© 2000 South-Western College Publishing 1 CHAPTER SIXTEEN ADVERTISING, SALES PROMOTION AND PUBLIC...
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Transcript of © 2000 South-Western College Publishing 1 CHAPTER SIXTEEN ADVERTISING, SALES PROMOTION AND PUBLIC...
© 2000 South-Western College Publishing
1
CHAPTER SIXTEEN
ADVERTISING, SALES PROMOTION AND
PUBLIC RELATIONS
Prepared by Jack Gifford
Miami University (Ohio)
© 2000 South-Western College Publishing
2
ADVERTISING AND THE CONSUMER
Advertising affects everyone’s lives and influences many purchases.
Consumers turn to advertising for its informativeness as well as its entertainment value
The average American watches 72 minutes of commercials on TV per day
© 2000 South-Western College Publishing
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ADVERTISING AND BRAND LOYALTY
Consumers with a high degree of brand loyalty are least susceptible to the influence of advertising for competing goods and services.
Advertising also reinforces positive attitudes toward brands
© 2000 South-Western College Publishing
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ADVERTISING AND PRODUCT ATTRIBUTES
Advertising can affect the way consumers rank a brand’s attributes, such as color, taste, smell, and texture
Advertising can also influence the order in which these attitudes are valued and the relative magnitude of the attribute importance
© 2000 South-Western College Publishing
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MAJOR TYPES OF ADVERTISING
Institutional
advertising
Product
advertising
Promotes the corporation as a whole
Designed to influence corporate identity
Is not usually action-oriented
Promotes good corporate citizenship
May take the form of advocacy advertisements of controversial issues
© 2000 South-Western College Publishing
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MAJOR TYPES OF ADVERTISING
Institutional
advertising
Product
advertising
Promotes the benefits of a specific good or service
Usually immediate action-oriented
Includes pioneering, competitive and comparative advertising
© 2000 South-Western College Publishing
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MAJOR TYPES OF ADVERTISING: PRODUCT ADVERTISING (CONTINUED)
Pioneering advertising Stimulate primary
demand for a new product
First stage of the product life cycle
Generate attention and interest
Primarily informational
Competitive advertising Used during growth stage
of product life cycle Promote brand preference Persuade and remind
Comparative advertising Must not make false or
misleading statements (FTC)
Legality and strength of message is different around the globe
© 2000 South-Western College Publishing
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CREATING AN ADVERTISING CAMPAIGN
Is a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals
Is related to a specific product or service and runs for a defined period of time
DETERMINE CAMPAIGN
OBJECTIVES
MAKE CREATIVE AND MEDIA DECISIONS
EVALUATE THE CAMPAIGN
© 2000 South-Western College Publishing
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MAJOR TYPES OF ADVERTISING: PRODUCT ADVERTISING (CONTINUED)
Pioneering advertising Stimulate primary
demand for a new product
First stage of the product life cycle
Generate attention and interest
Primarily informational
Competitive advertising Used during growth stage
of product life cycle Promote brand preference Persuade and remind
Comparative advertising Must not make false or
misleading statements (FTC)
Legality and strength of message is different around the globe
© 2000 South-Western College Publishing
10
CREATING AN ADVERTISING CAMPAIGN
Is a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals
Is related to a specific product or service and runs for a defined period of time
DETERMINE CAMPAIGN
OBJECTIVES
MAKE CREATIVE AND MEDIA DECISIONS
EVALUATE THE CAMPAIGN
© 2000 South-Western College Publishing
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CREATING AN ADVERTISING CAMPAIGN
DETERMINE CAMPAIGN
OBJECTIVES
MAKE CREATIVE AND MEDIA DECISIONS
EVALUATE THE CAMPAIGN
Identify specific communication task
Identify specific target market(s)
Define period, desired outcomes, and how these outcomes will be measured
DAGMAR = Define Advertising Goals for Measured Advertising Results
© 2000 South-Western College Publishing
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CREATING AN ADVERTISING CAMPAIGN
DETERMINE CAMPAIGN
OBJECTIVES
MAKE CREATIVE AND MEDIA DECISIONS
EVALUATE THE CAMPAIGN
Creative and media decision must work together
Identify product benefits; “People buy holes, not drills”
Give the customer a reason to buy your product
Create a unique selling position
© 2000 South-Western College Publishing
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CREATING AN ADVERTISING CAMPAIGN
DETERMINE CAMPAIGN
OBJECTIVES
MAKE CREATIVE AND MEDIA DECISIONS
EVALUATE THE CAMPAIGN
Execute the message & media AIDA: Attention,
Interest, Desire, Action
Select one or more execution styles listed on the following “page”
© 2000 South-Western College Publishing
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EXECUTIONAL STYLES FOR ADVERTISING
Slice-of-lifeLifestyleSpokesperson /
testimonialFantasyHumorousReal / animated
product symbols
Mood or imageDemonstrationMusicalScientific Different combinations of
the above are effective in different parts of the world
© 2000 South-Western College Publishing
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MAKING MEDIA DECISIONS
0 10 20 30 40 50
Magazines
Newspapers
Outdoor media
Television
Radio
Yellow pages
Internet
National Spending in 1997
© 2000 South-Western College Publishing
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MAKING MEDIA DECISIONS: MEDIA TYPES
Newspapers (20.6%) Geographical flexibility Timelines Often a local media High use of horizontal and
vertical cooperative advertising
Short lead time required Short-term advertiser
commitments Year-round readership
© 2000 South-Western College Publishing
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MAKING MEDIA DECISIONS: MEDIA TYPES
Magazines (16.2%) Good reproduction Demographic and regional
selectivity Relatively long advertising
life High pass along rate Cost per contact is relatively
high
© 2000 South-Western College Publishing
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MAKING MEDIA DECISIONS: MEDIA TYPES
Radio (3.0%) Selectivity and audience
segmentation Low cost per contact Short life of message Portable media/drive-time
audience Making a comeback in
popularity
© 2000 South-Western College Publishing
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MAKING MEDIA DECISIONS: MEDIA TYPES
Television (45.0%) Reach wide, diverse
audience Low cost per thousand Creative opportunities and
flexibility (video & audio) Immediacy of message Entertainment carryover Demographic selectivity
with cable Infomercials
© 2000 South-Western College Publishing
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MAKING MEDIA DECISIONS: MEDIA TYPES
Outdoor media (1.7%) Billboards, transit signs,
Signs in sports centers, etc. Flexible, low-cost,
geographic selectivity High exposure frequency Growing in popularity and
innovativeness
© 2000 South-Western College Publishing
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MAKING MEDIA DECISIONS: MEDIA TYPES Internet and the World Wide
Web Huge growth Widely used search engines Used for business-to-business
marketing 10:1 today Many new innovations and
technologies Entrepreneurial opportunities
Alternative media: CD-ROM, kiosks, movies
http://www.amazon.com
© 2000 South-Western College Publishing
22
MEDIA SELECTION AND SCHEDULING CONSIDERATIONS
Media selection considerations Cost per contact Reach and frequency Audience selectivity
Media scheduling Continuous media
schedule Flighted vs pulsing
media scheduling Seasonal media
scheduling
© 2000 South-Western College Publishing
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EVALUATION OF THE ADVERTISING CAMPAIGN
Measuring outcomes against goals and objectives
Pre and post campaign analysisDifficulties in measurement Interaction and effect over timeCumulative impact Imperfect measurement tools
© 2000 South-Western College Publishing
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SALES PROMOTIONS
Sales Promotions are marketing communication activities, other than advertising, personal selling and public relations, in which a short-term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or adding value.
•Contests and sweepstakes
•Coupons and rebates
•Sampling
•Fashion shows
•Entertainment
•Premiums
•Special incentives, like trips, free goods, etc.
•Loyalty programs
© 2000 South-Western College Publishing
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SALES PROMOTIONS: OBJECTIVES AND AUDIENCES
Objectives Stimulate immediate
action Modify behavior and
increase loyalty Reward performance Reinforce existing
behavior Stimulate repeat
purchases
Audiences Consumer sales
promotions (the ultimate consumer market)
Trade sales promotions (members of the marketing channel, such as wholesalers or retailers)
Tools include...
© 2000 South-Western College Publishing
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TRADE SALES PROMOTIONS INCLUDE...
Trade allowances Push money Training Free merchandise Store demonstrations Business meetings,
conventions, and trade shows
Special prizes for performance
One week vacation for top salesperson and family to Disney World
© 2000 South-Western College Publishing
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PUBLIC RELATIONS
Evaluates public attitudes of stakeholders Identifies issues that may elicit public
concernExecutes programs to…
Gain public acceptanceChange public perceptions Counter negative events
© 2000 South-Western College Publishing
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SALES PROMOTIONS TARGETED AT WHOLESALERS AND RETAILERS
Major Forms: Trade shows
International, national or regional
Acts as a marketplace for intermediaries
Usually category specific (boats, men’s apparel, electronics, etc.)
© 2000 South-Western College Publishing
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SALES PROMOTIONS TARGETED AT WHOLESALERS AND RETAILERS
Major Forms: Trade shows Contests
Motivate sales force Increase sales levels Generate excitement
and extra earning opportunities
Persuade sales people to push your line over other similar lines
© 2000 South-Western College Publishing
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SALES PROMOTIONS TARGETED AT WHOLESALERS AND RETAILERS
Major Forms: Trade shows Contests Point-of-purchase
displays
Capture prime locations within store
Acts as a silent salesperson
Stimulate Attention Interest Desire Action
© 2000 South-Western College Publishing
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SALES PROMOTIONS TARGETED AT WHOLESALERS AND RETAILERS
Major Forms: Trade shows Contests Point-of-purchase
displays Cooperative
advertising and promotional programs
Share cost of promotional activities Vertical cooperative
advertising (M-W-,M-R,W-R)
Horizontal cooperative advertising (R-R,W-W, M-M)
© 2000 South-Western College Publishing
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SALES PROMOTIONS TARGETED AT WHOLESALERS AND RETAILERS
Major Forms: Trade shows Contests Point-of-purchase
displays Cooperative
advertising and promotional programs
Allowances
Price reductions Rebates Free Goods Demonstration products
© 2000 South-Western College Publishing
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SALES PROMOTIONS TARGETED AT ULTIMATE CONSUMERS
Product sampling Cents-off coupons Rebates Contests & sweepstakes Premiums Multi-purchase offers Point-of-purchase
materials Product placements
Reach new customers by inducing trial use New products New brands Sample size
Distributed to… Homes Retail settings Wherever people are
gathered
© 2000 South-Western College Publishing
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SALES PROMOTIONS TARGETED AT ULTIMATE CONSUMERS
Product sampling Cents-off coupons
Increase short-term sales
Attract new users Stimulate heavier
usage Encourage brand
switching Distributed in-store,
by mail, and via the Internet
© 2000 South-Western College Publishing
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SALES PROMOTIONS TARGETED AT ULTIMATE CONSUMERS
Product sampling Cents-off coupons Rebates
Money back from the manufacturer
Encourage multiple purchases (3 box tops)
Low cost of distribution (on package)
© 2000 South-Western College Publishing
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SALES PROMOTIONS TARGETED AT ULTIMATE CONSUMERS
Product sampling Cents-off coupons Rebates Contests & sweepstakes
Become winners based upon chance
Heavily regulated Encourage repeat
purchases to increase chance of winning
© 2000 South-Western College Publishing
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SALES PROMOTIONS TARGETED AT ULTIMATE CONSUMERS
Product sampling Cents-off coupons Rebates Contests & sweepstakes Premiums
Free or at a reduced price if another product, the key brand, is purchased Collect a set of glasses Frequent Flyer
Programs Brand loyalty programs
© 2000 South-Western College Publishing
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SALES PROMOTIONS TARGETED AT ULTIMATE CONSUMERS
Product sampling Cents-off coupons Rebates Contests & sweepstakes Premiums Multi-purchase offers
Two-for-one deals Encourages bigger
than normal purchases
Helps maintain customer loyalty
© 2000 South-Western College Publishing
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SALES PROMOTIONS TARGETED AT ULTIMATE CONSUMERS
Product sampling Cents-off coupons Rebates Contests & sweepstakes Premiums Multi-purchase offers Point-of-purchase
materials(POP)
Banners, pamphlets, coasters, napkins, matches
In-store videos Shopping cart
“billboards”
© 2000 South-Western College Publishing
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SALES PROMOTIONS TARGETED AT ULTIMATE CONSUMERS
Product sampling Cents-off coupons Rebates Contests & sweepstakes Premiums Multi-purchase offers Point-of-purchase
materials Product placements
Product or company that appears within a movie or TV show
© 2000 South-Western College Publishing
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PUBLIC RELATIONS AND PUBLICITY
Public Relations is the managerial activity that identifies, establishes, and maintains beneficial relationships between a company and its many stakeholders
Publicity is one means of accomplishing public relations Involves a third party Is free Limited control over content
© 2000 South-Western College Publishing
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PUBLICITY
News Releases Press conferences Staged newsworthy
events Photo opportunities
Armed forces air shows to generate recruits and
positive public support
© 2000 South-Western College Publishing
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PUBLICITY
Written news releases and videos provided to media
Appearances of spokespersons
Participation on talk shows
Provision of apparel for famous people
© 2000 South-Western College Publishing
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PUBLICITY
Event Sponsorship Sporting events and
charity causes Provide financial
resources, equipment, personal services and/or facilities
Positive image through association ©Speedo Invitational Swim
Meet
© 2000 South-Western College Publishing
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PUBLIC RELATIONS AND CRISIS MANAGEMENT
PR effort that urgently requires dissemination of information about an emergency Product recall Takeover rumors Corporate accidents (fires,
environmental accidents, etc.)