Advertising objective

advertisement
Marketing communications are the means by
which firms attempt to inform, persuade, and
remind consumers - directly, or indirectly about the products and brands that they sell
is the specific blend of
advertising, sales promotion,
public relations, personal
selling, and direct-marketing
tools that the company uses
to persuasively communicate
customer value and build
customer relationships.
Advertising : Any paid form of non-personal presentation and
promotion of ideas, goods or services by an identified
sponsor.
•
Sales Promotion : Short-term Incentives to Encourage Trial or
Purchase.
Public Relations :Protect and/or Promote Company’s
Image/products.
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Personal Selling :face to face communication , Personal
Presentations.
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Direct Marketing :Direct Communications With Individuals to
Obtain an Immediate Response.
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Sales Departments in Small Companies
Advertising Departments in Larger Companies.
Advertising Agency Firm that Assists Companies in Planning,
Preparing, Implementing and Evaluating Their Advertising
Programs.
Five M’s of Advertising
Marketing management must make four important decisions
when developing an advertising program.
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An advertising objective is a specific communication task and
achievement level to be accomplished with a specific audience
in a specific period of time.
Informative advertising.
is used when introducing a new product category; the
objective is to build primary demand.
Persuasive Advertising
Is important with increased competition to build selective
demand.
Reminder Advertising.
Is important with mature products to help maintain
customer relationships and keep customers thinking about
the product.
Reinforcement Advertising.
Aims to convince current purchasers that they made the
right choice.
Persuasive could be Comparison or Competitive.
Comparison.
Competitive.
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Persuasive Example:
Automobile ads often
depict satisfied
customers enjoying
special features of their
new car.
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In this advertising world, everyday we see many
advertisement of different products or brands. Organizations
invests heavily in advertising to make their product popular
and to increase sales.
But, here the questions are
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How much to advertise ?
How much to invest in advertisement ?
What should be the size of advertising budget?
Advertising Budget Is an estimated amount an organization
decides to invest in its promotional expenditures over a
period of time.
An advertising budget is the money a company set aside to
accomplish its marketing objectives.
Advertising Budget Methods:
 Affordable Approach
 Percentage of Sales
 Competitive-Parity
 Objective-and-Task
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1. Affordable Approach
This method is also called “All you can afford”
procedure used to set advertising budgets, based on what the
advertiser thinks it can afford to spend.
2. Percentage of Sales
This method an advertiser takes a percentage of either past or
anticipated sales and allocates that percentage of the overall
budget to advertising.
3. Competitive-Parity
Involves examining how much competitors are spending on
marketing (and promotion) and matching or exceeding that
spend.
The most logical budget setting method is the objective and
task method whereby the company sets its promotion budget
based on what it wants to accomplish with promotion.
The approach consists of three steps
i. Defining the communications objectives that are to be
accomplished
ii. Determining the specific strategies and tasks needed to
attain them.
iii. Estimating the costs associated with performance of these
strategies and tasks. The total budget is based on the
accumulation of these costs.
Five factors to be considered when setting the
advertising budget:
Stage in the product life cycle
New products typically merit large advertising budgets to build awareness and
to gain consumer trial. Established brands usually are supported with lower
advertising budgets.
Market share and consumer base
High-market-share brands usually require less advertising expenditure as a
percentage of sales to maintain share.
To build share by increasing market size requires larger expenditures.
Competition and clutter
In a market with a large number of competitors and high advertising
spending, a brand must advertise more heavily to be heard. Even
simple clutter from advertisements not directly competitive to the
brand creates a need for heavier advertising.
Advertising frequency
The number of repetitions needed to put the brand’s message
across to consumers has an obvious impact on the advertising
budget.
Product substitutability
Brands in less-differentiated or commodity-like product classes
(beer, soft drinks, banks, and airlines) require heavy advertising to
establish a unique image.
Product life-cycle stage
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New products require larger budgets.
Mature brands require lower budgets.
Market share
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Building or taking market share requires larger budgets.
Markets with heavy competition or high advertising clutter
require larger budgets
Undifferentiated brands require larger budgets
Advertising strategy
accomplishes its
advertising objectives and consists of:
is the strategy by which the company
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Creating advertising messages.
Selecting advertising media.
Developing Advertising Strategy
Advertisements need to be better planned, more imaginative,
more entertaining, and more rewarding to consumers in terms of
What is said, and How it is said?
What is said?
Referred to the ‘Big Idea’, and will normally address the key
benefits sought by the target audience, motivating the audience
to pay attention.
How it is said?
Deciding upon the content, style and tone of the advertising
message, the media through which the message will be
communicated to the target audience must also be selected.
Creating the Advertising Message
Creating the Advertising Message
1.Message generation(strategy)
The general message that will be communicated to consumers
which Identifies consumer benefits.
2. Creative concept
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"Message Evaluation and selection“
Is the idea that will bring the message strategy to life and
guide specific appeals to be used in an advertising campaign.
Characteristics of the appeals include:
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Meaningful
Believable
Distinctive
Creating the Advertising Message
3.Message Execution
when the advertiser turns the big idea into an actual ad
execution that will capture the target market’s attention and
interest.
The creative team must find the best approach, style, tone,
words, and format for executing the message.
Slice of life Example
Is an advertising technique where a real life problem is presented in
a dramatic situation and the item being advertised becomes the
solution to the problem.
Scientific Evidence Example
Colgate toothpaste has used scientific evidence to better confident to
convince buyers that Colgate is better than other brands at fighting
cavities.
This style shows the company’s expertise in
making the product.
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Selecting Advertising Media
The Role
Is to find out the right path to transfer the message
to the targeted customers.
The basic intention of media strategy is not only
procuring customers for their product but also
placing a right message to the right people on the
right time .
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Reach (R). The number of different persons or households
exposed to a particular media schedule at least once during a
specified time period
Frequency (F). The number of times within the specified time
period that an average person or household is exposed to the
message
Impact (I). The qualitative value of an exposure through a
given medium.
Reach
Is most important when
1.
launching new products,
2.
extensions of well known brands,
3.
frequently purchased brands; or when going after
an undefined target market.
Frequency
Is most important where there are
1.strong competitors,
2.a complex story to tell,
3.high consumer resistance,
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Newspapers
Television
Direct mail
Radio
Magazines
Outdoor
Yellow Pages
Newsletters
Brochures
Telephone
Internet
Television
advantages
Combines sight, sound , and motion; appealing to the senses;
high attention; high reach
limitations
High absolute cost; high clutter; fleeting exposure; less audience
selectivity
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Radio
Advantages
Mass use; high geographic and demographic selectivity; low cost
Limitations
Audio presentation only; lower attention than television; nonstandardized rate structures; fleeting exposure
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Outdoor
advantages
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Flexibility; high repeat exposure; low cost; low competition.
limitations
Limited audience selectivity; creative limitations
Place Advertising out-of-home advertising,
is a broad category including many creative and unexpected
forms to grab consumers attention.
The rationale is that marketers are better off reaching people
where they work, play, and, of course, shop.
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Billboards: Digitally produced graphics , backlighting, sounds
, movement , and unusual—even 3D—images.
Public spaces : Advertisers have been increasingly placing ads
in unconventional places such as on movie screens, on
airplanes, and in fitness clubs.
Product placement : An advertising technique used by
companies to promote their products through a nontraditional advertising technique, usually through
appearances in film, television, or other media.
Point-of-purchase : Marketing materials or advertising placed
next to the merchandise it is promoting. These items are
generally located at the checkout area or other location where
the purchase decision is made.
Billboards Examples
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The media planner must search for the most cost-effective
vehicles within each chosen media type.
Media vehicle refers to specific methods of media used by
companies to deliver advertising messages to targeted
customers.
In making choices, the planner must rely on measurement
services that estimate audience size, composition , and media
cost
Audience size has several possible measures:
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Circulation
Audience
Effect audience
Effective ad-exposed audience
The advertiser must also decide how to schedule the advertising
over the course of a year.
When deciding on media timing, the planner
must consider:
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Seasonality
Pattern of the advertising
In launching a new product, the advertiser must choose among
continuity, concentration ,flighting, and pulsing.
Continuity
means exposures appear evenly throughout a given period.
Generally, advertisers use continuous advertising in expanding
market situations, with frequently purchased items, and in
tightly defined buyer categories.
This is a best model for the products having continuous demand
all the year round.
Concentration
calls for spending all the advertising dollars in a single period.
This makes sense for products with one selling season or related
holiday.
Flighting
calls for advertising during a period, followed by a period with
no advertising, followed by a second period of advertising
activity. It is useful when funding is limited, the purchase cycle is
relatively infrequent , or items are seasonal.
Pulsing
This model is the combination of both continuity and flighting
scheduling. Here, ads run whole year round but at a lower side
that means less ads.
The company makes “ notional buys “ when it placed
advertising on national TV net or in nationally circulated
magazines.
The company makes “ local buys “ when it placed
advertising on local newspapers, radio, or outdoor site .
called copy testing
Three major methods of adverting pretesting
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Direct Rating Method: consumers to rate alternate ads
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Portfolio tests: test consumers recall level by exposing to
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Laboratory tests: uses equipment to measure
plethora of ads
physiological reactions
This is harder to measure than above.
A company’s share of advertising expenditures produces a share
of voice that produces a share of minds and hearts and
ultimately a share of market.
Researchers try to measure the sales impact through
analyzing
Historical Approach
Experimental design
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Building good relations with the company’s various publics by
obtaining favorable publicity, building up a good “corporate
image” and handling or heading off unfavorable rumors,
stories and events.
Public relations (PR) includes a variety of programs designed
to promote or protect a company’s image or its individual
products.
• Public relations is used to promote product, people, ideas,
and activities
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2.
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5.
6.
Press relations or press agency involves the creation and placing of
newsworthy information to attract attention to a person, product,
or service.
Product publicity involves publicizing specific products.
Public affairs involves building and maintaining national or local
community relations.
Lobbying involves building and maintaining relations with
legislators and government officials to influence legislation and
regulation.
Investor relations involves maintaining relationships with
shareholders and others in the financial community.
Development involves public relations with donors or members of
nonprofit organizations to gain financial or volunteer support.
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Setting Public Relations Objectives.
Choosing the Public Relations Messages and Vehicles.
Implementing the Public Relations Plan.
Evaluating Public Relations Results.
The Main Tools Of PR Are
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publications,
events,
news,
Sponsorships,
speeches ,
identification media
and Public Service Activities.
Publications: Companies rely extensively on published
materials to reach and influence their target markets.
These include annual reports , brochures , articles , company
newsletters and magazines , and audiovisual materials.
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Events: Companies can draw attention to new products or
other company activities by arranging and publicizing special
events
such as news conferences , seminars , outings , trade shows ,
exhibits, contests and competitions , and anniversaries that will
reach the target publics.
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Sponsorships: Companies can promote their brands and
corporate name by sponsoring and publicizing sports and
cultural events and highly regarded causes
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News: One of the major tasks of PR professionals is to find or create
favorable news about the company , Its products , and its people
and to get the media to accept press releases and attend press
conferences.
Speeches: Increasingly , company executives must field questions
from the media or give talks at trade associations or sales meetings
, and these appearances can build the company’s image.
Public Service Activities: Companies can build goodwill by
contributing money and time to good causes.
Identity Media: Companies need a visual identity that the public
immediately recognizes. The visual identity is carried by company
logos , stationery , brochures , signs , business forms , business
cards, buildings , uniforms , and dress codes.
What is Sales Promotion?
Sales promotions consist of a collection of incentive
tools, mostly short term, designed to stimulate, motivate and
influence the purchase and other desired behavioral
responses of the firm’s customers.
From the above definition one can understand the
following characteristics of Sales Promotion
1.
2.
3.
It is mostly short term in nature.
Its only objective is to promote sales quickly.
Sales promotion is done with channel partners as well as
the customers
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Advantages of Sales Promotion
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It is often has eye catching appeal
Themes and tools can be distinctive
The consumer may receive something of value, such as
coupons or free merchandise
It helps to draw customer traffic and maintain loyalty to the
retailer
Impulse purchase are increased
Customers can have fun, particularly with contests and
demonstrations.
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
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Short-Term Incentives to Encourage Purchase or
Sales of a Product or Service
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
Business - Promotion Tools
Short-Term Incentives That are Directed
to
Industrial Customers.
Business-Promotion
Business-Promotion
Objectives
Tools
Generate Business Leads
Stimulate Purchases
Reward Customers
Motivate Salespeople
Conventions
Trade Shows
Sales Contests
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Samples
Coupons
Free Trials
Patronage Rewards
Cash Refunds
Contests
Price Packs
Sweepstakes
Premiums
Games
Point-of-Purchase
Displays
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Samples:
Offer a free amount of product or service
Increase sales volume at the early stage of
the product life cycle and obtain desirable
distribution.
Most expensive sales promotion technique.
Coupons:
Certificate entitling the bearer to a stated
saving on the purchase of a special product
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Premiums (gifts):
an offer of an item of merchandise or
service either free or at a low cost that is an
extra incentive for customers
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Prizes (contests, sweepstakes, games):
prices offers to win cash, trips or merchandise
as a result of purchasing something
 Contests: calls for consumers to submit an
entry to be examined by judges who will
select the best entries
 Sweepstakes :ask customers to submit their
names in a draw
 Game :presents consumers with something
every time they buy
Ex: bingo numbers with missing letter that
help customers to win a prize
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Cash Refunds:
provide a price reduction after purchase rather
than at the retail shop, customer submit “proof of
purchase” to the manufacture who refunds part of
the purchase by email.
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Free Trials : inviting prospective purchasers
to try the product without cost in the hope that
they will buy.
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Patronage Award :
value in cash or other
forms that are proportional to patronage of
certain vendor or group of vendors.
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Cross promotions: using one brand to
advertise another noncompeting brand.
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Point of Purchase Display:
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Price Packs :offer consumer saving off the
Displays and
demonstrations take place at the point of
purchase or sale.
regular price of product, flagged on the
label package ,a reduced-price pack is a
single package sold at a reduced price such
as(two for the price of one).
Business - Promotion Tools
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Trade shows and conventions :
An exhibition organized so that
companies in a specific industry can
showcase and demonstrate their latest
products, service, study activities of rivals
and examine recent market
trends and opportunities.
aims at inducing the sales force or dealers to increase their
sales results over a stated period with prices trips gifts or
points going to those who succeed.
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consists of useful low cost items bearing the company’s
name and address ,sometimes advertising message that
salespeople give to prospects and customers .Common items
are ballpoint pens key chains flashlights, tote bags and memo
pads
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Direct marketing is the use of consumer-direct channels
to reach and deliver goods and services to customers without
using market middlemen.
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Direct marketing
Connecting directly with carefully targeted individual
consumers to both obtain an immediate response and
cultivate lasting
customer relationships.
Direct
Mail
Digital
Interactive
Marketing
Personal
Selling
Catalogs
Direct
Marketing
DirectResponse
Television
Marketing
Telemarketing
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Direct-mail marketing : involves sending an offer,
announcement, reminder, or other item to a person at a
particular physical or virtual address.
Using highly selective mailing lists, direct marketers send out
millions of mail pieces each year—letters, catalogues, ads,
brochures, samples, CDs and DVDs, and other “salespeople
with wings.”
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Catalogue marketing
Direct marketing through print, video, or digital catalogues that
are mailed to select customers, made available in stores, or
presented online.
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Today catalogues are also available online.
Printed catalogues are still popular and works as a good
supplement .
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Telephone marketing
Using the telephone to
sell directly to customers.
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Divided into two types
◦ Inbound telemarketing
A division of customer service, the department that answers
customers’ questions when they call in.
◦ Outbound telemarketing
The department of marketers who place outgoing calls,
usually to existing customers, to try to persuade them to
upgrade their services.
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Direct-Response Television
Television spots that persuasively describe a product and give
customers a toll-free number for ordering.
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Uses formats such as :
◦ Infomercials – longer advertising programs.
◦ The Shopping Channel – channels devoted to facilitate
buying goods.
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is a marketing campaign that takes place using a digital
platform , that uses of electronic devices such as personal
computers, smart phones, cell phones, tablets TV and game
consoles to engage with stakeholders.
Some new alternative terms used include, new media
marketing, interactive marketing, Internet marketing, emarketing, electronic marketing, digital marketing, and online
marketing.
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Websites
Email marketing
Online Marketing
Search engine marketing
Blogs & social networks
Mobile marketing
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Social media marketing involves both advertising and
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Websites : Companies must design websites that express
marketing (including viral marketing) efforts via social
networking sites like Facebook, Twitter, YouTube and other
social media platforms .
their purpose ,history ,products and vision that are attractive
on first viewing and interesting enough to encourage repeat
visits
Digital Interactive Marketing Forms
Online Marketing
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Online marketing refers to a set of powerful tools and
methodologies used for promoting products and services
through the Internet.
Online marketing includes a wider range of marketing elements
than traditional business marketing due to the extra channels
and marketing mechanisms available on the Internet.
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Online marketing is also known as Internet marketing, Web
marketing, digital marketing and search engine marketing (SEM).
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Low costs: Large audiences are reachable at a fraction of
traditional advertising budgets, allowing businesses to create
appealing consumer ads.
Flexibility and convenience: Consumers may research and
purchase products and services at their leisure.
Analytics: Efficient statistical results are facilitated without extra
costs.
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Multiple options: Advertising tools include pay-per-click
advertising, email marketing and local search integration (like
Google Maps).
Demographic targeting: Consumers can be demographically
targeted much more effectively in an online rather than an offline
process.
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is directly marketing a commercial message to a group of
people using email.
the term is referring to sending email messages with the purpose
of enhancing the relationship of a merchant with its current or
previous customers, to encourage customer loyalty and repeat
business, acquiring new customers or convincing current
customers to purchase something immediately
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Promotional Email
To promote a product or service, usually to
entice customers to make a purchase.
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New Inventory Email
To let your customers know about new items. It
falls under the promotional email umbrella.
updating customers, but also hoping for a sale.
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Newsletter Email
To inform customers about company
news, improve brand awareness and build
a relationship with your core audience.
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Educational Email
To provide customers with industry
knowledge that’s connected to your
business or product. It helps build
relationships and trust between your
business and your customers.
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Survey Email
To collect helpful information you can use to
improve the customer experience.
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Reorder Email
To remind customers that it’s time to reorder
a certain product.
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Welcome Email
To welcome new email subscribers to the
family and establish a good relationship
use of various mobile technologies
to communicate to a given target audience.
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Mobile marketing can provide customers with time and
location sensitive, personalized information that promotes
goods, services and ideas
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SMS Mobile Marketing through cell-
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MMS mobile marketing can contain a timed slideshow
phones SMS (Short Message Service) became increasingly
popular in the early 2000s in Europe and some parts of
Asia
of images, text, audio and video. This mobile content is
delivered via MMS (Multimedia Message Service)
personal selling involves interpersonal interactions between
salespeople and individual customers , These interpersonal
interactions can take form of face to face, by phone, through
video, web conference, and through an online messenger
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Salespeople play an important role in
representing a company and gaining customers
trust.
Through salespeople, companies are able to
build long lasting and loyal relationships with
their customers
In many cases, customers decide to shop at a
specific store only because of the relationships
that they have built with that store’s salespeople
salespeople represents customers to the
company and help achieve the overall goalcustomer satisfaction and company profit
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Deliverer : sales person whose major tasks is delivery of product
Order taker :inside order taker
( who standing behind the counter ) , outside order taker
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Missionary : salesperson whose responsible to build goodwill or
educate the actual or potential user
Technician : salesperson with high level of technical knowledge
(the engineering salesperson who is primarily a consultant to
client companies )
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Demand creator :a salesperson who relies on creative methods
for selling tangible products(household products) or intangible
(services , education ,advertising)
Solution vendor : A salesperson who expertise is solving a
customer’s problem often with a system of the company’s
products and services (computer and communications systems)
Prospecting and
qualifying
Preapproach
Presentation and
Demonstration
Overcoming
Objection
Closing
Follow-up and
maintenance
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Prospecting and qualifying : Identify and qualify prospects
(customers)
Reproach : the salesperson needs to learn as much as possible
about the prospect company
what it needs
who takes apart in purchase decision
Company’s buyers (personal characteristics and buying styles )
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Presentation And Demonstration : the salesperson presents the
product’s features , advantages , benefits and value to the
customer
Overcoming Objection :when customer pose objection the
salesperson asks the buyers to clarify his objection and
questions
Closing : obtain a purchase commitment from the prospect and
create a customer
Follow-up : Ensure that the customer is satisfies with the product
or service
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