Marketing mix case study (ppt and speaker's note)

Advertising

Paid communications delivered to the audience through non-personal mass media from an identified sponsor.

Advertising objectives – advertising is good for:

INFORMING

· Create or increase brand awareness

· Develop consumers’ knowledge about products

PERSUADING

· Encourage trial purchase

· Attract new target markets

· Encourage preference

REMINDING

· Keep the brand top of mind

Types of Advertising

Institutional – to improve the image of the company or industry.

· Advocacy advertising is cause based. May be a social, political, or environmental issue. May be charity-based.

Product advertising – promotes a particular product or service.

· Pioneering advertising – to stimulate primary demand for the product and associate the product category with your brand. Introductory stage of PLC. Informative-type ads.

· Competitive Advertising – to influence demand for a specific brand (yours). Growth stage of PLC. Affective (emotional) ads.

· Comparative Advertising – to highlight superiority of one or more brand attributes over the competition. Maturity stage of PLC. May be more action oriented. Use care – watch legality and negativity.

Advertising Strategy

Advertising campaign – a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals

Advertising Objectives should address these considerations:

· WHO is the target market or target audience?

· WHAT do we want them to think, feel, or do?

· WHAT is the nature of the message?

· WHERE are the market priorities?

· WHEN is the best time to advertise?

· HOW many, often, long should the messages be sent – how long is the campaign?

DAGMAR

AIDA

Product Benefits and Advertising Appeals

· USP – the unique selling proposition (the why).

Appeals are usually grouped as rational, emotional, or moral.

Execution – how will the message be conveyed?

Evaluating the campaign

· Did you achieve the objective?

· How do you know? – Some objectives are difficult to measure.

Media Alternatives:

Advantages and Disadvantages of Different Media

Considerations include control, flexibility, credibility, and cost

Television

Advantages

· Impact—sight, sound, motion; demonstration; emotion

· Reach—high reach in short space of time

· Some targeting—sports and specialty cable channels reach niche targets

· Coverage flexibility—local, regional, and national options

Disadvantages

· High cost—desired frequency (message repetition) increases absolute cost

· Clutter—too many spots in a cluster negates potential impact

· Audience fragmentation—abundance of channels lowers audience size (reach potential)

· Technology—electronic equipment records programs and edits out commercials

Radio

Advantages

· Target selectivity—station format attracts a defined audience (profile matching possible)

· Frequency—reach plans rotate messages through entire audience weekly

· Cost—very favourable compared to other media

· Flexibility—stations and markets selected according to priority (key market strategy)

Disadvantages

· Audience fragmentation—multiple stations competing for the same demographic reduces station’s audience potential

· Message retention—sound-only medium; clever creative required

Newspaper

Advantages

· Targeting capability—reaches a diverse adult audience in key geographic markets

· Reach—ideal for reaching consumers in local markets frequently

· Media environment—readers engage with paper based on editorial content; they are receptive to messages

· Merchandising—national advertisers have cooperative advertising opportunities with local market retailers

Disadvantages

· Life span—daily; exposure to message reduced if paper not read on day of publication

· Audience diversity—not suitable if target market profile is precisely defined (an exception may be The Globe and Mail)

· Clutter—lots of space devoted to advertising (many ads on one page)

· Reproduction quality—primarily a black and white medium; adding colour does improve brand awareness and recognition scores

Magazines

Advantages

· Online magazines – customer can click on advertisement and start shopping

· Targeting capability—good reach based on readers’ demographic (profile-matching strategy) and psychographic (rifle strategy) characteristics

· Coverage flexibility—city, regional, and national magazines available

· Life span—magazines tend not to be discarded right away; opportunity for multiple exposures to message

· Quality—excellent colour reproduction

· Environment—message benefits from the prestige of association with the magazine’s quality and image

· Pass-along readership—actual readership goes beyond the subscriber (added reach)

Disadvantages

· Clutter—abundance of ads appearing in the initial section (advertising domination in some magazines)

· Cost—colour is an added cost in production of ad

· Frequency—distribution is usually monthly or bi-monthly

Out of Home Advertising – Outdoor and Transit

Outdoor Advantages

· Reach and frequency—reach a large general audience daily

· Coverage flexibility—markets selected geographically (key market plan)

· Compatibility—a good complementary medium to reinforce a message (name, logo, slogan)

· Awareness—often included in teaser and blitz campaigns for new products due to reach potential

Outdoor Disadvantages

· Creative limitations—message must be concise; good visuals mandatory

· Targeting—not suitable for reaching precisely defined targets

· Cost—absolute costs high compared to other media (minimum four-week cycles) Image—often referred to as “urban clutter”

Transit Advantages

· Reach and frequency—riders receive same message daily, weekly, and monthly

· Continuous exposure—trapped riders view same ad many times

· Coverage flexibility—markets selected geographically, based on priority (key market strategy)

Transit Disadvantages

· Targeting—a diverse cross-section of population, therefore some circulation wasted

· Environment—cluttered and crowded environment in peak periods makes message less visible

Other forms of out-of-home advertising include:

· Washroom Advertising

· Elevator Advertising

· Arena and Stadium

· Cinema Advertising

Media Scheduling

1. Reach – the number of people, households, or businesses in a target audience exposed to a media vehicle or message schedule at least once during a given time period (usually four weeks).

1. Frequency – the average number of times an individual, household, or business within a particular target market is exposed to a particular advertisement within a specified time period (again, usually four weeks).

1. Opportunity to See (OTS) – the cumulative exposures achieved in a given time period.

1. Gross Rating Points (GRPs) – a measure of the impact or intensity of a media plan. GRPs are calculated by multiplying a vehicle’s rating by the frequency or number of insertions of an advertisement.

1. Cost – measure of overall expenditures associated with an advertising program or campaign. A second useful number that can be calculated to measure the costs of a program is the cost per thousand (CPM) of the program.

The cost per thousand is calculated by using the following formula:

CPM = (cost of media buy / total audience) x 1,000

To calculate the Cost Per Rating Point (CPRP), the formula is:

CPRP = cost of media buy / vehicle’s rating

To calculate the weighted (or demographic) CPM, the formula is:

Weighted CPM = advertisement cost x 1,000 / actual audience reached

1. Scheduling Pattern – the exposure pattern or schedule used in the ad campaign. The types of patterns used are:

5. Continuous – a continuous campaign buys media time in a steady stream throughout the period of the campaign.

5. Pulsing – a firm advertises some throughout the whole period, but will increase advertising in small, short bursts around special events, such as holidays

5. Flighting (discontinuous) – a flighting schedule places advertisements at special intervals during the period, with no advertising between.

5. Seasonal – advertising only at the times when the product is likely to be purchased.

Public Relations

· Communications primarily directed toward gaining public understanding and acceptance.

· Uses publicity which does not necessarily involve payment to have it communicated in the media.

· PR that appears in news media and social media offers legitimacy.

· Can assist in new product launches or reporting eventful occurrences.