1. Place advertising, or out-of-home advertising, is a broad
category including many creative and unexpected forms to grab
consumers’ attention where they work, play, and, of course,
shop.
a. Billboards use colorful, digitally produced graphics,
backlighting, sounds, movement, and unusual—even
3D—images
b. Public Spaces: movie screens, airplane bodies, and
fitness equipment, as well as in classrooms, sports
arenas, office and hotel elevators, and other public
places
c. Product Placement: Marketers pay $100,000 to 500,000
so their products will make cameo appearances in
movies and on television
d. Point of Purchase: part of shopper marketing; appeal of
point-of-purchase advertising is that consumers make
many brand decisions in the store (shopping carts, cart
straps, aisles, and shelves and in-store demonstrations,
live sampling, and instant coupon machines
ii. Evaluating Alternate Media
1. Nontraditional media can often reach a very precise and
captive audience in a cost-effective manner, with ads anywhere
consumers have a few seconds to notice them. The message
must be simple and direct.
2. Ad placements designed to break through clutter may also be
perceived as invasive and obtrusive, however, especially in
traditionally ad-free spaces such as in schools, on police
cruisers, and in doctors’ waiting rooms.
3. The challenge for nontraditional media is demonstrating its
reach and effectiveness through credible, independent research
iii. Selecting Specific Media Vehicles
1. The media planner must choose the most cost-effective
vehicles within each chosen media type.
2. Media planners rely on measurement services that estimate
audience size, composition, and media cost and then calculate
the cost per thousand persons reached.
3. Marketers need to adjust the cost-per-thousand measure.
a. Audience quality
b. Audience-attention probability
c. Editorial quality (prestige and believability)
4. Media planners are using more sophisticated measures of
effectiveness and employing them in mathematical models to
arrive at the best media mix
iv. Media Timing and Allocation
1. The advertiser makes both a macroscheduling and a
microscheduling decision.
a. The macroscheduling decision relates to seasons and
the business cycle.
b. The microscheduling decision calls for allocating
advertising expenditures within a short period to obtain
maximum impact.
2. The chosen pattern should meet the marketer’s
communications objectives and consider three factors.
a. Buyer turnover expresses the rate at which new buyers
enter the market; the higher this rate, the more
continuous the advertising should be.
b. Purchase frequency is the number of times the average
buyer buys the product during the period; the higher the
purchase frequency, the more continuous the
advertising should be.
c. The forgetting rate is the rate at which the buyer forgets
the brand; the higher the forgetting rate, the more
continuous the advertising should be.
3. In launching a new product, the advertiser must choose among
continuity, concentration, flighting, and pulsing.
a. Continuity means exposures appear evenly throughout a
given period.
b. Concentration calls for spending all the advertising
dollars in a single period.
c. Flighting calls for advertising during a period, followed
by a period with no advertising, followed by a second
period of advertising activity.
d. Pulsing is continuous advertising at low levels,
reinforced periodically by waves of heavier activity. It
draws on the strengths of continuous advertising and
flights to create a compromise scheduling strategy.
4. A company must allocate its advertising budget over space as
well as over time.
B. Evaluating Advertising Effectiveness
i. Communication-effect research, called copy testing, seeks to
determine whether an ad is communicating effectively
1. Pretest critics maintain that agencies can design ads that test
well but may not necessarily perform well in the marketplace.
2. Proponents maintain that useful diagnostic information can
emerge and that pretests should not be used as the sole decision
criterion anyway.
ii. Sales-Effect Research
1. The fewer or more controllable other factors such as features
and price are, the easier it is to measure advertising’s effect on
sales.
2. The sales impact is easiest to measure in direct marketing
situations and hardest in brand or corporate image-building
advertising.
II. Sales Promotion
A. Sales promotion, a key ingredient in marketing campaigns, consists of a
collection of incentive tools, mostly short term, designed to stimulate quicker
or greater purchase of particular products or services by consumers or the
trade
i. Sales promotion expenditures increased as a percentage of budget
expenditure for a number of years, their growth has recently slowed.
1. Some sales promotion tools are consumer franchise building.
They impart a selling message along with the deal, such as free
samples, frequency awards, coupons with a selling message,
and premiums related to the product.
2. Sales promotion tools that are typically not brand building
include price-off packs, consumer premiums not related to a
product, contests and sweepstakes, consumer refund offers, and
trade allowances.
ii. Sales promotions in markets of high brand similarity can produce a
high sales response in the short run but little permanent gain over the
longer term. In markets with high brand dissimilarity, they may be able
to alter market shares permanently.
iii. In addition to brand switching, consumers may engage in stockpiling
—purchasing earlier than usual (purchase acceleration) or buying extra
quantities.
B. The fastest-growing area in sales promotions is digital coupons, redeemed via
smart phone or downloaded to a consumer’s printer.
i. Digital coupons eliminate printing costs, reduce paper waste, are easily
updatable, and have higher redemption rates.
ii. Many retailers are now offering customized coupons based on
consumer purchase histories
C. Major Decisions: Establish objectives, select the tools, develop the program,
implement and control it, and evaluate the results.
i. Establishing Objectives—Sales promotion objectives derive from
communication objectives, which derive from basic marketing
objectives for the product.
1. Objectives for consumers include encouraging more frequent
purchases or purchase of larger-sized units among users,
building trial among nonusers, and attracting switchers away
from competitors’ brands.
2. Retailer objectives include persuading retailers to carry new
items and more inventory, encouraging off-season buying,
encouraging stocking of related items, offsetting competitive
promotions, building brand loyalty, and gaining entry into new
retail outlets.
3. For the sales force, objectives of promotion include
encouraging their support of a new product or model,
encouraging more prospecting, and stimulating off-season
sales.
ii. Selecting Consumer Promotion Tools—The promotion planner should
take into account the type of market, sales promotion objectives,
competitive conditions, and each tool’s cost-effectiveness.
1. Samples
2. Coupons
3. Cash Refund Offers
4. Price Packs
5. Premiums
6. Frequency Programs
7. Prizes
8. Patronage Awards
9. Free Trials
10. Warranties
11. Tie-in Promotions
12. Cross Promotions
13. Point-of-Purchase displays and demonstrations
iii. Selecting Trade Promotion Tools
Award money to the trade to
1. Persuade the retailer or wholesaler to carry the brand
2. Persuade the retailer or wholesaler to carry more units than the
normal amount
3. Induce retailers to promote the brand by featuring, display, and
price reductions
4. Stimulate retailers and their sales clerks to push the product
5. Tools include
a. Price-Off
b. Allowance
c. Free Goods
iv. Selecting Business and Sales Force Promotion Tools
1. For many new businesses that want to make a splash to a
targeted audience, especially in the B-to-B world, trade shows
are an important tool, but the cost per contact is the highest of
all communication options.
2. Major Business and Sales Force Promotion Tools
a. Trade Shows and Conventions
b. Sales Contests
c. Specialty Advertising
v. Developing the Program
1. In deciding to use a particular incentive, marketers must first
determine its size.
2. Establish conditions for participation. Incentives might be
offered to everyone or to select groups.
3. Decide on the duration of the promotion
4. Choose a distribution vehicle
5. Establish the timing of promotion
6. Establish the total sales promotion budget
vi. Implementing and Evaluating the Program
1. Marketing managers’ implementation and control plans must
cover lead time and sell-in time for each individual promotion.
a. Lead time is the time necessary to prepare the program
prior to launching it.
b. Sell-in time begins with the promotional launch and
ends when approximately 95 percent of the deal
merchandise is in the hands of consumers.
2. Manufacturers can evaluate the program using sales data,
consumer surveys, and experiments.
a. Sales (scanner) data help analyze the types of people
who took advantage of the promotion, what they bought
before the promotion, and how they behaved later
toward the brand and other brands.
b. Consumer surveys can uncover how many consumers
recall the promotion, what they thought of it, how many
took advantage of it, and how it affected later
brand-choice behavior
c. Experiments vary such attributes as incentive value,
duration, and distribution media.
III. Events and Experiences
A. Events Objectives—Marketers report a number of reasons to sponsor events:
i. To identify with a particular target market or lifestyle
ii. To increase salience of company or product name
iii. To create or reinforce perceptions of key brand image associations
iv. To enhance corporate image
v. To create experiences and evoke feelings
vi. To express commitment to the community or on social issues
vii. To entertain key clients or reward key employees
viii. To permit merchandising or promotional opportunities
B. The result of an event can still be unpredictable and beyond the sponsor’s
control.
C. Major Sponsorship Decisions
i. Choosing events: Because of the number of sponsorship opportunities
and their huge cost, many marketers are becoming more selective.
1. The event must meet the marketing objectives and
communication strategy defined for the brand.
2. It must have sufficient awareness, possess the desired image,
and be able to create the desired effects.
3. The audience must match the target market and make favorable
attributions for the sponsor’s engagement.
4. An ideal event is also unique but not encumbered with many
sponsors, lends itself to ancillary marketing activities, and
reflects or enhances the sponsor’s brand or corporate image
ii. Designing Sponsorship Programs: Many marketers believe the
marketing program accompanying an event sponsorship ultimately
determines its success.
1. At least two to three times the amount of the sponsorship
expenditure should be spent on related marketing activities.
2. Event creation is a particularly important skill in publicizing
fund-raising drives for nonprofit organizations.
3. Fund-raisers have developed a large repertoire of special
events, including anniversary celebrations, art exhibits,
auctions, benefit evenings, book sales, cake sales, contests,
dances, dinners, fairs, fashion shows, phonathons, rummage
sales, tours, and walkathons.
iii. Measuring Sponsorship Activities: It’s a challenge to measure the
success of events.
1. Measure outcomes, not outputs.
2. Define and benchmark objectives on the front end.
3. Measure return for each objective against prorated share of
rights and activation fees.
4. Measure behavior.
5. Apply the assumptions and ratios used by other departments
within the company.
6. Research the emotional identities of customers and measure the
results of emotional connections.
7. Identify group norms.
8. Include cost savings in ROI calculations.
9. Slice the data.
10. Capture normative data
11. Supply-side methods for measuring an event’s success assess
the media coverage
a. Equating media coverage with advertising exposure
ignores the content of the respective communications.
b. Media coverage and telecasts only expose the brand and
don’t necessarily embellish its meaning in any direct
way
12. Demand-side method identifies the sponsorship’s effect on
consumers’ brand knowledge.
D. Creating Experiences
i. Experiential marketing not only communicates features and benefits
but also connects a product or service with unique and interesting
experiences.
ii. Many firms are creating their own events and experiences to create
consumer and media interest and involvement.
IV. Public Relations
A. Public relations (PR) includes a variety of programs to promote or protect a
company’s image or individual products.
B. PR departments counsel top management to adopt positive programs and
eliminate questionable practices so negative publicity doesn’t arise in the first
place and perform the following five functions:
i. Press relations—Presenting news and information about the
organization in the most positive light
ii. Product publicity—Sponsoring efforts to publicize specific products
iii. Corporate communications—Promoting understanding of the
organization through internal and external communications
iv. Lobbying—Dealing with legislators and government officials to
promote or defeat legislation and regulation
v. Counseling—Advising management about public issues as well as
company positions and image during good times and bad
C. Marketing Public Relations support corporate or product promotion and image
making and serves the marketing department.
i. Used to be called publicity, the task of securing editorial space—as
opposed to paid space—in print and broadcast media to promote or
hype a product, service, idea, place, person, or organization.
ii. MPR goes beyond simple publicity and plays an important role in the
following tasks:
1. Launching new products.
2. Repositioning mature products.
3. Building interest in a product category.
4. Influencing specific target groups.
5. Defending products that have encountered public problems.
6. Building the corporate image in a way that reflects favorably
on its products.
D. Major Decisions in Marketing PR: establish the marketing objectives, choose
the PR messages and vehicles, implement the plan, and evaluate the results.
i. Major tools
1. Publications
2. Events
3. Sponsorships
4. News
5. Speeches
6. Public Service Activities
7. Identity Media
ii. Establishing Objectives:
1. Build awareness by placing stories in the media to bring
attention to a product, service, person, organization, or idea
2. Build credibility by communicating the message in an editorial
context
3. Boost sales force and dealer enthusiasm with stories about a
new product before it is launched.
4. Hold down promotion cost because MPR costs less than
direct-mail and media advertising
iii. Choosing Messages and Vehicles
iv. Implementing the Plan and Evaluating Results
1. Easiest gauge of its effectiveness is the number of exposures
carried by the media, but it contains no indication of how many
people actually read, heard, or recalled the message and what
they thought afterward; nor does it contain information about
the net audience reached because publications overlap in
readership. It also ignores the effects of electronic media.
2. A better measure is the change in product awareness,
comprehension, or attitude resulting from the MPR campaign
(after accounting for the effect of other promotional tools as
well as possible).