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Chapter 18 Managing Mass Communications.docx

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Ryerson University
MKT 702
Rob Wilson

MKT702 Marketing Management CHAPTER 18 Managing Mass Communications DEVELOPING AND MANAGING AN ADVERTISING PROGRAM  Advertising: cost-effective way to disseminate messages, whether to build a brand performance or to educate people  5Ms (mission, money, message, media, measurement) Setting the Objectives  Advertising objective: specific communications task and achievement level to be accomplished with a specific audience in a specific period of time  Classifications of advertising objectives: o Informative advertising – aims to create brand awareness and knowledge of new products or new features of existing products o Persuasive advertising – aims to create liking, performance, conviction, and purchase of a product or service o Reminder advertising – aims to stimulate repeat purchase of products and services o Reinforcement advertising – aims to convince current purchasers that they made the right choice Deciding on the Advertising Budget  Five factors to consider when setting advertising budget 1. Stage in the product life cycle – new products merit large advertising budgets to build brand awareness and to gain consumer trail; established brands merit lower advertising budgets, measured as a ratio to sales 2. Market share and consumer base – to build share by increasing size requires larger expenditures 3. Competition and clutter – brand must advertise more heavily in a market with large number of competitors 4. Advertising frequency – number of repetitions needed to put brand’s message across to consumers 5. Product substitutability – brands in less-differentiated or commodity-like product classes require heavy advertising to establish a unique image  When consumer response is S-shaped, some positive amount of advertising is necessary to generate any sales impact, but sales increases eventually flatten out Developing the Advertising Campaign  Develop message strategy – what the ad attempts to convey about the brand – and its creative strategy – how the ad expresses brand claim  Good ad should focus on one or two core selling propositions  Creative brief includes considerations such as key message, target audience, communications objectives (to do, to know, to believe), key brand benefits, supports for the brand promise, and media  Each advertising medium has advantages and disadvantages, including television, print, and radio advertising media DECIDING ON MEDIA AND MEASURING EFFECTIVENESS Deciding on Reach, Frequency, and Impact  Media selection: finding the most cost-effective media to deliver the desired number and type of exposures to the target audience o Advertiser seeks specified advertising objective and response from the target audience  Effect of exposure (E) to produce a level of audience awareness (A) depends on exposures’ reach, frequency, and impact o Reach (R) – number of different persons exposed to particular media schedule at least once during a specified time period o Frequency (F) – number of times within the specified time period that an average person or household is exposed to the message o Impact (I) – qualitative value of an exposure through a given medium  Relationship between reach, frequency, and impact o Total number of exposures (E) – gross rating point (GRP) reach times the average frequency, E = R x F o Weighted number of exposures (WE) – reach times average frequency times average impact, WE = R x F x I Alternative Advertising Options  Place advertising (out-of-home advertising): broad category including many creative and unexpected forms that grab consumers’ attention, such as billboards, public spaces, and product placement  Point of purchase (POP): location where a purchase is made, typically thought of in terms of a retail setting  Advantage is that they can reach very precise and captive audience in a cost-effective manner; must be simple and direct MKT702 Marketing Management Selecting Specific Media Vehicles  Relies on measurement services that estimate audience size, composition, and media cost  Need to apply several adjustments to cost-per-thousand measure 1. Adjust for audience quality 2. Adjust for exposure value for the audience-attention probability 3. Adjust for the medium’s editorial quality (prestige and believability) 4. Consider ad placement policies and extra services Deciding on Media Timing and Allocation  Macroscheduling decision relates to seasons and the business cycle  Microscheduling decision calls for allocating advertising expenditures within a short period to obtain maximum impact  Chosen pattern should meet communications objectives set in relationship to the nature of product, target customers, distribution channels, and other marketing factors o Timing pattern should consider three factors i. Buyer turnover – expresses rate at which new buyers enter the market; the higher this rate, the more continuous the advertising should be ii. Purchase frequency – number of times average buyer buys product during the period; the higher the frequency, the more continuous advertising should be iii. Forgetting rate – rate at which buyer forgets brand; the higher the forgetting rate, the more continuous advertising should be  When launching a new product o Continuity – exposures appear evenly throughout a given period o Concentration – spending all advertising dollars in a single period o Flighting – advertising during a period, followed by a period with no advertising, followed by a second period of advertising activity o Pulsing – continuous advertising at low-weight levels, reinforced periodically by waves of heavier activity  Areas of dominant influence (ADIs) refers to national advertising; designated marketing area (DMAs) refers to regional advertising Evaluating Advertising Effectiveness  Communication-effect research: copy testing which seeks to determine whether an ad is communicating effectively o In-home tests – video taken or downloaded into the homes of target consumers, who then view commercials o Trailer tests – redemption rates of coupons given in trailers indicate commercials’ influence on purchase behaviour o Theatre tests – theatre viewing of potential new television series along with some commercials and measure change in preference by measuring at the beginning and the end o On-air test – respondents recruited to watch program on regular TV channel during test commercial or are selected based on having viewed the program  Company’s share of advertising expenditure produces a share of voice that earns a share of consumers’ minds and hearts, and ultimately a share of market SALES PROMOTION  Sales promotion: key ingredient in marketing campaigns, consists of collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular produces or services by consumers or the trade o Includes consumer promotions, trade promotion, and business and sales force promotion Objectives  Incentive promotions to attract new tiers, reward loyal customers, and to increase repurchase rates of occasional users  Sales promotion attract brand switches, who are looking for low price, good value, or premiums o Produces high sales response in short run but little permanent gain in brand preference over the longer term Major Decisions  Establishing objectives of sales promotion derive from broader communication objectives, which derive form more basic marketing objectives for the product  Selecting consumer promotion tools o Sample – offer free amount of product or service delivered door-to-door, sent in mail, picked up in store, attached to another product, or featured in advertising offer o Coupon – certificates entitling bearer to stated saving on purchase of specific product MKT702 Marketing Management o Cash refund o
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