Objectives Developing Managing an Advertising Program Deciding on Media Measuring Effectiveness Sales Promotion Public relations C2000 Prentice Hall
©2000 Prentice Hall Objectives Developing & Managing an Advertising Program Deciding on Media & Measuring Effectiveness Sales Promotion Public Relations
Advertising objectives Specific Communication Task Accomplished with a Specific Target Audience During a specific Period of Time Informative Advertising Persuasive Advertising Build Primary Demand Build selective demand Reminder Advertising Keeps Consumers Thinking About a produc C2000 Prentice Hall
©2000 Prentice Hall Informative Advertising Build Primary Demand Persuasive Advertising Build Selective Demand Comparison Advertising Compares One Brand to Another Reminder Advertising Keeps Consumers Thinking About a Product. Advertising Objectives Specific Communication Task Accomplished with a Specific Target Audience During a Specific Period of Time
Advertising Budget Factors Market Share Consumer Base Competition Stage in the Product Life Cycle Clutter Product Advertising Substitutability Frequency C2000 Prentice Hall
©2000 Prentice Hall Advertising Budget Factors Stage in the Product Life Cycle Market Share & Consumer Base Competition & Clutter Advertising Frequency Product Substitutability
Profiles of Major Media Types News papers Advantages: Flexibility, timeliness; good local market coverage broad acceptance, high believability Limitations Short life; poor reproduction quality; small pass-along audience Telev ision Advantages: Combines sight, sound, motion; high attention; high reach; appealing to senses Limitations: High absolute costs; high clutter; fleeting exposure less audience selectiv ity Direct mail Advantages: Audience selectiv ity; flexibility, no ad compe tition within same medium; allows personalization Limitations. Relative high cost; "junk maip"image C2000 Prentice Hall
©2000 Prentice Hall Profiles of Major Media Types Newspapers Advantages: Flexibility, timeliness; good local market coverage; broad acceptance, high believability Limitations: Short life; poor reproduction quality; small pass-along audience Television Advantages: Combines sight, sound, motion; high attention; high reach; appealing to senses Limitations: High absolute costs; high clutter; fleeting exposure; less audience selectivity Direct Mail Advantages: Audience selectivity; flexibility, no ad competition within same medium; allows personalization Limitations: Relative high cost; “junk mail” image
Profiles of Major Media Types Radio Advantages: Mass use; high geographic and demographic selecti low cost Limitations. Audio only; fleeting exposure; lower attention; nonstandardized rates; fragmented audiences Magazines Advantages High geographic and demographic selectiv ity credibility and prestige; high-quality reproduction; long life; good pass-along readership Limitations: Long ad purchase lead time; waste circulation; no guarantee of position Outdoor Advantages: Flexibility; high repeat exposure; low cost; low message competition Limitations. Little audience selectiv ity; creative limitations C2000 Prentice Hall
©2000 Prentice Hall Radio Advantages: Mass use; high geographic and demographic selectivity; low cost Limitations: Audio only; fleeting exposure; lower attention; nonstandardized rates; fragmented audiences Magazines Advantages: 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 Outdoor Advantages: Flexibility; high repeat exposure; low cost; low message competition Limitations: Little audience selectivity; creative limitations Profiles of Major Media Types
Advertising Strategy Message Execution Turning the"Big Idea "Into an Actual Ad to capture the Target Market's Attention and Interest. Testimonial Evidence Slice of life Scientific Lifestyle Evidence Typical Technical Message Expertise Execution Fantasy Styles Personality Mood or Symbol Image Musical C2000 Prentice Hall
©2000 Prentice Hall Advertising Strategy Message Execution Typical Message Execution Styles Testimonial Evidence Slice of Life Scientific Evidence Lifestyle Technical Expertise Fantasy Musical Personality Symbol Mood or Image Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest
Advertising Evaluation Advertising Program Evaluation Communication Effects Sales Effects Is the Ad communicating well? Is the Ad Increasing Sales? C2000 Prentice Hall
©2000 Prentice Hall Advertising Evaluation Advertising Program Evaluation Communication Effects Is the Ad Communicating Well? Sales Effects Is the Ad Increasing Sales?
Why the increase in Sales Promotion? Growing retailer power Declining brand loyalty ncreased promotional sensitivity Brand proliferation Fragmentation of consumer market Short-term focus Increased managerial accountability Competition Clutter C2000 Prentice Hall
©2000 Prentice Hall Why the increase in Sales Promotion? Growing retailer power Declining brand loyalty Increased promotional sensitivity Brand proliferation Fragmentation of consumer market Short-term focus Increased managerial accountability Competition Clutter
Long-Term Promotional Allocation 60 50 40 Trade Promo 30 MEdia Adv 820 Cons, Promo 610 0 1986889092941996 Year 02000 Prentice Hall CoX Direct 19th Annual Survey of Promotiona/ Practices
©2000 Prentice Hall Long-Term Promotional Allocation 0 10 20 30 40 50 60 1986 88 90 92 94 1996 Year %t of total - 3 yr.MA Trade Promo Media Adv Cons. Promo Cox Direct 19th Annual Survey of Promotional Practices
Channels of sales promotions MANUFACTURER Trade Push Promotions Consumer RETAILER Promotions Retail Pull Push Promotions ONSUMER C2000 Prentice Hall
©2000 Prentice Hall Channels of Sales Promotions MANUFACTURER RETAILER Trade Promotions CONSUMER Consumer Promotions Push Push Retail Pull Promotions
