Advertising And Sales Promotion Strategy

Advertising and Sales Promotion Strategy

The Marketing Communications Mix Advertising Sales Promotion

Public Relations

Personal Selling Direct Marketing

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

Personal Presentations. 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

Push

Retail Promotions CONSUMER

Consumer Promotions 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

Advertising Specialties Patronage Rewards Contests

Price Packs Premiums

Sweepstakes Games

Point-of-Purchase Displays

Trade Promotions -- PUSH Trade-Promotion Objectives

Trade-Promotion Tools

Persuade Retailers or Wholesalers to Carry a Brand

Price-Offs

Premiums

Give a Brand Shelf Space

Allowances

Patronage Displays Rewards

Promote a Brand in Advertising

Buy-Back Guarantees

Discounts

Push a Brand to Consumers

Free Goods Contests

Push Money Specialty Advertising Items

Identify and analyze target market

Evaluate advertising effectiveness

Define Advertising objectives

Create advertising platform

Determine advertising appropriation

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 sufficent? Is the media message correct? Are the media outlets appropriate? All of these questions will depend upon the target audience’s 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 child’s “experience” is of crucial importance, while cost of the service is an important, but secondary, concern.”

Identify and analyze target market

Evaluate advertising effectiveness

Define Advertising objectives

Create advertising platform

Determine advertising appropriation

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. 3. Advertising has a carryover / delay effect that extends beyond a calendar or fiscal year.

Response Hierarchy Models Stages

AIDA Model

Hierarchy-ofEffects Model

InnovationAdoption Model

Exposure

Awareness Cognitive stage

Attention

Awareness

Affective stage

Interest

Attitude

Evaluation

Intention

Preference Desire

Behavior stage

Liking

Reception Cognitive response

Knowlege Interest

Communications Model

Action

Conviction Purchase

Trial Adoption

Behavior

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

Persuasive Advertising

Build Primary Demand

Build Selective Demand

Reminder Advertising Keeps Consumers Thinking About a Product.

Identify and analyze target market

Evaluate advertising effectiveness

Define Advertising objectives

Create advertising platform

Determine advertising appropriation

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

Evaluate advertising effectiveness

Define Advertising objectives

Create advertising platform

Determine advertising appropriation

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

Percentage-ofSales Method

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

Setting Promotion Budget at a Certain % of Current or Forecasted Sales

Competitive-Parity Method

Objective-and-Task Method

Setting Promotion Budget to Match Competitors’ Outlay

Setting Promotion Budget by Defining Objectives, Tasks & Costs.

Identify and analyze target market

Evaluate advertising effectiveness

Define Advertising objectives

Create advertising platform

Determine advertising appropriation

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 (3)

Alternating (4)

(5)

(6)

(7)

(8)

(9) (9)

(10)

(11)

(12)

Continuous

Intermittent

Month

Number of messages per month

Identify and analyze target market

Evaluate advertising effectiveness

Define Advertising objectives

Create advertising platform

Determine advertising appropriation

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

Slice of Life

Mood or Image

Lifestyle Demonstration Spokesperson Musical Fantasy

Humor

Scientific Evidence

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

Fun and pleasure Convenience

Profit motive

Common Message Appeals

Health concerns Love

Sex

Admiration/worship Fear

Identify and analyze target market

Evaluate advertising effectiveness

Define Advertising objectives

Create advertising platform

Determine advertising appropriation

Execute campaign

Create advertising messages

Develop Media plan

Identify and analyze target market

Evaluate advertising effectiveness

Define Advertising objectives

Create advertising platform

Determine advertising appropriation

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?