Principles of Marketing Lecture34 Summary of Lecture33 Advertising

Principles of Marketing Lecture-34

Summary of Lecture-33

Advertising

The Five M’s of Advertising

Message Money Message generation Factors to consider: Message evaluation and selection Mission Stage in PLC Message execution Sales goals Market share and consumer base review Advertising objectives Competition and clutter Advertising frequency Product substitutability Measure. Social-responsibility ment Media Reach, frequency, impact Major media types Specific media vehicles Media timing Geographical Communi cation impact Sales impact

Major Advertising Decisions

Objectives Setting Budget Decisions Message Decisions Media Decisions Campaign Evaluation

Choose the Media

Television Yellow Pages Newspaper Magazine Major Kinds of Media Direct Mail Outdoor Radio Internet

Today’s Topics

Advertising (cont. . ) Sales Promotion

Media Scheduling

Step 1. Decide on Reach, Frequency, and Impact Step 2. Choosing Among Major Media Types Step 3. Selecting Specific Media Vehicles Step 4. Deciding on Media Timing

CSetting the timing and sequence of a series of advertisements. CSales patterns (seasonal), repurchase cycles, and competitors’ activities are the most important variables. CAdvertisers use the concepts of reach, frequency, and gross rating points to measure the effectiveness of media scheduling plans.

CReach: the number of different people or households exposed to an advertisement at least one during a certain time period. CFrequency: the number of times an individual person is exposed to an advertisement in a certain time. CGross rating point: reach times frequency.

Evaluating Advertising Effectiveness

Tools: Pretesting Posttesting Sales Effectiveness Evaluations • Focus Groups • Screening • Persuasion Scores Tools: • Unaided Recall Tests • Aided Recall Tests • Inquiry Evaluations Tools: • Monitor Sales • Brand-to-Sales Effects

Advertising Program Evaluation Communication Effects Sales Effects Is the Ad Communicating Well? Is the Ad Increasing Sales?

What to communicate? Get Attention Hold Interest Arouse Desire Obtain Action

Ways to Handle Advertising

Sales Departments in Small Companies Advertising Departments in Larger Companies Advertising Agency

Sales Promotion

Sales Promotion is a Mass Communication Technique That Offers Short-Term Incentives to Encourage Purchase or Sales of a Product or Service. Offers Reasons to Buy Now.

Sales Promotion Objectives

C Increase short-term sales or help build long-term market share. C Get retailers to: –carry new items and more inventory, –advertise products, –give products more shelf space, and –buy product ahead.

In general, sales promotion should focus on consumer relationship building.

Reasons for Increase in Sales Promotion

CGrowing Power of Retailers CDeclining Brand Loyalty CIncreased Promotional Sensitivity CFragmentation of Consumer Markets CShort-Term Focus CPressure from inside organization CCompetition CClutter

Major Consumer Sales Promotion Tools

Sample Trial amount of a product Coupons Savings when purchasing specified products Cash Refunds Refund of part of the purchase price Packs Reduced prices marked on the label or package Premiums Goods offered free or low cost as an incentive to buy a product Advertising Specialties Articles imprinted with an advertiser’s name given as gifts

Consumer Sales Promotion Techniques Price Deals Advertising Specialties Coupons Rebates Sampling Cross. Promotions Premiums Contests, Games, Sweepstakes

Price Deals ! n i a g Va r a B Sale lue ! ! Cents. Off Deals Price. Pack Deals

Major Trade Sales Promotion Tools

CDiscount CAllowance

Objectives of Trade Promotions

Avoid Price Reductions Gain/Maintain Distribution Defend Against Competitors Influence Reseller Promotion Increase Reseller Inventory Influence Price Discount

Trade Sales Promotion Techniques

Trade Allowances Dealer Loaders Trade Contests Point-of-Purchase Displays Trade Shows Training Programs Push Money

Developing the Sales Promotion Program

Decide on the Size of the Incentive Set Conditions for Participation Determine How to Promote and Distribute the Promotion Program Determine the Length of the Program Evaluate the Program

Sales Promotion Uses

C Introduce new products C Get existing customers to buy more C Attract new customers C Combat competition C Maintain sales in off season C Increase retail inventories C Tie in advertising and personal selling C Enhance personal selling efforts

Limitations of Sales Promotion

Cannot Reverse Declining Sales Trend Cannot Overcome Inferior Product May Encourage Competitive Retaliation May Hurt Profit

Enough for today. . .

Summary

Media Scheduling

Step 1. Decide on Reach, Frequency, and Impact Step 2. Choosing Among Major Media Types Step 3. Selecting Specific Media Vehicles Step 4. Deciding on Media Timing

Evaluating Advertising Effectiveness

Advertising Program Evaluation Communication Effects Sales Effects Is the Ad Communicating Well? Is the Ad Increasing Sales?

Sales Promotion

Major Consumer Sales Promotion Tools

Major Trade Sales Promotion Tools

Developing the Sales Promotion Program

Decide on the Size of the Incentive Set Conditions for Participation Determine How to Promote and Distribute the Promotion Program Determine the Length of the Program Evaluate the Program

Next….

Personal Selling

Principles of Marketing Lecture-34