attachment Cost

Cost

Attention

Lack of Clutter

Proximity

Segmentation
13-182
 Nontraditional Support Media

Product
Placements
Product
Others
Integration

Branded
Entertainment

Ad-Supported
Advertainment
VOD
Content
Sponsorship

13-183
 Branded Entertainment
Advantages Disadvantages
High Exposure High Absolute Cost

High Frequency Time of Exposure

Media Support Limited Appeal

Source Association Lack of Control

Low Cost/High Recall Public Reactions

Bypass Regulations Competition

Viewer Acceptance Negative Placements

Targeting Clutter
13-184
 Other Media

Parking lot
ads

Videogame Gas station

ads pump ads

Place-based
Others
media

13-185
 14

Direct Marketing

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

 Direct Marketing Defined

…an interactive system of marketing which

uses one or more advertising media to effect
a measurable response and/or transaction
at any location

Print
Interactive TV

Telemarketing Direct Mail

The Internet Other Media

14-187
 Growth of Direct Marketing

Miscellaneous Consumer
Catalogs
factors Credit Cards

Changing Changing
Technological
Structure of Structure of
Advances
Markets Society

14-188
Direct Marketing Combines With…

Public
Advertising Relations

Direct
Marketing
Support Personal
Media Selling
Sales
Promotions

14-189
Objectives of Database Marketing

Improve Selection of
Market Segments

Stimulate Repeat
Purchases

Objectives
Cross-selling Other
Products

Customer Relationship
Management

14-190
 Direct Marketing Strategies

One-Step Two-Step

• The medium is used • May use one medium

directly to obtain an to obtain inquiry and
order qualify prospect
• Often uses toll-free • Follow-up with a
phone orders and second medium to
credit card payments complete the sale

14-191
Direct-Response versus Support Ads

Direct- Product/service offered

response
Sales response solicited
advertising
Toll-free numbers included
TV spots, infomercials,
home shopping shows

Reader’s Digest asks you to watch

Support mailbox for sweepstakes entry
advertising Supports other advertising

14-192
Telemarketing

14-193
Forms of Direct Selling

Repetitive
person-to-person

Nonrepetitive
person-to-person

Party Plans

14-194
Direct Marketing Advantages

Selective reach
Segmentation

Frequency potential
Testing
Timing

Personalization

Costs

Measures of effectiveness

14-195
Direct Marketing Disadvantages

Accuracy

Image Content
factors support

Do Not Rising
Contact lists costs

14-196
 15

The Internet and

Interactive Media

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

Internet Communications Objectives

Create
Awareness
Gain Generate
Consideration Interest

Create Buzz
Objectives Disseminate
Information

Create an
Stimulate Trial Image
Create a Strong
Brand

15-198
 E-Commerce

Direct selling of goods and services

through the Internet
May be primary or secondary objective
15-199
Internet Advertising Models

15-200
 Internet Search Advertising

• Search Engine Marketing

• The entire set of techniques and
strategies used to direct visitors from
search engines to marketing web sites
• Paid Placement
• Text-only ads targeted to keyword search
results on search engines
• Offered through programs such as Google
AdWords, Yahoo Search, or Microsoft Bing
• Sometimes referred to as paid placement, pay
-per-click, cost-per-click advertising

15-201
 Internet Search Advertising

• Behavioral Targeting
• Targeting online ads to consumers based on their
Web searching behavior
• Contextually Targeted Ads
• Text ads targeted to the content of web pages
using programs such as Google AdSense and
Yahoo Search Content
• Placement of ads determined by content of the
web page where they are shown
• Organic Search Optimization
• Using a range of techniques to improve how well
a site or page is listed in search engines for
specific topics
15-202
 Paid Search

• Online search-based advertising

• Advertiser pays only when a Web surfer clicks on
their link from a search engine page
• Search ads appear in a specified, sponsors-only
area near the search results for that phrase
• Advertisers bid on search keywords
• Prices for popular search terms
• Background check - $1.18 per click
• Car loan - $1.34 per click
• Refinance - $4.46 per click
• Mesothelioma - $50 per click

15-203
 Rich Media

A broad range of interactive digital media

that exhibit dynamic motion, taking advantage
of enhanced sensory features such as video,
audio, and animation

Online Commercials

Video on Demand

Webisodes

Other Forms

15-204
Web 2.0 – The Social Media Landscape

15-205
 Examples of Social Media

Social networking MySpace, Facebook, Twitter

Creativity work •Video (youtube)
sharing •Photos (Flickr)
•Music (Jamendo)
User-sponsored blogs Cnet.com
Company-sponsored •Blogs
sites •Cause/help sites (Dove
Campaign for Real Beauty)
Business networking LinkedIn
Collaborative Wikipedia
Commerce Ebay, Amazon
communities
15-206
 Personal Selling on the Internet

Cheaper than personal selling

May Replace
Personal Selling
Greater potential reach

May Enhance Primary source of information

Personal Selling
Efforts Valuable source of leads

Stimulates trial Improves 1-on-1 relationships

Cross-selling Prospects request sales calls

15-207
 Direct Mail (Email)

Electronic version
Highly targeted
of regular mail

Tries to reach those Relies on

w/specific needs email lists
15-208
Infomercials and Home-Shopping

Infomercials

Program content similar

to television, cable or
satellite

Web allows greater

audience interaction

Online retailers include

QVC, HSN, ShopNBC

15-209
Measures of Internet Effectiveness

Frequency to
Conversion Radios

Post-click Cost per

Clicks
conversions conversion
Unique Average Ad exposure
visitors frequency time
Ad interaction View-through
Visits
rate rate
Webpage Offline Cross-media
eye tracking sales lift models
15-210
 16

Sales Promotion

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

 Sales Promotion

A direct inducement that offers

an extra value or incentive for
the product to the sales force,
distributors, or ultimate consumer
with the primary objective of
creating an immediate sale

16-212
 Sales Promotion Vehicles
Consumer-Oriented Trade-Oriented
Samples Contests, incentives

Coupons Trade allowances

Premiums POP displays

Contests/sweepstakes Sales training programs

Refunds/rebates Trade shows

Bonus Packs Cooperative advertising

Price-off deals

Frequency programs

Event marketing
16-213
Reasons for Sales Promotion Increases

Growing power of retailers

Declining brand loyalty
Increased promotional sensitivity
Brand proliferation
Fragmented consumer markets
Short-term focus of marketers
Increased accountability
Competition
Clutter
16-214
 Sale Promotion Concerns

• Negative impact of sales promotions

• Fewer dollars to build brand equity
• Encourages consumers to purchase on
the basis of price
• Detracts from the value of the brand
16-215
Objectives of Consumer-Oriented Promotions

Increase
consumption of an
established brand

Obtain trial Defend (maintain)

and purchase current customers

Enhance IMC
Target a
efforts and build
specific segment
brand equity

16-216
 Sampling

Sampling Works Best When

The product
can be broken
The products into a small The purchase
are of piece or size cycle is
relatively low that reflects relatively
unit value the full short
features and
benefits

16-217
 Pros and Cons of Coupons

Advantages Disadvantages
Appeals to price Hard to tell how many
sensitive consumers consumers will use
them and when
Can offer discounts
without retailer Often used by loyal
cooperation consumers who would
purchase anyway
Effective way to induce
trial of products Low redemption rates
and high costs
Defends market share
and encourages Misredemption
repurchase and fraud
16-218
 Types of Coupons

In/On-Pack In-Store

Bounce-back Tear-off pads

Cross-ruff Handouts

Instant Dispensers

Register printout

16-219
 Premiums

An offer of an item, merchandise, or

service, free or at a low cost, that is
an extra incentive for customers

Types of Premiums

Self-liquidating:
Free:
consumer required to
Only requires purchase
pay some or all of the
of the product
cost of the premium

16-220
More Consumer-Oriented Promotions

Price-off Deals

Contests and
sweepstakes

Refunds and
rebates

Bonus packs

Loyalty programs

Event marketing

16-221
 Trade Oriented Promotions

Obtain distribution for new

products
Objectives
Maintain support for
established brands

Encourage display of
products

Build retail inventories

16-222
Types of Trade Oriented Promotions

Contests and incentives

Co-op Advertising
Types
Trade allowances

POP displays Buying

Sales training Promotional

Trade shows
Slotting

16-223
 Cooperative Advertising

• Trade-oriented cooperative advertising

• The cost of advertising is shared by more
than one party
• Forms
• Horizontal
• Ingredient-sponsored
• Vertical

16-224
The Sales Promotion Trap

16-225
 17

Public Relations, Publicity, and

Corporate Advertising

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

 Public Relations Defined

A management function

Which evaluates public attitudes

And identifies the policies and procedures

Of an organization with the public interest

And executes a program of action (& communication)

To earn public understanding and acceptance

17-227
Public Relations Management Stages

Determination and
evaluation of public
attitudes

Identification of policies
PR and procedures

Development and
execution of the
program

17-228
Integration of PR into the Promotional Mix

Separate Functions
Marketing Public
Department Relations

Coordinated and Equal

Marketing Public
Department Relations

Integrated
Marketing Public
Department Relations

17-229
Marketing Public Relations Functions

Build market excitement before media ads break

Defend products at risk, give consumers reason to buy

Create ad news where there is no product news

Introduce a product with little or no advertising

Provide a value-added customer service

Build brand-to-customer bonds

Influence the influentials

Improve ROI

17-230
 Benefits of MPR

A cost-effective way to Breaks though the

reach the market clutter

Highly targeted way to Circumvents resistance

conduct public relations to sales efforts

Endorsements by Improved media

independent third involvement
parties w/customers

Achievement of Creates influence

credibility among opinion leaders

Makes advertising
Improved ROI
messages more credible

17-231
 Disadvantages of MRP

Lack of control over media

Difficult to tie in slogans or other

advertising devices

Media time and space aren’t

guaranteed

No standards for effective

measurement

17-232
 The Process of Public Relations

Determining and Evaluating Public Attitudes

Establishing a PR Plan

Developing and Executing a PR Program

Measuring Program Effectiveness

17-233
 Implementing the PR Program

Press
Releases

Press
Interviews
Conferences

PR Tools

The
Exclusives
Internet
Community
Involvement

17-234
 Advantages of Public Relations

Credibility

Image Cost
Building Savings

PR
Provides
Avoidance
Selectivity
of Clutter
Lead
Generation

17-235
Potential Problems of Public Relations

Potential for incomplete

communication process

Potential Receiver not making

Problems connection to the source

Lack of coordination with

marketing dept.

Inconsistent, redundant
communications

17-236
 Publicity versus Public Relations

Publicity:
The generation of news about a person,
product, or service that appears in the media

A short-term strategy

A subset of public relations

Not always positive

Often originates outside the firm

17-237
 Pros and Cons of Publicity

Advantages Disadvantages

Substantial credibility Timing difficult or

impossible to control

News value Inaccuracy, omission,

or distortion
may result
Significant word-of-
mouth

Perception of media
endorsement

17-238
 Corporate Advertising

An extension of the PR
function

Does not promote a specific

product or service

Promotes the organization

Assuming a
Image Seeks
position on an
enhancement involvement
issue or cause

17-239
Types of Corporate Advertising

Image
General Image Ads
Advertising
Positioning Ads
Event
Sponsorships
Sponsorship
Recruitment
Advocacy
Advertising Financial Support

Cause-related
Advertising

17-240
 18

Measuring the Effectiveness

of the Promotional Program

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

 Reasons to Measure Effectiveness

Advantages Disadvantages

Avoid costly mistakes Cost of measurement

Evaluate alternative
Research problems
strategies

Increase efficiency in Disagreement on

general what to test

Determine if objectives Objections of creatives

are achieved

Time

18-242
Testing Methods

18-243
 Test Points

1.Concept Testing

2.Rough Testing
Occurs at
Various Stages 3.Finished art or
commercial pretesting

4.Market testing
(posttesting)

18-244
 Concept Testing

Objective Explores consumers’ responses to ad

concepts expressed in words, pictures, or
symbols

Method Alternatives are exposed to consumers

who match the target audience
Reactions & evaluations sought through
focus groups, direct questioning, surveys
Sample sizes depend on the number of
concepts and consensus of responses

Output Qualitative and/or quantitative data

evaluating and comparing alternative
concepts

18-245
 Focus Groups

• Appeal
• Results easily obtained, observable, immediate
• Multiple issues can be examined
• In-depth feedback is obtained
• Drawbacks
• Results not quantifiable
• Sample size too small
• Group influence may bias responses
• Some members may dominate discussion
• Participants become instant “experts”
• Members may not represent target market
• Results may be given too much weight

18-246
Rough Art, Copy, & Commercial Testing

Comprehension and Reaction Tests

Consumer Juries

Advantages Disadvantages
Consumer may become self
Control
-appointed expert
Number of ads that can be
Cost effectiveness evaluated is limited
Endorsements by A halo effect is possible
independent third parties
Preference for ad types
Achievement of credibility may overshadow objectivity

18-247
 Rough Testing Terms

Animatic Rough

Terms Photomatic Rough

Live-action Rough

18-248
 Pretesting Finished Print Ads

A laboratory method
Portfolio
Includes test and control ads
Tests
Portfolio test have problems

Readability Based on syllables per 100 words

Tests Other factors also considered

Dummy Sent to random sample homes

Advertising
Vehicles Product interest may bias results

18-249
Pretesting Finished Broadcast Ads

Theater Physiological
Tests Measures
On-Air
Tests

18-250
Physiological Measures

Pupil dilation

Galvanic skin
response

Eye tracking

Brain waves

18-251
 Market Testing of Ads

Inquiry Tests Recognition Tests

Testing

Tracking Studies Recall Tests

18-252
Starch Ad Recognition Scores

Noting Score

Brand-associated Score

Read Most Score

18-253
 Posttests of Broadcast Commercials

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serusaem stset

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Test marketing

452-81
 Essentials of Effective Testing

Establish communications objectives

Use a consumer response model

Use both pretests and posttests

Use multiple measures

Understand & implement proper research

18-255
 21

Evaluating the Social, Ethical,

and Economic Aspects of
Advertising and Promotion

Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

Advertising and Promotion Viewpoints

Provides information to consumers

Encourages higher standard of living

Proponent
arguments Promotes competition

Helps new firms enter a market

Creates jobs

More propaganda than information

Critic Creates consumer needs, faults
arguments
Promotes materialism, insecurity,
and greed

21-257
Ethics in Advertising and Promotion

Ethics: Moral principles and values that

govern the actions and decisions
of an individual or group

A marketing or Marketers must

Not all issues promotion decide the
can be action may be appropriate-
regulated legal but not ness of their
ethical actions

21-258
Untruthful or Deceptive Advertising

Consumers Industry Problems

Don’t trust advertising Deliberately untruthful

Rely on word of mouth False and misleading claims

Find ads intrusive Faulty sweepstakes

Find relevance too low Providing too little info

Trust websites slightly more Puffery and embellishment

21-259
Advertising as Offensive or in Bad Taste

Objectionable Sexual
Shock ads
products appeals

Condoms
Feminine
hygiene
products
Women’s
undergarments
Hemorrhoid
products

21-260
What is your opinion of this ad?

Is this woman portrayed

as a sex object?

Does this ad contain

cues that are sexually
suggestive?

Does this ad present an

image of sexual
submissiveness?

21-261
Attitudes Toward Sex in Advertising

21-262
 Advertising and Children

Children's TV
Watching Behavior

Children watch an 80% of ads targeted to

average of 22 hours children cover:
of TV per week •Toys
They see up to 30,155 •Cereal
commercials per year •Candy
•Fast food

21-263
Perspectives on Ads for Children

Advocates Argue That Children:

Lack the knowledge and Cannot differentiate

skills to evaluate between programs and
advertising claims commercials

Marketers Argue that Children:

Must acquire skills

Must learn
needed to function in
through socialization
the marketplace

21-264
 Other Areas of Concern

• Areas of potential concern

• Cable television programming
• Internet ads
• Ads encouraging children to call 900
numbers
• An increase in toy-based programs
• Marketing of violent films, music, games
• Advertising and promotions in schools by
companies like Coca-Cola

21-265
Social and Cultural Consequences

Does advertising
encourage materialism?

Does advertising make

people buy things
they don’t need?

Is advertising just
a reflection of society?

21-266
 Advertising and Stereotyping

Portrayal of women to
reflect their changing role
in society

Criticisms of Portrayal of
Gender
women as
stereotyping Advertising sex objects
With Regard to
Stereotyping

Ethnic
Sexual
stereotyping/
orientation
representation

21-267
Do Advertisers Control the Media?

Ads are the primary source of revenue for

newspapers, magazines, television and radio

Media’s dependence on ads for revenue makes

them vulnerable to control by advertisers

Advertisers may exert control over media by

biasing editorial content, limiting coverage of
certain issues, or influencing program content

21-268
Can Media Resist Advertisers?

Media must report the news

fairly and accurately to retain
public confidence

Advertisers need the media

more than the media need any
one advertiser

Media maintain separation

between news and business
departments “The Wall”

21-269
Economic Effects of Advertising

Makes consumers aware

of products and services

Provides consumers with

information to use to
make purchase decisions

Encourages consumption,
fosters economic growth

Leads to economies of
scale & lower prices

21-270