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Chapter 13 Ver 2e 1©2000 South-Western College Publishing
Advertising, Sales PromotionAdvertising, Sales Promotionand Public Relationsand Public Relations
Chapter 13 Ver 2e 2
Chapter 13 ObjectivesChapter 13 Objectives
©2000 South-Western College Publishing
1.1. Discuss the effect advertising has on market Discuss the effect advertising has on market share, consumers, brand loyalty, and share, consumers, brand loyalty, and perception of product attributes.perception of product attributes.
2.2. Identify the major types of advertising.Identify the major types of advertising.
3.3. Describe the advertising campaign process.Describe the advertising campaign process.
4.4. Describe media evaluation and selection Describe media evaluation and selection techniques.techniques.
(continued)(continued)
1.1. Discuss the effect advertising has on market Discuss the effect advertising has on market share, consumers, brand loyalty, and share, consumers, brand loyalty, and perception of product attributes.perception of product attributes.
2.2. Identify the major types of advertising.Identify the major types of advertising.
3.3. Describe the advertising campaign process.Describe the advertising campaign process.
4.4. Describe media evaluation and selection Describe media evaluation and selection techniques.techniques.
(continued)(continued)
Chapter 13 Ver 2e 3
Chapter 13 ObjectivesChapter 13 Objectives
©2000 South-Western College Publishing
5.5. Define and state the objectives of sales Define and state the objectives of sales promotion.promotion.
6.6. Discuss the most common forms of Discuss the most common forms of consumer sales promotion.consumer sales promotion.
7.7. List the most common forms of trade List the most common forms of trade sales promotion.sales promotion.
8.8. Discuss the role of public relations Discuss the role of public relations in the promotional mix.in the promotional mix.
5.5. Define and state the objectives of sales Define and state the objectives of sales promotion.promotion.
6.6. Discuss the most common forms of Discuss the most common forms of consumer sales promotion.consumer sales promotion.
7.7. List the most common forms of trade List the most common forms of trade sales promotion.sales promotion.
8.8. Discuss the role of public relations Discuss the role of public relations in the promotional mix.in the promotional mix.
Chapter 13 Ver 2e 4©2000 South-Western College Publishing
Effects of AdvertisingEffects of Advertising
Advertising and the
Consumer
• Average U.S. citizen is exposed to hundreds of ads each day.
• Advertising may change a person’s negative attitude.
Advertising and
Brand Loyalty
• Consumers with high brand loyalty are least susceptible to competitive ads.
• Ads reinforce positive attitudes.
Advertising and
Product Attributes
• Advertising can affect a consumer’s rank of brand attributes.
Advertising and
Market Share
• New brands spend proportionately more for advertising than old ones.
• Beyond a certain level, diminishing returns set in.
Chapter 13 Ver 2e 5
Major Types of AdvertisingMajor Types of Advertising
©2000 South-Western College Publishing
The PublicThe Public
CustomersCustomers
TypesTypesofof
AdvertisingAdvertising
TypesTypesofof
AdvertisingAdvertisingPioneeringPioneering
CompetitiveCompetitive
ComparativeComparative
ProductAdvertising
ProductAdvertising
InstitutionalAdvertising
InstitutionalAdvertising
Investment CommunityInvestment Community
EmployeesEmployees
Chapter 13 Ver 2e 6
Product AdvertisingProduct Advertising
©2000 South-Western College Publishing
PioneeringPioneeringPioneeringPioneering• Stimulates primary demand for
new product or category
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.
Chapter 13 Ver 2e 7©2000 South-Western College Publishing
Steps in Creating an Advertising CampaignSteps in Creating an Advertising Campaign
Determine the campaign objectives.
Make creative decisions. Make media decisions.
Evaluate the campaign.
Chapter 13 Ver 2e 8
Make Creative DecisionsMake Creative Decisions
“Sell the Sizzle, not the Steak”
Sell product’s benefits, not features
A benefit should answer “What’s in it for me?”
Ask “So?” to determine if a benefit
IdentifyProduct Benefits
IdentifyProduct Benefits
©2000 South-Western College Publishing
Chapter 13 Ver 2e 9
Common Advertising AppealsCommon Advertising Appeals
©2000 South-Western College Publishing
Profit Profit
HealthHealth
Love or romanceLove or romance
FearFear
AdmirationAdmiration
ConvenienceConvenience
Fun and pleasureFun and pleasure
Vanity and egotism Vanity and egotism
Environmental ConsciousnessEnvironmental Consciousness
Product saves, makes, or protects money Product 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 health Social 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 items Used for expensive or conspicuous items
Centers around environmental protectionCenters around environmental protection
Chapter 13 Ver 2e 10©2000 South-Western College Publishing
Execute the MessageExecute the Message
Mood or Image
Mood or Image
MusicalMusical
Demon-stration
Demon-stration
ScientificScientific
Real/AnimatedProductSymbols
Real/AnimatedProductSymbols
FantasyFantasy
LifestyleLifestyleSlice-of-LifeSlice-of-Life
HumorousHumorous
CommonCommonExecutionalExecutional
StylesStyles
CommonCommonExecutionalExecutional
StylesStyles
Spokes-person/
Testimonial
Chapter 13 Ver 2e 11
NewspapersNewspapers
MagazinesMagazines
RadioRadio
TelevisionTelevision
OutdoorOutdoor
InternetInternet
Alternative MediaAlternative Media
Major Types Major Types ofof
AdvertisingAdvertisingMediaMedia
Major Types Major Types ofof
AdvertisingAdvertisingMediaMedia
©2000 South-Western College Publishing
Make Media DecisionsMake Media Decisions
Chapter 13 Ver 2e 12
National Ad Spending for Media--1997National Ad Spending for Media--1997
©2000 South-Western College Publishing
Magazines
Newspapers
OutdoorTelevision
Radio
Yellow Pages Internet
Chapter 13 Ver 2e 13©2000 South-Western College Publishing
NewspapersNewspapers
AdvantagesAdvantagesAdvantagesAdvantages DisadvantagesDisadvantagesDisadvantagesDisadvantages
Year-round readership
Geographic selectivity
Immediacy
High individual market coverage
Short lead time
Limited demographic selectivity
Little color
May be expensive
Low pass-along rate
Clutter
Mass market medium
Chapter 13 Ver 2e 14©2000 South-Western College Publishing
MagazinesMagazines
AdvantagesAdvantagesAdvantagesAdvantages DisadvantagesDisadvantagesDisadvantagesDisadvantages
Good reproduction
Demographic selectivity
Regional/local selectivity
Long advertising life
High pass-along rate
Higher cost per contact
Long-term advertiser commitments
Slow audience build-up
Limited demonstration capabilities
Lack of urgency
Long lead time
Chapter 13 Ver 2e 15©2000 South-Western College Publishing
RadioRadio
AdvantagesAdvantagesAdvantagesAdvantages DisadvantagesDisadvantagesDisadvantagesDisadvantages
Selectivity and audience segmentation
Immediate and portable
Geographic flexibility
Entertainment carryover
Short-term ad commitments
No visual treatment
Short advertising life
High frequency to generate retention
Commercial clutter
Background distractions
Chapter 13 Ver 2e 16©2000 South-Western College Publishing
TelevisionTelevision
AdvantagesAdvantagesAdvantagesAdvantages DisadvantagesDisadvantagesDisadvantagesDisadvantages
Wide diverse audience
Low cost per thousand
Creative and demonstrative
Immediacy of messages
Entertainment carryover
Demographic selectivity with cable stations
Short life of message
Expensive with high campaign cost
Little demographic selectivity with network
Long-term advertiser commitments
Long lead times
Clutter
Chapter 13 Ver 2e 17©2000 South-Western College Publishing
Outdoor MediaOutdoor Media
AdvantagesAdvantagesAdvantagesAdvantages DisadvantagesDisadvantagesDisadvantagesDisadvantages
High exposure frequency
Moderate cost
Flexibility
Geographic selectivity
Broad, diverse market
Short message
Lack of demographic selectivity
High “noise” level
Chapter 13 Ver 2e 18©2000 South-Western College Publishing
Internet and World Wide WebInternet and World Wide Web
AdvantagesAdvantagesAdvantagesAdvantages DisadvantagesDisadvantagesDisadvantagesDisadvantages
Fast growing
Ability to reach narrow target audience
Short lead time
Moderate cost
Difficult to measure ad effectiveness and ROI
Ad exposure relies on “click through”
Not all consumers have access to internet
Chapter 13 Ver 2e 19©2000 South-Western College Publishing
Alternative MediaAlternative Media
Ads in Movies and Videos
Ads in Movies and Videos
Interactive KiosksInteractive Kiosks
Computer Screen Savers
Computer Screen Savers
Video Shopping CartsVideo Shopping Carts
Fax MachinesFax Machines
Examples ofExamples ofAlternative MediaAlternative Media
Examples ofExamples ofAlternative MediaAlternative Media
Chapter 13 Ver 2e 20
Media Selection ConsiderationsMedia Selection Considerations
©2000 South-Western College Publishing
Cost per ContactCost per Contact
FactorsInfluencingMedia Mix Decisions
FactorsInfluencingMedia Mix Decisions
ReachReach
FrequencyFrequency
Audience SelectivityAudience Selectivity
Chapter 13 Ver 2e 21
Types of Types of Media SchedulesMedia Schedules
Types of Types of Media SchedulesMedia Schedules
Continuous Media ScheduleContinuous Media Schedule
Flighted Media ScheduleFlighted Media Schedule
Pulsing Media SchedulePulsing Media Schedule
Seasonal Media ScheduleSeasonal Media Schedule
©2000 South-Western College Publishing
Media SchedulingMedia Scheduling
Chapter 13 Ver 2e 22©2000 South-Western College Publishing
Sales PromotionSales Promotion
ConsumerSales Promotion
ConsumerSales Promotion
Trade Sales Promotion
Trade Sales Promotion
Sales PromotionSales PromotionTargetsTargets
Sales PromotionSales PromotionTargetsTargets
Chapter 13 Ver 2e 23
Sales PromotionSales Promotion
Immediate PurchasesImmediate Purchases
Increase TrialIncrease Trial
Boost consumer inventoryBoost consumer inventory
Encourage repurchaseEncourage repurchase
Increase ad effectivenessIncrease ad effectiveness
Encourage brand switchingEncourage brand switching
Objectives Objectives ofof
Sales PromotionSales Promotion
Objectives Objectives ofof
Sales PromotionSales Promotion
Encourage brand loyaltyEncourage brand loyalty
©2000 South-Western College Publishing
Chapter 13 Ver 2e 24
Coupons and RebatesCoupons and Rebates
PremiumsPremiums
Loyalty Marketing ProgramsLoyalty Marketing Programs
Contests & SweepstakesContests & Sweepstakes
SamplingSampling
Point-of-Purchase PromotionPoint-of-Purchase Promotion
Popular ToolsPopular Toolsforfor
Consumer SalesConsumer SalesPromotionPromotion
Popular ToolsPopular Toolsforfor
Consumer SalesConsumer SalesPromotionPromotion
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
©2000 South-Western College Publishing
Chapter 13 Ver 2e 25
Consumers & Sales Promotion GoalsConsumers & Sales Promotion Goals
©2000 South-Western College Publishing
Type of Buyer Type of Buyer Type of Buyer Type of Buyer
Loyal CustomersLoyal Customers
Competitor’sCustomersCompetitor’sCustomers
Brand SwitchersBrand Switchers
Price BuyersPrice Buyers
Desired Results Desired Results Desired Results Desired Results
•Reinforce behavior• Increase consumption•Change timing
•Reinforce behavior• Increase consumption•Change timing
•Break loyalty•Persuade to switch•Break loyalty•Persuade to switch
•Persuade to buy your brand more often•Persuade to buy your brand more often
•Appeal with low prices•Supply added value
•Appeal with low prices•Supply added value
Sales PromotionSales PromotionExamples Examples
Sales PromotionSales PromotionExamples Examples
•Loyalty marketing•Bonus packs•Loyalty marketing•Bonus packs
•Sampling•Sweepstakes, contests, premiums
•Sampling•Sweepstakes, contests, premiums
•Price-lowering promotion•Trade deals
•Price-lowering promotion•Trade deals
•Coupons, price-offpackages, refunds•Trade deals
•Coupons, price-offpackages, refunds•Trade deals
Chapter 13 Ver 2e 26
Trade AllowancesTrade Allowances
Push MoneyPush Money
TrainingTraining
Free MerchandiseFree Merchandise
Store DemonstrationStore Demonstration
Conventions & Trade ShowsConventions & Trade Shows
Unique ToolsUnique Toolsforfor
Trade SalesTrade SalesPromotionPromotion
Unique ToolsUnique Toolsforfor
Trade SalesTrade SalesPromotionPromotion
Tools for Trade Sales PromotionTools for Trade Sales Promotion
©2000 South-Western College Publishing
Chapter 13 Ver 2e 27
Functions of Public RelationsFunctions of Public Relations
©2000 South-Western College Publishing
Press Relations Press Relations Press Relations Press Relations
Product PublicityProduct PublicityProduct PublicityProduct Publicity
Corporate CommunicationCorporate CommunicationCorporate CommunicationCorporate Communication
Public AffairsPublic AffairsPublic AffairsPublic Affairs
LobbyingLobbyingLobbyingLobbying
Employee and Investor RelationsEmployee and Investor RelationsEmployee and Investor RelationsEmployee and Investor Relations
Crisis ManagementCrisis ManagementCrisis ManagementCrisis Management
Chapter 13 Ver 2e 28©2000 South-Western College Publishing
Major Public Relations ToolsMajor Public Relations Tools
ToolsUsed By
PRProfessionals
ToolsUsed By
PRProfessionals
Product PlacementProduct Placement
Customer SatisfactionPhone Lines
Customer SatisfactionPhone Lines
Consumer EducationConsumer Education
Event SponsorshipEvent Sponsorship
Issue SponsorshipIssue Sponsorship
Internet Web SitesInternet Web Sites
New Product PublicityNew Product Publicity