Marketing 18 05 2015 Martin Samek martin samek lbs

Marketing 18. 05. 2015 Martin Samek martin. samek@lbs. ac. at

Measuring Advertising Return (1) Reach, Frequency and GRPs • Reach: the share of your target that has seen your ad at least once • Frequency: the average number of times target saw the ad (within set duration) • GRP (Gross Rating Point): Reach X Frequency Ad reached 25% of target an average of 3 times – the ad delivered 75 GRPs Lauder Business School Marketing/ Session 10

Measuring Advertising Return (2) Reach, Frequency • For reach, the goal is to expose as many of the target customers as possible Find most cost efficient media for reaching target • For frequency, it depends on the goal Awareness and memory can probably be attained with a few ads Persuasion may take more If ad/product is readily understood, wear-out may occur Lauder Business School Marketing/ Session 10

Media Planning (1) Strengths of Media • TV ads are most expensive yet yield the largest reach • Magazines have broad appeal or can be targeted • Radio and newspapers are often purchased nationally, but can be purchased for local markets Lauder Business School Marketing/ Session 10

Media Planning (2) • Radio, newspapers, and magazines are less expensive than TV, but they also deliver smaller audiences • Billboards, bus ads, yellow page ads, etc. are relatively inexpensive and effective in covering local number • Magazines require long lead times for production but have nice reproduction quality Lauder Business School Marketing/ Session 10

Media Planning (2) • Newspapers and magazines are nonintrusive but viewers can ignore ads • Online advertising and direct mail have the best customization options • Online ads are inexpensive and can be targeted, yet, penetration isn’t 100% • Direct mail is relatively inexpensive and targeted, but it is not efficient (junk mail) Lauder Business School Marketing/ Session 10

Media Planning (1) TV/radio – Cost per second • Superbowl USD 150, 000. – per second or USD 5 M per 30 seconds spot • ORF 1 or 2 EUR 60. – to 250. – (pricelist) up to EUR 900. - • OE 3 EUR 4. – to 140. — • ARD EUR 85. – to 550. – (pricelist) up to EUR 1, 500. -Lauder Business School Marketing/ Session 10

Media Planning (2) Newspaper • Kurier • Die Zeit 1/1 page EUR 26, 000. -- 1/8 page EUR 4, 500. -1/1 page EUR 43, 000. -- 1/4 page EUR 13, 000. -- • Special Interest Magazine • Homes and Gardens (International) 1/1 page EUR 20, 000. - • Powder Magazine 1/1 page EUR 23, 000. — Lauder Business School Marketing/ Session 10

Integrated Marketing Communications IMC: marketing messages must be seamlessly • integrated across media • Positive relationship between IMC and good • brand outcomes • • • High awareness, brand loyalty, sales, etc. Some elements should be consistent, some should vary based on the strengths of the various media • Difficult to implement because ad agencies are not full • service providers Lauder Business School Marketing/ Session 10

Integrated Marketing Communications • Which companies do effective IMC? • Toyota • Hornbach Lauder Business School Marketing/ Session 10

Public Relations • PR communications are the attempt of an organization to reach • Customers, suppliers, stockholders, government officials, employees, general community • PR’s intention is to convey a positive image and to educate a constituency about the company’s objectives • Generate goodwill on behalf of the company Lauder Business School Marketing/ Session 10

Public Relations Agencies/Departments • Issue press kits - news releases when anything “newsworthy” is happening • Features news (e. g. , product launch), company information, bios, history, etc. • Maintain information on web site • Arrange events • Speaking engagements, sponsorships, philanthropy, etc. Lauder Business School Marketing/ Session 10

Publicity Communication tool that the company doesn't pay for • It has the appearance of objectivity • PR can prepare press releases, but there is no guarantee that they will be picked up • Publicity can be negative or positive because companies cannot directly control it Lauder Business School Marketing/ Session 10

Publicity Examples: • Designer clothes worn by celebrity in Oscar night • Company receives Award of Chamber of Commerce etc. • Wine with positive critics in the special interest press • … Lauder Business School Marketing/ Session 10