Marketing 333
Chapter 15:
Advertising and
Sales Promotion
Advertising
A persuasive message carried by a
nonpersonal medium and paid for by an
identified sponsor.
Two types:
 Product advertising
 Institutional advertising
Product Advertising
Advertising promoting a specific
product.
Two types:
 Direct-action advertisement:
stimulates immediate
purchase
 Indirect-action advertisement:
stimulates sales over the long
run.
Institutional Advertising
Advertising designed to
promote an organizational
image or to build goodwill.
Example:
GE’s “We bring good things to
light.”
Some Specific Advertising
Objectives Might Include:




Sales lead
generation
Increasing brand
awareness
Increasing repeat
purchases
Increasing
consumption by
current users
Advertising Objectives and Product
Life Cycle

Primary demand:
demand for the product
class as a whole.
•

Example: “Behold the
power of cheese.”
Selective demand:
aimed at stimulating
demand for a particular
brand.
•
Examples: Kraft
Advertising Objectives and Product
Life Cycle
SALES
40
35
30
25
20
15
10
5
0
Conception
Screen
concepts
Introduction
Primary
demand
advertising
Growth
Maturity
Decline
Extensive
Reminder &
advertising emotional
spending
advertising
Minimal
if any
Creative Strategy
Creative process: generation of ideas and
development of the advertising message
or concept.
Need to plan:
 The Appeal (central idea)
• Theme

The Execution (how to say it)
Advertising Execution
Execution format: style in which the
advertisement message is delivered.
Types of execution formats:
 Storyline
 Product uses and problem solutions
 Slice of life
 Demonstration
 Testimonial
Advertising Execution
Types of execution formats (cont.)
 Lifestyle
 Still life
 Association
 Montage
 Jingle
When developing media strategy,
answer these two questions:


Which media will
effectively and
efficiently get the
message to the
desired audience?
What scheduling of
these media will
neither bore nor
allow people to
forget?
Media
Advantages/Disadvantages
Newspapers:
+ Convenient & quick
- Poor quality of print
Magazines:
+ Long-life ad
- Clutter
Media
Advantages/Disadvantages
Television:
+ Audio-visual
+ Very high reach
- Expensive & perishable
Radio:
+ Flexible
+ Inexpensive
- Clutter & perishable
Media
Advantages/Disadvantages
Internet/On-line Services:
+ Inexpensive
+ High reach: worldwide
- Cannot reach noncomputer users
Outdoor ads
+ High reach & frequency
+ Inexpensive
- Brevity of message
Media
Advantages/Disadvantages
Direct mail:
+ Highly selective
+ Lengthy copy possible
- Limited reader interest
Creating a Media Plan



Reach
Frequency
Gross Rating Points
Measuring Advertising

Pretesting:

Posttesting:
• Focus groups
• Quantitative studies
• Recall tests
• Changes in attitudes
• Generating inquiries
• Sales performance
Ethical Issues in Advertising

Deceptive Advertising

Public Standards
Quality of Children’s Lives

• Misleading advertising
• Bait-and-switch
• Puffery
Sales Promotion
Objective: to bolster or complement other
elements of the promotional mix during a
specific time period.
Can be targeted toward:
 Sales force
 Wholesalers and retailers
 Consumers
Sales Promotion toward
Wholesalers and Retailers





Trade shows
Contests
Display equipment
Cooperative Advertising and Promotions
Allowances
Sales Promotion toward
Wholesalers and Retailers
Trade show: meeting or
convention of members
of a particular industry.
Contest: offering bonuses
or prizes for sales
performance in order to
motivate a sales force.
Sales Promotion toward
Wholesalers and Retailers
Point-of-purchase:
Promotional items which
attract attention at the
places where products are
purchased.
Cooperative advertising:
paid for jointly by supplier
and retailer.
Sales Promotion toward
Wholesalers and Retailers
Allowances: reduction in
price or a rebate given to
a marketing intermediary
in return for a larger
order.
Sales Promotion toward
Consumers
Product sampling:
samples given to
consumers to try the
product.
Coupons: reduction in
price given in the form
of a certificate.
Sales Promotion toward
Consumers
Rebates: portion of the
price is returned to the
purchaser.
Contests and Sweepstakes:
 Contests: consumer
must perform
 Sweepstakes: lottery
Sales Promotion toward
Consumers
Premiums: product offered
free or at reduced charge
if another product is
purchased.
Multiple Purchase Offers:
two-for-one or other
multiple purchase tied to
lower price or other
promotion.
Sales Promotion toward
Consumers
Product placements: conveying a
noncommercial message by having a product
appear in a movie or TV show.
Tie-ins: collaborative effort between two or more
organizations in a promotional effort.