3 advertising sales promotion
TRANSCRIPT
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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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Advertising Objectives
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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Advertising Objectives
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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Advertising Objectives
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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Hierarchy of Effects Model
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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