Place & Promotion

Part-2

Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

The Five Ms of Advertising

Advertising objective can be classified according to whether their aim is to: 1. Inform. 2. Persuade. 3. Remind. 4. Reinforce. Each aim at different stages: Information advertising aims to create brand awareness and knowledge of new products or new features of existing products. Persuasive advertising aims to create liking, preference, conviction, and purchase of a product or service. Reminder advertising aims to stimulate repeat purchase of products and services. Reinforcement advertising aims to convince purchasers that they made the right choice.

Major Media Types

Newspapers Television Direct mail Radio Magazines Outdoor Yellow Pages Newsletters Brochures Telephone Internet

Television
Advantages Reaches broad spectrum of consumers Low cost per exposure Ability to demonstrate product use Ability to portray image and brand personality Disadvantages Brief Clutter High cost of production High cost of placement Lack of attention by viewers

Print Ads
Advantages Detailed product information Ability to communicate user imagery Flexibility Ability to segment Disadvantages Passive medium Clutter Unable to demonstrate product use

Profiles of Major Media Types

Newspapers
Advantages: Flexibility, timeliness; good local market coverage; broad acceptance, 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

Radio

Advantages: Mass use; high geographic and demographic selectivity; low cost

Limitations: Audio only; fleeting exposure; lower attention; non-standardized rates; 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; waste circulation; no guarantee of position

Outdoor
Advantages: Flexibility; high repeat exposure; low cost; low message competition Limitations: Little audience selectivity; creative limitations

What is Sales Promotion?

Sales promotions consist of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase or sale of particular products or services by consumers or the trade.

Sales Promotion Tactics

Consumer-directed Samples Coupons Cash refund offers Price offs Premiums Prizes Patronage rewards Free trials Tie-in promotions Trade-directed Price offs Allowances Free goods Sales contests Spiffs(A spiff or spiv is an

immediate bonus for a sale. Typically, "spiffs" are paid, either by a manufacturer or employer, directly to a salesperson for selling a specific product.)

Trade shows Specialty advertising

Using Sales Promotions

Establish objectives Select tools Develop program Pretest

Implement and control

Evaluate results

Public Relations Involves Building Good Relations With the Companys Various Publics by Obtaining Favorable Publicity, Building Up a Good Corporate Image, and Handling or Heading Off Unfavorable Rumors, Stories, and Events.

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Major Public Relations Tools

News Web Site Public Service Activities Corporate Identity Materials Speeches Special Events

Audiovisual Materials

Written Materials
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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

Major Public Relations Decisions

Setting Public Relations Objectives

Choosing the Public Relations Messages and Vehicles

Implementing the Public Relations Plan

Evaluating Public Relations Results

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Personal selling:
Personal presentation by the firms sales force to make sales and build customer relationships.

Direct marketing

Direct communications with carefully targeted individual consumers to obtain an immediate responsethe use of mail, telephone, fax, e-mail, and other non-personal tools to communicate directly with specific consumers or to solicit a direct response.

Integrated marketing communications (IMC)

The concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.

Integrated marketing communications

End Of Session