Advertising and Sales Promotion DSBS 2013-15
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Transcript of Advertising and Sales Promotion DSBS 2013-15
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ADVERTISING & SALESPROMOTION
PGDM II year DSBS 2013-15
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Only the brave or ignorant can say
exactly what advertising does in themarket place
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Is your Advertising getting results? It sure
is! Last week we advertised for a night-watchman and the next night we were
robbed
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Session-I
Introduction to
Advertising
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Marketing Defined
Marketing is a societal process, by which individuals and
groups obtain what they need and want through creating,
offering, and freely exchanging products and services of value
with others.
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Marketing Mix
Product
Price
Promotion
Place
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Promotional Mix
Sales promotion
Advertising
Sales force
Public relations, Publicity Direct mail, Telemarketing and Internet
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Promotion
The coordination of all seller-initiated efforts to set up
channels of information and persuasion in order to sell goods
and services or promote an idea.
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Elements of Promotional Mix
PromotionalMix
Advertising
Direct
Marketing
Sales
Promotion
Publicity /PR
Personal
Selling
Interactive /Internet
Marketing
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Concept and Definition of Advertisement
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Advertising
Advertising is any paid form of non personal presentation and
promotion of ideas, goods, or services by an identified
sponsor.
52 possible ad objectives (Russell Colley)
Major objectives are: Inform, Persuade or Remind
Art of telling and selling
Can be given at three periodsBefore need arises
By the time of the need
After the need arises
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Paid Aspect
The space or time for an advertising message generally must
be bought. In case of Public Service Announcements (PSA)
whose advertising space or time is donated by the media.
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Non Personal Aspect
Non personal component means that advertising involves
mass media. (e.g. TV, radio, magazines, newspapers) that can
transmit a message to large groups of individuals, often at the
same time.
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Introduction to Advertisement
The activity of attracting public attention to a product orbusiness, as by paid announcements in the print,broadcast, or electronic media.
Paid form of a non personal message communicatedthrough the various media by industry, business firms,nonprofit organizations, or individuals. Advertising ispersuasive and informational and is designed to influencethe purchasing behavior and/or thought patterns of theaudience. Advertising is a marketing tool and may beused in combination with other marketing tools, such assales promotions, personal selling tactics, or publicity.
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What is Advertising?
Three criteria must be met for a communication to beclassified as advertising:
The communication must be paid for.
The communication must be delivered through mass media.
The communication must be
attempting to persuade.
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5 Ms of Advertising
Mission
Money
Message
Media Measurement
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Advertising characteristics
Paid form
About ideas, goods or services
Maximum control over the message
Inform and persuade Has its selected market
Less credible
Subjective
Product brand related message
Non personal communication
By an identified sponsor
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Forms of Advertisements
Advocacy
Comparative
Cooperative
Direct-mail
Informational
Institutional
Outdoor
Persuasive
Product
Reminder
Point-of-purchase
Specialty advertising.
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Classification of Advertising
For whom (target audience- Industrial, Consumer)
Geographic coverage (local, regional, national, international)
Media used (print, electronic, direct mail, outdoor)
Aim(financial, demand, social messages, direct action)
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Audience Geography
Global
International
NationalRegional
Local
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Audiences for Advertising
Household Consumers
Business Organizations
The Trade Channel
Professionals Government
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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
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Session II
Social, Ethical & Legal
Aspects
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Social Implications of Advertising
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Social aspects of advertising
Consumerism
Consumer culture
Consumer awareness
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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.
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Consumer culture
Improves the culture of the consumers
The growth of consumer culture diverted the purchasing
power of middle class people towards the purchase of
products like TV, refrigerator, air cooler, cellular phone, etc
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Consumer awareness
There are more than 20 legislative enactments in India to
protect the rights of the consumers
The ad should help to protect the rights of the consumers
Education and media played a significant role to create
awareness among consumers
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Economic Implications of Advertising
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Role of advertising in Economy
All that ad has to do is to sell a product or service
Ads do the sales job better
Performs economic function by being an art of persuasion
Ads create wide markets
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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
Effects of advertising on quality
Stimulates product improvement
Effects of advertising on investment and the level of national
income
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Ethical & Legal Implications of Advertising
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Code of Advertising Ethics in India
Advertising shall be designed as to confirm to the laws of the
country and should not offend against morality, decency and
religious susceptibilities of the people.
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General rules of conduct in advertising
Derides any race, caste, color, creed and nationality; Is against any of the directive principles, or any other provision
of the Constitution of India;
Tends to incite people to crime, cause disorder or violence, or
breach of law or glorifies violence or obscenity in any way; Presents criminality as desirable;
Adversely affects friendly relations with foreign States;
Exploits the national emblem, or any part of the constitution
or the person or personality of a national leader or StateDignitary;
Relates to or promotes cigarettes and tobacco products, liquor,
wines and other intoxicants;
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General rules of conduct in advertising
No advertisements message shall in any way be
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
Central and State Government organisations, nationalised orrecognized banks and public sector undertakings;
Matrimonial agencies;
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General rules of conduct in advertising
Unlicensed employment services;
Fortune tellers or sooth-Sayers etc. and those
with claims of hypnotism;
Foreign goods and foreign banks.
Betting tips and guide books etc. relating to
horse-racing or the other games of chance.
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General rules of conduct in advertising
No advertisement shall contain references which are likely to
lead the public to infer that the product advertised or any
advertised or any of its ingredients has some special or
miraculous or super-natural property or quality, which is
difficult of being proved, e.g. cure for baldness, skin whitener,etc.
Advertisements shall not contain disparaging of derogatory
references to another product or service.
Testimonials must be genuine and used in a manner not tomislead the listeners. Advertisers or Advertising Agencies must
be prepared to produce evidence in support of their claims.
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General rules of conduct in advertising
No advertisement of any kind of jewellery (except artificialjewellery) or precious stones shall be accepted.
Information to consumers on matters of weight, quality orprices of products where given shall be accurate.
Advertisements indicating price comparisons or reductionsmust comply with relevant laws.
Advertisements for products specifically offered to womenshall not be advertised as products that are effective ininducing miscarriage.
Advertisements relating to claims about curing of sexualweakness, premature ageing, loss of virility, sexual excessesetc. shall not be accepted.
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General rules of conduct in advertising
There should be no exaggerated claims regarding the composition, character,
action and suitability of the purpose for which it is recommended.
When words such as college, clinic, institute and laboratory are used in
advertisements, such references can be made only when the said
establishment does actually exist.
The portrayal of the female form shall be aesthetic and within the well
established norms of good taste and decency.
Women must not be portrayed in derogatory light and in a manner that
emphasizes passive, submissive qualities and encourages them to play a
subordinate and secondary role in family and in society.
Scientific or statistical excerpts from technical literature etc. may be used
only with a proper sense of responsibility to the ordinary viewer.
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Rules and acts framed to maintain
standards in advertising Drugs and Cosmetics Act, 1940.
Drugs Control Act, 1950.
Drugs and Magic Remedies (Objectionable Advertisement) Act, 1954.
Copyright Act, 1957.
Trade and Merchandise Marks Act, 1958.
Prevention of Food Adulteration Act, 1954.
Pharmacy Act, 1948.
Prize Competition Act, 1955.
Emblems and Names (Prevention of Improper Use) Act, 1950.
Consumer Protection Act, 1986.
Indecent Representation of women (Prohibition) Act, 1986.
AIR / Doordarshan Code.
Code of Ethics for advertisement in India issued by the Advertising Council of India
Code of standards in relation to the advertising of medicines and treatments
Standards of practice for Advertising Agencies
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Ethics in advertising
Advertising should be in conformity with the laws of land
Advertisements should not be done against the cultural, religious and
aesthetic values of the people
It should not propagate hatred and defame the peace of the nation
It should not aim to exploit the illiteracy and superstition of the people togain benefits
Advertisements should disseminate factual information
Advertisement should not hide or divert facts (They can inform the
ingredients of the product and the need for using the product)
Misleading statements (visual or verbal) should be avoided Price, quality, procedure to procure, guarantee and warranty etc. should be
communicated with utmost care and prudence (cautiousness)
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Ethics in advertising
Comparisons which unfairly disparage (criticize) a competitive
product for service should be avoided
No advertisement should encourage or instigate the people to
practice illegal practices
Patent marks of other reputed concerns should not be used to
cheat the consumers
Obscene words / scenes in advertisements should be avoided
Without real intention, it should not be announced that
money will be returned if the purchaser is not satisfied with
the products
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Ethics in advertising
Apart from state advertisements, national symbols
and the photographs of national leaders should not
be used without getting prior permission from the
competent authorities concerned No advertising should canvass for pawn broking,
deposits for unregistered financial firms and
employment bureaus, bogus marriage brokerage,
astrology and magical skills.
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Legal issues of advertising
Article 19 (1) all citizens shall have the right to freedom of
speech & expression.
Article 19(1) a - restricts & prohibits the ads for drugs
Article 19(2)right to information and expression can be
resticted on the following grounds
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Legal issues of advertising
Security of the state
Friendly relations with foreign states
Public order
Decency of morality
Contempt of court
Defamation
Incitement (encouragement) of an offence
Sovereignty and integrity of India
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Legal issues of advertising
Obvious untruths and exaggeration
Advertisements should not depict children leaning
dangerously outside windows, over bridges or climbing
dangerous hills.
Advertisement should not show children using or playing with
matches or any inflammable or explosive substance
Viz. playing with knives, guns & electrical appliances
Advertisements shall not propagate products the use of which
is banned under law
Comparisons should be factual and accurate.
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Session IIIAdvertising Agency
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Advertising Agency
Advertising agency is defined as an organisation whose
business consists in acquisition as a principal of the right to use
space or time in advertising media and the administration on
behalf of the advertisers, of advertising appropriations made
by them.
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Tasks of an advertising agency
Copy writing
Art pictures & photographs
Media planning & buying of space
Radio & televisionproducing commercial spotsThe work of market research
Production film or tape for use
Public relations
Forwarding the advertising materials to the mediaowners and the clients in time
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Agency should require
Sales ability
Creative ability
Management ability
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Types of Advertising Agencies
Full Service Agencies
Creative Boutique
Interactive Agency
In-House Agency
Media-Buying Agency
Direct Marketing Agency
E-Commerce Agencies
Sales Promotion Agencies
Event-Planning Agencies
Design Firms
Public Relations Firms
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Full-service advertising agency
A full service agency typically includes an array of advertising
professionals to meet all the promotional needs of clients.
Full service agencies are not necessarily large organisations
employing hundreds or even thousands of people.
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Advantages of using a full service ad agency
In-depth knowledge and skills
Obtaining negotiating muscle with the media
Coordinating advertising and marketing efforts
Use services only when they are needed
Availability of high-caliber creative talent
Potential cost efficiencies
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Disadvantages of using a full service ad
agency
Some control is lost
Larger clients are favored over small clients
Occasionally inefficient in media buying
Specialists approach client problems in a stereotyped fashion
Lack of cost accountability
Financial instability of smaller boutiques
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Steps in selecting an advertising agency
The size of the agency.
The relevant experience of the agency.
Conflicts of interest.
Creative reputation and capabilities.Production capabilities.
Media purchasing capabilities.
Other services available.
Client retention rates.
Personal chemistry
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Steps in selecting an advertising agency
Identify and prioritize corporate goals.
Develop agency selection process and criteria.
Initially screen firms based on credentials, size, capabilities,
relevant experience and conflict of interests.
Request client references.
Do background check with other firms and media agents.
Request written and oral presentation.
Meet creatives, media buyers, account executives and otherpersonnel that will work with account.
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Capabilities of an ad agency
Marketing & media planning
Research & analysis
Advertising campaignslocal, regional & national
Creative concept / copywriting
Logo / corporate identity development
Graphic design & production
Direct marketing programs
Media placement Public relations / special event planning
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Ad agency Remuneration
Three methods used to compensate ad agencies
Commission
Negotiated fee
Percentage charges
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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
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Media Commissions
Media commission is an amount paid by the media to an
agency which has bought space or time for its clients
Generally 15% on the space sold by an agency
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Reasons for losing clients
The clients dissatisfaction with the agencys performance
with regard to advertising quality or service
Poor communication between the client and the agency
personnel hinders a good working relationship
Personality clashes between client and agency personnel
Unrealistic client demands, which reduce the accounts
profitability for the agency
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Reasons for losing clients
New managers in clients organisation may want to use an
agency with which they already have established ties.
Often when agencies merge, there is a conflict of interest as
two close competitors may be on the merged agencys
account list.
Changes in the clientsmarketing strategy may lead to change
of agency.
When the companyssales decline, the advertising agency is
viewed as unsuitable and the agency changed
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Reasons for losing clients
The client may insist upon adopting a compensation method
to which the agency disagrees
When some companies or agencies outgrow in size, either may
think the other unsuitable and sever the ties
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Session IVAdvertisement Media
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What media to use?
Media Planning and Types
What channel will be most effective to reach target market(s)
Depends heavily on promotional objectives
What is it the company wants to convey? Action of the product
itself? Credibility of company or service? Brand name?
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Major Types of Advertising Media
Newspapers
Magazines
Radio
Television
Outdoor Media
Internet
Alternative Media
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Considerations for selecting Media
The media mix decisions Cost per contact
Reach
Frequency
Target audience characteristics
Mediums flexibility
Noise level
Life span of medium
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Session V
Communication Process:Source, Message & Channel
factors
The Communications Process
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Attractive sources are appropriate for image-relatedd t
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products
+
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The Semiotic (symbols & signs) Perspective
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Object
Brand such as
Marlboro
Sign or symbol
representing intendedmeaning (Cowboy)
Interpretant/
intended meaning
(masculine,ruggedindividualistic)
Object
Brand such as
Marlboro
Sign or symbol
representing intendedmeaning (Cowboy)
( y g ) p
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Three Components to every marketing message
What is the symbolic meaning of the Snuggle bear?
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y g gg
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin +
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Forms of Personal Communication
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Grammar
Vocabulary
Inflection
FacialExpression
Gesture
Body Language
Vocabulary
Grammar
Inflection
(modulation)
Gesture
FacialExpression
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Verbal
Nonverbal
Communications Channels
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Personal ChannelsPersonal Channels
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
NonpersonalChannels
Personal Selling
Word of Mouth
Print
Media
Broadcast
Media
Experiential Overlap
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
ReceiverExperience
SenderExperience
Different Worlds
ReceiverExperienceSender
Experience
Moderate Commonality
ReceiverExperience
SenderExperience
High Commonality
ReceiverExperience
Levels of Audience Aggregation
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Mass Markets
Market Segments
Niche Markets
Small Groups
Individuals
Niche Markets
Market Segments
Mass Markets
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Small Groups
Models of the Response Process
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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Models of Obtaining Feedback
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Exposure, Presentation
Attention
Comprehension
Message Acceptance/Yielding
Retention
Purchase Behavior
Circulation Reach
Listener, Reader,Viewer Recognition
Recall, Checklists
Brand Attitudes,Purchase Intent
Recall Over Time
Inventory, POPConsumer Panel
RetentionRecall Over Time
Message Acceptance/Yielding
Brand Attitudes,Purchase Intent
ComprehensionRecall, Checklists
AttentionListener, Reader,Viewer Recognition
Exposure, PresentationCirculation Reach
Effectiveness Test Persuasion Process
Alternative Response Hierarchies
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
High Low
H
igh
Low
Topical Involvement
Perceiv
edproduct
differentiation
Learning Model Low Involvement
Model
Dissonance/
Attribution Model
Cognitive
AffectiveConative
Conative
Affective
Cognitive
Cognitive
Conative
Affective
Clever Ads Encourage LowInvolvement Learning
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Involvement Learning
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin + Computers are high-involvement,highly differentiated products
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highly differentiated products
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin + Cognitive Response
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
A method for examining consumers cognitiveprocessing of advertising messages by looking at
their cognitive responses to hearing, viewing, or
reading communications.
Examines types of thoughts that are evoked by anadvertising message.
Consumers write down or verbally report theirreactions to a message.
A Model of Cognitive Response
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Cognitive Response Categories
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Counter Arguments Support Arguments
Source Derogation Source Bolstering
Thoughts About
the Ad Itself
Thoughts About
the Ad Itself
Source BolsteringSource Derogation
Support ArgumentsCounter Arguments
Affect Attitude
Toward the Ad
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Product/Message Thoughts
Source - Oriented Thoughts
AdExecution Thoughts
Elaboration Likelihood Model
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Focuses on the way consumers respond to persuasive
messages based on the amount and nature of elaborationor processing of information
Peripheral route topersuasionabilityand motivation to
process a message is
low and receiverfocuses more on
peripheral cues ratherthan message content
Central route topersuasionabilityand motivation to
process a message is
high and closeattention is paid tomessage content
Routes to attitude change
Celebrity Endorsers Can Be Peripheral Cues
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin + How Advertising Works
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Advertising Input
Message content, mediascheduling, repetition
Filters
Motivation, ability,
(involvement)
Consumer
Cognition, Affect, Experience
Consumer Behavior
Choice, consumption,
loyalty, habit, etc.
Advertising Input
Message content, mediascheduling, repetition
Filters
Motivation, ability,
(involvement)
Consumer
Cognition, Affect, Experience
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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Session VI Case Study
Dove: Campaigning for Real Beauty
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Session VII
Establishing Objectives and Budgeting
Promotional Programs
Value of Objectives
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Focus &
Coordination
Plans &
Decisions
Measurement
& Control
Plans &
Decisions
Focus &
Coordination
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Objectives
Characteristics of Objectives
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Attainable
Measurable
Specific
Realistic
Specific
Measurable
Attainable
Realistic
Not Mutually
Exclusive
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Objectives
Advertising Can Shape Corporate Images
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
+
Marketing Versus Communications Objectives
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Vs.
Marketing Objectives
Generally stated in thefirms marketing plan
Achieved through theoverall marketing plan
Quantifiable, such assales, market share, ROI
To be accomplished in agiven period of time
Must be realistic andattainable to be effective
Marketing Objectives
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Communications
Objectives
Derived from the overallmarketing plan
More narrow thanmarketing objectives
Based on particularcommunications tasks
Designed to deliverappropriate messages
Focused on a specifictarget audience
Many Different Factors Affect Sales
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The
EconomyDistribution Technology Price Policy
Promotion CompetitionProduct
Quality
Price PolicyTechnologyDistribution
Product
QualityCompetitionPromotion
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
$ALE$
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Direct Response Ads Seek Sales
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
+
Many Ads Seek Communications Objectives
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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Advertising and Movement Toward Action
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Teaser campaigns
AffectiveRealm of emotions.
Ads change attitudes and
feelings
CognitiveRealm of thoughts.
Ads provide information
and facts.
ConativeRealm of motives.Ads stimulate or direct
desires.
Image copyStatus, glamour appeals
AnnouncementsDescriptive copyClassified adsSlogans, jingles, skywriting
Competitive ads
Argumentative copy
Point of purchase
Retail store ads, DealsLast-chance offersPrice appeals, Testimonials
Purchase
Conviction
Preference
Liking
Knowledge
Awareness
Image Ads Can Have a StrongEffect on Preference
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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The DAGMAR Approach
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
DefineAdvertising
Goals forMeasuring
Advertising
Results
DAGMAR Difficulties
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Attitude - Behavior
Relationship
Response Hierarchy
Problems
Response Hierarchy
Problems
Attitude - Behavior
Relationship
Sales Objectives
NeededInhibits CreativityCostly and Impractical
Sales Objectives
NeededCostly and Impractical
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Legitimate Problems
Questionable Objections
Advertising-Based View of Communications
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Advertising Through Media
Acting on Consumers
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Balancing Objectives and Budgets
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Dollars Goals
What were
willing and able
to spend
What we need to
achieve our
objectives
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BASIC Principle of Marginal Analysis
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Increase Spending
Decrease Spending
HoldSpending
If the increased cost is less than theincremental (marginal) return
If the increased cost is equal to theincremental (marginal) return.
If the increased cost is more than theincremental (marginal) return
Assumptions for Marginal Analysis
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Sales are the
principal objectiveof advertising andpromotion
Sales are the result of
advertising and
promotion, and
nothing else
Advertising Sales/Response Functions
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Incr
ementalSales
Advertising Expenditures
A. Concave-
DownwardResponse Curve
Incr
ementalSales
Advertising Expenditures
Range A Range B Range C
B. S-Shaped
ResponseFunction
Hig
hSpending
LittleEffect
Init
ialSpending
Litt
leEffect
MiddleLevel
Hig
hEffect
Top-Down Budgeting
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The Promotion Budget Is Set to Stay Within the Spending
Limit
Top Management Sets the Spending LimitTop Management Sets the Spending Limit
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Top-Down Budgeting Methods
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Affordable
Method
Affordable
Method
Competitive
Parity
Percentage
of Sales
Return on
Investment
Arbitrary
Allocation
Percentage
of Sales
Competitive
Parity
Arbitrary
Allocation
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Top
Management
Bottom-Up Budgeting
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Total Budget Is Approved by
Top Management
Cost of Activities are Budgeted
Activities to Achieve ObjectivesAre Planned
Promotional Objectives Are Set
Cost of Activities are Budgeted
Activities to Achieve ObjectivesAre Planned
Promotional Objectives Are Set
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Objective and Task Method
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Estimate Costs Associated with Tasks
(determine costs of advertising, promotions, etc)
Determine Specific Tasks(advertise on market area television and radio and
local newspapers)
Establish Objectives(create awareness of new product among 20 percentof target market)
Determine Specific Tasks(advertise on market area television and radio and
local newspapers)
Establish Objectives(create awareness of new product among 20 percentof target market)
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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Ad Spending and Share of Voice
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Decreasefind a
Defensible NicheIncrease to Defend
Attack With Large SOV
Premium
Maintain Modest
Spending PremiumCompetitors
ShareofV
oice
High
Low
HighLow
Your Share of Market
Session VIII
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Creative Strategy : Planning & Development
Advertising Creativity
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Determining whatthe advertising
message will say or communicate
Determining whatthe advertising
message will say or communicate
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Creative
Strategy
Creative
Tactics
Determining howthe messagestrategy will be executed
The Ideal Power Idea Should . . .
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Let Prospects Vividly Experience the Goods
Allow You to Brand the Advertising
Revolve Around the Clinching Benefit
Be Likely to Attract the Prospects Attention
Be Describable in a Simple Word or Phrase
Allow You to Brand the Advertising
Revolve Around the Clinching Benefit
Be Likely to Attract the Prospects Attention
Be Describable in a Simple Word or Phrase
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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Young's Creative Process
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Getting Raw Material, Data, Immersing One'sSelf in the Problem to Get the Background.
Immersion
Ruminating on the Data Acquired, Turning ItThis Way and That in the Mind.
Digestion
Ceasing Analysis and Putting the Problem Outof Conscious Mind fora Time.
Incubation
A Sudden Inspiration or Intuitive RevelationAbout a Potential Solution.
Illumination
Studying the Idea, Evaluating It, and DevelopingIt for Practical Usefulness.
Verification
Getting Raw Material, Data, Immersing One'sSelf in the Problem to Get the Background.
Immersion
Ruminating on the Data Acquired, Turning ItThis Way and That in the Mind.
Digestion
Ceasing Analysis and Putting the Problem Outof Conscious Mind fora Time.
Incubation
A Sudden Inspiration or Intuitive RevelationAbout a Potential Solution.
Illumination
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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Getting Creative Input
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Read anything related
to the product or
market!
Listen to what people
are talking about!
Use the product to
become familiar with
it!
Ask everyone involved
for information!Work in and learnabout the clients
business!
Ask everyone involved
for information!
Listen to what people
are talking about!
Use the product to
become familiar with
it!Read anything related
to the product or
market!
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Verification and Revision of Ideas
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Evaluate Ideas Generated
Reject Inappropriate Ideas
Refine Remaining Ideas
Give Them Final Expression
Directed Focus Groups
Message Communication Studies
Portfolio Tests
Viewer Reaction Profiles
Portfolio Tests
Message Communication Studies
Directed Focus Groups
Give Them Final Expression
Refine Remaining Ideas
Reject Inappropriate Ideas
Evaluate Ideas Generated
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Objective
Techniques
The 10 greatest ad slogans of all time
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
1. De Beers Diamonds are forever2. Nike Just do it!
3. Coca Cola The pause that refreshes
4. Miller Lite Tastes great, less filling
5. Avis We try harder
6. Maxwell House Good to the last drop
7. Wheaties Breakfast of champions
8. Clairol Does she . . . or doesnt she?
9. Morton Salt When it rains it pours
10. Wendys Wheres the beef?
Company or Brand Campaign Theme
BMWs Slogan Has Helped Build Its Brand Image
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
+
An Advertising Campaign
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Integrated
Interrelated Coordinated
In Different Media Over a Time Period
Integrated
Interrelated Coordinated
In Different Media
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Marketing
Communication Activities
Centered on a Theme orIdea
Advertising Campaign Themes
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The Ultimate Driving
Machine
BMW
At a place called
Miller time
Miller
Lite
Like a Rock
Chevy
TrucksBMW
Miller
Lite
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The central message that will be communicatedin all of the various IMC activities
Successful Long-Running Campaigns
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Nike Just do it
Allstate Insurance Youre in good hands with Allstate
Hallmark cards When you care enough to send
the very best
Budweiser This Buds for you
Intel Intel inside
State Farm Insurance Like a good neighbor,
State Farm is there
Chevy Trucks Like a rock
Dial soap Arent you glad you use Dial?
Company or Brand Campaign Theme
This ad is part of a new advertising campaign theme forMiller Lite beer
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
+
Building a Copy Platform Outline
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6. Supporting Information and Requirements
5. Creative Strategy Statement
4. Selling Idea or Key Benefits to Communicate
3. Specify Target Audience
2. Advertising and Communications Objectives
1. Basic Problem Advertising Must Address
5. Creative Strategy Statement
4. Selling Idea or Key Benefits to Communicate
3. Specify Target Audience
2. Advertising and Communications Objectives
1. Basic Problem Advertising Must Address
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Major Selling Ideas
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Positioning the BrandUse a Unique
Selling Position
Create the Brand ImagePositioning Find the Inherent Drama
Create a Brand ImageUse a Unique
Selling Position
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Seeking the Major Idea
Approaches to the Major Selling Idea: USP
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Buy this
produce and
you'll benefit
this way orenjoy this
reward
Must be unique
to this brand or
claim; something
rivals can't ordon't offer
UniqueBenefit UniqueBenefit
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Unique Selling Proposition
The promise
must be strong
enough or
attractiveenough to move
people
Potent
Perspectives of Great Ad Men on the Major SellingIdea
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Brand image or personality is
particularly important when
brands are similar
Every ad must contribute
to the complex symbol
that is the brand image.
Brand image or personality is
particularly important when
brands are similar
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
David Ogilvy
Find the inherent drama or
characteristic of the product that
makes consumers buy it
(Inherent drama) is often
hard to find but it is always
there, and once found it isthe most interesting and
believable of all
advertising appeals.
Leo Burnett
Creating a Brand Image
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Often used for products such as soft drinks, perfume,
liquor, clothing, airlines
The creativity sales strategy is based on a strong,
memorable brand identity through image advertising
Used when competing brands are so similar it is
difficult to find or create a unique attribute
The creativity sales strategy is based on a strong,
memorable brand identity through image advertising
Used when competing brands are so similar it is
difficult to find or create a unique attribute
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Approaches to the Major Selling Idea:Inherent Drama
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Inherent DramaMessages generally presented in a warm,
emotional way Hallmark, Maytag, Kellog
Focus on consumer benefits with an emphasis
on the dramatic element in expressing them
Messages generally presented in a warm,
emotional way Hallmark, Maytag, Kellog
Approaches to the Major Selling Idea:Positioning
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Establish a particular place in the customers
mind for the product or service
Establish a particular place in the customers
mind for the product or service
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Positioning
Based on product attributes/ benefits,
price/quality, use or application, type of user,
problem solved
This Ad Positions 3M as Highly Innovative
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
+
Session IX
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Session IX
Creative Strategy:Implementation and Evaluation
Appeals and Execution Style
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To influence consumer feelings towarda product,service or cause
To influence consumer feelings towarda product,service or cause
The approach used to attract the
attention of consumers
The way an appeal is turned into an
advertising message
The way the message is presented tothe consumer
The approach used to attract the
attention of consumers
The way an appeal is turned into an
advertising message
Advertising
Appeals
Execution
Style
Types of Rational Appeals
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Popularity: Stresses the brands popularity
News: News announcement about the product
Price: Makes price offer the dominant point
Competitive: Makes comparisons to other brands
Feature: Focus on dominant traits of the product
News: News announcement about the product
Price: Makes price offer the dominant point
Competitive: Makes comparisons to other brands
Feature: Focus on dominant traits of the product
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
A Rational, Popularity Appeal
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
+
Appealing to Personal States or Feelings
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Achievement Accomplishment
Actualization AffectionAmbition Arousal
Stimulation Comfort
Excitement Fear
Grief Happiness
Joy Love
Nostalgia Pleasure
Pride SafetySecurity Self-esteem
Sentiment Sorrow
Achievement Accomplishment
Actualization AffectionAmbition Arousal
Stimulation Comfort
Excitement Fear
Grief Happiness
Joy Love
Nostalgia Pleasure
Pride SafetySecurity Self-esteem
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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Transformational Ads
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Richer
MoreExciting
Warmer
Feelings
Meanings
Images
Beliefs
MoreExciting
WarmerRicher
Beliefs
Images
Meanings
Feelings
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
MoreEnjoyable
It must make the
product useexperience . . .
The ads
create . . .
Norwegian Uses Transformational Advertising
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
+
Norwegian Uses Transformational Advertising
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
+
Levels of Relationship with Brands
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Emotions
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Personality
Product Benefits
Personality
Product Benefits
MasterCard Creates an Emotional Bond
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
+
Ad Execution Techniques
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Personality SymbolPersonality Symbol
Straight-sell
Scientific
Demonstration
Comparison
Dramatization
Humor
Slice of life
Testimonial
Animation
FantasyFantasyDramatization
Comparison
AnimationDemonstration
TestimonialScientific
Slice of lifeStraight-sell
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Apple Uses a Testimonial
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
+
Crest Whitestrips Uses a Demonstration
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
+
Headline:
Headline:
Print Ad Components
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Layout:
How Elements Are Blended Into a Finished Ad
Visual Elements:
Illustrations Such As Drawings or Photos
Body Copy:The Main Text Portion of a Print Ad
Subheads:
Smaller Than the Headline, Larger Than the Copy
Words in the Leading Position of the Ad
Visual Elements:
Illustrations Such As Drawings or Photos
Body Copy:The Main Text Portion of a Print Ad
Subheads:
Smaller Than the Headline, Larger Than the Copy
Words in the Leading Position of the Ad
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Altoids Uses a Headline Effectively
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
+
Headlines Can Capture Attention
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
+
Print Ad Layout
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Format Arrangement of the Elements on the Printed Page
SizeExpressed in Columns, Column Inches or Portionsof a Page
ColorBlack & White or Two-, Three-, or Four-colorPrinting
WhiteSpace
Marginal and Intermediate Space That RemainsUnprinted
Format Arrangement of the Elements on the Printed Page
ColorBlack & White or Two-, Three-, or Four-colorPrinting
SizeExpressed in Columns, Column Inches or Portionsof a Page
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Top 10 Jingles of the CenturyCompany Jingle
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
1. McDonalds You deserve a break today
2. U.S. Army Be all that you can be
3. Pepsi Cola Pepsi Cola Hits the Spot
4. Campbells Soup Mm, Good Mm Good
5. Chevrolet See the USA in your Chevrolet
6. Oscar Mayer I wish I was an Oscar Mayer Wiener
7. Wrigleys gum Double your pleasure, double your fun
8. Winston Winston tastes good like a cigarette should
9. Coca-Cola Its the real thing
10. Brylcreem BrylcreemA little dabll do ya
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Preproduction Tasks
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Select a Director
Cost Estimation andTiming
Choose ProductionCompany
Bidding
PreproductionMeeting
Production TimetableProduction Timetable
Cost Estimation andTiming
Bidding
Choose ProductionCompany
Select a Director
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Preproduction
Production Tasks
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Location Versus Set
Shoots
Night/weekend
Shoots
Talent
Arrangements
Night/weekend
Shoots
Location Versus Set
Shoots
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Production
Postproduction Tasks
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Editing Processing
Sound Effects
Audio/Video
Mixing
OpticalsClient/agency
Approval
Duplicating
Release/
Shipping
Duplicating
Client/agency
ApprovalOpticals
Audio/Video
Mixing
Sound Effects
ProcessingEditing
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Postproduction
Consistent With Brands Marketing Objectives?
Consistent With Brands Marketing Objectives?
Evaluation Guidelines for Creative Output
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g j
Consistent With Brands Advertising Objectives?
Consistent With Creative Strategy, Objectives?
Does It Communicate What Its Suppose to?
Approach Appropriate to Target Audience?
Communicate Clear, Convincing Message?
Does Execution Overwhelm the Message?
Appropriate to the Media Environment?
g j
Consistent With Brands Advertising Objectives?
Consistent With Creative Strategy, Objectives?
Does It Communicate What Its Suppose to?
Approach Appropriate to Target Audience?
Communicate Clear, Convincing Message?
Does Execution Overwhelm the Message?
Appropriate to the Media Environment?
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Is the Advertisement Truthful and Tasteful?
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A series of decisions in ol ing the deli er of messages
A series of decisions in ol ing the deli er of messages
Media Terminology
Media
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A series of decisions involving the delivery of messages
to audiences
Goals to be attained by the media strategy and
program
Decisions on how the media objectives can be attained
The various categories of delivery systems, including
broadcast and print media
Either radio or television network or local station
broadcasts
A series of decisions involving the delivery of messages
to audiences
Goals to be attained by the media strategy and
program
Decisions on how the media objectives can be attained
The various categories of delivery systems, including
broadcast and print media
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Media
Planning
Media
Objectives
MediaStrategy
Media
Broadcast
Media
Publications such as newspapers magazines direct
Publications such as newspapers magazines direct
Media Terminology
Print
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Publications such as newspapers, magazines, direct
mail, outdoor, etc.
The specific carrier within a medium category
Number of different audience members exposed atleast once in a given time period
The potential audience that might receive the message
through the vehicle
The number of times the receiver is exposed to the
media vehicle in a specific time period
The potential audience that might receive the message
through the vehicle
Number of different audience members exposed atleast once in a given time period
The specific carrier within a medium category
Publications such as newspapers, magazines, direct
mail, outdoor, etc.
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Print
Media
Media Vehicle
Reach
Coverage
Frequency
Developing the Media Plan
Marketing Creative
MarketingSituation Creative
Situation
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Selecting Media Within Class
Selecting Broad Media Classes
Determining Media Strategy
Media Use Decision
Print
Media Use Decision
Broadcast
Media Use Decision
Other Media
Selecting Media Within Class
Determining Media Strategy
Selecting Broad Media Classes
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Setting Media ObjectivesSetting Media Objectives
Marketing
Strategy Plan
Creative
Strategy Plan
Marketing
Strategy Plan
Situation
Analysis
Creative
Strategy Plan
Situation
Analysis
Media Planning Difficulties
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Measurement
Problems Lack of Information
Inconsistent
Terms
Time
Pressure
Inconsistent
Terms
Lack of Information
Measurement
Problems
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Problemsin Media
Planning
Analyze the Market
Analyze the Market
Developing the Media Plan
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Evaluate Performance
Implement Media Strategy
Develop Media Strategy
Establish Media Objectives
Analyze the Market
Implement Media Strategy
Develop Media Strategy
Establish Media Objectives
Analyze the Market
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Brand and Category Analysis
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Percentage of brand to total U.S. salesin market
Percentage of total U.S. populationin market
BDI = X 100
Brand Development Index
Brand and Category Analysis
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Percentage of total product categorysales in market
Percentage of total U.S. populationin market
CDI = X 100
Category Development Index
Brand and Category Analysis
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High market share
Good market potential
High market share
Good market potential
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Lo
wC
DI
H
ighCDI
High BDI
Low market share Good
market potential
Low market share Good
market potential
Low BDI
High market share
Monitor for sales decline
High market share
Monitor for sales decline
Low market share
Poor market potential
Brand and Category Analysis
High BDI
Low BDI
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The market usually represents
good sales potential for both
the product and the brand.
The market usually represents
good sales potential for both
the product and the brand.
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Low
CDI
HighCDI
High BDI
The product category shows high
potential but the brand isnt
doing well; the reason should be
determined.
The product category shows high
potential but the brand isnt
doing well; the reason should be
determined.
Low BDI
The category isnt selling well
but the brand is; may be a good
market in which to advertise but
should be monitored for salesdecline.
The category isnt selling well
but the brand is; may be a good
market in which to advertise but
should be monitored for salesdecline.
Both the product category and
the brand are doing poorly; not
likely to be a good place to
advertise.
Target Audience Coverage
Population excluding target market
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Target
Market
Proportion
Full
Market
Coverage
Partial
Market
Coverage
Coverage
Exceeding
Market
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Population excluding target market
Target marketMedia coverage
Media overexposure
Three Scheduling Methods
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Continuity
Pulsing
Flighting
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Reach and Frequency
A. Reach of One Program B. Reach of Two Programs
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Total market audience reached Total market audience reached
C. Duplicated Reach of Both
Total reached with both shows
D. Unduplicated Reach of Both
Total reach less duplicate
Graph of Effective Reach
Fi 10 22
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Figure 10-22
+
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Message Factors Determining Frequency
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Message Complexity
Message Uniqueness
New Vs. Continuing Campaigns
Image Versus Product Sell
Message Variation
Wearout
Advertising Units
Wearout
Message Variation
Image Versus Product Sell
New Vs. Continuing Campaigns
Message Uniqueness
Message Complexity
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Message
or Creative
Factors
Media Factors Determining Frequency
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Clutter
Number of Media
Used
Repeat Exposures
Editorial
Environment
Scheduling
AttentivenessAttentiveness
Number of Media
Used
Editorial
Environment
Repeat Exposures
Clutter
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Media Factors
Determining Relative Cost of Media-Print
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Cost of ad space(absolute cost)
Circulation
CPM = X 1,000
Cost per thousand (CPM)
Determining Relative Cost of Media-Broadcast
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
CPRP =Cost of commercial time
Program rating
Cost per rating point (CPRP)
Television Pros and ConsAdvantages Disadvantages
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Short Message Life
High Production Cost
Low Selectivity
High Absolute Cost
Clutter
Mass Coverage
High Reach
Impact of Sight, Soundand Motion
High Prestige
Low Cost Per Exposure
Attention Getting
Favorable Image
High Production Cost
High Absolute Cost
Short Message Life
Low Selectivity
Favorable Image
Attention Getting
Low Cost Per Exposure
High Prestige
Impact of Sight, Soundand Motion
High Reach
Mass Coverage
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Radio Pros and ConsAdvantages Disadvantages
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Clutter
Fleeting Message
Audio Only
Low Attention Getting
Local Coverage
Low Cost
High Frequency
Flexible
Low Production Cost
Well-segmented Audience
Low Attention Getting
Clutter
Audio Only
Well-segmented Audience
Low Production Cost
Flexible
High Frequency
Low Cost
Local Coverage
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Long Lead Time for
Long Lead Time for
Magazine Pros and ConsAdvantages
Disadvantages
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Visual Only
Long Lead Time for
Ad Placement
Lack of Flexibility
Segmentation Potential
Quality Reproduction
High Information Content
Longevity
Multiple Readers
Visual Only
Long Lead Time for
Ad Placement
Multiple Readers
Longevity
High Information Content
Quality Reproduction
Segmentation Potential
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Newspaper Pros and ConsAdvantages Disadvantages
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Clutter
Poor Reproduction Quality
Short Life
Low Attention Getting
High Coverage
Low Cost
Short Lead Time for Placing Ads
Ads Can Be Placed in InterestSections
Timely (Current Ads)
Reader Controls Exposure
Can Be Used for Coupons
Selective Reader Exposure
Poor Reproduction Quality
Low Attention Getting
Clutter
Short Life
Can Be Used for Coupons
Reader Controls Exposure
Timely (Current Ads)
Ads Can Be Placed in InterestSections
Short Lead Time for Placing Ads
Low Cost
High Coverage
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Outdoor Pros and ConsAdvantages Disadvantages
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Short Ads
Local Restrictions
Sort Exposure Time
Poor Image
Location Specific
High Repetition
Easily Noticed Poor Image
Short Ads
Sort Exposure Time
Easily Noticed
High Repetition
Location Specific
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Direct Mail Pros and ConsAdvantages Disadvantages
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Poor Image (Junk Mail)
High Cost Per Contact
Clutter
High Selectivity
Reader Controls Exposure
High Information Content
Repeat Exposure Opportunities
Poor Image (Junk Mail)
High Cost Per Contact
Repeat Exposure Opportunities
High Information Content
Reader Controls Exposure
High Selectivity
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Internet Pros and ConsAdvantages Disadvantages
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Websnarl (Crowded Access)
Few Valid MeasurementTechniques
Limited Creative Capabilities
Technology Limitations
Limited Reach
User Selects Product Information
User Attention and Involvement
Interactive Relationship
Direct Selling Potential
Flexible Message Platform
Few Valid MeasurementTechniques
Technology Limitations
Websnarl (Crowded Access)
Limited Creative Capabilities
Flexible Message Platform
Direct Selling Potential
Interactive Relationship
User Attention and Involvement
User Selects Product Information
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Session XI
Evaluation of Print media / Support
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Media
Classifications of Magazines
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ByGeography
Local
Regional
National
ByContent
Consumer
Magazines
Farm
Magazines
Business
Magazines
BySize
Large
Flat
Standard
Small or
Pocket
ByGeography
ByAudience
2003 McGraw-Hill Companies Inc McGraw-Hill/Irwin
An Example of a Farm Publication
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2003 McGraw-Hill Companies Inc McGraw-Hill/Irwin
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Magazine Circulation ConceptsCirculation: Number of individualswho receive a publicationthrough either
subscriptionor store purchase.
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PrimaryCirculation
Pass-Along
Readership
Guaranteed
Circulation
Circulation
Verification
Total Audience (the total
number of primaryand
pass-along readers)
Controlled
Circulation
Controlled
Circulation
Circulation Verification:
Credibility of circulation
figures. Auditing is done
through verification
services.
Guaranteed Circulation: A
rebate is given to advertisers is
guaranteed number is not met.
(Estimations are made below
the average)
Primary Circulation:
(Original subscribers or
purchasers)
2003 McGraw-Hill Companies Inc McGraw-Hill/Irwin
p p
Pass-Along Readership: Giving
the magazine by the primary
subscriber or purchaser to an
other person OR read
somewhere.
Purchasing Magazine Advertising Space
Cost elements include many variables such as:
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2003 McGraw-Hill Companies Inc McGraw-Hill/Irwin
-Magazine Rates (Primarily a function of circulation)
-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
-Magazine networks: Offer advertisers the opportunity to buy space in a group ofpublications as a package deal
Declining Ad Revenues
Declining Ad Revenues (affected by, e.g., spending and competition)
The Future of Magazines
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Database Marketing
Advances in Technology
Cross-Mag. & Media Deals
Circulation Management
Stronger Editorial Platforms
Electronic Delivery Methods
Database Marketing: Database MKG for better segme
Advances in Technology: Selective binding & Ink
Cross-Mag. & Media Deals (Packages offered to advertisers)
Circulation Management: Maintaining a circulation level as a major
Stronger Editorial Platforms (for different appeals)
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Trends,
Trends,
Trends
Magazines Go Online
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
+
Daily
DailyPublication
Frequency
Publication
Frequency
Newspaper Classifications
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Ethnic, Religious, Etc.Ethnic, Religious, Etc.
Weekly
Standard
Tabloid
Business, Financial, Etc.
Special-Audience
National
Supplements
National
Special-Audience
Standard
Frequency
Type
Size
Tabloid
Size
Supplements
Type
WeeklyFrequency
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Audience Type
The Dominant Advertising Vehicle
The Dominant Advertising Vehicle
Characteristics of Newspapers
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Local Ads Provide Most of Revenue
Main Community Medium
Dailys Read by About 60% of adults
Over 1,500 Daily Papers in Print
Account for 22% of Ad Dollars
Main Community Medium
Dailys Read by About 60% of adults
Over 1,500 Daily Papers in Print
Account for 22% of Ad Dollars
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Mass audience
Mass audience
Unique Newspaper Features
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Cross-section of population
Wide range of content, subjects
Timely coverage, daily issues
Permanent, durable record
Local geographic coverage
Selective readership by area
Readership concentrated in timeReadership concentrated in time
Timely coverage, daily issues
Selective readership by area
Wide range of content, subjects
Local geographic coverage
Cross-section of population
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
General (Often National)
Local (Mostly Retail)
General (Often National)
Local (Mostly Retail)
Newspaper Advertising
Display Ads
Display Ads
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Rates Based on Size, DurationRates Based on Size, Duration
General (Often National)
Paid Reading Notices (Editorial Look)
Small Items Arranged by Topic
Classified Display - Combination
Notices by People, Organizations
Legal Notices - Public Reports
Financial Reports
Notices by People, Organizations
Legal Notices - Public Reports
Small Items Arranged by Topic
General (Often National)
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Prepared Separately by Advertisers
Display Ads
Classified Ads
Public Notices
Financial Reports
Public Notices
Classified Display - Combination
Classified Ads
Paid Reading Notices (Editorial Look)
Display Ads
Printed Inserts
Production Quality
Production Quality
Newspaper Advantages and Drawbacks
Extensive Penetration
Advantages
Disadvantages
Extensive Penetration
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They Have aShort Life Span
yMay Be Low
They Have aShort Life Span
yMay Be Low
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Not Psychographically Selective
Not Demographically Selective
There's Heavy Ad Competition
Extensive Penetration
Flexibility
Geographic Selectivity
Involvement, Acceptance
Services Offered
Potentially Poor Placement
May Be Overlapping Circulation
Not Psychographically Selective
Not Demographically Selective
There's Heavy Ad Competition
Extensive Penetration
Flexibility
Geographic Selectivity
Involvement, Acceptance
Services Offered
Potentially Poor Placement
Read by Almost All Consumers
Read by Almost All Consumers
Newspaper Characteristics
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Readers Look at Over 3/4of All PagesReaders Look at Over 3/4of All Pages
Many Shapes, Sizes,Paper, & Printing
Few Limitations on Ad Size
Read Daily in an Ordered Way
Spot and Full Color AvailableSpot and Full Color Available
Few Limitations on Ad Size
Read Daily in an Ordered Way
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Wide Audience
Offer
Flexibility
The Future of Newspapers:
The future of newspapers depend on:
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
-Competition from other media
-Circulation
-Cross-media buying
-Attracting and Retaining Readers
-Editorials
-Technology
Session XII
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Advertising and Social Media
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Session XIII
Amplifying Perceptions: How JetblueUses Twitter To Drive Engagement
And Satisfaction
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Session XIV
Direct Marketing, Internet & Interactive
Media
Direct Marketing Defined
The total of activities by which the seller directs efforts to a
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Catalog Selling
Direct Selling Direct Action Advertising
Direct MailTelemarketing
TV SellingCatalog Selling
TV Selling
Direct Mail
Direct Action AdvertisingDirect Selling
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
f y ff
target audience using one or more media for the purpose ofsoliciting a response by phone, mail , or personal visit f rom a
prospective customer.
Consumer Credit Cards
Consumer Credit Cards
Growth of Direct Marketing
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Miscellaneous factors(e.g., Changing values, More sophisticatedmarketing techniquesand Improved image of the industries)
Technical Advances
Direct Marketing Syndicates
Changing Structure of Society
Technical Advances
Direct Marketing Syndicates(Companies are opening new opportunitiesfor marketers through (e.g., list development, Catalogs and Sweepstakes)
Changing Structure of Society
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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Improve Selection of MarketS t
Improve Selection of MarketS t
Objectives of Database Marketing
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Segments
Stimulate Repeat Purchases
Cross-selling Other Products
Customer RelationshipManagement
Cross-selling Other Products
Stimulate Repeat Purchases
Segments
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Objectives
List Services
List Services
Developing a Database
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Direct MarketingAssociation
Standard Rate &Data Service (SRDS)
U.S. Postal Service
Simmons MarketResearch Bureau:(Researchon at home buying via Mail
or Telephone)
U.S. Census BureauNational CensusBureau
Direct MarketingAssociation
Postal Service
Standard Rate &Data Service(Lists ofConsumersand Businesses.
Published in two volumes)
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Sources
Direct-Marketing Strategies and Media
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One Step Two StepOne Step
The medium is used
directly to obtain an
order
Often use 800 number
phone orders and credit
card payment
May use one medium
to obtain inquiry and
qualify prospect
Typically follow up
with a second medium
to complete the sale
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Direct Response Advertising Types
All forms of advertising designed to obtain
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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Direct Mail Pieces and Inserts
Soliciting Inquiry Recipients.
e.g., Direct Mail Pieces andInserts Soliciting Inquiry
Recipients.
immediate, direct response by telephone,mail, orpersonal visit from individual audience members.
TV and CATV Commercials andInfomercials Selling Products by
Phone or Mail Order.
e.g., TV and CATV Commercialsand Infomercials Selling Products
by Phone or Mail Order.
Card Decks, Coupon Booklets andMini-catalogs Seeking Orders for
One or More Products.
e.g., Coupon Booklets and
Vouchers; and Mini-catalogs
Seekin