Principles of Marketing - Advertising and Sales Promotion

8/3/2019 Principles of Marketing - Advertising and Sales Promotion

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Integrated Marketing CommunicationsAdvertising and Sales Promotion

Prof. Rushen Chahal

Principles of Marketing

Prof. Rushen Chahal 1


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Learning contents1. To define the definition of advertising and sales promotion

2. To define the roles and objectives of advertising and salespromotion

3. To understand the formulation of advertising and media

4. To explain the various sales promotion method



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Advertising definedAny paid form of non-personal communication and

promotion of goods, services ideas etc by a sponsor

through a mass medium

5 Ms of advertising include: mission, message, media,

measurement, money



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Objectives / Roles of advertising

Pioneering advertising: to explain

products in early days of the life cycle.

Comparative advertising: making inferior

references at competitors.

Reminder and reinforcement advertising:

to strengthen the product belief and

persuadeInstitutional advertising: meant for

building sound reputation and image



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A

dvertisement formulationMessage generationCreative brief document

Consistent with product positioning attributes

Theme and sloganCreative appeals

Fear, humor, security, benefits, time, usage,atmospheric, visual

Print executionCopywriting

Storyboard brainstorm, experiment withconcepts



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Deciding on the Media

- Criteria for selecting media

Reach:- coverage and distance of the

audienceFrequency:- average number of times

audience will be exposed in a given period,

e.g. opportunity to see (OTS)

Impact:- the quality of exposure in themedium, e.g. cookery services advertised in

a real estate publication not effective



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D

eciding on the Media- Consider the audiences and product types Press and print media:- i.e. magazines,

newspaper, newsstand, leaflets, admails,

advertorials Network media:- i.e. Cable TV, telephone,

radio, internet, mobile phones, word-of-

mouth

Out-of-home media:- i.e. outdoor

placement, billboards, point-of-purchase,

cinema screen



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Sales Promotion definedSales Promotion defined

y A collection of tools to generate trials or

purchase from consumers or

intermediaries.

y An incentive to buy that is over and

above the normal product offering.



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Overview of sales promotionOverview of sales promotion

objectivesobjectives


To encourage bigger size units.

To build image along with promotions.

To persuade customers to switch brands.

To carry new product items.


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Consumer sales promotionsConsumer sales promotions --

product basedproduct based

Extra product/content or free gifts:- either in-

pack or on-pack.

Reduced-price pack:- E.g. BIGIF (Buy 1 get 1

free ). E.g. Bakers Dozen (buy 12 get 1 free).

Samples:free amount of a product delivered inseveral ways.



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Coupons: certificates that allow customers to

save on products, usually found in magazines or

in other products, e.g. e-coupons. Can be

called Cash rebates, i.e. cash back for

customers on next purchase

Premiums: using a proof of purchase to get

another item for free or at a low price.



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Customer loyalty schemesCustomer loyalty schemes

Frequent flyer schemes:- e.g. air

miles with purchases.

Patronage award:- Accumulatingpoints with sales; or collecting stamps

for more product exchanges.

Contests and sweepstakes:- scratch

and win prizes, freebies.



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Consumer sale promotionConsumer sale promotion

methodsmethods -- store basedstore based Point of purchase/sale displays(POP/POS):- posters, flyers, flashing signs,

videos, message screens near the

cashiers counter.

Demonstrations:- food cooking,

mopping demonstration, cosmetic

preparations.

Price off:- a straight discount for a

period.



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Business-based promotionmethods

Trade shows and conventions to generate

sales or leads through A/V demonstrations

Sales contests to motivate the salesforce or

dealers

Specialty advertising featuring brands on

certain product items which salespeople give

to othersProf. Rushen Chahal 15


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Guidelines for good salesGuidelines for good sales

promotions practicepromotions practice


We call this Mis-selling, e.g. using infotisement

Documents

Principles of Marketing - Advertising and Sales Promotion