Advertisement and Promotion

8/14/2019 Advertisement and Promotion

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BySUJITHA S

08MBM100

Retail Advertising and

Promotion


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ADVERTISING

Advertising Paid non personal communication

delivered through various media and designed

to inform, persuade, or remind members of a

particular audience.


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Advertising Paid non-personalcommunication through

various media

Objective to inform reader

listener or viewer aboutRetailer

Offerings

PricesServices


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The way advertising works.

Knowledge state attitudes potential purchaser actionOr

Awareness state


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DAGMAR MODEL

Defining advertising goals for measured

advertising results describes the

sequence of stages through which the

prospective customers has to move. Unawareness

Awareness

Comprehension of the offer

Conviction

Action or inaction


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Types of Advertising

Product advertising

Markdown event

advertising

Institutional

advertising

Cause advertising


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Product Advertising

PioneeringPioneeringPioneeringPioneering Stimulates primary demand for

new product or category. Used in the PLC introductory stage.

CompetitiveCompetitiveCompetitiveCompetitive Influence demand for brand in the

growth phase of the PLC.

Often uses emotional appeal.

ComparativeComparativeComparativeComparative Compares two or more competing

brands product attributes.

Used if growth is sluggish, or if

competition is strong.


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Product advertising (samsung mp3

player)


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Institutional advertising


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Institutional advertising


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Institutional (retail store)

advertisement


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Contd..


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cause advertising


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Cause advertising


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Cause advertising


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Fun-cause advertising


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Advertising and the ProductLife Cycle

Informative advertising Build initial demand for a

product.

Persuasive advertisingImprove the competitive statusof a product.

Reminder-oriented advertising Maintain awareness of

the importance

and usefulness of a product.


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Major Types of Advertising

Media

NewspapersNewspapers

MagazinesMagazines

RadioRadio

TelevisionTelevision

Outdoor MediaOutdoor Media

InternetInternet

Alternative MediaAlternative Media


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Advertising Spending for 2009
http://blog.impactmt.com/uploaded_images/newspapers-766059.jpg


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Newspapers

AdvantagesAdvantagesAdvantagesAdvantages

Geographic selectivity

Immediacy

High individual market

coverage

Short lead time

DisadvantagesDisadvantagesDisadvantagesDisadvantages

Limited demographic

selectivity Little color

May be expensive

Low pass-along rate

Clutter

Mass market medium
http://blog.impactmt.com/uploaded_images/newspapers-766059.jpg


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Magazines

Good reproduction

Demographicselectivity

Regional/localselectivity

Long advertising life

High pass-along rate


Higher cost per contact

Long-term advertisercommitments

Slow audience build-up

Limited demonstration

capabilities

Lack of urgency

Long lead time



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Magazine advertising


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Radio

AdvantagesAdvantagesAdvantagesAdvantages Selectivity and

audience segmentation

Immediate and portable

Geographic flexibility

Entertainmentcarryover

Short-term adcommitments


No visual treatment

Short advertising life

High frequency togenerate retention

Commercial clutter

Backgrounddistractions


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Television


Wide, diverse audience

Low cost per thousand

Creative and

demonstrative Immediacy of messages

Entertainment carryover

Demographic selectivity

with cable


Short life of message

Expensive with highcampaign cost

Little demographicselectivity with network

Long-term advertisercommitments

Long lead times

Clutter


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Outdoor Media


High exposurefrequency

Moderate cost

Flexibility

Geographic selectivity

Broad, diverse market


Short message

Lack of demographicselectivity

High noise level


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outdoor

advertising


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outdoor

advertising


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???????


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Internet

Fast growing

Ability to reach narrowtarget audience

Short lead time

Moderate cost


Difficult to measure adeffectiveness and ROI

Ad exposure relies onclick through

Not all consumers

have access to internet



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Advertising Appeal

Reason for a personto buy a product.


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Common Advertising Appeals

ProfitProfit

HealthHealth

Love or romanceLove or romance

FearFear

AdmirationAdmiration

ConvenienceConvenience

Fun and pleasureFun and pleasure

Vanity and egotismVanity and egotism

EnvironmentalConsciousness

EnvironmentalConsciousness

Product saves, makes, or protects moneyProduct saves, makes, or protects money

Appeals to body-conscious or health seekersAppeals to body-conscious or health seekers

Used in selling cosmetics and perfumesUsed in selling cosmetics and perfumes

Social embarrassment, old age, losing healthSocial embarrassment, old age, losing health

Reason for use of celebrity spokespeopleReason for use of celebrity spokespeople

Used for fast foods and microwave foodsUsed for fast foods and microwave foods

Key to advertising vacations, beer, parksKey to advertising vacations, beer, parks

Used for expensive or conspicuous itemsUsed for expensive or conspicuous items

Centers around environmental protectionCenters around environmental protection

S


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Steps in a Retail Advertising

Campaign

xSelect Advertising

Objectives

yBudget for the

CampaignzDesign the

Campaign

{Select the media to

use

|Schedule the ads

}Evaluate the results


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Must be based on:

Age of Store Store location

Types of Goods

Level of competition

Market Area Size

Supplier Support

Advertising Objectives


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Budgeting the Campaign

Main question is if it will

be a retailer only

campaign or a Co-op

campaign If Retailer campaign

methods of budgeting

include

Affordable method

Percentage-of sales

method

Task and objective method


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Designing the Message

Goals

Attract and retain attention

Meet advertising strategy

Avoid errors (guaranteedor free

Approaches

Lifestyle

Fantasy

Humor

Slice of Life

Mood / image


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Media Selection

Coverage

Reach Frequency

Cost per

thousand(CPM)


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Advertising Scheduling

On or just before

big buying days

Concentrated on

pay dates

Periods of highest

demand

Period of highestCPM

Habit (same day

each week)


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Monitoring Advertising

Effectiveness - didadvertising produce

the results desired

(added sales, added

customers, disposal

of specific product,

etc)

Efficiency - Wasthe result achieved

with the minimum

financial expenditure


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Advertising Expenditures as a

Percentage of Sales

Advertising Expenditures as a

Percentage of Sales

Wal-Mart Corporation 0.34%

Sears, Roebuck & Co. 3.78%

Kmart Corp. 1.25%

Dayton Hudson Corp. 2.15%

J.C. Penney Co. 3.42%

Federated Dept. Stores 3.75%

May Dept. Stores Co. 3.43%Woolworth Corporation 1.30%


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Advertisement and Promotion