Advertising and Sales Promotion Strategy

The Marketing Communications Mix
Advertising Sales Promotion
Any Paid Form of Nonpersonal Presentation by an Identified Sponsor. Short-term Incentives to Encourage Trial or Purchase. Protect and/or Promote Company’s Image/products.

Public Relations

Personal Selling Direct Marketing

Personal Presentations. Direct Communications With Individuals to Obtain an Immediate Response.

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

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

Publicity
PROS • Very believable • “Free advertising” CONS • Hard to implement • Hard to control • Hard to measure its effectiveness

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

Channels of Sales Promotions
MANUFACTURER Push Trade Promotions RETAILER Push Retail Promotions CONSUMER Consumer Promotions Pull

Consumer Promotion -- PULL
Consumer-Promotion Objectives
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

Consumer-Promotion Tools
Samples Coupons Cash Refunds Price Packs Premiums Advertising Specialties Patronage Rewards Contests Sweepstakes Games

Point-of-Purchase Displays

Trade Promotions -- PUSH
Trade-Promotion Objectives
Persuade Retailers or Wholesalers to Carry a Brand Give a Brand Shelf Space Promote a Brand in Advertising Push a Brand to Consumers

Trade-Promotion Tools
Price-Offs Allowances Buy-Back Guarantees Free Goods Contests Premiums Patronage Displays Rewards Discounts Push Money Specialty Advertising Items

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

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.

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.”

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.”

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

Problem with using $ of revenue or units sold as an advertising objective
1. Advertising is only one of many factors impacting whether a sale occurs. 3. Advertising has a carryover / delay effect that extends beyond a calendar or fiscal year.

Response Hierarchy Models
Stages
AIDA Model Hierarchy-ofEffects Model Awareness Cognitive stage Attention Knowlege Interest Affective stage Desire Behavior stage Action Liking Preference Conviction Purchase Evaluation Trial Adoption Intention Behavior Interest Awareness InnovationAdoption Model Communications Model Exposure Reception Cognitive response Attitude

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.

Advertising Objectives
• • • Specific Communication Task Accomplished with a Specific Target Audience During a Specific Period of Time Informative Advertising
Build Primary Demand

Persuasive Advertising
Build Selective Demand

Reminder Advertising
Keeps Consumers Thinking About a Product.

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

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.)

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

Issues to consider in setting advertising budget
Product Life Cycle Market share Competitive clutter Product Substitutability

Setting Advertising Budgets
Affordable Method
Setting Promotion Budget at the Level the Company Thinks They Can Afford.

Percentage-ofSales Method
Setting Promotion Budget at a Certain % of Current or Forecasted Sales

Competitive-Parity Method
Setting Promotion Budget to Match Competitors’ Outlay

Objective-and-Task Method
Setting Promotion Budget by Defining Objectives, Tasks & Costs.

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

Issues in Selecting Advertising Media
Reach, Frequency, and Impact

Media Habits of Target Consumers Nature of the Product Type of Message Cost

Major Media Type Options

Specific Media Within a Given Type (e.g., E.R.) Balance Media Cost Against Media Factors: Audience Quality & Attention, Editorial Quality

Specific Media Vehicles

Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing

Media Timing

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 competition within same medium; allows personalization Limitations: Relative high cost; “junk mail” image

Profiles of Major Media Types
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

Issues in Selecting Advertising Media
Reach, Frequency, and Impact

Media Habits of Target Consumers Nature of the Product Type of Message Cost

Major Media Type Options

Specific Media Within a Given Type (e.g., E.R.) Balance Media Cost Against Media Factors: Audience Quality & Attention, Editorial Quality

Specific Media Vehicles

Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing

Media Timing

Issues in Selecting Advertising Media
Reach, Frequency, and Impact

Media Habits of Target Consumers Nature of the Product Type of Message Cost

Major Media Type Options

Specific Media Within a Given Type (e.g., E.R.) Balance Media Cost Against Media Factors: Audience Quality & Attention, Editorial Quality

Specific Media Vehicles

Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing

Media Timing

Classification of Advertising Timing Patterns
Concentrated

Level (1)

Rising (2)

Falling (3)

Alternating (4)

(5)
Continuous

(6)

(7)

(8)

Intermittent

(9) (9)

(10)

(11)

(12)

Number of messages per month

Month

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

Factors Impacting the Receipt of a Message
Selective Attention

Selective Distortion

Selective Retention

Issues to Consider in Designing the Message
Message Content Rational Appeals Emotional Appeals Moral Appeals

Message Structure Draw Conclusions Argument Type Argument Order Message Source Expertise, Trustworthiness, Likeability

Typical Message Execution Styles
Comparisons Real or animated Symbol Mood or Image

Slice of Life

Lifestyle Demonstration Spokesperson Musical Fantasy Scientific Evidence

Humor

Stylistic Approaches
• • • • Can present many points quickly Cost less than drama to produce Audience can become distracted Discount all or part of the facts DRAMA

COMBINATION

LECTURE

• Characters speak to each other – not the audience • Consumers must infer lessons • Conclusions are more likely to be accepted

Common Appeals

Vanity and egotism

Profit motive Health concerns Love

Fun and pleasure Convenience

Common Message Appeals

Admiration/worship Fear

Sex

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

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

Advertising Evaluation
Advertising Program 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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