Promotion and Advertising Week 9 Notes PDF
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These notes cover promotion and advertising, including the steps in traditional and multichannel promotion planning, and communication models in a digital world. They delve into the importance of integrated marketing communication (IMC) in coordinating marketing efforts for a consistent message. The notes also explain different roles of marketing communications, such as informing, reminding, persuading, and building relationships with customers.
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Monday, November 25, 2024 5:39 PM Promotion and Advertising Marketing Communications...
Monday, November 25, 2024 5:39 PM Promotion and Advertising Marketing Communications Advertising Inform 13.3 Explain what adver sing is, Remind Persuade Planning and Advertising An Overview of Promotion Planning advertising campaign and how m Build relationships 13.2 Describe the steps in traditional and multichannel promotion planning. advertising as nonpersonal comm Communication Models in a Digital World That Is “Always advertising is marketing (but rem On” Steps to develop the promotion plan traditional advertising is still imp 13.1 Understand the communication process and the traditional promotion mix. customers at once promotion is the coordination of marketing communication efforts to influence attitudes or behavior. One thing is sure: As the media l video recorders (DVRs) that let v virtually everything an organization says and does is a form of marketing communication. The ads it creates, the packages it designs, and the uniforms its employees wear, contribute to the thoughts and feelings people have about the company and its products. : TV Everywhere, or authenticat your cable or satellite provider.7 Marketing communication in general performs one or more of four roles: percent of U.S. 1. It informs consumers about new goods and services. 2. It reminds consumers to continue using certain brands. As more and more consumers su 3. It persuades consumers to choose one brand over others. services in order to retain their a Promotion Planning 4. It builds relationships with customers. So, with almost everyone spendi obituaries yet. Mass media comm marketing experts believe a successful promotion strategy should coordinate diverse forms of marketing discussed in Chapter 8), such as communication to deliver a consistent message. digital communications. Integrated marketing communication (IMC) is the process that marketers use “to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time to targeted Step 1: Identify the Target Audience(s) Types of Advertising audiences An important part of overall promotion planning is to identify the target audience(s) you want to reach. IMC marketers recognize that we must communicate both Because they spend so much on ' with members of our target market and with a variety of stakeholders who influence that target market. After all, we learn about a new product not just from the The IMC approach argues that consumers come in contact with a company or a brand in many different ways company that produces it, but also from the news media, from our friends and family, and even from the producers of competitive products. Of course, the intended before, after, and during a purchase. customer is the most important target audience and the one that marketers focus on the most. Steps to develop the promotional plan To achieve their marketing communication goals, marketers must selectively use some or all of these to Step 2: Establish the Communication Objectives 1. Identify target audience deliver a consistent message to their customers in, use tradinational and implement social media a As we said, marketers develop communication programs for different target audiences. The whole point of communicating with customers and prospective 2. Establish communication objectives multichannel promotion strategy customers, the most important target audiences, is to let them know in a timely and affordable way that the organization has a product to meet their needs. It’s bad 3. Determine & allocate communication budget enough when a product comes along that people don’t want or need. An even bigger marketing sin is to have a product that they do want but that you fail to let a. Determine total promotion budget Multichannel promotion strategy: combine traditional marketing communication activities (advertising, them know about. Of course, seldom can we deliver a single message to a consumer that magically transforms him or her into a loyal customer. In most cases, it b. Decide on a push or pull strategy sales promotion, public relations, and direct marketing) with social media and other online buzz-building takes a series of messages that moves the consumer through several stages. c. Allocate budget to specific promotion mix activities. We view this process as an uphill climb, such as the one Figure 13.5 depicts. 4. Design the promotion mix The marketer “pushes” the consumer through a series of steps, or a hierarchy of effects, (series of steps prospective customers move through from initial awareness 5. Evaluate effectiveness Marketing communications goals, marketers must selectively use some of all these touch points to deliver of a product to brand loyalty. At almost any point in time, different members of the target market may have reached each of the stages in the hierarchy. Marketers consistent message to their customers develop different communication objectives to “push” members of the target market at each level to the next. Advertising: non personal communication from an identified sponsor using mass media That’s a lot different from most traditional marketing communication programs of the past that made little effort to coordinate the varying messages consumers received. Product Advertising Steps to develop an advertising campaign When you think about advertisin 1. Understand target audience The first, the traditional communication model, is a “one-to-many” view in which a single marketer develops it’s one of Nike’s “Just do it” com 2. Establish message and budget objectives and sends messages to many, perhaps even millions of, consumers at the same time. The one-to-many good or service. 3. Create the ads 4. Pretest what the ads will say approach involves traditional forms of marketing communication, such as advertising. Advertising includes 5. Choose the media types and media schedule traditional mass media (TV, radio, magazines, and newspapers); out-of-home materials, such as billboards; Institutional Advertisi 6. Evaluate the advertising and digital or Internet assets, such as banners, pop-ups, search engines, and email advertising. This model Rather than a focus on a specific also benefits from consumer sales promotions—such as coupons, samples, rebates, games, or contests—and institutional advertising include t Sales Promotion press releases and special events that public relations professionals organize. Corporate advertising pro Programs designed to build interest in or encourage purchase of a good or service during a specified Procter & Gamble’s Alway period people perceive that phras girl” with the goal of empo Advocacy advertising seek Home” ad is part of the mu media, and other activities phone leading to devastat ○ Seeks to influence pu Many firms responded by offline and online advertis easily be interpreted as ca assured consumers that th Create Awareness pandemic. Then another ty The first step in the hierarchy of effects is to make members of the target market aware that there’s a new brand of cologne on the market. through glass while wearin aired a message about cele Note how this objective is worded: Objectives are best when they are quantitative (80 percent), when they specify the target consumer or business group (18- to 24- gave was not about produ year-old men), and when they specify the time frame during which the plan is expected to reach the objective (in the first two months). To accomplish this, the Trade sales promotion fragrance’s marketers might place lots of simple advertisements that push the brand name in magazines, on TV, on the radio, and on social media and other Internet Public service advertiseme sites. public interest, run by the Inform the Market Communications Commiss expand our traditional communication model to include the one-to-one model, where marketers speak to using the public airways fo For those consumers who have heard the name “Hunk” but don’t really know anything about it, the challenge is to provide knowledge about the benefits the new consumers and business customers individually. The one-to-one forms of marketing communication include product has to offer—to position it relative to other colognes (see Chapter 7). The objective at this point might be to “Communicate the connection between Hunk personal selling, trade sales promotion activities used to support personal selling, and a variety of database and muscle building so that 60 percent of the target market develops some interest in the product in the first six months of the communication program.” To marketing activities that include direct marketing. accomplish this, promotion would focus on traditional and online advertising and other communications that emphasize the muscle-building connection. Retail and Local Adver the importance of the updated “many-to-many” model of marketing communication increases exponentially. Both major retailers and small, lo This newer perspective recognizes the huge impact of social media and its use in word-of-mouth Create Desire hours, location, and products tha communication, where consumers look to each other for information and recommendations. The next step in the hierarchy is desire. The task of marketing communications is to create favorable feelings toward the product and to convince at least some informs consumers about store h members of this group that they would rather splash on some Hunk than other colognes. The specific objective might be to “Create positive attitudes toward Hunk online or text messages on your marketers add new tools to their communications toolbox, including buzz-building activities that use viral cologne among 40 percent of the target market and brand preference among 30 percent of the target market in the first year of the campaign.” Communication at and evangelical marketing techniques as well as new social media platforms, such as brand communities, this stage might include splashy advertising spreads in magazines, perhaps with an endorsement by a well-known celebrity. product review sites, and social networking sites where consumers talk to lots of other consumers. Who Creates Adver Encourage Purchase and Trial An advertising campaign is a coo The Communication Process As the expression goes, “How do ya know ’til ya try it?” The company needs to get some of the men who have become interested in the cologne to try it. The specific various media over a period of ti Of course, promotion strategies can succeed only if we are able to get customers to understand what we’re objective now might be to “Encourage trial of Hunk among 10 percent of 18- to 24-year-old men within the first year.” A promotion plan might encourage trial by creatively distinct The new Windex product designed for outdoor window cleaning is innovative. I would consider trying to say. The communication process the process whereby meaning is transferred from a source to a mailing samples of Hunk to members of the target market, inserting “scratch-and-sniff” samples in bodybuilding magazines, placing elaborate displays in stores that targeting the men who do majority of outdoor activities for advertising as they would most likely dispense money-saving coupons, or even sponsoring a contest in which the winner gets to have WWE wrestler Braun Strowman as his personal trainer for a day. Each includes multiple ads (there receiver. In this perspective, a source transmits a message through some medium to a receiver who hears, use. Men would take interest in the product as they would have prior knowledge of other similar Although some firms create thei pays attention to, and understands the message (we hope). Marketers need to understand the function and products. Although, the target of the product is to market to those who utilize the Windex campaign. Agencies that support importance of each of the elements of the process. products and current Windex users are female heads of households, there should be some sort Build Loyalty of prioritization to target women because they would be the ones to purchase the product for the Loyalty, the final step in the hierarchy of effects, means customers decide to stay with Hunk after they’ve gone through the first bottle. The objective might be to men in the household to try. This can also help men try the recommended product and fall in “Develop and maintain regular usage of Hunk cologne among 5 percent of men from 18 to 24 years old within the first two years of the campaign.” Promotion A full-service agency supplies mo love with its features, encouraging them to purchase it on their own and can consider other Windex products. Targeting both men and women in advertising can help the product gain efforts must maintain ongoing communication with current users to reinforce the bond they feel with the product. research, creation of ad copy and popularity apart from its innovation. As we are targeting diverse audiences, we would balance our advertising to adhere to each audience and appeal our product to them. The objective of the Windex product is to market and emphasize our product. Step 3: Determine and Allocate the Marketing Communication Budget A limited-service agency provide boutiques, and media buying age interactive agency, or digital age or radio advertising, while an int reinforce how much better our product is compared to others. online marketing, email marketin The growing number of w Describe your favorite advertisement (include a video or image if applicable) and indicate consumers a personalized why it is your favorite ad. Consider the brand, primary message, goal of that message, vehicle/medium used to deliver the ad, type of advertisement, effectiveness, and how it could be improved. An in-house agency marketing m The communication process explains how organizations or individuals create and transmit messages from marketing teamis staffed with co From (we hope). Programmatic ad buying is the u monitor the client’s ad spending The Source Encodes speed, control, and cost savings My favorite advertisement was the Scratcher's "Gift of Giving" commercial. In the First, there is a person or organization—the source—(organization or individual that sends a message) that e top companies that have gone commercial, an elderly man is shown leaving work and staring at all the Christmas has an idea it wants to communicate to a receiver, such as potential customers. To do this, the source must firms to have one-to-one conver decorations before passing by a daughter and father setting up their Christmas translate the idea into a physically perceivable form (like a TV commercial) that conveys the desired tree. When he arrived home, there was a surprise waiting for him at the door. It meaning. This encoding process means the source may translate the idea into different forms to convey the An advertising campaign has ma was an envelope with a red bow and inside was the Millionaire Club scratcher. desired meaning. We may use words, music, a celebrity (Jennifer Aniston for Aveeno skin care products or ○ Account managemen And at the other door his neighbor patiently waiting to see the reaction of the Justin Bieber for Calvin Klein), an unknown actor, an actual customer, or even that animated gecko lizard to and is the primary lia elderly man. The neighbor smiled appearing content with her action of giving speak to consumers. agency execute the d during the holiday season. This is my favorite ad because it is sweet and advertising. It is the sentimental, especially during the holiday season. I like the storytelling aspect of The Message and to translate wha the ad although it is only 30 seconds long, it feels like a short film directed to The message (communication in physical form that goes from a sender to a receiver) is the actual content of ○ Creative services: Cre make us reflect and share the season with those close to us. California State Lottery and their primary message is to buy and share a Scratcher. The goal of the that physically perceivable form of communication that goes from the source to a receiver. The message Budget Decision 1: Determine the Total Marketing Communication Budget produce the ads. The may be in the form of a traditional broadcast or print ad, a public relations press release, a coupon offer, a marketing objectives message is to encourage viewers to reflect on the holiday season and take the To determine the total amount to spend on marketing communication, most firms rely on one of two types of budgeting techniques: top down and bottom up. With different sales promotion program, a salesperson’s pitch, a direct marketing infomercial, a Facebook post, a ○ Research and marke time to gift to others, especially those who are often overlooked during the top-down budgeting techniques, allocation of the promotion budget based on management's determination of the total amount to be devoted to marketing video on YouTube, or a customer’s comment on a blog. It includes (hopefully) the information necessary to help the account exe holidays, and to make difference in their daily lives. The commercials visuals communication) managers establish the overall amount that the organization will allocate to promotion activities. persuade, inform, remind, or build a relationship. The marketer must select the ad elements carefully so that with details on the ta helps emphasize the brand's message through the medium of Television to help the message connects with end consumers or business customers in its target market. ○ Media planning: The deliver the advertisement. The use of classical music in the background adds The most common top-down technique is the percentage-of-sales method, methods of promotion budgeting that is based on a certain percentage of either last efficient means to de emotion to the scene to set the tone of the advertisement. The effectiveness of years sales or estimates of the present year sales) the advertisement does compel viewers to be aware of others and to be kind The Medium in which the marketing communication budget is based on last year’s sales or on estimates for the present year’s sales. The advantage of this method is that it ties Today, more and more agencies during the holidays. Scratchers is pushing the product to the consumers to No matter how the source encodes the message, it must then transmit that message via a medium, a spending on promotion to sales and profits. Unfortunately, this method can imply that sales cause promotion spending rather than viewing sales as the outcome of services, creative services, media evaluate themselves and enhance the impact of the message to give the gift of a communication vehicle that reaches members of a target audience. For marketers, this vehicle can be TV, marketing communication efforts. a plan that best meets the comm golden greeting to demonstrate that even a small gift like a scratcher can make radio, a magazine, social media sites such as Facebook or Twitter, a company website, an Internet blog, a someone happy and feel special when they did not expect it. The advertisement billboard, or even a coffee mug that displays a product logo. Marketers face two major challenges when they User-Generated Ad can improve through taking a displaying its slogan longer at the end. select a medium: first, that the target market will be exposed to the medium, and second, that the The competitive-parity method (promotion budgeting method in which an organization matches whatever competitors are spending) is a fancy way of saying “keep One of the most recent and impo characteristics and image of the product are not in conflict with the medium. up with the Joneses.” In other words, match whatever competitors spend. Another approach is to begin at the beginning: Identify promotion objectives and allocate generated media, enough money to accomplish them. The Receiver Decodes UGC , aka consumer generated m That is what bottom-up budgeting techniques (allocation of the promotion budget based on identifying promotion goals and allocating enough money to images, videos, podcasts and we Zen mysteries aside, communication cannot occur unless a receiver is there to get the message. Hi Group 34, great presentation on security breaches. I was not aware of the AT&T or Telecom breaches, accomplish them) attempt. Receiver: any individual or organization that intercepts and interprets the message. it was definitely eye opening on the real life scenarios faced by companies. It is reassuring to know that Some marketers encourage cons there are legal standards in place for companies to maintain and protect users data. I found it This bottom-up logic is at the heart of the objective-task method : promotion spots cost only one-quarter to on Decoding: process whereby a receiver assigns meaning to a message; translates the message he or she sees impressive that your group mentioned that T-Mobile has encountered 8 data breaches. That is an to figure out how much advertising, sales promotion, buzz marketing, and so on, it will take to meet that goal. Although this is the most rational approach, it is hard spot. This can be especially impo or hears back into an idea that makes sense to him or her. alarming number. This makes me wonder how consistently have these companies improved or to implement because it obliges managers to specify their objectives and attach dollar amounts to them. This method requires careful analysis—and a bit of lucky consumers see the brand and th upgraded their hardware and software to prevent ongoing breaches. Or how can they improve their “guesstimating. Marketers need to monitor (and Marketers hope that the target consumer will decode the message the way they intended, but effective systems to reduce the frequency of data breaches to be more effective? communication occurs only when the source and the receiver have had similar experiences and thus share a Second, social media is proliferat Objective task method: promotion budgeting method in which an organization first defines the specific communication goals it hopes to achieve, such as increasing commercials, or online complain mutual frame of reference. Too often, sources and receivers aren’t on the same page, a mismatch that is by 20 percent the number of consumers who are aware of the brand and then tries calculate what kind of promotion efforts it will take to meet these goals especially likely to happen when the source and the receiver don’t share the same cultural background, experiences, values, or language. consumers also generate conten technique to come up with new Hi group 36, wonderful presentation! I liked how detailed and organized your groups presentation Budget Decision 2: Decide on a Push or a Pull Strategy delivery. It is distraught how easily people can be targeted through email and lead to immense Noise The second important decision in marketing communication budgeting is whether the company will use a push or a pull strategy. Push and pull strategies direct damage caused by the hackers unknowingly. It would be ideal if workplaces conducted training The communication process also acknowledges that noise—anything that interferes with effective sessions to educate their employees about system breaches to prevent them from falling victims to communication—can block messages. As the many arrows between noise and the other elements of the decisions about how to divide the market communications budget for different types of promotion activities. A push strategy means that the company wants to Ethical Issues in Adv move its products by convincing channel members to offer them and entice their customers to select these items; it pushes them through the channel. This Advertising, more than any othe phishing attacks. communication process in Figure 13.2 indicate, this interference can occur at any stage of communication. approach assumes that if consumers see the product on store shelves, they will be motivated to make a trial purchase. In this case, marketers spend the promotion more on the high visibility of adv budget on personal selling, trade advertising, and trade sales promotion activities that will “push” the product from producer through the channel of distribution to Feedback consumers. The objections to advertising are To complete the communication loop, the source gets feedback from receivers. Of course, the best feedback for marketing communication is for consumers to purchase the product. Other types of feedback occur with Advertising is manipulative. Adve a phone call or an email In contrast, a company that relies on a pull strategy (company tries to move its products through the channel by building desire for the products among consumers, for the ads. However, consumers thus convincing retailers to respond to this demand by stocking these items) is counting on creating consumer demand for its products with marketing the ad is selling. Furthermore, so Updated Web 2.0 Communication communication aimed at the consumers. This popularity will then convince retailers to respond by stocking these items. In this case, the bulk of the communication budget goes for traditional and online media advertising and consumer sales promotion to stimulate interest among end consumers who will “pull” the product onto that is not the same as manipula we are active participants in the game. We email or post comments on what we see, and many of us post Advertising is deceptive and untr Hi Group 40, great presentation, all the information presented was straightforward. As store shelves and then into their shopping carts. our own original content in the form of YouTube videos, blogs, and perhaps stupid cat photos. As a result, consumers believe the false info you mentioned AI applications in business, particularly in cybersecurity, was insightful. we now live in a 24/7 media environment that is very much a free-for-all in terms of who gets to send and in the best possible light while be However, my question is how can we trust AI's ability to protect data by detecting fraud and preventing data breaches, considering the vulnerability of AI itself to cyber attacks receive messages. In addition, marketers can create messages that reach specific individuals (like when they Budget Decision 3: Allocate the Budget to a Specific Promotion Mix Of course, the finding of decepti show you ads on your phone based on the websites you browsed earlier this week), or they can The final step in planning the communication budget is to allocate the total budget among the elements in the promotion mix. In today’s dynamic media vulnerable to claims against them instantaneously beam the same content to literally millions of people with just a click. This fundamental environment, there are few clear guidelines on how to divide up the promotion pie—though we are witnessing a steady shift away from traditional advertising which additional hidden fees hav change means that marketers have to revise their thinking in terms of how they can connect with and media and toward so-called “new media,” like Facebook and Google. In some cases, managers may simply have a preference for advertising versus sales promotion consumers are ready to pay, add respond to their customers. or other elements of the promotion mix. Also, consumers vary widely in the likelihood that they will respond to various communication elements. College students for example are especially likely to spend most of their time on the Internet (but you knew that). I als How does Web 2.0 change the way we look at the communications process? To simplify matters, let’s say that it pushes us to take a new look at the three different models of marketing communication that we Although traditional media advertising (TV, newspaper, radio, magazine, and outdoor) used to get the lion’s share of the promotion budget, today spending on to protect consumers from being Lastly, I learned about how markets can connect with consumers through digital marketing which I discussed earlier. Internet advertising is almost a third of total advertising spending. Overall U.S. major media advertising spending in 2019, for example, was around $248.9 billion, an company and the ad agency. In a found interesting because companies are now focusing on digital marketing and do their best to be at First, as we saw earlier in Figure 13.1, we distinguish among communications in terms of how specific the increase over 2018 spending of 4.0 percent. Of that, Internet advertising spending increased 18 percent to $108.6 billion, more than total TV spending of $65.7 the top of the search engine top of lists of typical search phrases, as the six digital marketing channels audience is: billion. Spending on other marketing services (sales promotion, telemarketing, direct mail, event sponsorship, directories, and public relations) was $249.1 billion, Other ads, although not illegal, m being creative through these sites is important to create an experience for the consumer and balance 1. The one-to-many model: This model is the traditional form of mass communication whereby a about a third of total advertising spending are true or untrue. relevancy. broadcaster sends a message to a very large audience (like a commercial you see while you’re watching Outer Banks). Many consumers today are conc provides little ecological benefit. 2. The one-to-one model: This format describes messages that are up close and personal. This is the oldest way to communicate, but it’s still important in many marketing contexts today. Although you Step 4: Design the Promotion Mix certain products as “bamboo” fa Designing the promotion mix is the most complicated step in marketing communication planning. It includes determining the specific communication tools to use, when the rayon materials were p may doubt this when you watch a typical couple out on a date who spend the whole evening texting what message to communicate, and the communication channel(s) that will be used to send the message. “green” as they were led to belie their friends instead of actually holding a conversation with each other, anytime you work with a salesperson, a wedding consultant, or maybe a financial planner, you’re still doing things old school. 3. The many-to-many model: This format describes the social media revolution that allows almost Step 5: Evaluate the Effectiveness of the Communication Program everyone to engage in a constant conversation with almost everyone else! As marketers are faced with the need for greater accountability and they often have to document the ROMI (discussed in Chapter 3) of their marketing Advertising is offensive and in ba communications and other marketing activities, evaluating the effectiveness of the communication program is more important than ever. Whereas advertisers seek to go t Upon reflecting on my key takeaways from the Introduction to Marketing course, I have found it to be very consumers they want to bu incredibly engaging. The top three learnings that stood out to me were the different types of market Advertising causes people to buy Second, we distinguish between communications that originate with the marketers versus those that don’t. marketers use a variety of different methods to monitor and evaluate the company’s communication efforts. The catch is that it’s easier to determine the research, the consumer decision-making process, and exploring how marketers engage with consumers basic functional benefits of prod Outbound marketing describes many of the activities we identified in the original one-to-many model: It effectiveness of some forms of communication than others. As a rule, various types of sales promotion are the easiest to evaluate because they occur over a fixed, through digital marketing channels. guilty as charged. refers to messages that come from the organization and are intended for those who have agreed to receive usually short period, making it easier to link to sales volume. Traditional advertising, on the other hand, has lagged or delayed effects so that an ad people see this them (unless they’re spam!). As we’ll see later, it’s not always clear where these messages actually originate month might influence a car purchase next month or even a year from now. Typically, researchers measure brand awareness, recall of product benefits In exploring the different types of market research, I discovered that it extends far beyond simply surveying consumers or conducting focus groups for insights. Marketers must carefully determine the and how accurate they are (think “fake news”), but as a form of promotion, their goal is to inform, remind, communicated through advertising, and even the image of the brand before and after an advertising campaign. They use similar measures to assess the Develop the Advert persuade, and/or build relationships with receivers. effectiveness of salespeople and of public relations activities. appropriate research method based on their specific objectives or else the research outcome would not The advertising campaign is abou be beneficial. communication goals. That mean In contrast, inbound marketing refers to linkages that come to the organization from others outside. Maybe you’re browsing a website, and you click a link to receive an ethical bribe,(opt-in incentive to join an email Multichannel Promotion Strategies market, and where and when it s Also, the consumer decision process revealed the influences that impact consumers. Understanding the As we said previously in this chapter, marketers today recognize that the traditional one-to-many communication model in which they spent millions of dollars mailing list) like a free e-book or a product sample; by doing so, you’re sending the company feedback on five-step decision making process especially the importance of post-purchase where marketers must