Marketing, Promotion, Advertising and Media Plans

One of the most difficult things for a business person to do is to decide to spend money on advertising. Why? You often get no immediate result, you don't know how to advertise, you don't know the media, you write the check and get no product use gratification, you have no budget.

It is entirely possible to waste your money

Ads are everywhere - billboards, movie theatre screens, newspapers, magazines, radio, television, the Internet, t-shirts - where do you see or hear ads?

1 | 2 | 3 | 4

Ads are cultural - what does this mean? Roos1  Roos2 | Worldviews

Ads are communication - what does this mean?

Ads are persuasive - what does this mean?

Ads are worldwide - what does this mean?

Marketing is THE context for Advertising, where advertising is one of the tools of marketing.

Marketing is a set of plans, activities and a guiding philosophy for engaging in business or commerce. It works equally well for non-business applications, nonprofit organization (libraries, political groups, churches, etc.).

If we look up "Commerce" in the Thesaurus, you will find that it means trade. There are several synonyms including: exchange, buying, selling, retail, wholesale, trade.
http://www.visualthesaurus.com/

We think of marketing as an exchange of values between a business and a consumer, where both parties receive value in the exchange and both parties "win" from their point of view. If either part is dissatisfied after the exchange, then there is room for better marketing. Thus:

Successful Marketing is - an Exchange of Values, where values can be

• ideas
• goods
• services
• money.

Another way to look at values is that values are "bundles of benefits" where there are threefold types of benefits:

• Physical benefits
• Functional benefits
• Psychological Benefits.

Interestingly, people "buy" the bundle of benefits when they plop down their money. However, there are usually one or two key benefits that drive the motivation and set apart one choice over another competitively. Example | 1| 2 | 3 |

To "do" marketing requires that you start with the the philosophy of marketing. Simply put, the marketing philosophy focuses on the consumer and requires that you be socially responsible while engaging in marketing activities. Markets are people or organizations with wants and needs. Responsible marketing accounts for the effects of marketing on people and on the environment as a result of the production, distribution and consumption processes. So...The Philosophy is:

• focus on markets
• focus on consumer wants and needs
• focus on the exchanges of values and creating benefits
• focus on a win/win relationship
• focus on Social responsibility and business ethics

Marketing is - Plans and activities that facilitate an Exchange of Values between Producer and Consumer that follows the Marketing Philosophy.

The parts of a Marketing Plan include:

• Product Concept
• Price Concept
• Place Concept
• Promotion Concept
  • Advertising
  • Sales Force (Personal selling)
  • Sales Promotions & Point Of Purchase (POP)
  • Publicity
  • Public Relations

One of 250 approved AMA definitions = A matching process based on goals and capabilities by which a producer creates a marketing mix that meets consumer wants and needs within the limits of society.

Promotions - a catchall phrase for all of the firm's marketing communications including:

• Advertising
• Sales Force (Personal selling)
• Sales Promotions & Point Of Purchase (POP)
• Publicity

Public Relations is not really a promotional tool in that it is geared towards different goals other than sales. (see below)

1) Personal Selling - two-way personal interaction by phone or in person with your consumers.

2) Sales Promotions - direct inducements to affect behavior or reinforce ideas and feelings; often offering extra value, as an incentive to consumers to cause immediate sales or changes of behavior: samples, coupons, price-off deals, rebates, premiums, games & contests. POP's/Counter displays, racks, banners, in- & out-of-store sinage
Using Promotional Tools rollover

Using Promotional Tools link

3) Publicity - advocacy communications without direct media cost to generate interest in the company and its products and to increase sales, usually through the creation of newsworthy events by the company. These efforts will have a cost and the events themselves may be advertised.

4) Advertising - (you'll see in a minute)

Public Relations - use of the media without media cost to disseminate favorable & credible news about a product, brand, firm, organization, or a person. The goal is usually image building more than to effect sales or consumer behavior directly. Tools are press releases, the exclusive story, interviews, the press conference, the photo & caption, the bylined article, speeches, and house publications.

We can look at these options as the "Promotions Mix", each with differing effectiveness and efficiency when meeting marketing goals.

The Promotions Mix components can be compared for cost versus individual or mass market reach.

What is Word of Mouth?

• Diffusion of Innovation
• Innovators & Early Adopters
• Connecting with your Viral constituencies
• How will you generate Word of Mouth? LEX2
  

So what is ADVERTISING? - any paid form of non-personal, point-of-view communications advocating goods, services, and ideas by an identified sponsor, including the following Media Tools:

These are known as Media Tools. The question is which medium is the best tool to carry the message to a particular audience to achieve a particular objective or outcome?

Vehicles: are the next , more tactical level of strategizing - a specific media choice, where the medium is radio and the vehicle is KMBY.

Display vs. Classified - display ads include graphics and classifieds are texy boxes in a directory format.
Cooperative - two or more parties share the cost and mix their elements (messages, logos, etc.) in an ad aimed at common markets.
Business to Business (B2B) - another businesses are the target market.
Business to Consumer (B2C) - the target market is the end users
Direct Response - the objective of the ad is immediate action or behavior.
Corporate & Institutional - used to affect the business' image, stock, recruiting, etc., public relations.
National, Regional, Local (mostly retail), International - usually refers to the circulation (print) or broadcast coverage area (tv, radio) geographically.
Spot Advertising - When a national company inseerts individual ads into selected local media in selected markets rather than blanketing through a network
Campaign - the combination of media and vehicles used, # of ad insertions of each type, reach and other outcome goals, buying and scheduling, over a period of time.
Duration - the length of time the ad campaign runs; short durations may inhibit results just as they are starting to be effected in an audience.
Reach - total number of individuals in your target audience that are exposed to your message at least once by the combination of media and vehicles used.
Message - includes the copy (words), design (graphics, layout, as architecture, audio, video components, etc.) and production - the combining of these elements.

Advertising is planned and executed either by the business organization itself, or by experts known as ad agencies (15% fee for billed media plus some production costs), or by the business itself with the aid of experts for some aspect of the advertising process (such as graphics arts, layout, or production).

Below is a typical Ad Agency organization.

1. Planning - research, target marketing or audience selection, campaign planning, setting objectives.
2. Creative - graphic arts, layout, scripting, production, copywriting.
3. Media Planning, Buying & Scheduling - budgeting, buying media time, media planning for flights, patterns, & media choices, distributing ad materials (cassettes, slides, artwork).
   

a) Market Research & Competitive Analysis
1) Market/Audience Targets
2) Marketing --> Media Objectives
3) Message/Creative

• Message Formation
• Media
  • proximity
  • exposure (see/hear/read)
• Creative
  • attention (proximity)
  • retention (learning)
  • results (objective)
  • recall (at appropriate time)

4) Budget
5) Re-think 1 thru 3 in light
of Budget Restrictions
6) Media choices

• medium
• vehicle
• insertions, reach, frequency, GRP's, flighting plans & scheduling plans

7) Promotional Support

• sales promotion devices
• publicity
• packaging, branding and positioning

8) Media Scheduling & Buying

• materials
• implementation
  
  

General Goals:

• market vs. demarket
• primary vs. selective demand
• entire market or segment

Categories for specific objectives are:

• Awareness/thinking/information
  • non-recognition
  • recognition
  • specific learning (knowledge, information)
• Attitudes/feelings/judgements
  • rejection
  • liking
  • preference
  • insistence
• Behavioral
  • do without
  • postpone
  • substitute
  • trial use
  • 1st time buy
  • regular repeat purchase
    

1) Define the task - increase brand recall

2) Degree of change - from 20% recall to 80%

3) Define the audience - 18-34 year old men with Lear Jets

4) Time period - within the next three months