Advertising, Sales Promotion and Public Relations

The Promotional Mix Advertising Personal selling Personal selling Public Relations Public Relations Sales promotion Sales promotion Balance considerations Target audience Product life cycle Product characteristics Stages of the buying decision Channel strategies Balance considerations Target audience Product life cycle Product characteristics Stages of the buying decision Channel strategies Integrated Marketing Communications Program Direct Marketing Direct Marketing

Push and Pull Promotional Strategies Manufacturer Wholesaler Retailer Consumer Flow of promotion; mainly personal selling directed to intermediaries Flow of demand stimulation Manufacturer Wholesaler Retailer Consumer Flow of promotion; mainly advertising directed to consumers Flow of demand stimulation A. Push strategy B. Pull strategy

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 TermWhat It Means ReachThe number of different people or households exposed to an advertisement. RatingThe percentage of households in a market that are tuned to a particular TV show or radio station. FrequencyThe average number of times an individual is exposed to an advertisement.

Advantages and Disadvantages of Major Advertising Media MEDIUMADVANTAGESDISADVANTAGES Televisionreaches extremely large high cost to prepare and run audience; uses picture, print,ads; short exposure time and sound, and motion for effect,perishable message; difficult can target specific audiences.to convey complex information. Radiolow cost; can target specificno visual excitement; short audiences; ads can be placedexposure time and perishable quickly; can use sound,message; difficult to convey humor, and intimacy complex information. effectively.

MEDIUMADVANTAGESDISADVANTAGES Magazinescan target specific audiences;long time needed to place ad; high quality colour; long life oflimited control of ad position; ad; ads can be clipped andrelatively high cost; competes saved; can convey complexfor attention with other information.magazine features. Newspapersexcellent coverage of localads compete for attention markets; ads can be placedother newspaper features; and changed quickly; ads cancan’t control ad position on saved; quick consumerpage short life span; can’t response; low cost.Target Specific audiences. Advantages and Disadvantages of Major Advertising Media

MEDIUMADVANTAGESDISADVANTAGES Internetvideo and audio animation and interactivity capabilities;require large files and animation can improve more time to “load.” attention; ads can beEffectiveness is interactive and link tostill uncertain. advertiser. Outdoorlow cost; local market;message must be short focus high visibilityand simple; low selectivity opportunity for repeatof Audience; criticized as exposures.A traffic hazard, eyesore. Advantages and Disadvantages of Major Advertising Media

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 CouponsDealsPremiumsContestsSweepstakesSamples 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.