Principles of Marketing Lecture-33

Summary of Lecture-32

Promotion and Its Goals

Builds Relationships Persuades Informs Reminds

The Marketing Communications Mix

Advertising Personal Selling Any Paid Form of Non- personal Presentation by an Identified Sponsor. Sales Promotion Short-term Incentives to Encourage Sales. Public Relations Building Good Relations with Various Publics by Obtaining Favorable Unpaid Publicity. Direct Marketing Direct Communications With Individuals to Obtain an Immediate Response. Personal Presentations by a Firm’s Sales Force.

The Communication Process

Source Encoding Message Channel Message Channel Decoding Receiver Feedback Noise

Steps in Developing Effective Communication

AIDA Model Attention Interest Desire Action

Today’s Topics

Advertising

Any paid form of non- personal presentation by an identified sponsor.

Any form of non-personal communication paid for by sponsor using mass media to persuade/inform an audience – Products/Services – Public Service Advertising – Non-profit org. – People (political candidates, celebrities) – Places (retail outlets, vacation destinations)

Objectives

 Inform: new product, new uses, price changes  Persuade: encourage switching, purchase now, change perceptions  Remind: where to buy, may need in future, top of mind in off-season

Too Much Clutter!!!

Television: networks, cable, satellite dishes Print: magazines, newspapers, junk mail Radio: fragmented audiences, “on the more popular stations, your ads are sandwiched with four other ads.” Billboards, Internet …

Problem… How do you get the attention of the audience????

Break Through the Clutter with Impact Advertising

 Humor appeal  Emotional appeal  Moral appeal  Celebrity appeal  Sensory appeal  Rational appeal

Steps to Creating an Effective Advertising Campaign

1) Define your target market 2) Determine their needs from your product - functional - emotional 3) Develop an advertisement that creates an image for your product that is sought by your target market (positioning)

The Five M’s of Advertising

Mission Sales goals Adver- tising objectives Message Message generation Message evaluation and selection Message execution Social-responsibility review Money Factors to consider: Stage in PLC Market share and con- sumer base Competition and clutter Advertising frequency Product substituta- bility Measure- ment Communi- cation impact Sales impact Media Reach, frequency, impact Major media types Specific media vehicles Media timing Geographical media allocation

Major Advertising Decisions

Objectives Setting Budget Decisions Message Decisions Campaign Evaluation Media Decisions

Objectives Setting Communication objectives Sales Objectives Budget Decisions Affordable Approach Percent of sales Competitive parity Objective and task Message Decisions Message Strategy Message Execution Media Decisions Reach, Frequency, Impact Major Media Types Specific Media Types Media Timing Campaign Evaluation Communication Impact Sales Impact

Advertising Objective  Informative Advertising  Persuasive Advertising  Reminding Advertising

Setting Message Goals Setting Budget Goals Increasing Brand Awareness Increasing Brand Awareness Increasing Sales by a Certain Percentage Increasing Sales by a Certain Percentage Changing the Image of a Product Changing the Image of a Product Recognizing a Need for the Product Recognizing a Need for the Product

Setting the Advertising Budget

Stage in the Product Life Cycle Stage in the Product Life Cycle Competition and Clutter Competition and Clutter Market Share Market Share Advertising Frequency Advertising Frequency Product Differentiation Product Differentiation Factors in Setting the Advertising Budget

Percentage- of-Sales Method Affordable Method Competitive- Parity Method Objective- and-Task Method

Developing Advertising Strategy  Message Decision  Media Decision

Creating the Advertising Message

Plan a Message Strategy General Message to Be Communicated to Customers Plan a Message Strategy General Message to Be Communicated to Customers Develop a Message Focus on Customer Benefits Develop a Message Focus on Customer Benefits Creative Concept “Big Idea” Visualization or Phrase Combination of Both Creative Concept “Big Idea” Visualization or Phrase Combination of Both Advertising Appeals Meaningful Believable Distinctive Advertising Appeals Meaningful Believable Distinctive

 Message Execution – Slice of Life – Lifestyle – Fantasy – Mood or image – Musical – Personality symbol – Technical expertise – Scientific evidence – Testimonial evidence

Unique Selling Proposition Unique Selling Proposition Humorous Appeals Humorous Appeals Fear Appeals Comparative Advertising Comparative Advertising Demonstration Testimonial Design the Ad Advertising Appeals Slice-of-Life Lifestyle Sex Appeals

Choose the Media

Yellow Pages Outdoor Internet Magazine Television Direct Mail Radio Newspaper Major Kinds of Media

Television  Recent trend is the growth of cable television advertisements.  Marketers can now target audiences through special interest channels. (Food network, home and garden, etc).

Radio  With commute times growing, radio advertising revenues are growing faster than any other media.  Very easy to target your audience.

Print  Consumer and business publications.  Can specifically target your market.  Marketers carefully study subscription rates and demographic data for each news paper/magazine.

Outdoor Advertising  Billboards, painted bulletins or displays (such as those that appear on the walls of buildings,) and electric spectaculars  Can be local, regional, or national  Outdoor advertising is effective along metropolitan streets and in other high- traffic areas

Other Advertising Media

 Transit advertising: ads placed both inside and outside of buses, subway trains and stations, and commuter trains  Cinema advertising  Ads on telephone booths and park benches  Ads can be printed in programs of live- theater productions  Directory advertising (yellow pages)  Hot air balloons, blimps, banners behind planes, and scoreboards

Enough for today...

Summary

Advertising

The Five M’s of Advertising

Mission Sales goals Adver- tising objectives Message Message generation Message evaluation and selection Message execution Social-responsibility review Money Factors to consider: Stage in PLC Market share and con- sumer base Competition and clutter Advertising frequency Product substituta- bility Measure- ment Communi- cation impact Sales impact Media Reach, frequency, impact Major media types Specific media vehicles Media timing Geographical media allocation

Major Advertising Decisions

Objectives Setting Budget Decisions Message Decisions Campaign Evaluation Media Decisions

Choose the Media

Yellow Pages Outdoor Internet Magazine Television Direct Mail Radio Newspaper Major Kinds of Media

Next….

Advertising (cont..) Sales Promotion

Principles of Marketing Lecture-33