Download AdvCh20

Advertising, Sales
Promotion and Public
Relations
The Promotional Mix
The Promotional Mix
Advertising
Personal
selling
Public
Relations
Sales
promotion
Balance considerations
•
•
•
•
•
Target audience
Product life cycle
Product characteristics
Stages of the buying decision
Channel strategies
Integrated Marketing
Communications Program
Direct
Marketing
Push and Pull Promotional Strategies
A. Push strategy
Manufacturer
Manufacturer
Flow of
promotion;
mainly
personal
selling
directed to
intermediaries
Flow of
demand
stimulation
B. Pull strategy
Flow of
demand
stimulation
Wholesaler
Wholesaler
Retailer
Retailer
Consumer
Consumer
Flow of
promotion;
mainly
advertising
directed to
consumers
Advertising Definition
Any paid form of nonpersonal
communication about an organization,
good, service, or idea by an identified
sponsor.
Types of Advertisements
Product Advertisements: focused on selling a good
or service.
Types:
1. Pioneering or informational. Tells people what
a product is, what it can do, and where it can be
found.
2. Competitive or persuasive. Promotes a specific
brand’s features or benefits
3. Reminder. Reinforces previous knowledge of a
product.
Types of Advertisements
Institutional Advertisements: build goodwill or
image for the organization.
Types:
1. Advocacy
2. Pioneering institutional
3. Competitive institutional
4. Reminder institutional
Developing the Advertising Program
1. Identifying the Target Audience.
Characteristics of the prospective
customer
2. Specifying advertising objectives.
3. Setting the advertising budget
4. Selecting the right media
The Language of the Media Buyer
Term
What It Means
Reach
The number of different people
or households exposed to an
advertisement.
Rating
The percentage of households
in a market that are tuned to a
particular TV show or radio
station.
Frequency
The average number of times
an individual is exposed to an
advertisement.
Advantages and Disadvantages of
Major Advertising Media
MEDIUM
ADVANTAGES
DISADVANTAGES
Television
reaches extremely large
audience; uses picture, print,
sound, and motion for effect,
can target specific audiences.
high cost to prepare and run
ads; short exposure time and
perishable message; difficult
to convey complex
information.
Radio
low cost; can target specific
audiences; ads can be placed
quickly; can use sound,
humor, and intimacy
effectively.
no visual excitement; short
exposure time and perishable
message; difficult to convey
complex information.
Advantages and Disadvantages
of Major Advertising Media
MEDIUM
ADVANTAGES
DISADVANTAGES
Magazines
can target specific audiences;
high quality colour; long life of
ad; ads can be clipped and
saved; can convey complex
information.
long time needed to place ad;
limited control of ad position;
relatively high cost; competes
for attention with other
magazine features.
Newspapers
excellent coverage of local
markets; ads can be placed
and changed quickly; ads can
saved; quick consumer
response; low cost.
ads compete for attention
other newspaper features;
can’t control ad position on
page short life span; can’t
Target Specific audiences.
Advantages and Disadvantages
of Major Advertising Media
MEDIUM
ADVANTAGES
DISADVANTAGES
Internet
video and audio
capabilities;
animation can improve
attention; ads can be
interactive and link to
advertiser.
animation and interactivity
require large files and
more time to “load.”
Effectiveness is
still uncertain.
Outdoor
low cost; local market;
focus high visibility
opportunity for repeat
exposures.
message must be short
and simple; low selectivity
of Audience; criticized as
A traffic hazard, eyesore.
Scheduling Advertising:
Factors to Consider
First, buyer turnover
Second, purchase frequency
Third, forgetting rate
Developing the Advertising Program
4.Designing the Advertisement
a. message content. Informational
and persuasive elements
b. creating the actual message.
(copywriters)
c. selecting the right media
d. executing the advertising program
Pretesting the Advertising
Pretests are conducted before the
advertisements are place in any
medium.
Types of Pretest:
1. Portfolio Tests
2. Jury Tests
3. Theatre Tests
Pretesting the Advertising
Pretests are conducted before the
advertisements are place in any
medium.
Types of Pretest:
1. Portfolio Tests
2. Jury Tests
3. Theatre Tests
Post-testing the Advertising
Post-tests determine whether or not the
advertisements have achieved their intended
objectives. There are five approaches
common in post-testing:
1. Aided recall (recognition-readership)
2. Unaided recall
3. Attitude tests
4. Inquiry tests
5. Sales tests
Sales Promotion
Consumer-Oriented Sales
Promotion
Coupons
Deals
Premiums
Contests
Sweepstakes
Samples
Continuity Programs
Point-of-Purchase Displays
Rebates
Product Placement
Trade-Oriented Sales
Promotions
Allowances and Discounts
- merchandise allowance
- case allowance
- finance allowance
Cooperative Advertising
Training of Distributors’ Salesforces
Definition of Public Relations
Public Relations is . . . .
a form of communication management
that seeks to influence the image of an
organization and its products and
services.