Advertising and Sales Promotion Strategy

Advertising and Sales Promotion
Strategy
The Marketing Communications
Mix
Any
AnyPaid
PaidForm
FormofofNonpersonal
Nonpersonal
Advertising
Advertising Presentation
Presentation by anIdentified
by an Identified
Sponsor.
Sponsor.
Sales Promotion Short-term Incentives to

Encourage Trial or Purchase.
Protect and/or Promote

Public Relations Company’s Image/products.
Personal
Personal Selling
Selling Personal Presentations.
Direct Communications
Direct Marketing 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
Trade
Push
Promotions
RETAILER Consumer
Promotions
Retail Pull
Push
Promotions
CONSUMER
Consumer Promotion -- PULL
Consumer-Promotion Consumer-Promotion
Objectives Tools
Entice
EnticeConsumers
Consumersto to
Try Samples Advertising
Advertising
TryaaNew
NewProduct
Product Samples
Specialties
Lure Specialties
LureCustomers
CustomersAway
Away Coupons
Coupons
From Patronage
FromCompetitors’
Competitors’Products
Products
Get Rewards
GetConsumers
Consumersto to“Load
“LoadUp’
Up’ Cash
CashRefunds
Refunds
on
onaaMature
MatureProduct
Product Contests
Hold
Hold&&Reward
Reward Loyal Price
Customers
Loyal PricePacks
Packs Sweepstakes
Customers Sweepstakes
Consumer
ConsumerRelationship
Relationship
Building Premiums
Premiums Games
Games
Building
Point-of-Purchase
Point-of-Purchase
Displays
Displays
Trade Promotions -- PUSH
Trade-Promotion
Trade-Promotion Tools
Objectives
Persuade
PersuadeRetailers
Retailersor
or Price-Offs Premiums
Price-Offs Premiums
Wholesalers
Wholesalersto
toCarry
CarryaaBrand
Brand
Give Allowances
Allowances Patronage
Patronage
Displays
GiveaaBrand
BrandShelf
ShelfSpace
Space Rewards
Rewards
Promote
PromoteaaBrand
Brandin
in Buy-Back
Buy-Back
Advertising Guarantees Discounts
Discounts
Advertising Guarantees
Push Push
PushMoney
Money
PushaaBrand
Brandto
toConsumers
Consumers Free
FreeGoods
Goods
Specialty
Specialty
Advertising
Advertising
Contests
Contests Items
Items
Identify and
Define Create Determine
analyze
Advertising advertising advertising
target
objectives platform appropriation
market
Evaluate Create Develop

Execute
advertising advertising Media
campaign
effectiveness messages plan
Target market selection
This is the single most important decision, because all

other decisions build upon it.
Is the budget sufficent?

Is the media message correct?
Are the media outlets appropriate?
All of these questions will depend upon the target

audience’s size, motivations, concerns, etc.
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 need to add life-style and
psychographic profile data
“This group aspires to have both a successful career and

family. These women are serious about child-rearing
responsibilities and are avid readers of books and articles on
the subject. They are primarily outer-directed Emulators and
Achievers in terms of VALS categories. They are concerned
about where and with whom they leave their children. Heir
child’s “experience” is of crucial importance, while cost of
the service is an important, but secondary, concern.”
Identify and
analyze
target
market

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

beyond a calendar or fiscal year.
Response Hierarchy Models
Hierarchy-of- Innovation- Communi-
Stages AIDA Effects Adoption cations
Model Model Model Model
Awareness Exposure
Cognitive Attention Awareness Reception
stage
Knowlege Cognitive
response
Interest Liking Interest Attitude

Affective Preference
stage
Desire Conviction Evaluation Intention
Trial
Behavior Action Purchase Behavior
stage
Adoption
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%, within one year , the
number of homemakers, age 25-55, that list our
brand in unaided recall when asked to name 5
different instant coffee brands.
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
Build
BuildPrimary
PrimaryDemand
Demand Build
BuildSelective
SelectiveDemand
Demand
Reminder
Reminder Advertising
Advertising
Keeps
KeepsConsumers
ConsumersThinking
Thinking
About
AboutaaProduct.
Product.
Identify and
analyze
target
market

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

newspapers, etc.)
Identify and
analyze
target
market

Execute
campaign
Issues to consider in setting
advertising budget
Product Life Cycle

Market share
Competitive clutter
Product Substitutability
Setting
Setting Advertising
Advertising Budgets
Budgets
Affordable Percentage-of-
Method Sales Method
Setting Promotion Setting Promotion
Budget at the Level the Budget at a Certain %
Company Thinks They of Current or
Can Afford. Forecasted Sales
Competitive-Parity Objective-and-Task
Method Method
Setting Promotion Setting Promotion
Budget to Match Budget by Defining
Competitors’ Outlay Objectives, Tasks &
Costs.
Identify and
analyze
target
market

Execute
campaign
Issues in Selecting Advertising Media
Reach,
Reach,Frequency,
Frequency,and
andImpact
Impact
Major
MajorMedia
MediaType
TypeOptions
Options
Media
MediaHabits
Habitsof
ofTarget
TargetConsumers
Consumers
Nature of the Product
Type
Typeof
ofMessage
Message
Cost
Cost
Specific
SpecificMedia
MediaVehicles
Vehicles
Specific
SpecificMedia
MediaWithin
WithinaaGiven
GivenType
Type(e.g.,
(e.g.,E.R.)
E.R.)
Balance Media Cost Against Media Factors:
Audience
AudienceQuality
Quality&&Attention,
Attention,Editorial
EditorialQuality
Quality
Media
MediaTiming
Timing
Scheduling
Schedulingof
ofAdvertising
AdvertisingOver
Overthe
theCourse
CourseofofaaYear
Year
Pattern
Patternof
ofAds:
Ads:Continuity
Continuityor
orPulsing
Pulsing
Profiles of Major Media Types
Newspapers
Advantages: Flexibility, timeliness; good local market coverage;
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 compe-
tition within same medium; allows personalization
Limitations: Relative high cost; “junk mail” image
Profiles of Major Media Types
Radio
Advantages: Mass use; high geographic and demographic
selectivity; low cost
Limitations: Audio only; fleeting exposure; lower attention;
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;
no guarantee of position
Outdoor
Advantages: Flexibility; high repeat exposure; low cost;
low message competition
Limitations: Little audience selectivity; creative limitations
Reach,
Reach,Frequency,
Frequency,and
andImpact
Impact
Major
MajorMedia
MediaType
TypeOptions
Options
Media
MediaHabits
Habitsof
ofTarget
TargetConsumers
Consumers
Type
Typeof
ofMessage
Message
Cost
Cost
Specific
SpecificMedia
MediaVehicles
Vehicles
Specific
SpecificMedia
MediaWithin
WithinaaGiven
GivenType
Type(e.g.,
(e.g.,E.R.)
E.R.)
Audience
AudienceQuality
Quality&&Attention,
Attention,Editorial
EditorialQuality
Quality
Media
MediaTiming
Timing
Scheduling
Schedulingof
ofAdvertising
AdvertisingOver
Overthe
theCourse
CourseofofaaYear
Year
Pattern
Patternof
ofAds:
Ads:Continuity
Continuityor
orPulsing
Pulsing
Reach,
Reach,Frequency,
Frequency,and
andImpact
Impact
Major
MajorMedia
MediaType
TypeOptions
Options
Media
MediaHabits
Habitsof
ofTarget
TargetConsumers
Consumers
Type
Typeof
ofMessage
Message
Cost
Cost
Specific
SpecificMedia
MediaVehicles
Vehicles
Specific
SpecificMedia
MediaWithin
WithinaaGiven
GivenType
Type(e.g.,
(e.g.,E.R.)
E.R.)
Audience
AudienceQuality
Quality&&Attention,
Attention,Editorial
EditorialQuality
Quality
Media
MediaTiming
Timing
Scheduling
Schedulingof
ofAdvertising
AdvertisingOver
Overthe
theCourse
CourseofofaaYear
Year
Pattern
Patternof
ofAds:
Ads:Continuity
Continuityor
orPulsing
Pulsing
Classification of
Advertising Timing Patterns
Level Rising Falling Alternating
(1) (2) (3) (4)
Concen-
trated
(5) (6) (7) (8)

Continuous
(9)
(9) (10) (11) (12) Number of
Inter- messages
mittent per month
Month
Identify and
analyze
target
market

Execute
campaign
Factors Impacting the
Receipt of a Message
Selective Attention
Selective Distortion
Selective Retention
Issues
Issues to
to Consider
Consider in
in
Designing
Designing thethe Message
Message
Message Content
Rational Appeals
Emotional Appeals
Moral Appeals
Message Structure
Draw Conclusions
Argument Type
Argument Order
Message Source
Expertise,
Trustworthiness,
Likeability
Typical Message Execution Styles
Comparisons
Comparisons Real
Realororanimated
animated
Symbol
Symbol
Slice
Sliceof
ofLife
Life Mood
Moodoror
Image
Image
Lifestyle
Lifestyle
Demonstration
Demonstration
Spokesperson
Spokesperson
Musical
Musical
Fantasy
Fantasy
Scientific
Scientific
Humor
Humor Evidence
Evidence
Stylistic Approaches
• Can present many points quickly
• Cost less than drama to produce
• Audience can become distracted
DRAMA
• Discount all or part of the facts
COMBINATION
• Characters speak to each other –

not the audience
LECTURE
• Consumers must infer lessons
• Conclusions are more likely to be
accepted
Common Appeals
Vanity
Vanityand
andegotism
egotism Profit
Profitmotive
motive
Fun Health
Healthconcerns
concerns
Funand
andpleasure
pleasure
Common
Common
Convenience
Message
Message Love
Love
Convenience
Appeals
Appeals
Admiration/worship Sex
Sex
Admiration/worship
Fear
Fear
Identify and
analyze
target
market

Execute
campaign
Identify and
analyze
target
market

Execute
campaign
Advertising Evaluation
Advertising
Advertising Program
Program Evaluation
Evaluation
Communication
Communication Effects
Effects Sales
Sales Effects
Effects
(to
(to the
the extent
extent possible)
possible)
Is
Isthe
theadvertisement
advertisement
meeting
meetingthe
thespecific
specific
communication Is
Isthe
theAd
Ad Increasing
IncreasingSales?
Sales?
communicationobjective?
objective?

Advertising and Sales Promotion Strategy

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Advertising and Sales Promotion Strategy

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Advertising and Sales Promotion

Sales Promotion Short-term Incentives to

Protect and/or Promote

Evaluate Create Develop

This is the single most important decision, because all

Is the budget sufficent?

All of these questions will depend upon the target

Target market of a national chain of child day-care

“Female household heads aged 25 to 34 employed

“This group aspires to have both a successful career and

Evaluate Create Develop

2. Advertising has a carryover / delay effect that extends

Interest Liking Interest Attitude

Example advertising objective

• Specific Communication Task

Evaluate Create Develop

A general notion of the media type (e.g., TV, radio,

Evaluate Create Develop

Product Life Cycle

Evaluate Create Develop

(5) (6) (7) (8)

Evaluate Create Develop

• Characters speak to each other –

Evaluate Create Develop

Evaluate Create Develop

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