Designing and Managing an Integrated Marketing Campaign Sess.docx

Designing and Managing an Integrated Marketing Campaign
Session 9
Integrated Marketing
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The Role of Marketing Communications
Marketing communications
The means by which firms attempt to inform, persuade, and
remind consumers about the products and brands they sell
Copyright © 2016, 2012, 2009 Pearson Education, Inc. All
Rights Reserved
In a sense, they represent the voice of the company and its
brands; they are a means by which the firm can establish a
dialogue and build relationships with consumers. By
strengthening customer loyalty, they can contribute to customer
equity. Marketing communications also work by showing
consumers how and why a product is used, by whom, where, and
when. Consumers can learn who makes the product and what the
company and brand stand for, and they can become motivated to
try or use it. Marketing communications allow companies to
link their brands to other people, places, events, brands,
experiences, feelings, and things.
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Marketing Communications Mix -
In this new marketing communications environment, companies
want to build sales, brand and customer equity - Marketers
wants to communicate but question is: How? When? How often?
Choices are endless; hundreds of cable and satellite stations,
thousands of magazines and newspapers, millions of internet
pages. Holistic marketers need to develop multiple forms of
communication that speak to consumers
.
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How Does Marketing Communications Work?
Starts with a communications audit that profiles all consumer

interactions with the product
Need to assess which experiences and impressions have the
most influence on each stage of the buying process.
Want to build impressions, loyalty, brand equity
The communications process models include:
Macromodel of the communications process -
Effective communication model; Sender, receiver, message,
medium, encoding, decoding, response and feedback
Micromodel of consumer responses - concentrates on responses
learn-feel-do (House or car purchase)
Do-feel-learn -high involvement but little differentiation
between brands (airline tickets)
Learn-do -feel - low involvement and little differentiation
(batteries, salt)
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Marketers should understand the fundamental elements of
effective communications. Two models are useful: a
macromodel and a micromodel.
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Marketing Communications Mix
Advertising
Sales promotion
Events and experiences
Public relations and publicity
Online and social media marketing
Mobile marketing
Direct and database marketing
Personal selling
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The marketing communications mix consists of eight major
modes of communication:
1. Advertising—Any paid form of nonpersonal presentation and
promotion of ideas, goods, or services by an identified sponsor
via print media (newspapers and magazines), broadcast media
(radio and television), network media (telephone, cable,
satellite, wireless), electronic media (audiotape, videotape,
videodisk, CD-ROM, Web page), and display media (billboards,
signs, posters).
2. Sales promotion—A variety of short-term incentives to
encourage trial or purchase of a product or service including
consumer promotions (such as samples, coupons, and
premiums), trade promotions (such as advertising and display
allowances), and business and sales force promotions (contests
for sales reps).
3. Events and experiences—Company-sponsored activities and
programs designed to create daily or special brand-related
interactions with consumers, including sports, arts,
entertainment, and cause events as well as less formal activities.
4. Public relations and publicity—A variety of programs
directed internally to employees of the company or externally to
consumers, other firms, the government, and media to promote
or protect a company’s image or its individual product
communications.
5. Online and social media marketing—Online activities and
programs designed to engage customers or prospects and
directly or indirectly raise awareness, improve image, or elicit
sales of products and services.
6. Mobile marketing—A special form of online marketing that
places communications on consumer’s cell phones, smart
phones, or tablets.
7. Direct and database marketing—Use of mail, telephone, fax,
e-mail, or Internet to communicate directly with or solicit
response or dialogue from specific customers and prospects.
8. Personal selling—Face-to-face interaction with one or more

prospective purchasers for the purpose of making presentations,
answering questions, and procuring orders.
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1. Advertising - Any paid form of nonpersonal presentation and
promotion of ideas, goods, or services by an identified sponsor
via print media (newspapers and magazines), broadcast media
(radio and television), network media (telephone, cable,
satellite, wireless), electronic media (audiotape, videotape,
videodisk, CD-ROM, Web page), and display media (billboards,
signs, posters)
2. Sales Promotion - A variety of short-term incentives to
encourage trial or purchase of a product or service including
consumer promotions (such as samples, coupons, and
premiums), trade promotions (such as advertising and display
allowances), and business and sales force promotions (contests
for sales reps).
3. Events and experiences Company-sponsored activities and
programs designed to create daily or special brand-related
interactions with consumers, including sports, arts,
entertainment, and cause events as well as less formal activities.
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4.Public relations and publicity. A variety of programs directed
internally to employees of the company or externally to
consumers, other firms, the government, and media to promote
or protect a company’s image or its individual product
communications.

5.Online and social media marketing—Online activities and
programs designed to engage customers or prospects and
directly or indirectly raise awareness, improve image, or elicit
sales of products and services.
6. Mobile marketing - A special form of online marketing that
places communications on consumer’s cell phones, smart
phones, or tablets
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7. Direct and database marketing - Use of mail, telephone, fax,
e-mail, or Internet to communicate directly with or solicit
response or dialogue from specific customers and prospects.
8. Personal selling - Face-to-face interaction with one or more
prospective purchasers for the purpose of making presentations,
answering questions, and procuring orders.
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Oreo - A Global Brand
Togetherness
Milk’s favorite cookie
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Brand positioning focuses on “milk’s favorite cookie and
moments of togetherness. In US translated to Celebrate the kid
inside. Capitalizing on 100th birthday; Ads, and in-store contest
focused on twist, kicj and dunk. 100 day daily twist promotion
paired brand with cultural images, icons adnevents; Elvis week,
Mars Rover, Gay Pride week, Bastille Day.
Oreo Birthday pafe received 25 million likes . US sales
increased 25%. In India - launch ads showed father and son in
twist, lick and dunk ritual. Parents signed Oreo Togetherness
pledge for quality time with children. Bus traveled around the
country providing “fun, togetherness moments”
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Oreo - Capturing a Moment
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Super Bowl 2013 - power outage darkened stadium for half an
hour - Marketers response was a tweet; “Power out? No
problem, yu can still dunk in the dark? That became the social
media moment of the
game

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Sales Promotion (2 of 7)
Establishing objectives
For consumers, retailers, and the sale force
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Sales promotion objectives derive from communication
objectives, which derive from basic marketing objectives for the
product.
For consumers, objectives include encouraging more frequent
purchases or purchase of larger-sized units among users,
building trial among nonusers, and attracting switchers away
from competitors’ brands. If some of the brand switchers would
not have otherwise tried the brand, promotion can yield long-
term increases in market share.56 Ideally, consumer promotions
have short-run sales impact and long-run brand equity effects.
For retailers, 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.
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.
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Selecting consumer promotion tools

Table 20.3 Major Consumer Promotion ToolsSamples: Offer of
a free amount of a product or service delivered door to door,
sent in the mail, picked up in a store,
attached to another product, or featured in an advertising
offer.Coupons: Certificates entitling the bearer to a stated
saving on the purchase of a specific product: mailed, enclosed
in
other products or attached to them, inserted in magazine and
newspaper ads, or emailed or made available online.Cash
Refund Offers (rebates): Provide a price reduction after
purchase rather than at the retail shop: Consumer sends a
specified “proof of purchase” to the manufacturer who
“refunds” part of the purchase price by mail.Price Packs (cents-
off deals): Offers to consumers of savings off the regular price
of a product, flagged on the label or package. A reduced-price
pack is a single package sold at a reduced price (such as two for
the price of one). A banded pack is two related products banded
together (such as a toothbrush and toothpaste).Premiums (gifts):
Merchandise offered at a relatively low cost or free as an
incentive to purchase a particular product. A with-pack
premium accompanies the product inside or on the package. A
free in-the-mail premium is mailed to consumers who send in a
proof of purchase, such as a box top or UPC code. A self-
liquidating premium is sold below its normal retail price to
consumers who request it.
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The promotion planner should take into account the type of
market, sales promotion objectives, competitive conditions, and
each tool’s cost-effectiveness. The main consumer promotion
tools are summarized in Table 20.3. Manufacturer promotions in
the auto industry, for instance, are rebates, gifts to motivate
test-drives and purchases, and high-value trade-in credit.

Retailer promotions include price cuts, feature advertising,
retailer coupons, and retailer contests or premiums.
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Selecting business and sales force promotion tools
Table 20.5 Major Business and Sales Force Promotion
ToolsTrade Shows and Conventions: Industry associations
organize annual trade shows and conventions. These are a
multibillion-dollar business, and business marketers may spend
as much as 35 percent of their annual promotion budget on
them. Attendance can top 70,000 for large shows held by the
restaurant or hotel-motel industries. The International Consumer
Electronics Show is one of the largest in the world, with more
than 150,000 attendees in 2013. Participating vendors can
generate new sales leads, maintain customer contacts, introduce
new products, meet new customers, sell more to present
customers, and educate customers with publications, videos, and
other audiovisual materials.Sales Contests: A sales contest aims
at inducing the sales force or dealers to increase sales results
over a stated period, with prizes (money, trips, gifts, or points)
going to those who succeed.Specialty Advertising: Specialty
advertising consists of useful, low-cost items bearing the
company’s name and address, and sometimes an advertising
message, that salespeople give to prospects and customers.
Common items are ballpoint pens, calendars, key chains,
flashlights, tote bags, and memo pads.
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Companies spend billions of dollars on business and sales force
promotion tools (see Table 20.5) to gather leads, impress and
reward customers, and motivate the sales force. They typically
develop budgets for tools that remain fairly constant from year

to year. 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.
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Events and Experiences (1 of 3)
Events objectives
To identify with a target market or lifestyle
To increase salience of company/product name
To create/reinforce key brand image associations
To enhance corporate image
To create experiences and evoke feelings
To express commitment to the community or on social issues
To entertain key clients or reward employees
To permit merchandising/promotional opportunities
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Marketers report a number of reasons to sponsor events, which
are listed on this slide.
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Major sponsorship decisions
Choosing events
Designing sponsorship programs
Measuring sponsorship activities
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Making sponsorships successful requires choosing the
appropriate events, designing the optimal sponsorship program,
and measuring the effects of sponsorship.
Choosing Events Because of the number of sponsorship
opportunities and their huge cost, many marketers are becoming
more selective. The event must meet the marketing objectives
and communication strategy defined for the brand.
Designing Sponsorship Programs Many marketers believe the
marketing program accompanying an event sponsorship
ultimately determines its success. At least two to three times the
amount of the sponsorship expenditure should be spent on
related marketing activities.
Measuring Sponsorship Activities It’s a challenge to measure
the success of events. Supply-side methods for measuring an
event’s success assess the media coverage, for example, the
number of seconds the brand is clearly visible on a television
screen or the column inches of press clippings that mention it.
The demand-side method identifies the sponsorship’s effect on
consumers’ brand knowledge. Marketers can survey spectators
to measure their recall of the event and their resulting attitudes
and intentions toward the sponsor.
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Creating experiences
Experiential marketing
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A large part of local, grassroots marketing is experiential

marketing, which not only communicates features and benefits
but also connects a product or service with unique and
interesting experiences. “The idea is not to sell something, but
to demonstrate how a brand can enrich a customer’s life.” Many
firms are creating their own events and experiences to create
consumer and media interest and involvement.
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Measuring Sponsorship Programs
Measure outcomes, not outputs
Define/benchmark objectives on front end
Measure return for each objective
Measure behavior
Apply assumptions/ratios used by other departments
Measure results of emotional connections
Identify group norms
Include cost savings in ROI calculations
Slice the data
Capture normative data
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It’s a challenge to measure the success of events. “Marketing
Memo: Measuring High-Performance Sponsorship Programs”
offers some guidelines from industry experts IEG.
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Public Relations (1 of 4)
PR department functions
Press relations
Product publicity
Corporate communications
Lobbying
Counseling

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A public is any group that has an actual or potential interest in
or impact on a company’s ability to achieve its objectives.
Public relations (PR) includes a variety of programs to promote
or protect a company’s image or individual products.
The best PR departments counsel top management to adopt
positive programs and eliminate questionable practices so
negative publicity doesn’t arise in the first place. They perform
the following five functions:
1. Press relations—Presenting news and information about the
organization in the most positive light
2. Product publicity—Sponsoring efforts to publicize specific
products
3. Corporate communications—Promoting understanding of the
organization through internal and external communications
4. Lobbying—Dealing with legislators and government officials
to promote or defeat legislation and regulation
5. Counseling—Advising management about public issues as
well as company positions and image during good times and bad
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Marketing public relations (MPR) tasks
Launching new products
Repositioning mature products
Building corporate image
Building interest in product
Defending problem products
Influencing target groups

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Many companies are turning to marketing public relations
(MPR) to support corporate or product promotion and image
making. MPR, like financial PR and community PR, serves a
special constituency, the marketing department. The old name
for MPR was 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.
MPR goes beyond simple publicity and plays an important role
in the following tasks:
Launching new products. The amazing one-time commercial
success of toys such as LeapFrog, Beanie Babies, and Silly
Bandz owes a great deal to strong publicity.
Repositioning mature products. In a classic PR case study, New
York City had extremely bad press in the 1970s until the “I
Love New York” campaign.
Building interest in a product category. Companies and trade
associations have used MPR to rebuild interest in declining
commodities such as eggs, milk, beef, and potatoes and to
expand consumption of such products as tea, pork, and orange
juice.
Influencing specific target groups. McDonald’s sponsors special
neighborhood events in Latino and African American
communities to build goodwill.
Defending products that have encountered public problems. PR
professionals must be adept at managing crises, such as those
weathered by such well-established brands as Tylenol, Toyota,
and BP in recent years. Building the corporate image in a way
that reflects favorably on its products. The late Steve Jobs’s

heavily anticipated Macworld keynote speeches helped to create
an innovative, iconoclastic image for Apple Corporation.
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Major decisions in marketing PR
Establishing objectives
Choosing messages and vehicles
Implementing the plan
Evaluating results
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In considering when and how to use MPR, management must
establish the marketing objectives, choose the PR messages and
vehicles, implement the plan, and evaluate the results.
Establishing Objectives MPR can build awareness by placing
stories in the media to bring attention to a product, service,
person, organization, or idea. It can build credibility by
communicating the message in an editorial context. It can help
boost sales force and dealer enthusiasm with stories about a new
product before it is launched. It can hold down promotion cost
because MPR costs less than direct-mail and media advertising.
A good MPR campaign can achieve multiple objectives.
Choosing Messages and Vehicles The MPR practitioner will
search for stories. Each event and activity is an opportunity to
develop a multitude of stories directed at different audiences.
Whereas PR practitioners reach their target publics through the
mass media, MPR is increasingly borrowing the techniques and
technology of online and direct-response marketing to reach
target-audience members one on one.

Implementing the Plan and Evaluating Results MPR’s
contribution to the bottom line is difficult to measure because
MPR is used along with other promotional tools. The easiest
gauge of its effectiveness is the number of exposures carried by
the media. 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).
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Table 20.6 Major Tools in Marketing PRPublications:
Companies rely extensively on published materials to reach and
influence their target markets. These
include annual reports, brochures, articles, company newsletters
and magazines, and audiovisual materials.Events: Companies
can draw attention to new products or other company activities
by arranging and publicizing
special events such as news conferences, seminars, outings,
trade shows, exhibits, contests and competitions, and
anniversaries that will reach the target publics.Sponsorships:
Companies can promote their brands and corporate name by
sponsoring and publicizing sports and
cultural events and highly regarded causes.News: One of the
major tasks of PR professionals is to find or create favorable
news about the company, its products,
and its people and to get the media to accept press releases and
attend press conferences.Speeches: Increasingly, company
executives must field questions from the media or give talks at
trade associations
or sales meetings, and these appearances can build the
company’s image.Public Service Activities: Companies can
build goodwill by contributing money and time to good
causes.Identity Media: Companies need a visual identity that the
public immediately recognizes. The visual identity is carried

by company logos, stationery, brochures, signs, business forms,
business cards, buildings, uniforms, and dress codes.
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The main tools of MPR are described in Table 20.6.
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Common Communication Platforms
Table 19.1 Examples of the Eight Common Communication
PlatformsAdvertisingSales PromotionEvents and
ExperiencesPublic Relations
and PublicityOnline and
Social Media
MarketingMobile
MarketingDirect and
Database
MarketingPersonal
SellingPrint and
broadcast adsContests, games,
sweepstakes,
lotteriesSportsPress kitsWeb sitesText messagesCatalogsSales
presentationsPackaging–
outerPremiums and giftsEntertainmentSpeechesE-mailOnline
marketingMailingsSales
meetingsPackaging
insertsSamplingFestivalsSeminarsSearch adsSocial media
marketingTelemarketingIncentive
programsCinemaFairs and trade showsArtsAnnual
reportsDisplay adsElectronic
shoppingSamples
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Table 19.1 lists examples of these platforms, but company
communication goes beyond these. The product’s styling and
price, the shape and color of the package, the salesperson’s
manner and dress, the store decor, and the company’s stationery
all communicate something to buyers. Every brand contact
delivers an impression that can strengthen or weaken a
customer’s view of a company.
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Figure 19.1 Elements in Communications Process
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Figure 19.1 shows a macromodel with nine key factors in
effective communication. Two represent the major parties—
sender and receiver. Two represent the major tools—message
and media. Four represent major communication functions—
encoding, decoding, response, and feedback. The last element in
the system is noise, random and competing messages that may
interfere with the intended communication.
Senders must know what audiences they want to reach and what
responses they want to get. They must encode their messages so
the target audience can successfully decode them. They must
transmit the message through media that reach the target
audience and develop feedback channels to monitor the
responses. The more the sender’s field of experience overlaps
that of the receiver, the more effective the message is likely to
be. Note that selective attention, distortion, and retention
processes—first introduced in Chapter 6—may be operating.
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Figure 19.2 Response Hierarchy Models
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Micromodels of marketing communications concentrate on
consumers’ specific responses to communications. Figure 19.2
summarizes four classic response hierarchy models. All these
models assume the buyer passes through cognitive, affective,
and behavioral stages in that order. This “learn-feel-do”
sequence is appropriate when the audience has high involvement
with a product category perceived to have high differentiation,
such as an automobile or house. An alternative sequence, “do-
feel-learn,” is relevant when the audience has high involvement
but perceives little or no differentiation within the product
category, such as airline tickets or personal computers. A third
sequence, “learn-do-feel,” is relevant when the audience has
low involvement and perceives little differentiation, such as
with salt or batteries. By choosing the right sequence, the
marketer can do a better job of planning communications.
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Developing Effective Communications (1 of 4)
Figure 19.3 Steps in Developing Effective Communications
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Identify the target audience -Potential buyers,current users,
deciders, or influencers, as well as individuals, groups,
particular publics, or the general public. The target audience is
a critical influence on the communicator’s decisions about what
to say, how, when, where, and to whom.
Set the communications objectives
Establish need for category- how necessary? Ex. Electric cars
Build brand awareness- recognition and recall
Build brand attitude -relevancy, meets need
Influence brand purchase intention- move consumer to action
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The process must start with a clear target audience in mind:
potential buyers of the company’s products, current users,
deciders, or influencers, as well as individuals, groups,
particular publics, or the general public. The target audience is
a critical influence on the communicator’s decisions about what
to say, how, when, where, and to whom.
Set the Communications Objectives
Establish need for category—Establishing a product or service
category as necessary for removing or satisfying a perceived
discrepancy between a current motivational state and a desired
motivational state.
2. Build brand awareness—Fostering the consumer’s ability to
recognize or recall the brand in sufficient detail to make a
purchase.
3. Build brand attitude—Helping consumers evaluate the
brand’s perceived ability to meet a currently relevant need.
4. Influence brand purchase intention—Moving consumers to
decide to purchase the brand or take purchase-related action.
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Design the Communications
Message strategy - What to say - In selecting message
strategy, management searches for appeals, themes, or ideas that
will tie into the brand positioning and help establish points-of-
parity or points-of-difference. Some of these appeals or ideas
may relate directly to product or service performance (the
quality, economy, or value of the brand); others may relate to
more extrinsic considerations (the brand as being contemporary,
popular, or traditional).
Creative strategy - How to say it - Effectiveness depends on
how well a message is expressed as well as on its content. If a
communication is ineffective, it may mean the wrong message
was used or the right one was poorly expressed. Creative
strategies are the way marketers translate their messages into a
specific communication. Can be classified as informational or
transformational appeals. An informational appeal elaborates on
product or service attributes or benefits. A transformational
appeal elaborates on a nonproduct-related benefit or image.
Message source - Who should say it - Research has shown that
the source’s credibility is crucial to a message’s acceptance.
The three most often identified sources of credibility are
expertise, trustworthiness, and likability. Expertise is
specialized knowledge the communicator possesses to back the
claim. Trustworthiness describes how objective and honest the
source is perceived to be. Friends are trusted more than
strangers or salespeople, and people who are not paid to endorse
a product are viewed as more trustworthy than people who are
paid. Likability describes the source’s attractiveness, measured
in terms of candor, humor, and naturalness.
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Formulating the communications to achieve the desired

response requires answering three questions: what to say
(message strategy), how to say it (creative strategy), and who
should say it (message source).
Message Strategy In selecting message strategy, management
searches for appeals, themes, or ideas that will tie in to the
brand positioning and help establish points-of-parity or points-
of-difference. Some of these appeals or ideas may relate
directly to product or service performance (the quality,
economy, or value of the brand); others may relate to more
extrinsic considerations (the brand as being contemporary,
popular, or traditional).
Creative Strategy Communications effectiveness depends on
how well a message is expressed as well as on its content. If a
communication is ineffective, it may mean the wrong message
was used or the right one was poorly expressed. Creative
strategies are the way marketers translate their messages into a
specific communication. We can broadly classify them as either
informational or transformational appeals. An informational
appeal elaborates on product or service attributes or benefits. A
transformational appeal elaborates on a nonproduct-related
benefit or image.
Message Source Research has shown that the source’s
credibility is crucial to a message’s acceptance. The three most
often identified sources of credibility are expertise,
trustworthiness, and likability. Expertise is the specialized
knowledge the communicator possesses to back the claim.
Trustworthiness describes how objective and honest the source
is perceived to be. Friends are trusted more than strangers or
salespeople, and people who are not paid to endorse a product
are viewed as more trustworthy than people who are paid.
Likability describes the source’s attractiveness, measured in
terms of candor, humor, and naturalness.
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Creative Strategy
Informational appeals
One-sided vs. two-sided arguments
Transformational appeals
Negative/fear vs. positive appeals
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You might expect one-sided presentations that praise a product
to be more effective than two-sided arguments that also mention
shortcomings. Yet two-sided messages may be more
appropriate, especially when negative associations must be
overcome. Two-sided messages are more effective with more
educated audiences and those who are initially opposed. The
order in which arguments are presented is important. In a one-
sided message, presenting the strongest argument first arouses
attention and interest, important in media where the audience
often does not attend to the whole message. With a captive
audience, a climactic presentation might be more effective. For
a two-sided message, if the audience is initially opposed, start
with the other side’s argument and conclude with your strongest
argument.
Communicators use negative appeals such as fear, guilt, and
shame to get people to do things (brush their teeth, have an
annual health checkup) or stop doing things (smoking, abusing
alcohol, overeating). Fear appeals work best when they are not
too strong, when source credibility is high, and when the
communication promises, in a believable and efficient way, that
the product or service will relieve the fear it arouses. Messages
are most persuasive when they moderately disagree with
audience beliefs. Stating only what the audience already
believes at best just reinforces beliefs, while messages too much

at variance with those beliefs will be rejected. Communicators
also use positive emotional appeals such as humor, love, pride,
and joy. Motivational or “borrowed interest” devices—such as
cute babies, frisky puppies, popular music, and provocative sex
appeals—are often employed to attract attention and raise
involvement with an ad.
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Message Source
Messages delivered by attractive or popular sources can achieve
higher attention and recall
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The most credible source will score high on all three
dimensions—expertise, trustworthiness, and likability. If a
person has a positive attitude toward a source and a message or
a negative attitude toward both, a state of congruity is said to
exist. But what happens if a consumer hears a likable celebrity
praise a brand she dislikes? Charles Osgood and Percy
Tannenbaum believe attitude change will take place that
increases the amount of congruity between the two evaluations.
The consumer will end up respecting the celebrity somewhat
less or the brand somewhat more. If she encounters the same
celebrity praising other disliked brands, she will eventually
develop a negative view of the celebrity and maintain negative
attitudes toward the brands. The principle of congruity implies
that communicators can use their good image to reduce some
negative feelings toward a brand but in the process might lose
some esteem with the audience.
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Marketing Communications Mix Characteristics (2 of 4)
Events and experiences

Relevant
Engaging
Implicit
Public relations and publicity
High credibility
Ability to reach hard-to-find buyers
Dramatization
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Events and Experiences Events and experiences offer many
advantages as long as they have the following characteristics:
1. Relevant—A well-chosen event or experience can be seen as
highly relevant because the consumer is often personally
invested in the outcome.
2. Engaging—Given their live, real-time quality, events and
experiences are more actively engaging for consumers.
3. Implicit—Events are typically an indirect soft sell.
Public Relations and Publicity Marketers tend to underuse
public relations, yet a well-thought-out program coordinated
with the other communications-mix elements can be extremely
effective, especially if a company needs to challenge
consumers’ misconceptions. The appeal of public relations and
publicity is based on three distinctive qualities:
1. High credibility—News stories and features are more
authentic and credible to readers than ads.
2. Ability to reach hard-to-find buyers—Public relations can
reach prospects who prefer to avoid mass media and targeted
promotions.
3. Dramatization—Public relations can tell the story behind a
company, brand, or product.
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Direct and database marketing
Personal
Proactive
Complementary
Personal selling
Customized
Relationship-oriented
Response-oriented
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Direct and Database Marketing The advent of “Big Data” has
given marketers the opportunity to learn even more about
consumers and develop more personal and relevant marketing
communications. Three noteworthy characteristics of direct and
database marketing are:
1. Personal—Personal facts, opinions, and experiences can be
stored in massive databases and incorporated into personal
messages.
2. Proactive—A direct marketing piece can create attention,
inform consumers, and include a call to action.
3. Complementary—Product information can be provided that
helps other marketing communications, especially in terms of e-
commerce. A good catalog might spur online shopping.
Personal Selling Personal selling is the most effective tool at
later stages of the buying process, particularly in building up
buyer preference, conviction, and action. It has three notable
qualities:
1. Customized—The message can be designed to appeal to any
individual.
2. Relationship-oriented—Personal selling relationships can
range from a matter-of-fact selling relationship to a deep
personal friendship.
3. Response-oriented—The buyer is often given personal

choices and encouraged to directly respond.
31
Advertising
Pervasiveness
Amplified expressiveness
Control
Sales Promotion
Ability to be attention-getting
Incentive
Invitation
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Advertising Advertising reaches geographically dispersed
buyers. It can build up a long-term image for a product (Coca-
Cola ads) or trigger quick sales (a Macy’s ad for a weekend
sale).
1. Pervasiveness—Advertising permits the seller to repeat a
message many times. It also allows the buyer to receive and
compare the messages of various competitors. Large-scale
advertising says something positive about the seller’s size,
power, and success.
2. Amplified expressiveness—Advertising provides
opportunities for dramatizing the company and its brands and
products through the artful use of print, sound, and color.
3. Control—The advertiser can choose the aspects of the brand
and product on which to focus communications.
Sales Promotion Companies use sales promotion tools—
coupons, contests, premiums, and the like—to draw a stronger
and quicker buyer response, including short-run effects such as
highlighting product offers and boosting sagging sales. Sales

promotion tools offer three distinctive benefits:
1. Ability to be attention-getting—They draw attention and may
lead the consumer to the product.
2. Incentive—They incorporate some concession, inducement,
or contribution that gives value to the consumer.
3. Invitation—They include a distinct invitation to engage in the
transaction now.
32
Online and social media marketing
Rich
Interactive
Up to date
Mobile marketing
Timely
Influential
Pervasive
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Online and Social Media Marketing Online marketing and
messages can take many forms to interact with consumers when
they are in active search mode or just browsing and surfing
online for something to do. They share three characteristics:
1. Rich—Much information or entertainment can be provided—
as much or as little as a consumer might want.
2. Interactive—Information can be changed or updated
depending on the person’s response.
3. Up to date—A message can be prepared very quickly and
diffused through social media channels.
Mobile Marketing Increasingly, online marketing and social
media rely on mobile forms of communication and smart phones
or tablets. Three distinguishing characteristics of mobile

marketing are:
1. Timely—Mobile communications can be very time-sensitive
and reflect when and where a consumer is.
2. Influential—Information received or obtained via a smart
phone can reach and influence consumers as they are making a
purchase decision.
3. Pervasive—Consumers typically carry their smart phones
everywhere, so mobile communications are at their fingertips.
33
Select the communications channels
Personal communications - Roper, BM study found that one
influential person WOM affects buying of 2 people
Nonpersonal channels - mass communications channels (events;
art museums, zoos, Olympics
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Personal communications channels let two or more persons
communicate face to face or person to audience through a
phone, surface mail, or e-mail. They derive their effectiveness
from individualized presentation and feedback and include
direct marketing, personal selling, and word of mouth. We can
draw a further distinction between advocate, expert, and social
communications channels. Advocate channels consist of
company salespeople contacting buyers in the target market.
Expert channels consist of independent experts making

statements to target buyers. Social channels consist of
neighbors, friends, family members, and associates talking to
target buyers.
Nonpersonal channels are communications directed to more than
one person and include advertising, sales promotions, events
and experiences, and public relations.
Integration of Communications Channels Although personal
communication is often more effective than mass
communication, mass media might be the major means of
stimulating it. Mass communications affect personal attitudes
and behavior through a two-step process. Ideas often first flow
from radio, television, and print to opinion leaders or consumers
highly engaged with media and then from these influencers to
less media-involved population groups.
34
Setting the Marketing Communications Mix
Buyer-readiness stage
Figure 19.4 Cost-Effectiveness of Three Different
Communication Tools at Different Buyer-Readiness Stages
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Communication tools vary in cost-effectiveness at different
stages of buyer readiness. Figure 19.4 shows the relative cost-
effectiveness of three communication tools. Advertising and
publicity play the most important roles in the awareness-
building stage. Customer comprehension is primarily affected
by advertising and personal selling. Customer conviction is
influenced mostly by personal selling. Personal selling and sales
promotion are most helpful in closing the sale. Reordering is
also affected mostly by personal selling and sales promotion

and somewhat by reminder advertising. Note too that online
activities can affect virtually any stage.
35
Measuring Communication Results
Figure 19.5 Current Consumer States for Two Brands
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After implementing the communications plan, the
communications director must measure its impact. Members of
the target audience are asked whether they recognize or recall
the message, how many times they saw it, what points they
recall, how they felt about the message, and what are their
previous and current attitudes toward the product and the
company. The communicator should also collect behavioral
measures of audience response, such as how many people
bought the product, liked it, and talked to others about it.
Figure 19.5 provides an example of good feedback
measurement. We find 80 percent of the consumers in the total
market are aware of brand A, 60 percent have tried it, and only
20 percent who tried it are satisfied. This indicates that the
communications program is effective in creating awareness, but
the product fails to meet consumer expectations. In contrast, 40
percent of the consumers in the total market are aware of brand
B and only 30 percent have tried it, but 80 percent of them are
satisfied. In this case, the communications program needs to be
strengthened to take advantage of the brand’s potential power.
36
Managing Integrated Marketing Communications (1 of 2)
Integrated marketing communications (IMC)
“A planning process designed to assure that all brand contacts

received by a customer or prospect for a product, service, or
organization are relevant to that person and consistent over
time”
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When done well, this planning process evaluates the strategic
roles of a variety of communications disciplines and combines
them seamlessly to provide clarity, consistency, and maximum
impact of messages. The wide range of communication tools,
messages, and audiences available to marketers makes it
imperative that companies move toward integrated marketing
communications. They must adopt a 360-degree view of
consumers to fully understand all the different ways
communications can affect behavior.
37
Managing Integrated Marketing Communications (2 of 2)
Coordinating media and implementing IMC
Coverage
Contribution
Cost
Commonality
Conformability
Complementarity
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Media coordination can occur across and within media types,
but marketers should combine personal and nonpersonal
communications channels through multiple-vehicle, multiple-
stage campaigns to achieve maximum impact and increase
message reach and impact.

Integrated marketing communications can produce stronger
message consistency and help build brand equity and create
greater sales impact. In assessing the collective impact of an
IMC program, the marketer’s overriding goal is to create the
most effective and efficient communications program possible.
The following “six Cs” criteria can help determine whether
communications are truly integrated.
Coverage. Coverage is the proportion of the audience reached
by each communication option employed as well as the amount
of overlap among those options.
Contribution. Contribution is the inherent ability of a marketing
communication to create the desired response and
communication effects from consumers in the absence of
exposure to any other communication option.
Commonality. Commonality is the extent to which common
associations are reinforced across communication options; that
is, the extent to which different communication options share
the same meaning.
Complementarity. Communication options are often more
effective when used in tandem. Complementarity relates to the
extent to which different associations and linkages are
emphasized across communication options.
Conformability. In any integrated communication program, the
message will be new to some consumers and not to others.
Conformability refers to the extent to which a marketing
communication option works for such different groups of
consumers.
Cost. Marketers must evaluate marketing communications on all
these criteria against their cost to arrive at the most effective
and most efficient communications program.
38
IMC-Development and Management of the Mix; Advertising,
Sales Promotion, Events, Public Relations-Media Planning

Session 10
‹#›
Developing and Managing an Advertising Program (1 of 2)
Figure 20.1 The Five Ms of Advertising
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Advertising can be a cost-effective way to disseminate
messages, whether to build a brand preference or to educate
people. In developing an advertising program, marketing
managers must always start by identifying the target market and
buyer motives. Then they can make the five major decisions
known as “the five Ms”:
1. Mission: What are our advertising objectives?
2. Money: How much can we spend and how do we allocate our
spending across media types?
3. Message: What should the ad campaign say?
4. Media: What media should we use?
5. Measurement: How should we evaluate the results?
These decisions are summarized in Figure 20.1.
2
Developing and Managing an Advertising Program (2 of 2)
Setting the advertising objectives

Deciding on the advertising budget
Developing the advertising campaign
Choosing media
Evaluating advertising effectiveness
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An advertising objective (or goal) is a specific communications
task and achievement level to be accomplished with a specific
audience in a specific period of time. We classify advertising
objectives according to whether they aim to inform, persuade,
remind, or reinforce. These goals correspond to stages in the
hierarchy-of-effects model discussed in Chapter 19.
Informative advertising aims to create brand awareness and
knowledge of new products or new features of existing
products. Consumer packaged goods companies like Colgate,
General Mills, and Unilever will often focus on key product
benefits.
Persuasive advertising aims to create liking, preference,
conviction, and purchase of a product or service. Some
persuasive advertising is comparative advertising, which
explicitly compares the attributes of two or more brands.
Comparative advertising works best when it elicits cognitive
and affective motivations simultaneously and when consumers
are processing advertising in a detailed, analytical mode.
Reminder advertising aims to stimulate repeat purchase of
products and services. Expensive, four-color Coca-Cola ads in
magazines remind people to purchase Coca-Cola.
Reinforcement advertising aims to convince current purchasers
they made the right choice. Automobile ads often depict

satisfied customers enjoying special features of their new car.
3
Setting the Advertising Objectives
Informative - Knowledge, awareness - CPG
Persuasive - Liking, preference, conviction - comparative - why
we’re better!
Reminder - stimulate repeat purchase (4-pg Coke)
Reinforcement - Made the right choice (cars)
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An advertising objective (or goal) is a specific communications
task and achievement level to be accomplished with a specific
audience in a specific period of time. We classify advertising
objectives according to whether they aim to inform, persuade,
remind, or reinforce. These goals correspond to stages in the
hierarchy-of-effects model discussed in Chapter 19.
Informative advertising aims to create brand awareness and
knowledge of new products or new features of existing
products. Consumer packaged goods companies like Colgate,
General Mills, and Unilever will often focus on key product
benefits.
Persuasive advertising aims to create liking, preference,
conviction, and purchase of a product or service. Some
persuasive advertising is comparative advertising, which
explicitly compares the attributes of two or more brands.
Comparative advertising works best when it elicits cognitive
and affective motivations simultaneously and when consumers
are processing advertising in a detailed, analytical mode.
Reminder advertising aims to stimulate repeat purchase of
products and services. Expensive, four-color Coca-Cola ads in

magazines remind people to purchase Coca-Cola.
Reinforcement advertising aims to convince current purchasers
they made the right choice. Automobile ads often depict
satisfied customers enjoying special features of their new car.
4
Deciding on the Advertising Budget (1 of 2)
Stage in the product life cycle - New, medium, old
Market share and consumer base
Competition and clutter
Advertising frequency
Product substitutability - commodity product - beer, banks,
credit cards - heavy advertising for unique image
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Although advertising is treated as a current expense, part of it is
really an investment in building brand equity and customer
loyalty. Here are five specific factors to consider when setting
the advertising budget:
1. Stage in the product life cycle—New products typically merit
large advertising budgets to build awareness and gain consumer
trial. Established brands usually are supported by lower
advertising budgets, measured as a ratio to sales.
2. Market share and consumer base—High-market-share brands
usually require less advertising expenditure as a percentage of
sales to maintain share. Building share by increasing market
size requires larger expenditures.
3. Competition and clutter—In a market with a large number of
competitors and high advertising spending, a brand must
advertise more heavily to be heard. Even advertisements not
directly competitive to the brand create clutter and a need for
heavier advertising.
4. Advertising frequency—The number of repetitions needed to

put the brand’s message across to consumers has an obvious
impact on the advertising budget.
5. Product substitutability—Brands in less-differentiated or
commodity-like product classes (beer, soft drinks, banks, and
airlines) require heavy advertising to establish a unique image.
5
Developing the Advertising Campaign (1 of 7)
Message generation and evaluation
Focuses on one or two selling propositions
Positioning of an ad—what it attempts to convey about the
brand (market research/insights)
Creative brief
Key message
Target Audience
Communication Message - to do, to know, to believe
Key brand benefits
Supports brand promise
Supports Brand promise
Open sourcing/crowdsourcing
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Advertisers are always seeking “the big idea” that connects with
consumers rationally and emotionally, distinguishes the brand
from competitors, and is broad and flexible enough to translate
to different media, markets, and time periods. Fresh insights are
important for creating unique appeals and position.
A good ad normally focuses on one or two core selling
propositions. As part of refining the brand positioning, the
advertiser should conduct market research to determine which
appeal works best with its target audience and then prepare a
creative brief, typically one or two pages. This is an elaboration

of the positioning strategy and includes considerations such as
key message, target audience, communications objectives (to
do, to know, to believe), key brand benefits, supports for the
brand promise, and media.
How many ad themes should the advertiser create before
choosing one? The more themes explored, the higher the
probability of finding an excellent one. Fortunately, an ad
agency’s creative department can inexpensively compose many
alternatives in a short time by drawing still and video images
from computer files. Marketers can also cut the cost of creative
dramatically by using consumers as their creative team, a
strategy sometimes called “open sourcing” or “crowdsourcing.”
6
Creative development and execution
Advertising medium (television, print, and radio advertising
media)- how effective is each?
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The ad’s impact depends not only on what it says but, often
more important, on how it says it. Creative execution can be
decisive. Every advertising medium has advantages and
disadvantages. Here, we briefly review television, print, and
radio advertising media.
7
Role of Traditional Advertising
Goal of traditional advertising is to turn the consumer’s mind
towards the advertised brand.
It does this by raising awareness of the brand among the target
audience and by building positive attitudes towards the brand,

How does traditional advertising compare to digital and social
advertising?
How is it the same?
How is it different?
Which is better and why?
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8
Forms of Traditional Advertising
Mass Media
Local Media
Hyper Local Media
Trade Media (B2B)
Financial Media
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9
Television ads
Vividly demonstrates product attributes
Persuasively explains consumer benefits
Portrays usage imagery/brand personality
Product/brand can be overlooked
Creates clutter
Easy to ignore or forget ads

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Television is generally acknowledged as the most powerful
advertising medium and reaches a broad spectrum of consumers
at low cost per exposure. Properly designed and executed TV
ads can still be a powerful marketing tool that improves brand
equity, sales, and profits. In the highly competitive insurance
category, advertising can help a brand to stand out.
10
Print ads
Provide detailed product information
Flexibility in design and placement
Can be fairly passive
Newspapers popular for local ads
In steady decline
Poor reproduction quality
Short shelf life
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Researchers report that the picture, headline, and copy in print
ads matter in that order. The picture must draw attention. The
headline must reinforce the picture and lead the person to read
the copy. The copy must be engaging and the brand’s name
prominent.
11
Print ad evaluation criteria
Is the message clear at a glance?
Is the benefit in the headline?
Does the illustration support the headline?
Does the first line of the copy support or explain the headline

and illustration?
Is the ad easy to read and follow?
Is the product easily identified?
Is the brand or sponsor clearly identified?
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In judging the effectiveness of a print ad, marketers should be
able to answer yes to these questions about its execution.
12
Radio ads
Occurs in the car and out of home
Main advantage is flexibility
Ads are relatively inexpensive
Can be schedule to air quickly
Effective when run in morning
Can be extremely creative
Can tap into the listener’s imagination
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Radio is a pervasive medium: Ninety-three percent of all U.S.
citizens age 12 and older listen daily and for about 20 hours a
week on average, numbers that have held steady in recent years.
13
Legal and social issues
Advertisers must not make false claims
Must not use false demonstrations
Must not create ads with the capacity to deceive
Must avoid bait-and-switch advertising

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Radio is a pervasive medium: Ninety-three percent of all U.S.
citizens age 12 and older listen daily and for about 20 hours a
week on average, numbers that have held steady in recent years.
14
Advertising Terminology
Reach & Frequency - Reach and frequency are terms generally
used when planning advertising campaigns.
Reach - the number of people you touch with your marketing
message or the number of people that are exposed to your
message.
Frequency is the number of times you touch each person with
your message.
Gross Rating Point (GRP) - Gross rating point(GRP) is a
measure of the size of an advertising campaign by a specific
medium or schedule. It does not measure the size of the
audience reached. ... Target rating points express the same
concept, but with regard to a more narrowly defined target
audience
Cost per thousand (CPM)-Cost per thousand (CPM) is a
marketing term used to denote the price of 1,000 advertisement
impressions on one webpage. If a website publisher charges
$2.00 CPM, that means an advertiser must pay $2.00 for every
1,000 impressions of its ad. The "M" in CPM represents the
Roman numeral for 1,000
Cost per click (CPC)- Pay-per-click(PPC), also known as cost
per click(CPC), is an internet advertising model used to direct
traffic to websites, in which an advertiser pays a publisher
(typically a website owner or a network of websites) when the
ad is clicked

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15
Choosing Media (1 of 7)
Reach, frequency, and impact
Figure 20.2 Relationship among Trial, Awareness, and the
Exposure Function
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Media selection is finding the most cost-effective media to
deliver the desired number and type of exposures to the target
audience. The advertiser seeks a specified advertising objective
and response from the target audience—for example, a target
level of product trial. This level depends on, among other
things, level of brand awareness. Suppose the rate of product
trial increases at a diminishing rate with the level of audience
awareness, as shown in Figure 20.2(a). If the advertiser seeks a
product trial rate of T *, it will be necessary to achieve a brand
awareness level of A*.
The next task is to find out how many exposures, E *, will
produce a level of audience awareness of A*. The effect of
exposures on audience awareness depends on the exposures’
reach, frequency, and impact:
Reach (R). The number of different persons or households
exposed to a particular media schedule at least once during a
specified time period.
Frequency (F). The number of times within the specified time

period that an average person or household is exposed to the
message.
Impact (I). The qualitative value of an exposure through a given
medium (thus, a food ad should have a higher impact in Bon
Appetit than in Fortune magazine).
Figure 20.2(b) shows the relationship between audience
awareness and reach. Audience awareness will be greater the
higher the exposures’ reach, frequency, and impact. There are
important trade-offs here. Suppose the planner has an
advertising budget of $1,000,000 and the cost per thousand
exposures of average quality is $5. This means 200,000,000
exposures ($1,000,000 ÷ [$5/1,000]). If the advertiser seeks an
average exposure frequency of 10, it can reach 20,000,000
people (200,000,000 ÷ 10) with the given budget. But if the
advertiser wants higher-quality media costing $10 per thousand
exposures, it will be able to reach only 10,000,000 people
unless it is willing to lower the desired exposure frequency.
16
Total number of exposures (E)
Reach x average frequency: E = R × F Gross Rating Points
(GRP)
80% of homes with avg F of 3 GRP 9s 80x3+240
Weighted number of exposures (WE)
WE = R × F × I(average impact)
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The relationship between reach, frequency, and impact is
captured in the following concepts:

Total number of exposures (E). This is the reach times the
average frequency; that is, E = R X F, also called the gross
rating points (GRP). If a given media schedule reaches 80
percent of homes with an average exposure frequency of 3, the
media schedule has a GRP of 240 (80 X 3). If another media
schedule has a GRP of 300, it has more weight, but we cannot
tell how this weight breaks down into reach and frequency.
Weighted number of exposures (WE). This is the reach times
average frequency times average impact, that is WE = R X F X
I.
Reach is most important when launching new products, flanker
brands, extensions of well-known brands, and infrequently
purchased brands or when going after an undefined target
market. Frequency is most important where there are strong
competitors, a complex story to tell, high consumer resistance,
or a frequent-purchase cycle.
17
Choosing among major media types
Table 20.1 Profiles of Major Media
TypesMediumAdvantagesLimitationsNewspapersFlexibility;
timeliness; good local market coverage; broad acceptance; high
believabilityShort life; poor reproduction quality; small “pass-
along” audienceTelevisionCombines sight, sound, and motion;
appealing to the senses; high attention; high reachHigh absolute
cost; high clutter; fleeting exposure; less
audience selectivityDirect mailAudience selectivity; flexibility;
no ad competition within the same medium;
personalizationRelatively high cost; “junk mail”
imageRadioMass use; high geographic and demographic
selectivity; low costAudio presentation only; lower attention
than television; nonstandardized rate structures; fleeting
exposure

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The media planner must know the capacity of the major
advertising media types to deliver reach, frequency, and impact.
The major advertising media along with their costs, advantages,
and limitations are profiled in Table 20.1. Media planners make
their choices by considering factors such as target audience
media habits, product characteristics, message requirements,
and cost.
18
Place advertising options - OOH - creative, unexpected
Billboards
Public spaces
Product placement - movies, TV, Netflix, Amazon, HBO
Point of Purchase - shopping carts, aisles, shelf-talkers,
sampling, instant coupon machines
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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. Popular options include billboards, public spaces, product
placement, and point of purchase.
Billboards use colorful, digitally produced graphics,
backlighting, sounds, movement, and unusual— even 3D—
images. Public spaces: ads are appearing in such unconventional
places as movie screens, airplane bodies, and fitness equipment,
as well as in classrooms, sports arenas, office and hotel
elevators, and other public places. Product placement: marketers

pay $100,000 to $500,000 so their products will make cameo
appearances in movies and on television. There are many ways
to communicate at the point of purchase (P-O-P), including ads
on shopping carts, cart straps, aisles, and shelves and in-store
demonstrations, live sampling, and instant coupon machines.
19
Evaluating alternate media
Need to demonstrate reach/effectiveness
Selecting specific media vehicles
Media planner must choose most cost-effective vehicles and
must estimate audience size, composition, media cost, and cost
per thousand persons reached
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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. Outdoor advertising, for example, is
often called the “15-second sell.” It’s more effective at
enhancing brand awareness or brand image than at creating new
brand associations.
Media planners are using more sophisticated measures of
effectiveness and employing them in mathematical models to
arrive at the best media mix. Many advertising agencies use
software programs to select the initial media and make
improvements based on subjective factors.
20
Selecting media timing and allocation
Figure 20.3 Classification of Advertising Timing Patterns

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In choosing media, the advertiser makes both a macroscheduling
and a microscheduling decision. The macroscheduling decision
relates to seasons and the business cycle. Suppose 70 percent of
a product’s sales occur between June and September. The firm
can vary its advertising expenditures to follow the seasonal
pattern, to oppose the seasonal pattern, or to be constant
throughout the year. The microscheduling decision calls for
allocating advertising expenditures within a short period to
obtain maximum impact. Suppose the firm decides to buy 30
radio spots in September. The left side of Figure 20.3 shows
that advertising messages for the month can be concentrated
(“burst” advertising), dispersed continuously throughout the
month, or dispersed intermittently. The top side shows they can
be beamed with a level, rising, falling, or alternating frequency.
The chosen pattern should meet the marketer’s communications
objectives and consider three factors. Buyer turnover expresses
the rate at which new buyers enter the market; the higher this
rate, the more continuous the advertising should be. 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. 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.
21
Selecting media timing and allocation
Continuity - evenly distributed exposures
Concentrated - Focused on certain time period - heavy up

Flighting - concentrated, none, more advertising (funding
limited)
Pulsing - continuous advertising at low levels, followed by
heavier levels (audience exposed but lower cost)
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In launching a new product, the advertiser must choose among
continuity, concentration, flighting, and pulsing.
Continuity means exposures appear evenly throughout a given
period. Generally, advertisers use continuous advertising in
expanding markets, with frequently purchased items, and in
tightly defined buyer categories.
Concentration calls for spending all the advertising dollars in a
single period. This makes sense for products with one selling
season or related holiday.
Flighting calls for advertising during a period, followed by a
period with no advertising, followed by a second period of
advertising activity. It is useful when funding is limited, the
purchase cycle is relatively infrequent, or items are seasonal.
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. Those who favor pulsing
believe the audience will learn the message more thoroughly
and at a lower cost to the firm.
22
Advertising Pretest Research Techniques
Table 20.2 Advertising Pretest Research TechniquesFor Print
Ads

Starch and Gallup & Robinson Inc. are two widely used print
pre-testing services. Test ads are placed in magazines, which
are then circulated to consumers. These consumers are
contacted later and interviewed. Recall and recognition tests are
used to determine advertising effectiveness.For Broadcast Ads
In-home tests: A video is taken or downloaded into the homes
of target consumers, who then view the commercials.
Trailer tests: In a trailer in a shopping center, shoppers are
shown the products and given an opportunity to select a series
of brands. They then view commercials and are given coupons
to be used in the shopping center. Redemption rates indicate
commercials’ influence on purchase behavior.
Theater tests: Consumers are invited to a theater to view a
potential new television series along with some commercials.
Before the show begins, consumers indicate preferred brands in
different categories; after the viewing, consumers again choose
preferred brands. Preference changes measure the commercials’
persuasive power.
On-air tests: Respondents are recruited to watch a program on a
regular TV channel during the test commercial or are selected
based on their having viewed the program. They are asked
questions about commercial recall.
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23
Evaluating Advertising Effectiveness
Communication-effect research
In-home tests, trailer tests, theater tests, on-air tests
Sales-effect research
Historical approach
Experimental data
Recognition Studies (lgo, tagline, ad

Recall Studies - unaided, spontaneous prompted by brand
category
Figure 20.4 Formula for Measuring Different Stages in the Sales
Impact of Advertising
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Most advertisers try to measure the communication effect of an
ad—that is, its potential impact on awareness, knowledge, or
preference. They would also like to measure its sales effect.
Communication-effect research, called copy testing, seeks to
determine whether an ad is communicating effectively.
Marketers should perform this test both before an ad is put into
media and after it is printed or broadcast. (Table 20.2 – see
slide 23) describes some specific advertising pretest research
techniques.
The sales impact is easiest to measure in direct marketing
situations and hardest in brand or corporate image-building
advertising. Companies want to know whether they are
overspending or underspending on advertising. One way to
answer this question is to work with the formulation shown in
Figure 20.4. A company’s share of advertising expenditures
produces a share of voice (proportion of company advertising of
that product to all advertising of that product) that earns a share
of consumers’ minds and hearts and, ultimately, a share of
market.
Researchers can measure sales impact with the historical
approach, which uses advanced statistical techniques to
correlate past sales to past advertising expenditures. Other
researchers use experimental data to measure advertising’s sales
impact.
24

Defining the Budget
Rights Reserved
Objective-and-Task Method
Establish market share goal
Select % of market reached by advertising
Estimate % of prospects who should try brand
Calculate ad impressions per 1% trial rate
Find gross rating points to be purchased
Calculate budget for cost of gross rating point
Rights Reserved
1. Establish the market share goal. The company estimates 50
million potential users and sets a target of attracting 8 percent
of the market—that is, 4 million users.
2. Select the percentage of the market that should be reached by
advertising. The advertiser hopes to reach 80 percent of the
market (40 million prospects) with its advertising message.
3. Estimate the percentage of aware prospects who should be
persuaded to try the brand. The advertiser would be pleased if
25 percent of aware prospects (10 million) tried Sunburst. It
estimates that 40 percent of all triers, or 4 million people, will
become loyal users. This is the market share goal.
4. Calculate the number of advertising impressions per 1
percent trial rate. The advertiser estimates that 40 advertising
impressions (exposures) for every 1 percent of the population
will bring about a 25 percent trial rate.
5. Find the number of gross rating points to be purchased. A
gross rating point is one exposure to 1 percent of the target
population. Because the company wants to achieve 40 exposures
to 80 percent of the population, it will want to buy 3,200 gross

rating points.
6. Calculate the necessary advertising budget on the basis of the
average cost of buying a gross rating point. Suppose it costs an
average of $3,277 to expose 1 percent of the target population
to one impression. Then 3,200 gross rating points will cost
$10,486,400 (= $3,277 X 3,200) in the introductory year.
The objective-and-task method has the advantage of requiring
management to spell out its assumptions about the relationship
among dollars spent, exposure levels, trial rates, and regular
usage.
26
Marketing Budget
Rights Reserved
27
How to Build a Marketing Plan
Session 8
‹#›

Putting it Under the Microscope
‹#›
2
Strategic Marketing Plan
Why Bother?
Define reasons!
‹#›
Reasons for marketing plan
3
Why Bother? Helps you to:
Examine internal and external situation and position in the
market
Sets a direction for a planning process to help achieve and
contribute to mission and business goals of the organization
Forces marketers to consider wants and needs of target
consumers

Sets stage for current and long-range planning - evaluate
various scenarios
‹#›
4
Defines business revenue and profitability
Establishes accountability
Helps marketers evaluate results to revise objectives and
strategies
‹#›
Strategic Marketing Plan - Goals
Goals of A Strategic Marketing Plan
Eight Predictors of Strategic Marketing Plan Success
Aligns with organizational, business unit and product missions
Assesses the current business environment and competition
Addresses the needs of consumers in targeted markets
Identifies current marketing projects, organization’s strategic
business units (SBU) and funding needs
Clarifies strategic goals and provides a logical pathway
Assesses Growth opportunities
Prioritizes tactical objectives and due dates
Includes a method for measuring and evaluating success.

‹#›
6
15 Steps to Developing A Strategic Marketing Plan
Mission – Set of values that guides your business
Set goals and objectives – what do you want to accomplish?
Analyze your situation – Overview of marketplace, competitive
situation, micro/macro,SWOT
Define your financial goals – projected revenue
Primary or Secondary Research
Who’s your target audience/segments
‹#›
15 Steps to Developing A Strategic Marketing Plan
7. What’s your unique product positioning statement?
8. Describe your product – specific attributes
9. What’s the pricing (define based on value and competition)
10.How is product distributed? Where is it sold?
11. Map Your Message
12. Define Your Strategy
13. Outline your tactics – what is your marketing
communications plan?
14. Make a timeline
15. Measure the effectiveness of your marketing strategies

‹#›
Marketing Planning Process
Executive Summary
Brief overview of the goals, marketing rationale and main
elements of your plan
Provides synopsis of what you intend to accomplish, why,
where and when
May want to write this section last so it reflects the details of
your plan and you can summarize high points and
differentiation that makes your plan a success
‹#›
9
Executive Summary
Tips for Writing the Marketing Plan Executive Summary
Focus on providing a summary. The business plan itself will
provide the details and whether product managers or investors,
the readers of your plan don’t want to have their time wasted.
Keep your language strong and positive. Don’t weaken your
executive summary with weak language. Instead of writing,
“Dogstar Industries might be in an excellent position to win
government contracts”, write “Dogstar Industries will be in an
excellent position...”
Keep it short - no more than two pages long. Resist the
temptation to pad your business plan’s executive summary with
details (or pleas). The job of the executive summary is to
present the facts and entice your reader to read the rest of the

business plan, not tell him everything.
Polish your executive summary. Read it aloud. Does it flow or
does it sound choppy? Is it clear and succinct? Once it sounds
good to you, have someone else who knows nothing about your
business review make suggestions for improvement.
Tailor it to your audience. If the purpose of your plan is to
launch a new product,, focus on the opportunity your product
provides for consumers in the market place and why the
opportunity is special. If the purpose of your business plan is to
get a small business loan, focus on highlighting what traditional
lenders want to see, such as management's experience in the
industry and the fact that you have both collateral and strategies
in place to minimize the lender's risk.
‹#›
10
Sigmund’s Gourmet Pizza
Executive Summary
Sigmund's Gourmet Pasta will be the leading gourmet pasta
restaurant in Eugene, OR with a rapidly developing consumer
brand and growing customer base. The signature line of
innovative, premium, pasta dishes include pesto with smoked
salmon, pancetta and peas linguini in an alfredo sauce, and
fresh mussels and clams in a marinara sauce. Sigmund's
Gourmet Pasta also serves distinct salads, desserts, and
beverages.

‹#›
11
Executive Summary Example
Sigmund's Gourmet Pasta will reinvent the pasta experience for
individuals, families, and take out customers with discretionary
income by selling high quality, innovative products at a
reasonable price, designing tasteful, convenient locations, and
providing industry-benchmark customer service.
In order to grow at a rate consistent with our objectives,
Sigmund's is offering an additional $500,000 in equity.
Existing members will be given the first option to subscribe to
the additional equity to allow each of them to maintain their
percentage of ownership. The portion not subscribed by
existing members will be available for prospective new
investors.*
*Case HIstory from MPlan - an online resource for marketing
plan templates
http://www.mplans.com/pasta_restaurant_marketing_plan/situati
on_analysis_fc.php
‹#›
12
Situational Analysis

‹#›
13
What it needs to include:
Describe mission and purpose of your product; current climate,
culture
List current challenges and goals you seek to achieve
Address current business issues, marketing projects and needs
Describe products and services you will bring to market,
explain purpose of effort and breakthrough outcome
Define current and desired positioning of the company.
Describe who will buy the product and on what assumptions
they will base their decisions. How will plan impact
positioning?
Where will you place product or service
Describe value proposition and differentiators - how is product
unique?
How will you address the market; price, special features,
access channels or other points of differentiation from
competition.
‹#›
14
Scanning the Environment
Gather information about your product and the market you sell

it in, including its size, the competitors, and the customers who
purchase it
Audit or scanning of the current marketing/business
environment
external (uncontrollable factors)
internal (controllable factors)
‹#›
15
The External Audit
Analysis of the industry environment - affecting organization’s
product market segments and macro-environment - impacts
society as a whole
Industry Analysis
Gather information on relevant history size, scope of industry
Where is industry heading, what are driving forces?
What are the relevant economics of the industry to make profit?
What are strategic problems and issues that face the industry?
Includes:
1. Market Review
2. Competitive Review
3. Distribution channels and intermediaries
4. Customers(end users)
5.Supply
‹#›

16
The External Audit - Market Review
Market Review - Factors that affect demand for product
Analysis of current marketing situation
Industry trends; historic and current innovations and how
impact plans
What similar products are in the market, what is needed and
how you know it - cite sources
Note geographic markets, target market segments, relevant
niches
Industry leaders overview
Describe opportunities
Current market size
Volume - units sold
Value - value of units sold
Size - size of market segments
Estimation of demand
‹#›
17
Internal Audit
Analysis of organization, marketing, organizational structure
and culture
Determine strengths and weaknesses relative to competition
Has organization been meeting proposed sales targets?
Has organization reached percentage of market share and
profitability levels as defined by corporate strategy?

‹#›
18
Situational Analysis - Example
Sigmund's Gourmet Pasta is close to entering their second
year of operation. The restaurant has been well received, and
marketing is now critical to its continued success and future
profitability. The store offers an extensive offering of gourmet
pastas. The basic market need is to offer individuals, families,
and take out customers fresh, creative, attractive, pasta dishes,
salads and desserts. Sigmund's uses homemade pasta, fresh
vegetables, and premium meats and cheeses.
Market Summary
Sigmund's Gourmet Pasta possess good information about the
market and knows a great deal about the common attributes of
our most prized and loyal customers. Sigmund's Gourmet Pasta
will leverage this information to better understand who is
served, their specific needs, and how Sigmund's can better
communicate with them.
Create or edit
this chart
Market Analysis
‹#›
19

Market Analysis - Sigmund Pizza
Market Analysis20112012201320142015Potential
CustomersGrowthCAGRIndividuals8%12,45713,45414,53015,6
9216,9478.00%Families9%8,9749,78210,66211,62212,6689.00
%Take
out10%24,57427,03129,73432,70735,97810.00%Total9.27%46,
00550,26754,92660,02165,5939.27%
‹#›
20
Market Demographics
The profile for Sigmund's Gourmet Pasta's customer consists of
the following geographic, demographic, and behavior factors:
Geographics
• Our immediate geographic target is the city of Eugene with
a population of 130,00.
• A 15 mile geographic area is in need of our services.
• The total targeted population is estimated at 46,000.
Demographics
• Male and female.
• Ages 25-50, this is the segment that makes up 53% of the
Eugene market according to the Eugene Chamber of Commerce.
• Young professionals who work close to the location.
• Yuppies.
• Have attended college and/or graduate school.
• An income over $40,000.
• Eat out several times a week.
• Tend to patronize higher quality restaurants.
• Are cognizant about their health.

Behavior Factors
• Enjoy a high quality meal without the mess of making it
themselves.
‹#›
21
Market Needs
Sigmund's Gourmet Pasta is providing its customers with a wide
selection of high-quality pasta dishes and salads that are unique
and pleasing in presentation, offer a wide selection of health
conscious choices, and utilizes top-shelf ingredients. Sigmund's
Gourmet Pasta seeks to fulfill the following benefits that are
important to their customers.
• Selection. A wide choice of pasta and salad options.
• Accessibility. The patron can gain access to the restaurant
with minimal waits and can choose the option of dine in or take
out.
• Customer service. The patron will be impressed with the
level of attention that they receive.
•Competitive pricing. All products/services will be
competitively priced relative to comparable high-end
pasta/Italian restaurants
‹#›
22

Market Trends
The market trend for restaurants is headed toward a more
sophisticated customer. The restaurant patron today relative to
yesterday is more sophisticated in a number of different ways.
• Food quality. The preference for high-quality ingredients is
increasing as customers are learning to appreciate the
qualitative differences.
• Presentation/appearance. As presentation of an element of
the culinary experience becomes more pervasive, patrons are
learning to appreciate this aspect of the industry.
• Health consciousness. As Americans in general are more
cognizant of their health, evidenced by the increase in
individuals exercising and health club memberships, patrons are
requesting more healthy alternatives when they eat out. They
recognize that an entree can be quite tasty, and reasonably good
for you.
• Selection. People are demanding a larger selection of foods,
they are no longer accepting a limited menu. The reason for this
trend is that within the last couple of years the restaurant
offerings have increased, providing customers with new
choices. Restaurant patrons no longer need to accept a limited
number of options. With more choices, patrons have become
more sophisticated. This trend is intuitive as you can observe a
more sophisticated restaurant patron in larger city markets such
as Seattle, Portland or New York where there are more choices
available.
‹#›
23

Market Growth- Sigmund Pizza
Market Growth
In 1999, the global pasta market reached $13 billion dollars.
Pasta sales are estimated to grow by at least 5.7% for the next
few years. This growth can be attributed to several different
factors.
Appreciation for health conscious food. While not all pasta is
"good for you," particularly the cream based sauces, pasta can
be very tasty yet health conscious at the same time. Pasta is
seen as a healthy food because of its high percentage of
carbohydrates relative to fat.
increase in the number of hours our demographic is working.
Over the last five years the number of hours spent at work of
our archetype customer has significantly increased. As the
number of work hours increases, there is a high correlation of
people that eat out at restaurants.
This is intuitively explained by the fact that with a limited
number of hours available each day, people have less time to
prepare their meals and eating out is one way to maximize their
time.
‹#›
24
Market Growth - Sigmund Pizza

‹#›
25
Collecting Data
Review company mission statement
Review existing marketing and business documents
Review and elaborate on impact of prior plans
Study your website and competitors
Review press rooms to assess current issues and activities
Interview others in industry, research articles on industry
What has been done, worked, didn’t work
Talk to consumers who use their product
Get Feedback
Research business/marketing journals
Investigate existing research
‹#›
26
The External Audit - Competitive Review
2. Competitive Review - Forces analysis of how your product is
performing versus competition and defining similarities and
differences
Defines your position of advantage or disadvantage versus
competition and pushes for effective strategy development.
Assess:
Key competitor’s strategies; past, present, future - their
mission, target markets, marketing mix, budget, share, growth
rate, profitability

Analyze competitor performance; sales, market share, growth,
profitability, ROI, profit margins, net profits
Analyze their marketing strategy
Assess competitors strengths and weaknesses (your
opportunities/threats)
Assess impact on your organization
Assess competitive advantage
‹#›
27
Competition Review - Sigmund’s Pizza
National Competition
• Pastabilities: offers consumers their choice of noodles,
sauces, and ingredients, allowing the customer to assemble their
dish as they wish. Food quality is average.
• PastaFresh: has a limited selection but the dishes are
assembled with high-quality ingredients. The price point is
high, but the food is quite good.
• Pasta Works: offers pasta that is reasonably fresh, reasonably
innovative and at a lower price point. The company was sold a
few years ago, and consequently the direction of management
has been stagnant lately and has resulted in excessive employee
turnover.
• Perfect Pasta: has medium-priced pasta dishes that use
average ingredients, no creativity, and less than average store
atmosphere. Sigmund's is not sure how this company has been
able to grow in size as their whole product is mediocre at best.

‹#›
28
Competition Review - Sigmund’s Pizza
Local Competition
• Restaurant A: This is an upscale Italian restaurant that has a
limited selection of pasta dishes. Although the selection is
limited and pricey, the dishes are quite good.
• Restaurant B: An Italian restaurant with a decent pasta
selection, however quality is inconsistent.
• Restaurant C: An upscale restaurant with a large wine
selection and good salads. Everything else is mediocre at best
and over-priced. Service can often be poor.
‹#›
29
Analyzing Target Market
Find out more information on your customers through marketing
research
Target customers through marketing segmentation; geographic,
demographic, psychographic, behavioral
Targeting
Mass market, differentiated market, niche market
Positioning process - product attributes, price, quality, class

(butter versus margarine) use or application, product user
(athletes), against competition
Understand customer’s buying behavior; personal,
psychological and social factors
‹#›
30
Marketing Strategy - Objectives
Provide a tangible guide for action
Provide specific actions to follow
’Suggest tools to measure and control effectiveness
Ambitious yet challenging
Take in account company’s strengths and weaknesses, capitalize
on opportunities and avoid or minimize potential threats
Matched with corporate objectives and individual product line
objectives
ATTAINABLE
DESIRABLE
OPTIMISTIC
‹#›
31
Marketing Objectives
PEGASUS SPORTS INTERNATIONAL
Maintain positive, strong growth each quarter (notwithstanding

seasonal sales patterns)
Achieve a steady increase in market penetration
Decrease customer acquisition costs by 1.5 percent per quarter
‹#›
32
Marketing Objectives
PEGASUS SPORTS INTERNATIONAL
Increase the profit margin by 1 percent per quarter through
efficiency and economy of scale gains
Maintain a significant research and development budget (as a
percentage of relative sales) to spur future product development
Decrease customer acquisition costs by 1.5 percent per quarter
Achieve a double - triple-digit growth rate for the first three
years
‹#›
33
Marketing Strategy - Packaging
Design and production of container or wrapper for product
Protects content in transit and while product in use
Can prolong shelf life
Need to consider packaging for shipping
Need to consider package promotion - effective design, color,
shape to entice purchase.

Follow local laws requiring disclosure of produc content (food,
pharmaceuticals
‹#›
34
Marketing Strategy - Pricing
Consistent with organizational and marketing objectives
Marketing mix strategy
Costs
Buyer’s perception of cost and value
Competition
Demand and price elasticity
Legal and regulatory issues
Channels of distribution
‹#›
35
Marketing Strategy - Communications
‹#›

36
Promotional Campaign
Promotional mix elements are set of tools that can be used for
marketing communications
Promotional mix elements include:
Advertising - print, electronic, social
Online and interactive marketing
Direct Marketing
Sales Promotion Public Relations and Publicity
Owned media
Events and Sponsorship
WOM
POP - Displays, Packaging
OOH Media
Product Placements, Movies, TV
Partnerships
Personal Selling
‹#›
37
Advertising and Promotional Campaign
Outline of promotional and advertising campaign
What media and techniques will be employed?
What is the message you are sending to target audience;
primary, secondary
With what frequency?
What are costs?

‹#›
38
Marketing Budget - One option
50% or More Online
The majority of your investment must be in the digital world.
This number includes your online ads (Google pay per click,
Facebook, syndication sites, display), as well as all
development costs related to your website and online sales
program (servers, maintenance, upgrades, CRM) and all website
content (photos, video, renderings, site maps, written
descriptions).
A good place to begin within this 50% is to break it into these
percentages:
If 50% of your marketing budget is $100,000:
• 50% toward advertising ($50,000)
• 25% toward web development/tools/CRM ($25,000)
• 25% toward content ($25,000)
‹#›
39
Marketing Budget - One Option
12% to 20% Signage
Your signs are a direct reflection of your brand: Spend enough
to keep them looking good. Consider your prospects behavior;
driving, mass transportation and determine if this has value
accordingly.

5% to 8% Events
Consider being at high trafficked events that rlat to your
consumer, farmer’s markets, concerts, art shows, sporting
events adn determie how to optimize attntion and interest/
2% to 6% Collateral
Your sales prospect may show temporary interest in reviewing
information on paper, but they’d much rather have it instantly
accessible and accurate on your website.
16%—Everything Else
This can go toward market research, direct mail, agency
support—any number of items. This could be invested in is
local radio or TV advertising if you have a large budget, $500 -
$1 million
‹#›
40
Marketing Budget
‹#›
41
Marketing Budget

‹#›
42
Audience Targeting
A by-the-numbers approach to insuring that the vehicles you
choose deliver your message to the right audience(s)
Integrated Marketing Communications
‹#›
Whom do you go after?
Determining financial value
Not all customers/consumers are created equal
Establish appropriate behavioral objectives for each consumer
group: i.e. maintain spending levels; increase spending levels;
migrate to a different group; obtain trial, etc.
Critical to see customers as assets and communications as
investment
Pareto Rule: 20% of customers contribute about 80% of the
firm’s sales, profits or income.
‹#›
2

How do you reach them?
Five “Rs” of IMC:
Relevance
Receptivity
Response
Recognition
Relationship
Source: Shultz & Schultz, “IMC: The Next Generation”
‹#›
3
Develop a ‘relationship’ with your audience
Reciprocal Marketer-Consumer Relationship
Brand Relationship – the relationships that exist between buyers
and sellers through the exchange of value for products or
services over time.
As long as each party believes the value of their rewards is
equal to the value of their input, both will be satisfied.
Perceived inequity leads to tension in the relationships that can
be resolved by:
Reducing inputs
Increasing outcomes
Leaving the relationship
‹#›

4
Where do you find them?
Brand Contacts (Audit)
Where will the brand touch his/her life?
Can these “touch points” be organized and prioritized from the
consumer’s point-of-view?
Which communication vehicles will address these touch points?
Important
Less Important
Positive
Negative
Priority Grid
‹#›
5
Audience “touch point” activity wheel
Male
35 – 54 Years
Work Day
Evening
Non-Work
Night

‹#›
6
Vehicle selection based on “touch points”
Male
35 – 54 Years
Work Day
Evening
Non-Work
Night
Print Advertising
Direct Mail
Radio Advertising
Cinema Advertising
Radio Advertising
Social Media
Internet Advertising
TV Advertising
Radio Advertising
Public Relations
Sales Promotion
Out of home
Word of mouth
‹#›
7
How do you talk to them?

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