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Advertising and Sales Promotion Module 1

advertising & sales promotion

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Page 1: advertising & sales promotion

Advertising and Sales Promotion

Module 1

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Defining Modern Advertising

• A complex form of communication using objectives and strategies to impact consumer thoughts, feelings, and actions.

• A form of marketing communication (all the techniques marketers use to reach their customers and deliver their messages).

WHAT IS ADVERTISING?

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Defining Modern Advertising

Five Basic Factors of Advertising1. Paid communication2. Sponsor is identified3. Tries to inform or persuade4. Reaches a large audience5. Message conveyed through many different kinds

of largely non personal mass media

Principle: An effective advertisement is one that can

be proven to meet its objectives.

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Four Components of Advertising

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Four Roles of Advertising

1. The Marketing Role• Marketing is satisfying customer wants and needs

by providing products (goods, services, and ideas).

• The marketing department is responsible for selling the product using the 4 Ps (product, price, place/distribution, and promotion) and brand development.

Principle: A product can be services and

ideas as well as goods.

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Four Roles of Advertising

2. The Communication Role• Advertising is a message to a consumer about a

product, designed to create a response. • It is also a form of marketing communication.• Advertising uses mass communication to transmit

product information to connect buyers and sellers in them marketplace.

Principle: One of advertising’s most important strengths is

its ability to reach a large audience.

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Four Roles of Advertising

3. The Economic Role• Because it reaches

large groups of people, advertising makes marketing more cost-efficient and lowers prices for consumers.

• Advertising creates a demand for a brand using hard sell (persuading) and soft sell (image building) techniques.

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Four Roles of Advertising

4. The Societal Role• Informs consumers about innovations and issues• Teaches consumers about new products and how to use

them• Helps shape consumer self-image• Facilitates self-expression through purchases• Presents images about diversity in our world

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Setting objectivesAw

aren

ess

Time

Raise AwarenessCreate understa

ndingEnhance Recall & Action

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AIDA• Advertising is designed to

inform, influence, or persuade people.

• To be effective, an advertisement must first Attract attention and gain a person’s Interest. It may then build Desire for a product and provide a method for them to take Action.

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1. BASIC APPEALS

• a marketing technique that is aimed at influencing the way consumers view themselves and how buying certain products can prove to be beneficial for them. There are quite a number of advertising appeals that include emotional appear, humor appeal, music appeal, rational appeal, brand appeal and youth appeal.

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Bandwagon Effect (everyone’s buying it)

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Emotional Appeal (connect with fears and desires)

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Humor appeal- the evergreen approach

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Glittering Generalities (big promises)

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Plain Folks Appeal (relates to ordinary people)

Lifebuoy hand wash ad http://www.youtube.com/watch?v=cj4HMxlPUDs

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Testimonials (use celebrities or experts)

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Scientific Appeal (use stats or data)

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2. Slogans

• Short phrases that a company uses over and over in its ads.

• Good slogans are easy to remember and stick in people’s minds.

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• Fictional people and cartoon animals or characters used in advertisements over a long period of time

3. Product Characters

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Ad agency….

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Advertising Agency

• Advertising agency -independent service-rendering organization

• delivers various services and performs many functions for its clients, who are advertisers

• mainly involved in activities like planning, preparing and placing of ads in media

• also performs non-advertising functions for them. It offers them advisory and creative services

• to make a profit.

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Client briefing

• What exactly is the agency being asked to do?• What information does the agency need?• What questions are the agency likely to ask?

In the briefing session, even the creative and media people may be present so that they get first hand impressions of the problems encountering the company.

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The agency is a people’s business

• For an agency the assets are its people – their calibre, expertise, knowledge and experience

• It is for this reason that some people become so well known that they are ‘brands’ in their own right

• There is high mobility of people within the industry, especially for good people

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Criteria for selection• No. of people assigned to the account• Quality of people assigned to the account• Creative abilities ( Past work of the agency)• What kind of accounts are presently being handled

by the agency• Culture/style fit• Ability to deliver and adhere to deadlines• Reputation for integrity• Ability to defend and justify recommendations• Degree of understanding of the client’s business• Market research and media buying abilities

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Agency Compensation

The key issue is that compensation should be commensurate with workload.

• Commission• Fee• Payment by Results (PBR)

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Types of Advertising • Television• Infomercials ( teleshopping )• Radio• Online• Billboard• In Store• Print

– Magazines– Newspaper – Classified

• Mobile Ads • Celebrity Branding• Corporate Sponsorship(To sponsor something is to support

an event, activity, person, or organization financially or through the provision of products or services)

• Covert (uses undercover tactics turning ordinary entertainment into an extended advert)