MKT 386 FINAL

Why sales promotions are growing

Accountability is one reason. Similar to direct-response communication, promotion delivers quicker results that are easy to measure. Other reasons for the move to sales promotion are related to changes in the marketplace. For example, consumers are less brand loyal and dominant retailers demand promotional support for products that they carry.

Different Kinds of Lists

-A house list is made up of the marketer's own customers or members, its most important target market. This is its most valuable list. -A response list is made up of people or households who have responded to some type of direct-response offer. The more similar the product to which they responded is to the marketer's product, the more valuable this list. -A compiled list is of some specific category, such as sports car owners, new homebuyers, graduating seniors, new mothers, association members, or subscribers to a magazine, book club, or record club.

Difference between image and reputation

-A reputation of integrity involves more than image. Image is a perception based on messages delivered by the advertising and other marketing communication tools. Reputation, however, is based on an organization's actual behavior. Image mirrors what a company says about itself, but reputation reflects what other people say about the company -Principle: Reputation is earned based on what you do, not what you say about yourself. -The value of a good reputation is hard to measure. Although considered a soft asset, one that is not usually included in a company's financial statements, it can be significant in determining company and brand value

Stereotypes

-A stereotype is a representation of a cultural group that emphasizes a trait or group of traits that may or may not communicate an accurate representation of the group. Sometimes the stereotype is useful and aids communication by using easily understood symbolic meaning. But when stereotypes rely upon on a characteristic that is negative and exaggerated, an entire group is reduced to a caricature. -Stereotyping also raises the shape-versus-mirror question discussed earlier in the chapter. Intentionally or not, communicators choose how they portray people in their ads. Even the absence of a particular group of people communicates a message. Portraying groups negatively can damage brand relationships with consumers.

Requirements of making false advertising claims

-Advertisers who engage in comparative advertising know that research in support of their competitive claims must be impeccable. Under the law, companies/plaintiffs are required to prove five elements to win a false advertising lawsuit about an ad containing a comparative claim. They must prove that: *False statements have been made about either product. *The ads actually deceived or had the tendency to deceive a substantial segment of the audience. *The deception was "material" or meaningful. *Falsely advertised goods are sold in interstate commerce. *The suing company has been or likely will be injured as a result of the false statements, either by loss of sales or loss of goodwill.

Global Campaign Strategies

-Agencies involved with international campaigns need an international organizational structure as well. Organization depends on whether the client company, as well as its agencies, is following a standardization or a localization strategy. Some firms and their agencies exercise tight control, whereas others allow more local autonomy. -All of these approaches fall into three groups: 1) tight central international control, 2) centralized resources with moderate control, or 3) a match of the client's organization - if the client is highly centralized, then the agency account structure will be highly centralized. -Refer back to study guide (reread entire section)

How brand communication is regulated

-Although it would be ideal if individuals and companies always made socially responsible choices, sometimes that does not occur, and for that reason regulatory or legal action is needed. -Various systems are in place to monitor the social responsibility of advertising and other brand communication, including laws, government regulations and their regulatory bodies, professional oversight groups, and industry self-regulation. Figure 18.3 identifies the organizations with oversight responsibility for advertising and groups them in terms of five specific categories: government, media, industry, public or community groups, and the competition.

Different types of consumer promotions

-Although trade promotion claims the greatest percentage of the promotion budget, most people are more familiar with consumer promotions. Consumer sales promotions are directed at the ultimate user of a good or service. They are intended to provide an incentive so that when consumers go into a store they will look for a particular brand. The primary strengths of consumer sales promotions are their variety and flexibility, as well as their accountability. Following is a summary of common types of consumer promotions: -Price Deals *A price deal is a temporary price reduction, a sale price, or even a giveaway. There are four common price deals: -Refunds and Rebates *A refund or rebate is a marketer's offer to return a certain amount of money to the consumer who purchases the product. Sometimes the refund is a check for a certain amount of money, while at other times it may be a coupon to encourage repeat use. -Sampling *Allowing the consumer to try the product or service is called sampling. Advertisers can distribute samples to consumers in numerous ways, such as sampling tables for food products in stores. Small samples of products can be distributed in newspapers, on house doorknobs, in doctors' and dentists' offices, and, most commonly, through the mail. -Premiums *A premium is a tangible reward for a desired behavior, such as trying a new product. The two general types of premiums are direct and mail. Direct premiums award the incentive immediately at the time of purchase. Mail premiums require the customer to take some action before receiving the premium. -Coupons *There are two general types of coupons that provide a discount on the price of a product: retailer and manufacturer coupons. Retailer-sponsored coupons can be redeemed only at the specified retail outlet. Manufacturer-sponsored coupons can be redeemed at any outlet distributing the product. Digital coupons are also very popular. -Contests and Sweepstakes *Contest and sweepstake promotions create excitement by promising "something for nothing" and offering impressive prizes. Contests require participants to compete for a prize or prizes based on some sort of skill or ability. Sweepstakes require only that participants submit their names to be included in a drawing or other chance selection. Sweepstakes are now offered via mobile marketing. A game is a type of sweepstakes that establishes continuity by requiring customers to return several times to acquire additional pieces to improve their chances of winning. -Specialties *Specialty advertising presents the brand's name on something that is given away in an attempt to remind consumers about the brand. Items include calendars, pens and pencils, T-shirts, mouse pads, tote bags, and water bottles. The ideal specialty is an item kept out in the open where other people can see it, such as a coffee mug. Another type of freebie is the swag given to people who attend events. Gift bags with low-cost promotional knickknacks are often given to trade show and conference attendees. -Consumer sales promotions can be delivered in various media, including print, broadcast, and online. In-store promotions using posters, shelf talkers, displays, and other types of signage are particularly effective at reaching people who are making a purchase decision. Many advertising campaigns include a campaign-dedicated website designed as a tie-in.

Know about self discipline

-An organization such as an advertising agency exercises self-discipline when it develops, uses, and enforces norms within its own practices. Self-discipline starts with the individuals in the agency or organization. -Virtually all major advertisers and advertising agencies have in-house ad review procedures, including reviews by agency and client attorneys. These employees help ensure that work is legal. Typically, the attorneys are concerned with how claims are phrased and substantiated.

Synergy

-Another challenge with evaluating campaigns, particularly IMC campaigns, is estimating the impact of synergy. Intuitively we know that multichannel communication with messages that reinforce and build on one another will have more impact than single messages from single sources; however, that can be difficult to prove. -If the campaign planning is well integrated, which means each specialty area cooperates with all the others in message design, delivery, and timing, there should be a synergistic effect. This means that the overall results are greater than the sum of the individual functional areas if used separately.

Surrogate Measures

-Any attempt to measure the impact of brand messaging by looking only at sales numbers poses challenges. Therefore, the impact of brand messaging is typically measured in terms of its communication effects - the mental responses to a message that serve as surrogate measures for sales impact. Positive post-campaign changes in measures such as brand awareness, knowledge of what the brand offers, liking of the brand, and intent to purchase all suggest that the advertising message or some other form of brand communication is making a positive contribution to an eventual purchase decision.

Direct Mail

-Direct-mail is communication for a product, service, or nonprofit organization that is addressable, meaning that it can be delivered by mail or electronically to a specific person or business. -Most direct mail is sent using a third-class bulk mail permit, which requires 200 identical pieces. The response rate for direct mail can vary from .01 to 50 percent, but it's typically in the 2 to 3 percent range. Because of the high level of non-response, direct mail is also a fairly costly tool in terms of cost per impression. However, it is much easier to calculate the actual payout rate, which is why it is considered so much more accountable than other forms of marketing communication. -Inside the envelope, the design of the direct-mail piece is important in getting the information read. Ideas about the creative use of direct mail are offered in the Inside Story by designer Michael Dattolico. -The technology of the internet also has produced dramatic changes in the direct-mail industry. Much internet advertising is simply direct marketing in electronic form, since email is simply another type of letter. Email marketing and software assistance is available from companies such as Constant Contact, which provide email templates.

Functions of sales promotions

-As part of any integrated program, sales promotion has different functions than other marcom tools. Over time, advertising builds brand equity by establishing a consistent image or feeling. In contrast, sales promotions are more immediate, involving a finite time period. In return for taking action, sales promotions offer consumers something more tangible. -Promotions are often used with a new product launch to deliver trial. They are also good at building traffic for a retailer. However, they are not effective in achieving all marketing objectives. For example, promotions cannot do much to change negative attitudes toward a product, overcome product problems, or reposition a brand. -The most common sales promotion strategies are designed to motivate action among three audiences: consumer, trade, and sales force. The first two - customer sales and trade support - have direct implications for advertising and marketing communication. The third category - sales force promotions - is also important in building trade support. -Two types of promotional activities are directed at a firm's sales force. The first set of activities includes programs that better prepare salespeople to do their jobs, such as sales manuals, training programs, sales presentations, and supportive materials. The second set of activities deals with promotional efforts or incentives for retailers to use as in-store promotions and other programs that motivate salespeople to work harder, such as contests. -An important dimension of sales promotion planning is payout planning that calculates the return on investment (ROI). This process means that the results derived from a promotion can be estimated and compared to the projected costs of the effort. If the promotion does not deliver more than it costs, it is not a good idea, at least financially.

Key debates about how brand communication portrays people (pg 545)

-Can Advertising Create Demand? *Some critics charge that advertising causes demand creation, which results when an external message drives people to feel a need or want, sometimes unnecessarily. Others reject this notion. *Companies often conduct significant research to find out what consumers want before they launch new products. If people do not want the products being marketed, they do not buy them. Advertising may convince a person to buy a product, even a bad one, once. But if they don't like it, they won't buy it again. So, to some extent advertising does create demand, but it is important to remember that audiences may refuse a product if they don't feel the need for it. -Does Advertising Mirror Social Values or Shape them? *Another important debate about advertising's role in society questions the limits of its influence. At what point does advertising cross the line between reflecting social values to creating them? Critics argue that advertising has repeatedly crossed this line, influencing vulnerable groups such as children and teenagers too strongly. -Can advertising manipulate people's choices? Critics of advertising argue that advertising can create social trends and has the power to dictate how people think and act. They believe that even if an individual ad cannot control behavior, the cumulative effects of nonstop television, radio, print, internet, out-of-home, and social media can be overwhelming. *Others contend that effective brand communication spots trends and develops messages that connect target audiences with the trends. In this way, advertising mirrors values rather than sets them. *The shaping-versus-mirroring debate is the most central issue we address in considering advertising and public relations' role in society. What drives consumers to behave as they do? And what are the cultural forces that underlie their decisions? It's complicated to decipher. Advertising and societal values are interwoven, so the answer to this debate may simply be that advertising both mirrors and shapes values. -Does advertising cause people to be too materialistic? *Some argue that advertising heightens expectations and primes the audience to believe that the answer is always a product. What is left unsaid by an advertisement is that there are free alternatives that could potentially solve your problem also. Consumers, however, are not always passively doing what advertisers tell them. They have the power to refuse to buy what is being sold. -Should some audiences be protected from advertising? *Marketing to youth is one of the most controversial topics in the industry. One reason why advertising to children attracts so much attention is that children are seen as vulnerable. Children do not always know what is good for them and what is not. *A current issue that's being addressed relates to selling soft drinks, candy, and food with high fat and sugar content to children. Marketing alcohol to black teens is another important issue.

Different remedies available to the FTC

-Common sources of complaints concerning deceptive or unfair advertising practices are competitors, the public, and the FTC's own monitors. After the FTC determines that the ad is deceptive, the first step in the regulation process is to issue a consent decree. Most advertisers sign it to avoid bad publicity. -It is important for advertising students to understand the legal ramifications of deceptive and unfair advertising. Essentially, an agency is liable for deceptive advertising along with the advertiser when the agency is an active participant in the preparation of the ad and knows or has reason to know that it is false or deceptive. -If a complaint seems justified, the FTC can follow several courses of action: *Cease-and-desist orders. If an advertiser refuses to sign a consent decree and the FTC determines deception is substantial, this order is issued. *Corrective advertising. The FTC may require this when consumer research determines than an advertising campaign has perpetuated lasting false beliefs. *Consumer redress. By law, the FTC is empowered to obtain consumer redress when a person or a firm engages in deceptive practices. A judge can order cancellation or reformation of contracts, refund of money or return of property, payment of damages, and public notification.

Cause Marketing

-Companies can build community relations through cause marketing. When companies associate themselves with a good cause by providing assistance as well as financial support, the practice is called cause marketing. -The use of cause marketing will increase as a way to address challenging social and environmental issues.

Mission Marketing

-Concern for social issues is increasingly important for for-profit companies because they want to be seen as socially responsible. Adopting a good cause and helping in its fundraising and other community-oriented efforts is called cause marketing. -Carol Cone, the founder of the Cone Agency, which specializes in cause marketing, more recently started a consultancy called Carol Cone on Purpose, which focuses on company and brand purpose. Her mission is to link brands to causes for which people feel passion. -"In addition to operating with a sense of social responsibility, marketers engage in philanthropy through cause marketing. The primary goals are to help communities and nonprofit organizations while generating goodwill, positive word-of-mouth, and the hope that people will look more favorably on these brands when making their next purchase decision," according to Professor Scott Hamula. -Mission marketing is when a commitment reflects a company's core business strategy. It links a company's mission and core values to a cause that connects with its consumers' interests. It is more of a commitment than cause marketing because it reflects a long-term brand building perspective and the mission becomes a point of passion for all stakeholders, as well as the focal point for integrating all of the company's marketing communication. -Mission marketing also contributes to synergy through what we identified earlier as brand integrity. The integration triangle in Figure 16.2 in the textbook illustrates the gaps as well as the connections between the three key aspects of brand communication that must work together to create integration as well as integrity: 1) what brand company or brand says about itself (say), 2) how the company or brand performs (do), and 3) and what other people say about it (confirm).

Different types of trade promotions

-Consumer awareness and desire mean nothing unless the product is available in places that the consumer expects to see it. The trade must be convinced that the product will move off the shelves. In such programs, trade refers to all the people involved in the channel of distribution, including buyers, brokers, distributors, wholesalers, dealers, franchisees, and retailers. Trade promotions are sometimes referred to as channel marketing. -Here are the most common types of trade promotions: *Retailer (dealer) kits. Materials that support retailers' selling efforts or that help representatives make sales calls on prospective retailing customers are often designed as sales kits. The kits contain supporting information, such as detailed product specifications, how-to display information, and ad slicks—print ads that are ready to be sent to the local print media as soon as the retailer or dealer adds identification, location, promotion price, or other information. *Trade incentives and deals. Similar to consumer price deals, a manufacturer may reward a reseller financially for purchase of a certain level of a product or support of a promotion. *Contests. As in the case of consumer sales promotion, advertisers can develop contests and sweepstakes to motivate trade members, especially salespeople. Contests are far more common than sweepstakes, mainly because resellers find it easy to tie contest prizes to the sale of the sponsor's product. A sales quota is set, for example, and the retailer or person who exceeds the quota by the largest percentage wins the contest. *Point-of-purchase promotions. According to the Point-of-Purchase Advertising International Association (POPAI), the marketing-at-retail industry includes manufacturer-designed displays distributed to retailers who sell their products. These are referred to as point-of-purchase (PoP) materials and include, among other tools, special racks, display cartons, banners, signs, price cards, and mechanical product dispensers. *Trade shows and exhibits. A trade show is a place where companies within the same industry gather to present and sell their merchandise, as well as to demonstrate their products. Exhibits are the spaces that are designed to showcase the product.

Different Elements of IMC Mix

-Include things like guerilla marketing and point of purchase -The decision about which marcom tools to use in a campaign is based on an analysis of their strengths and weaknesses as well as consumer insights to determine how these functions can best be employed to meet the campaign's objectives. As explained in Chapter 8, certain tools are better at delivering specific objectives. -A list in the textbook presents the main IMC areas in terms of their primary effects. As you look over the list, think about what is required to launch a new product. In that situation, which tools would you select as the most appropriate? That's the type of thinking planners use at this point to initially decide which marcom tools would be most useful in meeting the campaign's objectives. -In times past, these functional areas were often little empires with their own ideas and programs. Sometimes the programs conflicted; for example, a special promotion might be planned at the same time as an event or big advertising campaign but with an entirely different theme. We refer to that approach as silos, which means they operated on their own with little concern for what others areas were doing. -IMC has sought to break down the walls between these functional areas and coordinate their activities with brand focused, customer-based planning. The result is more consistency and synergy in message strategies.

Conversion Rates

-Instead of click-through rates, some advertisers use a cost-per-lead metric that records how well the click-through generates prospects, an attempt to get at ROI. A more important metric, however, is conversion rate, which is the percentage of visitors to a site who complete a desired action, such as playing a game, signing up for a newsletter, or buying something. Of course, online sales are an important measure of digital effectiveness. -In addition to evaluating digital efforts by looking at conversion rates and sales, experts are now evaluating digital campaign components in terms of their ability to generate awareness and consideration. These are measures that used to be applied only to traditional media. We must attempt to understand the myriad of influences that digital efforts may be having on the way consumers think and feel.

Social impact of marketing communication (pg 542)

-Marketing communication, particularly advertising, sometimes draws criticism of its social impact because of its high visibility. Our intention is to review the criticisms, while adhering to our belief that advertising is a good force in our society and in our economy. -Public relations also plays a major role in a brand's demonstration of social responsibility. Developing a positive relationship between the client and its audiences is the core of the public relations profession, and demonstrating the ability to have a positive social impact is a way to accomplish that goal. -The Inside Story featured in this chapter provides an example of how a marketing organization helped a small nonprofit in its city increase its donations and its good relationship with the community. Also sprinkled throughout this textbook are Principled Practice boxes that emphasize the importance of social and ethical responsibility.

How we Evaluate PR

-Output and outcome (??) -The search for methods to tie public relations activities to bottom line business measures, such as return on investment (ROI) is like the quest for the Holy Grail. A surrogate ROI measure can be based on shareholder value, which can be seen as a company or brand's reputation capital. -Although some still argue that not all the value of public relations programs is measurable, others claim that it is possible to increase the use of metrics to determine the impact a public relations campaign is having on consumer engagement, especially in the digital arena. Objectives and the metrics for measuring success must be established upfront; only then are public relations professionals truly capable of campaign evaluation.

Owned AND earned online communications tools

-Owned media are those channels owned and controlled by the sponsoring organizations such as websites, blogs, sponsored events, and publications about the brand, such as news releases. The company or organization controls the messages but does not control how or when the message is delivered. -Consumers and mass media, not the brand owners, control the mentions and comments about the brand in what is known as earned media, which makes it the most credible media option. The result is positive word of mouth, viral communication, and publicity hits and mentions. -Although it's hard to measure, earned media is undeniably valuable, as long as the coverage is positive. However, sometimes such coverage can damage a brand's reputation. This is why some companies monitor the internet to see what is being said about them so that they can respond to protect their reputations, if it's something negative.

Components (or tools) of direct response industry

-Personal Sales *Personal selling is the earliest and most effective, and also most expensive form of direct marketing. Companies that have used personal selling very successfully include Mary Kay, Tupperware, Fuller Brush, Avon, and Amway. *Beyond personal sales, direct marketing employs five primary tools to achieve its objectives: (1) direct mail, (2) catalogs, (3) direct-response advertising, (4) telemarketing, and (5) internet direct response. -Direct Mail -Catalogs *A catalog is a multipage direct-mail (in print) publication that shows a variety of merchandise. Following the explosion of digital media, however, catalogs also evolved into easy-to-use online publications with immense offerings. -Direct Response Advertising *Direct-response advertising uses a variety of print, broadcast, and online media to deliver its offers. A classic example of the power of direct-response advertising is the "97-Pound Weakling" ads for the Charles Atlas body building mail-order courses, which created a multi-million-dollar business. -Telemarketing *Before telemarketing calls were greatly limited by government-supported do-not-call lists, more direct-marketing dollars were spent on telemarketing phone calls than on any other DRC medium. That's because telemarketing is a form of personal sales, but a lot less expensive. *A typical telemarketing campaign usually involves hiring a telemarketing company to make a certain number of calls using a prepared script. Callers work in call centers, which are rooms with large banks of phones and computers. Most calls are made from databases that contain prospects that were previously qualified on some factor, such as an interest in a related product or a particular profile. Occasionally cold calling is used, which means the call center staff is calling random numbers. This practice has a much lower response rate. -Internet Direct Response *The most exciting advances in internet direct response are found in the areas of mobile marketing and social media. With mobile phones, marketers are able to meet people 'where they are.' Social selling, also known as network marketing, utilizes the reach and persuasiveness of social media and its endless and continuous conversations. The network can expand exponentially as messages zing through cyberspace.

Global Strategic Decisions

-The problem of managing brand consistency limits most objectives to awareness and recall, two effective yet easily attainable marketing communication measures, although more specific objectives may be needed in individual markets. -Positioning is one of the key strategic elements that brands usually try to keep consistent from country to country. Particularly important is a good understanding of consumer buying motives in each market, which is almost impossible to develop without locally based consumer research. If analysis reveals that consumers' buying behavior and the competitive environment are the same across international markets, it may be possible to use standardized positioning throughout.

Difference between advertising and PR

-Public relations, like advertising, contributes significantly to brand perceptions. In integrated programs, advertising and public relations aim at selected targets with different but complementary messages. Advertising and public relations specialists share a joint responsibility to promote a brand, and at times their efforts converge. -Advertising creates consumer awareness and motivation that delivers sales for a brand. The goal of public relations specialists is to communicate with various stakeholders and manage the organization's image and reputation, creating positive public attitudes, and building strong relationships between the organization and its constituents. -Ultimately, the difference between the two is that public relations takes a longer, broader view of the importance of image and reputation as a corporate competitive asset and addresses more target audiences. Public relations and advertising also differ in how they use the media, the level of control they have over message delivery, and their perceived credibility. -Here are some specific differences between public relations and advertising *Media use: In contrast to buying advertising time and space, public relations people seek to persuade media gatekeepers to carry stories about their company. Gatekeepers include writers, producers, editors, talk-show coordinators, and newscasters. *Although public relations has a distinguished tradition, it is often mistaken for publicity, which refers to getting news media coverage. Publicity is focused on the news media and their audiences, which is just one aspect of public relations, and its carries no direct media costs. *Control: In the case of news stories, the public relations strategist is at the mercy of the media gatekeeper. There is no guarantee that all or even part of a story will appear. Public relations writes the story, sends it to the media, and crosses their fingers that this story will appear. To exert more control, some organizations use brand journalism, in which they can create content in media they own using journalism-style stories about their brand or organization. *See the Matter of Practice feature in the text for information concerning emerging employment opportunities in the public relations field. *Credibility: The public tends to trust the media more than they do advertisers. This consumer tendency to confer legitimacy on information simply because it appears in the news is called the implied third-party endorsement factor.

Sales Promotions

-Sales promotion is defined as the set of activities and communication programs that build excitement in the market for a limited period of time to stimulate trial, increase consumer demand, or improve product availability. -Sales promotions can be used to prompt three different audiences - consumers, sales representatives, and the trade - to take action. A traditional technique used is to offer an incentive to act. That incentive can take a variety of forms.

Single Source Research

-Single-source data are obtained by measuring various media/marketing exposure, purchase behavior, and loyalty for the same individual or household. Sources may include data from loyalty card purchases, scanner data, television or cable set-top boxes, personal people meters, and household demographics. Single-source data companies, such as Nielsen, arrange to have test commercials delivered to a select group of households within a market to compare changes in behavior to a control group of households. -The purchasing behavior of each group of householders is collected by scanners in local stores. Because brand communication is the only manipulated variable, this method permits a fairly clear reading of cause and effect. -Although fairly expensive, single-source research can produce dependable results. However, a drawback is that single-source research is better for short-term immediate sales effects and does not capture very well other brand-building effects

Components of a Campaign Plan

-Situation Analysis *Background research *SWOT: strengths, weaknesses, opportunities, threats *Key communication problem(s) to be solved -Key Strategic Campaign Decisions *Objectives *Target and engaging stakeholders *Brand positioning strategy -Marcom Mix *Platforms and Objectives *Synergy -Message Strategy *Key consumer and brand relationship insights *Message direction *Strategic consistency -IMC Media and Contact Points *Multimedia and multichannel *Multiplatform *Contact points, touchpoints, and critical touchpoints -Management and Campaign Controls *Budgeting *Evaluation of effectiveness

Sponsorships

-Sponsorships occur when companies support an event, such as a sporting event, concert, or charity, either financially or by donating supplies and services. Major sponsorships typically cost a lot of money and are used because they generate excitement for both consumer and trade audiences. -Sponsorships include sports, entertainment tours and attractions, festivals, fairs, and other annual events, and cause marketing, including promotions that support the arts. Cause marketing sponsorship is a growth area and has been found by a research firm to be growing faster than sports sponsorships

Spherical Branding

-Stan Richards, founder of the Dallas-based Richards Group, explains the process his agency goes through in planning an integrated campaign. He calls it spherical branding, which means no matter what your angle of vision, the brand always looks the same. We call this 360° planning. Richards' brief outline that follows is a good starting point for building a complete campaign plan. -Three Part Positioning: Target audience? Competitors? Most meaning brand benefit? -Brand Personality: Five or six words that define the brand's personality -Affiliation: What club do you join when you adopt the brand? -Brand Vision: A statement of the brand's 'highest calling'

Public Service Announcements

-The ads for charitable and civic organizations that run free of charge on television or radio or in print media are public service announcements (PSAs). These ads are prepared just like other print ads or commercials, and in most instances ad agencies donate their expertise and media donate time and space to run them. The Advertising Council represents a PR effort for the entire advertising industry and has produced most of the PSAs you see on television and in print. -Getting donated time and space is not easy. The PSA directors at various media receive a barrage of public-service campaigns every week on different issues and they have to choose which ones to run. There is no guarantee which markets will see the campaign elements and there is no guarantee that the same people will see the print and TV versions of a campaign. Some PSA campaigns do not get any airtime or print placements.

Crisis Management

-There is no greater test for an organization than how it deals with a crisis. The key to crisis management is to anticipate the possibility of a disaster and plan how to deal with the bad news and all the affected publics. -Preparing for a potential crisis helps organizations weather the storm. By analyzing the potential for emerging crises and identifying resources to cope with them, an organization can be ready to respond quickly and meaningfully. A quick response is essential. -An effective crisis plan can help both to avoid crises and ease the damage if one occurs. A plan outlines who contacts the various stakeholders who might be affected, who speaks to the news media, and who sets up and runs an on-site disaster management center

Contact Points and Touch Points

-The concept of contact points has redefined and broadened our understanding of media as a message delivery system. Contact points are the various ways a consumer comes in contact with a brand. This view of media moves from traditional advertising media and the media of various marketing communication functions to experiential contacts that in previous advertising-dominated media plans weren't generally considered to be media, such as word-of-mouth and customer service. -These opportunities are found in a huge variety of vehicles. The list is endless and can only be identified by studying the lives of customers to spot the points where they come in contact with a brand or an opportunity for a brand experience or brand conversation. -Contact point management, then, is the way marketing communication planners develop systems of message delivery, both to and from all key stakeholders. The objective is to maximize and leverage the good contact points and minimize the bad ones. -A brand touch point is a brand experience that delivers a message that touches emotions leading to positive and negative judgments. It has a more emotional impact that a regular contact point. A critical touch point is one that connects the brand and customer on an emotional level and leads to a yes or no decision about a brand relationship. -Principle: IMC planning is designed to maximize and leverage the good contact points and minimize the bad ones. -Principle: Touchpoints are contact points that touch our emotions. -Sometimes referred to as experiential marketing, touch-point strategies and programs use events and store design, among other means, to engage consumers in a personal and involving way. In experiential marketing, the goal is to intensify active involvement beyond the more passive activity of reading, viewing, and listening to traditional media.

Why executing global campaigns is more complex

-The execution of a global campaign is usually more complex than a national plan. The creative may need to be reshot with local models and settings, as well as language translation. Language is always a problem for a campaign that is dependent on words rather than visuals as the primary meaning carrier. A team of language experts may be needed to adjust the terms and carry over the meanings in the different languages. -Product names can even be a problem. Government approval of television commercials can be difficult to secure in some countries. As advertisers move into international and global advertising, they also face many of the same ethical issues that advertisers deal with in the United States. They may also have to deal with questions about the Americanization or westernization of local cultures. -Social responsibility is taken seriously in some countries and with the internet and email, consumer concerns can create a huge issue. For example, consumers in Spain, Italy, and the United States complained that the ad trivialized violence against women, and the many email complaints led the company to drop it.

Public relations programs that focus on relationships

-The key publics addressed by relationship management programs in public relations are media, employees, members, shareholders, others in the financial community, government, and the general public. Here are the specialty areas that focus on these relationship programs: *Media relations. The area that focuses on developing media contacts, that is, knowing who in the media might be interested in the organization's story, is called media relations. A successful relationship between a public relations person and editors and producers is built on a public relations person's reputation for honesty, accuracy, and professionalism. If that reputation is tarnished or lost, the public relations person can no longer function effectively as a liaison between a company and the media. *Employee relations. Programs that communicate information to employees are called employee relations. A related program is called internal marketing, which deals with communication efforts aimed at informing employees about marketing programs and encouraging their support. *Financial relations. All of the communication efforts aimed at the financial community, such as press releases sent to business publications, meetings with investors and analysts, and the annual report, are referred to as financial relations. *Public affairs. Corporate communication programs with government and with the public on issues related to government and regulation are called public affairs. Public affairs includes lobbying, which occurs when a company provides information to legislators in order to get their support and vote on a particular bill. It also includes communication efforts with consumer or activist groups who seek to influence government policies. Issue management is another term for this function. In addition to government relations, public affairs programs also monitor public opinion about issues central to the organization's interest and develop programs to communicate with the public about these issues. *Community relations. The scope of community relations has grown from a focus on the local community to encompass a larger meaning. This focus has expanded to include consideration of diverse communities, especially the underrepresented and underserved. *Companies can build community relations through cause marketing. When companies associate themselves with a good cause by providing assistance as well as financial support, the practice is called cause marketing. *Consumer relations. One area where advertising and public relations overlap is the growing field of consumer relations. It is defined as building relationships with people who buy things in the United States and elsewhere around the globe. Building sales and brand relationships are major objectives. *The greatest strength public relations contributes to an integrated marketing communication program is its potential to help organizations establish credibility in the eyes of consumers. Public relations uses unbiased, implied third party endorsement to communicate information about an organization's products and practices.

Key Communication Problems

-The key word in this section is analysis, or making sense of all of the data collected and figuring out what the information means for the future success of the brand. Planners must analyze the market situation for communication problems that affect the successful marketing of a product, as well as opportunities the marketing communication can create or exploit. An example of locating a timing opportunity is illustrated by the Special K "2-Week Challenge" discussed in the textbook that capitalized on consumers' goals to lose weight after the holidays. -IMC can solve only message-related problems such as image, attitude, perception, and knowledge or information. It cannot solve problems related to the price of the product, availability, or quality, although it can address the perception of these marketing mix factors. A campaign works if it creates the desired brand impression, influences people to respond, and separates the brand from the competition.

News Releases

-The news release is the primary medium used to deliver public relations messages to the various external media. Although the company distributing the news release controls its original form and content, the media decide what to present and how to present it. What the public sees, then, is not necessarily what the originating company had in mind, and so this form of publicity offers less control to the originating company. -The decision to use any part of a news release at all is based on an editor's judgment of its news value. News value is often based on timeliness, proximity, impact, or human interest. -News releases must be written differently for each medium, accommodating space and time limitations. Traditional journalism form is followed. The more carefully the news release is planned and written, the better the chance it has of being accepted and published as written. -The majority of news releases are delivered by email, although they can be delivered in a number of different ways. Sometimes a company is hired that specializes in distribution. Effective news releases for the internet should be brief and succinct. Recommendations for format are listed in the textbook. -Video news releases contain video footage for a television newscast. They are effective because they show target audiences the message in two different video environments: first as part of a news report and then later in an advertisement. Of course, there is no guarantee that such a release will be used.

360 degree communications

-Tom Duncan, one of the architects of IMC, explained that IMC practice originally focused on creating "one voice, one look" campaigns, but companies broadened that focus as they realized the need for greater consistency for all aspects of brand communication that lead to customer relationships. -IMC is a way of managing a brand with a singular vision of what the brand stands for. Unlike the short-term IMC campaign approach, it is a philosophy that delivers total communication over the life of a brand. It is called 360-degree communication because a unifying brand vision surrounds all of the brand's interactions with all of its stakeholders, and this vision must be shared by everyone involved with the brand.

Campaign Objectives

-Typically, a brand communication campaign has multiple objectives: an attitudinal objective may be to change brand perceptions while a behavioral objective may be to make people engage in some way with the brand. -Regardless of the number of objectives a company sets for a campaign, it is critical that such stated objectives be established up front because they provide the all-important framework for evaluating whether a campaign was a success. Setting objectives and establishing specific measures that will demonstrate success make campaign evaluation possible. -Principle: Campaign objectives and campaign evaluation work hand in hand. In the absence of clear campaign objectives, evaluation becomes a much murkier task.

Goal of Media Optimization

-When a brand manager optimizes the mix of IMC tools used, the resulting brand perception becomes stronger. One of the biggest challenges in media planning is media efficiency - that is, getting the most for the money invested. -The goal of media optimization is to optimize the budget, that is, to get the most impact possible with the least expenditure of money.

Online Communications Tools

-While the internet and social media have changed communications forever, they have not replaced human relationships as the essence of societal communication. Nor have the new techniques replaced human relationships as the essence of the practice of public relations, according to public relations practitioner and author Fraser Seitel. -Brand journalism, email, intranets (which connect people within an organization), extranets (which connect people in one business with its business partners), internet advertising and promotions, websites, social media such as blogs, Facebook, and Twitter have opened up avenues for public relations activities. -External Communication *Corporate websites have become an important part of corporate communication. These sites can present information about the company and open up avenues for stakeholders to contact the company. Website newsrooms distribute a company's press releases to the media and other interested stakeholders. -Internal Communication *Email is a great way for people at separate work sites to communicate. You can get a fast reply if people at the other end are checking their email regularly and it is inexpensive. A public relations downside is that email can be used in court. Some of the most damaging evidence the federal government presented against Microsoft in its 1998 antitrust suit came from email messages exchanged within the company.

Carryover and instantaneous effects of advertising

A University of Southern California professor reminds us that advertising not only has instantaneous effects (the consumer responds immediately) but also carryover effects (delayed impact). Any evaluation of campaign effectiveness needs to be able to track both types of effects over time. This means that ROI measures can remain subjective since brand managers must determine how long they will continue to compare results in markets after the campaign has ended

"Search and reapply"

A successful campaign conceived for national application is modified for use in other countries. Many companies have taken successful campaigns from one country and transplanted them around the world, a practice called search and reapply. This strategy provides additional motivation for local agencies, since it is a major ego boost when a local campaign is taken beyond its original country's borders.

Offers

All direct-marketing messages contain an offer, typically consisting of a description of the proposition (terms of sale, delivery, warranty information, membership, donation request) and its cost. In its offer, a successful message must communicate benefits by answering the enduring question: "What's in it for me?" Also, many DRC offers include an incentive for responding quickly.

Cross Promotions

Another type of cooperative marketing program is a tie-in or cross-promotion, which uses associations between complementary brands. The intent is to spur impulse sales for both products. Ads are also designed to tie the two products together, and the sponsoring companies share the cost of the advertising

Databases

At the heart of direct-response communication and other types of promotion that support interaction with consumers are massive lists called databases. Databases keep track of current customers and prospects, including their contact information and characteristics that predict their willingness to respond.

Tracking Studies

Communication tracking studies are conducted from the time a campaign is launched until after it has concluded. They involve the collection of information from random samples of consumers who live in markets where they were exposed to a campaign. Tracking studies are relevant to this chapter's discussion because those measures collected at the conclusion of a campaign cycle are analyzed particularly closely by brand managers. This analysis is used not only to determine campaign impact, but also to determine if the campaign's core message has the staying power to be used for another cycle.

2 Sides of Direct Response Marketing

IDK

Pretesting

In chapter 6, we discussed message development testing; specifically, how concept testing, semiotic analysis, and pretesting are used to make a campaign as strong as possible before it 'goes live' in the marketplace. Ideally the result of preliminary testing should be available before large sums of money are invested in finished work or in media buys.

Basic Concepts of IMC

Integrated marketing communication is an important business concept as well as a set of principles and practices. This chapter begins with key concepts that separate IMC plans and programs from more traditional advertising and other marketing communication areas.

Norms

Many research companies, in addition to some large agency research departments, specialize in measuring the various dimensions of effectiveness described in Table. 17.1. The most successful of these companies have conducted so many tests that they have developed norms for common product and service categories. Norms allow the brand agency managers to determine whether a particular campaign message has performed above or below the category average in terms of "moving the needle" on items such as those listed in Table 17.1.

Prescription drugs

Marketers need to consider carefully what they choose to produce and advertise. Some key areas of concern include controversial products, unhealthy or dangerous products such as alcohol and tobacco, and prescription drugs. Although the decision to produce a product lies with the marketing department, advertising is frequently in the spotlight because of its visibility.

Puffery

Not all exaggerated claims are considered misleading. Puffery is defined as advertising or other sales representations that praise the item to be sold with subjective opinions, superlatives, or exaggerations in a vague and general way, while stating no specific facts. Since exaggerated 'puffing' claims are legal, the question of puffery is mainly an ethical one. According to the courts, consumers expect exaggerations and inflated claims in advertising, so reasonable people wouldn't believe that these statements are literal facts.

RPIE

Planning how to use these tools for a public relations campaign is similar to planning an advertising or IMC campaign. An acronym for the parts of a strategic plan for public relations is RPIE, short for Research, Planning, Implementation, and Evaluation.

Publicity

Research has shown that in the face of bad publicity, advertising only fans the flames and makes the company appear unconcerned. Communicators must find ways to authentically connect with their audiences.

Deceptive Advertising

The FCC is designed to protect the public interest in radio and television broadcast communications and can issue and revoke licenses to broadcasting stations. The FCC has the power to ban messages, including ads, that are deceptive or in poor taste. It monitors only advertisements that have been the subject of complaints and works closely with the FTC to eliminate false and deceptive advertising.

Aided and Unaided Recall

The first type of question is called unaided recall because the particular brand is not mentioned. The second question is an example of aided recall, in which the specific brand name is mentioned. The answers to the third set of questions are written down verbatim.

Fulfillment

The goal of fulfillment operation is to respond quickly to customers' responses by getting the product to those who respond. Fulfillment includes all the back-end activities of processing the transaction or interaction.

Implied third party endorsement

The greatest strength public relations contributes to an integrated marketing communication program is its potential to help organizations establish credibility in the eyes of consumers. Public relations uses unbiased, implied third party endorsement to communicate information about an organization's products and practices.

Blogola and Flogging

The increasing prominence of digital media raises another ethical dilemma. Is it acceptable for company representatives to pose as consumers or pay bloggers to post endorsements as customer reviews online? The Word of Mouth Association says no. Its ethics code explicitly prohibits consumers from taking cash from manufacturers, suppliers, or their representatives for making recommendations, reviews or endorsements, unless full disclosure is provided. We'll probably see lots more examples of blogola, also referred to as flogging (sponsored conversations) in the future.

Behavioral Targeting

The practice of behavioral marketing means that individuals are targeted based on what they have done in the past, such as products they've bought, shows they have watched, and sites they have visited. Messages targeted on behavior are more than twice as effective as more general advertising in converting website visitors to buyers.