Advertising and Sales Promotion

Unit-1
Vaishali Agarwal Assistant Professor (Marketing)

Advertising Vs Promotion Vs Marketing

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The Growth of Advertising and Promotion

Expenditure in Billions of Dollars
U.S. Advertising U.S. Sales Promotion Advertising Outside U.S. $0 $50 $100 $150 $200 $250 $300 2002 1980

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Defining Modern Advertising • Paid persuasive communication • Uses nonpersonal mass media to reach broad audiences • Connects an identified sponsor with a target audience .

Sponsor is identified 4.Six Basic Components 1. Paid 2. Using mass media 5. Reaches large audience . Non-personal communication 3. Tries to persuade or influence 6.

non-personal communication from an identified sponsor. . paid by an identifiable sponsor. Or The process of delivering a message about ideas. using mass media to persuade or influence an audience.Advertising Defined Paid. goods and services. through the media.

Objectives • To cause Awareness. • To Persuade. • To Remind. . • To create Image.

The Meaning of the Objectives .

Key Concepts of Advertising .

Strategy • Advertisers direct ads to identified audiences • Advertisers create messages that speak to the audience’s concerns • Advertisers run ads in the most effective media to reach the audience • The logic and planning behind the ad that give it direction and focus • Advertisers develop ads to meet objectives .

Creative Idea • The central idea that grabs the consumer’s attention • Creativity drives the entire field of advertising .

Execution • Effective ads adhere to the highest production values in the industry • Clients demand the best production the budget allows .

Media • Communication channels that reach a broad audience • How to deliver the message is just as important as coming up with the creative idea of the message .

plan and budget • Hires the agency .Key Players: Advertiser • Uses advertising to send out a message about its products • Initiates effort by identifying a problem that advertising can solve • Approves audience.

Insurance and real estate 14. Beer. Sporting goods. Government. media. and advertising 4. Movies. and liquor 18. Toiletries. Restaurants 11. Computers. Medicines and proprietary remedies 6. and personal care 9. appliances. Apparel 17. hotels. Financial services 7. wine. Audio and video equipment and supplies 19. cosmetics. Telecommunications 8. Home-furnishings. and resorts 10.Key Players: Advertiser 1. Internet 15. politics. supplies 13. Retail 3. Direct-response companies 12. toys. and organizations 16. and games 20. beverages. and confectionery 5. software. Airline travel. Automotive 2. Entertainment and events . Food.

media knowledge. workforce talent and negotiating abilities .Key Players: Agency • Has strategic and creative expertise.

Key Players: Supplier • Assist advertisers. agencies and the media in creating and placing the ads • Vendor services are often cheaper than those in-house .

Key Players: Target Audience • The desired audience for the advertising message • Data-gathering technology improves accuracy of information about customers • Advertisers must recognize the various target audiences they are talking to and know as much about them as possible .

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The Communication Role Strengths Can reach mass audience Introduces Products Explain important Changes Examples A commercial of any product reaches millions of households Companies use advertising to launch their IPOs Hutch used advertising extensively to communicate the change to VODAFONE Raymonds is advertising itself from more than last 60 years A Pulse Polio ad persuades parents to make their kids take drops Reminds and Reinforce Persuades .

creating a more rational economy .The Economic Role Advertising decreases the likelihood that a consumer will switch to an alternate product regardless of price Advertising is a means to objectively provide price-value information.

The Societal Role Informs consumers about innovations and issues Mirrors fashion and design trends Teaches consumers about new products Helps shape consumer self-image Perpetuates self-expression .

Marketing Revolution and Shifting Tides From Media Advertising Mass Media Manufacturer Dominance General Focus Low Agency Accountability Traditional Compensation Limited Internet Availability Toward Multiple Forms of Communication Specialized Media Retailer Dominance Data Based Marketing Greater Agency Accountability Performance Based Compensation Widespread Internet Availability .

. between marketing and customers in their process of decision making.Integrated Marketing Communications All of the processes that involve communications.

IMC–Audience Contact Points Point of Purchase Internet/ Interactive Media Direct Mail Publicity Public Relations Packaging Marketing Communications Audience Direct Response Sales Promotion Print Media Broadcast Media Outdoor Events .

IMC Principles Extend Worldwide .

Traditional Approach to Marketing Communications Sales Promotion Point of Purchase Publicity Special Events Media Advertising Packaging Direct Response Public Relations Direct Marketing Interactive Marketing .

Contemporary IMC Approach Sales Promotion Direct Response Packaging Point of Purchase Publicity Media Advertising Public Relations Interactive Marketing Direct Marketing Special Events .

The Classification… ATL .Sales Promotion .Above The Line All of the MarCom that is done in the media: – Planning – Advertising – Publicity/Public Relations – Direct Marketing BTL .Below The Line All of the MarCom that is done in the market and not in the media: .Personal Selling .Direct Marketing .

Exercise A01 Analyze this Advertisement & Identify: • Key Players • Suitable IMC Tools • Ethical Issues involved .

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