Session 31 MG 220 Marketing Management MBA 10

1. Part 7:Communicating Value > Developing and Managing an Advertising Program > Deciding on Media and Measuring Effectiveness Class Presentation | Session 31 | 29 Nov 2010

2. Developing and Managing an Advertising Program How Advertising is handled? In small organizations: managed by sales & marketing deptt In large organizations: specialized departments Role of Agencies Creating campaigns Media buying 5Ms Mission Money Message Media Measurement MG 220 Marketing Management 2

3. Developing and Managing an Advertising Program Setting the Objectives [Mission] Advertising Goal (or objective) is a specific communication task and achievement level to be accomplished with a specific audience in a specific period of time Targeting different stages of hierarchy-of-effects e.g. AIDA Examples of Objectives: Informative Advertising Persuasive Advertising Reminder Advertising Reinforcement Advertising MG 220 Marketing Management 3

4. Developing and Managing an Advertising Program Deciding on the Advertising Budget [Money] Advertising expense is current expense but should be considered as an investment in building brand equity Key factors to be considered Stage in PLC Market Share and Consumer base Competitive and Clutter Advertising frequency Product substitutability MG 220 Marketing Management 4

5. Developing and Managing an Advertising Program Developing the Advertising Campaign [Message] Creating a campaign requires understanding of Message Strategy (what ad wants to convey about the brand) and Creative Strategy (how the ad expresses the brand claims) Designing and creating a campaign is both art and science Message Generation and Evaluation New ideas and insights Creativity to convey positioning Creative Development and Execution TV Ads: Considered most effective | Reaches broad market Print Ads: Different from broadcast media. Two main forms: magazine & newspapers Radio Ads: Pervasive yet passive media Social Responsibility Review Social and legal norms. Strictly follow law of land for advertising No false claims MG 220 Marketing Management 5

6. Deciding on Media and Measuring Effectiveness [Media | Measure] Deciding on Reach, Frequency, and Impact Media Selection is finding the most cost-effective media to deliver the desired number and type of exposures to the target audience Effect of Exposures on audience depends on R, F & I Reach (R): No of diff. persons or households exposed to particular media schedule at least once during a specified time period Frequency (F): No. of times within the specified time period that an average person or household is exposed the message Impact (I): Qualitative value of an exposure through a given medium Key concepts derived from R, F & I relationships: Total No of Exposures (E): R x F. Also called GRP (Gross Rating Point) Weighted No of Exposures (WE): R x F x I MG 220 Marketing Management 6

7. Deciding on Media and Measuring Effectiveness [Media | Measure] Deciding on Reach, Frequency, and Impact Relationship of Trial and Awareness with R, F & I MG 220 Marketing Management 7

8. Deciding on Media and Measuring Effectiveness [Media | Measure] Choosing Among Major Media Types Key variables to be considered Target Audience Media Habits Product Characteristics Message Characteristics Cost MG 220 Marketing Management 8

9. Deciding on Media and Measuring Effectiveness [Media | Measure] Choosing Among Major Media Types MG 220 Marketing Management 9

10. Deciding on Media and Measuring Effectiveness [Media | Measure] Alternate Advertising Options Place Advertising Billboards Public Places Product Placement Point-Of-Purchase (POP) Not Included: Evaluating Alternative Media Selecting Specific Vehicles MG 220 Marketing Management 10

11. Deciding on Media and Measuring Effectiveness [Media | Measure] Deciding on Media Timing and Allocation Classification of Advertising Timing Patterns MG 220 Marketing Management 11

12. Deciding on Media and Measuring Effectiveness [Media | Measure] Evaluating Advertising Effectiveness Communications-Effect Research Different Pretesting methods to understandhow effectively ad is communicated desired message Consumer Feedback method Portfolio tests: Portfolio of ads shown and recall is measured Laboratory tests:Physiological reactions measured Post testing done to measure recall, brand awareness differences Sales-Effect Research Measuring how well it helped increase sales MG 220 Marketing Management 12

13. Part 7:Communicating Value > Sales Promotion: SKIM > Events & Experiences: SKIM > Public Relations: SKIM > Direct Marketing: SKIM > Interactive Marketing: SKIM > Managing the Sales Force: SKIM > Principles of Personal Selling: SKIM Quiz 9 (Part 7: Chap 17) Class Presentation | Session 30 | 1 Dec 2010