Advertisement mgmt


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Advertisement mgmt

  1. 1. Tools of Promotion - Advertising, Sales Promotion, PublicRelation & Direct MarketingThe 4 Ps of marketing are product, price, place and promotion. All four of these elements combine to make a successful marketing stratelooks to communicate the company’s message across to the consumer. The four main tools of promotion are advertising, sales promrelation and direct marketing.AdvertisingAdvertising is defined as any form of paid communication or promotion for product, service and idea. Advertisement is not only used by cmany cases by museum, government and charitable organizations. However, the treatment meted out to advertisement defers from an oorganization.Advertising development involves a decision across five Ms Mission, Money, Message, Media and Measurement.Mission looks at setting objectives for advertising. The objectives could be to inform, persuade, remind orreinforce. Objective has to follow the marketing strategy set by the company.Money or budget decision for advertising should look at stage of product life cycle, market share andconsumer base, competition, advertising frequency and product substitutability.Message’s development further is divided into four steps, message generation, message evaluation andselection, message execution, and social responsibility review.Once the message is decided the next step is finalizing the media for delivering the message. The choiceof depends on reach of media, frequency of transmission and potential impact on customer. Based onthis choice of media types are made from newspaper, television, direct mail, radio, magazine and theinternet. After which timing of broadcast of the message is essential as to grab attention of the targetaudience.Checking on the effectiveness of communication is essential to company’s strategy. There are two typesof research communication effect research and sales effect research.Sales PromotionPromotion is an incentive tool used to drive up short term sales. Promotion can be launched directed atconsumer or trade. The focus of advertising to create reason for purchase the focus of promotion is tocreate an incentive to buy. Consumer incentives could be samples, coupons, free trial and demonstration.Trade incentive could be price off, free goods and allowances. Sales force incentive could be convention,trade shows, competition among sales people.Sales promotion activity can have many objectives, for example, to grab attention of new customer,reward the existing customer, increase consumption of occasional users. Sales promotion is usuallytargeted at the fence sitters and brand switchers.Sales promotional activity for the product is selected looking at the overall marketing objective of thecompany. The final selection of the consumer promotional tools needs to consider target audience,budget, competitive response and each tool’s purpose.Sales promotion activity should under-go pretest before implementation. Once the activity is launched itshould be controlled as to remain within the budget. Evaluation program is a must after implementation ofthe promotional scheme.Public RelationsCompanies cannot survive in isolation they need to have a constant interaction with customers,employees and different stakeholders. This servicing of relation is done by the public relation office. Themajor function of the public relation office is to handle press releases, support product publicity, createand maintain the corporate image, handle matters with lawmakers, guide management with respect topublic issues.
  2. 2. Companies are looking at ways to converge with functions of marketing and public relation in marketingpublic relation. The direct responsibility of marketing public relation (MPR) is to support corporate andproduct branding activities.MPR is an efficient tool in building awareness by generating stories in media. Once the story is incirculation MPR can establish credibility and create a sense of enigma among sales people as well asdealers to boost enthusiasm. MPR is much more cost effective tool than other promotional activities.Direct MarketingThe communication establishes through a direct channel without using any intermediaries is referred toas direct marketing. Direct marketing can be used to deliver message or service. Direct marketing hasshown tremendous growth in recent years. The internet has played major part in this growth story. Directmarketing saves time, makes an experience personal and pleasant. Direct marketing reduces cost forcompanies. Face to face selling, direct mail, catalog marketing, telemarketing, TV and kiosks are mediafor direct marketing.Advertising Promotional ToolsCompanies and small business owners can use many advertising promotional tools,including magazine ads, Internet marketing and direct mail. Social media sites such asFacebook, MySpace and Twitter also provide advertising sources for savvy businessowners. The key in advertising is finding cost-effective ways to reach potentialcustomers. Companies can also use free advertising by writing articles or listing theirwebsites in search engines like Yahoo and Google.Display AdsThe first step in creating a display ad is knowing your key objective: Do you want toproduce leads or orders? Mail-order companies, for example, will often ask formoney directly in an ad. These direct-response ads will usually require ample spacefor describing a particular product. Large corporations will usually design ads to pullbusiness leads or attract customers.Display ads usually contain a heading, copy and a contact source. A display adshould follow the AIDA (attention, interest, desire, action) principle of advertising,according to advertising experts at Dave Dolak, a business-to-business marketingprofessional. Headings, pictures and illustrations should attract the readersattention. The body of the ad or copy should build interest by highlighting keybenefits for the readers. Ultimately, the ad should increase the readers interest andprompt him to make a purchase.Direct Mail MarketingDirect mail is one of the most cost-effective types of advertising. Direct mail is alsohighly targeted. You can reach specific buying groups with direct mail. For example,if you sell proteins or sports nutritional products, you can purchase mailing lists ofconsumers who buy these products. One mailing list source is the Direct MarketingAssociation.A direct mail package usually includes a sales letter, brochure and order form. Createa two-to-four-page sales letter that highlights the key benefits of your product orservice. Include a colorful brochure that shows key features of your product orservices you offer. Key all orders forms with a code so you can track the effectivenessof your campaign. For example, you can use "Suite 1" in your address to keep track of
  3. 3. your first 5,000-piece mailing. Add up the orders produced from that mailing, thensubtract your mailing expenses to calculate your profit.Search Engine OptimizationSearch engine optimization is for companies that use websites in their advertising.Use search engine optimization if you want to reach national and internationalcustomers. The objective of search engine optimization is to appear on the first pageof Google or Yahoo results when people search for your type of business. Hire asearch engine optimizer. Most Web designers will either know a search engineoptimizer or offer the services themselves. Help your search engine optimizerdevelop three-to-five-word phrases that best describe your products or services.Include phrases that are frequently used in your website, which will enhance yourranking status.Developing an Advertising CampaignIdentify and Analyze the Advertising Target.The group of people for which the advertisement is aimed at, may direct campaign atonly a portion of the target market.Research and analyze advertising targets to establish an information base for acampaign. Generally increase advertisers knowledge about their target--the moreeffective the campaign.David Ogilvy Award focuses on rewarding research in advertising: 1994 finalists: Nabiscos Oreo Cookie campaign, nostalgic feeling re: cookies, slogan "Unlock the magic!"....Winner!! AT&T "You will campaign", customers did not feel AT&T was innovative Goodyear, Aquatred ads, customer concerns were related to tires traction ability in the wet.Defining Objectives.What the firm hopes to accomplish from the campaign, should be clear, precise andmeasurable, can help measure the success at the end of the campaign. Use abenchmark.At what stage are the target market in the Product Adoption Process. What are thegoals of the increase purchases, to generate traffic in the retail storeetc.Demand oriented objectives vs. image oriented objectivesIncrease product/brand awarenessChange consumer attitudes...reposition productIncrease customer knowledge of product features
  4. 4. Determine the Advertising AppropriationTotal amount of money that a marketer allocates for advertising in a specific period. Objective and Task Approach determine the objectives, then list the tasks needed to achieve the objectives. Percent of Sales Approach Sales create marketing?! What happens when the products sales are declining. Competition Matching Approach Other companies have different advertising objectives. Arbitrary Approach determined by high level executives, Delaware MBA ProgramCreating an Advertising MessageA function of the products features, uses and benefits.Must be aware of the characteristics of target market, different message to differenttarget market.Dependant on objective of the campaign.Can use a Spokesperson. Celebrities 1993 ranked: 1. Cindy Crawford...Pepsi Cola, Revlon 2. Candice Bergen...Sprint (1/3 believe either AT&T or MCI ;)...dont want the personality to overwhelm the brand) 3. Bill Cosby...JelloSports: 1. Michael Jordon, 6th time in 7 yearsComponents of the advert: Headline Illustrations SubHeadline BodyCopy SignatureCopy verbal portion of the advert. Includes all aspects except the illustrations.Attempts to move the reader through: 1. Awareness 2. Interest 3. Desire 4. Action
  5. 5. Developing a Media PlanSets forth the exact media vehicles to be used and dates and times of ads.Effectiveness of plan determines how many people in the advertisers target will beexposed to the message. Need to select the media to be used and dates and timesads appear.Primary goal--reach the highest # of people (within the advertisers target) per $ spent.Achieve the appropriate message reach and frequency for the target audience whilestaying within the budget.Various Media TV Channels/programs, Baseball = male 18-49 Academy awards = female 18- 49 Sponsor cable channels, Reebok with Cable Health Club "Reebok University" Radio, Becoming more segmented, also allowed to own 2 FM stations in one area. Magazines, Lead time considerations, also pass along rate, subscription plus news agent sales. Newspapers, Local vs. national Direct Mail, Evolution of Database marketing, able to narrowly target with DM. Outdoor, Billboards Atlanta is most billboard per capita city, Transit...City Buses, Blimps...At Events Placed-Based, Schools, also sponsor educational programs, Supermarkets, Health Clubs, Dining Halls. Intrusive..."Only go where you are wanted!!". Target market is known...not assumed. Electronic, WWW, et al.Need to select general media, IE Newspapers, then subclass, IE Philadelphia Inquirer.Look at location and demographics of advertisers target, use media that appeals to thisgroup.Content of message to present affects the choice of media.Cost of media, use cost comparison indicator-within specific media (IE between twomagazines), CPM "cost per thousand" for magazines.-cost, total cost; per reader/viewer cost-reach, #viewers/readers in the audience, print media includes circulation and pass on,more for magazines than newspapers-waste, portion of marketers audience that are not in the target market-frequency, how often can the medium be used/changed, i.e., TV radio hourly,newspapers daily, Yellow pages yearly.-message performance, number of exposures each advertisement generates and howlong it remains available to the audience; outdoor ads, many exposures/message,
  6. 6. magazines retained for a long period of time.-clutter, # of advertisements contained in a single program/issue of a medium. TV adsmoving to 15 secs. each is increasing clutter. Some moving to 2 minutes...or even 5,especially if there is a complex maybe!!Primetime: CBS 13mins 52 secs of non programming time ABC 13mins 24 secs Daytime 8-19 mins ESPN 13mins 28 secs Discovery 15mins 20 secsExecuting the CampaignRequires extensive planning and coordination. Advertising Agencies, productioncosts, research organizations, media firms, printers, photographers, and commercialartists etc. Detailed schedules are needed to insure everything is accomplished ontime. (video).Evaluating the effectiveness of the campaignMeasure the achievement of the objectives, assessing the effectiveness of the copyetc., and the media.Typical consumer is bombarded with about 300 advertising messages/day, 109,500per year. 80% of people cannot remember a typical ad one day after seeing it. NEEDCREATIVITY!?!?Pretests before campaign, use a consumer jury.During the campaign, "inquiries"-coupons numbered.Posttests after the campaign, use consumer surveys to measure the change incommunication objectives, change in sales or market share. Cannot be precise due tothe environment.Use recognition tests to determine the degree to which consumers recognizeadvertisements.Recall evaluation, consumers are asked what they have seen lately. Aided or unaided.