Ch09 - Group Notes On Advertising And Sales Promotion

ADVERTISING 1.

Introduction of Advertising

Advertising is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service. Many advertisements are designed to generate increased consumption of those products and services through the creation and reinforcement of "brand image" and "brand loyalty". For these purposes, advertisements sometimes embed their persuasive message with factual information. Every major medium is used to deliver these messages, including television, radio, cinema, magazines, newspapers, video games, the Internet and billboards. Advertising is often placed by an advertising agency on behalf of a company or other organization. Advertisements are seen on the seats of shopping carts, on the walls of an airport walkway, on the sides of buses, and are heard in telephone hold messages and in-store public address systems. Advertisements are often placed anywhere an audience can easily or frequently access visual, audio and printed information. Organizations that frequently spend large sums of money on advertising that sells what is not, strictly speaking, a product or service include political parties, interest groups, religious organizations, and military recruiters. Non-profit organizations are not typical advertising clients, and may rely on free modes of persuasion, such as public service announcements.

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Advertising, it has been suggested, is the world’s second oldest profession. Up until the mid-nineteenth century the term advertising was used widely to refer to any and all forms of promotional activity.

1.1

The Growth of Advertising

Advertising was developed in 300 years prior to the 20 century. It is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service. Advertising Work as online advertising refers to all forms of internet advertising, such as banner ads, email marketing, cost-per-click campaigns, online directory placement, search engine optimization, and pop up ads. Thru television and radio advertising as usually well make the advertising is so flexible additional for the brand outcomes information. Reaching the consumer is the outdoor advertising, like IKEA send their booklet sales thru their customer door – to – door. Even in this era, the advertising will work just by mail that we forwarding and direct mail brochures.

2.

Theories of Advertising

2.1

Strong Theory

In the Strong theory explanation, there have a hierarchy models are classically 'strong' theory models which is suggest a rational, sequential approach to

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advertising. On this hierarchy models all the marketing communication with AIDA Strong 1925, DAGMAR Colley 1961, Lavidge and Steiner 1961 and Wells et al. 1965 a imply for advertising to be successful from one stage to another until the ultimate goal is achieve. Other 'strong' models who developed followed a similar linear development it is cognitive response model - exposure to advertising elicits different types of response & purports to suggest how these responses relate to attitudes & purchase intentions. 3 'thoughts'; Product/message thoughts, Source orientated thought and advertising execution thoughts.

2.2

Weak Theory

The main alternative to the ‘Strong’ theory is Weak theory. Weak theory of advertising assumes that ‘the advertising cause and the sales effect are far less directly linked than strong theories. The link is, nevertheless, powerful and enduring.’ (Hackley, 2005) Ehrenberg (1999) also position the Weak theory as simply ‘publicity’ which defined as ‘Bringing X to public notice.’ Publicity is to remind consumers that the brand is around or relevant. Under Weak theory, the role of advertising is not only to create long-term memory in consumers’ mind but also recall the memory in consumers’ mind. In other words, advertising develops or maintains ‘salience’ which is here defined as being in the consideration set of brands you does or might buy. (Andrew, Neil, Rachel, Helen, 2002) Ehrenberg’s (1974) awareness---trial---reinforcement (ATR) model is typical of this theory

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models. Under Ehrenberg’s ATR model, advertising will help consumers to gain awareness or interest about a product first. Then the consumers might try it. In other words, advertising facilitate consumers to make a trial purchases. After trying a different brand, people may go back to their habitual brands if there is no obvious reason for them to change to the new brand. But if there is satisfaction after previous usage, a repeat buying habit may be developed and reinforced. The repetitive advertising of well-established brands is therefore reinforcing already developed repeat buying habits. This is the crucial determinant of long term sales. 3.

Measuring of Advertising

The measuring of advertising is based on the theories, experiences and the modeling how the advertising is works. In the strong model of advertising this followed method and measuring a very useful like; day-after recall the unprompted recall of previous day’s advertising. With recall surveys respondents are asked what advertising they remember. Has been use the incorrect measure is precisely wrong, it is proxy measures such as brand awareness, recall or recognition, whilst being east to measure precisely are not directly associated with sales and might be said to be precisely wrong. It is same as the vaguely right measure, which actual sales directly related to advertising are almost impossible to gauge accurately but estimation can be said to be vaguely right. The simulated sales are sales calculated on the basis of no advertising which can them be used to measure the contribution of advertising. Other method is to

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use an attitude scales a respondent’s attitude to predefined statements, is like include the nominal, ordinal, ratio and interval of scales.

4.

Advertising Characteristics

To create an advertisement with power the advertiser should to do this requires like; creativity, the ability to attract and hold the target audience through the manner and composition of the advertisement. Advertising problem, the establishing ‘advertising problem’ are, that the reason the company is resorting to advertising. Much good the advertising is based on creativity of concept, an idea upon which the campaign is built. Effective creativity means the creativity that meets the commercial objective of a campaign. The answer lies in what might be called ‘effective creativity’. Single-minded proposition it is are brand’s unique selling proposition (USP). The creative idea expresses the brand’s positioning through the brand proposition it is in order to emphasize its importance in the advertising process, capture the qualities of the brand and incorporate the right mix of functional properties and emotional characteristics. Media Strategy is the decision on which media to use for given the campaign, to design the best message for the most appropriate medium to reach the maximum number of people in the target audience. Waterloo effect it is content of good advertising campaigns, namely uniqueness, frequency and relevance. In uniqueness advertising is undoubtedly stands out from the rest and gets talked about through ‘word - of - mouth’ and/or using ‘media chatter’. Media chatter is a subject matter that is discussed by and in the media. About Impressions it is a single instance of

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an advertisement being display and last nut not least is the Stopping power, in advertising therefore must aim for stopping power whether through uniqueness, repetition or relevancy. To do this advertiser must use this followed 14 formats including, demonstration, testimonials, expert and celebrity endorsement, slice of life, comparative advertising, the logical and emotional appeals, stereotyping, humor, erotica, shock tactics, sensory appeal and shape with color.

5.

The Advertising Industry

Advertising industry is a rapidly growing industry and determines to a considerable extent the gross domestic product (GDP) of any country. The advertising industry besides functioning as an intermediate between the manufacturers and the customers plays an important role in the economy of the country. This industry necessitates investment for funding different resources. One cannot measure the degree of development by interpretation of inputs in the economy which yields some production. In the event when consumption levels far exceed than what is reckoned, this is not a means of triggering or bringing about transformation in the culture, society or development in human resources or economy. What the time demands is optimum and efficient execution of advertising projects by involving appropriate technology along scientific lines.

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Advertising is anywhere…

This piece of bag advertising is for the Dubai Autism Centre, and its simplicity is what makes it such a striking form of advertising.

Taxi is most one of the alternatives to advertise the advertisements are anywhere in Malaysia as well.

CLEAR anti-dandruff shampoo. In Kuala Lumpur, Malaysia they posted this poster with coupons glued to it. If you approach it though, you can see that what seemingly looked like dandruff flakes on the poster were in fact coupons that said, "Remove to get 10% off CLEAR anti-dandruff shampoo."

In this shock tactics campaign by Colenso BBDO, the message to drivers is clear, slow down or you may see this for real. The flyers were placed face down on the windscreens of parked cars near schools in a small town in New Zealand.

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SALES PROMOTIONS 6.

Definition Sales Promotions

Sales Promotions any initiative undertaken by an organization to promote an increase in sales, usage or trial of a product or service by offering of an incentive to make people act, to encourage buyers to act immediately before late. It is a short term incentives to encourage the purchase or sale of a product or service. So, company used it to pursue its advertising and marketing objectives. It will increase the volume of sales by direct influencing the decision-making process and influencing the speed of decision.

7.

Sales Promotions Objective

For consumer, Sales promotions are purposely designed: 1) To increase sales or defend market-share by encouraging repeat or multiple purchases. 2) To stimulate trial and facilitate the introduction of new products, brands or brand extensions. 3) Can be done by rewarding the loyal customers or locking customers into loyalty programs. In Malaysia for example Bonus link Card, Real Rewards and Jusco Card etc. While for retailer, Sales promotions are designed;

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1)

To encourage the retailer to facilitate particular goals mainly in introduce

their new products. 2)

To encourage distributions penetration and stimulates force motivation. 7.1

Sales Promotions are divided into 4 types, which are;

1) Consumer 2) Trade 3) Retail 4) Sales Force Consumer and trade promotions is are suppliers initiated pull and push strategies respectively, which pulling consumers to the brand. For example: Sudoku Challenge with Sony Play station as prizes. The attraction is for people to purchase and enter the competition was to the brand and not specific to the retailer. Retail sales promotions a use pull strategies to attract people to retailer rather than the brand. For an example, the Harvey Norman is the place where consumers can get many appliances there but not the place itself.

8.

The Growth of Sales Promotion

The reasons why Sales promotions has become dominant in marketing communication is because they are varied and frequently interconnected. One of the reasons is ‘improvements in technology’. Technology has enabled more

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variation in the types of promotions offered and further simplified the process. At the same time, it will improve planning for the retailer and the supplier. For example, previously album producer promotes their song on air of radio and television. Nowadays just on the internet. Starting with sending by email, then follow by creating and publish it thru website, lately blog. So technology give opportunities to advertiser advertise their products.

9.

Sales Promotion Theory

Edward Thorndike (1927) suggested the “Law of Effect” which had to do with positive and negative consequences of actions, which is also relevant to sales promotion. The law states that the consequences of behaviors will govern the consequences of that behavior in the future. In other words, once buying pattern is achieved it will continue into the future. (Once you try it, you will continuance buying that thing.) Other then that the “shaping concept” by Foxall (1998) suggests that a responsible builds on prior experience and can be explained as appearing after preceding acts, which taken together, constitute a chain of successive approximations. Shaping breaks the desired behaviors into a series of stages and the parts are learnt in sequence. In trialing product, it involves a set of behaviors mist notably inducement to repeat purchase. For example, try 3 in 1 drinks (tester) at supermarket, promoter will promote to buy. At the end, we buy it.

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While “Chaining Concept” is a concept that suggests behavior emerges from sequences of actions in which the preceding action becomes the discriminative stimulus for the final response. “Priming theory” by De Pelsmacker (2001) is theory where suggest a short exposure to a particular stimulus can evoke an increased drive to consume more of a product. So this all theories offer reasons why you can motivate people to buy more by offering incentives although the continuation of these behaviors is open to doubt.

10.

Sales Promotions Tactics

The promotion planner should take into account the type of market, sales promotion

objectives,

competitive

conditions

and

each

tools

cost

an

effectiveness. There 2 types of Sales promotions tactics that are price promotions and creative promotions (incentives). The main consumer sales promotions tools used are; 1)

Money off (coupons or vouchers)

2)

Bonus pack offers (extra 500 gram per packet)

3)

Refunds or rebates (by cash or coupons which involved one or more

purchases and submitting proof-of-purchase by mail or through claims) 4)

Combined offers (buy product A get product B F.O.C (free of charge))

5)

Sampling (tries product in-store F.O.C (free of charge), attached to

another product or sent to doorstep) 6)

Premiums or gifts (Merchandise offered with purchase of product)

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7)

Loyalty schemes (Jusco Card, Mesra Card etc)

8)

Competitions, games or contests (offer great prizes)

11.

Sales Promotions Outcomes

The simplest way to promote your product or service is to cut the price. The best way to promote the product is by adding value to it. So to add the value, sales promotions become the strategic tools when its not utilize for immediate response solution. The actual saving on any promotions is determined by the original retail price which can vary significantly between retailers. A sales promotion ‘trap’ develop when the competition start to imitate each other activities often based upon price reductions. In general, sales promotions work best when they attract competitors, customers to try a superior product and the switched customers. So using the Sales Promotions, the company must establish their objectives and select the strategic sales promotions tools. The end

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12.

References

1.

John Egan. Marketing Communications. Page 193 – 222 (Chapter Nine – Advertising and page: 223 – 243 – Chapter Ten - Sales Promotion)

Thomson

–

www.thomsonlearning.com.uk/egan.

Copyright 2007 Thomson Learning. ISBN-13: 978-1-84480-121-3 2.

Philip Kotler, Marketing Management, (Prentice Hall) Pearson Education Ltd, 2003, 11th Edition, Page 590 - 592 (Chapter Twenty)

3.

Philip Kotler, Marketing Management, (Prentice Hall) Pearson Education Ltd, 2003, 11th Edition, Page 609 - 615 (Chapter Twenty)

4.

3rd August 2008, http://en.wikipedia.org/wiki/Advertising

5.

3rd August 2008, http://en.wikipedia.org/wiki/Sales_promotion

6.

Google

search

engine

of

advertising

poster/image

http://images.google.com.my/images?client=firefoxa&rls=org.mozilla%3Aen-US %3Aofficial&hl=en&q=advertising+poster+in+malaysia&btnG=Sear ch+Images&gbv=2

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