Objectives
Developing & Managing an Advertising
Program
 Deciding on Media & Measuring
Effectiveness
 Sales Promotion
 Public Relations

©2000 Prentice Hall
Major Decisions in Advertising
Objectives Setting
Budget Decisions
Message Decisions
Media Decisions
Campaign Evaluation
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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
Comparison Advertising
Reminder Advertising
Compares One Brand to
Another
Keeps Consumers Thinking
About a Product.
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The Five Ms of Advertising
Message
Mission
Sales
goals
Advertising
objectives
Money
Message generation
Factors to
consider:
Message evaluation
and selection
Stage in PLC
Message execution
Market share
and consumer base
Competition
and clutter
Advertising
frequency
Product
substitutability
©2000 Prentice Hall
Social-responsibility
review
Media
Reach, frequency,
impact
Major media types
Specific media
vehicles
Media timing
Geographical
media allocation
Measurement
Communication
impact
Sales
impact
Advertising Budget Factors
Market Share &
Consumer Base
Stage in the
Product Life Cycle
Product
Substitutability
©2000 Prentice Hall
Competition &
Clutter
Advertising
Frequency
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
©2000 Prentice Hall
Profiles of Major Media Types
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
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Classification of
Advertising Timing Patterns
Concentrated
Level
(1)
Rising
(2)
Falling Alternating
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(9)
(10)
(11)
(12)
Continuous
Intermittent
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Month
Number of
messages
per month
Simplified Rating Sheet for Ads
(Attention) How well does the ad catch
the reader’s attention?
(Read-through) How well does the
ad lead the reader to read further?
(Cognitive) How clear is the
central message or benefit?
(Affective) How effective is
the particular appeal?
(Behavior) How well does the
ad suggest follow-through action?
0
20
Poor
ad
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40
60
Mediocre Average
ad
ad
80
Good
ad
100
Great
ad
__20
__20
__20
__20
__20
__Total
Advertising Strategy
Message Execution
Turning the “Big Idea” Into an Actual Ad to Capture the
Target
Market’s Attention and Interest.
Testimonial
Slice of Life
Evidence
Scientific
Evidence
Technical
Expertise
Personality
Symbol
Lifestyle
Typical
Message
Execution
Styles
Musical
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Fantasy
Mood or
Image
Advertising Evaluation
Advertising Program Evaluation
Communication Effects
Sales Effects
Is the Ad Communicating Well?
Is the Ad Increasing Sales?
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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

©2000 Prentice Hall
%t of total - 3 yr.MA
Long-Term Promotional
Allocation
60
50
40
30
20
10
0
Trade Promo
Media Adv
Cons. Promo
1986
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88
90
92
94
1996
Year
Cox Direct 19th Annual Survey of Promotional Practices
Channels of Sales Promotions
MANUFACTURER
Push
Trade
Promotions
RETAILER
Push
Retail
Promotions
CONSUMER
©2000 Prentice Hall
Consumer
Promotions
Pull
Consumer Promotion
Consumer-Promotion
Objectives
Entice Consumers to
Try a New Product
Lure Customers Away
From Competitors’ Products
Get Consumers to “Load Up’
on a Mature Product
Hold & Reward Loyal
Customers
Consumer Relationship
Building
Consumer-Promotion
Tools
Samples
Coupons
Cash Refunds
Advertising
Specialties
Patronage
Patronage
Rewards
Rewards
Contests
Price Packs
Premiums
Sweepstakes
Games
Point-of-Purchase
Displays
©2000 Prentice Hall
“Deal Proneness,”
Liechtenstein, Burton, & Netemeyer,
Journal of Retailing, Summer 1997
Examination of “deal proneness” among
consumers in a supermarket setting
 Surveys & Grocery Receipts used
 Eight types of deals:
 Cent-off, One-free, Gift, Display,
Rebate, Contest, Sale, & Coupon

©2000 Prentice Hall
“Deal Proneness,”
Liechtenstein, Burton, & Netemeyer
Cluster analysis yielded two interpretable
results:
 49% are “deal prone,” 51% not
 24% High “Deal prone,” 50%
intermediate, 26% deal insensitive
 “Deal-proneness” a generalized
construct - (crosses type of promotion)
 Younger & Less educated more likely to
be deal prone
©2000 Prentice Hall
Trade Promotions
Trade-Promotion
Objectives
Trade-Promotion
Tools
Persuade Retailers or
Wholesalers to Carry a Brand
Price-Offs
Premiums
Give a Brand Shelf Space
Allowances
Patronage
Displays
Rewards
Promote a Brand in
Advertising
Buy-Back
Guarantees
Discounts
Push a Brand to Consumers
Free Goods
Contests
©2000 Prentice Hall
Push Money
Specialty
Advertising
Items
Business-to-Business
Promotion
Business-Promotion
Objectives
Generate Business Leads
Stimulate Purchases
Reward Customers
Motivate Salespeople
©2000 Prentice Hall
Business-Promotion
Tools
Conventions
Trade Shows
Sales Contests
Major Public Relations Tools
Web Site
Public
Service
Activities
News
Speeches
Corporate
Identity
Materials
Audiovisual
Materials
©2000 Prentice Hall
Written
Materials
Special
Events
Taco Bell has
purchased the
Liberty Bell!
©2000 Prentice Hall
Review
Developing & Managing an Advertising
Program
 Deciding on Media & Measuring
Effectiveness
 Sales Promotion
 Public Relations

©2000 Prentice Hall