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marketing management

Transcript of Kotcha15

  • Chapter 15Advertising, Sales Promotion, and Public Relations

  • AdvertisingAdvertising is centuries old.U.S. advertisers spend in excess of $212 billion each year; worldwide spending exceeds $414 billion.Advertising is used by:Business firms,Nonprofit organizations,Professionals, andSocial agencies.

  • What is Advertising? Advertising is Any Paid Form of Nonpersonal Presentation and Promotion of Ideas, Goods, or Services by an Identified Sponsor.

  • Major Advertising Decisions (Fig. 15.1)Objectives SettingCommunication objectivesSales Objectives

    Budget DecisionsAffordable ApproachPercent of salesCompetitive parityObjective and task

    Message DecisionsMessage StrategyMessage ExecutionMedia DecisionsReach, Frequency, ImpactMajor Media TypesSpecific Media TypesMedia TimingCampaign EvaluationCommunication ImpactSales Impact

  • Setting Advertising ObjectivesInformative AdvertisingInform Consumers or Build Primary Demandi.e CD Players

    Comparison AdvertisingCompares One Brand to Anotheri.e. Avis vs. Hertz

    Persuasive AdvertisingBuild Selective Demandi.e Sony CD Players

    Reminder AdvertisingKeeps Consumers ThinkingAbout a Producti.e. Coca-ColaAdvertising ObjectiveSpecific Communication Task Accomplished with a Specific Target Audience During a Specific Period of Time

  • Setting the Promotion BudgetAfter Determining Its Advertising Objectives, the Marketer Must Set the Advertising Budget for Each Product and Market. (From Chapter 14)

  • Setting the Advertising BudgetFactors to be considered when setting the advertising budget:Stage in the product life cycle,Market share,Competition and clutter,Product differentiation.

  • Developing Advertising StrategyAdvertising Strategy Consists of Two Major Elements and Companies are Realizing the Benefits of Planning These Two Elements Jointly.

  • Developing Advertising Strategy: Creating Ad MessagesPlan a Message StrategyGeneral Message to Be Communicated to Customers

    Develop a Message Focus on Customer Benefits

    Creative ConceptBig IdeaVisualization or PhraseCombination of Both

    Advertising AppealsMeaningfulBelievableDistinctive

  • Some phrases or Big Ideas become so effective that they spark trends in speaking, fashion, or even in other ads.

  • Developing Advertising Strategy: Message ExecutionTypicalMessageExecutionStylesTestimonial EvidenceSlice of LifeScientific EvidenceLifestyleTechnical ExpertiseFantasyMusicalPersonality SymbolMood or ImageTurning the Big Idea Into an Actual Ad to Capture the Target Markets Attention and Interest.

  • What type of message execution do these two ads employ?

    Message Execution

    In both cases, what distinguishes the product from therest of the ad?

    Click or press spacebar to return.

  • What type of mood does this set about the product?

    Which lifestyle does it appeal to?

    Click or press spacebar to return

  • This Colgate adinforms customersabout the necessity of brushing afterlunch.

    In addition to acquiring new customers, Colgate may increasetoothpaste use bypresent customers.

  • Advertising Strategy:Selecting Advertising Media

    Step 1. Decide on Reach, Frequency, and Impact

    Step 2. Choosing Among Major Media TypesMedia Habits of Target Consumers,Nature of the Product, Types of Message, Cost

    Step 3. Selecting Specific Media VehiclesSpecific Media Within a Given Type, i.e. Magazines.Must Balance Media Cost Against Media Factors:Audience Quality & Attention, Editorial QualityStep 4. Deciding on Media TimingScheduling of Advertising Over the Course of a YearPattern of Ads: Continuity or Pulsing

  • Evaluating Advertising

    Communication Effects

    Is the Ad Communicating Well?

    Advertising Program Evaluation

    Sales Effects

    Is the Ad Increasing Sales?Jon Steel, ofGoodby, Silverstein, and Partners:

  • Discussion ConnectionsAdvertising objectives can be classified by primary purpose: to inform, persuade, or remind.Using your local newspaper, find examples of ads pursuing each of the above.Apply Table 15.1 to explain your answers.

  • Other Advertising Considerations

    Sales Departments inSmall Companies

    Advertising Departments in Larger Companies

    Advertising Agency

    Firm that Assists Companiesin the Planning, Creation, & Implementation of TheirAdvertising Programs

  • Advertising AgenciesLarge agencies divide their staffs to specialize in creative,media,research, or business (account planning).Ad agencies are moving away from the commission system because it no long accurately reflects the services performed. Most ad agency clients still want just a few of the services that can be provided by the agency, so diversification efforts have been limited.

  • International Advertising Decisions

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

  • Rapid Growth of Sales PromotionSales promotion can take the form of consumer promotions, business promotions, trade promotions or sales force promotions.Rapid growth in the industry has been achieved because:Product managers are facing more pressure to increase their current sales,Companies face more competition,Advertising efficiency has declined,Consumers have become more deal oriented.

  • Sales Promotion ObjectivesIncrease short-term sales or help build long-term market share.Get retailers to:carry new items and more inventory,advertise products, give products more shelf space, andbuy product ahead.In general, sales promotion should focus on consumer relationship building.

  • Major Consumer Sales Promotion ToolsSampleCouponsCash RefundsPrice PacksPremiumsAdvertising SpecialtiesTrial amount of a productSavings when purchasing specified productsRefund of part of the purchase priceReduced prices marked on the label or packageGoods offered free or low cost as an incentive to buy a productArticles imprinted with an advertisers name given as gifts

  • Major Consumer Sales Promotion Tools

  • Major Trade Sales Promotion Tools

  • Sales Promotion

    This Kibbles n Bitspromotion offeredpet owners a chanceto see their dogs ina commercial.

    Which of the fourobjectives does thistype of promotionfulfill?

  • Major Business Sales Promotion Tools

  • Developing the Sales Promotion ProgramDecide on the Size of the IncentiveSet Conditions for ParticipationEvaluate the ProgramDetermine How to Promote andDistribute the Promotion Program Determine the Length of the Program

  • What is Public Relations? Public Relations Involves Building Good Relations With the Companys Various Publics by Obtaining Favorable Publicity, Building Up a Good Corporate Image, and Handling or Heading Off Unfavorable Rumors, Stories, and Events.

  • Major Public Relations Functions

  • Major Public Relations ToolsNewsSpeechesSpecial EventsWritten MaterialsAudiovisual MaterialsCorporate Identity MaterialsPublic Service Activities Web Site

  • Major Public Relations Decisions

  • Review of Concept ConnectionsDefine the roles of advertising, sales promotion, and public relations in the promotion mix.Describe the major decisions involved in developing an advertising program.Explain how sales promotion campaigns are developed and implemented.Explain how companies use public relations to communicate with their publics.