19-1

ADVERTISING
Learning Objective
To understand advertising.
19-2
20-3
The best advertising
is done by satisfied
customers.
Kotler on
Marketing
Marketing Communications
Mix
Advertising
Public Relations and
Publicity
Sales Force
Direct and
Interactive
Marketing
Word-of-
Mouth
Events and
Experiences
Sales
Promotion
Vodafones ZooZoo Ad
Campaign

25-6
According to popular Advertising Theory, It
takes a minimum of nine repetitions before the
consumer actually considers your ad seriously
and wonder if it amounts to anything. By 13
th

time, he thinks what you advertising is good
thing. By 14
th
time that he sees the same ad, he
remembers he wanted such a thing a long time.
By 19
th
time, he counts his money carefully and
by 20
th
time that he sees the ad, he goes and
buys the article
19-7
19-8
Advertising is any paid form of
nonpersonal presentation and promotion of
ideas, goods, or services by an identified
sponsor.

Advertising is a public notice meant to
convey information and invite patronage
or some other response.


25-9

19-10
Developing Advertising
Programs
Buyer
Motives
Social
Psychological
Economic
The Five Ms of Advertising
Advertising Objectives
Persuade
Remind
Inform
Reinforce
19-14
INFORMATIVE
A giant U
Agency: O&M
Reasons: Signature of mother brand Unilever
U means Youu ( Indian Consumer)
Canara Bank
Agency: O & M
Base Line: We all change for our loved ones


19-15
19-16
Persuasive
Tata Tea
Agency: Lowe
Base Line: Har Subah basUtho Mat, Jaago Re


19-17
19-18
Reminder
Aviva Life Insurance

19-19
19-20
Reinforcement

Automobile ads often depict satisfied
customers enjoying special features of their
new car.



19-21
Advertising
Strengths
Informs,
persuades,
reminds,
reinforces
Builds brand
equity
Can reach large
audiences
Weaknesses
Expensive
Cluttered
Advertising types
Brand-building
Tactical
-Direct response
National
Public service
Selective-
demand
Corporate
Advocacy
Primary-demand Retail
B2B
Trade

19-24
Other Objectives.
To incresae sales
To support sales force
To enter new markets
To counteract competition
To introduce new products
To build image
To fight prejudices
Purple Cow
25-25
Profile of Major Media Types
Medium Advantages Disadvantages
Newspapers
Flexibility; timeliness;
local; believability
Short life; small pass-
along; reproduction
Television
Multiple senses;
appealing; high
attention; high reach
High absolute cost;
clutter; fleeting exposure;
less audience selectivity
Direct Mail
Audience selectivity;
flexibility; personalized
Relatively high cost;
junk mail image
Radio
Mass use; high
selectivity; low cost
Single sense; passive;
fleeting exposure
Profile of Major Media Types
Medium Advantages Disadvantages
Magazines
High selectivity; high
quality; credibility and
prestige; long life
Long lead time; waste in
circulation
Outdoor
Flexibility; low cost;
high repeat exposure;
low competition
Low audience selectivity;
creative limitations
Yellow Pages
Excellent local coverage;
high believability; wide
reach; low cost
High competition; long
lead time; creative
limitations
Internet
High selectivity;
interactive possibilities;
low relative cost
Increasing clutter
Alternate Advertising Media
Billboards
Public Spaces
Product Placement
Point of Purchase
Place Advertising
Billboards
Public spaces
Product placement
Point-of-purchase



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

Definition
Sales promotions
action focused
marketing events
whose purpose is to
have a direct impact
on the behavior of
the firms customers
Sales Promotion
Short term
Stimulate Sales
How does it differ from Advertising?
Sales Promotion
Short-term focus - immediate
response
Quick sales
Helps boost market share


Advertising
Long-term focus
Image building positioning
Sales Promotion used by Dainik Bhaskar
As per the scheme a customer needed to pay Rs. 200 in
advance for a yearly subscription and on that too a gift
worth Rs. 100 was assured. That means the customer was
paying only Rs. 100 for the yearly subscription, around 28
paise per copy. This strategy made the difference and the
company was able to book 1,86000 copies prior to the
launch.
Trade
sales
promotion
Allowances
Sales
contests
Price deals Trade shows
Training
programmes
Cooperative
advertising
Sales promotion tools
Consumer
sales
promotion
Price
discounts
Coupons
Sampling
Rebates Contests
Sweepstakes
Loyalty
points
Point-of-
purchase
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
Trade shows
Specialty advertising
Coupons
Certificate entitling the bearer
to a stated saving on the
purchase of specific product.
Can be mailed, attached to
other products, inserted in
magazine and newspaper ads.
Samples
Allowing the Customer to Experience the
Product or Service.
Very Effective Strategy for Introducing
A New or Modified Product.
Most Common Method of Distributing
Samples is Through the Mail.
9 Out of 10 Customers Prefer a Sample
To a Cents-Off Coupon to Introduce
Product.
Contests/Sweepstakes
Contests/Sweepstakes
Contests
Compete for a Prize Based
On Some Skill or Ability
Generates
High Degree
Of Consumer
Involvement

Can Help
Revive
Lagging
Sales

Sweepstakes
Participants Submit Names
To Be Included in Drawing
Game
Type of Sweepstakes;
Time Frame Much
Longer
Contests/Sweepstakes

POP
Cent Off Deals (Price Packs)
20-49
Major Business-and Sales-Force-Promotion Tools
Trade Shows and Conventions: Industry associations organize annual trade
shows and conventions. Business marketers may spend as much as 35
percent of their annual promotion budget on trade shows. Over 5,600 trade
shows take place every year, drawing approximately 80 million attendees.
Trade show attendance can range from a few thousand people to over 70,000
for large shows held by the restaurant or hotel-motel industries. Participating
vendors expect several benefits, including generating new sales leads,
maintaining customer contacts, introducing new products, meeting new
customers, selling more to present customers, and educating customers with
publications, videos, and other audiovisual materials.
Sales Contests: A sales contest aims at inducing the sales force or dealers
to increase their sales results over a stated period, with prizes (money, trips,
gifts, or points) going to those who succeed.
Selecting Business-and
Sales-Force-Promotion Tools
Balancing sales promotion:
How much is too much?
Strengths
Immediate results
Direct impact on sales
Measurable
Clears extra inventory
Fights competitive promotions
Gets trade support
Less expensive than advertising
Weaknesses
Short-term results
Makes consumers deal prone
May erode brand equity & loyalty
Cluttered
Direct marketing
One-to-one approach
that uses advertising
media to produce an
inquiry, a transaction
and some other
immediate response

No intermediary
between manufacturer
& customer

Requires a database
Direct mail
Direct response TV/radio
Mail-order catalogues
Internet
Telemarketing
Tools
Direct marketing
Strengths
Highly targeted
Measurable
Personalization & customization possible
Two-way communication
Relationship building
Weaknesses
Expensive
Not suitable for large audiences
Publicity
Non-personal
communication by
third-party sources
regarding an
organizations
products
Tools
Press releases
Press conferences
Special events
Opinion polls
Interviews
Contests
Weblog writeups


PUBLIC RELATIONS

A public is any group that has
an actual or potential interest
in or impact on a companys
ability to achieve its
objectives. Detailed
explanation/demonstration of
product.

Public relations (PR) involve a
variety of programs designed to
promote or protect a companys
image or its individual products
Public relations
Positively influencing
public opinion to
build goodwill, and
earn appreciation and
acceptance
May result in publicity

Tools
Publicity tools
Community affairs
Events and
conventions
Corporate advertising
Lobbying
The publics of PR
PR
Media
Community
Government
Shareholders
Customers
Employees
Publicity/PR
Strengths
Builds goodwill
Low cost
Reaches many audiences
Weaknesses
Little control
Hidden costs
Difficult to measure
No direct impact on sales