A. Popisakov
Chapters 10-12. PPROMOTION:
PRINCIPLES OF MARKETING
Communication Tools
Topics 09-10
List of Topic
Promotion:
1. Types of advertising
2.Formulating the advertising message
1 Marketing Communication Theory
1.
2. Marketing Promotional Tools
3. Advertising media
4. Using advertising agencies
5. Developing an advertising campaign
6. Personal selling: definition, role and task
Assoc. Prof. A. Popissakov
2011-2012
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7. The personal selling process
8. Sales management
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Types of Advertising
1. Types of Advertising
Within the promotional mix advertising conforms
to two basic types:
A. Product orientated
B. Institution orientated
1. Product-oriented advertising
– Focuses
Foc ses on prod
product
ct or ser
service
ice offered.
offered
2. Institutional advertising
– Not product specific.
– Aims to build reputation and image.
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B. Institutional -oriented
Advertising
A. Product-oriented Advertising
Three basic sub-types:
Three basic sub-types:
1. Pioneering advertising
1. Pioneering advertising
¾ explain a new product, new benefits
¾ info on new developments
2 Image
2.
I
b
building
ildi advertising
d ti i
¾ create/reinforce image of organization
3. Advocacy advertising
¾ communicate a view on an issue
E.g. Lidl chain stores opening campaign
2. Competitive advertising
¾ emphasizes unique benefits
¾ compare with competition
3. Reminding/Reinforce advertising
¾ remind product
¾ reinforce benefits
¾ encourage repeat buying
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2. Formulating the Advertising
Message
Formulating the Advertising Message
™ Message heart - Marketing and
Creative Appeals
™ Product-oriented appeals are centred on features
or attributes. They emphasise the problem-solving
characteristics or the way in which a product can
enhance a customer's lifestyle.
™ Customer-oriented appeals focus on what the
consumer gains by using the product.
promotional objectives.
™ Message design - to prepare an informative
andd persuasive
i message in
i terms off words,
d
symbols and illustrations.
™ Message content - formulation of the
creative task appeals.(conceptualisation of
messages)
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What creative appeal is encapsulated in each
promotional feature?
E.g. Typical car advertisement
ƒSoft leather, gleaming chrome
-a car for drivers who surround
themselves with luxury
Customer appeal
(Image and self
esteem appeal)
¾The emphasis on
luxury promotes the
psychological
benefits to owning
the car.
Product-oriented appeal
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ƒComes with 15-inch alloy wheel
¾is centred on one of
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the features of the car
- in this case, its alloy
wheels.
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What creative appeal is encapsulated in each
promotional feature?
ƒComprehensive safety system
includes front and side airbags
ƒFitted with the latest Venon
anty-theft system
3. Advertising Media
Safety and Fear
avoidance appeal
¾This is very powerful,
but marketers must be
careful not to generate
too much fear.
Usage benefits
ƒOutstanding fuel efficiency and
low carbon dioxide emissions
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¾efficiency is important
™ Advertising media deliver the promotional
message to the consumer.
™ The advertiser should choose the most
appropriate
i medium
di
f the
for
h message and
d its
i
target market, given the constraints of the
promotional budget.
to a customer who is keen
to save money and
energy.
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Types of Media
Some Definitions
Fill (2002) defined some terms commonly used to describe
advertising media.
Reach
Percentage target market that is exposed to the message.
Ratings
Also called TVRs.
TVRs Measure the percentage of households that
own a TV who are viewing at a particular time.
Frequency
Average number of times customers will be exposed to a
particular message.
(OTS) Opportunity to see
Describes how many times an average viewer will have an
opportunity to see an advertisement.
Divided into 2
classes:
™Broadcast
media
™Print media
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Which is the most
widely used class
for advertising???
Key Features of Television
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Key Features of Radio
™ Valuable supportive role to television and
print.
™ Combines sound, colour, motion and
™ Can deliver fairly precise messages to
entertainment.
™ Grabs attention.
™ High-cost, low-involvement medium.
™ Wide coverage, but high wastage.
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specific
ifi audiences.
di
( ffi situation)
(traffic
i i )
™ Lower cost than television.
™ High-frequency medium.
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Key Features of Magazine
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Key Features of Newspaper
™ Information can be presented and examined
™ Communicates information quickly and
selectively.
™ Specialist focus possible.
™ Powerful advantage over broadcast media:
mood of reader is likely to be receptive.
™ Long life.
flexibly.
™ Large audience.
™ Low-cost efficiency.
™ Advertisements can be classified or display.
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Key Features of Outdoor and ambient
media
Key Features of Cinema
™Can reach selected, but captive
Includes posters, boardings, transport-oriented media
and ambient media.
™ Static location means small reach but high
g
frequency.
™ Can be affected by unpredictable elements, such as
weather or graffiti
audiences.
™Secondary advertising medium.
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Key Features of Internet
Seven Criteria for selecting an advertising agency
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7 Criteria for selecting an ad agency
1. Relative size
The size of the client should match that of the
agency.
2. Type of help
Do we need the agency to provide a full service,
service
integrated service or specialised knowledge?
3. Business ability
Research and planning capabilities - will the agency
deliver on time and within budget?
4. Compatibility
The agency should have empathy for the advertising
goals of the company.
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4. Using Advertising Agencies
Advantages:
™ Strong appeal for young people
™ High penetration with this target group
™ Dramatic impact
p similar to television
Disadvantages:
™ Sometimes too boring
™ The target audience seeks out the message rather
than the other way round
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Criteria for selecting an ad agency
5. Track record
Knowledge of the agency's past performance
indicates whether it is on the up.
6. Location
A small agency may provide local knowledge.
knowledge If
regular meetings with the agency are required, one
located close to the business will provide the most
accessibility.
7. Specialism
A specialist agency can be a bonus if it has thorough
knowledge of the company's market. However,
they may also be working for the competition.
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5. Developing an
Advertising
Campaign
Developing an Advertising Campaign
Campaign responsibilities –Who is responsibbe?
™ product or brand manager in a product-based
marketing organisation,
™ advertising and promotion manager in a
functionally organised organisation.
Target audience
™ The market segment and target audience may be
the same. Sometimes the target audience may be a
subdivision of the segment.
Stages in the
development
of an
advertising
campaign
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Developing an Advertising Campaign
Developing an Advertising Campaign
Campaign objectives
™ communication objectives planned
Budget setting
™ Methods
M th d iinclude
l d judgement,
j d
t competitive
titi parity,
it
object and task budgeting.
Media selection and planning
™ media strategy include the target audience,
competitive factors, geographic focus, budget
constraints and timing.
Advertising development and testing
™ At this stage the advertisements are ready for
broadcast or print.
™ The production process often includes pre-testing
of the ads and advertising concepts.
™ Before release the ad needs to survive some
careful questioning, such as "is it believable", "is it
informative?", etc.
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Developing an Advertising Campaign
Developing an Advertising Campaign
Implementation and scheduling
The marketing manager coordinates the activities of :
– graphic designer,
– photographers,
h t
h
– media and production companies
– other professionals involved in producing and
delivering the ad campaign.
Evaluation
™ This is a critical stage of the process. It exists not
only to assess the effectiveness of the campaign
mounted, but also to provide valuable learning for
the future.
™ There are two stages: interim evaluation (midcampaign, to check the desired effect is
happening) and exit evaluation.
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6. Personal Selling:
Definition, Role and Tasks
Key characteristics of personal selling
™ Impact: it is hard to turn a salesperson away from your
Personal selling is defined as:
™ An interpersonal communication tool which
involves face to face activities undertaken by
individuals, often representing an organisation, in
order to inform, persuade or remind an individual
or group to take appropriate action, as required
by the sponsor's representative.
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Tasks of Personal Selling
door.
™ Precision:
– targeting precision: it is easy to identify and approach
customers as individuals, and
– message precision: the communication can continue
until both parties are absolutely clear about the shared
meaning.
™ Cultivation: creation of long-term buyer-seller
relationships. Salespeople are crucial to relationship
marketing, since they put a human face on the company.
™ Cost: personal selling can seem expensive because it is
labour intensive. In some firms, personal selling takes the
bulk of the promotional budget.
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The Personal Selling Process
Personal selling has evolved into a professional career.
™The buyer-seller relationship is key to personal
selling. The buyer has a choice over supplier, so
the seller must persuade the buyer to choose the
product package on offer. The way in which the
seller does this is through the personal selling
process. This process is divided into a number of
stages, the duration of each stage varying
according to product and market.
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The Personal
Selling Process
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Sales Management
Sales managers exist to create the right conditions
for sales people to be able to carry out the real
work of selling.
Stages
in the
Personal
selling
process
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Sales Manager’s Activities
Sales Manager’s Activities
Planning and strategy
Sales objectives are drawn up from the
organisation's marketing objectives.
The sales plan outlines the way in which the sales
objectives
bj ti
will
ill be
b achieved.
hi d
Setting targets for each sales person and agreeing
the methods for reaching those targets.
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Planning and strategy
The sales manager is responsible for:
Structuring the sales force.
– Sales people may be organised by geography,
product, customer type or customer importance.
– The size of the sales force must also be
determined.
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Sales Manager’s Activities
Sales Manager’s Activities
Recruitment and selection
Recruitment of sales representatives begins with the
creation of a person profile.
A key decision is whether or not to recruit staff with
previous
i
experience.
i
The selection process assesses candidates'
suitability for the role.
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Training
Training may be
™ Formal (carried out by specialists, investing time
and money)
™ Informal (on-the-job instructions).
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Performance evaluation
Assessment of a sales representative's performance
can be:
Motivation and compensation
A well-defined career path can be a means of
motivation.
Compensation takes three forms:
™ salary,
™ commission, or
™ salary plus commission.
quantitative: measuring input or output
qualitative: evaluating attitude, appearance,
communication.
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Sales Manager’s Activities
Sales Manager’s Activities
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5. Marketing communication media
Marketing Communication Mix
One of the basics of communications is the
selection of media to be used to transmit the
communication to the target group. In
general media can be split into two
categories:
™ personal channels and
™ non-personal channels
It does not matter whether the company is
™ production
™ product
™ selling or
™ marketing oriented,
it will at some time use one, or perhaps a
combination, of these elements of the
promotion mix.
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Types of Personal channels
Marketing Communication Mix
Five factors of promotional (communication)
mix:
™ Non personal Channels
1 Advertising
1.
2. Publicity, (PR)
3. Sales promotion
4. Direct marketing
™ Personal Channels
5. Personal selling.
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Personal channels for marketing
communications can include
™ internal company communications;
™ personall selling;
lli
™ personalised marketing telesales/telemarketing, direct mail;
™ trade fairs and exhibitions.
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Personal channels –
Advantages/Disadvantages
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Non-personal channels
A major advantages
™ element of personal contact
™ reaction of the recipient,
™ depending on the feedback
™ quickly amend the approach
™ chance to be both heard and understood.
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™ commercial television;
™ the press and other print media;
™ radio; cinema;
™ outdoor media;
™ point-of-sale displays;
™ packaging
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The press and other print media
Commercial television
™ Satellite television
™ Newspapers (both local and national);
™ The cable networks
™ magazines;
™ teletext
™ directories;
™ year books
™ Data bases
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Point-of-sale displays
Outdoor media
™ opportunity to see (OTS)
™ posters
Point-of-sale material can include all or only a
selection of the following:
™ billboards
™ shelf edging;
™ Transport advertising
™ dummy packs;
™ parking meters and litter bins
™ display packs;
™ balloons
™ display stands;
™ Airships and aircraft with trailing banners
™ mobiles; and posters
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Packaging
Packaging
™ Packaging, which is sometimes called the
'silent salesman', is the ultimate point-ofsale communication tool.
™ non-personall channel
h
l off communication,
i ti
which has become an increasingly
important part of the communications mix.
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The packaging of a product involves the following
functions:
™ 1 Give protection.
™ 2 Contain the product.
™ 3 Be convenient.
™ 4 Give information.
™ 5 Have display advantages.
™ 6 Convey any brand image.
™ 7 Be seasonable when appropriate.
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The End
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