3 Advertising Sales Promotion

7/31/2019 3 Advertising Sales Promotion

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ADVERTISING & SALES

PROMOTION


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Advertising

Any paid form of non personal presentationand promotion of ideas, goods or services by

an identified sponsor


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Types of advertising

Institutionaladvertising

Designed toenhance acompanys image

Productadvertising

Designed topromote thebenefits of aspecific product/service


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Product advertising


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The 5 Ms of Advertising

Mission: what are the advertising objectives? Money: how much can be spent?

Message: what message can be sent? Media: what media should be used? Measurement: how should the results is

evaluated?


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Steps in developing an

advertising programme


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Identify thetarget

audience

Specify theadvertising

objectives

Set theadvertising

budget

Develop theadvertising

messageSelect the

media

Evaluateadvertising

effectiveness


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STEP 1: Identifying the targetaudience

Target audience:

a market segment to which a marketer wants to

communicate a product/ brand message


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STEP 2: Setting the advertising objective

A specific communication task to beaccomplished with a specific target audienceduring a specific period of time.

To inform To persuade To remind


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The DAGMAR Approach

Define Advertising Goals for

Measured

Advertising

Results

Developed by RusselColley in 1961 a model for setting

advertising objectives

and measuring theresults

Ad to perform a specificc/n task

The task has to beaccomplished amongwell defined audience

within a period of time


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Advertising Objectives

Informative advertising To communicate value

To tell about a new product Explain how the product works Suggest new uses for a product Inform the market of a price change Describe services Correct false impressions Build a brand & company image


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Persuasive advertising

To encourage switching to your brand To persuade customers to take a sales call To persuade customers to purchase a product To convince customers to tell others about the brand To change customers perception about products

attributes


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Reminder advertising

To maintain customer relationships Remind customers that the product may be needed in

the near future Eg: Insurance

Remind customers where to buy the product Keeping the brand in customer's minds during off

seasons.


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Reinforcement advertising

Aims to convince current purchasers that they madethe right choice.


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STEP 3: Deciding on the advertisingbudget

Advertising budget: the amount of moneyallocted by a firm for its advertising campaignsfor a specific period of time

Budget varies depending on the stage in theproduct lifecycle.


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Percentage-of-Sales Method

Setting advertisingBudget at a Certain %

of Current orForecasted Sales

AffordabilityMethod

Setting advertisingBudget at the Level theCompany Thinks They

Can Afford.

Competitive-ParityMethod

Setting advertisingBudget to Match

Competitors Outlay

Objective-and-TaskMethod

Setting advertisingBudget by DefiningObjectives, Tasks &

Costs.

Methods for advertising budgetallocation


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STEP 4: Developing the advertising strategy

The strategy by which the companyaccomplishes its advertising objectives.

Two major elements: Creating advertising messages Selecting the advertising media


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Developing the advertising message

Characteristics of an effective message: Meaningful: point out benefits that make the product

more desirable/ interesting to the consumers Believable: the consumers must believe that the

product will deliver the promised benefits Distinctive: needs to be unique to capture customers

attention


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Message Source

Expertise,Trustworthiness,

Likeability

Message StructureCan be one sided /

two sided

Message ContentRational Appeals

Emotional AppealsMoral Appeals

Issues to Consider in Designing theMessage


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Message Execution Style

The approach, style, tone, words & format usedfor executing an advertising messagre


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Typical Message Execution Styles

Spokesperson

Slice of Life

ScientificEvidence

Lifestyle

Humor

FantasyMusical

AnimatedSymbol

Mood orImage

Comparisons

Demonstration


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Selecting the right media

The vehicles thru which advertising messages

are delivered to the intended audience

Based on:The target audience

Location of the target audience

Message to be delivered

Timing of the campaign


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Selecting the right media (cont)

Decide on the reach, frequency & impactneeded to achieve objectives

Choose among major media types- TV, newspaper etc.

Select specific media vehicles- Star plus, CNN,

The Hindu etcDecide on media timing

Decide on geographical media allocation


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Reach(R) : the number of persons in the targetmarket who are exposed to the advertisingcampaign during a given period of time.

Frequency : the measure of how many times theaverage person in the target market is exposedto the message


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Choosing among media types

Depends on:Target audience media habits

Product characteristicsMessage characteristicsCost


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Media Types

Newspapers

Magazines

RadioTelevision

Outdoor

Internet

Alternative Medias

Major Types

ofAdvertisingMedia


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Selecting specific media vehicles

Depends on: Circulation: The number of physical units carrying the

advertising Audience: Number of people exposed to the vehicle Effective audience: The number of people with

target audience characteristics exposed to the vehicle

Effective ad exposed audience: the number of peoplewith target audience characteristics who actually sawthe ad.

D idi di i i &


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Deciding on media timing &geographical allocation

Scheduling the timing of advertising Also decide on the geographical spacing of

advertisements.

St 5 E l ti Ad ti i


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Advertising Program Evaluation

Communication Effects( copy testing )

Is the advertisementmeeting the specific

communication objective?

Step 5: Evaluating Advertising Effectiveness

Sales Effects(to the extent possible)

Is the Ad Increasing Sales?

C i ti ff t


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Communication effect research - methods

Consumer feedback method What is main message you get from this ad? How does the ad make you feel?\what works well in the ad &

what works poorly? Portfolio tests

Consumers asked to view/ listen to a portfolio of ads then asked to recall all the ads & their content

Indicates an ads ability to stand out & to have its messageunderstood & remembered

Laboratory tests: Use equipment to measure physiological reactions to

an ad.


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Sales effect research

Measuring the sales & profit after the ad isreleased.


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Advertising agency

A firm which specialises in developing & runningadvertising campaigns through various media


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AIDA MODEL OF ADVERTISING


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AIDA MODEL OF ADVERTISING


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Hierarchy of Effects Model


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Sales Promotion


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A diverse collection of incentivetools, mostly short term, designed to

stimulate quicker or greaterpurchase of products/ services

Whereas advertising gives a reasonto buy, SP gives an incentive to buy


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Consumer Promotion Tools

Consumer-PromotionObjectives

Point-of-PurchasePromotionPremiums

Price Packs

Cash Refunds

Coupons

Samples

Contests

AdvertisingSpecialties

Attract Consumers to

Try a New ProductLure Customers Away

From Competitors Products Hold & Reward Loyal

Customers

Consumer RelationshipBuilding

PatronageRewards


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Trade-PromotionObjectives

Trade-PromotionTools

SpecialtyAdvertising

Items

Contests

Free Goods

Dealer listing

Allowances

Price-OffsPersuade Retailers orWholesalers to Carry a Brand

Give a Brand Shelf Space

Promote a Brand inAdvertising

Push a Brand to Consumers

Trade Promotion Tools


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THANK YOU

Documents

3 Advertising Sales Promotion