15440072-Advertising

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 Company’s Image/products. Sales Promotion Public Relations Personal Selling Direct Marketing 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 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 Trade-Promotion Tools Price-Offs Allowances Buy-Back Guarantees Free Goods Contests Premiums Patronage Displays Rewards Discounts Give a Brand Shelf Space Promote a Brand in Advertising Push a Brand to Consumers Push Money Specialty Advertising Items 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 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 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 Awareness InnovationAdoption Model Communications Model Exposure Reception Knowlege Interest Affective stage Desire Behavior stage Action Liking Preference Conviction Purchase Adoption Evaluation Trial Interest Cognitive response Attitude Intention 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 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?