Académique Documents
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PROMOTION
Session-I
Introduction to
Advertising
Marketing Defined
Marketing is a societal process, by which individuals and
Marketing Mix
Product
Price
Promotion
Place
Promotional Mix
Sales promotion
Advertising
Sales force
Public relations, Publicity
Direct mail, Telemarketing and Internet
Promotion
The coordination of all seller-initiated efforts to set up
Interactive /
Internet
Marketing
Direct
Marketing
Promotional
Mix
Personal
Selling
Sales
Promotion
Publicity /
PR
Advertising
Advertising is any paid form of non personal presentation and
Paid Aspect
Introduction to Advertisement
The activity of attracting public attention to a product or
What is Advertising?
Three criteria must be met for a communication to be
classified as advertising:
The communication must be paid for.
The communication must be delivered through mass media.
The communication must be
attempting to persuade.
5 Ms of Advertising
Mission
Money
Message
Media
Measurement
Advertising characteristics
Paid form
Forms of Advertisements
Advocacy
Comparative
Cooperative
Direct-mail
Informational
Institutional
Outdoor
Persuasive
Product
Reminder
Point-of-purchase
Specialty advertising.
Classification of Advertising
For whom (target audience- Industrial, Consumer)
Audience Geography
Global
International
National
Regional
Local
Business Organizations
The Trade Channel
Professionals
Government
Functions of advertising
Informs the buyers
Offers an incentive
Reminds the benefits
Stimulates to try the product once
Builds brand
Reduces selling costs
Persuades people
Session II
Social, Ethical & Legal
Aspects
Consumer culture
Consumer awareness
Consumerism
Ability and capability of consumers to purchase various goods
& services
After industrial revolution (preference to consumers)
Advancement in areas of education and research, technology
in all fields have been continuously upgraded
It resulted in increased production, increased employment
opportunities, generation of income, distribution and friendly
consumption.
Consumer culture
Improves the culture of the consumers
Consumer awareness
There are more than 20 legislative enactments in India to
Effects of Advertising
Effects of advertising on costs
Effects of advertising on total marketing costs
Effects of advertising on total manufacturing costs
Effects of advertising on price
Prevents price competition for a longer period
income
presented as News.
Advertisements for services concerned with the
following shall not be accepted: Money lenders;
Chit funds;
Saving schemes and lotteries other than those conducted by
Ethics in advertising
Advertising should be in conformity with the laws of land
Advertisements should not be done against the cultural, religious and
Ethics in advertising
Comparisons which unfairly disparage (criticize) a competitive
Ethics in advertising
Apart from state advertisements, national symbols
Advertisements
Session III
Advertising Agency
Advertising Agency
Advertising agency is defined as an organisation whose
Creative ability
Management ability
Creative Boutique
Interactive Agency
In-House Agency
Media-Buying Agency
Production capabilities.
Media purchasing capabilities.
Other services available.
Capabilities of an ad agency
Marketing & media planning
Ad agency Remuneration
Three methods used to compensate ad agencies
Commission
Negotiated fee
Percentage charges
Compensation of Ad Agencies
Initially agencies just sold space for the media and made
money
Marketed space for the press and the magazines
Paid on the basis of amount of space they sold by the media
Media Commissions
Media commission is an amount paid by the media to an
Session IV
Advertisement Media
Alternative Media
Session V
Communication Process:
Source, Message & Channel
factors
Verbal
Spoken
Word
Graphic
Pictures
Musical
Animation
Arrangement
Action/
Motion
Instrumentation
Pace/ Speed
Drawings
Written
Word
Song Lyrics
Charts
Voices
Shape/
Form
Interpretant/
intended meaning
(masculine,rugged
individualistic)
Sign or symbol
representing intended
meaning (Cowboy)
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Verbal
Grammar
Inflection
Inflection
(modulation)
Gesture
Nonverbal
Facial
Expression
Body Language
Communications Channels
Personal Selling
Personal Channels
Word of Mouth
Print
Media
Nonpersonal
Channels
Broadcast
Media
Experiential Overlap
Different Worlds
Receiver
Experience
Sender
Experience
Moderate Commonality
Sender
Experience
Receiver
Experience
High Commonality
Receiver
Sender
Experience
Experience
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Receiver
Experience
Market Segments
Niche Markets
Small Groups
Individuals
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Persuasion Process
Circulation Reach
Exposure, Presentation
Listener, Reader,
Viewer Recognition
Attention
Recall, Checklists
Comprehension
Brand Attitudes,
Purchase Intent
Message Acceptance/
Yielding
Retention
Inventory, POP
Consumer Panel
Purchase Behavior
Cognitive
Affective
Conative
Dissonance/
Attribution Model
Low
Perceived product
differentiation
High
Learning Model
Conative
Affective
Cognitive
Low
Low Involvement
Model
Cognitive
Conative
Affective
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Cognitive Response
A method for examining consumers cognitive
processing of advertising messages by looking at
their cognitive responses to hearing, viewing, or
reading communications.
Examines types of thoughts that are evoked by an
advertising message.
Consumers write down or verbally report their
reactions to a message.
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Counter Arguments
Support Arguments
Source Bolstering
Ad Execution Thoughts
Thoughts About
the Ad Itself
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Affect Attitude
Toward the Ad
Central route to
persuasion ability
and motivation to
process a message is
high and close
attention is paid to
message content
Peripheral route to
persuasion ability
and motivation to
process a message is
low and receiver
focuses more on
peripheral cues rather
than message content
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Filters
Motivation, ability,
(involvement)
Consumer
Cognition, Affect, Experience
Consumer Behavior
Choice, consumption,
loyalty, habit, etc.
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Session VII
Establishing Objectives and Budgeting
Promotional Programs
Value of Objectives
Objectives
Focus &
Coordination
Plans &
Decisions
Measurement
& Control
Characteristics of Objectives
Attainable
Realistic
Measurable
Objectives
Not Mutually
Exclusive
Specific
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Communications
Objectives
Vs.
$ALE$
Promotion
Distribution
Competition
Technology
Product
Quality
Price Policy
The
Economy
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Conative
Realm of motives.
Ads stimulate or direct
desires.
Affective
Realm of emotions.
Ads change attitudes and
feelings
Purchase
Conviction
Preference
Competitive ads
Argumentative copy
Liking
Image copy
Status, glamour appeals
Knowledge
Announcements
Descriptive copy
Classified ads
Slogans, jingles, skywriting
Awareness
Teaser campaigns
Cognitive
Realm of thoughts.
Ads provide information
and facts.
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Point of purchase
Retail store ads, Deals
Last-chance offers
Price appeals, Testimonials
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Define
Advertising
Goals for
Measuring
Advertising
Results
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
DAGMAR Difficulties
Legitimate Problems
Attitude - Behavior
Relationship
Response Hierarchy
Problems
Questionable Objections
Sales Objectives
Needed
Inhibits Creativity
Acting on Consumers
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
What were
willing and able
to spend
Dollars
What we need to
achieve our
objectives
Goals
Marginal Analysis
Gross Margin
Sales in $
Sales
Ad. Expenditure
Profit
Point A
Advertising / Promotion in $
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Increase Spending
Hold
Spending
Decrease Spending
Advertising Expenditures
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Initial Spending
Little Effect
Middle Level
High Effect
High Spending
Little Effect
B. S-Shaped
Response
Function
Incremental Sales
Incremental Sales
A. ConcaveDownward
Response Curve
Range A
Range B
Range C
Advertising Expenditures
Top-Down Budgeting
Arbitrary
Allocation
Percentage
of Sales
Top
Management
Return on
Investment
Affordable
Method
Bottom-Up Budgeting
Total Budget Is Approved by
Top Management
Establish Objectives
(create awareness of new product among 20 percent
of target market)
Proposition II
The leading brand in a product group enjoys lower advertising costs per sales
dollar than do other brands.
No evidence to support this!
Proposition III
There is a static relationship between advertising costs per dollar of sales and
the size of the advertiser.
No evidence to support this!
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Low
Competitors
Share of Voice
High
Decreasefind a
Defensible Niche
Increase to Defend
Maintain Modest
Spending Premium
Low
High
Your Share of Market
Session VIII
Creative Strategy : Planning & Development
Advertising Creativity
Creative
Strategy
Creative
Tactics
Its not
creative
unless it sells
Suits
Artists
Only artistic
value and
originality
count
Digestion
Incubation
Illumination
Verification
Preparation
Preparation
Gathering
Gathering
Information
Information
The
Creative
Process
Verification
Verification
Refining
Refining
the Idea
Incubation
Incubation
Setting
Setting
Problem
Problem
Aside
Aside
Campaign Theme
1. De Beers
2. Nike
Just do it!
3. Coca Cola
4. Miller Lite
5. Avis
We try harder
6. Maxwell House
7. Wheaties
Breakfast of champions
8. Clairol
9. Morton Salt
10. Wendys
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
An Advertising Campaign
Integrated
Integrated
Interrelated
Interrelated
Coordinated
Coordinated
Marketing
Communication Activities
Centered on a Theme or
Idea
InIn
Different
Different
Media
Media
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Miller
Lite
Miller
Lite
At a place called
Miller time
BMW
BMW
Chevy
Trucks
Like a Rock
Campaign Theme
Nike
Just do it
Allstate Insurance
Hallmark cards
Budweiser
Intel
Intel inside
Chevy Trucks
Like a rock
Dial soap
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Use a Unique
Create a Brand Image
Selling Position
Positioning
Create
Find
thethe
Inherent
Brand Image
Drama
Benefit
Buy this
produce and
you'll benefit
this way or
enjoy this
reward
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Unique
Must be unique
to this brand or
claim; something
rivals can't or
don't offer
Potent
The promise
must be strong
enough or
attractive
enough to move
people
Leo Burnett
Inherent Drama
Positioning
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Session IX
Creative Strategy:
Implementation and Evaluation
Advertising
Appeals
Execution
Style
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Accomplishment
Affection
Arousal
Comfort
Fear
Happiness
Love
Pleasure
Safety
Self-esteem
Sorrow
Affiliation
Acceptance
Embarrass-ment
Social-Based
Feelings
Status
Belonging
Respect
Involvement
Rejection
Recognition
Transformational Ads
Feelings
Images
The ads
create . . .
Beliefs
Meanings
Richer
More
Exciting
Warmer
More
Enjoyable
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Emotions
Personality
Product Benefits
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Ad Execution Techniques
Straight-sell
Slice of life
Scientific
Testimonial
Demonstration
Animation
Comparison
Personality Symbol
Dramatization
Fantasy
Humor
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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Print Ad Components
Headline:
Words in the Leading Position of the Ad
Subheads:
Smaller Than the Headline, Larger Than the Copy
Body Copy:
The Main Text Portion of a Print Ad
Visual Elements:
Illustrations Such As Drawings or Photos
Layout:
How Elements Are Blended Into a Finished Ad
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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Print Ad Layout
Format
Size
Color
White
Space
Jingle
1. McDonalds
2. U.S. Army
3. Pepsi Cola
4. Campbells Soup
5. Chevrolet
6. Oscar Mayer
7. Wrigleys gum
8. Winston
9. Coca-Cola
10. Brylcreem
Preproduction
Production
Postproduction
Preproduction Tasks
Select a Director
Preproduction
Meeting
Choose Production
Company
Preproduction
Production Timetable
Bidding
Production Tasks
Production
Night/weekend
Shoots
Talent
Arrangements
Postproduction Tasks
Editing
Processing
Release/
Shipping
Sound Effects
Postproduction
Audio/Video
Mixing
Duplicating
Client/agency
Approval
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Opticals
Session X
Media Planning
and Strategy
Media Terminology
Media
Planning
Media
Objectives
Media
Strategy
Media
Broadcast
Media
Media Terminology
Print
Media
Media Vehicle
Reach
Coverage
Frequency
Marketing
Strategy Plan
Creative
Strategy Plan
Lack of Information
Problems
in Media
Planning
Time
Pressure
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Inconsistent
Terms
X 100
X 100
Low CDI
High CDI
High BDI
Low BDI
Low CDI
High CDI
High BDI
Low BDI
Target
Market
Proportion
Full
Market
Coverage
Partial
Market
Coverage
Coverage
Exceeding
Market
Flighting
Pulsing
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Brand Loyalty
Brand History
Brand Share
Share of Voice
Usage Cycle
Purchase
Cycles
Target Group
Message Complexity
Message Uniqueness
New Vs. Continuing Campaigns
Image Versus Product Sell
Message Variation
Wearout
Advertising Units
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Scheduling
Repeat Exposures
Media Factors
Editorial
Environment
Attentiveness
Number of Media
Used
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
CPM =
Cost of ad space
(absolute cost)
Circulation
X 1,000
CPRP =
Disadvantages
Mass Coverage
Low Selectivity
High Reach
High Prestige
Clutter
Attention Getting
Favorable Image
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Disadvantages
Local Coverage
Audio Only
Low Cost
Clutter
High Frequency
Flexible
Fleeting Message
Disadvantages
Segmentation Potential
Quality Reproduction
Visual Only
Lack of Flexibility
Longevity
Multiple Readers
Disadvantages
High Coverage
Short Life
Low Cost
Clutter
Disadvantages
Location Specific
High Repetition
Short Ads
Easily Noticed
Poor Image
Local Restrictions
Disadvantages
High Selectivity
Clutter
Disadvantages
Interactive Relationship
Technology Limitations
Limited Reach
Session XI
Evaluation of Print media / Support
Media
Classifications of Magazines
By
Content
Audience
By
Geography
By
Size
Consumer
Magazines
Local
Large
Regional
Flat
National
Standard
Farm
Magazines
Business
Magazines
Small or
Pocket
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Disadvantages
Selectivity
Costs
Reproduction Quality
Limited Reach
Creative Flexibility
Limited Frequency
Prestige
Clutter
Receptivity, Involvement
Services
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Primary
Circulation:
Primary
(Original subscribers or
Circulation
purchasers)
Guaranteed Circulation: A
rebate is given to advertisers is
Guaranteed
guaranteed
number is not met.
(Estimations
are made below
Circulation
the average)
Circulation Verification:
Controlled
Circulation
Pass-Along Readership: Giving
the magazine
by the primary
Pass-Along
subscriber or purchaser to an
Readership
other
person OR read
somewhere.
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Credibility of circulation
Circulation
figures. Auditing is done
through verification
Verification
services.
-Size if the ad
-Position in the publication
-The particular edition chosen: (e.g., geographical or Demographic)
- Any special mechanical or production requirement
-Number and frequency of insertions
Cross-Mag.&&Media
Cross-Mag.
Media
Deals
Deals
(Packages offered to advertisers)
Trends,
Trends,
Trends
Database
Marketing Database MKG for better segmen
Database Marketing:
Advances
in Technology:
Selective binding & InkAdvances
in Technology
Magazines Go Online
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Newspaper Classifications
Publication
Frequency
Daily
Weekly
National
Type
Special-Audience
Supplements
Standard
Size
Tabloid
Ethnic, Religious, Etc.
Audience Type
Business, Financial, Etc.
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Characteristics of Newspapers
The Dominant Advertising Vehicle
Account for 22% of Ad Dollars
Over 1,500 Daily Papers in Print
Dailys Read by About 60% of adults
Main Community Medium
Local Ads Provide Most of Revenue
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Newspaper Advertising
Local (Mostly Retail)
Display Ads
Classified Ads
Printed Inserts
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Disadvantages
Extensive Penetration
Production Quality
May Be Low
Flexibility
They Have a
Short Life Span
Geographic Selectivity
Involvement, Acceptance
Services Offered
Newspaper Characteristics
Read by Almost All Consumers
Wide Audience
Offer
Flexibility
Session XII
Advertising and Social Media
Session XIII
Amplifying Perceptions: How Jetblue
Uses Twitter To Drive Engagement
And Satisfaction
Session XIV
Direct Marketing, Internet & Interactive
Media
Catalog Selling
Telemarketing
Direct Selling
Direct Mail
Technical Advances
Personal
Selling
Advertising
Direct
Marketing
Support
Media
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Sales
Promotion
Objectives
Cross-selling Other Products
Customer Relationship
Management
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Developing a Database
List Services
Simmons Market
Research Bureau: (Research
on at home buying via Mail
or Telephone)
Sources
National Census
U.S. Census Bureau
Bureau
U.S.
Postal
Postal
Service
Service
Direct Marketing
Association
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Two Step
Typically follow up
with a second medium
to complete the sale
e.g.,and
TV
TVCATV
and CATV
Commercials
Commercials
and
Infomercials
and
Infomercials
Selling
Selling
Products
Products
by
Phone
by
Phone
or Mail
or Mail
Order.
Order.
Inclusions
Inclusions (e.g., in newspapers)
Postcards
Catalogs
Reprints
Flyers
Sales letters
Folders
Self-mailers
Coverage
Selectivity
Exclusivity
Advantages
Response
Flexibility
Reach
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Impact
Disadvantages
Clutter
- Cons
Production Costs
Are Usually Very High
Saturation for
Some Markets Is Likely
Delivery or Fulfillment
May Be Delayed
Delivery or Fulfillment
May Be Delayed
Customer Cant Inspect
or Handle Goods
Inbound
Marketers facilities and
invitations to prospects to
call a central location or
long distance number or
by toll-free, 800 or fixed
cost 900 number.
Outbound Telemarketing
Advantages
Disadvantages
Interactive Contact
Intrusive Nature
Extensive Reach
Caller-controlled Timing
High Impact
- Cons
Repetitive
personto-person selling
Nonrepetitive
personto-person selling
Direct
Selling
Party
Plans
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Disadvantages
Disadvantages
Selective Reach
Image Factors
Segmentation Capability
Accuracy
(e.g., People move and
Accuracy
change jobs)
Frequency Potential
Content Support
Flexibility
Rising Costs
Timing
Personalization
Economy
Measurement of Effectiveness
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Session XV
The Internet and Interactive Media
Usenet
Telnet
File transfer protocol (ftp)
Internet
Features
Gopher
Wide Area Information Server (WAIS)
World Wide Web (WWW)
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Internet Participants
Senders
Internet
Advertisers
Sponsors
e-Commerce
Merchants
Receivers
Users
Internet
Shoppers
Customers
The Website
Where information is
made available by the
provider
Must Be:
Interesting
Current
Easy to navigate
Involving
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To Stimulate Trial
To Generate Interest
Objectives
To Create a Strong
Brand
To Disseminate
Information
To Create an Image
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May Be Primary
or Secondary Objective
Fast Growth in
Downloadable
Purchases
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Sales Promotions
The Internet site should
be integrated with:
Personal Selling
Public Relations
Direct Marketing
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Internet Advertising
Has a Variety of Forms:
Pop-ups/
Pop-unders
Interstitials
Push Technologies
Links
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Typical Banner Ad
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Vastly Increases
Potential Reach
May Be a Source of
Leads
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Highly Targeted
Direct Mail
(Email)
Relies on
Email Lists
Infomercials
Measures of Effectiveness
Tracking
Surveys
Online Measuring
Panels
Sales
Recall and
Retention
Data
Source
Disadvantages
Target Marketing
Measurement problems
Message Tailoring
Websnarl
Interactive Capabilities
Clutter
Information Access
Sales Potential
Privacy
Creativity
Exposure
Poor reach
Speed
Irritation
Chapter XVI
Sales Promotion
Sales Promotion
A direct inducement that offers an extra value or
incentive for the product to the sales force, distributors,
or the ultimate consumer with the primary objective of
creating an immediate sale.
An Extra
Incentive to Buy
A Tool to
Speed up Sales
Targeted to
Different Parties
Trade-Oriented
Samples
Coupons
Trade Allowances
Point-of-purchase Displays
Contests/sweepstakes
Training Programs
Refunds/rebates
Trade Shows
Bonus Packs
Cooperative Advertising
Price-off Deals
Frequency
Programs
(e.g., accumulating points
Frequency
Programs
for frequent purchases)
Event Marketing
Reasons
Brand Proliferation
marketplace)
Objectives
To Defend (Maintain)
Current Customers
To Target a Specific
Segment
Sampling
Sampling Works Best When
Sampling Methods
Door-to-door
Methods
Direct Mail
Central Location Distribution
In-store Sampling
Cross-product Sampling
Co-op Package Distribution
With Newspaper / Magazine
Event Sampling
Internet Sites
Coupons
The
Oldest and
Most Widely Used
Sales Promotion Tool
Nearly
240 Billions
Distributed Each
Year in the US
Coupons
80
Percent of
Consumers
Use Coupons and
25% Use Them Regularly
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Disadvantages
Premiums
Premium: an offer of an item of merchandise
or service either free or at a low cost that is an
extra incentive for customers
Self-liquidating Premiums:
Require Consumer to Pay Some
or All of the Cost of the
Premium, but lower than
retailers prices.
Bonus Packs
Refunds and
Rebates
Other
Promotional Tools
Event Marketing
Price-off Deals
Frequency/
Loyalty Programs
Objectives
Encourage Retailers to
Display
Existing Brands
Buying Allowances
Point-of-Purchase Displays
Promotional
Allowances
Slotting Allowances
IngredientSponsored
Coop Advertising
Cooperative
Advertising
Vertical
Cooperative
Advertising
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Created Tactics
Creates Strategy
Do Single Project
Continuing Service
Inferior to Ad Agency
Equal to Ad Agency
Indirect Accountability
Directly Accountable
Chapter XVII
Public Relations, Publicity, and
Corporate Advertising
Disadvantages
Endorsements by Independent
Third Parties
Achievement of Credibility
Traditional PR Perspective
Customers
Community
Investors
Public Relations
Department
Suppliers
Government
Employees
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Establishing a PR Plan
Serves As an Early
Warning System
Increases
Communications
Effectiveness
Secures Internal
Cooperation, Support
Interviews
PR Tools
Exclusives (One
The Internet
Particular
Medium to
Exclusives
cover the story)
Community
Involvement
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Image Building
Cost Savings
PR
Provides
Selectivity (some
products
appeal to
Selectivity
small segments)
Avoidance of
Clutter
Lead Generation
(Providing important
information, e.g., Medical
Innovations)
Lead Generation
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Publicity
The Generation of News About a Person, Product, or
Service That Appears in the Media
Disadvantages
Substantial Credibility
Timing Difficult or
Impossible to Control
News Value
Inaccuracy, Omission, or
Distortion May Result.
Significant Word-of-mouth
Perception of Endorsement
by Media
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Establish Diversified
Companys Identity
Objectives
Help
Deregulated
HelpNewly
Newly
Industries (ease consumer
Deregulated
uncertainty & answer
Industries
investor questions)
Boost Employee
Morale
Smooth Labor
Relations
Corporate Advertising Is a
Waste of Money
Consumers Arent
Interested in This Form of
Advertising
Claims of
Opponents to
Corporate
Advertising
Event Sponsorship
Sponsorship
Recruitment
Advocacy Advertising
(addresses social, business
or environmental issues)
Cause-related
Advertising
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Financial Support
Event Sponsorship
Corporate Sponsor
Sporting
Events
Music,
Entertainment
Causes
Festivals
Cultural Events
Arts
Advocacy Advertising
Advocacy advertising:
is the propagation (spread) of ideas and
elucidation (clarification) of controversial
social issues of public importance in a
manner that supports the interests of the
sponsor.
Disadvantages
Chapter XVIII
Personal Selling
What
What Information
Information Must
Must Be
Be Exchanged
Exchanged Between
Between Firm
Firm and
and
Potential
Potential Customer?
Customer?
What Are the Alternative Ways to Carry Out These Communications
What
Are the Alternative Ways to Carry Out These
Objectives? (i.e., Promotional Mix alternatives, e.g., Direct Marketing, Sales
Communications
Objectives?
Promotion, Public Relations,
etc.)
Price
Channels
Advertising
Complex goods
or services
Final price
negotiable
Channel short
and direct
Major purchase
decisions
Price provides
adequate margin
Training needed
by intermediaries
Media do not
provide an
effective link
Personal
demonstration
required
Selling needed
to push product
through
Intermediaries
can provide
personal selling
Information can
not be provided
by media
Sparse market
reduce
advertising
economies
Persuader Stage
Prospector Stage
Problem-solver Stage
Procreator Stage
Guiding (bringing
Creative Selling
Must Assess Situation, Determine Needs
Order Taking
Often Involves Straight Rebuying
Missionary
Sales Rep
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Disadvantages
Two-way Interaction
With Prospect
Message Can Be
Tailored to Recipient
Possible Management-Sales
Force Conflict
Cost Is Often
Extremely High
Reach May Be
Very Limited
Public Relations
Personal
Selling
Direct Marketing
Sales Promotion
The Internet
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Involved in Community
Creates Goodwill
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Sales Volume
Sales Related
Activities
Margins
Quantitative
Measures
Selling Skills
Customer Service
Selling Expenses
Customer
Accounts
Sales Calls
Selling Skills
Chapter XIX
Measuring the Effectiveness of the
Promotional Program
Cost of Measurement
Increase
Increase Efficiency
Efficiency of
ofAdvertising
Advertising
in
in General
General (e.g., Avoid too
Disagreement
AboutWhat
Whattoto
Disagreement About
Test
Test Increase in Sales Volume or
(e.g.,
creative/sophisticated Ads)
Determine
Determine If
If Objectives
Objectives Are
Are
Achieved
Achieved
Where
Whereto
totest
test
Source
Source
factors
factors
(Spokesperson)
Message
Message
variables
variables
Media
Media
strategies
strategies
(Broadcast
Versus
Print Media)
Budget
decisions
Budget decisions
Laboratory
tests
Laboratory
tests
(People are
brought
totests
a location & tests are
Field
implemented e.g., eye tracking,
Galvanometer)
Field tests (e.g., survey studies)
How to test
When to test
Testing guidelines
Appropriate tests [e.g.,
Pretesting
Pretesting
Posttesting
Posttesting
Pretesting Methods
Laboratory
Consumer
Consumer Juries
Juries
Portfolio Tests (Respondents are exposed to a
Portfolio Tests
Concept
Tests
a potential ad)
Reliability
Tests (Determining how
Reliability Tests
trustworthy the ad campaign is?)
Comprehension
Comprehensionand
andReaction
ReactionTests
(e.g., personal interviews/surveys to
Tests
measure respondents comprehension of
the ad)
Field
Dummy
DummyAd
AdVehicles
Vehicles(e.g., An ad is
placed in dummy magazines
developed by an agency or research
firm. Recall, readership & interest of
the ads are assessed)
Association
(e.g., what product this ad
Measures
is associated with)
Methods
Recognition Tests
Single-Source
Systems:
Single-Source
Recognition Tests
Ad.)
Systems
Inquiry Tests (inquiries
generated from Ads
Inquiry
Tests
appearing in various
print media)
2.Rough Testing
Occurs at Various
Stages
Concept Testing
Objective
Method
Output
Disadvantages
Control
Cost Effectiveness
Endorsements by Independent
Third Parties
Achievement of Credibility
Terms
Photomatic Rough
Live-action Rough
Based
100 Words
Basedon
onSyllables
Syllables(Sketch)
Per 100 Per
Words
Readability Tests
Other Factors Also Considered
Dummy Advertising
Vehicles
On-Air Tests
Recognition Tests
Testing
Tracking Studies
Recall Tests
Diagnostics (these
Tracking Studies
Testing
Comprehensive
Comprehensive
Measures
Measures
Single-source Tracking
Test Marketing
measures
designed to
Diagnostics
obtain viewers evaluations
of the Ad. & how well it is
understood)
Establish
Communications
Objectives
Testing
Understand and
Implement Proper
Research
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Use Multiple
Measures
Chapter XX
International Advertising and
Promotion
Cultural
Environment
International
Marketing
And
Promotional
Decisions
Demographic
Environment
Political/Legal
Environment
Localizing Ad Messages
Differences in Cultural
Use of Pattern
Advertising
Differences in Market
Conditions
Organization
Coordination of Other
IMC Tools
Agency Selection
Decision Areas
Advertising and Market
Research
Media Selection
Creative Decisions
Centralization of International
Advertising
Budgeting
Media
Strategy
Agency
Selection
Central Authority
Campaign
Development
Creative
Strategy
Research
Region
One
Creative
Media
Research
Budgets
Campaigns
Central
Authority
Region
Two
Creative
Media
Research
Budgets
Campaigns
Region
Three
Creative
Media
Research
Budgets
Creative Decisions
Creative Decisions Should Be Based on Advertising and Communication
Objectives
Restrictions
Availability
Cost
Availability
Reliability
Circulation
Audience
Cost
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Media Information
Problems
Major Creation
Considerations
Economic Development
Market Maturity
Consumer Perceptions
Trade Structure [Wholesaling, Retailing (e.g., strengths
Trade
Structure
& Strategic locations), Government involvements, policies]
Regulations
Serve As Part of the IMC Program and Help Market the Product or Service
Deal With Specific Issues and Problems the Company May Face in Foreign
Markets