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ObjectivesObjectivesObjectivesObjectives

Developing & Managing an Advertising Developing & Managing an Advertising ProgramProgram

Deciding on Media & Measuring Deciding on Media & Measuring EffectivenessEffectiveness

Sales PromotionSales Promotion Public RelationsPublic Relations

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Major Decisions in AdvertisingMajor Decisions in AdvertisingMajor Decisions in AdvertisingMajor Decisions in Advertising

Objectives SettingObjectives Setting

Budget DecisionsBudget Decisions

Message DecisionsMessage Decisions Media DecisionsMedia Decisions

Campaign EvaluationCampaign Evaluation

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Informative AdvertisingBuild Primary Demand

Informative AdvertisingBuild Primary Demand

Persuasive AdvertisingBuild Selective Demand

Persuasive AdvertisingBuild Selective Demand

Comparison AdvertisingCompares One Brand to

Another

Comparison AdvertisingCompares One Brand to

Another

Reminder AdvertisingKeeps Consumers Thinking

About a Product.

Reminder AdvertisingKeeps Consumers Thinking

About a Product.

Advertising ObjectivesAdvertising ObjectivesAdvertising ObjectivesAdvertising Objectives

Specific Communication Specific Communication Task Task Accomplished with a Specific Accomplished with a Specific TargetTarget Audience Audience During a Specific Period of During a Specific Period of TimeTime

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The Five Ms of AdvertisingThe Five Ms of Advertising

Mission

Salesgoals

Adver-tisingobjectives

Money

Factors toconsider:

Stage in PLC

Market shareand con-sumer base

Competitionand clutter

Advertisingfrequency

Productsubstituta-bility

Message

Message generation

Message evaluationand selection

Message execution

Social-responsibilityreview

MediaReach, frequency,impactMajor media typesSpecific mediavehicles

Media timingGeographicalmedia allocation

Measure-ment

Communi-cationimpact

Salesimpact

©2000 Prentice Hall

Advertising Budget FactorsAdvertising Budget FactorsAdvertising Budget FactorsAdvertising Budget Factors

Stage in the Product Life Cycle

Market Share &Consumer Base

Competition &Clutter

AdvertisingFrequency

ProductSubstitutability

©2000 Prentice Hall

Profiles of Major Media TypesProfiles of Major Media Types

NewspapersAdvantages: Flexibility, timeliness; good local market coverage;

broad acceptance, high believability

Limitations: Short life; poor reproduction quality; smallpass-along audience

TelevisionAdvantages: Combines sight, sound, motion; high attention; high reach; appealing to senses

Limitations: High absolute costs; high clutter; fleeting exposure;less audience selectivity

Direct MailAdvantages: Audience selectivity; flexibility, no ad compe-

tition within same medium; allows personalization

Limitations: Relative high cost; “junk mail” image

©2000 Prentice Hall

RadioAdvantages: Mass use; high geographic and demographic

selectivity; low cost

Limitations: Audio only; fleeting exposure; lower attention; nonstandardized rates; fragmented audiences

MagazinesAdvantages: High geographic and demographic selectivity;

credibility and prestige; high-quality reproduction;long life; good pass-along readership

Limitations: Long ad purchase lead time; waste circulation; no guarantee of position

OutdoorAdvantages: Flexibility; high repeat exposure; low cost; low message competition

Limitations: Little audience selectivity; creative limitations

Profiles of Major Media TypesProfiles of Major Media Types

©2000 Prentice Hall

Classification ofClassification ofAdvertising Timing PatternsAdvertising Timing Patterns

Month

Number ofmessagesper month

Concen-trated

(1) (2) (3)Level Rising Falling Alternating

(4)

Continuous

(8)(7)(6)(5)

(9)Inter-

mittent

(10) (11) (12)(9)

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Simplified Rating Sheet for AdsSimplified Rating Sheet for AdsSimplified Rating Sheet for AdsSimplified Rating Sheet for Ads

PoorPooradad

MediocreMediocreadad

AverageAverageadad

GoodGoodadad

GreatGreatadad

0 20 40 60 80 100 __Total__Total

(Attention) How well does the ad catch the reader’s attention? __20(Read-through) How well does the ad lead the reader to read further? __20(Cognitive) How clear is the central message or benefit? __20(Affective) How effective is the particular appeal? __20(Behavior) How well does the ad suggest follow-through action? __20

©2000 Prentice Hall

Advertising StrategyAdvertising StrategyMessage ExecutionMessage Execution

Advertising StrategyAdvertising StrategyMessage ExecutionMessage Execution

TypicalMessage

ExecutionStyles

TypicalMessage

ExecutionStyles

TestimonialEvidence

TestimonialEvidence Slice of LifeSlice of Life

ScientificEvidence

ScientificEvidence

LifestyleLifestyle

TechnicalExpertise

TechnicalExpertise

FantasyFantasy

MusicalMusical

PersonalitySymbol

PersonalitySymbol

Mood orImage

Mood orImage

Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest.

©2000 Prentice Hall

Advertising Program EvaluationAdvertising Program Evaluation

Communication Effects

Is the Ad Communicating Well?

Communication Effects

Is the Ad Communicating Well?

Advertising EvaluationAdvertising EvaluationAdvertising EvaluationAdvertising Evaluation

Sales Effects

Is the Ad Increasing Sales?

Sales Effects

Is the Ad Increasing Sales?

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Why the increase in Sales Why the increase in Sales Promotion?Promotion?

Why the increase in Sales Why the increase in Sales Promotion?Promotion?

Growing retailer powerGrowing retailer power Declining brand loyaltyDeclining brand loyalty Increased promotional sensitivityIncreased promotional sensitivity Brand proliferationBrand proliferation Fragmentation of consumer marketFragmentation of consumer market Short-term focusShort-term focus Increased managerial accountabilityIncreased managerial accountability CompetitionCompetition ClutterClutter

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Long-Term Promotional Allocation

0

10

20

30

40

50

60

1986 88 90 92 94 1996

Year

%t

of

tota

l -

3 yr

.MA

Trade Promo

Media Adv

Cons. Promo

Cox Direct 19th Annual Survey of Promotional PracticesCox Direct 19th Annual Survey of Promotional Practices

©2000 Prentice Hall

Channels of Sales PromotionsChannels of Sales PromotionsChannels of Sales PromotionsChannels of Sales Promotions

MANUFACTURER

RETAILER

TradeTradePromotionsPromotions

CONSUMER

ConsumerConsumerPromotionsPromotions

Push

PushPullRetailRetail

PromotionsPromotions

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Consumer PromotionConsumer PromotionConsumer PromotionConsumer Promotion

Consumer-Promotion Objectives

Consumer-Promotion Tools

Point-of-PurchaseDisplays

Point-of-PurchaseDisplays

PremiumsPremiums

Price PacksPrice Packs

Cash RefundsCash Refunds

CouponsCoupons

SamplesSamples

Patronage Rewards

Patronage Rewards

GamesGames

SweepstakesSweepstakes

ContestsContests

AdvertisingSpecialties

AdvertisingSpecialtiesPatronage Rewards

Entice Consumers to Try a New Product

Entice Consumers to Try a New Product

Lure Customers AwayFrom Competitors’ Products

Lure Customers AwayFrom Competitors’ Products

Get Consumers to “Load Up’on a Mature Product

Get Consumers to “Load Up’on a Mature Product

Hold & Reward Loyal Customers

Hold & Reward Loyal Customers

Consumer Relationship Building

Consumer Relationship Building

©2000 Prentice Hall

““Deal Proneness,”Deal Proneness,”Liechtenstein, Burton, & Netemeyer, Liechtenstein, Burton, & Netemeyer, Journal of RetailingJournal of Retailing, Summer 1997, Summer 1997

““Deal Proneness,”Deal Proneness,”Liechtenstein, Burton, & Netemeyer, Liechtenstein, Burton, & Netemeyer, Journal of RetailingJournal of Retailing, Summer 1997, Summer 1997

Examination of “deal proneness” among Examination of “deal proneness” among consumers in a supermarket settingconsumers in a supermarket setting

Surveys Surveys && Grocery Receipts used Grocery Receipts used Eight types of deals:Eight types of deals:

Cent-off, One-free, Gift, Display, Cent-off, One-free, Gift, Display, Rebate, Contest, Sale, & CouponRebate, Contest, Sale, & Coupon

©2000 Prentice Hall

““Deal Proneness,”Deal Proneness,”Liechtenstein, Burton, & NetemeyerLiechtenstein, Burton, & Netemeyer

““Deal Proneness,”Deal Proneness,”Liechtenstein, Burton, & NetemeyerLiechtenstein, Burton, & Netemeyer

Cluster analysis yielded two interpretable Cluster analysis yielded two interpretable results:results:

49%49% are “deal prone,” are “deal prone,” 51%51% not not 24%24% High “Deal prone,” High “Deal prone,” 50%50% intermediate, intermediate,

26%26% deal insensitive deal insensitive ““Deal-proneness” a generalized construct - Deal-proneness” a generalized construct -

(crosses type of promotion)(crosses type of promotion) Younger & Less educated more likely to be Younger & Less educated more likely to be

deal pronedeal prone

©2000 Prentice Hall

Trade-Promotion Objectives

Trade-Promotion Tools

Specialty Advertising

Items

Specialty Advertising

ItemsContestsContests

Free GoodsFree Goods

Buy-BackGuarantees

Buy-BackGuarantees

AllowancesAllowances

Price-OffsPrice-Offs

Patronage Rewards

Patronage Rewards

Push MoneyPush Money

DiscountsDiscounts

PremiumsPremiums

Displays

Persuade Retailers or Wholesalers to Carry a Brand

Persuade Retailers or Wholesalers to Carry a Brand

Give a Brand Shelf SpaceGive a Brand Shelf Space

Promote a Brand in Advertising

Promote a Brand in Advertising

Push a Brand to ConsumersPush a Brand to Consumers

Trade PromotionsTrade PromotionsTrade PromotionsTrade Promotions

©2000 Prentice Hall

Business-Promotion Objectives Business-Promotion

ToolsGenerate Business LeadsGenerate Business Leads

Stimulate PurchasesStimulate Purchases

Reward CustomersReward Customers

Motivate SalespeopleMotivate Salespeople

ConventionsConventions

Trade ShowsTrade Shows

Sales ContestsSales Contests

Business-to-Business Business-to-Business PromotionPromotion

Business-to-Business Business-to-Business PromotionPromotion

©2000 Prentice Hall

SpecialEvents

SpecialEvents

Written MaterialsWritten

Materials

Corporate Identity Materials

Corporate Identity Materials

SpeechesSpeeches

NewsNews

AudiovisualMaterials

AudiovisualMaterials

Major Public Relations ToolsMajor Public Relations Tools

Public Service

Activities

Public Service

Activities

Web SiteWeb Site

©2000 Prentice Hall

Taco Bell has Taco Bell has purchased the purchased the Liberty Bell!Liberty Bell!

©2000 Prentice Hall

ReviewReviewReviewReview

Developing & Managing an Advertising Developing & Managing an Advertising ProgramProgram

Deciding on Media & Measuring Deciding on Media & Measuring EffectivenessEffectiveness

Sales PromotionSales Promotion Public RelationsPublic Relations