Objectives

Developing

& Managing an Advertising

Program
Deciding on Media & Measuring
Effectiveness
Sales Promotion
Public Relations

2000 Prentice Hall

Major Decisions in Advertising

Objectives
Objectives Setting
Setting
Budget
Budget Decisions
Decisions
Message
Message Decisions
Decisions

Media
Media Decisions
Decisions

Campaign
Campaign Evaluation
Evaluation
2000 Prentice Hall

Advertising Objectives

Specific Communication Task

Accomplished with a Specific Target Audience
During a Specific Period of Time

Informative
Informative Advertising
Advertising

Persuasive
Persuasive Advertising
Advertising

Comparison
Comparison Advertising
Advertising

Reminder
Reminder Advertising
Advertising

Build
BuildPrimary
PrimaryDemand
Demand

Compares
ComparesOne
OneBrand
Brandto
to
Another
Another

2000 Prentice Hall

Build
BuildSelective
SelectiveDemand
Demand

Keeps
Keeps Consumers
ConsumersThinking
Thinking
About
About aaProduct.
Product.

The Five Ms of Advertising

Message

Mission
Sales
goals
Advertising
objectives

Money

Message generation

Factors to
consider:

Message evaluation
and selection

Stage in PLC

Message execution

Market share
and consumer base
Competition
and clutter
Advertising
frequency
Product
substitutability

2000 Prentice Hall

Social-responsibility
review

Media
Reach, frequency,
impact
Major media types
Specific media
vehicles
Media timing
Geographical
media allocation

Measurement
Communication
impact
Sales
impact

Advertising Budget Factors

Market Share &
Consumer Base
Stage in the
Product Life Cycle

Product
Substitutability
2000 Prentice Hall

Competition &
Clutter

Advertising
Frequency

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

2000 Prentice Hall

Profiles of Major Media Types

Radio

Advantages: Mass use; high geographic and demographic

selectivity; low cost
Limitations: Audio only; fleeting exposure; lower attention;
nonstandardized 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

2000 Prentice Hall

Classification of
Advertising Timing Patterns
Concentrated

Level
(1)

Rising
(2)

Falling
(3)

Alternating
(4)

(5)

(6)

(7)

(8)

(9)
(9)

(10)

(11)

(12)

Continuous

Intermittent

2000 Prentice Hall

Month

Number of
messages
per month

Simplified Rating Sheet for Ads

(Attention) How well does the ad catch
the readers attention?
(Read-through) How well does the
ad lead the reader to read further?
(Cognitive) How clear is the
central message or benefit?
(Affective) How effective is
the particular appeal?
(Behavior) How well does the
ad suggest follow-through action?
0

20
Poor
ad

2000 Prentice Hall

40

60

Mediocre Average
ad
ad

80
Good
ad

100
Great
ad

__20
__20
__20
__20
__20

__Total

Advertising Strategy
Message Execution
Turning the Big Idea Into an Actual Ad to Capture the
Testimonial
Target
Markets Attention andSlice
Interest.
Testimonial
of Life
Slice of Life

Evidence
Evidence

Scientific
Scientific
Evidence
Evidence
Technical
Technical
Expertise
Expertise
Personality
Personality
Symbol
Symbol

Typical
Typical
Message
Message
Execution
Execution
Styles
Styles
Musical
Musical

2000 Prentice Hall

Lifestyle
Lifestyle
Fantasy
Fantasy
Mood
Moodor
or
Image
Image

Advertising Evaluation
Advertising
Advertising Program
Program Evaluation
Evaluation

Communication
Communication Effects
Effects

Sales
Sales Effects
Effects

Is
Isthe
theAd
AdCommunicating
CommunicatingWell?
Well?

Is
Isthe
theAd
Ad Increasing
IncreasingSales?
Sales?

2000 Prentice Hall

Why the increase in Sales

Promotion?
Growing

retailer power
Declining brand loyalty
Increased promotional sensitivity
Brand proliferation
Fragmentation of consumer market
Short-term focus
Increased managerial accountability
Competition
Clutter
2000 Prentice Hall

%t of total - 3 yr.MA

Long-Term Promotional
Allocation
60
50
40
30
20
10
0

Trade Promo
Media Adv
Cons. Promo

1986
2000 Prentice Hall

88

90

92

94

1996

Year
Cox Direct 19th Annual Survey of Promotional Practices

Channels of Sales Promotions

MANUFACTURER
Push

Trade
Promotions
RETAILER

Push

Retail
Promotions
CONSUMER

2000 Prentice Hall

Consumer
Promotions
Pull

Consumer Promotion
Consumer-Promotion
Objectives
Entice
EnticeConsumers
Consumersto
to
Try
TryaaNew
NewProduct
Product
Lure
LureCustomers
CustomersAway
Away
From
FromCompetitors
CompetitorsProducts
Products
Get
GetConsumers
Consumersto
toLoad
LoadUp
Up
on
onaaMature
MatureProduct
Product
Hold
Hold&&Reward
Reward Loyal
Loyal
Customers
Customers
Consumer
ConsumerRelationship
Relationship
Building
Building

2000 Prentice Hall

Consumer-Promotion
Tools
Samples
Samples
Coupons
Coupons
Cash
CashRefunds
Refunds
Price
PricePacks
Packs
Premiums
Premiums

Advertising
Advertising
Specialties
Specialties
Patronage
Patronage
Rewards
Rewards
Contests
Contests
Sweepstakes
Sweepstakes
Games
Games

Point-of-Purchase
Point-of-Purchase
Displays
Displays

Deal Proneness,
Liechtenstein, Burton, & Netemeyer,
Journal of Retailing, Summer 1997
Examination

of deal proneness among

consumers in a supermarket setting
Surveys & Grocery Receipts used
Eight types of deals:
Cent-off, One-free, Gift, Display,
Rebate, Contest, Sale, & Coupon

2000 Prentice Hall

Deal Proneness,
Liechtenstein, Burton, & Netemeyer
Cluster analysis yielded two interpretable results:
49% are deal prone, 51% not
24% High Deal prone, 50% intermediate,
26% deal insensitive
Deal-proneness a generalized construct (crosses type of promotion)
Younger & Less educated more likely to be
deal prone

2000 Prentice Hall

Trade Promotions
Trade-Promotion
Objectives

Trade-Promotion
Tools

Persuade
PersuadeRetailers
Retailersor
or
Wholesalers
Wholesalersto
toCarry
CarryaaBrand
Brand

Price-Offs
Price-Offs

Premiums
Premiums

Give
GiveaaBrand
BrandShelf
ShelfSpace
Space

Allowances
Allowances

Promote
PromoteaaBrand
Brandin
in
Advertising
Advertising

Buy-Back
Buy-Back
Guarantees
Guarantees

Patronage
Displays
Rewards

Push
PushaaBrand
Brandto
toConsumers
Consumers

Free
FreeGoods
Goods
Contests
Contests

2000 Prentice Hall

Discounts
Discounts
Push
PushMoney
Money
Specialty
Specialty
Advertising
Advertising
Items
Items

Business-to-Business
Promotion
Business-Promotion
Objectives
Generate
GenerateBusiness
BusinessLeads
Leads
Stimulate
StimulatePurchases
Purchases
Reward
RewardCustomers
Customers
Motivate
MotivateSalespeople
Salespeople

2000 Prentice Hall

Business-Promotion
Tools
Conventions
Conventions
Trade
TradeShows
Shows
Sales
SalesContests
Contests

Major Public Relations Tools

Public
Public
Service
Service
Activities
Activities

Web
Web Site
Site

Speeches
Speeches

Corporate
Corporate
Identity
Identity
Materials
Materials
Audiovisual
Audiovisual
Materials
Materials
2000 Prentice Hall

News
News

Written
Written
Materials
Materials

Special
Special
Events
Events

Taco Bell has

purchased the
Liberty Bell!
2000 Prentice Hall

Review
Developing

& Managing an Advertising

Program
Deciding on Media & Measuring
Effectiveness
Sales Promotion
Public Relations

2000 Prentice Hall