2. Chapter Questions
• What steps are required in developing an advertising program?
• How should sales promotion decisions be made?
• What are the guidelines for effective brand-building events and experiences?
• How can companies exploit the potential of public relations and publicity?
5. Developing an
Advertising Program (Campaign)
• Advertising: Any paid form of non personal presentation and promotion of a
product by an identified sponsor
1.Setting the Advertising Objective: a specific communications task and
achievement level to be accomplished with a specific audience in a specific
period of time
• Information Advertising: Create brand awareness and knowledge of new features of
existing products
• Persuasive Advertising: Aims to create a liking, preference, conviction, and purchase
of a product or service
• Reminder: Aims to stimulate repeat purchase of a product or service
• Reinforcement: Convinces current customers they made the right choice
6. 2. Deciding on the Advertising Budget
• Stage of PLC: New products need higher budgets to increase awareness
• Market Share: Brands with high market share require less support
• Competition and clutter: Brands must advertise more heavily to be heard
among competitors and over clutter
• Frequency: The number of repetitions needed to put the brands message
across to consumers
• Product Substitution: Brands in less differentiated product classes (Beerm
Soft Drinks) require heavy advertising to establish a unique image
7. 3. Developing the
Advertising Campaign
• Starts with a Creative Brief
• Creative brief serves as a guide on how to develop creative
• Key messages
• Product positioning
• Competitive atmosphere
• Target audience
• Media recommendation
8. 4. Choosing Media
• Choosing Media: Finding the most cost effective media to deliver the desired
number and type of exposures to the target audience
• Reach: The number of different persons or households exposed to a
particular media schedule at least once during a specific time period
• Frequency: The number of times within a specified time period that an
average person or household is exposed to the message
• GRP (Gross Ratings Point) = Reach x Frequency
• If you reached 50 people 5 times during a campaign, the GRP’s would
be 250
9. 4. Choosing Media
• Media Schedule Patterns
• Continuity: Ads appear evenly throughout campaign
• Concentration: Spending all ad dollars in one season - example - holiday
• Flighting: Advertising during a period, taking time off, then advertising
again
• Pulsing: Advertising consistently at lower rates, reinforced by periods of
heavier activity
10. 4. Choosing a Media Type
Medium # Options
TV 4,494 local TV stations, regional/national/ international cable networks
Radio 26,980 broadcast, streaming or satellite stations
Magazines 24,744 consumer or business magazines
Newspapers 1,397 local newspapers
Internet 233,000,000 registered domain names
Mobile 3,000,000 mobile-ready websites
14. 4. Choosing a Media Type
75%
56%
38%
19%
0%
6am-9am 9am-5pm 5pm-8pm 8pm-11pm 11pm-2am
Radio TV Newspaper
Magazines Online News Social Media
Online Entertainment Online shopping Movies on TV Set
Online Games
19. Television Media Buying
1. National Broadcast TV: Spot shown everywhere, during a specific program
2. Spot TV: A local spot bank for regional brands to advertise during key
programs. Less expensive than a national buy
3. National Cable: Spots delivered nationwide on specific channels
4. Local Cable: Can target down to the zip code, high regional messages with a
lower cost
20. 4. Television Media Buying
Activities done on Tablets while watching TV % of Tablet Owners 13+
13+ 13-17 18-34 35-54 55+ Male Female
eMail 61% 52% 58% 65% 65% 58% 64%
Social Networking 47% 62% 50% 47% 33% 44% 50%
Info on TV show viewing 37% 37% 36% 38% 34% 39% 34%
Check Sport Scores 34% 34% 36% 34% 32% 44% 24%
Look for info on ad saw on TV 27% 29% 28% 27% 22% 25% 28%
Look for info on deals from ad
22% 22% 29% 21% 14% 21% 24%
saw on TV
21. Television Media Buying
Weekly Time Watching Video by Age
(Hours:Minutes)
P2+ K2-11 T12-17 A18-24 A25-34 A35-49 A50-64 A65+
Traditional TV (Live + TSV) 33:43 24:09 22:14 25:34 29:55 34:16 42:16 47:13
Time Shifted TV (TSV) only 2:34 1:57 1:31 1:40 3:18 3:19 3:06 1:53
Video on the Internet (PC/
Laptop)
0:30 0:08 0:23 0:51 0:54 0:40 0:25 0:12
Video on Mobile Phone 0:08 NA 0:14 0:14 0:15 0:07 0:02 <0:01
22. Radio Advertising
• Drive Time is the heaviest listener time
• AM Drive - 6 - 9 am
• PM Drive - 4 - 7 pm
• Share of total U.S. radio listening
for Pandora in September 2014 was
9.06%, an increase from 7.77% at
the same time last year
• Listener Hours: Total listener hours
grew 25% to 4.99 billion for the third
quarter of 2014, compared to 3.99
billion for the same period last year.
• Active Listeners: Active listeners
grew 5.2% to 76.5 million at the end
of the third quarter of 2014,
compared to 72.7 million from the
same period last year.
23. 5. Measuring Sales Impact of Advertising
• Share of Advertising Expenditure: Amount spent on advertising
• Share of Voice: Proportion of company advertising a product compared to all
advertising of that product
• Share of mind and heart: Space earned by advertising in a consumers
mindset - how often they think of you or consider you3
• Share of market: Or Market share, your % of sales compared to competitors
24. What is Sales Promotion?
• Sales promotion consists of a collection of incentive tools, mostly short term,
designed to stimulate quicker or greater purchase of particular products or
services by consumers or the trade.
28. Why Sponsor Events?
• To identify with a particular target market or life style
• To increase brand awareness
• To create or reinforce consumer perceptions of key brand image associations
• To enhance corporate image
• To create experiences and evoke feelings
• To express commitment to community
• To entertain key clients or reward employees
29. Public Relations
• Launching new products
• Public relations tools:
– News, speeches
• Repositioning a mature product
– Special events
– Mobile marketing
– Published materials
• Building interest in a product category
– Website
– Public service activities
• Influencing specific target groups
• Defending products that have encountered public problems
• Building the corporate image in a way that reflects favorable on products
