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  2. 2. Chapter Questions• What steps are involved in developing an advertising program?• How should sales promotion decisions be made?• What are the guidelines for effective brand-building events and experiences?• How can companies exploit the potential of public relations and publicity?
  3. 3. What is Advertising?Advertising is any paid form of nonpersonalpresentation and promotion of ideas, goods, or services by an identified sponsor.
  4. 4. Procter & Gamble’sAdvertising History
  5. 5. Figure 18.1 The Five M’s of Advertising
  6. 6. Advertising ObjectivesInformative Persuasive advertising advertising Reminder Reinforcementadvertising advertising
  7. 7. Factors to Consider in Setting an Advertising Budget Stage in the product life cycle Market share and consumer base Competition and clutter Advertising frequency Product substitutability
  8. 8. Developing the Advertising Campaign• Message generation and evaluation• Creative development and execution• Legal and social issues
  9. 9. TelevisionAdvantages Disadvantages• Reaches broad spectrum of • Brief consumers • Clutter• Low cost per exposure • High cost of production• Ability to demonstrate • High cost of placement product use • Lack of attention by viewers• Ability to portray image and brand personality
  10. 10. Print AdsAdvantages Disadvantages• Detailed product • Passive medium information • Clutter• Ability to • Unable to communicate user demonstrate product imagery use• Flexibility• Ability to segment
  11. 11. Print Ad Components Picture HeadlineCopy Signature
  12. 12. Print Ad Evaluation Criteria• Is the message clear at a glance?• Is the benefit in the headline?• Does the illustration support the headline?• Does the first line of the copy support or explain the headline and illustration?• Is the ad easy to read and follow?• Is the product easily identified?• Is the brand or sponsor clearly identified?
  13. 13. Communicating to the Rural Audience• Large variations in language and culture• Campaigns have to be tailor made for product and region• Product demonstrations in haats, mandis, and melas (fairs) are useful• TV and print media do not reach all villages and all customers• Wall paintings and signboards very popular• Folk theatre, magic shows and puppet shows are also used as a media vehicle
  14. 14. Media Selection• Reach• Frequency• Impact• Exposure
  15. 15. Choosing Among Major Media Types• Target audience and media habits• Product characteristics• Message characteristics• Cost
  16. 16. Major Media Types• Newspapers • Outdoor• Television • Yellow Pages• Direct mail • Newsletters• Radio • Brochures• Magazines • Telephone • Internet
  17. 17. Table 18.2 Advertising Research Techniques• For Print Ads• For Broadcast Ads• In-house tests• Trailer tests• Theater tests• On-air tests
  18. 18. Place Advertising• Billboards• Public spaces• Product placement• Point-of-purchase
  19. 19. Measures of Audience Size• Circulation• Audience• Effective audience• Effective ad-exposed audience
  20. 20. Factors Affecting Timing Patterns• Buyer turnover• Purchase frequency• Forgetting rate
  21. 21. Media Schedule Patterns• Continuity• Concentration• Flighting• Pulsing
  22. 22. Evaluating Advertising Effectiveness• Communication-Effect Research – Consumer feedback method – Portfolio tests – Laboratory tests• Sales-Effect Research
  23. 23. What is Sales Promotion? Sales promotions consist of a collection ofincentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.
  24. 24. Sales Promotion TacticsConsumer-directed Trade-directed• Samples • Price offs• Coupons • Allowances• Cash refund offers • Free goods• Price offs • Sales contests• Premiums• Prizes • Spiffs• Patronage rewards • Trade shows• Free trials • Specialty advertising• Tie-in promotions
  25. 25. Using Sales Promotions Establish objectives Select tools Develop program Pretest Implement and control Evaluate results
  26. 26. Why Sponsor Events?• To identify with a particular target market or life style• To increase brand awareness• To create or reinforce consumer perceptions of key brand image associations• To enhance corporate image• To create experiences and evoke feelings• To express commitment to community• To entertain key clients or reward employees• To permit merchandising or promotional opportunities
  27. 27. Using Sponsored Events Establish objectives Choose events Design programs Measure effectiveness
  28. 28. Tasks Aided by Public Relations• Launching new products• Repositioning a mature product• Building interest in a product category• Influencing specific target groups• Defending products that have encountered public problems• Building the corporate image in a way that reflects favorable on products
  29. 29. Public Relations Functions• Press relations• Product publicity• Corporate communications• Lobbying• Counseling
  30. 30. Major Tools in Marketing PR • Publications • Events • Sponsorships • News • Speeches • Public Service Activities • Identity Media
  31. 31. Decisions in Marketing PR Establish objectives Choose messages Choose vehicles Implement Evaluate results
  32. 32. What is Direct Marketing? Direct marketing is the use of consumer-direct channels to reach and deliver goods and services to customers without using market middlemen.
  33. 33. Direct Marketing Channels Direct mail Catalogs TelemarketingOther direct response
  34. 34. Constructing a Direct-Mail Campaign Establish objectives Select target prospects Develop offer elements Test elements Execute Measure success
  35. 35. RFM Formula for Selecting Prospects Recency Recency Frequency FrequencyMonetary valueMonetary value
  36. 36. Elements of the Offer Strategy• Product• Offer• Medium• Distribution method• Creative strategy
  37. 37. Components of the Mailing• Outside envelope• Sales letter• Circular• Reply form• Reply envelope
  38. 38. Types of Telemarketing • Telesales • Telecoverage • Teleprospecting • Customer service and technical support
  39. 39. Other Media for Direct ResponseTelevision• Direct Response Advertising• At-home shopping channels• VideotextKiosks
  40. 40. Interactive Marketing• Tailored messages possible• Easy to track responsiveness• Contextual ad placement possible• Search engine advertising possible• Subject to click fraud• Consumers develop selective attention
  41. 41. Online Promotional Opportunities• Websites • Sponsorships• Microsites • Alliances and affiliate• Search ads programs• Display ads • Online communities• Interstitials • Email• Internet-specific ads • Mobile marketing and videos
  42. 42. e-Marketing Guidelines• Give the customer a reason to respond• Personalize the content of your emails• Offer something the customer could not get via direct mail• Make it easy for customers to unsubscribe
  43. 43. Word-of-Mouth Marketing is Empowered by Social Networks
  44. 44. Figure 19.4 Designing a Sales Force Sales force objectives Sales force strategy Sales force structure Sales force size Compensation
  45. 45. Sales Tasks• Prospecting• Targeting• Communicating• Selling• Servicing• Information gathering• Allocating
  46. 46. Figure 19.7 Managing the Sales Force Recruiting, selecting Training Supervising Motivating Evaluating
  47. 47. Workload Approach to Determining Sales Force Size• Customers are grouped into size classes• Desirable call frequencies are established• Number of accounts in each size class multiplied by call frequency• Average number of calls possible per year established• Number of reps equal to total annual calls required divided by number possible
  48. 48. Components of Sales Force Compensation Fixed amount Variable amount Expense allowances Benefits
  49. 49. Table 19.1 Form for Evaluating Performance
  50. 50. Principles of Personal Selling• Situation questions• Problem questions• Implication questions• Need-payoff questions
  51. 51. Figure 19.8 Steps in Effective Selling Prospecting/Qualifying Preapproach Approach Presentation Overcoming objections Closing Follow-up