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SALES MANAGEMENT
Importance of Advertising
“Advertising is telling and selling”
Though it is one of the several functions
of marketing, it has taken the form of an
independent discipline.
The Meaning of Advertising
The term originates from the Latin “adverto”,
which means to turn round.
Advertising thus denotes the means employed to
draw attention to any object or purpose.
“It is a paid form of non personal presentation an
promotion of ideas, goods or services by an
identified sponsor.”
Through advertisement, the advertiser intends to
spread his ideas about his products among this
customers and prospects.
Popularization is the basic aim of the advertising
activity
Key Components of the Advertising Job
NOISE
Limitations of Linear Model
It is easy to interpret in such a way that meaning and message are
understood to be synonymous. This risks misconstruing the interpretative
possibilities.
Oversimplification of the customer’s cognitive engagement with
advertising by emphasizing a singular message that has one unproblematic
meaning.
The advent of parallel processing: the assumption that computers and
human brains can process one bit of data at a time as been challenged by
more complex models
The implication that explicit attention must be given to an ad is erroneous.
The linear model of communication with its sequential processing translates
conveniently into a model of persuasion if these stages are replaced with
attitudinal or behavioral states (AIDA). A lot of research goes on in
measuring these states as they are an indicator of the likelihood of purchase
(and therefore an indicator of success of the advertisement campaign). Thus
these are necessary conditions for advertising to achieve its marketing goals
but not sufficient. Eg. A consumer may be aware of ad or may even like an
ad but that does not mean he will buy the product.
Advertising
How Advertising Works
The Lavidge-Steiner Purchase
Learning Model
How people “learn” ads Conviction
Begins with Awareness
Preference
Moves to Conviction
and Purchase Liking
NOTE: Process may be
quite rapid and you Knowledge
may try before being
totally convinced
Awareness
Key
The SingleConcepts
Biggest Thing:
Advertising dollars have great “elasticity”
Planning and implementing the Right Advertising
is usually critical for success in the
marketplace
The Wrong Advertising is usually worthless
Advertising can be The Single Biggest Thing
It can probably impact sales more than any other
element of the marketing mix.
And … it is the most fun!
Key
The SingleConcepts
Biggest Thing
Advertising is just a part of “The Five Ps”
All of “IMC” is important
However...
Advertising dollars are...
Often, the biggest item in the marketing budget
The most visible part of marketing spending
The most controllable marketing activity
Advertising is often…
“the tail that wags the marketing dog”
Key Concepts
Campaigns:
Origin of term
Military Campaigns
Political Campaigns
Advertising Campaigns
Key Concepts
Campaigns:
Origin of term
Fr. campagne, It. campagna - open country
suited to military maneuvers
Campaign - a series of military operations with
a particular objective in a war
Campaign - a series of organized planned
actions with a particular purpose, as for
electing a candidate.
Key Concepts
Campaigns:
Military Campaigns
“Victory is my objective.
War is my strategy.”
Winston Churchill
Key Concepts
Campaigns:
Military Campaigns
“a series of military operations with a particular
objective in a war”
Advertising and marketing use both
the language and the military
mindset
Example: a very popular
marketing book…
Key Concepts
Campaigns:
Political Campaigns
“Advertising
is a team sport!”
Key Concepts
Campaigns:
Advertising Campaigns
A team effort
Structured and
sequential
activities
An imaginative
re-integration of
new and existing factors
Shared objectives
and strategies
Key Concepts
Advertising Campaign:
The same
language!
Key Concepts
Vocabulary:
The Language of Marketing & Advertising
Originalconcepts came from military
Now the business of marketing has its
own intellectual infrastructure - a way of
thinking and a way of talking
Understanding the specific meanings of key
words and concepts is critical
Yes, it will be on the test!
Key Concepts
Vocabulary:
Mission: Overall goals & values
your “reason for being”
Objective: What you want to accomplish.
Strategy: How you are going to do it.
Tactic: Specific action. (Should be
specific action that helps meet strategic
goals - tactics should be on strategy.)
Remember, objectives first, then
strategy. (If you don’t know where
you’re going, any road will take you
there.)
Key Concepts
Vocabulary:
Mission: Overall goals & values
your “reason for being”
Objective: What you want to accomplish.
Strategy: How you are going to do it.
Tactic: Specific action. (Should be
specific action that helps meet strategic
goals - tactics should be on strategy.)
Remember the acronym M.O.S.T.
Mission, Objective, Strategy, Tactics
Key Concepts
Vocabulary:
The Value
The
Value Ladder
Ladder “Laddering”
Value “I’m a good mom”
Benefit Good food for my family
Consumer Benefit Kids like it
Product Benefit Easy to serve
Feature E-Z Open glass jar
Attribute Apple sauce is made
from apples
Key Concepts
Vocabulary:
Some More Important Words…
Target audience - person or group to
whom advertising is directed
Primary target - the target audience
Secondary target - usually, the trade
Demographics - statistical description of
target audience
Psychographics - psychological traits of
target audience
Key Concepts
Vocabulary:
Some More Important Words…
Sales Promotion - use of incentives (a small
bribe) to develop or stimulate sales
Public Relations (PR) - publicity through
non-paid media
Publics - a PR version of target audience
Situation
Analysis - beginning section of plan
where current situation is evaluated
“SWOT” Analysis - Strengths, Weaknesses,
Opportunities, and Threats
Key Concepts
Vocabulary:
Some Important Media Words…
Reach - percentage of the audience exposed
to an advertising message
Frequency - average number of times
audience has had the opportunity to see the
message
GRPs (Gross Rating Points) - the sum of the
ratings points (a point is one percent of the
audience)
TRPs (Target Rating Points) - this is a subset,
measuring rating points for the target group
Key Concepts
Vocabulary:
Some More Important Media Words…
CPM (Cost per thousand) - how much it costs
to reach a thousand people (the “M” is the
Roman numeral for a thousand)
CPP (Cost per point) - how much it costs to
buy a “point” of the broadcast audience
Share - percentage of an audience tuned to a
specific station
OK,now that we know how to talk about
advertising, let’s talk about how it works…
works
Advertising
How Advertising Works
Let’s
talk about how advertising
works. Next, we’ll cover...
Some things we know about people
Some things we know about
advertising messages
The Lavidge-Steiner Learning Model
“AIDA”
Advertising
How Advertising Works
Some things we know about people.
“People read what interests them,
sometimes it’s an ad.” (Gossage)
People are strategic - they look out for
their own best interests.
People are bombarded with messages
A key concern is getting through clutter
People (and advertising) work from
both logic and emotion
Advertising
How Advertising Works
Some things we know about
Advertising
Branding and Advertising
Branding = overall brand equity building
Advertising = specific messages and goals
Advertising contributes to Branding
Advertising is concerned with:
The Advertising Message
Media Planning and Placement
Advertising
How Advertising Works
Some things we know about
An
Advertising
Advertising Communication Model
Advertising Communication Model
Feedback
Advertiser Audience
Sender Receiver
(Encoder) (Decoder)
MES SA GE
Note it is more difficult for the audience to
communicate back to the advertiser.
Feedback is one purpose of Market Research
Deciding the Advertising Budget
(how much should a company
spend?)
No Standard Formula or Norm
Varies from industry to industry
Y = f (X, β)
The user of regression analysis must make an intelligent guess about this function. Sometimes
the form of this function is known, sometimes he or she must apply a trial and error process.
Assume now that the vector of unknown parameters, β is of length k. In order to perform a
regression analysis the user must provide information about the dependent variable Y:
If the user performs the measurement N times, where N < k, regression analysis cannot be
performed: there is not provided enough information to do so.
If the user performs N independent measurements, where N = k, then the problem reduces to
solving a set of N equations with N unknowns β.
If, on the other hand, the user provides results of N independent measurements, where N > k,
regression analysis can be performed. Such a system is also called an overdetermined system;
Written Matter
Pictures
Labels
Logo
Design
Source
The Credibility of the Source
Likeability/Attractiveness of the Source
The Source’s approach to the views and
Disposition of the audience
Snapshots
Source tone: soothing, authoritative, upbeat;
familiarity or lack of it.
Color: Blue-Cold, used to create distance, blue
skies. Red-Intense. Orange (Warm). Black
(Mysterious, Sinister), Purple (Luxury). Colors can
be treated as metaphors for nature: green grass,
brown earth, red blood and passion
Serif Old Roman Style: Tradition and Authority
Times, Century Schoolbook (Transitional),
Media Selection
Deciding on:
Methods: