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Advertisements, Promotions, and News Releases,Chapter 10,Deny A. K,Main Topics,Marketing MixPromotion MixPlanning an advertising and promotional campaignCommunicating with an advertisement Planning a news release,Marketing Mix (the four Ps),Product:Product variety, quality, design, features, brand name, packaging, sizes, services, warranties.PriceList price, Discounts, Allowances, Payment period, Credit termsPlaceChannels, Locations, TransportPromotionAdvertising, sales promotion, public relations, personal selling, direct marketing.,Promotional mix,Promotional mix term given to the combination of promotional approaches that an organisation uses to communicate with the world around it.,Promotion Mix (Promotion Channels),AdvertisingSales promotionPublic relationsPersonal sellingDirect marketing,Focus on Three Channels,Advertising: Any paid form of nonpersonal presentation and promotion of a product.Sales promotion: Short term incentives to encourage trial or purchase of a product. Public relations: A variety of programs designed to promote and/or protect a companys image or its individual products.,Advertising and Sales promotion,Can serve a variety of communication objectives:creating or increasing awareness (e.g. informing the target market of a new service);informing or educating (e.g. explaining how to make better use of a service);stimulating various types of purchase decision (e.g. encouraging people to buy a product).,Planning an advertising andpromotional campaign,Imagine that you are the product manager responsible for launching Vegetale in your organisations Northern European sales territory. It is a new, vegetable-based, high-protein food that is being positioned as an attractive alternative to meat.How would you develop an advertising campaign, as the product moves from the development stage to its initial launch in this market?,1. Marketing researche.g. (1) Who buys food for the household? (2) What are the existing alternatives to meat, and how are they perceived by both consumers and non-consumers? (3) What do people already know and think of Vegetale and the companys other products?,Planning an advertising andpromotional campaign (continued),2. Identifying target market(s)e.g. In the Vegetale example, your research suggests that the demographic profile is likely to comprise females aged 20 to 35 who are professionals and skilled workers (socio-economic groups).,Planning an advertising andpromotional campaign (continued),Market Segmentation,Geographic,RegionDensity,AgeGenderOccupationEducation,Social classLifestyle,OccasionsLoyalty status,Behavioral,Psychographic,Demographic,Mass MarketingVersusTarget Marketing,3. Developing campaign objectives25% unprompted recall of Vegetale in your target market, by the end of a 3-month media campaign 4. Planning and budgetingthe channels to be used (e.g. newspaper and television adverts, in-store promotions); the timescale of the campaign;,Planning an advertising andpromotional campaign (continued),5. Drafting material key messagese.g. your key messages might be that Vegetale is a new, nutritious, low-fat product, derived entirely from natural vegetable ingredients, which can be prepared much like meat and which has a similar texture to veal.,Planning an advertising andpromotional campaign (continued),Challenges of direct engagement,Product samples trial size shampoos, attached to magazines or delivered to the door, and cut-down versions of computer software packages, supplied as a CD-Rom or downloaded via the Internet. e.g. In 1960s, a company was forced to discontinue its new promotional campaign for razor bladesBECAUSE inquisitive children across the country began opening product samples that had been dropped through their letterboxes.,Challenges of direct engagement (continued),Miscalculations e.g. In the early 1990s, Hoover offered its UK customers two free flights to European or US destinations if they spent more than 100 on its products It was worth purchasing a Hoover product, simply to secure the two free flights. The offer was massively over-subscribed, leading to legal actions by disappointed customers, a public relations disaster, multi-million pound losses and the subsequent departure of several senior executives.,Table 10.1 Some popular advertising formats,Some popular advertising formats,Some popular advertising formats (continued),Table 10.1 Some popular advertising formats,An example of a Postmodern Advert,Measured Advertising Dollars (2004) for Selected Fast Food Brands,Source: “The Top 200 Megabrands”, Advertising Age. July 18, 2005. Accessed August 7, 2005.,Public relations,The UKs Institute of Public Relations (IPR) has defined this communication role as the planned and sustained effort to establish and maintain goodwill and mutual understanding between an organisation and its publics (IPR 2003).,Figure 10.2 An organisations dialogue with its stakeholders,An organisations dialogue with its stakeholders,Successful PR,PR can only be successful if it addresses the following key principles:Senior management commitment is essentialPR activity must be linked to strategic aimsOrganisations must understand and engage with its publicsPR strategies require plans, budgets and resourcesFeedback from PR activity should inform strategic change,PR activities and communication channels,Corporate brochuresSponsorshipLobbyingInternal communicationNews releases Exhibitions and events,Planning a news release,A news release: A statement, often about the launch of a new product, service or event used by an organisation to brief media journalists and encourage them to write articles on the
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