Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.

Promotional Mix
Combination of promotion tools used to reach the target market and fulfill the organization’s overall goals.

Promotional Mix

Elements of the Promotional Mix

Public Relations

Personal Selling

Sales Promotion

Definition: Advertising is any ,paid form of non-personal presentation and promotion of ideas,goods and services by an identified sponsor.-----American Marketing Association.

• Ability to reach large number of people Cost per contact is low Can be microtargeted
• Total cost is high

Characteristics of Advertising
Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility Indirect and non-personal Low Little Delayed One-way Yes Yes Fast Same message to all audiences

Goals and Tasks of Advertising
Informing Reminding

Target Audience


Goals and Tasks of Ad
PLC Stages: Stages Introduction Early Growth

PLC Stages: Maturity

Target Audience

PLC Stages: Growth Maturity


Goals and Tasks of Ad
Informative Objective
• • • • • • • Increase awareness Explain how product works Build company image Explain various/new uses of product Inform change in marketing mix Tell consumers who is using the product now Reduce consumers fears of risk involved in purchase

Goals and Tasks of Ad
Persuasion Objective
• Encourage brand switching/brand preference • Change customers’ perception of product attributes • Influence buying decision • Persuade customers to purchase now • Attempt to off-set competitors advertising • Change relative importance of product attributes

Goals and Tasks of Ad
Reminder Objective
• • • • • • • Remind customers that product may be needed Remind customers where to buy product Maintain top of the mind awareness Maintain image through off-seasons Maintain product and company image Suggest new uses of the product Correct false impression

Objectives of Advertising:
 Informative advertising seeks to develop initial demand  Persuasive advertising attempts to increase demand for an existing product  Reminder advertising strives to reinforce previous promotion by keeping the name of the product before the market  To increase support.  To stimulate sales amongst present,former & future consumers.  To retain loyalty.  To project an image.  To communicate with consumers.

Advertising objectives in relation to the stage in the Product Life Cycle

The AIDA Concept
Action Desire Interest Attention

AIDA and the Promotional Mix
Awareness Interest
Advertising Public Relations Sales Promotion Personal Selling
Very effective Very effective Somewhat effective Somewhat effective Very effective Very effective Somewhat effective Very effective

Somewhat effective Very effective Very effective Very effective

Not effective Not effective Very effective Somewhat effective

Media Types
Newspapers Magazines Radio Television

Major Types of Advertising Media

Outdoor Internet Alternative Media

Media selection consideration
• • • • • • Costs Competitors Customers and target market The product Media Penetration and Coverage Advertising Objectives

Media Selection Considerations
Cost per Contact

Factors Influencing Media Mix Decisions



Audience Selectivity

Advantages  Year-round readership  Geographic selectivity  Immediacy  High individual market coverage  Short lead time Disadvantages  Limited demographic selectivity  Little color  May be expensive  Low pass-along rate  Clutter  Mass market medium

 Good reproduction  Demographic selectivity  Regional/local selectivity  Long advertising life  High pass-along rate

 Higher cost per contact  Long-term advertiser commitments  Slow audience build-up  Limited demonstration capabilities  Lack of urgency  Long lead time

 Selectivity and audience segmentation  Immediate and portable  Geographic flexibility  Entertainment carryover  Short-term ad commitments

 No visual treatment  Short advertising life  High frequency to generate retention  Commercial clutter  Background distractions

 Wide diverse audience  Low cost per thousand  Creative and demonstrative  Immediacy of messages  Entertainment carryover  Demographic selectivity with cable

 Short life of message  Expensive with high campaign cost  Little demographic selectivity with network  Long-term advertiser commitments  Long lead times  Clutter

Internet and World Wide Web
Advantages  Fast growing  Ability to reach narrow target audience  Short lead time  Moderate cost Disadvantages  Difficult to measure ad effectiveness and ROI  Ad exposure relies on “click through”  Not all consumers have access to internet

Advertising Budget
Advertising Budget is an estimate of future ad expenditure that will be used to implement managerial decision to maintain or improve profit results. Budgetary Process:Preparation of Budget—Presentation of Budget—Execution of Budget—Control of Budget. Factors affecting the Ad Budget: 1.Marketing Mix of the company 2.Affordability 3.Product life cycle 4.Level of competition 5.Type of product

Methods of determining Budget Allocation
• The Percentage of sales method • Advertising objective-and-task method • All you can afford method • Competitive parity method • Incremental concept approach to ad budget (concept of marginality)

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