Advertising and Sales Promotion Strategy

The Marketing Communications Mix
Advertising
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.

Sales Promotion

Public Relations Personal Selling

Personal Presentations.

Direct Marketing

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 Consumer Promotions Push Retail Promotions CONSUMER 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 .

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 Premiums Patronage Displays Rewards Discounts Push Money Specialty Advertising Items Buy-Back Guarantees Free Goods Contests .Trade Promotions -.

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. etc. Is the budget sufficient? Is the media message correct? Are the media outlets appropriate? All of these questions will depend upon the target audience’s size. motivations. concerns. .

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 secondary. while cost of the service is an important.But need to add life-style and psychographic profile data “This group aspires to have both a successful career and family.” . concern. These women are serious about child-rearing responsibilities and are avid readers of books and articles on the subject. They are concerned about where and with whom they leave their children. Heir child’s “experience” is of crucial importance. They are primarily outer-directed Emulators and Achievers in terms of VALS categories.

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 .

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

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

that list our brand in unaided recall when asked to name 5 different instant coffee brands. . within one year . the number of homemakers.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%. age 25-55.

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 .

etc.. newspapers.g.Advertising platform A statement of the basic idea or issues to be communicated in the advertisement. A general notion of the media type (e.) . TV. radio.

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. . Tasks & Costs. 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.

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 .

Frequency. E.R. Editorial Quality Media Timing Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing .) Balance Media Cost Against Media Factors: Audience Quality & Attention.g. 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..Issues in Selecting Advertising Media Reach.

high believability Limitations: Short life. sound. flexibility. less audience selectivity Direct Mail Advantages: Audience selectivity. high reach. fleeting exposure. high clutter. motion. appealing to senses Limitations: High absolute costs. timeliness. allows personalization Limitations: Relative high cost. “junk mail” image .Profiles of Major Media Types Newspapers Advantages: Flexibility. poor reproduction quality. small pass-along audience Television Advantages: Combines sight. high attention. good local market coverage. no ad competition within same medium.

long life. lower attention. creative limitations . fragmented audiences Magazines Advantages: High geographic and demographic selectivity. credibility and prestige. high repeat exposure. good pass-along readership Limitations: Long ad purchase lead time. low cost Limitations: Audio only. no guarantee of position Outdoor Advantages: Flexibility. high geographic and demographic selectivity. high-quality reproduction.Profiles of Major Media Types Radio Advantages: Mass use. fleeting exposure. low message competition Limitations: Little audience selectivity. low cost.

) Balance Media Cost Against Media Factors: Audience Quality & Attention.R. Editorial Quality Media Timing Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing . E. Frequency.g. 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.Issues in Selecting Advertising Media Reach..

Issues in Selecting Advertising Media Reach. 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.) Balance Media Cost Against Media Factors: Audience Quality & Attention.. Frequency.R. Editorial Quality Media Timing Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing .

Classification of Advertising Timing Patterns Concentrated Level (1) Rising (2) Falling Alternating (3) (4) (5) Continuous (6) (7) (8) (9) (9) Intermittent (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 .

Likeability . Trustworthiness.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.

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 Fun and pleasure Health concerns Convenience Common Message Appeals Love Admiration/worship Sex Fear .

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? .