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Objectives

Developing & Managing an Advertising Program Deciding on Media & Measuring Effectiveness Sales Promotion Public Relations

2000 Prentice Hall

Major Decisions in Advertising


Objectives Setting

Budget Decisions
Message Decisions Media Decisions

Campaign Evaluation
2000 Prentice Hall

Advertising Objectives

Specific Communication Task Accomplished with a Specific Target Audience During a Specific Period of Time
Persuasive Advertising
Build Selective Demand

Informative Advertising
Build Primary Demand

Comparison Advertising
Compares One Brand to Another

Reminder Advertising
Keeps Consumers Thinking About a Product.

2000 Prentice Hall

The Five Ms of Advertising


Message Money
Factors to consider:
Message generation Message evaluation and selection Message execution Social-responsibility review

Mission
Sales goals Advertising objectives

Stage in PLC Market share and consumer base Competition and clutter Advertising frequency Product substitutability

Measurement
Communication impact Sales impact

Media
Reach, frequency, impact Major media types Specific media vehicles Media timing Geographical media allocation

2000 Prentice Hall

Advertising Budget Factors


Market Share & Consumer Base

Stage in the Product Life Cycle

Competition & Clutter

Product Substitutability
2000 Prentice Hall

Advertising Frequency

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 competition 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
2000 Prentice Hall

Limitations: Little audience selectivity; creative limitations

Classification of Advertising Timing Patterns


Concentrated

Level (1)

Rising (2)

Falling Alternating (3) (4)

(5)
Continuous

(6)

(7)

(8)

(9) (9)
Intermittent

(10)

(11)

(12)

Number of messages per month

2000 Prentice Hall

Month

Simplified Rating Sheet for Ads


(Attention) How well does the ad catch the readers attention? (Read-through) How well does the ad lead the reader to read further? (Cognitive) How clear is the central message or benefit? (Affective) How effective is the particular appeal? (Behavior) How well does the ad suggest follow-through action?
0

__20 __20 __20 __20 __20

20
Poor ad

40

60

80
Good ad

100
Great ad

__Total

Mediocre Average ad ad

2000 Prentice Hall

Advertising Strategy
Message Execution
Turning the Big Idea Into an Actual Ad to Capture the Target Markets Attention and Interest. Testimonial
Evidence Scientific Evidence Technical Expertise Personality Symbol Slice of Life

Lifestyle

Typical Message Execution Styles

Fantasy
Mood or Image

Musical
2000 Prentice Hall

Advertising Evaluation
Advertising Program Evaluation

Communication Effects
Is the Ad Communicating Well?

Sales Effects
Is the Ad Increasing 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


%t of total - 3 yr.MA

60 50 40 30 20 10 0
1986 88 90 92 94 1996

Trade Promo Media Adv

Cons. Promo

2000 Prentice Hall

Year Cox Direct 19th Annual Survey of Promotional Practices

Channels of Sales Promotions


MANUFACTURER

Push

Trade Promotions RETAILER Consumer Promotions

Push

Retail Promotions
CONSUMER

Pull

2000 Prentice Hall

Consumer Promotion
Consumer-Promotion Objectives
Entice Consumers to Try a New Product Lure Customers Away From Competitors Products Get Consumers to Load Up on a Mature Product Hold & Reward Loyal Customers Consumer Relationship Building

Consumer-Promotion Tools
Samples Coupons Cash Refunds Price Packs Premiums Advertising Specialties Patronage Patronage Rewards Rewards Contests Sweepstakes

Games

Point-of-Purchase 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

2000 Prentice Hall

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

Trade Promotions
Trade-Promotion Objectives
Persuade Retailers or Wholesalers to Carry a Brand
Give a Brand Shelf Space Promote a Brand in Advertising Push a Brand to Consumers

Trade-Promotion Tools
Price-Offs Allowances Premiums

Patronage Displays Rewards


Discounts Push Money Specialty Advertising Items

Buy-Back Guarantees
Free Goods Contests

2000 Prentice Hall

Business-to-Business Promotion
Business-Promotion Objectives
Generate Business Leads Stimulate Purchases Reward Customers Motivate Salespeople

Business-Promotion Tools
Conventions Trade Shows Sales Contests

2000 Prentice Hall

Major Public Relations Tools


Web Site
Public Service Activities News

Corporate Identity Materials Audiovisual Materials

Speeches

Written Materials

Special Events

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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