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Objectives

➤ Developing & Managing an Advertising


Program
➤ Deciding on Media & Measuring
Effectiveness
➤ Sales Promotion
➤ Public Relations

©2000 Prentice Hall


Major
Major Decisions
Decisions in
in Advertising
Advertising

Objectives
Objectives Setting
Setting

Budget
Budget Decisions
Decisions

Message
Message Decisions
Decisions Media
Media Decisions
Decisions

Campaign
Campaign Evaluation
Evaluation
©2000 Prentice Hall
Advertising Objectives
➤ Specific Communication Task
➤ Accomplished with a Specific Target Audience
➤ During a Specific Period of Time

Informative
Informative Advertising
Advertising Persuasive
Persuasive Advertising
Advertising
Build
BuildPrimary
PrimaryDemand
Demand Build
BuildSelective
SelectiveDemand
Demand

Comparison
Comparison Advertising
Advertising Reminder
Reminder Advertising
Advertising
Compares
ComparesOne
OneBrand
Brandto
to Keeps
KeepsConsumers
ConsumersThinking
Thinking
Another
Another About
AboutaaProduct.
Product.

©2000 Prentice Hall


The Five Ms of Advertising
Message
Money Message generation
Factors to Message evaluation
consider: and selection
Mission Message execution Measure-
Stage in PLC
ment
Sales Social-responsibility
goals Market share review
and con- Communi-
sumer base cation
Adver- Media impact
tising Competition Reach, frequency,
objectives and clutter impact Sales
impact
Advertising Major media types
frequency Specific media
vehicles
Product
substituta- Media timing
bility Geographical
©2000 Prentice Hall media allocation
Advertising Budget Factors

Market Share &


Consumer Base
Competition &
Stage in the
Clutter
Product Life Cycle

Product Advertising
Substitutability Frequency

©2000 Prentice Hall


Profiles of Major Media Types
Newspapers
Advantages: Flexibility, timeliness; good local market coverage;
broad acceptance, high believability
Limitations: Short life; poor reproduction quality; small
pass-along audience

Television
Advantages: Combines sight, sound, motion; high attention;
high reach; appealing to senses
Limitations: High absolute costs; high clutter; fleeting exposure;
less audience selectivity

Direct Mail
Advantages: Audience selectivity; flexibility, no ad compe-
tition within same medium; allows personalization
Limitations: Relative high cost; “junk mail” image
©2000 Prentice Hall
Profiles of Major Media Types
Radio
Advantages: Mass use; high geographic and demographic
selectivity; low cost
Limitations: Audio only; fleeting exposure; lower attention;
nonstandardized rates; fragmented audiences
Magazines
Advantages: High geographic and demographic selectivity;
credibility and prestige; high-quality reproduction;
long life; good pass-along readership
Limitations: Long ad purchase lead time; waste circulation;
no guarantee of position

Outdoor
Advantages: Flexibility; high repeat exposure; low cost;
low message competition
Limitations: Little audience selectivity; creative limitations
©2000 Prentice Hall
Classification of
Advertising Timing Patterns
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

©2000 Prentice Hall


Month
Simplified Rating Sheet for Ads

(Attention) How well does the ad catch


the reader’s attention? __20
(Read-through) How well does the
ad lead the reader to read further? __20
(Cognitive) How clear is the
central message or benefit? __20
(Affective) How effective is
the particular appeal? __20
(Behavior) How well does the
ad suggest follow-through action? __20

40 60 80 100 __Total
0 20
Poor Mediocre Average Good Great
ad ad ad ad ad
©2000 Prentice Hall
Advertising
Advertising Strategy
Strategy
Message
Message Execution
Execution
Turning the “Big Idea” Into an Actual Ad to Capture the
Target Market’s Attention and Interest.
Testimonial
Testimonial Slice
Evidence Sliceof
ofLife
Life
Evidence

Scientific
Scientific Lifestyle
Lifestyle
Evidence
Evidence Typical
Typical
Message
Message
Technical
Technical Fantasy
Execution Fantasy
Expertise
Expertise Execution
Styles
Styles
Personality Mood
Moodoror
Personality
Symbol Image
Image
Symbol

Musical
Musical
©2000 Prentice Hall
Advertising Evaluation

Advertising
Advertising Program
Program Evaluation
Evaluation

Communication
Communication Effects
Effects Sales
Sales Effects
Effects
Is
Isthe
theAd
AdCommunicating
CommunicatingWell?
Well? Is
Isthe
theAd
Ad Increasing
IncreasingSales?
Sales?

©2000 Prentice Hall


Why the increase in Sales
Promotion?
➤ Growing retailer power
➤ Declining brand loyalty
➤ Increased promotional sensitivity
➤ Brand proliferation
➤ Fragmentation of consumer market
➤ Short-term focus
➤ Increased managerial accountability
➤ Competition
➤ Clutter

©2000 Prentice Hall


Long-Term Promotional
Allocation

60
%t of total - 3 yr.MA

50
40 Trade Promo
30 Media Adv
20 Cons. Promo
10
0
1986 88 90 92 94 1996
Year
©2000 Prentice Hall Cox Direct 19th Annual Survey of Promotional Practices
Channels of Sales Promotions

MANUFACTURER

Trade
Push
Promotions

RETAILER Consumer
Promotions
Retail Pull
Push
Promotions

CONSUMER
©2000 Prentice Hall
Consumer
Consumer Promotion
Promotion
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
Patronage
FromCompetitors’
Competitors’Products
Products Patronage
Rewards
Rewards
Rewards
Get
GetConsumers
Consumersto to“Load
“LoadUp’ Cash
Up’ CashRefunds
Refunds
on
onaaMature
MatureProduct
Product Contests
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
©2000 Prentice Hall
“Deal Proneness,”
Liechtenstein, Burton, & Netemeyer,
Journal of Retailing, Summer 1997

➤ Examination of “deal proneness” among


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

©2000 Prentice Hall


“Deal Proneness,”
Liechtenstein, Burton, & Netemeyer

Cluster analysis yielded two interpretable results:


✸ 49% are “deal prone,” 51% not
✸ 24% High “Deal prone,” 50% intermediate, 26%
deal insensitive
➤ “Deal-proneness” a generalized construct -
(crosses type of promotion)
➤ Younger & Less educated more likely to be deal
prone

©2000 Prentice Hall


Trade Promotions

Trade-Promotion
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
©2000 Prentice Hall
Business-to-Business
Promotion
Business-Promotion
Objectives Business-Promotion
Generate Tools
GenerateBusiness
BusinessLeads
Leads
Conventions
Conventions
Stimulate
StimulatePurchases
Purchases
Trade
TradeShows
Shows
Reward
RewardCustomers
Customers

Motivate Sales
SalesContests
MotivateSalespeople
Salespeople Contests

©2000 Prentice Hall


Major
Major Public
Public Relations
Relations Tools
Tools
Web
WebSite
Site
Public
Public News
News
Service
Service
Activities
Activities

Speeches
Speeches
Corporate
Corporate
Identity
Identity
Materials
Materials

Special
Special
Audiovisual
Audiovisual Events
Events
Materials
Materials Written
Written
Materials
Materials

©2000 Prentice Hall


Taco Bell has
purchased the
Liberty Bell!

©2000 Prentice Hall


Review

➤ Developing & Managing an Advertising


Program
➤ Deciding on Media & Measuring
Effectiveness
➤ Sales Promotion
➤ Public Relations

©2000 Prentice Hall

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