Transcript 06_EL_Bus_Comm_Ch_10

Chapter 10
Advertisements, Promotions,
and News Releases
Deny A. Kwary
www.kwary.net
Main Topics
Marketing Mix
 Promotion Mix
 Planning an advertising and
promotional campaign
 Communicating with an advertisement
 Planning a news release
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Marketing Mix (the four Ps)
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Product:
– Product variety, quality, design, features, brand
name, packaging, sizes, services, warranties.
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Price
– List price, Discounts, Allowances, Payment period,
Credit terms
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Place
– Channels, Locations, Transport
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Promotion
– Advertising, sales promotion, public relations,
personal selling, direct marketing.
Promotional mix
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‘Promotional mix’ – term given to the
combination of promotional approaches
that an organisation uses to communicate
with the world around it.
Promotion Mix
(Promotion Channels)
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Advertising
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Sales promotion
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Public relations
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Personal selling
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Direct marketing
Focus on Three Channels
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Advertising: Any paid form of nonpersonal
presentation and promotion of a product.
Sales promotion: Short term incentives to
encourage trial or purchase of a product.
Public relations: A variety of programs
designed to promote and/or protect a
company’s image or its individual products.
Advertising and
Sales promotion
Can serve a variety of communication objectives:
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creating or increasing awareness (e.g.
informing the target market of a new service);
informing or educating (e.g. explaining how to
make better use of a service);
stimulating various types of ‘purchase’ decision
(e.g. encouraging people to buy a product).
Planning an advertising and
promotional campaign
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Imagine that you are the product manager
responsible for launching Vegetale in your
organisation’s Northern European sales territory.
It is a new, vegetable-based, high-protein food
that is being positioned as an attractive
alternative to meat.
How would you develop an advertising
campaign, as the product moves from the
development stage to its initial launch in this
market?
Planning an advertising and
promotional campaign (continued)
1. Marketing research
e.g. (1) Who buys food for the household?
(2) What are the existing alternatives to
meat, and how are they perceived by both
consumers and non-consumers?
(3) What do people already know and
think of Vegetale and the company’s other
products?
Planning an advertising and
promotional campaign (continued)
2. Identifying target market(s)
e.g. In the Vegetale example, your research
suggests that the demographic profile is
likely to comprise females aged 20 to 35
who are professionals and skilled workers
(socio-economic groups).
Market Segmentation
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Geographic
•Region
•Density
Demographic
•Age
•Gender
•Occupation
•Education
Psychographic
•Social class
•Lifestyle
Behavioral
•Occasions
•Loyalty status
Mass Marketing
Versus
Target Marketing
Planning an advertising and
promotional campaign (continued)
3. Developing campaign objectives
– 25% unprompted recall of Vegetale in your target
market, by the end of a 3-month media campaign
4. Planning and budgeting
– the channels to be used (e.g. newspaper
and television adverts, in-store promotions);
– the timescale of the campaign;
Planning an advertising and
promotional campaign (continued)
5. Drafting material – key messages
e.g. your key messages might be that Vegetale
is a new, nutritious, low-fat product, derived
entirely from natural vegetable ingredients,
which can be prepared much like meat and
which has a similar texture to veal.
Challenges of direct
engagement
Product samples – ‘trial size’ shampoos, attached to
magazines or delivered to the door, and cut-down
versions of computer software packages, supplied as a
CD-Rom or downloaded via the Internet.
 e.g. In 1960s, a company was forced to discontinue
its new promotional campaign for razor blades
BECAUSE inquisitive children across the country began
opening product samples that had been dropped
through their letterboxes.
Challenges of direct
engagement (continued)
Miscalculations
 e.g. In the early 1990s, Hoover offered its UK
customers two ‘free’ flights to European or US
destinations if they spent more than £100 on its
products
 It was worth purchasing a Hoover product, simply to
secure the two free flights.
 The offer was massively over-subscribed, leading to
legal actions by disappointed customers, a public
relations disaster, multi-million pound losses and the
subsequent departure of several senior executives.
Some popular advertising
formats
Slice of Life
This traditional format has been commonly
used on television adverts for fast-moving
consumer goods and domestic appliances
such as washing machines.
Humorous
Visual and verbal humour which is used for
all kinds of products.
Aspirational Imagery is used, either to enhance a brand
identity, or to suggest that consumers can
obtain some element of fantasy lifestyle by
purchasing the product.
Table 10.1 Some popular advertising formats
Some popular advertising
formats (continued)
Endorsement
The receiver is given an assurance
regarding the message, because it is
delivered by someone that they know
or trust.
Demonstration It is effective for introducing novel
products or ones that are difficult to
understand.
Postmodern
Bizarre and self-parodying adverts
where the promotional message
appears obscure, if not unintelligible.
Table 10.1 Some popular advertising formats
An example of
a Postmodern Advert
Measured Advertising Dollars (2004) for Selected
Fast Food Brands
Source: “The Top 200 Megabrands”, Advertising Age. July 18, 2005. Accessed August 7, 2005.
Public relations
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The UK’s Institute of Public Relations (IPR)
has defined this communication role as ‘the
planned and sustained effort to establish and
maintain goodwill and mutual understanding
between an organisation and its publics’
(IPR 2003).
An organisation’s dialogue with its stakeholders
Figure 10.2 An organisation’s dialogue with its stakeholders
Successful PR
PR can only be successful if it addresses the
following key principles:
 Senior management commitment is essential
 PR activity must be linked to strategic aims
 Organisations must understand and engage
with its publics
 PR strategies require plans, budgets and
resources
 Feedback from PR activity should inform
strategic change
PR activities and
communication channels
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Corporate brochures
Sponsorship
Lobbying
Internal communication
News releases
Exhibitions and events
Planning a news release
A news release:
A statement, often about the launch of a new
product, service or event used by an
organisation to brief media journalists and
encourage them to write articles on the subject.
Unlike news articles, press releases are biased
towards the perspective of the organisation.
Typical format for a news release
The message content demonstrates a number
of ‘good practice’ features, including:
 the provision of relevant facts, addressing
the six fundamental news questions (i.e.
who? what? when? where? why? how?);
 placing the most important facts at the
beginning;
 presenting the information in a clear and
simple format;
 providing relevant contact details
Organisation Name
and Logo
Release Date/Time
Descriptive heading
Main news point
Subsidiary news
points
About the
organisation
Contact names
and numbers