?2000 Prentice Hall
Objectives
? Developing & Managing an Advertising Program
? Deciding on Media & Measuring Effectiveness
? Sales Promotion
? Public Relations
?2000 Prentice Hall
Informative Advertising
Build Primary Demand
Persuasive Advertising
Build Selective Demand
Comparison Advertising
Compares One Brand to Another
Reminder Advertising
Keeps Consumers Thinking
About a Product,
Advertising Objectives
? Specific Communication Task
? Accomplished with a Specific Target Audience
? During a Specific Period of Time
?2000 Prentice Hall
Advertising Budget Factors
Stage in the
Product Life Cycle
Market Share &
Consumer Base
Competition &
Clutter
Advertising
Frequency
Product
Substitutability
?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
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
Profiles of Major Media Types
?2000 Prentice Hall
Advertising Strategy
Message Execution
Typical
Message
Execution
Styles
Testimonial
Evidence Slice of Life
Scientific
Evidence
Lifestyle
Technical
Expertise
Fantasy
Musical
Personality
Symbol
Mood or
Image
Turning the,Big Idea” Into an Actual Ad to Capture
the Target Market’s Attention and Interest,
?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
0
10
20
30
40
50
60
1986 88 90 92 94 1996
Year
%t
o
f t
ot
al
- 3
yr
.M
A
Trade Promo
Media Adv
Cons,Promo
Cox Direct 19th Annual Survey of Promotional Practices
?2000 Prentice Hall
Channels of Sales Promotions
MANUFACTURER
RETAILER
Trade
Promotions
CONSUMER
Consumer
Promotions
Push
Push Pull
Retail
Promotions
?2000 Prentice Hall
Consumer Promotion
Consumer-Promotion
Objectives
Consumer-Promotion Tools
Point-of-Purchase
Displays
Premiums
Price Packs
Cash Refunds
Coupons
Samples
Patronage
Rewards
Games
Sweepstakes
Contests
Advertising
Specialties
Patronage
e ards
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
?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
,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-Promotion Objectives Trade-Promotion Tools
Specialty
Advertising
Items Contests
Free Goods
Buy-Back
Guarantees
Allowances
Price-Offs
Patronage
Rewards
Push Money
Discounts
Premiums
Displays
Persuade Retailers or
Wholesalers to Carry a Brand
Give a Brand Shelf Space
Promote a Brand in
Advertising
Push a Brand to Consumers
Trade Promotions
?2000 Prentice Hall
Business-Promotion
Objectives Business-Promotion
Tools Generate Business Leads
Stimulate Purchases
Reward Customers
Motivate Salespeople
Conventions
Trade Shows
Sales Contests
Business-to-Business Promotion
?2000 Prentice Hall
Major Public Relations Tools
Special
Events Written
Materials
Corporate
Identity
Materials
Speeches
News
Audiovisual
Materials
Public
Service
Activities
Web Site