Principles of
Marketing
Lecture-34
Summary
of
Lecture-33
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
Today’s Topics
Advertising (cont..)
Sales Promotion
Media Scheduling
Step 1. Decide on Reach, Frequency,
and Impact
Step 2. Choosing Among Major Media Types
Step 3. Selecting Specific Media Vehicles
Step 4. Deciding on Media Timing
Setting the timing and sequence of
a series of advertisements.
Sales patterns (seasonal),
repurchase cycles, and
competitors’ activities are the
most important variables.
Advertisers use the concepts of
reach, frequency, and gross rating
points to measure the
effectiveness of media scheduling
plans.
Reach: the number of different
people or households exposed to
an advertisement at least one
during a certain time period.
Frequency: the number of times
an individual person is exposed to
an advertisement in a certain time.
Gross rating point: reach
times frequency.
Evaluating Advertising
Effectiveness
Pretesting
Posttesting
Sales Effectiveness
Evaluations
Tools:
•Focus Groups
•Screening
•Persuasion Scores
Tools:
•Unaided Recall Tests
•Aided Recall Tests
•Inquiry Evaluations
Tools:
•Monitor Sales
•Brand-to-Sales Effects
Advertising Program Evaluation
Communication Effects
Sales Effects
Is the Ad Communicating Well?
Is the Ad Increasing Sales?
What to communicate?
Get Attention
Hold Interest
Arouse Desire
Obtain Action
Ways to Handle
Advertising
Sales Departments in
Small Companies
Advertising
Departments
in Larger Companies
Advertising Agency
Sales Promotion
Sales Promotion is a Mass
Communication Technique
That Offers Short-Term
Incentives to Encourage
Purchase or Sales of a
Product or Service.
Offers Reasons to Buy Now.
Sales Promotion
Objectives
 Increase short-term sales or help
build long-term market share.
 Get retailers to:
– carry new items and more
inventory,
– advertise products,
– give products more shelf space,
and
– buy product ahead.
In general, sales
promotion should
focus on consumer
relationship building.
Reasons for Increase in
Sales Promotion
Growing Power of Retailers
Declining Brand Loyalty
Increased Promotional Sensitivity
Fragmentation of Consumer
Markets
Short-Term Focus
Pressure from inside organization
Competition
Clutter
Major Consumer Sales
Promotion Tools
Sample
Trial amount of a product
Coupons
Savings when purchasing
specified products
Cash Refunds
Refund of part of the
purchase price
Price Packs
Reduced prices marked
on the label or package
Premiums
Goods offered free or low
cost as an incentive to buy a
product
Advertising
Specialties
Articles imprinted with an
advertiser’s name given as
gifts
Consumer Sales Promotion
Techniques
Price Deals
Advertising
Specialties
Coupons
Rebates
Sampling
CrossPromotions
Premiums
Contests, Games,
Sweepstakes
Price Deals
Cents-Off Deals
Price-Pack Deals
Major Trade Sales
Promotion Tools
Discount
Allowance
Objectives of Trade
Promotions
Avoid Price
Avoid
Price
Reductions
Reductions
Gain/Maintain
Gain/Maintain
Distribution
Distribution
Defend Against
Defend
Against
Competitors
Competitors
Influence
Influence
Reseller
Promotion
Reseller Promotion
Increase Reseller
Increase
Reseller
Inventory
Inventory
Influence
Influence
Price Discount
Price Discount
Trade Sales Promotion
Techniques
Trade Allowances
Dealer Loaders
Trade Contests
Point-of-Purchase Displays
Trade Shows
Training Programs
Push Money
Developing the
Sales Promotion
Program
Decide on the Size of the Incentive
Set Conditions for Participation
Determine How to Promote and
Distribute the Promotion Program
Determine the Length of the Program
Evaluate the Program
Sales Promotion
Uses
Introduce new products
Get existing customers to buy more
Attract new customers
Combat competition
Maintain sales in off season
Increase retail inventories
Tie in advertising and personal selling
Enhance personal selling efforts
Limitations of Sales
Promotion
Cannot Reverse Declining
Sales Trend
Cannot Overcome Inferior
Product
May Encourage Competitive
Retaliation
May Hurt Profit
Enough for
today. . .
Summary
Media Scheduling
Step 1. Decide on Reach, Frequency,
and Impact
Step 2. Choosing Among Major Media Types
Step 3. Selecting Specific Media Vehicles
Step 4. Deciding on Media Timing
Evaluating Advertising
Effectiveness
Advertising Program Evaluation
Communication Effects
Sales Effects
Is the Ad Communicating Well?
Is the Ad Increasing Sales?
Sales Promotion
Major Consumer Sales
Promotion Tools
Major Trade Sales
Promotion Tools
Developing the
Sales Promotion
Program
Decide on the Size of the Incentive
Set Conditions for Participation
Determine How to Promote and
Distribute the Promotion Program
Determine the Length of the Program
Evaluate the Program
Next….
Personal Selling
Principles of
Marketing
Lecture-34