Principles of
Marketing
Lecture-33
Summary
of
Lecture-32
Promotion and
Its Goals
Informs
Builds Relationships
Persuades
Reminds
The Marketing
Communications
Mix
Advertising
Any Paid Form of Nonpersonal Presentation by an
Identified Sponsor.
Personal Selling
Personal Presentations by a
Firm’s Sales Force.
Sales Promotion
Short-term Incentives to
Encourage Sales.
Public Relations
Building Good Relations with
Various Publics by Obtaining
Favorable Unpaid Publicity.
Direct Marketing
Direct Communications With
Individuals to Obtain an
Immediate Response.
The Communication
Process
Source
Encoding
Message
Channel
Noise
Feedback
Decoding
Receiver
Steps in Developing
Effective
Communication
AIDA Model
Attention
Interest
Desire
Action
Today’s Topics
Advertising
Any paid form of nonpersonal presentation
by an identified
sponsor.
Any form of non-personal
communication paid for by sponsor
using mass media to persuade/inform
an audience
– Products/Services
– Public Service Advertising
– Non-profit org.
– People (political candidates,
celebrities)
– Places (retail outlets, vacation
destinations)
Objectives
Inform: new product, new uses,
price changes
Persuade: encourage switching,
purchase now, change
perceptions
Remind: where to buy, may
need in future, top of mind in
off-season
Too Much
Clutter!!!
 Television:
networks, cable,
satellite dishes
 Print:
magazines, newspapers,
junk mail
 Radio:
fragmented audiences,
“on the more popular stations,
your ads are sandwiched with four
other ads.”
 Billboards,
Internet …
Problem…
How do you get the
attention of the
audience????
Break Through
the Clutter with
Impact
Advertising
 Humor appeal
 Emotional appeal
 Moral appeal
 Celebrity appeal
 Sensory appeal
 Rational appeal
Steps to Creating an
Effective Advertising
Campaign
1) Define your target market
2) Determine their needs from your
product
- functional
- emotional
3) Develop an advertisement that
creates an image for your product
that is sought by your target
market (positioning)
The Five M’s of
Advertising
Message
Money
Message generation
Factors to
consider:
Message evaluation
and selection
Mission
Stage in PLC
Message execution
Sales
goals
Market share
and consumer base
review
Advertising
objectives
Competition
and clutter
Advertising
frequency
Product
substitutability
MeasureSocial-responsibility ment
Media
Reach, frequency,
impact
Major media types
Specific media
vehicles
Media timing
Geographical
Communi
cation
impact
Sales
impact
Major Advertising
Decisions
Objectives Setting
Budget Decisions
Message Decisions
Media Decisions
Campaign Evaluation
Message Decisions
•Message Strategy
•Message Execution
Objectives
Setting
•Communication
objectives
•Sales Objectives
Budget
Decisions
•Affordable
Approach
•Percent of sales
•Competitive parity
•Objective and task
Campaign Evaluation
•Communication Impact
•Sales Impact
Media Decisions
•Reach, Frequency, Impact
•Major Media Types
•Specific Media Types
•Media Timing
Advertising
Objective
Informative Advertising
Persuasive Advertising
Reminding Advertising
Setting Message Goals
Increasing
Brand
Awareness
Increasing Sales
Changing the
by a Certain
Image of a Recognizing a
Percentage
Product
Need for the
Product
Setting Budget Goals
Setting the
Advertising Budget
Product
Differentiation
Advertising
Frequency
Stage in the Product
Life Cycle
Factors in
Setting the
Advertising
Budget
Competition
and Clutter
Market
Share
Affordable
Method
CompetitiveParity
Method
Percentageof-Sales
Method
Objectiveand-Task
Method
Developing Advertising
Strategy
 Message Decision
 Media Decision
Creating the
Advertising Message
Plan a Message Strategy
General Message to Be Communicated to Customers
Develop a Message
Focus on
Customer Benefits
Creative Concept
“Big Idea”
Visualization or Phrase
Combination of Both
Advertising Appeals
Meaningful
Believable
Distinctive
Message Execution
– Slice of Life
– Lifestyle
– Fantasy
– Mood or image
– Musical
– Personality symbol
– Technical expertise
– Scientific evidence
– Testimonial evidence
Design the Ad
Humorous
Appeals
Unique Selling
Proposition
Comparative
Advertising
Sex Appeals
Advertising
Appeals
Fear Appeals
Demonstration
Testimonial
Lifestyle
Slice-of-Life
Choose the Media
Television
Yellow Pages
Newspaper
Magazine
Major
Kinds of
Media
Direct Mail
Outdoor
Radio
Internet
Television
 Recent trend is the
growth of cable
television
advertisements.
 Marketers can now
target audiences
through special interest
channels. (Food
network, home and
garden, etc).
Radio
With commute times
growing, radio
advertising revenues
are growing faster
than any other
media.
Very easy to target
your audience.
Print
Consumer and business
publications.
Can specifically target your market.
Marketers carefully study
subscription rates and
demographic data for each news
paper/magazine.
Outdoor
Advertising
Billboards, painted bulletins or
displays (such as those that appear on
the walls of buildings,) and electric
spectaculars
Can be local, regional, or national
 Outdoor advertising is effective along
metropolitan streets and in other hightraffic areas
Other Advertising
Media
Transit advertising: ads placed both
inside and outside of buses, subway
trains and stations, and commuter
trains
Cinema advertising
Ads on telephone booths and park
benches
Ads can be printed in programs of livetheater productions
Directory advertising (yellow pages)
Hot air balloons, blimps, banners
behind planes, and scoreboards
Enough for
today. . .
Summary
Advertising
The Five M’s of
Advertising
Message
Money
Message generation
Factors to
consider:
Message evaluation
and selection
Mission
Stage in PLC
Message execution
Sales
goals
Market share
and consumer base
review
Advertising
objectives
Competition
and clutter
Advertising
frequency
Product
substitutability
MeasureSocial-responsibility ment
Media
Reach, frequency,
impact
Major media types
Specific media
vehicles
Media timing
Geographical
Communi
cation
impact
Sales
impact
Major Advertising
Decisions
Objectives Setting
Budget Decisions
Message Decisions
Media Decisions
Campaign Evaluation
Choose the Media
Television
Yellow Pages
Newspaper
Magazine
Major
Kinds of
Media
Direct Mail
Outdoor
Radio
Internet
Next….
Advertising (cont..)
Sales Promotion
Principles of
Marketing
Lecture-33