Advertising and the Marketing Process

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Chapter 3

• Advertising and the Marketing Process

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Learning Objectives

• Learn how advertising relates to marketing.
• An overview of an IMC planning process.
• Understand advantages and disadvantages of
  various forms of marketing communications.
• Review various positioning strategies.

3
The Marketing Plan
A Marketing Plan is a Blueprint of Planned
Marketing Activity That Strives to Create a
Competitive Advantage for an Individual Product,
a Product Line, or an Idea.
Research Stage Analyze Marketing Environment
Strategic Stage Develop Objectives and Strategies
Tactical Stage Specific Tools Are Selected
Implementation Stage Coordinate Strategy With
Marketing Activities
Evaluation Stage Assess How Well Objectives Were
Achieved
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Advertisings Role in the Marketing Plan (Fig.
3.1)
Advertising is One of Several Marketing
Communication Options.
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The Promotional Mix
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An Integrated Marketing Communications Planning
Model
Review of marketing plan
Analysis of promotional program situation
Analysis of the communications process
Budget determination
Develop integrated marketing communication
program
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An Integrated Marketing Communications Planning
Model (contd)
Advertising
Direct Marketing
Sales promotion
PR/ Publicity
Personal selling
Advertising objectives
Direct Marketing objectives
Sales Promotion objectives
PR/publicity objectives
Personal Selling objectives
Message strategy
Direct Marketing strategy
Sales Promotion strategy
PR/publicity strategy
Personal Selling strategy
Media strategy
Integrate implement marketing communications
strategies
Monitor, evaluate, and control integrated
marketing communications program
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EXH 5-9
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Allocation of Advertising and Promotional Budgets
(in percentages)
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Advertising Advantages

• Ability to control message
• Cost effective way to reach a large target market
• Ability to create images and differentiate brands
• Can sometimes strike responsive reaction from
  customers

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Advertising Disadvantages

• High costs of producing and placing ads
• Difficult to determine effectiveness
• Credibility problems
• Clutter

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Sales Promotion Advantages

• Provides extra incentive to purchase product
• Way to appeal to price sensitive consumer
• Can generate extra interest in ads
• Easier to measure efforts

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Sales Promotion Disadvantages

• Often only has short term impact
• Often abused
• Can lead to promotional wars
• Often does not contribute to brand image

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Publicity/PR

• Advantages
• -- Credibility
• -- Low cost way to communicate
• Disadvantages
• -- Lack of control
• -- Difficult to get media cooperation
• -- Can be negative

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Personal Selling Advantages

• Communication flexibility
• Can communicate complex information
• Can target to specific markets and customers
• Direct Feedback

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Personal Selling Disadvantages

• High cost per contract
• Expensive way to reach large number of customers
• Difficult to communicate uniform message

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Direct Marketing Advantages

• Changes in society have made consumers receptive
  to direct-marketed products
• Allows for more selectivity and target marketing
• Can customize message

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Direct Marketing Disadvantages

• Consumers and businesses receive too much
  unsolicited direct mail and phone calls
• Image problems for direct-marketed products
• Clutter problems

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Breakdown of Spending on Event Sponsorship
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Most Common Reasons Marketers Sponsor Events

1. Increase awareness of company or product name.
2. Identify with a particular lifestyle.
3. Differentiate product from competitors.
4. Enhance commitment to community or ethnic group.
5. Entertain key clients business-to-business
   marketing.
6. Create merchandising opportunities.
7. Shape or reinforce the publics perception of a
   products attributes
8. Affect the bottom line.

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How to measure the effectiveness of sponsorship
(DDBNeedham)

• Persuasion Impact
• (Strength of the Link) x (Duration of the Link) x
  (Gratitude Felt due to the Link) (Perceptual
  Change due to the Link)
• Strength of the link of the target who
  recognize the link between the sponsoring brand
  and the event or organization
• Gratitude I feel I am contributing to the
  event by buying the sponsoring brands

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Product Differentiation

• A Competitive Marketing Strategy Designed to
• Create Product Differences in the Eyes
• of the Consumer.

Intangible Differences Image That Implies
Difference such as Status, Enjoyment or
Masculinity
Tangible Differences Product Features, Color,
Size, Quality of Performance, Options or Price
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Positioning Guidelines

• Marketers can position a product, service, or
  idea in the following ways
• By attribute (Pentium III offers 3-dimensional
  graphics)
• By price (Wal-Mart means value)
• By its ability to surpass the competition (Ford
  beats Chevy)
• By application (Tylenol Flu is for flu attacks)
• By product user (TeenPeople is the favorite
  magazine of high school students)
• By product class (Carnation Instant Breakfast is
  a breakfast food)

24
Review

• Learn how advertising relates to marketing.
• An overview of an IMC planning process.
• Understand advantages and disadvantages of
  various forms of marketing communications.
• Review various positioning strategies.