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8/3/2019 Management of Advertising, Sales Promotion and Public Relations
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ManagementManagement of Advertising, Salesof Advertising, Sales
Promotion and Public RelationsPromotion and Public Relations
Prof. Rushen ChahalProf. Rushen Chahal
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AdvertisingAdvertising
y Includes all activities involved in presenting anon-personal, sponsor-identified, paid-formessage about a product or organization.
y Can classify it by: The target audience: consumers or businesses
Product/service vs. organization/company
Objective: Primary or selective demand
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The Nature of AdvertisingThe Nature of Advertising
y advertising is distinguished from other forms ofpromotion as follows
y it has a verbal and/or visual message
y
the sponsor of the message is identifiedy delivery is through recognizable media
y there is payment by the advertiser to the mediafor carrying the message
y advertisers are increasingly being able to reachspecific audiences with tailor-made messages
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Advertising toAdvertising to
Target AudiencesTarget Audiences
y advertising can be classified by the targetaudience to which it is directed
y consumeradvertising generally appears in
mass media and is directed to endconsumers: may beproduct orinstitutional in nature
y business-to-business advertising is oftencalled trade advertising and is directed to abusiness market
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What is Being Advertised?What is Being Advertised?
yy product advertisingproduct advertising is designed to promotethe sale of a specific product or service:
may be directdirect--actionaction, quick-response
may be indirectindirect--actionaction over a longer timeyy institutional advertisinginstitutional advertising promotes the firm or
tries to create a positive image:
may promote customer service
or send a public service message
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What are the Objectives?What are the Objectives?
yy primaryprimary--demanddemand advertising is intended to
stimulate use of a category of products
yy
selectiveselective--demanddemand advertising is intended toencourage purchase of a particular brand
or the products and services of a specific
firm
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Comparative AdvertisingComparative Advertising
yy SelectiveSelective--demanddemand advertising
y Involves comparing a product to itscompeting brand
y May be: Direct, naming competitors outright
Less direct, alluding to competitors (e.g.,leading brand, Brand X) but not namingthem
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CoCo--operative Advertisingoperative Advertising
yy coco--operativeoperative advertising involves the
sharing of the cost of advertising by two
or more sponsors:
a manufacturer and retailers (verticalvertical), or
a group of retailers (horizontal(horizontal)
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AnAdvertising CampaignAnAdvertising Campaign
(Steps 1 and 2)(Steps 1 and 2)1. Transforming a theme into a coordinated
advertising program to accomplish a specificgoal.
2. Objectives of the campaign determined byfirms overall marketing strategy. Typicalobjectives are:
Support personal selling
Improve dealer relations
Introduce a new product Counteract substitution
Expand use of a product category
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The Advertising CampaignThe Advertising Campaign
(Steps 3 and 4)(Steps 3 and 4)
y Creating a message that:
Gets and holds the attention of the intendedaudience.
Influences the audience in the desired way.y Selecting media involves:
The choice of a medium such as television, radio,newspaper, or magazine.
The specific category of the selected medium to beused, such as special interest (Chatelaine) vs. generalinterest magazines (Macleans).
The specific media vehicles.
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The Campaign BudgetThe Campaign Budget
y A budget must be allocated among the
various activities comprising the overallpromotional program.
y Promotional budgets can be extended
with co-operative advertising.
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Choosing MediaChoosing Media
y Objectives of the ad.
y Audience coverage.
y Requirements of the message.
y Time and location of the buying decision.
y Media cost (CPM)
y Media characteristics.
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Characteristics ofCharacteristics of
Key MediaKey Media
y Newspapers: flexible, local
y Television: versatile, powerful but costly,
fragmented
y Direct Mail: personal, selective, effective, but
tough
y Radio: strong locally, cheap but single
medium
y Magazines: top quality, little flexibility
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MoreMore
Key MediaKey Media
y out-of-home advertising
y specialty advertising
y emerging media:
WorldWideWeb
infomercials
place-based media
videos and CD-ROMs
yellow pages
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Evaluating the Major MediaEvaluating the Major Media
y newspapers are flexible and timely, have alocal orientation and wide coverage, lowcost
y television is versatile, but audience is nowfragmented, reaches mass audiences
y direct mail is efficient, targets certain
audience
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More MediaMore Media
EvaluationsEvaluations
y radio stations target specific segments, low
cost, local orientation, short message life
y
magazines deliver quality advertising tospecific segments, message stays around
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The Changing NatureThe Changing Nature
of Mediaof Media
y media are becoming less mass, more targeted
y cableTV offers many specialty channels
y direct-to-homeTV adds to fragmentation
y lots of new out-of-home media
y Yellow Pages and other directories on CD-ROM
y place-based media where they shop and live
y advertising on theWeb works as Yellow Pages does-- the customer seeks out the advertiser
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Evaluating AdvertisingEvaluating Advertising
y It is difficult to measure the sales
effectiveness of advertising because:
Ads have different objectives.
Ads can have an effect over time period.
Measurement problems.
y Effectiveness can be tested:
Before an ad is presented. While it is being presented.
After it has completed its run.
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Organizing for AdvertisingOrganizing for Advertising
y Develop an internal advertisingdepartment.
Many large retailers do this.
yUse an outside advertising agency. Specialized, skilled professionals.
Experienced, many services offered
y Do both.
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Sales PromotionSales Promotion
y Demand-stimulating devices designed tosupplement advertising and facilitate personalselling.
y Sales promotions include such things ascoupons, in-store displays, premiums, tradeshows, in-store demonstrations, andcontests.
y The target for these activities may bemiddlemen, end users, or the producers ownsalesforce.
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Types of Sales PromotionTypes of Sales Promotion
y Trade promotions, directed to membersof the distribution channel.
y Consumer promotions, aimed atconsumers.
y Consumers got 3.3 billion coupons for
packaged goods alone in1996
.
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Advantages ofAdvantages of
Sales PromotionSales Promotion
y It can produce short-term results.
y Competitors are using sales
promotions.y Sales promotions are attractive to
price-conscious consumers.
y Can enhance/facilitate retail
salesmanship which is often of lowquality.
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Key Reasons forKey Reasons for
Sales PromotionSales Promotiony Stimulating end-user demand.
Sampling program for new/improved product
y Improving the marketing performance
of middlemen and salespeople. Sell more, win a holiday trip.
y Supplementing advertising andfacilitating personal selling.
Displays, promotional giveaways
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Managing Sales PromotionManaging Sales Promotiony Select from wide range of techniques, depending on
your objectives
y Select promotional devices based on:
Nature of target audience
Your promotional objectives: Push vs. Pull.
Cost of device-- sampling can get costly.
Current economic conditions-- coupons, rebateswork best in recessionary period.
y Evaluating Sales Promotion:
Much easier than with advertising.
Usually clear start, finish, goal.
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Public RelationsPublic Relations
y A tool designed to influence favourably attitudestowards an organization, its products and policies.
yy Public relationsPublic relations is often overlooked by
management because of: Organization structure; not in marketing.
Inadequate definitions; loosely defined.
Unrecognized benefits; many non-believers.
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PublicityPublicity
PublicityPublicity is a form of public relations
that includes any communication
about an organization or itsproducts that is presented by the
media but is not paid for by the
organization.
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Strengths of PublicityStrengths of Publicity
y Can announce new products, recognizeemployees, report good results, breakthroughs.
y Key Benefits:
Lower cost than advertising or personal selling. Increased readership; advertising ignored often.
More information.
Timeliness.
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Weaknesses of PublicityWeaknesses of Publicity
y Some loss of control over message.
y Limited exposure; only happens once.
y
Not free; preparation costs.
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