Marketing 333 Chapter 15: Advertising and Sales Promotion

Advertising A persuasive message carried by a nonpersonal medium and paid for by an identified sponsor. Two types: Product advertising Institutional advertising

Product Advertising Advertising promoting a specific product. Two types: Direct-action advertisement: stimulates immediate purchase Indirect-action advertisement: stimulates sales over the long run.

Institutional Advertising Advertising designed to promote an organizational image or to build goodwill. Example: GE’s “We bring good things to light.”

Some Specific Advertising Objectives Might Include: Sales lead generation Increasing brand awareness Increasing repeat purchases Increasing consumption by current users

Advertising Objectives and Product Life Cycle Primary demand: demand for the product class as a whole. Example: “Behold the power of cheese.” Selective demand: aimed at stimulating demand for a particular brand. Examples: Kraft

Advertising Objectives and Product Life Cycle SALES ScreenconceptsPrimarydemandadvertisingExtensiveadvertisingspending Reminder & emotionaladvertisingMinimal if any

Creative Strategy Creative process: generation of ideas and development of the advertising message or concept. Need to plan: The Appeal (central idea) Theme The Execution (how to say it)

Advertising Execution Execution format: style in which the advertisement message is delivered. Types of execution formats: Storyline Product uses and problem solutions Slice of life Demonstration Testimonial

Advertising Execution Types of execution formats (cont.) Lifestyle Still life Association Montage Jingle

When developing media strategy, answer these two questions: Which media will effectively and efficiently get the message to the desired audience? What scheduling of these media will neither bore nor allow people to forget?

Media Advantages/Disadvantages Newspapers: + Convenient & quick - Poor quality of print Magazines: + Long-life ad - Clutter

Media Advantages/Disadvantages Television: + Audio-visual + Very high reach - Expensive & perishable Radio: + Flexible + Inexpensive - Clutter & perishable

Media Advantages/Disadvantages Internet/On-line Services: + Inexpensive + High reach: worldwide - Cannot reach non- computer users Outdoor ads + High reach & frequency + Inexpensive - Brevity of message

Media Advantages/Disadvantages Direct mail: + Highly selective + Lengthy copy possible - Limited reader interest

Creating a Media Plan Reach Frequency Gross Rating Points

Measuring Advertising Pretesting: Focus groups Quantitative studies Posttesting: Recall tests Changes in attitudes Generating inquiries Sales performance

Ethical Issues in Advertising Deceptive Advertising Misleading advertising Bait-and-switch Puffery Public Standards Quality of Children’s Lives

Sales Promotion Objective: to bolster or complement other elements of the promotional mix during a specific time period. Can be targeted toward: Sales force Wholesalers and retailers Consumers

Sales Promotion toward Wholesalers and Retailers Trade shows Contests Display equipment Cooperative Advertising and Promotions Allowances

Sales Promotion toward Wholesalers and Retailers Trade show: meeting or convention of members of a particular industry. Contest: offering bonuses or prizes for sales performance in order to motivate a sales force.

Sales Promotion toward Wholesalers and Retailers Point-of-purchase: Promotional items which attract attention at the places where products are purchased. Cooperative advertising: paid for jointly by supplier and retailer.

Sales Promotion toward Wholesalers and Retailers Allowances: reduction in price or a rebate given to a marketing intermediary in return for a larger order.

Sales Promotion toward Consumers Product sampling: samples given to consumers to try the product. Coupons: reduction in price given in the form of a certificate.

Sales Promotion toward Consumers Rebates: portion of the price is returned to the purchaser. Contests and Sweepstakes: l Contests: consumer must perform l Sweepstakes: lottery

Sales Promotion toward Consumers Premiums: product offered free or at reduced charge if another product is purchased. Multiple Purchase Offers: two-for-one or other multiple purchase tied to lower price or other promotion.

Sales Promotion toward Consumers Product placements: conveying a noncommercial message by having a product appear in a movie or TV show. Tie-ins: collaborative effort between two or more organizations in a promotional effort.