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                                                  ADVERTISING

ADVERTISING AWARENESS
IDENTIFY:
(1)  State or region advertising
(2)  National generic advertising
(3)  Brand advertising
(4)  Unique selling proposition (USP)

                                         (1)                  (2)                 (3)                  (4)

APPLES ..................................................................................................................
ONIONS ..................................................................................................................
EGGS .....................................................................................................................
POTATOES ............................................................................................................
ORANGES ..............................................................................................................
BEEF ......................................................................................................................
POULTRY ...............................................................................................................
LAMB ......................................................................................................................
MILK .......................................................................................................................
BANANAS ...............................................................................................................
WOOL .....................................................................................................................
COTTON.................................................................................................................
WHEAT ...................................................................................................................
BARLEY..................................................................................................................
TOBACCO ..............................................................................................................

THE MARKETING MIX (AKA THE 4 P's)
The four control variables for accomplishing profit goals
1.
2.
3.
4

DEFINITIONS
* Advertising = paid mass selling
* Publicity = unpaid mass selling
* Personal selling = one-on-one selling using a salesperson
* Promotion = activities that complement personal and mass selling
      Examples?
                                                                 2


TYPES OF ADVERTISING
1.
2.
3.

OBJECTIVES OF ADVERTISING.

1. Shift demand                           2. Change elasticity




Necessary components:
* Supply control
* Quality control
* Brand loyalty


WHAT MAKES ADVERTISING SUCCESSFUL?

1.   Upward consumption trend

2.   Product differentiation
     A.    Unmeasurable - perceptions
     B.    Measurable - quality control

3.   Emotion
     A.   Out
     B.   In

4.   Amount of money - Decay function




5.   Distribution

BRAND ADVERTISING STRATEGIES

1.   Product differentiation
     A.   Unique features
     B.   Brand loyalty
     C.   Shift demand curve
                                                      3


2.     Market segmentation
       A.   Product variations
       B.   Different consumer classes

FIRM ADVERTISING BUDGETS
1.   Percent of sales
     Advertising/sales ratios:
     Meat packing                0.1%
     Cheese                      0.5%
     Bread                       0.8%    *
     Breakfast cereals           8.3%    *
     Wine                        3.2%
     Pasta                       5.6%

       * Why the difference?

2.     All you can afford
3.     Return on investment
4.     Objectives and task
5.     Competitive/parity

ADVERTISING EFFECTIVENESS CRITERIA
1.  % population reached
2.  % that understand message
3.  % that have awareness
4.  % with a favorable attitude
5.  % first time buyers
6.  % change in sales


ADVERTISING EFFECTIVENESS METHODS
I.  Consumer panels
    A.    Household diaries
    B.    Problems
          1.    Not random selection
          2.    Single households, minorities, poor
          3.    Trouble with forms
          4.    At home consumption only
          5.    Product identification problems
          6.    Do they work?

II.    Test markets
       A.    Test city, control city
       B.    Before/after comparison

III. Statistics
                                                  4


PRODUCT LIFE CYCLE
1.  Introduction
2.  Growth
3.  Maturity
4.  Saturation
5.  Decline


Reasons:
1.   Shelf space
2.   Reduced advertising
3.   New product profitability:
                        Profits:
     First year             44%
     Second year            16%

Neilson food industry survey:
      Saturation point:
        3 years or less       85%
        3 years or more       15%

GENERIC ADVERTISING
Farm demand characteristics
1.     Low price elasticity
2.     High cross elasticity *
3.     Low income elasticity
4.     Human stomach is inelastic *
* gain of one commodity is at expense of others

Role of government
1.    Research and promotion acts
2.    Marketing orders
3.    Export promotion and market development
4.    Funding support base

Components of successful generic advertising
1.  Differentiated product
2.  Supply control
3.  Quality control
4.  Other market activities
5.  Fresh form
6.  Money
7.  Parasitic advertising

ADVERTISING RELATIVE EFFECTIVENESS

BRAND > = < GENERIC > = < ALL

				
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posted:11/28/2011
language:Dutch
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