Advertisements, Promotions, and News Releases

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Chapter 10

• Advertisements, Promotions, and News Releases

Deny A. Kwary www.kwary.net
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Main Topics

• Marketing Mix
• Promotion Mix
• Planning an advertising and promotional campaign
• Communicating with an advertisement
• Planning a news release

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Marketing Mix (the four Ps)

• Product
• Product variety, quality, design, features, brand
  name, packaging, sizes, services, warranties.
• Price
• List price, Discounts, Allowances, Payment
  period, Credit terms
• Place
• Channels, Locations, Transport
• Promotion
• Advertising, sales promotion, public relations,
  personal selling, direct marketing.

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Promotional mix

• Promotional mix term given to the combination
  of promotional approaches that an organisation
  uses to communicate with the world around it.

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Promotion Mix (Promotion Channels)

• Advertising
• Sales promotion
• Public relations
• Personal selling
• Direct marketing

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Focus on Three Channels

• Advertising Any paid form of nonpersonal
  presentation and promotion of a product.
• Sales promotion Short term incentives to
  encourage trial or purchase of a product.
• Public relations A variety of programs designed
  to promote and/or protect a companys image or
  its individual products.

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Advertising and Sales promotion

• Can serve a variety of communication objectives
• creating or increasing awareness (e.g. informing
  the target market of a new service)
• informing or educating (e.g. explaining how to
  make better use of a service)
• stimulating various types of purchase decision
  (e.g. encouraging people to buy a product).

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Planning an advertising andpromotional campaign

• Imagine that you are the product manager
  responsible for launching Vegetale in your
  organisations Northern European sales territory.
  
• It is a new, vegetable-based, high-protein food
  that is being positioned as an attractive
  alternative to meat.
• How would you develop an advertising campaign, as
  the product moves from the development stage to
  its initial launch in this market?

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Planning an advertising andpromotional campaign
(continued)

• 1. Marketing research
• e.g. (1) Who buys food for the household?
• (2) What are the existing alternatives to meat,
  and how are they perceived by both consumers and
  non-consumers?
• (3) What do people already know and think of
  Vegetale and the companys other products?

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Planning an advertising andpromotional campaign
(continued)
2. Identifying target market(s) e.g. In the
Vegetale example, your research suggests that the
demographic profile is likely to comprise females
aged 20 to 35 who are professionals and skilled
workers (socio-economic groups).
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Market Segmentation

• Region
• Density

• Geographic

• Age
• Gender
• Occupation
• Education

• Demographic

• Social class
• Lifestyle

• Psychographic

• Occasions
• Loyalty status

• Behavioral

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Mass Marketing Versus Target Marketing
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Planning an advertising andpromotional campaign
(continued)

• 3. Developing campaign objectives
• 25 unprompted recall of Vegetale in your target
  market, by the end of a 3-month media campaign
• 4. Planning and budgeting
• the channels to be used (e.g. newspaper and
  television adverts, in-store promotions)
• the timescale of the campaign

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Planning an advertising andpromotional campaign
(continued)

• 5. Drafting material key messages
• e.g. your key messages might be that Vegetale is
  a new, nutritious, low-fat product, derived
  entirely from natural vegetable ingredients,
  which can be prepared much like meat and which
  has a similar texture to veal.

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Challenges of direct engagement

• Product samples trial size shampoos, attached
  to magazines or delivered to the door, and
  cut-down versions of computer software packages,
  supplied as a CD-Rom or downloaded via the
  Internet.
• e.g. In 1960s, a company was forced to
  discontinue its new promotional campaign for
  razor blades
• BECAUSE inquisitive children across the country
  began opening product samples that had been
  dropped through their letterboxes.

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Challenges of direct engagement (continued)

• Miscalculations
• e.g. In the early 1990s, Hoover offered its UK
  customers two free flights to European or US
  destinations if they spent more than 100 on its
  products
• It was worth purchasing a Hoover product, simply
  to secure the two free flights.
• The offer was massively over-subscribed, leading
  to legal actions by disappointed customers, a
  public relations disaster, multi-million pound
  losses and the subsequent departure of several
  senior executives.

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Some popular advertising formats
Table 10.1 Some popular advertising formats
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Some popular advertising formats (continued)
Table 10.1 Some popular advertising formats
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An example of a Postmodern Advert
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Measured Advertising Dollars (2004) for Selected
Fast Food Brands
Source The Top 200 Megabrands, Advertising
Age. July 18, 2005. Accessed August 7, 2005.
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(No Transcript)
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Public relations

• The UKs Institute of Public Relations (IPR) has
  defined this communication role as the planned
  and sustained effort to establish and maintain
  goodwill and mutual understanding between an
  organisation and its publics
• (IPR 2003).

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An organisations dialogue with its stakeholders
Figure 10.2 An organisations dialogue with its
stakeholders
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Successful PR

• PR can only be successful if it addresses the
  following key principles
• Senior management commitment is essential
• PR activity must be linked to strategic aims
• Organisations must understand and engage with
  its publics
• PR strategies require plans, budgets and
  resources
• Feedback from PR activity should inform
  strategic change

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PR activities and communication channels

• Corporate brochures
• Sponsorship
• Lobbying
• Internal communication
• News releases
• Exhibitions and events

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Planning a news release

• A news release
• A statement, often about the launch of a new
  product, service or event used by an organisation
  to brief media journalists and encourage them to
  write articles on the subject.
• Unlike news articles, press releases are biased
  towards the perspective of the organisation.

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Typical format for a news release

• The message content demonstrates a number of
  good practice features, including
• the provision of relevant facts, addressing the
  six fundamental news questions (i.e. who? what?
  when? where? why? how?)
• placing the most important facts at the
  beginning
• presenting the information in a clear and
  simple format
• providing relevant contact details

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Organisation Name and Logo
Release Date/Time
Descriptive heading
Main news point
Subsidiary news points
About the organisation
Contact names and numbers