Lectures Marketing management: Chapter 18 - ThS. Nguyễn Tiến Dũng

Lectures Marketing management - Chapter 18: Managing mass communications (Advertising, sales promotions, events and experiences, and public relations) provides students with the knowledge: Advertising, sales promotion, events and experiences, public relations. Invite you to refer to the disclosures.

CHAPTER 18 MANAGING MASS COMMUNICATIONS: ADVERTISING, SALES PROMOTIONS, EVENTS AND EXPERIENCES, AND PUBLIC RELATIONS Nguyen Tien Dung, MBA Email: dung.nguyentien3@hust.edu.vn Chapter Questions What steps are required in developing an advertising program? How should sales promotion decisions be made? What are the guidelines for effective brandbuilding events and experiences? How can companies exploit the potential of public relations and publicity? © Nguyễn Tiến Dũng Chapter Main Contents Advertising Sales promotion Events and Experiences Public relations © Nguyễn Tiến Dũng Advertising Program: 5M’s Model © Nguyễn Tiến Dũng 1.1 Setting the objectives ● Types of purpose: ● To inform: informative ads, to create brand awareness and knowledge ● To persuade: persuasive ads, to create brand preferences and stimulate making buying decisions ● To remind: reminder ads, to stimulate re-buy actions ● To reinforce: reinforcement ads ● Objectives: ● Awareness ● Knowledge ● Liking ● Preference ● Conviction: Willing to buy © Nguyễn Tiến Dũng Examples ● To increase among 30 million homemakers who own automatic washers the number who identify brand X as a low-sudsing detergent, and who are persuaded that it gets clothes cleaner, from 10 percent to 40 percent in one year © Nguyễn Tiến Dũng 1.2 Ad Budgets ● Factors to consider: ad expenditure/sales ● Advertising elasticity e Ad © Nguyễn Tiến Dũng % change in sales ( S / S )   % change in ad expenses ( A / A) Factors Influencing the Advertising Budget Competition and clutter Market share and consumer base Stage in the product life cycle © Nguyễn Tiến Dũng Advertising frequency Advertising Budget Product substitutability Ad Elasticity ● Ad expenditure: ● 50%: the current year’s sales ● 50%: the next year’s sales ● Other studies reinforce these conclusions In a 2004 IRI study of 23 brands, advertising often didn’t increase sales for mature brands or categories in decline ● A review of academic research found that advertising elasticities were estimated to be higher for new (.3) than for established products (.1) © Nguyễn Tiến Dũng 1.3 Ad Message ● Message generation and evaluation: what to say ● Unique selling proposition (USP) ● Create alternative ad themes then choose ● Creative development and execution: how to say ● TV ads ● Radio ads ● Print ads ● Legal and social issues: ● Messages must follow local regulations ● Messages have to fit with the local culture © Nguyễn Tiến Dũng 10 © Nguyễn Tiến Dũng 25 Sales Promotion (SP) ● Objectives ● Advertising versus Promotion ● Major Decisions © Nguyễn Tiến Dũng 26 Objectives ● SP provides incentives to buy ● To attract new triers ● To attract brand switchers ● To reward loyal customers and maintaining a long-term relationship with existing customers ● To increase the repurchase rates of occasional users © Nguyễn Tiến Dũng 27 Major Decisions ● Determining objectives ● Selecting SP tools: ● Consumer promotion tools ● Trade promotion tools ● Business and sales-force promotion tools ● Developing the program ● Pretesting, implementing, controlling, and evaluating the program © Nguyễn Tiến Dũng 28 © Nguyễn Tiến Dũng 29 © Nguyễn Tiến Dũng 30 Evaluating a SP program ● Sales comparison ● Customer survey ● Experiments © Nguyễn Tiến Dũng 31 Events and Experiences ● Events: ● Reasons to sponsor events ● Designing an event ● Choosing suitable events ● Designing sponsorship programs ● Measuring sponsorship activities ● Experiences © Nguyễn Tiến Dũng 32 Reasons to sponsor events To identify with a particular target market or life style To increase awareness of company or product name To create or reinforce consumer perceptions of key brand image associations To enhance corporate image dimensions To create experiences and evoke feelings To express commitment to the community or on social issues To entertain key clients or reward key employees To permit merchandising or promotional opportunities © Nguyễn Tiến Dũng 33 Choosing an ideal event The event’s audience closely matches the desired target market The event generates much favorable attention The event is unique but does not have many sponsors The event facilitates ancillary marketing activities The event reflects or enhances the brand or corporate image of the sponsor © Nguyễn Tiến Dũng 34 Measuring the effectiveness of an event ● The supply-side method: ● To estimate the amount of time or space devoted to media coverage of an event ● The "demand-side" method: ● Event spectators are identified and surveyed to measure sponsor recall of the event as well as resulting attitudes and intentions toward the sponsor © Nguyễn Tiến Dũng 35 Public Relations ● PR functions ● Marketing PR tasks ● Major decisions in marketing PR © Nguyễn Tiến Dũng 36 PR functions Press relations - Presenting news and information about the organization in the most positive light Product publicity - Sponsoring efforts to publicize specific products Corporate communications - Promoting understanding of the organization through internal and external communications Lobbying- Dealing with legislators and government officials to promote or defeat legislation and regulation Counseling - Advising management about public issues and company positions and image during good times and bad © Nguyễn Tiến Dũng 37 Marketing PR tasks ● Assisting in the launch of new products ● Assisting in repositioning a mature product ● Building interest in a product category ● Influencing specific target groups ● Defending products that have encountered public problems ● Building the corporate image in a way that reflects favorably on its products © Nguyễn Tiến Dũng 38 Major decisions in marketing PR ● Setting objectives ● Choosing messages and vehicles ● Implementing the plan and evaluating results © Nguyễn Tiến Dũng 39 ... pretest-posttest measurement © Nguyễn Tiến Dũng 23 © Nguyễn Tiến Dũng 24 © Nguyễn Tiến Dũng 25 Sales Promotion (SP) ● Objectives ● Advertising versus Promotion ● Major Decisions © Nguyễn Tiến Dũng. .. schedule © Nguyễn Tiến Dũng 20 Advertising Timing Patterns © Nguyễn Tiến Dũng 21 © Nguyễn Tiến Dũng 22 1.5 Measuring ad effectiveness ● Communication effectiveness (copy testing) ● Pretest-posttest... publicity? © Nguyễn Tiến Dũng Chapter Main Contents Advertising Sales promotion Events and Experiences Public relations © Nguyễn Tiến Dũng Advertising Program: 5M’s Model © Nguyễn Tiến Dũng 1.1 Setting