Marketing Management, Millenium Edition - epiheirimatikotita.gr

We describe the nature and use of three promotional tools—advertising, sales promotion,and public relations. Although their effectiveness is not always easy togauge, they contribute strongly to marketing performance.DE V E L O P I N G A N D M A N A G I N G A NA D V E R T I S I N G P R O G R A MWe define advertising as follows:■Advertising is any paid form of nonpersonal presentation and promotionof ideas, goods, or services by an identified sponsor.Advertisers include not only business firms but also museums, charitable organizations,and government agencies that direct messages to target publics. Ads are a costeffectiveway to disseminate messages, whether to build brand preference forCoca-Cola or to educate people to avoid hard drugs.Organizations handle their advertising in different ways. In small companies, advertisingis handled by someone in the sales or marketing department, who workswith an advertising agency. A large company will often set up its own advertising department,whose manager reports to the vice president of marketing. The advertisingdepartment’s job is to propose a budget; develop advertising strategy; approve ads andcampaigns; and handle direct-mail advertising, dealer displays, and other forms of advertising.Most companies use an outside agency to help create advertising campaignsand to select and purchase media.In developing a program, marketing managers must always start by identifyingthe target market and buyer motives. Then they can make the five major decisionsin developing an advertising program, known as the five Ms: Mission: What are theadvertising objectives? Money: How much can be spent? Message: What message shouldbe sent? Media: What media should be used? Measurement: How should the results beevaluated? These decisions are summarized in Figure 5-10 and described in the followingsections.SETTING THE ADVERTISING OBJECTIVESThe advertising objectives must flow from prior decisions on target market, marketpositioning, and marketing mix.Many specific communication and sales objectives can be assigned to advertising.Colley lists 52 possible advertising objectives in his Defining Advertising Goals for MeasuredAdvertising Results. 1 He outlines a method called DAGMAR (after the book’s title)for turning objectives into specific measurable goals. An advertising goal (orobjective) is a specific communication task and achievement level to be accomplishedwith a specific audience in a specific period of time. Colley provides an example:To increase among 30 million homemakers who own automatic washersthe number who identify brand X as a low-sudsing detergent and who arepersuaded that it gets clothes cleaner—from 10 percent to 40 percent in oneyear.Advertising objectives can be classified according to whether their aim is to inform,persuade, or remind.578part fiveManaging andDelivering MarketingPrograms■■Informative advertising figures heavily in the pioneering stage of a product category,where the objective is to build primary demand. Thus the yogurt industryinitially had to inform consumers of yogurt’s nutritional benefits.Persuasive advertising becomes important in the competitive stage, where a company’sobjective is to build selective demand for a particular brand. For example,Chivas Regal attempts to persuade consumers that it delivers more taste and statusthan other brands of Scotch whiskey. Some persuasive advertising uses comparativeadvertising, which makes an explicit comparison of the attributes of two