Marketing Management 3 assigment 750-900 words each assigment

chapter12.pdf

Home >Business & Finance homework help >Marketing homework help >Marketing Management 3 assigment 750-900 words each assigment

Integrated Marketing Communications and Media Choices

12. 1

Marketing Framework

What Media Decisions Are Made?

1. How much to spend

2. When to schedule the ads

3. Which media to use

How Much to Spend

1.Percentage of sales • Percentage is determined by prior years’

sales or industry norms

• Percentage is then adjusted depending upon this year’s goals

2.Competitive parity • Determine what competitors are spending

• Information is tracked by 3rd parties

• In various industries, there is proportionality between ad spending and their incomes

How Much to Spend

3.Strategic advertising goal • Set a strategic goal(s) (awareness, attitude

change, etc.) and then work backwards to determine how much should be spent to reach the goal

• Advertising is viewed as an investment which will return sales and profits

• Need to understand reach and frequency

How Much to Spend

• Reach • The share of your target that has seen your ad at least

once

• Frequency • The average number of times target saw the ad (within set

duration)

• GRP (Gross Rating Points): • GRP=Reach X Frequency • Ad reached 25% of target an average of 3 times - the ad

delivered 75 GRPs

How Much to Spend

• For reach, the goal is to expose as many of the target customers as possible • Find the most cost efficient media

• For frequency, it depends on the goal • Awareness and memory-a few exposures • Persuasion may take more • Readily understood ads wear-out quickly

When to Schedule

• It costs more to get higher ratings • However, the relationship is not perfect

When to Schedule: Concept in Action

• Example • NCIS: 17.5 million TVs • NCIS: $440,000 per 30 seconds • McDonald’s meal contribution: $0.50

• $440,000/0.50 = 880,000 meals/breakeven

• 17.5 million viewers are exposed; thus, McDonald’s needs 5% to purchase

• 880,000 / 17.5 million = 5%

• The question is…Is this reasonable?

When to Schedule

• Continuous: regularity in ad exposure

• Occasional: pop up from time to time

• Seasonal: infrequent and focused on the preterm season for the product

• e.g., School supplies in August, etc.

Which Media

• The choice of media outlet is difficult because… • There are more media outlets

• e.g., More television stations, more radio stations via XM, the Internet, etc.

• Audiences are fragmented across the many media and use technology to zip past ads

Which Media

• Integrated Marketing Communication • When advertising across media

• Consider the company’s overarching strategy

• Ensure a consistent message – All communications

» e.g., Trade advertising, personal selling, direct marketing, product placements, etc.

– As well as other marketing mix elements » e.g., Product design, pricing, channels, etc.

• Play to each media’s strength

Which Media

• Media comparisons • TV ads

• Most expensive; yield the largest reach; yield a broad not targeted reach; cable allows for some targeting; frequency is expensive

• Magazines • Have broad appeal or can be targeted

• Radio and newspapers • Purchased nationally, but can be purchased

for local markets

Which Media

• Media comparisons • Billboards are relatively inexpensive; good

for local coverage • Radio, newspapers, and magazines are less

expensive than TV, but they also deliver smaller audiences

• Magazines require long lead times for production; have good reproduction quality

Which Media

• Media comparisons • Newspapers and magazines are

nonintrusive; viewers can ignore ads

• Online and direct mail can be customized

• Online ads are inexpensive and can be targeted; Internet penetration isn’t 100%

• Direct mail is relatively inexpensive and targeted; not efficient (junk mail)

Which Media

Personal Selling

• Personal Selling • Is an essential communication vehicle

• Accounts for 14 million jobs – Over 10% of workforce

• Is especially important for expensive, complicated products

Designing a Sales Force

• Questions to consider… 1. How many sales people do I need?

• More with an aggressive launch or to protect territories

2. Where do I deploy them?

3. How do I compensate them? • Salary and commission

– Consider the competition

Designing a Sales Force

• Pull strategies • Direct promotional efforts to consumers

• Rely on advertising and sales promotions

• Push relies more on personal selling • Direct promotional efforts to channel

• Rely on trade allowances: price reductions to intermediaries for allocating space, etc.

– May be passed on to retailer’s salespeople as cash, training and product demonstrations, free merchandise, conventions, etc.

Public Relations

• Public relations • Convey a positive image and educate a

constituency about the company • Generate goodwill on behalf of the company

• Constituencies include • Customers, suppliers, stockholders,

government, employees, general community

Public Relations

• PR people • Issue press kits

• e.g., Press releases for “newsworthy” occurrences (e.g., product launch), company information, bios, history, etc.

• Maintain company information on website • Arrange events

• e.g., Speaking engagements, sponsorships, philanthropy, etc.

• Handle negative publicity and encourage positive publicity

Public Relations

• Publicity • Is a “free” communication tool

• Can be negative or positive because companies cannot directly control it

• Has the appearance of objectivity

• PR can issue press releases, but there is no guarantee that they will be picked up

Product Placement

• Product placement • Products are integrated into shows • More subtle than ads

• e.g., Toyota Prius being driven on “Bones”

• Consumers can’t “zip” past them

Event Sponsorship

• Event sponsorship • Occur in sports, cultural or artistic endeavors • Brands draw from event’s positive valence

and high positive energy • e.g., sponsoring NASCAR racing

• Not clear if it is cost-effective

Sales Promotion

• Sales promotions • Activate purchase interest and influence

short-term sales • e.g., Coupons, rebates, promotional pricing,

loyalty programs, trials, contests, etc.

• Are good for enticing customers to switch

Promotional Choice Depends on Goals

• When determining which promotional method to choose, consider…. • The target audience

• The company’s goals • e.g., Awareness, information, preferences,

purchase trial, repeat purchase, etc.

Assessing Media Effectiveness

• If goal is awareness, reach matters • Measure viewership, readership, circulation

numbers, traffic indices, etc.

• If goal is attitudinal, use surveys

• It can be difficult to assess ROMI because customers may not remember where they saw the ad

Assessing Media Effectiveness

• Considerations • Increasing ad budget relative to competition

doesn’t increase sales in general • Qualitative differences, such as better ad

copy, can increase the likelihood

• Ads that evoke positive and not negative feelings have been related to sales

• Some believe that ad budgets are more impactful when not spent on current customers

Assessing Media Effectiveness

• Online advertising • Track click-thru rates, downloads, inquiries,

purchases, returns, etc. & compare with cost per click, per download, per acquisition, etc.

• Online ad cost is low, but effectiveness is not great

Managerial Recap

• Decisions about expenditure and timing are integral to promotional campaigns

• Marketers must integrate marketing communications

• The effectiveness of advertising is measured using long-term and short- term measures