WEEK 8 DISCUSSIONIAN MUSYA CAROLINE MELLY

LABAN BORE PHILIP KETER

DISCUSSION AGENDA

1. DEFINE THE ROLE OF ADVERTISING IN THE PROMOTION MIX.

2. DESCRIBE THE MAJOR DECISIONS INVOLVED IN DEVELOPING AN ADVERTISING

PROGRAM.

INTRODUCTION

• ACCORDING TO MARKETING MIX 2009, PROMOTION IS ONE OF THE 4PS & IT

SERVES TO CREATE A PICTURE IN THE MIND OF THE BUYER FURTHER AROUSES A

DEMAND FOR AN OFFERING.

• PROMOTION MIX ELEMENTS INCLUDE PUBLIC RELATION, ADVERTISING, SALES

PROMOTION AND PERSONAL SELLING.

• ADVERTISING IS ANY PAID FORM OF NON-PERSONAL PRESENTATION AND

PROMOTION OF AN OFFERING. IT IS DONE VIA BROCHURES, SIGNS,

COMMERCIAL, DIRECT MAILINGS, AND PERSONAL CONTACT.

STEPS TO AN ADVERT

Setting

Advertising

Objectives

Setting the

Advertising

Budget

Developing

Advertising

Strategy

Evaluating

Advertising

Effectiveness and

Return on

Advertising

Investment

ROLE/OBJECTIVE OF ADVERTISING

Informative

Informs buyers of new offerings, recent developments, on going sales offers, change in prices or name brand i.e. KREP bank, AIG insuranceGovernments run health, political, social campaigns to inform the citizens of the country on the current developments e.g. Polio campaigns in Africa

Persuasive Main aim of such role is to increase demand for a particular offering.Demonstrate value to potential customers for example Arial powder soapwash tough stains.Not only does it create demand but also increase brand loyalty.

Comparative

It is normally achieved by combining the persuasive role for example Arial will compare its performance with other soaps and in the end they fail to clean well as Arial.It not only informs the audience but also shows the supremacy of one product over the other.

Reminder This is to reinforces initial promotional information. Names of product or public response are used to remind the customers of the existence of a product. It is employed mostly by businesses that are at their maturity stage

ADVERTISING BUDGET AND OTHER RESOURCES

• DEPENDING ON THE STAGE OF THE COMPANY IN THE PRODUCT LIFE CYCLE, THE

LEVEL OF ALLOCATION OF FUNDS AND RESOURCES WILL VARY.

• NEW OFFERINGS REQUIRE MORE FUNDS SO AS TO RESEARCH THE OBJECTIVE OF

CREATING AWARENESS.

• OFFERING BRAND AT MATURITY STAGE WILL NORMALLY REQUIRE LOWER

BUDGETS AS A RATIO TO SALES.

• IN A COMPETITIVE MARKET WHERE THERE ARE MANY SUBSTITUTE OFFERING FOR

THE BUYER, HEAVILY ADVERTISING IS NEEDED.

ADVERTISING COST PASSED TO THE BUYER

MARKET SHARE

A BUSINESS TO BUSINESS

REQUIRES WAY LESS

ALLOCATION OF RESOURCES

AND EFFORT IN ADVERTISING

AS COMPARED TO BUSINESS

TO CUSTOMER KIND OF

MARKETS. FURTHERMORE, IN

VERY COMPETITIVE MARKETS

BUSINESS REQUIRE TO SPEND

MORE IN ORDER TO REMAIN

RELEVANT UNLIKE WHERE THE

COMPETITION IS LOW.

DEVELOPING ADVERTISING STRATEGY

• ADVERTISING STRATEGY IS THE STRATEGY BY WHICH THE COMPANY

ACCOMPLISHES ITS ADVERTISING OBJECTIVES. IT CONSISTS OF TWO MAJOR

ELEMENTS: CREATING ADVERTISING MESSAGES AND SELECTING ADVERTISING

MEDIA.

• MESSAGES SHOULD BE PLAIN, OUTLINES OF BENEFITS AND POSITIONING POINTS

THAT THE ADVERTISER WANTS TO STRESS.

• MARKETERS SHOULD DETERMINE THE AUDIENCE, FREQUENCY AND IMPACT

THEN CHOOSE AN EFFECTIVE VEHICLES THROUGH WHICH ADVERTISING

MESSAGES ARE DELIVERED TO THEIR INTENDED AUDIENCES.

EVALUATING ADVERTISING

• MEASURING EFFECT OF ADVERTISEMENTS IS DONE THROUGH COMPARING THE

SALES AND PROFIT AFTER AND BEFORE THE USE OF ADVERTISING MEDIA.