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ADVERTISING & SALES PROMOTION

Module II :
Advertising Planning & Strategy

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ADVERTISING & SALES PROMOTION


Module II : Advertising Planning & Strategy

COURSE CONTENTS
A. Advertising Department: Objectives and functions,
B. Role of Advertisement Agencies:
C. Selection and Remuneration,
D. Advertising Campaign,
E. Budgeting Methods.

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ADVERTISING & SALES PROMOTION


Module II : Advertising Planning & Strategy

ADVERTISING
Advertising Paid, non- personal communication
through various media about a business firm, not-forprofit organization, product, or idea by a sponsor identified
in a message that is intended to inform or persuade
members of a particular audience.
TYPES OF ADVERTISING

Product advertising Non-personal selling of a particular


good or service.
Institutional advertising Promotion of a concept, an
idea, a philosophy, or the goodwill of an industry,
company, organization, person, geographic location, or
government agency.
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Module II : Advertising Planning & Strategy

OBJECTIVESOFADVERTISING

InformativeadvertisingPromotionthatseekstodevelopinitialdemand
foragood,service,organization,person,place,idea,orcause.
PersuasiveadvertisingPromotionthatattemptstoincreasedemandforan
existinggood,service,organization,person,place,idea,orcause.
ReminderadvertisingAdvertisingthatreinforcespreviouspromotional
activitybykeepingthenameofagood,service,organization,person,place,
idea,orcausebeforethepublic.
Advertiserscoordinateadvertisingobjectiveswiththeproductsstagein
theproductlifecycle.CA

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ADVERTISING & SALES PROMOTION


Module II : Advertising Planning & Strategy

ADVERTISING STRATEGIES
Advertising is a means of bringing buyers and sellers
together.
Marketers often combine several strategies to meet their
objectives.
COMPARATIVE ADVERTISING

Comparative advertising - Advertising strategy that


emphasizes messages with direct or indirect promotional
comparisons between competing brands.
Market leaders seldom acknowledge competing brands.
CELEBRITY TESTIMONIALS

Use of celebrity spokespeople for products.


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Can build brand equity but can hurt brand if celebrity is hit

ADVERTISING & SALES PROMOTION


Module II : Advertising Planning & Strategy

RETAIL ADVERTISING

Includes all advertising by retail stores that sell goods or


services directly to the consuming public.
Cooperative advertising Strategy in which a retailer
shares advertising costs with a manufacturer or wholesaler.
INTERACTIVE ADVERTISING

Involves two-way promotional messages transmitted


through communication channels that induce message
recipients to participate actively in the promotional effort.
Changes balance between marketers and consumers.

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Module II : Advertising Planning & Strategy

ADVERTISING MESSAGES
Advertising campaign Series of different but related ads
that use a single theme and appear in different media within
a specified time period.
ADVERTISING APPEALS

Appeals can provide information or appeal to emotion.


Fear appealsimply or state that incorrect buying
decisions could lead to bad consequences.
Humor seeks to create positive mood related to good or
service.
Ads based on sex can be attention-getting, but they boost
recall only if the appeal is appropriate to the type of product.
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ADVERTISING & SALES PROMOTION


Module II : Advertising Planning & Strategy
DEVELOPING AND PREPARING ADS

Goals:
Gain attention.
Inform and/or persuade.
Lead to purchase or other desired action.
After idea conception, ad must be refined from rough
sketch to finished layout.
CREATING INTERACTIVE ADS

Lively, engaging content.


Use of advertising in games, or advergames.
Banners are the most common form of online
advertisement.
Use of pop-ups is declining; adware seen as disreputable.
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Module II : Advertising Planning & Strategy

MEDIA SELECTION
BroadcastTelevision
CableTelevision
Radio
Newspaper
DirectMail
MagazinesConsumer/Business
Outdoor
Internet

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ADVERTISING & SALES PROMOTION


Module II : Advertising Planning & Strategy

MEDIA SCHEDULING
After selecting media, marketers determine the most
effective timing and sequence for a series of
advertisements.
Influenced by seasonal sales patterns, repurchase cycles,
and competitors activities.
Measure effectiveness in three ways:
Reachthe number of people exposed to an
advertisement.
Frequencythe number of times an individual is
exposed to an
advertisement. Minimum of three exposures is
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recommended.

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Module II : Advertising Planning & Strategy

ORGANIZATION OF THE ADVERTISING


FUNCTION
Organizational arrangements vary from company to
company.
Usually organized as a staff department reporting to a vice
president of marketing.
Major tasks include include advertising research, design,
copywriting, media analysis, and in some cases, sales and
trade promotion.
ADVERTISING AGENCIES

Advertising agency Firm whose marketing specialists


help advertisers plan and prepare advertisements.
May offer creativity and objectivity that is difficult to
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maintain in an internal department.

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Module II : Advertising Planning & Strategy

PUBLIC RELATIONS
Firms communications and relationships with its various
publics, including customers, employees, stockholders,
suppliers, and government agencies.
Serves broad objectives by enhancing prestige and image
of all parts of the organization.
PR department is link between the firm and the media.
Non marketing public relationsa companys messages
about general management issues.
Marketing public relations (MPR)narrowly focused public
relations activities that directly support marketing goals.
Publicity Non personal stimulation of demand for a good,
service, place, idea, person, or organization by unpaid
placement of significant news regarding the product in a
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print

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Module II : Advertising Planning & Strategy

CROSS-PROMOTION
Cross-promotion Promotional technique in which
marketing partners share the cost of a promotional
campaign that meets their mutual needs.
Provide greater benefits in return for both partners.
Example: Cingular Wireless promoting artists such as
Coldplay, Gwen Stefani, and Alicia Keys.
Cingular sells more ringtones because it features these
artists.
Artists gain greater exposure.
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Module II : Advertising Planning & Strategy

MEASURING PROMOTIONAL EFFECTIVENESS


Promotional prices vary widely.
Because of expense, advertising professionals must
demonstrate how promotional programs contribute to
increased sales and profits.
MEASURING ADVERTISING EFFECTIVENESS

Media researchassesses how well particular medium


delivers message, where and when to place the message,
and the size of the audience.
Message researchtests consumer reactions to an
advertisements creative message.
Pretestingassessing an advertisements likely
effectiveness before it is completed.
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Post testingassessing SEM
advertisements
effectiveness after14

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Module II : Advertising Planning & Strategy

MEASURING PUBLIC-RELATIONS
EFFECTIVENESS

Count media placements, conducting public opinion polls.


Conduct focus groups, interview opinion leaders,
before-and-after polls.
EVALUATING INTERACTIVE MEDIA

Hitsuser requests for a file.


Impressionsnumber of times a viewer sees an ad.
Click-throughsuser clicks ad for more information.
View-throughmeasure response over time.

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Module II : Advertising Planning & Strategy

ETHICS IN NONPERSONAL SELLING


ADVERTISING ETHICS

Advertising to children, advertising alcohol, and the use of


cookies on Web sites are all areas of ethical controversy.
Pufferyexaggerated claims of a products superiority or
the
use of subjective or vague statements that may not be
literally true.
Uniform Commercial Code distinguishes puffery from
specific, quantifiable statements.
ETHICS IN PUBLIC RELATIONS

Issues include performing services for companies that


produce unsafe products.
Public
Relations Society of
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SEMAmericas
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Code of Professional Standards prohibits promoting products

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Module II : Advertising Planning & Strategy

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Module II : Advertising Planning & Strategy

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Module II : Advertising Planning & Strategy

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(Refer attachment)

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Module II : Advertising Planning & Strategy

ADVERTISING & SALES PROMOTION


Module II : Advertising Planning & Strategy

ADVERTISING & SALES PROMOTION


Module II : Advertising Planning & Strategy

ADVERTISING & SALES PROMOTION


Module II : Advertising Planning & Strategy

ADVERTISING & SALES PROMOTION


Module II : Advertising Planning & Strategy

ADVERTISING & SALES PROMOTION


Module II : Advertising Planning & Strategy

ADVERTISING & SALES PROMOTION


Module II : Advertising Planning & Strategy

ADVERTISING & SALES PROMOTION


Module II : Advertising Planning & Strategy

ADVERTISING & SALES PROMOTION


Module II : Advertising Planning & Strategy

ADVERTISING & SALES PROMOTION


Module II : Advertising Planning & Strategy

ADVERTISING & SALES PROMOTION


Module II : Advertising Planning & Strategy

(Refer attachment)
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