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CHAPTER 13
Promoting Products: Communication
and Promotion Policy and Advertising
CHAPTER OVERVIEW
A companys total marketing communications program, called its promotion mix, consists of a
specific blend of advertising, sales promotion, public relations and personal selling to achieve
advertising and marketing objectives. Within these categories are specific tools, such as sales
presentations, point-of-purchase displays, trade shows, brochures, press kits, contests and coupons.
The promotion mix must be coordinated with other elements of the marketing mix. This chapter
looks at two questions: What are the major steps in developing effective marketing communication?
How should the promotion budget and mix be determined?
The next topic is advertising. The chapter explains the major decisions necessary in advertising,
including setting objectives and budget; creating and evaluating the advertising message; selecting
advertising media based upon research frequency, and impact; and finally, choosing media types,
vehicles, and timing.
CHAPTER OUTLINE
I. Promotion Mix - A companys total marketing program consisting of advertising, sales promotion,
public relations and personal selling.
A. Advertising is any paid form of non personal presentation and promotion of ideas, goods
or services by an identified sponsor. This includes print, broadcast, outdoor, and other forms
of advertising.
B. Sales promotions are short-term incentives to encourage purchase or sales of a product or
service. This will include point-of-purchase displays, premiums, discounts, coupons,
specialty advertising, and demonstrations.
C. Public Relations is the process of building good relations with the companys various
publics by obtaining favorable publicity, developing a good corporate image and handling
or heading off unfavorable rumors, stories and events. Press conferences, press releases,
magazine interviews and restaurant reviews are examples of public relations.
D. Personal selling is the oral presentation with one or more prospective purchasers for the
purpose of making sales. This may be in front of auditoriums of people, or a round table of
executives, a one-on-one to a prospective customer, or a group presentation to the same
customer.
Cont.
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A. As we move into the twenty-first century, marketing managers face some new marketing
communications realities.
B. Two major factors are changing the face of todays marketing communi-cations.
1. First, as mass markets have fragmented, marketers are shifting away from mass
marketing. More and more, they are developing focused marketing programs
designed to build closer relationships with customers in more
narrowly defined
micromarkets.
2. Second, vast improvements in information technology are speeding the movement
toward segmented marketing.
C. Given this new communications environment, marketers must rethink the roles of various
media and promotion mix tools.
1. Market fragmentation has resulted in media fragmentationin an explosion of
more focused media that better match todays targeting strategies.
2. In all, companies are doing less broadcasting and more narrowcasting.
3. Marketers are losing confidence in television advertising and focusing their efforts
on more targeted, cost-effective, interactive, and engaging media.
D. The Need for Integrated Marketing Communications. Customers dont distinguish
between message sources the way marketers do.
1. In the consumers mind, advertising messages from different media and different
promotional approaches all become part of a single message about the
company.
2. Conflicting messages from these different sources can result in confused company
images and brand positions.
E. Companies fail to integrate their various communications channels. Mass-media
advertisements say one thing, while a price promotion sends a different signal and a product
label creates still another message. Company sales literature says something altogether
different and the companys Web site seems out of sync with everything else.
F. The problem is that these communications often come from different company sources.
- Recently, such functional separation has been a problem for companies and their
Internet communications.
G. All the communication tools must be carefully integrated into the broader marketing
communications mix. Today, the best bet is to wed the emotional pitch and impact of
traditional brand marketing with the interactivity and real service offered online.
H. Today, more companies are adopting the concept of integrated marketing communications
(IMC).
1. Under this concept, the company carefully integrates and coordinates its many
communications channels to deliver a clear, consistent, and compelling
message
about the organization and its brands.
2. IMC builds brand identity and strong customer relationships by tying together all
of the companys messages and images. Brand messages and positioning are
coordinated across all communication activities and media.
3. IMC calls for recognizing all contact points where the customer may encounter the
company, its products, and its brands. Each brand contact will deliver a
message,
whether good, bad, or indifferent. The company must strive to deliver
a consistent
and positive message with each contact.
Cont.
HADM 3760-10, Chap. 13 Test prep., Spring 16
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message
last.
a. Message content: there are three types of appeals: rational, emotional, and moral.
b. Message structure: there are three message structure issues: (1) The first is whether
to draw a conclusion or leave it to the audience (2) The second message structure
issue is whether to present a one- or two-sided argument. (3) The third
structure issue is whether to present the strongest arguments first or
c. Message format: (1) print considerations include using novelty and contrast, eyecatching pictures, effective headlines, distinctive formats, message size and position,
color, shape, and movement; (2) TV or personal encounter considerations include the
above as well as facial expressions, body language, gestures, hair and posture. (3)
Message source - Attractive sources achieve higher attention and recall. Celebrities
are likely to be effective when they personify a key product attribute.
4. Select the communication channels:
a. Personal communication channels require a two-way relationship. Face-to-face,
over the telephone and even by mail communications, these relationships
allow for
personal addressing and feedback.
1
* Personal influence carries great weight for products that are expensive or
risky.
2
* Companies can take several steps to put personal communication channels
to work by selling their products to well-known people or companies,
who
may in turn influence others to buy. Or they can create opinion
leaders and
manage word-of-mouth.
b. Non personal communication channels affect buyers directly and include media,
atmosphere, and events.
1
* Media Print media (newspapers, magazines, and direct mail), broadcast
media (radio and TV) and display media (billboards, signs, posters).
2
* Atmosphere - Designed environments that create or reinforce the buyers
learning toward purchasing a product, such as hotel and restaurant
lobbies.
3
* Events - Occurrences staged to communicate messages to target audiences.
For example, like press conferences and public tours staged to
communicate
messages to the target audience.
4
* Non personal communication affects buyers in a two-step flow. First, flow
from television, magazines, and other mass media to opinion leaders
and then
to the less active sections of the population.
5. Measure the communications results: Measure the communications results: The
communicator must evaluate the effect of the message on the target audience. Figure 13-4
shows an example of feedback measurement. The following are some examples the
communicator can use to measure the results, such as whether they remember the message,
how many times they saw it, what points they recall, how they felt about the message, and
their past and present attitudes toward the product and company, how many people bought a
product, talked to others about it, or visited the store. See Sheraton Hotels and Resorts,
Measure the Communications Results.
6. Select the message sources: Messages delivered by highly credible sources are persuasive.
Three factors make a source credible: expertise, trustworthiness, and likeability.
Cont.
HADM 3760-10, Chap. 13 Test prep., Spring 16
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Cont.
3
* Consistency: The advertising budget should be consistent. Managers should not
consider the advertising budget to be discretionary and cut it when the times
are
tough.
4
* Opportunity to stretch the budget: A trade-out can be a good way of getting
advertising without using cash. For instance, hospitality companies can trade
its
rooms, food, or travel with the media for free advertising. Additionally,
hospitality
companies can expand the budget through cooperative advertising.
For example,
cruise lines and credit card companies getting together to pay for the
ads.
C. Message Decision: advertising can succeed only if its message gains attention and
communicates well. Developing a creative strategy require three messages steps: generation,
evaluation and selection, and execution.
1
* Message generation must be effective within the target audience and effect the
response intended. Sometimes this will be to create tangibility for the service
product,
depict quality, define position, enhance differentiation, or any number of
specific
objectives. Managers have the responsibilities of preventing the
messages that fail to
motivate customers or that offend employees.
2
* Message evaluation and selection can help lend credence in an industry
(advertising) that is sometimes less than credible. A meaningful, distinctive
and
believable message can increase the acceptability of the message and firm.
3
* Message execution is critical to enhancing the impact of the advertisement. What is
said, how it is said, the style, tone, words, and format-- the message
execution-directly relate to the impact of the message on the consumer. There
are several
execution styles: slice of life, lifestyle, fantasy, mood or image,
musical, personality,
technical expertise, scientific evidence, testimonial evidence.
D. Media Decision- Four Major Steps
1. Deciding on Reach, Frequency, and Impact: Generally, the higher reach, higher
frequency, and more impact that is sought by the advertiser, the larger the
advertising
budget will have to be.
1
* Reach is a measure of the percentage of people in the total target market
who are exposed to the specific ad campaign during a given period of
time.
2
* Frequency is a measure of how many times the average person in the target
market is exposed to the message.
1
* Impact is the qualitative value of message exposure through a given
medium.
2. Choosing Among Major Media Types
1
* In order of advertising volume, the major media types are: newspapers,
television, direct mail, radio, magazine, and outdoor media.
2
* Factors to consider when choosing media types include media habits of
target customers, the nature of the product, and cost.
3. Selecting Specific Media Vehicles
1
* The media planner must now choose the best specific media vehicles within
each general media type. For example, if advertising is placed in magazines,
the media planner must look up circulation figures and the costs of
different
ad sizes, color options, ad positions, and frequencies for
HADM 3760-10, Chap. 13 Test prep., Spring 16
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various specific
editorial focus, and
2
3
media
quality.
4. Deciding on media timing: The advertiser must also decide how to schedule
advertising over the course of a year.
1
* Continuity means scheduling ads evenly within a given period.
2
* Pulsing means scheduling ads unevenly over a given period.
3
* Road Blocking: Advertisers can sometimes use a tactic known as road
blocking to help ensure that an intended audience receives the
advertising
message.
E. Campaign Evaluation
1
* Measuring the communication effect
(1) Pre testinga. Direct rating is where a consumer panel is exposed to alternative ads and is
then asked to rate them. Direct ratings show how well the ads attract
attention
and how they affect consumers.
b. Portfolio tests are when consumers are asked to recall - aided or unaided all ads and their contents after they have been exposed to a whole
portfolio.
c. Laboratory tests use equipment to measure consumers physiological
reactions to specific ads, such as heartbeat, blood pressure, pupil
dilation, and
perspiration.
(2) Post testinga. Recall tests ask people who have been exposed to magazines or television
programs to recall everything they can about the advertisers and
products they
saw. Recall scores indicate the ads power to be noticed and retained.
b. Recognition tests are used by researchers who ask people exposed to media
to identify the advertisements they have seen. Recognition scores can be used
to assess the ads impact in different market segments and to compare
the
companys ads with those of competitors.
Measuring the sales effect: attempts to separate the effect of advertising from other
elements of the promotion mix. Achieved by comparing past sales with past advertising
expenditures and through experiments.
Measuring the awareness effect: if the objective of advertising is to inform, then conducting
a pre and post-test of the target markets awareness of the product or brand is often used as a
method of measuring the effect of an advertising campaign.
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