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Advertising And Promotion

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  • 1. Advertising and Sales Promotion Strategy
  • 2. Advertising Personal Selling The Marketing Communications Mix Any Paid Form of Nonpersonal Presentation by an Identified Sponsor. Sales Promotion Short-term Incentives to Encourage Trial or Purchase. Public Relations Direct Marketing Direct Communications With Individuals to Obtain an Immediate Response. Protect and/or Promote Company’s Image/products. Personal Presentations.
  • 3. Advertising
    • PROS
    • Message can be repeated for exposure
    • Very expressive -- can be used to create image
    • Can reach a geographically diverse audience
    • CONS
    • Can be tuned out
    • Can be expensive
    • Hard to measure results
  • 4. Personal Selling
    • PROS
    • Interactive - can be customized
    • Allows a relationship to develop
    • Better understanding of customer needs
    • Buyer will pay more attention to the message
    • CONS
    • Expensive
    • Can only reach a small number of consumers
  • 5. Publicity
    • PROS
    • Very believable
    • “Free advertising”
    • CONS
    • Hard to implement
    • Hard to control
    • Hard to measure its effectiveness
  • 6. Sales Promotion
    • PROS
    • Attract attention
    • Strong incentives will induce consumers to act
    • Quick response
    • Encourages trial of product
    • CONS
    • Can create price sensitive customers
    • Can be costly
    • Easy for competition to imitate
  • 7. Channels of Sales Promotions MANUFACTURER RETAILER Trade Promotions CONSUMER Consumer Promotions Push Push Pull Retail Promotions
  • 8. Consumer Promotion -- PULL Consumer-Promotion Objectives Consumer-Promotion Tools Point-of-Purchase Displays Premiums Price Packs Cash Refunds Coupons Samples Games Sweepstakes Contests Advertising Specialties Entice Consumers to Try a New Product Lure Customers Away From Competitors’ Products Get Consumers to “Load Up’ on a Mature Product Hold & Reward Loyal Customers Consumer Relationship Building Patronage Rewards
  • 9. Trade-Promotion Objectives Trade-Promotion Tools Persuade Retailers or Wholesalers to Carry a Brand Give a Brand Shelf Space Promote a Brand in Advertising Push a Brand to Consumers Trade Promotions -- PUSH Specialty Advertising Items Contests Free Goods Buy-Back Guarantees Allowances Price-Offs Patronage Rewards Push Money Discounts Premiums Displays
  • 10. Identify and analyze target market Define Advertising objectives Create advertising platform Determine advertising appropriation Evaluate advertising effectiveness Execute campaign Create advertising messages Develop Media plan
  • 11. Target market selection
    • This is the single most important decision, because all other decisions build upon it.
      • Is the budget sufficent?
      • Is the media message correct?
      • Are the media outlets appropriate?
    • All of these questions will depend upon the target audience’s size, motivations, concerns, etc.
  • 12. Start by describing with demographic data Target market of a national chain of child day-care centers: “Female household heads aged 25 to 34 employed outside the home who have one or more children under age 6 at home and live or work within within 10 miles of a current center.”
  • 13. But need to add life-style and psychographic profile data “This group aspires to have both a successful career and family. These women are serious about child-rearing responsibilities and are avid readers of books and articles on the subject. They are primarily outer-directed Emulators and Achievers in terms of VALS categories. They are concerned about where and with whom they leave their children. Heir child’s “experience” is of crucial importance, while cost of the service is an important, but secondary, concern.”
  • 14. Identify and analyze target market Define Advertising objectives Create advertising platform Determine advertising appropriation Evaluate advertising effectiveness Execute campaign Create advertising messages Develop Media plan
  • 15. Problem with using $ of revenue or units sold as an advertising objective
    • Advertising is only one of many factors impacting whether a sale occurs.
    • Advertising has a carryover / delay effect that extends beyond a calendar or fiscal year.
  • 16. Response Hierarchy Models Communi- cations Model AIDA Model Innovation- Adoption Model Hierarchy-of- Effects Model Stages Cognitive stage Affective stage Behavior stage Awareness Trial Adoption Interest Evaluation Purchase Liking Preference Conviction Awareness Knowlege Attention Interest Desire Action Behavior Attitude Intention Exposure Reception Cognitive response
  • 17. Advertising Objectives
    • Specific Communication Task
    • Accomplished with a Specific Target Audience
    • During a Specific Period of Time
    Example advertising objective To increase from 12% to 35%, within one year , the number of homemakers, age 25-55, that list our brand in unaided recall when asked to name 5 different instant coffee brands.
  • 18. Informative Advertising Build Primary Demand Persuasive Advertising Build Selective Demand Reminder Advertising Keeps Consumers Thinking About a Product. Advertising Objectives
    • Specific Communication Task
    • Accomplished with a Specific Target Audience
    • During a Specific Period of Time
  • 19. Identify and analyze target market Define Advertising objectives Create advertising platform Determine advertising appropriation Evaluate advertising effectiveness Execute campaign Create advertising messages Develop Media plan
  • 20. Advertising platform A statement of the basic idea or issues to be communicated in the advertisement. A general notion of the media type (e.g., TV, radio, newspapers, etc.)
  • 21. Identify and analyze target market Define Advertising objectives Create advertising platform Determine advertising appropriation Evaluate advertising effectiveness Execute campaign Create advertising messages Develop Media plan
  • 22. Issues to consider in setting advertising budget Product Life Cycle Market share Competitive clutter Product Substitutability
  • 23. Percentage-of-Sales Method Setting Promotion Budget at a Certain % of Current or Forecasted Sales Affordable Method Setting Promotion Budget at the Level the Company Thinks They Can Afford. Competitive-Parity Method Setting Promotion Budget to Match Competitors’ Outlay Objective-and-Task Method Setting Promotion Budget by Defining Objectives, Tasks & Costs. Setting Advertising Budgets
  • 24. Identify and analyze target market Define Advertising objectives Create advertising platform Determine advertising appropriation Evaluate advertising effectiveness Execute campaign Create advertising messages Develop Media plan
  • 25. Issues in Selecting Advertising Media Reach, Frequency, and Impact Major Media Type Options Media Habits of Target Consumers Nature of the Product Type of Message Cost Specific Media Vehicles Specific Media Within a Given Type (e.g., E.R.) Balance Media Cost Against Media Factors: Audience Quality & Attention, Editorial Quality Media Timing Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing
  • 26. Profiles of Major Media Types Newspapers Advantages: Flexibility, timeliness; good local market coverage; high believability Limitations: Short life; poor reproduction quality; small pass-along audience Television Advantages: Combines sight, sound, motion; high attention; high reach; appealing to senses Limitations: High absolute costs; high clutter; fleeting exposure; less audience selectivity Direct Mail Advantages: Audience selectivity; flexibility, no ad compe- tition within same medium; allows personalization Limitations: Relative high cost; “junk mail” image
  • 27. Radio Advantages: Mass use; high geographic and demographic selectivity; low cost Limitations: Audio only; fleeting exposure; lower attention; fragmented audiences Magazines Advantages: High geographic and demographic selectivity; credibility and prestige; high-quality reproduction; long life; good pass-along readership Limitations: Long ad purchase lead time; no guarantee of position Outdoor Advantages: Flexibility; high repeat exposure; low cost; low message competition Limitations: Little audience selectivity; creative limitations Profiles of Major Media Types
  • 28. Issues in Selecting Advertising Media Reach, Frequency, and Impact Major Media Type Options Media Habits of Target Consumers Nature of the Product Type of Message Cost Specific Media Vehicles Specific Media Within a Given Type (e.g., E.R.) Balance Media Cost Against Media Factors: Audience Quality & Attention, Editorial Quality Media Timing Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing
  • 29. Issues in Selecting Advertising Media Reach, Frequency, and Impact Major Media Type Options Media Habits of Target Consumers Nature of the Product Type of Message Cost Specific Media Vehicles Specific Media Within a Given Type (e.g., E.R.) Balance Media Cost Against Media Factors: Audience Quality & Attention, Editorial Quality Media Timing Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing
  • 30. Classification of Advertising Timing Patterns Month Number of messages per month Concen- trated (1) (2) (3) Level Rising Falling Alternating (4) Continuous (8) (7) (6) (5) (9) Inter- mittent (10) (11) (12) (9)
  • 31. Identify and analyze target market Define Advertising objectives Create advertising platform Determine advertising appropriation Evaluate advertising effectiveness Execute campaign Create advertising messages Develop Media plan
  • 32. Factors Impacting the Receipt of a Message Selective Attention Selective Distortion Selective Retention
  • 33. Message Source Expertise, Trustworthiness, Likeability Issues to Consider in Designing the Message Message Structure Draw Conclusions Argument Type Argument Order Message Content Rational Appeals Emotional Appeals Moral Appeals
  • 34. Typical Message Execution Styles Spokesperson Slice of Life Scientific Evidence Lifestyle Humor Fantasy Musical Real or animated Symbol Mood or Image Comparisons Demonstration
  • 35. Stylistic Approaches DRAMA LECTURE COMBINATION
    • Can present many points quickly
    • Cost less than drama to produce
    • Audience can become distracted
    • Discount all or part of the facts
    • Characters speak to each other – not the audience
    • Consumers must infer lessons
    • Conclusions are more likely to be accepted
  • 36. Common Appeals Vanity and egotism Profit motive Fun and pleasure Health concerns Convenience Love Fear Admiration/worship Sex Common Message Appeals
  • 37. Identify and analyze target market Define Advertising objectives Create advertising platform Determine advertising appropriation Evaluate advertising effectiveness Execute campaign Create advertising messages Develop Media plan
  • 38. Identify and analyze target market Define Advertising objectives Create advertising platform Determine advertising appropriation Evaluate advertising effectiveness Execute campaign Create advertising messages Develop Media plan
  • 39. Advertising Program Evaluation Advertising Evaluation Communication Effects Is the advertisement meeting the specific communication objective? Sales Effects (to the extent possible) Is the Ad Increasing Sales?

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