advertising and sales promotion styles and acts

1. Advertising and
Sales Promotion
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill

2. Chapter 16 Objectives
When you finish this chapter, you should
1. Understand why a marketing 6. Understand what advertising
manager sets specific objectives agencies do—and how they are
to guide the advertising effort. paid.
2. Understand when the various 7. Understand how to advertise
kinds of advertising are needed. legally.
3. Understand how to choose the 8. Understand the importance and
“best” medium. nature of sales promotion.
4. Understand the main ways that 9. Know the advantages and
advertising on the Internet differs limitations of different types of
from advertising in other media. sales promotion.
5. Understand how to plan the "best" 10. Understand the important new
message—that is, the copy thrust. terms.
For use only with Perreault and McCarthy texts.
16-2 © The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill

3. Strategy Planning for Advertising
Target Market
Product Place Promotion Price
Personal Mass Sales
Selling Selling Promotion
Advertising Publicity
Target Kind of Who will do
Media types Copy thrust the work?
audience advertising
Exhibit 16-1
For use only with Perreault and McCarthy texts.
16-3 © The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill

4. Setting Advertising Objectives
Introduce New Products
Position Brands
Obtain Outlets
Ongoing Contact
Strategy
Support Sales Force
Decisions
in Setting Get Immediate Action
Advertising
Objectives Maintain Relationships
For use only with Perreault and McCarthy texts.
16-4 © The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill

5. Kinds of Advertising
Pioneering Competitive
Kinds
of Product
Advertising
Reminder
For use only with Perreault and McCarthy texts.
16-5 © The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill

6. Choosing Media
Television Yellow Pages
Newspaper Magazine
Major Kinds
of Media
Direct Mail Outdoor
Radio Internet
For use only with Perreault and McCarthy texts.
16-6 © The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill

7. Advertising on the Internet
Many Forms
?????? Seek Direct Response
??????
?????? More Exposure
?????? Better Targeting
?????? Context Ads/Pointcasting
Pay for Results
For use only with Perreault and McCarthy texts.
16-7 © The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill

8. Planning the Message
Get Attention
Hold Interest
Arouse Desire
Obtain Action
For use only with Perreault and McCarthy texts.
16-8 © The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill

9. Measuring Advertising Effectiveness
???? Consider the Total Mix
Consider the Total Mix
????
???? Research and Testing
Research and Testing
May Improve Odds
May Improve Odds
????
???? Build Upon
Build Upon
What Works
What Works
For use only with Perreault and McCarthy texts.
16-9 © The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill

10. Issues in Managing Sales Promotion
+
+
Immediate
Growth
Results
+
+
Positives
- Negatives
-
Erodes
Hard to
Brand
Manage
Loyalty
-
-
For use only with Perreault and McCarthy texts.
16-10 © The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill

11. Possible Effects of Sales Promotion
Unit Sales
Period of
promotion
Sales
temporarily
increase, then
decrease, then
return to
regular level
Time
Exhibit 16-6A
For use only with Perreault and McCarthy texts.
16-11 © The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill

12. Possible Effects of Sales Promotion
Unit Sales
Period of
promotion
Sales
temporarily
increase and
then return to
regular level
Time
Exhibit 16-6B
For use only with Perreault and McCarthy texts.
16-12 © The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill

13. Possible Effects of Sales Promotion
Unit Sales
Period of
promotion
Sales increase
and then remain
at higher level
Time
Exhibit 16-6C
For use only with Perreault and McCarthy texts.
16-13 © The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill

14. Key Terms
Institutional Advertising
Product Advertising
Pioneering
Competitive
Direct Type
Indirect Type
Comparative
Reminder
Advertising Allowances
Cooperative Advertising
Copy Thrust
Advertising Agencies
Corrective Advertising
For use only with Perreault and McCarthy texts.
16-14 © The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill