Marketing Management

Henry O. Liwag

Top 10 Concepts

Mass communication is the term used to describe the academic study of the various means by which individuals and entities relay information through mass media to large segments of the population at the same time. It is usually understood to relate to newspaper and magazine publishing, radio, television and film, as these are used both for disseminating news and for advertising. Mass communication research includes media institutions and processes such as diffusion of information, and media effects such as persuasion or manipulation of public opinion.

Concept 1

The key essentials of Advertising (5 Ms)

Developing an advertising program involves a five step processknown as the 5Ms

Mission (set advertising goals)

Money (budget utilization)

Message (choose the advertising message and creative strategy)

Media (decide on the media)

Measurement (evaluate impact and sales effects).

Concept 2

Marketing managers can utilize the 4 mass communication tools to improve a certain brand or product:

(a) Sales promotion consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.

(b) Public relations (PR) involve a variety of programs designed to promote or protect a company’s image or its individual products.

(c) Events and experiences are a means to become part of special and more personally relevant moments in consumers’ lives.

(d) Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

Concept 3advertising goals should be precise and congruent with a specific audience in a specific period of time and should correspond to different stages in the hierarchy-of-effects.

(IT IS A MARKETING TERM FOR THE SEQUENCE OF FIVE STEPS A CONSUMER passes through from the initial exposure to a product or advertisement to the purchase decision)Awareness , interest, evaluation, conviction, and purchase

Advertising objectives should be :(1)Informative, (2) persuasive, (3) reminding,(4) reinforcing

Concept 4emphasis on advertising budget

five factors to consider when setting the advertising budget:•stage and the product life cycle: new products need more advertising budgets to build awareness and to gain consumer trial.•market share and consumer base: less budget s to reach consumers of a widely used brand than to reach consumers of low-share brands•competition and clutter: in a market with a large number of competitors and high advertising spending, a brand must advertise more budgets to be heard•advertising frequency: the number of competitors needed to put across the brand’s message to consumers has the impact to more advertising budget.•product substitutability: brands in less-well-differentiated like product classes(soft drinks, banks) require more adv. Budgets to establish different image.

Concept 5Developing the right advertising campaign

In designing and evaluating an ad campaign, marketers employ both art and science to develop the message strategy or positioning of an ad. Advertisers go through three steps:.Message generation and evaluation: to generate fresh insights and avoid using the same appeals as others .Creative development and execution: the ad’s impact depends not only on what is said, but on how it is said on particular media.Legal and social issues: advertisers and their agencies must be sure advertising does not overstep social and legal norms. Public policy makers have developed a substantial body of laws and regulations to govern advertising.

Concept 6Capitalizing on media timing and alocation

Effective media timing options depend on the campaign objectives in relation to : (1) the nature of the product, (2) target costumers and (3) distribution channels.The timing pattern should consider three factors:•Buyer turnover expresses the rate at which new buyers enter the market.•Purchase frequency is the number of times during the period that the average buyer buys the product.•Forgetting rate is the rate at which the buyer forgets the brand.

Concept 7

In using sales promotion, a Company must establish its objectives, select the tools, develop the program, pretest the program, implement and control it, and evaluate the results.

Some consumer promotion tools are :

•manufacturer promotions, for instance in the auto industry, Rebates, gifts to motivate test-drives and purchases, and high-value trade-in credit.

• retailer promotions include price cuts, feature advertising, retailer coupons, and retailer contests or premiums.

Concept 8

Sponsorship of events and other exposures can be especially effective as a marketing tool and can also broaden and deepen a company’s relationship with the target market.

event creation is a particularly important skill in publicizing fund-raising drives for non-profit organizations. Fund-raises have developed a large repertoire of special events, including anniversary celebrations, art exhibits, auctions, benefit evenings, bingo games , book sales, cake sales, contests, dances, dinners, fairs, fashion shows, parties in unusual places, rummage sales , tours, and walkathons.

Concept 9

Companies must relate constructively to customers, suppliers, and dealers, it must also relate to a large number of interested publics.

A public is any group that has an actual or potential interest in or impact on a company’s ability to achieve its objectives.

Public relations (pr) includes a variety of programs to promote or protect a company’s image or individual products.

the wise company takes concrete steps to manage successful relations with its key publics. Most companies have a public relations department that monitors the attitudes of the organization’s public and distributes information and communications to build good-will.

Concept 10

Innovative marketing public relation (mpr) reinforces corporate or product promotion and image making. Mpr like financial pr and community pr, serves a special constituency, the marketing department.

The old name for mpr was publicity, the task of securing editorial space – as opposed to paid space – in print and broadcast media to promote or “hype” a product, service, idea, place, person, or organization.

summary:

advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Advertisers include not only business firms but also charitable, nonprofit, and government agencies. developing an advertising program is a five-step progress: (1) set advertising objectives; (2) establish a budget; (3) choose the advertising message and creative strategy; (4) decide on the media; and (5) evaluate communication and sales effects. sales promotion consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade. events and experiences are a means to become part of special and more personally relevant moments in consumers’ lives. Involvement with events can broaden and deepen the relationship of the sponsor with its target market, but only if managed properly. public relation (pr) involves a variety of programs designed to promote or protect a company’s image or its individual products. Many companies today use marketing public relations (mpr) to support the marketing department in corporate or product promotion and image making. Mpr can affect public awareness at a fraction of the cost of advertising and is often much more credible.