Advertising and Sales Promotion DSBS 2013-15

ADVERTISING & SALES
PROMOTION
PGDM II year DSBS 2013-15
Only the brave or ignorant can say

exactly what advertising does in the
market place
Is your Advertising getting results? It sure

is! Last week we advertised for a nightwatchman and the next night we were
robbed
Session-I
Introduction to
Advertising
Marketing Defined
Marketing is a societal process, by which individuals and
groups obtain what they need and want through creating,

offering, and freely exchanging products and services of value
with others.
Marketing Mix
Product
Price
Promotion
Place
Promotional Mix
Sales promotion
Advertising
Sales force
Public relations, Publicity
Direct mail, Telemarketing and Internet
Promotion
The coordination of all seller-initiated efforts to set up
channels of information and persuasion in order to sell goods

and services or promote an idea.
Elements of Promotional Mix

Advertising
Interactive /
Internet
Marketing
Direct
Marketing
Promotional
Mix
Personal
Selling
Sales
Promotion
Publicity /
PR
Concept and Definition of Advertisement
Advertising
Advertising is any paid form of non personal presentation and
promotion of ideas, goods, or services by an identified

sponsor.
52 possible ad objectives (Russell Colley)
Major objectives are: Inform, Persuade or Remind
Art of telling and selling
Can be given at three periods
Before need arises
By the time of the need
After the need arises
Paid Aspect
The space or time for an advertising message generally must
be bought. In case of Public Service Announcements (PSA)

whose advertising space or time is donated by the media.
Non Personal Aspect

Non personal component means that advertising involves
mass media. (e.g. TV, radio, magazines, newspapers) that can

transmit a message to large groups of individuals, often at the
same time.
Introduction to Advertisement
The activity of attracting public attention to a product or
business, as by paid announcements in the print,

broadcast, or electronic media.
Paid form of a non personal message communicated
through the various media by industry, business firms,
nonprofit organizations, or individuals. Advertising is
persuasive and informational and is designed to influence
the purchasing behavior and/or thought patterns of the
audience. Advertising is a marketing tool and may be
used in combination with other marketing tools, such as
sales promotions, personal selling tactics, or publicity.
What is Advertising?
Three criteria must be met for a communication to be
classified as advertising:
The communication must be paid for.
The communication must be delivered through mass media.
The communication must be
attempting to persuade.
5 Ms of Advertising
Mission
Money
Message
Media
Measurement
Advertising characteristics
Paid form
About ideas, goods or services

Maximum control over the message
Inform and persuade
Has its selected market
Less credible
Subjective
Product brand related message
Non personal communication
By an identified sponsor
Forms of Advertisements
Advocacy
Comparative
Cooperative
Direct-mail
Informational
Institutional
Outdoor
Persuasive
Product
Reminder
Point-of-purchase
Specialty advertising.
Classification of Advertising
For whom (target audience- Industrial, Consumer)
Geographic coverage (local, regional, national, international)

Media used (print, electronic, direct mail, outdoor)
Aim(financial, demand, social messages, direct action)
Audience Geography
Global
International
National
Regional
Local
Audiences for Advertising

Household Consumers
Business Organizations
The Trade Channel
Professionals
Government
Functions of advertising
Informs the buyers
Offers an incentive
Reminds the benefits
Stimulates to try the product once
Builds brand
Reduces selling costs
Persuades people
Session II
Social, Ethical & Legal
Aspects
Social Implications of Advertising
Social aspects of advertising

Consumerism
Consumer culture
Consumer awareness
Consumerism
Ability and capability of consumers to purchase various goods
& services
After industrial revolution (preference to consumers)
Advancement in areas of education and research, technology
in all fields have been continuously upgraded
It resulted in increased production, increased employment
opportunities, generation of income, distribution and friendly
consumption.
Consumer culture
Improves the culture of the consumers
The growth of consumer culture diverted the purchasing
power of middle class people towards the purchase of

products like TV, refrigerator, air cooler, cellular phone, etc
Consumer awareness
There are more than 20 legislative enactments in India to
protect the rights of the consumers

The ad should help to protect the rights of the consumers
Education and media played a significant role to create
awareness among consumers
Economic Implications of Advertising
Role of advertising in Economy

All that ad has to do is to sell a product or service
Ads do the sales job better

Performs economic function by being an art of persuasion
Ads create wide markets
Effects of Advertising
Effects of advertising on costs
Effects of advertising on total marketing costs
Effects of advertising on total manufacturing costs
Effects of advertising on price
Prevents price competition for a longer period
Effects of advertising on quality

Stimulates product improvement
Effects of advertising on investment and the level of national
income
Ethical & Legal Implications of Advertising
Code of Advertising Ethics in India

Advertising shall be designed as to confirm to the laws of the
country and should not offend against morality, decency and

religious susceptibilities of the people.
General rules of conduct in advertising

Derides any race, caste, color, creed and nationality;
Is against any of the directive principles, or any other provision
of the Constitution of India;

Tends to incite people to crime, cause disorder or violence, or
breach of law or glorifies violence or obscenity in any way;
Presents criminality as desirable;
Adversely affects friendly relations with foreign States;
Exploits the national emblem, or any part of the constitution
or the person or personality of a national leader or State
Dignitary;
Relates to or promotes cigarettes and tobacco products, liquor,
wines and other intoxicants;

No advertisements message shall in any way be
presented as News.
Advertisements for services concerned with the
following shall not be accepted: Money lenders;
Chit funds;
Saving schemes and lotteries other than those conducted by
Central and State Government organisations, nationalised or

recognized banks and public sector undertakings;
Matrimonial agencies;

Unlicensed employment services;
Fortune tellers or sooth-Sayers etc. and those
with claims of hypnotism;

Foreign goods and foreign banks.
Betting tips and guide books etc. relating to
horse-racing or the other games of chance.

No advertisement shall contain references which are likely to
lead the public to infer that the product advertised or any

advertised or any of its ingredients has some special or
miraculous or super-natural property or quality, which is
difficult of being proved, e.g. cure for baldness, skin whitener,
etc.
Advertisements shall not contain disparaging of derogatory
references to another product or service.
Testimonials must be genuine and used in a manner not to
mislead the listeners. Advertisers or Advertising Agencies must
be prepared to produce evidence in support of their claims.

No advertisement of any kind of jewellery (except artificial
jewellery) or precious stones shall be accepted.

Information to consumers on matters of weight, quality or
prices of products where given shall be accurate.
Advertisements indicating price comparisons or reductions
must comply with relevant laws.
Advertisements for products specifically offered to women
shall not be advertised as products that are effective in
inducing miscarriage.
Advertisements relating to claims about curing of sexual
weakness, premature ageing, loss of virility, sexual excesses
etc. shall not be accepted.

There should be no exaggerated claims regarding the composition, character,
action and suitability of the purpose for which it is recommended.

When words such as college, clinic, institute and laboratory are used in
advertisements, such references can be made only when the said
establishment does actually exist.
The portrayal of the female form shall be aesthetic and within the well
established norms of good taste and decency.
Women must not be portrayed in derogatory light and in a manner that
emphasizes passive, submissive qualities and encourages them to play a
subordinate and secondary role in family and in society.
Scientific or statistical excerpts from technical literature etc. may be used
only with a proper sense of responsibility to the ordinary viewer.
Rules and acts framed to maintain

standards in advertising
Drugs and Cosmetics Act, 1940.
Drugs Control Act, 1950.
Drugs and Magic Remedies (Objectionable Advertisement) Act, 1954.
Copyright Act, 1957.
Trade and Merchandise Marks Act, 1958.
Prevention of Food Adulteration Act, 1954.
Pharmacy Act, 1948.
Prize Competition Act, 1955.
Emblems and Names (Prevention of Improper Use) Act, 1950.
Consumer Protection Act, 1986.
Indecent Representation of women (Prohibition) Act, 1986.
AIR / Doordarshan Code.
Code of Ethics for advertisement in India issued by the Advertising Council of India
Code of standards in relation to the advertising of medicines and treatments
Standards of practice for Advertising Agencies
Ethics in advertising
Advertising should be in conformity with the laws of land
Advertisements should not be done against the cultural, religious and
aesthetic values of the people

It should not propagate hatred and defame the peace of the nation
It should not aim to exploit the illiteracy and superstition of the people to
gain benefits
Advertisements should disseminate factual information
Advertisement should not hide or divert facts (They can inform the
ingredients of the product and the need for using the product)
Misleading statements (visual or verbal) should be avoided
Price, quality, procedure to procure, guarantee and warranty etc. should be
communicated with utmost care and prudence (cautiousness)
Comparisons which unfairly disparage (criticize) a competitive
product for service should be avoided

No advertisement should encourage or instigate the people to
practice illegal practices
Patent marks of other reputed concerns should not be used to
cheat the consumers
Obscene words / scenes in advertisements should be avoided
Without real intention, it should not be announced that
money will be returned if the purchaser is not satisfied with
the products
Apart from state advertisements, national symbols
and the photographs of national leaders should not

be used without getting prior permission from the
competent authorities concerned
No advertising should canvass for pawn broking,
deposits for unregistered financial firms and
employment bureaus, bogus marriage brokerage,
astrology and magical skills.
Legal issues of advertising

Article 19 (1) all citizens shall have the right to freedom of
speech & expression.

Article 19(1) a - restricts & prohibits the ads for drugs
Article 19(2) right to information and expression can be
resticted on the following grounds

Security of the state
Friendly relations with foreign states

Public order
Decency of morality
Contempt of court
Defamation
Incitement (encouragement) of an offence
Sovereignty and integrity of India

Obvious untruths and exaggeration
Advertisements
should not depict children leaning

dangerously outside windows, over bridges or climbing
dangerous hills.
Advertisement should not show children using or playing with
matches or any inflammable or explosive substance
Viz. playing with knives, guns & electrical appliances
Advertisements shall not propagate products the use of which
is banned under law
Comparisons should be factual and accurate.
Session III
Advertising Agency
Advertising Agency
Advertising agency is defined as an organisation whose
business consists in acquisition as a principal of the right to use

space or time in advertising media and the administration on
behalf of the advertisers, of advertising appropriations made
by them.
Tasks of an advertising agency

Copy writing
Art pictures & photographs

Media planning & buying of space
Radio & television producing commercial spots
The work of market research

Production film or tape for use
Public relations
Forwarding the advertising materials to the media
owners and the clients in time
Agency should require

Sales ability
Creative ability
Management ability
Types of Advertising Agencies

Full Service Agencies
Creative Boutique
Interactive Agency
In-House Agency
Media-Buying Agency
Direct Marketing Agency

E-Commerce Agencies
Sales Promotion Agencies
Event-Planning Agencies
Design Firms
Public Relations Firms
Full-service advertising agency

A full service agency typically includes an array of advertising
professionals to meet all the promotional needs of clients.

Full service agencies are not necessarily large organisations
employing hundreds or even thousands of people.
Advantages of using a full service ad agency

In-depth knowledge and skills
Obtaining negotiating muscle with the media

Coordinating advertising and marketing efforts
Use services only when they are needed
Availability of high-caliber creative talent
Potential cost efficiencies
Disadvantages of using a full service ad

agency
Some control is lost
Larger clients are favored over small clients
Occasionally inefficient in media buying
Specialists approach client problems in a stereotyped fashion
Lack of cost accountability

Financial instability of smaller boutiques
Steps in selecting an advertising agency

The size of the agency.
The relevant experience of the agency.

Conflicts of interest.
Creative reputation and capabilities.
Production capabilities.
Media purchasing capabilities.
Other services available.
Client retention rates.

Personal chemistry
Steps in selecting an advertising agency

Identify and prioritize corporate goals.
Develop agency selection process and criteria.

Initially screen firms based on credentials, size, capabilities,
relevant experience and conflict of interests.

Request client references.
Do background check with other firms and media agents.
Request written and oral presentation.
Meet creatives, media buyers, account executives and other
personnel that will work with account.
Capabilities of an ad agency
Marketing & media planning
Research & analysis

Advertising campaigns local, regional & national
Creative concept / copywriting
Logo / corporate identity development
Graphic design & production
Direct marketing programs
Media placement
Public relations / special event planning
Ad agency Remuneration
Three methods used to compensate ad agencies
Commission
Negotiated fee
Percentage charges
Compensation of Ad Agencies
Initially agencies just sold space for the media and made
money
Marketed space for the press and the magazines
Paid on the basis of amount of space they sold by the media
Media Commissions
Media commission is an amount paid by the media to an
agency which has bought space or time for its clients

Generally 15% on the space sold by an agency
Reasons for losing clients

The clients dissatisfaction with the agencys performance
with regard to advertising quality or service

Poor communication between the client and the agency
personnel hinders a good working relationship
Personality clashes between client and agency personnel
Unrealistic client demands, which reduce the accounts
profitability for the agency

New managers in clients organisation may want to use an
agency with which they already have established ties.

Often when agencies merge, there is a conflict of interest as
two close competitors may be on the merged agencys
account list.
Changes in the clients marketing strategy may lead to change
of agency.
When the companys sales decline, the advertising agency is
viewed as unsuitable and the agency changed

The client may insist upon adopting a compensation method
to which the agency disagrees

When some companies or agencies outgrow in size, either may
think the other unsuitable and sever the ties
Session IV
Advertisement Media
What media to use?

Media Planning and Types
What channel will be most effective to reach target market(s)
Depends heavily on promotional objectives
What is it the company wants to convey? Action of the product
itself? Credibility of company or service? Brand name?
Major Types of Advertising Media

Newspapers
Magazines
Radio
Television
Outdoor Media
Internet
Alternative Media
Considerations for selecting Media

The media mix decisions
Cost per contact
Reach
Frequency
Target audience characteristics
Mediums flexibility
Noise level
Life span of medium
Session V
Communication Process:
Source, Message & Channel
factors
The Communications Process
Attractive sources are appropriate for image-related

products
There are many forms of encoding

Encoding
Verbal
Spoken
Word
Graphic
Pictures
Musical
Animation
Arrangement
Action/
Motion
Instrumentation
Pace/ Speed
Drawings
Written
Word
Song Lyrics
Charts
Voices
Shape/
Form
The Semiotic (symbols & signs) Perspective

Three Components to every marketing message
Object
Brand such as
Marlboro
Interpretant/
intended meaning
(masculine,rugged
individualistic)
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Sign or symbol
representing intended
meaning (Cowboy)
What is the symbolic meaning of the Snuggle bear?
+
Images Encoded in Pictures Convey Emotions Very

Powerfully
+
Forms of Personal Communication

Vocabulary
Verbal
Grammar
Inflection
Inflection
(modulation)
Gesture
Nonverbal
Facial
Expression
Body Language
Communications Channels
Personal Selling
Personal Channels
Word of Mouth
Print
Media
Nonpersonal
Channels
Broadcast
Media
Experiential Overlap
Different Worlds
Receiver
Experience
Sender
Experience
Moderate Commonality
Sender
Experience
Receiver
Experience
High Commonality
Receiver
Sender
Experience
Experience
Receiver
Experience
Levels of Audience Aggregation

Mass Markets
Market Segments
Niche Markets
Small Groups
Individuals
Models of the Response Process
Advertising Creates Awareness for a New Product
+
Models of Obtaining Feedback

Effectiveness Test
Persuasion Process
Circulation Reach
Exposure, Presentation
Listener, Reader,
Viewer Recognition
Attention
Recall, Checklists
Comprehension
Brand Attitudes,
Purchase Intent
Message Acceptance/
Yielding
Recall Over Time
Retention
Inventory, POP
Consumer Panel
Purchase Behavior
Alternative Response Hierarchies

Topical Involvement
High
Cognitive
Affective
Conative
Dissonance/
Attribution Model
Low
Perceived product
differentiation
High
Learning Model
Conative
Affective
Cognitive
Low
Low Involvement
Model
Cognitive
Conative
Affective
Clever Ads Encourage Low

Involvement Learning
+
Computers are high-involvement,

highly differentiated products
+
Cognitive Response
A method for examining consumers cognitive
processing of advertising messages by looking at
their cognitive responses to hearing, viewing, or
reading communications.
Examines types of thoughts that are evoked by an
advertising message.
Consumers write down or verbally report their
reactions to a message.
A Model of Cognitive Response
Cognitive Response Categories

Product/Message Thoughts
Counter Arguments
Support Arguments
Source - Oriented Thoughts

Source Derogation
Source Bolstering
Ad Execution Thoughts
Thoughts About
the Ad Itself
Affect Attitude
Toward the Ad
Elaboration Likelihood Model

Focuses on the way consumers respond to persuasive
messages based on the amount and nature of elaboration
or processing of information
Routes to attitude change
Central route to
persuasion ability
and motivation to
process a message is
high and close
attention is paid to
message content
Peripheral route to
persuasion ability
and motivation to
process a message is
low and receiver
focuses more on
peripheral cues rather
than message content
Celebrity Endorsers Can Be Peripheral Cues
+
How Advertising Works

Advertising Input
Message content, media
scheduling, repetition
Filters
Motivation, ability,
(involvement)
Consumer
Cognition, Affect, Experience
Consumer Behavior
Choice, consumption,
loyalty, habit, etc.
Session VI Case Study

Dove: Campaigning for Real Beauty
Session VII
Establishing Objectives and Budgeting
Promotional Programs
Value of Objectives
Objectives
Focus &
Coordination
Plans &
Decisions
Measurement
& Control
Characteristics of Objectives
Attainable
Realistic
Measurable
Objectives
Not Mutually
Exclusive
Specific
Advertising Can Shape Corporate Images
+
Marketing Versus Communications Objectives

Marketing Objectives
Communications
Objectives
Generally stated in the

firms marketing plan
Achieved through the
overall marketing plan
Quantifiable, such as
sales, market share, ROI
To be accomplished in a
given period of time
Must be realistic and
attainable to be effective
Derived from the overall

marketing plan
More narrow than
marketing objectives
Based on particular
communications tasks
Designed to deliver
appropriate messages
Focused on a specific
target audience
Vs.
Many Different Factors Affect Sales
$ALE$
Promotion
Distribution
Competition
Technology
Product
Quality
Price Policy
The
Economy
Sales As Advertising Objectives
+
Direct Response Ads Seek Sales
+
Many Ads Seek Communications Objectives
+
Advertising and Movement Toward Action
Conative
Realm of motives.
Ads stimulate or direct
desires.
Affective
Realm of emotions.
Ads change attitudes and
feelings
Purchase
Conviction
Preference
Competitive ads
Argumentative copy
Liking
Image copy
Status, glamour appeals
Knowledge
Announcements
Descriptive copy
Classified ads
Slogans, jingles, skywriting
Awareness
Teaser campaigns
Cognitive
Realm of thoughts.
Ads provide information
and facts.
Point of purchase
Retail store ads, Deals
Last-chance offers
Price appeals, Testimonials
Image Ads Can Have a Strong

Effect on Preference
+
The DAGMAR Approach
Define
Advertising
Goals for
Measuring
Advertising
Results
DAGMAR Difficulties
Legitimate Problems
Attitude - Behavior
Relationship
Response Hierarchy
Problems
Questionable Objections
Sales Objectives
Needed
Costly and Impractical
Inhibits Creativity
Advertising-Based View of Communications

Advertising Through Media
Acting on Consumers
Balancing Objectives and Budgets
What were
willing and able
to spend
Dollars
What we need to
achieve our
objectives
Goals
Marginal Analysis
Gross Margin
Sales in $
Sales
Ad. Expenditure
Profit
Point A
Advertising / Promotion in $
BASIC Principle of Marginal Analysis
Increase Spending
If the increased cost is less than the

incremental (marginal) return
Hold
Spending
If the increased cost is equal to the

incremental (marginal) return.
Decrease Spending
If the increased cost is more than the

incremental (marginal) return
Assumptions for Marginal Analysis

Sales are the result of
advertising and
promotion, and
nothing else
Sales are the

principal objective
of advertising and
promotion
Advertising Sales/Response Functions
Advertising Expenditures
Initial Spending
Little Effect
Middle Level
High Effect
High Spending
Little Effect
B. S-Shaped
Response
Function
Incremental Sales
Incremental Sales
A. ConcaveDownward
Response Curve
Range A
Range B
Range C
Advertising Expenditures
Top-Down Budgeting
Top Management Sets the Spending Limit
The Promotion Budget Is Set to Stay Within the Spending

Limit
Top-Down Budgeting Methods

Competitive
Parity
Arbitrary
Allocation
Percentage
of Sales
Top
Management
Return on
Investment
Affordable
Method
Bottom-Up Budgeting
Total Budget Is Approved by
Top Management
Cost of Activities are Budgeted
Activities to Achieve Objectives

Are Planned
Promotional Objectives Are Set
Objective and Task Method
Establish Objectives
(create awareness of new product among 20 percent
of target market)
Determine Specific Tasks

(advertise on market area television and radio and
local newspapers)
Estimate Costs Associated with Tasks

(determine costs of advertising, promotions, etc)
Are There Economies of Scale?

Proposition I
Larger firms can support their brands with lower relative
advertising costs than smaller firms.
No evidence to support this!
Proposition II
The leading brand in a product group enjoys lower advertising costs per sales
dollar than do other brands.
Proposition III
There is a static relationship between advertising costs per dollar of sales and
the size of the advertiser.
Low
Competitors
Share of Voice
High
Ad Spending and Share of Voice
Decreasefind a
Defensible Niche
Increase to Defend
Attack With Large SOV

Premium
Maintain Modest
Spending Premium
Low
High
Your Share of Market
Session VIII
Creative Strategy : Planning & Development
Advertising Creativity
Creative
Strategy
Determining what the advertising

message will say or communicate
Creative
Tactics
Determining how the message

strategy will be executed
The Ideal Power Idea Should . . .

Be Describable in a Simple Word or Phrase
Be Likely to Attract the Prospects Attention
Revolve Around the Clinching Benefit
Allow You to Brand the Advertising
Let Prospects Vividly Experience the Goods

Two Perspectives on Advertising Creativity
The ability to generate fresh, unique and appropriate ideas

that can be used as solutions to communication problems.
Its not
creative
unless it sells
Suits
Artists
Only artistic
value and
originality
count
Young's Creative Process

Immersion
Getting Raw Material, Data, Immersing One's

Self in the Problem to Get the Background.
Digestion
Ruminating on the Data Acquired, Turning It

This Way and That in the Mind.
Incubation
Ceasing Analysis and Putting the Problem Out

of Conscious Mind for
a Time.
Illumination
A Sudden Inspiration or Intuitive Revelation

About a Potential Solution.
Verification
Studying the Idea, Evaluating It, and Developing

It for Practical Usefulness.
Wallas View of the Creative Process

Illumination
Seeing the
Solution
Preparation
Preparation
Gathering
Gathering
Information
Information
The
Creative
Process
Verification
Verification
Refining
Refining
the Idea
Incubation
Incubation
Setting
Setting
Problem
Problem
Aside
Aside
Getting Creative Input
Read anything related

to the product or
market!
Use the product to

become familiar with
it!
Work in and learn

about the clients
business!
Listen to what people

are talking about!
Ask everyone involved

for information!
Verification and Revision of Ideas

Evaluate Ideas Generated
Reject Inappropriate Ideas
Objective
Refine Remaining Ideas
Give Them Final Expression
Directed Focus Groups

Message Communication Studies
Techniques
Portfolio Tests
Viewer Reaction Profiles
The 10 greatest ad slogans of all time

Company or Brand
Campaign Theme
1. De Beers
Diamonds are forever
2. Nike
Just do it!
3. Coca Cola
The pause that refreshes
4. Miller Lite
Tastes great, less filling
5. Avis
We try harder
6. Maxwell House
Good to the last drop
7. Wheaties
Breakfast of champions
8. Clairol
Does she . . . or doesnt she?
9. Morton Salt
When it rains it pours
10. Wendys
Wheres the beef?
BMWs Slogan Has Helped Build Its Brand Image
+
An Advertising Campaign
Integrated
Integrated
Interrelated
Interrelated
Coordinated
Coordinated
Marketing
Communication Activities
Centered on a Theme or
Idea
InIn
Different
Different
Media
Media
Over a Time Period
Advertising Campaign Themes

The central message that will be communicated
in all of the various IMC activities
Miller
Lite
Miller
Lite
At a place called
Miller time
BMW
BMW
The Ultimate Driving

Machine
Chevy
Trucks
Like a Rock
Successful Long-Running Campaigns

Company or Brand
Campaign Theme
Nike
Just do it
Allstate Insurance
Youre in good hands with Allstate
Hallmark cards
When you care enough to send

the very best
Budweiser
This Buds for you
Intel
Intel inside
State Farm Insurance
Like a good neighbor,

State Farm is there
Chevy Trucks
Like a rock
Dial soap
Arent you glad you use Dial?
This ad is part of a new advertising campaign theme for

Miller Lite beer
+
Building a Copy Platform Outline

6. Supporting Information and Requirements
5. Creative Strategy Statement
4. Selling Idea or Key Benefits to Communicate
3. Specify Target Audience
2. Advertising and Communications Objectives
1. Basic Problem Advertising Must Address

Major Selling Ideas

Use a Unique
Positioning the Brand
Selling Position
Use a Unique
Create a Brand Image
Selling Position
Seeking the Major Idea
Positioning
Create
Find
thethe
Inherent
Brand Image
Drama
Approaches to the Major Selling Idea: USP

Unique Selling Proposition
Benefit
Buy this
produce and
you'll benefit
this way or
enjoy this
reward
Unique
Must be unique
to this brand or
claim; something
rivals can't or
don't offer
Potent
The promise
must be strong
enough or
attractive
enough to move
people
Perspectives of Great Ad Men on the Major Selling

Idea
David Ogilvy
Leo Burnett
Brand image or personality is

particularly important when
brands are similar
Find the inherent drama or

characteristic of the product that
makes consumers buy it
Every ad must contribute

to the complex symbol
that is the brand image.
(Inherent drama) is often

hard to find but it is always
there, and once found it is
the most interesting and
believable of all
advertising appeals.
Creating a Brand Image

Used when competing brands are so similar it is
difficult to find or create a unique attribute
The creativity sales strategy is based on a strong,

memorable brand identity through image advertising
Often used for products such as soft drinks, perfume,

liquor, clothing, airlines
Approaches to the Major Selling Idea:

Inherent Drama
Inherent Drama
Messages generally presented in a warm,

emotional way Hallmark, Maytag, Kellog
Focus on consumer benefits with an emphasis

on the dramatic element in expressing them
Approaches to the Major Selling Idea:

Positioning
Positioning
Establish a particular place in the customers

mind for the product or service
Based on product attributes/ benefits,

price/quality, use or application, type of user,
problem solved
This Ad Positions 3M as Highly Innovative
+
Session IX
Creative Strategy:
Implementation and Evaluation
Appeals and Execution Style
Advertising
Appeals
Execution
Style
The approach used to attract the

attention of consumers
To influence consumer feelings toward
a product,
service or cause
The way an appeal is turned into an

advertising message
The way the message is presented to

the consumer
Types of Rational Appeals

Feature: Focus on dominant traits of the product
Competitive: Makes comparisons to other brands
Price: Makes price offer the dominant point
News: News announcement about the product
Popularity: Stresses the brands popularity

A Rational, Popularity Appeal
+
Appealing to Personal States or Feelings

Achievement
Actualization
Ambition
Stimulation
Excitement
Grief
Joy
Nostalgia
Pride
Security
Sentiment
Accomplishment
Affection
Arousal
Comfort
Fear
Happiness
Love
Pleasure
Safety
Self-esteem
Sorrow
Appealing to Socially Based Feelings

Approval
Affiliation
Acceptance
Embarrass-ment
Social-Based
Feelings
Status
Belonging
Respect
Involvement
Rejection
Recognition
Transformational Ads
Feelings
Images
The ads
create . . .
Beliefs
Meanings
Richer
More
Exciting
It must make the

product use
experience . . .
Warmer
More
Enjoyable
Norwegian Uses Transformational Advertising
+
Norwegian Uses Transformational Advertising
+
Levels of Relationship with Brands
Emotions
Personality
Product Benefits
MasterCard Creates an Emotional Bond
+
Ad Execution Techniques
Straight-sell
Slice of life
Scientific
Testimonial
Demonstration
Animation
Comparison
Personality Symbol
Dramatization
Fantasy
Humor
Apple Uses a Testimonial
+
Crest Whitestrips Uses a Demonstration
+
Print Ad Components
Headline:
Words in the Leading Position of the Ad
Subheads:
Smaller Than the Headline, Larger Than the Copy
Body Copy:
The Main Text Portion of a Print Ad
Visual Elements:
Illustrations Such As Drawings or Photos
Layout:
How Elements Are Blended Into a Finished Ad
Altoids Uses a Headline Effectively
+
Headlines Can Capture Attention
+
Print Ad Layout
Format
Arrangement of the Elements on the Printed Page
Size
Expressed in Columns, Column Inches or Portions

of a Page
Color
Black & White or Two-, Three-, or Four-color

Printing
White
Space
Marginal and Intermediate Space That Remains

Unprinted
Top 10 Jingles of the Century

Company
Jingle
1. McDonalds
You deserve a break today
2. U.S. Army
Be all that you can be
3. Pepsi Cola
Pepsi Cola Hits the Spot
4. Campbells Soup
Mm, Good Mm Good
5. Chevrolet
See the USA in your Chevrolet
6. Oscar Mayer
I wish I was an Oscar Mayer Wiener
7. Wrigleys gum
Double your pleasure, double your fun
8. Winston
Winston tastes good like a cigarette should
9. Coca-Cola
Its the real thing
10. Brylcreem
BrylcreemA little dabll do ya
Production Stages for TV Commercials
Preproduction
All work before actual shooting,

recording
Production
Period of filming, taping, or recording
Postproduction
Work after spot is filmed or recorded
Preproduction Tasks
Select a Director
Preproduction
Meeting
Choose Production
Company
Preproduction
Production Timetable
Bidding
Cost Estimation and

Timing
Production Tasks
Production
Location Versus Set

Shoots
Night/weekend
Shoots
Talent
Arrangements
Postproduction Tasks
Editing
Processing
Release/
Shipping
Sound Effects
Postproduction
Audio/Video
Mixing
Duplicating
Client/agency
Approval
Opticals
Evaluation Guidelines for Creative Output

Consistent With Brands Marketing Objectives?
Consistent With Brands Advertising Objectives?
Consistent With Creative Strategy, Objectives?
Does It Communicate What Its Suppose to?
Approach Appropriate to Target Audience?
Communicate Clear, Convincing Message?
Does Execution Overwhelm the Message?
Appropriate to the Media Environment?
Is the Advertisement Truthful and Tasteful?
Session X
Media Planning
and Strategy
Media Terminology
Media
Planning
A series of decisions involving the delivery of messages

to audiences
Media
Objectives
Goals to be attained by the media strategy and

program
Media
Strategy
Decisions on how the media objectives can be attained
Media
The various categories of delivery systems, including

broadcast and print media
Broadcast
Media
Either radio or television network or local station

broadcasts
Media Terminology
Print
Media
Publications such as newspapers, magazines, direct

mail, outdoor, etc.
Media Vehicle
The specific carrier within a medium category
Reach
Number of different audience members exposed at

least once in a given time period
Coverage
The potential audience that might receive the message

through the vehicle
Frequency
The number of times the receiver is exposed to the

media vehicle in a specific time period
Developing the Media Plan

Situation
Analysis
Marketing
Strategy Plan
Creative
Strategy Plan
Setting Media Objectives

Determining Media Strategy
Selecting Broad Media Classes
Selecting Media Within Class
Media Use Decision

Broadcast
Media Use Decision

Print
Media Use Decision

Other Media
Media Planning Difficulties

Measurement
Problems
Lack of Information
Problems
in Media
Planning
Time
Pressure
Inconsistent
Terms
Developing the Media Plan

Analyze the Market
Establish Media Objectives
Develop Media Strategy
Implement Media Strategy
Evaluate Performance
Brand and Category Analysis
Brand Development Index

Percentage of brand to total U.S. sales
in market
BDI =
Percentage of total U.S. population

in market
X 100
Category Development Index

Percentage of total product category
sales in market
CDI =
Percentage of total U.S. population

in market
X 100
Low CDI
High CDI
High BDI
Low BDI
High market share

Good market potential
Low market share Good

market potential
High market share

Monitor for sales decline
Low market share

Poor market potential
Low CDI
High CDI
High BDI
Low BDI
The market usually represents

good sales potential for both
the product and the brand.
The product category shows high

potential but the brand isnt
doing well; the reason should be
determined.
The category isnt selling well

but the brand is; may be a good
market in which to advertise but
should be monitored for sales
decline.
Both the product category and

the brand are doing poorly; not
likely to be a good place to
advertise.
Target Audience Coverage

Population excluding target market
Target market
Media coverage
Media overexposure
Target
Market
Proportion
Full
Market
Coverage
Partial
Market
Coverage
Coverage
Exceeding
Market
Three Scheduling Methods

Continuity
Flighting
Pulsing
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Reach and Frequency

A. Reach of One Program
Total market audience reached

C. Duplicated Reach of Both
Total reached with both shows

B. Reach of Two Programs
Total market audience reached

D. Unduplicated Reach of Both
Total reach less duplicate
Graph of Effective Reach

Figure 10-22
+
Marketing Factors Determining Frequency

Marketing
Factors
Brand Loyalty
Brand History
Brand Share
Share of Voice
Usage Cycle
Purchase
Cycles
Target Group
Message Factors Determining Frequency

Message
or Creative
Factors
Message Complexity
Message Uniqueness
New Vs. Continuing Campaigns
Image Versus Product Sell
Message Variation
Wearout
Advertising Units
Media Factors Determining Frequency

Clutter
Scheduling
Repeat Exposures
Media Factors
Editorial
Environment
Attentiveness
Number of Media
Used
Determining Relative Cost of Media-Print
Cost per thousand (CPM)
CPM =
Cost of ad space
(absolute cost)
Circulation
X 1,000
Determining Relative Cost of Media-Broadcast
Cost per rating point (CPRP)
CPRP =
Cost of commercial time

Program rating
Television Pros and Cons

Advantages
Disadvantages
Mass Coverage
Low Selectivity
High Reach
Short Message Life
Impact of Sight, Sound

and Motion
High Absolute Cost
High Prestige
High Production Cost
Low Cost Per Exposure
Clutter
Attention Getting
Favorable Image
Radio Pros and Cons

Advantages
Disadvantages
Local Coverage
Audio Only
Low Cost
Clutter
High Frequency
Low Attention Getting
Flexible
Fleeting Message
Low Production Cost

Well-segmented Audience
Magazine Pros and Cons

Advantages
Disadvantages
Segmentation Potential
Long Lead Time for

Ad Placement
Quality Reproduction
Visual Only
High Information Content
Lack of Flexibility
Longevity
Multiple Readers
Newspaper Pros and Cons

Advantages
Disadvantages
High Coverage
Short Life
Low Cost
Clutter
Short Lead Time for Placing Ads
Low Attention Getting
Ads Can Be Placed in Interest

Sections
Poor Reproduction Quality
Timely (Current Ads)
Selective Reader Exposure
Reader Controls Exposure

Can Be Used for Coupons
Outdoor Pros and Cons

Advantages
Disadvantages
Location Specific
Sort Exposure Time
High Repetition
Short Ads
Easily Noticed
Poor Image
Local Restrictions
Direct Mail Pros and Cons

Advantages
Disadvantages
High Selectivity
High Cost Per Contact
Reader Controls Exposure
Poor Image (Junk Mail)
High Information Content
Clutter
Repeat Exposure Opportunities
Internet Pros and Cons

Advantages
Disadvantages
User Selects Product Information
Limited Creative Capabilities
User Attention and Involvement
Websnarl (Crowded Access)
Interactive Relationship
Technology Limitations
Direct Selling Potential
Few Valid Measurement

Techniques
Flexible Message Platform
Limited Reach
Session XI
Evaluation of Print media / Support
Media
Classifications of Magazines
By
Content
Audience
By
Geography
By
Size
Consumer
Magazines
Local
Large
Regional
Flat
National
Standard
Farm
Magazines
Business
Magazines
Small or
Pocket
An Example of a Farm Publication
+
Advantages and Disadvantages of Magazines

Advantages
Disadvantages
Selectivity
Costs
Reproduction Quality
Limited Reach
Creative Flexibility
Limited Frequency
Permanence (Long life span)
Long Lead Time (Required to

Long Lead Time
place an ad)
Prestige
Clutter
Receptivity, Involvement
Services
Magazine Circulation Concepts

Circulation: Number of individuals who receive a publication through either
subscription or store purchase.
Total Audience (the total

number of primary and
pass-along readers)
Primary
Circulation:
Primary
(Original subscribers or
Circulation
purchasers)
Guaranteed Circulation: A
rebate is given to advertisers is
Guaranteed
guaranteed
number is not met.
(Estimations
are made below
Circulation
the average)
Circulation Verification:
Controlled
Circulation
Pass-Along Readership: Giving
the magazine
by the primary
Pass-Along
subscriber or purchaser to an
Readership
other
person OR read
somewhere.
Credibility of circulation
Circulation
figures. Auditing is done
through verification
Verification
services.
Purchasing Magazine Advertising Space

Cost elements include many variables such as:
-Magazine Rates (Primarily a function of circulation)
-Size if the ad
-Position in the publication
-The particular edition chosen: (e.g., geographical or Demographic)
- Any special mechanical or production requirement
-Number and frequency of insertions
-Magazine networks: Offer advertisers the opportunity to buy space in a group of

publications as a package deal
The Future of Magazines

Declining
Declining Ad
Ad Revenues
Revenues(affected by, e.g., spending and competition)
Stronger
Stronger Editorial
Editorial Platforms
Platforms (for different appeals)
Circulation Management
Management: Maintaining a circulation level as a major
Cross-Mag.&&Media
Cross-Mag.
Media
Deals
Deals
(Packages offered to advertisers)
Trends,
Trends,
Trends
Database
Marketing Database MKG for better segmen
Database Marketing:
Advances
in Technology:
Selective binding & InkAdvances
in Technology
Electronic Delivery Methods

Magazines Go Online
+
Newspaper Classifications
Publication
Frequency
Daily
Weekly
National
Type
Special-Audience
Supplements
Standard
Size
Tabloid
Ethnic, Religious, Etc.
Audience Type
Business, Financial, Etc.
Characteristics of Newspapers
The Dominant Advertising Vehicle
Account for 22% of Ad Dollars
Over 1,500 Daily Papers in Print
Dailys Read by About 60% of adults
Main Community Medium
Local Ads Provide Most of Revenue
Unique Newspaper Features

Mass audience
Cross-section of population
Local geographic coverage
Wide range of content, subjects
Selective readership by area
Timely coverage, daily issues
Readership concentrated in time
Permanent, durable record
Newspaper Advertising
Local (Mostly Retail)
Display Ads
General (Often National)

Paid Reading Notices (Editorial Look)
Small Items Arranged by Topic
Classified Ads
Rates Based on Size, Duration

Classified Display - Combination
Legal Notices - Public Reports

Public Notices
Notices by People, Organizations

Financial Reports
Printed Inserts
Prepared Separately by Advertisers
Newspaper Advantages and Drawbacks

Advantages
Disadvantages
Extensive Penetration
Production Quality
May Be Low
Flexibility
They Have a
Short Life Span
Geographic Selectivity
Not Demographically Selective
Involvement, Acceptance
Not Psychographically Selective
Services Offered
There's Heavy Ad Competition
Potentially Poor Placement

May Be Overlapping Circulation
Newspaper Characteristics
Read by Almost All Consumers
Wide Audience
Read Daily in an Ordered Way

Readers Look at Over 3/4
of All Pages
Few Limitations on Ad Size
Spot and Full Color Available

Many Shapes, Sizes,
Paper, & Printing
Offer
Flexibility
The Future of Newspapers:

The future of newspapers depend on:
-Competition from other media
-Circulation
-Cross-media buying
-Attracting and Retaining Readers

-Editorials
-Technology
Session XII
Advertising and Social Media
Session XIII
Amplifying Perceptions: How Jetblue
Uses Twitter To Drive Engagement
And Satisfaction
Session XIV
Direct Marketing, Internet & Interactive
Media
Direct Marketing Defined

The total of activities by which the seller directs efforts to a
target audience using one or more media for the purpose of
soliciting a response by phone, mail, or personal visit from a
prospective customer.
TV Selling
Catalog Selling
Telemarketing
Direct Selling
Direct Mail
Direct Action Advertising
Growth of Direct Marketing

Consumer Credit Cards
Changing Structure of Society
Direct Marketing Syndicates (Companies are opening new opportunities

Direct
Marketing
Syndicates
for marketers
through (e.g.,
list development, Catalogs and Sweepstakes)
Technical Advances
Miscellaneous factors (e.g., Changing values, More sophisticated

marketing techniques and Improved image of the industries)
Direct Marketing Combines With . . .

Public
Relations
Personal
Selling
Advertising
Direct
Marketing
Support
Media
Sales
Promotion
Objectives of Database Marketing

Improve Selection of Market
Segments
Stimulate Repeat Purchases
Objectives
Cross-selling Other Products
Customer Relationship
Management
Developing a Database
List Services
Simmons Market
Research Bureau: (Research
on at home buying via Mail
or Telephone)
Standard Rate &

Data
ServiceRate
(Lists of
Standard
&
Consumers and Businesses.

Data
Service (SRDS)
Published in two volumes)
Sources
National Census
U.S. Census Bureau
Bureau
U.S.
Postal
Postal
Service
Service
Direct Marketing
Association
Direct-Marketing Strategies and Media

One Step
Two Step
The medium is used

directly to obtain an
order
May use one medium

to obtain inquiry and
qualify prospect
Often use 800 number

phone orders and credit
card payment
Typically follow up
with a second medium
to complete the sale
Direct Response Advertising Types

All forms of advertising designed to obtain
immediate, direct response by telephone, mail, or
personal visit from individual audience members.
e.g., Direct Mail Pieces and

Direct Mail Pieces and Inserts
Inserts Soliciting Inquiry
Soliciting Inquiry Recipients.
Recipients.
e.g., Coupon Booklets and

Card Decks, Coupon Booklets and
Vouchers; and Mini-catalogs
Mini-catalogs Seeking Orders for
Seeking Orders for One or More
One or More Products.
Products.
e.g.,and
TV
TVCATV
and CATV
Commercials
Commercials
and
Infomercials
and
Infomercials
Selling
Selling
Products
Products
by
Phone
by
Phone
or Mail
or Mail
Order.
Order.
e.g., Newspapers, Magazines and

Other Print Media Ads With
Send-in or Call-in Coupon Order
Forms.
Types of Direct Mail

All forms of advertising sent directly to
prospects through the Postal Service or through
private services.
House organs
Inclusions
Inclusions (e.g., in newspapers)
Broadsides (e.g., on ships)

Broadsides
Postcards
Catalogs
Reprints
Flyers
Sales letters
Folders
Self-mailers
Direct Mail Advantages

Control
Coverage
Selectivity
Exclusivity
Advantages
Response
Flexibility
Reach
Impact
Direct Mail Disadvantages
Disadvantages
Clutter
Negative Image of Medium

Delays in Delivery
High Cost Per Exposure
List Quality Uncertainty
No Content Support
Saturation Among Audience

Pros & Cons of Catalogs

+ Pros
Provides Buyers With
Wide Selections
Usually Welcomed
by Shoppers
Design Offers High
Impact Potential
Merchandise Is
Centrally Inventoried
Fulfillment Facilities Closely
Controlled
Timing Can Be Geared
to Seasonal Needs
Split-run Testing
Can Insure Effectiveness
- Cons
Production Costs
Are Usually Very High
Saturation for
Some Markets Is Likely
Delivery or Fulfillment
May Be Delayed
Delivery or Fulfillment
May Be Delayed
Customer Cant Inspect
or Handle Goods
Outbound and Inbound Telemarketing

Outbound
Telephone calling by the

marketer or marketers
agent to individual
prospects, seeking
purchase, subscription,
membership, or
participation by the call
recipient.
Inbound
Marketers facilities and
invitations to prospects to
call a central location or
long distance number or
by toll-free, 800 or fixed
cost 900 number.
Outbound Telemarketing
Advantages
Disadvantages
Interactive Contact
Intrusive Nature
Extensive Reach
Poor Image of Method
Caller-controlled Timing
High Cost of Contact
High Impact
Low Conversion Rate

Extensive Caller Training
Namelist
Name
listInadequacies
Inadequacies
High Termination Rates

High Reneges, Returns
Inbound Telemarketing Pros & Cons

+ Pros
- Cons
Response Is Highly Convenient

for the Audience
Labor-intensive Call Answering

Facilities May Be Required
Method Permits Interactive

Selling and Service
Personnel Direction System May

Be Required for Efficiency
Transactions Are Facilitated by

High Rate of Credit Card Holding
Nonproductive Call Rates May Be

Exceedingly or Unacceptably
High
Immediacy of Method Permits

Great Control of Inventory
Three Forms of Direct Selling
Repetitive
personto-person selling
Nonrepetitive
personto-person selling
Direct
Selling
Party
Plans
Direct Response Advantages

Advertisers Acquire or Enhance a Data Base of Individual
Customers
Customers Are Served With a Greater Selection From a
Central Inventory
Response Options Enable Audience to Act Right After
Exposure Occurs
No Store Is Required and Customers Can Buy From Their
Own Homes
Direct Response Disadvantages
Disadvantages
Customers Cant Handle or Inspect

the Product
Before Purchasing
Merchandise Returns and
Subscription Cancellations May Be
Numerous
Seller Reputation and Prestige May
Be Compromised by Methods Poor
Image
Overall Direct Marketing Pros & Cons

Advantages
Disadvantages
Selective Reach
Image Factors
Segmentation Capability
Accuracy
(e.g., People move and
Accuracy
change jobs)
Frequency Potential
Content Support
Flexibility
Rising Costs
Timing
Personalization
Economy
Measurement of Effectiveness
Session XV
The Internet and Interactive Media
Features of the Internet

Electronic mail (e-mail)
Usenet
Telnet
File transfer protocol (ftp)
Internet
Features
Hypertext transfer protocol (http)

Client server
Gopher
Wide Area Information Server (WAIS)
World Wide Web (WWW)
Internet Participants
Senders
Internet
Advertisers
Sponsors
e-Commerce
Merchants
Receivers
Users
Internet
Shoppers
Customers
Adoption Curve for the Web and Other Media
The Website
Where information is
made available by the
provider
Must Be:
Interesting
Current
Easy to navigate
Involving
Cheerios Uses Its Package to Drive

Consumers to Its Web Site
+
Huggies Homepage Appeals to Mothers
+
Internet Communications Objectives

To Create Awareness
To Stimulate Trial
To Generate Interest
Objectives
To Create a Strong
Brand
To Disseminate
Information
To Create an Image
Snapple Uses the Internet to Create Interest
+
Xerox Uses the Web to Develop an Image
+
Skyy Blue Redefines the Traditional Website
+
Internet Sales Objectives- E-commerce
The Direct Selling of

Goods and Services
Through the Internet
May Be Primary
or Secondary Objective
E-Commerce on the Web

E-Commerce
Rapid Growth Rates Likely

to Continue
Fast Growth in
Downloadable
Purchases
Both Consumer and

Business-to-business
ebay Is a Well Known E-Commerce Site
+
Integrating the Internet into an IMC Program

Advertising
Sales Promotions
The Internet site should
be integrated with:
Personal Selling
Public Relations
Direct Marketing
Integrating the Internet--Advertising

Banners
Sponsorships
Internet Advertising
Has a Variety of Forms:
Pop-ups/
Pop-unders
Interstitials
Push Technologies
Links
Typical Banner Ad
Keebler Uses Sales Promotions on Their

Website
+
Personal Selling on the Internet

May Replace Personal
Selling
Reduces High Cost of
Personal Calls
Vastly Increases
Potential Reach
May Enhance Personal Selling

Efforts
Provides Quick, Easy,
Information to
Prospects
May Help to Enhance

Customer Data Bases
May Improve One-onone Communications
May Be a Source of
Leads
May Stimulate Trial of

the Goods or Service
May Serve As a Sales

Conference Medium
Public Relations on the Internet
+
iVillage has Numerous Sponsorship Partners
+
Direct Marketing and the

Internet:Direct Mail
Often Used by Catalogers
Highly Targeted
Direct Mail
(Email)
Attempts to Reach Those

With Specific Needs
Relies on
Email Lists
Infomercials on the World Wide Web
Infomercials
Program Content Similar to

Television, Cable or Satellite
Web Provides for Greater Audience

Interaction
Measures of Effectiveness
Tracking
Surveys
Online Measuring
Panels
Sales
Recall and
Retention
Sources of Measurement Data

Arbitron
Data
Source
MRI and SMRB

Audit Bureau of Circulation
Internet Advertising Bureau (IAB)
eMarketer
Nielsen Net Ratings
Jupiter MediaMetrics, Inc.
Business 2.0 and Fast Company
Internet Advertising Report & office.com
Internet Advantages and Disadvantages

Advantages
Disadvantages
Target Marketing
Measurement problems
Message Tailoring
Websnarl
Interactive Capabilities
Clutter
Information Access
Potential for deception
Sales Potential
Privacy
Creativity
Limited production quality
Exposure
Poor reach
Speed
Irritation
Additional Interactive Media

Interactive TVAllows the Viewer to Interact
With the Television
Program and Advertising
WirelessCommunications to Users Through

Satellite Broadcast Systems or Cellular Phone
Systems
Chapter XVI
Sales Promotion
Sales Promotion
A direct inducement that offers an extra value or
incentive for the product to the sales force, distributors,
or the ultimate consumer with the primary objective of
creating an immediate sale.
An Extra
Incentive to Buy
A Tool to
Speed up Sales
Targeted to
Different Parties
Sales Promotion Vehicles

Consumer-Oriented
Trade-Oriented
Samples
Contests, Dealer Incentives
Coupons
Trade Allowances
Premiums (e.g., rewards)
Point-of-purchase Displays
Contests/sweepstakes
Training Programs
Refunds/rebates
Trade Shows
Bonus Packs
Cooperative Advertising
Price-off Deals
Frequency
Programs
(e.g., accumulating points
Frequency
Programs
for frequent purchases)
Event Marketing
Reasons for Increase in Sales Promotion

Growing Power of Retailers
Reasons
Declining Brand Loyalty

Increased Promotional Sensitivity
Brand Proliferation (Plenty of substitute/similar brands in the
Brand Proliferation
marketplace)
Fragmentation of Consumer Markets

Short-Term Focus of Marketers
Increased Accountability
Competition
Clutter
Objectives of Consumer-Oriented Sales

Promotion
To Increase
Consumption of an
Established Brand
To Obtain Trial and

Purchase
Objectives
Enhance IMC Efforts

and Build Brand
Equity
To Defend (Maintain)
Current Customers
To Target a Specific
Segment
Sampling
Sampling Works Best When
The Products Are of

Relatively Low Unit
Value, So Samples
Dont Cost Much
The Products Are

Divisible and Can Be
Broken Into Small Sizes
That Can Reflect the
Products Features and
Benefits
The Purchase Cycle

Is Relatively Short
So the Consumer
Can Purchase in a
Relatively Short
Time Period
Sampling Methods
Door-to-door
Methods
Direct Mail
Central Location Distribution
In-store Sampling
Cross-product Sampling
Co-op Package Distribution
With Newspaper / Magazine
Event Sampling
Internet Sites
Coupons
The
Oldest and
Most Widely Used
Sales Promotion Tool
Nearly
240 Billions
Distributed Each
Year in the US
Coupons
80
Percent of
Consumers
Use Coupons and
25% Use Them Regularly
Advantages and Limitations of Coupons

Advantages
Disadvantages
Appeal to Price Sensitive

Consumer
Difficult to Determine How Many

Consumers Will Use Coupons and
When
Can Offer Price Break Without

Retailers Coop
Coupons Are Often Used by Loyal

Consumers Who May Purchase
Anyway
Can Be Effective Way to Induce

Trial of New or Existing Products
Declining Redemption Rates and

High Costs of Couponing
Can Be a method to Defend

Can Be Way to Defend Market
Market Share and Encourage
Share and Encourage Repurchase
Repurchase
Misredemption and Fraud
Premiums
Premium: an offer of an item of merchandise
or service either free or at a low cost that is an
extra incentive for customers
Two Types of Premiums

Free Premiums:
Free
Premiums:
Only Require
Purchase of the
Only Require
Product
(usuallyPurchase
small giftsof
included
in the product
the Product
package. E.g., toys, balls)
Self-liquidating Premiums:
Require Consumer to Pay Some
or All of the Cost of the
Premium, but lower than
retailers prices.
Contests and Sweepstakes

Contest: a promotion where consumers compete for prizes or money on
the basis of skills or ability. Winners are determined by judging entries
or ascertaining which entry comes closes to some predetermined
criteria
Sweepstakes/games: a promotion where winners are determined purely

by chance and cannot require a proof of purchase as a condition for
entry. Winners are chosen by random selection from game entrants
(e.g., scratch-off cards, collecting game pieces).
Other Popular Consumer Sales Promotion Tools
Bonus Packs
Refunds and
Rebates
Other
Promotional Tools
Event Marketing
Price-off Deals
Frequency/
Loyalty Programs
Trade-Oriented Sales Promo Objectives

Obtain Distribution of
New Products
Maintain Trade Support

for Existing Products
Objectives
Build Retail Inventories
Encourage Retailers to
Display
Existing Brands
Types of Trade-Oriented Promotions

Contests and Incentives
Trade Allowances
Buying Allowances
Point-of-Purchase Displays
Promotional
Allowances
Sales Training Programs

Trade Shows
Cooperative Advertising
Slotting Allowances
Types of cooperative advertising

Horizontal
Cooperate
Advertising
IngredientSponsored
Coop Advertising
Cooperative
Advertising
Vertical
Cooperative
Advertising
The Shifting Role of the Promotion Agency

Traditional
New & Improved
Created Tactics
Creates Strategy
Do Single Project
Continuing Service
Hired for Specialty
One Full-service Firm
Single Agency Contact
Agency Team Contact
Inferior to Ad Agency
Equal to Ad Agency
Indirect Accountability
Directly Accountable
Chapter XVII
Public Relations, Publicity, and
Corporate Advertising
Benefits of Sound Public Relations Program

Advantages
Disadvantages
A Cost-effective Way to Reach

the Market
Lack of Control Over Media
A Highly Targeted Way to

Conduct Public Relations
Difficult to Tie in Slogans or Other

Advertising Devices
Endorsements by Independent
Third Parties
Media Time and Space Arent

Guaranteed
Achievement of Credibility
No Standards for Effective

Measurement
Makes Advertising Messages

More Credible
Breaks Though the Clutter
Circumvents Resistance to Sales
Efforts
Traditional PR Perspective
Customers
Community
Investors
Public Relations
Department
Suppliers
Government
Employees
The Process of Public Relations

Determining and Evaluating Public Attitudes
Establishing a PR Plan
Developing and Executing a PR Program
Measuring Program Effectiveness
Research on Public Attitudes

Provides Input for the
Planning Process
Serves As an Early
Warning System
Increases
Communications
Effectiveness
Secures Internal
Cooperation, Support
Implementing the PR Program

Press Releases
Press
Conferences
Interviews
PR Tools
Exclusives (One
The Internet
Particular
Medium to
Exclusives
cover the story)
Community
Involvement
Advantages of Public Relations

Credibility
Image Building
Cost Savings
PR
Provides
Selectivity (some
products
appeal to
Selectivity
small segments)
Avoidance of
Clutter
Lead Generation
(Providing important
information, e.g., Medical
Innovations)
Lead Generation
Publicity
The Generation of News About a Person, Product, or
Service That Appears in the Media
Part of the PR Process
May Be Out of the Marketers Control
Advantages and Disadvantages of Publicity

Advantages
Disadvantages
Substantial Credibility
Timing Difficult or
Impossible to Control
News Value
Inaccuracy, Omission, or
Distortion May Result.
Significant Word-of-mouth
Perception of Endorsement
by Media
Objectives of Corporate Advertising

Create a Positive
Image for the Firm
Communicate the
Organizations
Viewpoint
Establish Diversified
Companys Identity
Objectives
Help
Deregulated
HelpNewly
Newly
Industries (ease consumer
Deregulated
uncertainty & answer
Industries
investor questions)
Boost Employee
Morale
Smooth Labor
Relations
Why Is Corporate Advertising Controversial?
Corporate Advertising Is a
Waste of Money
Consumers Arent
Interested in This Form of
Advertising
Claims of
Opponents to
Corporate
Advertising
This Is a Costly Form of

Corporate Self-indulgence
The Firms Finances or

Image Must Be in Trouble
Types of Corporate Advertising

Image Advertising
General Image Ads

Positioning Ads
Event Sponsorship
Sponsorship
Recruitment
Advocacy Advertising
(addresses social, business
or environmental issues)
Cause-related
Advertising
Financial Support
Event Sponsorship
Corporate Sponsor
Sporting
Events
Music,
Entertainment
Causes
Festivals
Cultural Events
Arts
Advocacy Advertising
Advocacy advertising:
is the propagation (spread) of ideas and
elucidation (clarification) of controversial
social issues of public importance in a
manner that supports the interests of the
sponsor.
Cause Related Marketing
Cause related marketing:

is a form of marketing whereby companies
link with charities or nonprofit
organizations as contributing sponsors.
Advantages and Disadvantages of

Corporate Advertising
Advantages
Disadvantages
Excellent Vehicle for

Positioning the Firm
May Have Questionable

Effectiveness
Takes Advantage of Benefits

Derived From Public
Relations
Raises Questions of Constitutionality

and Ethics (Large firms have lots of
money and this allows them to
control public opinion unfairly)
Reaches a Selected Target

Market
Chapter XVIII
Personal Selling
Determining the Role of Personal Selling

Personal Selling: Is all about a person-to-person communication process
What
What Information
Information Must
Must Be
Be Exchanged
Exchanged Between
Between Firm
Firm and
and
Potential
Potential Customer?
Customer?
What Are the Alternative Ways to Carry Out These Communications
What
Are the Alternative Ways to Carry Out These
Objectives? (i.e., Promotional Mix alternatives, e.g., Direct Marketing, Sales
Communications
Objectives?
Promotion, Public Relations,
etc.)
How Effective Is Each Alternative in Carrying Out the

Needed Exchange? (Evaluation)
How Cost Effective Is Each Alternative?
When the Sales Force is a Major Part of IMC

Product or
Service
Price
Channels
Advertising
Complex goods
or services
Final price
negotiable
Channel short
and direct
Major purchase
decisions
Price provides
adequate margin
Training needed
by intermediaries
Media do not
provide an
effective link
Personal
demonstration
required
Selling needed
to push product
through
Intermediaries
can provide
personal selling
Information can
not be provided
by media
Sparse market
reduce
advertising
economies
Stages of Personal Selling Evolution

Provider Stage
Selling Activity Limited to

Order-taking & deliver to buyers)
(Order-taking
Persuader Stage
Attempting to Persuade Customer

Attempting to Persuade Customer
to Buy (Attempts to convince anyone to buy the
to Buy
product)
Prospector Stage
Seeking Out Buyers Perceived to

Seeking Out Buyers Perceived to
Have a Need (Seeking Prospects for available
Have a Need
products)
Problem-solver Stage
Buyers Identify Problems to Be

Buyers Identify Problems to Be
Met by Goods (Matching available offerings
Met by Goods
with needs/want)
Procreator Stage
Seller Determines Buyer Needs

and Fulfills Them (creating unique offerings to
mach buyers needs)
New Roles for Salespeople

Surveying
Surveying (Learning
more about consumers)
Mapmaking (Laying out

Mapmaking
a plan and a solution)
Guiding (bringing
Fire Starting (driving the

Customer to a solution)
incremental value to the

Guiding
customer by identifying
problems & opportunities)
Customer Relationship Management
The organizations effort to

develop a long term, cost
effective link with individual
customers for mutual benefit.
Personal Selling Responsibilities

Locating Prospective Customers
Determining Customers Needs and Wants
Recommending a Way to Satisfy Them

Demonstrating Capabilities of the Product
Closing the Sale
Following up and Servicing the Account
Types of Sales Jobs

Requires the Most Skill and Preparation
Creative Selling
Must Assess Situation, Determine Needs
This Role Is Much More Casual
Order Taking
Often Involves Straight Rebuying
Missionary
Sales Rep
This Is Essentially a Support Role

May Not Actually Take the Order (but introduce new
products, new promotions and/or new programs)
Personal Selling Advantages

and Disadvantages
Advantages
Disadvantages
Two-way Interaction
With Prospect
Messages May Be Inconsistent
Message Can Be
Tailored to Recipient
Possible Management-Sales
Force Conflict
Prospect Isn't Likely

to Be Distracted
Cost Is Often
Extremely High
Seller Involved in Purchase

Decision
Reach May Be
Very Limited
Source of Research Information
Potential Ethical Problems
Personal Selling Combines With Other Tools

Advertising
Public Relations
Personal
Selling
Direct Marketing
Sales Promotion
The Internet
Combining Personal Selling and PR

Rep Is Often Best Source of PR
Representative of the Organization
Involved in Community
Creates Goodwill
Combining Personal Selling with Sales

Promotions
Promotions Often Targeted to Rep
Promotions Used As Selling Aids for Representative
Reps Introduce Promotions to Trade
Criteria for Judging Personal Selling's

Contribution
Are
Provide
theyGood
providing
Marketing
good Marketing
Intelligence?
Information?
Use of Follow-up Activities with new and/or existing customers

Are Follow-up Activities Conducted Well?
(e.g., Customers opinions) to evaluate their contributions ?
Number of Promotional Programs Being Implemented by

Are Promo Programs Being Implemented?
sales force?
Are they attaining Communications Objectives?
Quantitative Measures of Sales Results

Orders
Sales Volume
Sales Related
Activities
Margins
Quantitative
Measures
Selling Skills
Customer Service
Selling Expenses
Customer
Accounts
Sales Calls
Qualitative Measures of Sales Results
Selling Skills
Sales Related Activities

(e.g., Positive W-O-M)
Chapter XIX
Measuring the Effectiveness of the
Promotional Program
Reasons for and Against Measuring

Effectiveness
Measuring the Effectiveness of the Promotional Program: Is all about
determining how well the communication program is working and to measure the
performance against standards.
Reasons to Measure
Reasons Not to Measure
Avoid Costly Mistakes (e.g., Bad

Avoid Costly Mistakes
Print/TV Ads)
Cost of Measurement
Evaluate Strategies (e.g., which

Evaluate Strategies
medium should be used)
Problems With Research
Increase
Increase Efficiency
Efficiency of
ofAdvertising
Advertising
in
in General
General (e.g., Avoid too
Disagreement
AboutWhat
Whattoto
Disagreement About
Test
Test Increase in Sales Volume or
(e.g.,
creative/sophisticated Ads)
Impact on Corporate Image)
Determine
Determine If
If Objectives
Objectives Are
Are
Achieved
Achieved
Creative Objections (e.g., creative

depts. Say that tests are not true
measures)
Measuring Advertising Effectiveness

What to test
Where
Whereto
totest
test
Source
Source
factors
factors
(Spokesperson)
Message
Message
variables
variables
Media
Media
strategies
strategies
(Broadcast
Versus
Print Media)
Budget
decisions
Budget decisions
Laboratory
tests
Laboratory
tests
(People are
brought
totests
a location & tests are
Field
implemented e.g., eye tracking,
Galvanometer)
Field tests (e.g., survey studies)
How to test
When to test
Testing guidelines
Appropriate tests [e.g.,
Pretesting
Pretesting
Posttesting
Posttesting
Concept generation testing (pre) or

Market testing (post)]
Pretesting Methods
Laboratory
Consumer
Consumer Juries
Juries
Portfolio Tests (Respondents are exposed to a
Portfolio Tests
portfolio consisting of both control and test ads)
Physiological Measures (eye

Physiological
Measures
tracking, Awareness
and Recall measures)
Theater Tests (Resp. Are invited by
Theater Tests
tel., Mail or tickets)
Rough Tests (testing a rendering of
Rough Tests
the final ad at early stages)
Concept Tests (Consumers opinion to
Concept
Tests
a potential ad)
Reliability
Tests (Determining how
Reliability Tests
trustworthy the ad campaign is?)
Comprehension
Comprehensionand
andReaction
ReactionTests
(e.g., personal interviews/surveys to
Tests
measure respondents comprehension of
the ad)
Field
Dummy
DummyAd
AdVehicles
Vehicles(e.g., An ad is
placed in dummy magazines
developed by an agency or research
firm. Recall, readership & interest of
the ads are assessed)
On-air Tests [inserting the

commercials into actual TV
programs. Then, on air testing is
carried out (e.g., Nielsen is well
known providers of on-air tests)]
Field Posttesting Methods

Recall Tests
Tracking Studies
Association Measures
[Tracking the effect of the Ad

campaign using tracking
measurements (e.g.,
awareness, recall & interest
tests)]
Association
(e.g., what product this ad
Measures
is associated with)
Methods
Recognition Tests
Single-Source
Systems:
Single-Source
(Allow advertisers to assess

the impact of their ads in
various media based on
consumers recognition of an
Recognition Tests
Ad.)
(Tracking buying behaviors

from
the
TV
Ad
to
supermarket checkout using a
specific card)
Systems
Inquiry Tests (inquiries
generated from Ads
Inquiry
Tests
appearing in various
print media)
The Testing Process

1.Concept Testing
2.Rough Testing (Based on the early stages
2.Rough Testing
testing, rough tests must indicate how the finished

commercial would perform)
Occurs at Various
Stages
3.Finished Art or Commercial

Testing
4.Market Testing (Post-testing)

Concept Testing
Objective
Explores Consumers Responses to Ad Concepts Expressed in

Words, Pictures, or Symbols
Alternatives Are Exposed to Consumers Who Match the the

Target Audience
Method
Reactions and Evaluations Are Sought Through Focus Groups,

Direct Questioning, Surveys, Etc.
Sample Sizes Depend on the Number of Concepts and the
Consensus of Responses
Output
Qualitative And/or Quantitative Data Evaluating and

Comparing Alternative Concepts
Rough Art, Copy, and Commercial Testing

Comprehension and Reaction Tests
Consumer Juries
Advantages
Disadvantages
Control
Consumer May Become a Selfappointed Expert
Cost Effectiveness
Number of Ads That Can Be

Evaluated Is Limited
Endorsements by Independent
Third Parties
A Halo Effect Is Possible
Achievement of Credibility
Preference for Ads Types

May Overshadow Objectivity
Rough Testing Terms

Animatic Rough
Terms
Photomatic Rough
Live-action Rough
Pretesting Finished Print Ads

A Laboratory Method
Portfolio Tests
Includes Test and Control Ads

Portfolio Test Have Problems
Based
100 Words
Basedon
onSyllables
Syllables(Sketch)
Per 100 Per
Words
Readability Tests
Other Factors Also Considered
Dummy Advertising
Vehicles
Pretesting Finished Broadcast Ads

Theater Tests
On-Air Tests
Measures changes in product

preferences
Insertion in TV programs in specific

markets
May also measure . . .

Interest in and reaction to the
commercial
Reaction from an adjective
checklist
Recall of various aspects
included
Interest in the brand presented
Continuous (frame-by-frame)
reactions
Limitations are imposed by dayafter recall
Physiological Measures (e.g., Eye

tracking, Awareness and Recall
measures)
Market Testing Print Ads

Inquiry Tests
Recognition Tests
Testing
Tracking Studies
Recall Tests
Market Testing Broadcast Commercials

Persuasive Measures
Day After Recall Tests
(e.g., Which product would

you
like to win,
then the
Persuasive
Measures
question is asked again
during the experiment)
Diagnostics (these
Tracking Studies
Testing
Comprehensive
Comprehensive
Measures
Measures
Single-source Tracking
Test Marketing
measures
designed to
Diagnostics
obtain viewers evaluations
of the Ad. & how well it is
understood)
Essentials of Effective Testing

Use a Consumer
Response Model
Establish
Communications
Objectives
Use Pretests and

Posttests
Testing
Understand and
Implement Proper
Research
Use Multiple
Measures
Chapter XX
International Advertising and
Promotion
Reasons for the Importance of

International Markets
Domestic Markets for Many
Products and Services Are Stagnant
Many Companies Rely on Foreign Markets to Survive, Particularly

Those With Small Domestic Markets
International Markets Offer

Growth Opportunities for Many Companies
Competition Has Become Global and

Marketers Must Be Able to Compete Globally
The International Environment

Economic
Environment
Cultural
Environment
International
Marketing
And
Promotional
Decisions
Demographic
Environment
Political/Legal
Environment
Advertising Aspects Subject to Regulation

Type of Products That May Be Advertised
The Content or Creative Approach Used
The Media Advertisers Are Permitted to Use
The Amount of Advertising One Can Use
The Use of Foreign Languages in Ads
Use of Ad Materials From Outside the Country
Use of Local Versus International Ad Agencies
The Specific Taxes Levied on Advertising
Global Marketers Dilemma

Should we offer the
same product,
marketing, and
advertising
throughout the
world?
Should we adapt the

product, marketing, and
advertising to each of
several societies
throughout the world?
Global Marketing and Advertising

Advantages
Economies of Scale in Production, Distribution
Lower Costs With Less in Planning and Control

Lower Advertising and Production Costs
Ability to Exploit Good Ideas Worldwide
Ability to Introduce Products Quickly, Worldwide
Consistent International Brand, Company Identity
Simplification of Coordination and Control

Problems With Global Advertising

Differences in Culture, Market and Economic
Conditions Make It Difficult to Use Global Advertising
Consumers Needs and Usage

Patterns Often Vary by Country or Region
Media Availability or Usage May

Vary by Country or Region
Legal Restrictions May Make It

Difficult to Develop an Effective Universal Appeal
When is Globalization Appropriate

Brands can be adopted for visual appeal, avoiding
problems of translating words into many
languages
Brands promoted with image campaigns playing to
universal appeals such as sex or wealth
Globalization
Often Works Best
For:
High-tech products, new to the world, not steeped

in the cultural heritage of the country of origin
Products with with a nationalistic flavor if the
country has a favorable reputation in the field
Products appealing to a market segment with

universally similar tastes, interests, needs, and
values
Global Products, Local Messages

An In-between Approach
Standardizing Products
Localizing Ad Messages
Think Globally, Act

Locally
Adapt Messages to Respond To

Differences in Language
Differences in Cultural
Use of Pattern
Advertising
Differences in Market
Conditions
Decision Areas in International Advertising
Organization
Coordination of Other
IMC Tools
Agency Selection
Decision Areas
Advertising and Market
Research
Media Selection
Creative Decisions
Centralization of International
Advertising
Budgeting
Media
Strategy
Agency
Selection
Central Authority
Campaign
Development
Creative
Strategy
Research
Decentralization of International Advertising

Campaigns
Region
One
Creative
Media
Research
Budgets
Campaigns
Central
Authority
Region
Two
Creative
Media
Research
Budgets
Campaigns
Region
Three
Creative
Media
Research
Budgets
Creative Decisions
Creative Decisions Should Be Based on Advertising and Communication
Objectives
Copy Platforms Must Be

Developed That Include Major Selling Ideas
Specific Appeals and

Execution Styles Must Be Selected
Appeals May Have to Be

Adapted for Local Market Conditions
International Media Selection Issues

Quality
Coverage
Widely Differing
Characteristics
Restrictions
Availability
Cost
Availability
Reliability
Circulation
Audience
Cost
Media Information
Problems
Foreign Market Sales Promotion Programs
Major Creation
Considerations
Economic Development
Market Maturity
Consumer Perceptions
Trade Structure [Wholesaling, Retailing (e.g., strengths
Trade
Structure
& Strategic locations), Government involvements, policies]
Regulations
Role of Public Relations in Global Marketing

Deal With Local Governments, Media, Trade Associations and the General
Public
Present the Company As a Good Corporate Citizen
Serve As Part of the IMC Program and Help Market the Product or Service
Deal With Specific Issues and Problems the Company May Face in Foreign
Markets

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ADVERTISING & SALES

PGDM II year DSBS 2013-15

Only the brave or ignorant can say

Is your Advertising getting results? It sure

groups obtain what they need and want through creating,

channels of information and persuasion in order to sell goods

Elements of Promotional Mix

Concept and Definition of Advertisement

promotion of ideas, goods, or services by an identified

The space or time for an advertising message generally must

be bought. In case of Public Service Announcements (PSA)

Non Personal Aspect

mass media. (e.g. TV, radio, magazines, newspapers) that can

business, as by paid announcements in the print,

About ideas, goods or services

Geographic coverage (local, regional, national, international)

Audiences for Advertising

Social Implications of Advertising

Social aspects of advertising

The growth of consumer culture diverted the purchasing

power of middle class people towards the purchase of

protect the rights of the consumers

Economic Implications of Advertising

Role of advertising in Economy

Ads do the sales job better

Effects of advertising on quality

Ethical & Legal Implications of Advertising

Code of Advertising Ethics in India

country and should not offend against morality, decency and

General rules of conduct in advertising

of the Constitution of India;

General rules of conduct in advertising

Central and State Government organisations, nationalised or

General rules of conduct in advertising

Fortune tellers or sooth-Sayers etc. and those

with claims of hypnotism;

General rules of conduct in advertising

lead the public to infer that the product advertised or any

General rules of conduct in advertising

jewellery) or precious stones shall be accepted.

General rules of conduct in advertising

action and suitability of the purpose for which it is recommended.

Rules and acts framed to maintain

aesthetic values of the people

product for service should be avoided

and the photographs of national leaders should not

Legal issues of advertising

speech & expression.

Legal issues of advertising

Friendly relations with foreign states

Legal issues of advertising

should not depict children leaning

business consists in acquisition as a principal of the right to use

Tasks of an advertising agency

Art pictures & photographs

The work of market research

Forwarding the advertising materials to the media

owners and the clients in time

Agency should require

Types of Advertising Agencies

Direct Marketing Agency

Full-service advertising agency

professionals to meet all the promotional needs of clients.

Advantages of using a full service ad agency