Marketing Management, Millenium Edition - epiheirimatikotita.gr

MESSAGEMISSION• Sales goals• Advertising objectivesMONEYFactors to consider:• Stage in PLC• Market share andconsumer base• Competition and clutter• Advertising frequency• Product substitutability• Message generation• Message evaluationand selection• Message execution• Social-responsibilityreviewMEDIA• Reach, frequency, impact• Major media types• Specific media vehicles• Media timing• Geographical mediaallocationMEASUREMENT• Communication impact• Sales impactF I G U R E 5-10■or more brands. 2 The Burger King Corporation used comparative advertising forits attack on McDonald’s (Burger King’s burgers are flame-broiled; McDonald’s arefried). Schering-Plough claimed that “New OcuClear relieves three times longerthan Visine.” A company should make sure it can prove its claim of superiorityand cannot be counterattacked in a vulnerable area. Comparative advertisingworks best when it elicits cognitive and affective motivations simultaneously. 3Reminder advertising is important with mature products. Expensive four-colorCoca-Cola ads in magazines are intended to remind people to purchase Coca-Cola. A related form of advertising is reinforcement advertising, which seeks to assurecurrent purchasers that they have made the right choice. Automobile adsoften depict satisfied customers enjoying special features of their new car.The advertising objective should emerge from a thorough analysis of the currentmarketing situation. If the product class is mature, the company is the market leader,and brand usage is low, the proper objective should be to stimulate more usage. If theproduct class is new, the company is not the market leader, but the brand is superiorto the leader, then the proper objective is to convince the market of the brand’s superiority.The Five Ms of AdvertisingDECIDING ON THE ADVERTISING BUDGETHow does a company know if it will be spending the right amount? If it spends toolittle, the effect will be negligible. If it spends too much, then some of the moneycould have been put to better use. Some critics charge that large consumer-packagedgoodsfirms tend to overspend on advertising as a form of insurance against not spendingenough, and that industrial companies underestimate the power of company andproduct image building and tend to underspend on advertising. 4Advertising has a carryover effect that lasts beyond the current period. Althoughadvertising is treated as a current expense, part of it is really an investment thatbuilds up an intangible asset called brand equity. When $5 million is spent on capitalequipment, the equipment may be treated as a five-year depreciable asset andonly one-fifth of the cost is written off in the first year. When $5 million is spenton advertising to launch a new product, the entire cost must be written off in thefirst year. This treatment of advertising reduces the company’s reported profit andtherefore limits the number of new-product launches a company can undertake inany one year.579