Advertising and Sales Promotion Strategy

The Marketing Communications Mix

Advertising
Any Paid Form of Nonpersonal Presentation by an Identified Sponsor. Short-term Incentives to Encourage Trial or Purchase. Protect and/or Promote Companys Image/products.

Sales Promotion

Public Relations Personal Selling

Personal Presentations.

Direct Marketing

Direct Communications With Individuals to Obtain an Immediate Response.

Advertising
PROS Message can be repeated for exposure Very expressive -- can be used to create image Can reach a geographically diverse audience CONS Can be tuned out Can be expensive Hard to measure results

Personal Selling
PROS Interactive - can be customized Allows a relationship to develop Better understanding of customer needs Buyer will pay more attention to the message
CONS Expensive Can only reach a small number of consumers

Publicity
PROS Very believable Free advertising CONS Hard to implement Hard to control Hard to measure its effectiveness

Sales Promotion
PROS Attract attention Strong incentives will induce consumers to act Quick response Encourages trial of product CONS Can create price sensitive customers Can be costly Easy for competition to imitate

Channels of Sales Promotions

MANUFACTURER

Push

Trade Promotions RETAILER Consumer Promotions

Push

Retail Promotions
CONSUMER

Pull

Consumer Promotion -- PULL

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 Rewards Contests Sweepstakes

Games

Point-of-Purchase Displays

Trade Promotions -- PUSH

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

Identify and analyze target market

Define Advertising objectives

Create advertising platform

Determine advertising appropriation

Evaluate advertising effectiveness

Execute campaign

Create advertising messages

Develop Media plan

Target market selection

This is the single most important decision, because all other decisions build upon it. Is the budget sufficient? Is the media message correct? Are the media outlets appropriate? All of these questions will depend upon the target audiences size, motivations, concerns, etc.

Start by describing with demographic data

Target market of a national chain of child day-care centers: Female household heads aged 25 to 34 employed outside the home who have one or more children under age 6 at home and live or work within within 10 miles of a current center.

But need to add life-style and psychographic profile data

This group aspires to have both a successful career and family. These women are serious about child-rearing responsibilities and are avid readers of books and articles on the subject. They are primarily outer-directed Emulators and Achievers in terms of VALS categories. They are concerned about where and with whom they leave their children. Heir childs experience is of crucial importance, while cost of the service is an important, but secondary, concern.

Identify and analyze target market

Define Advertising objectives

Create advertising platform

Determine advertising appropriation

Evaluate advertising effectiveness

Execute campaign

Create advertising messages

Develop Media plan

Problem with using $ of revenue or units sold as an advertising objective

1. Advertising is only one of many factors impacting whether a sale occurs. 2. Advertising has a carryover / delay effect that extends beyond a calendar or fiscal year.

Response Hierarchy Models

Stages
AIDA Model Hierarchy-ofEffects Model Awareness Cognitive stage Attention Knowledge Interest Affective stage Desire Behavior stage Action Liking Interest Awareness InnovationAdoption Model Communications Model Exposure Reception Cognitive response Attitude

Preference
Conviction Purchase Evaluation Trial Behavior

Intention

Adoption

Advertising Objectives
Specific Communication Task Accomplished with a Specific Target Audience During a Specific Period of Time

Example advertising objective

To increase from 12% to 35%, within one year , the number of homemakers, age 25-55, that list our brand in unaided recall when asked to name 5 different instant coffee brands.

Advertising Objectives
Specific Communication Task Accomplished with a Specific Target Audience During a Specific Period of Time
Informative Advertising
Build Primary Demand

Persuasive Advertising
Build Selective Demand

Reminder Advertising
Keeps Consumers Thinking About a Product.

Identify and analyze target market

Define Advertising objectives

Create advertising platform

Determine advertising appropriation

Evaluate advertising effectiveness

Execute campaign

Create advertising messages

Develop Media plan

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

Identify and analyze target market

Define Advertising objectives

Create advertising platform

Determine advertising appropriation

Evaluate advertising effectiveness

Execute campaign

Create advertising messages

Develop Media plan

Issues to consider in setting advertising budget

Product Life Cycle Market share Competitive clutter Product Substitutability

Setting Advertising Budgets

Affordable Method
Setting Promotion Budget at the Level the Company Thinks They Can Afford.

Percentage-ofSales Method
Setting Promotion Budget at a Certain % of Current or Forecasted Sales

Competitive-Parity Method
Setting Promotion Budget to Match Competitors Outlay

Objective-and-Task Method
Setting Promotion Budget by Defining Objectives, Tasks & Costs.

Identify and analyze target market

Define Advertising objectives

Create advertising platform

Determine advertising appropriation

Evaluate advertising effectiveness

Execute campaign

Create advertising messages

Develop Media plan

Issues in Selecting Advertising Media

Reach, Frequency, and Impact

Major Media Type Options

Media Habits of Target Consumers Nature of the Product Type of Message Cost

Specific Media Vehicles

Specific Media Within a Given Type (e.g., E.R.) Balance Media Cost Against Media Factors: Audience Quality & Attention, Editorial Quality

Media Timing
Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing

Profiles of Major Media Types

Newspapers
Advantages: Flexibility, timeliness; good local market coverage; high believability

Limitations: Short life; poor reproduction quality; small pass-along audience

Television

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

Direct Mail
Advantages: Audience selectivity; flexibility, no ad competition within same medium; allows personalization
Limitations: Relative high cost; junk mail image

Profiles of Major Media Types

Radio
Advantages: Mass use; high geographic and demographic selectivity; low cost

Limitations: Audio only; fleeting exposure; lower attention; fragmented audiences

Magazines

Advantages: High geographic and demographic selectivity; credibility and prestige; high-quality reproduction; long life; good pass-along readership Limitations: Long ad purchase lead time; no guarantee of position

Outdoor
Advantages: Flexibility; high repeat exposure; low cost; low message competition Limitations: Little audience selectivity; creative limitations

Issues in Selecting Advertising Media

Reach, Frequency, and Impact

Major Media Type Options

Media Habits of Target Consumers Nature of the Product Type of Message Cost

Specific Media Vehicles

Specific Media Within a Given Type (e.g., E.R.) Balance Media Cost Against Media Factors: Audience Quality & Attention, Editorial Quality

Media Timing
Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing

Issues in Selecting Advertising Media

Reach, Frequency, and Impact

Major Media Type Options

Media Habits of Target Consumers Nature of the Product Type of Message Cost

Specific Media Vehicles

Specific Media Within a Given Type (e.g., E.R.) Balance Media Cost Against Media Factors: Audience Quality & Attention, Editorial Quality

Media Timing
Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing

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

Month

Identify and analyze target market

Define Advertising objectives

Create advertising platform

Determine advertising appropriation

Evaluate advertising effectiveness

Execute campaign

Create advertising messages

Develop Media plan

Factors Impacting the Receipt of a Message

Selective Attention

Selective Distortion

Selective Retention

Issues to Consider in Designing the Message

Message Content Rational Appeals Emotional Appeals Moral Appeals

Message Structure Draw Conclusions Argument Type Argument Order Message Source Expertise, Trustworthiness, Likeability

Typical Message Execution Styles

Comparisons Real or animated Symbol Mood or Image

Slice of Life

Lifestyle Demonstration

Spokesperson Musical
Fantasy Scientific Evidence

Humor

Stylistic Approaches
Can present many points quickly Cost less than drama to produce Audience can become distracted Discount all or part of the facts DRAMA

COMBINATION

LECTURE

Characters speak to each other not the audience Consumers must infer lessons Conclusions are more likely to be accepted

Common Appeals

Vanity and egotism

Profit motive

Fun and pleasure

Health concerns

Convenience

Common Message Appeals

Love

Admiration/worship

Sex

Fear

Identify and analyze target market

Define Advertising objectives

Create advertising platform

Determine advertising appropriation

Evaluate advertising effectiveness

Execute campaign

Create advertising messages

Develop Media plan

Identify and analyze target market

Define Advertising objectives

Create advertising platform

Determine advertising appropriation

Evaluate advertising effectiveness

Execute campaign

Create advertising messages

Develop Media plan

Advertising Evaluation
Advertising Program Evaluation

Communication Effects
Is the advertisement meeting the specific communication objective?

Sales Effects (to the extent possible)

Is the Ad Increasing Sales?