Marketing 333

Chapter 15:Advertising and Sales Promotion

Advertising

A persuasive message carried by a nonpersonal medium and paid for by an

identified sponsor.

Two types: Product advertising Institutional advertising

Product Advertising

Advertising promoting a specific product.

Two types: Direct-action advertisement:

stimulates immediate purchase Indirect-action advertisement:

stimulates sales over the long run.

Institutional Advertising

Advertising designed to Advertising designed to promote an organizational promote an organizational image or to build goodwill. image or to build goodwill.

Example:Example:

GE’s “We bring good things to GE’s “We bring good things to light.”light.”

Some Specific Advertising Objectives Might Include:

Sales lead generation

Increasing brand awareness

Increasing repeat purchases

Increasing consumption by current users

Advertising Objectives and Product Life Cycle

Primary demand: demand for the product class as a whole.• Example: “Behold the

power of cheese.” Selective demand:

aimed at stimulating demand for a particular brand.• Examples: Kraft

Advertising Objectives and Product Life Cycle

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Introduction Growth Maturity DeclineConception

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Introduction Growth Maturity DeclineConception

SA

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ScreenScreenconceptsconcepts

PrimaryPrimarydemanddemandadvertisingadvertising

ExtensiveExtensiveadvertisingadvertisingspendingspending

Reminder &Reminder &emotionalemotionaladvertisingadvertising

MinimalMinimalif anyif any

Creative Strategy

Creative process: generation of ideas and development of the advertising message or concept.

Need to plan: The Appeal (central idea)

• Theme

The Execution (how to say it)

Advertising Execution

Execution format: style in which the advertisement message is delivered.

Types of execution formats: Storyline Product uses and problem solutions Slice of life Demonstration Testimonial

Advertising Execution

Types of execution formats (cont.) Lifestyle Still life Association Montage Jingle

When developing media strategy, answer these two questions:

Which media will effectively and efficiently get the message to the desired audience?

What scheduling of these media will neither bore nor allow people to forget?

Media Advantages/Disadvantages

Newspapers:

+ Convenient & quick

- Poor quality of print

Magazines:

+ Long-life ad

- Clutter

Media Advantages/Disadvantages

Television:

+ Audio-visual

+ Very high reach

- Expensive & perishable

Radio:

+ Flexible

+ Inexpensive

- Clutter & perishable

Media Advantages/Disadvantages

Internet/On-line Services:

+ Inexpensive

+ High reach: worldwide

- Cannot reach non-computer users

Outdoor ads

+ High reach & frequency

+ Inexpensive

- Brevity of message

Media Advantages/Disadvantages

Direct mail:

+ Highly selective

+ Lengthy copy possible

- Limited reader interest

Creating a Media Plan

Reach Frequency Gross Rating Points

Measuring Advertising

Pretesting:• Focus groups

• Quantitative studies

Posttesting:• Recall tests

• Changes in attitudes

• Generating inquiries

• Sales performance

Ethical Issues in Advertising

Deceptive Advertising• Misleading advertising

• Bait-and-switch

• Puffery

Public Standards Quality of Children’s Lives

Sales Promotion

Objective: to bolster or complement other elements of the promotional mix during a

specific time period.

Can be targeted toward: Sales force Wholesalers and retailers Consumers

Sales Promotion toward Wholesalers and Retailers

Trade shows Contests Display equipment Cooperative Advertising and Promotions Allowances

Sales Promotion toward Wholesalers and Retailers

Trade show: meeting or convention of members of a particular industry.

Contest: offering bonuses or prizes for sales performance in order to motivate a sales force.

Sales Promotion toward Wholesalers and Retailers

Point-of-purchase:Point-of-purchase: Promotional items which Promotional items which attract attention at the attract attention at the places where products are places where products are purchased.purchased.

Cooperative advertising:Cooperative advertising: paid for jointly by supplier paid for jointly by supplier and retailer.and retailer.

Sales Promotion toward Wholesalers and Retailers

Allowances:Allowances: reduction in reduction in price or a rebate given to price or a rebate given to a marketing intermediary a marketing intermediary in return for a larger in return for a larger order.order.

Sales Promotion toward Consumers

Product sampling:Product sampling: samples given to samples given to consumers to try the consumers to try the product.product.

Coupons:Coupons: reduction in reduction in price given in the form price given in the form of a certificate.of a certificate.

Sales Promotion toward Consumers

Rebates:Rebates: portion of the portion of the price is returned to the price is returned to the purchaser.purchaser.

Contests and Sweepstakes:Contests and Sweepstakes:

Contests: consumer Contests: consumer must performmust perform

Sweepstakes: lotterySweepstakes: lottery

Sales Promotion toward Consumers

Premiums:Premiums: product offered product offered free or at reduced charge free or at reduced charge if another product is if another product is purchased.purchased.

Multiple Purchase Offers:Multiple Purchase Offers: two-for-one or other two-for-one or other multiple purchase tied to multiple purchase tied to lower price or other lower price or other promotion.promotion.

Sales Promotion toward Consumers

Product placements:Product placements: conveying a conveying a noncommercial message by having a product noncommercial message by having a product appear in a movie or TV show.appear in a movie or TV show.

Tie-ins:Tie-ins: collaborative effort between two or more collaborative effort between two or more organizations in a promotional effort.organizations in a promotional effort.