For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Chapter 16: Advertising and Sales Promotion

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Advertising Objectives Specific Objectives are more important for advertising than personal sales or sales promotion. Need objectives for each ad and the overall campaign. AIDA often used Must have a budget and a target market defined from the marketing strategy

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Get Attention Hold Interest Arouse Desire Obtain Action Planning the Message 16-8

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Target Market should be defined by Specific Demographic Profile Usage rates Methods of Usage Current attitudes and behavior patterns length of the purchase cycle critical for media plans

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Yellow Pages Outdoor Internet Magazine Television Direct Mail Radio Newspaper Major Kinds of Media Choosing Media 16-6

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Media Strategy Before your media strategy you need: A comprehensive demographic profile (demographic & geographic) Media budget Creative Strategy (joint decision) Media Strategy has three parts Specifying media objectives Selecting media categories & vehicles Scheduling media

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Media Objectives Can you get a good fit between the product & audience of the media (qualitative) Reach - % of the target market exposed to one or more ads in a given time frame. More is better Avg. Frequency - avg. number of times the target audience is exposed to the ad CPM (cost per thousand) - cost per thousand members of the target audience

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Example of CPM You have an auto parts business in a city of 1.4 million. 70% of your customers are black males between the ages of Compare CPM for two radio stations: WXXX & WZZZ

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill What is CPM for both? Which is the better buy? Ad Total Black Males Cost Audience WXXX $ ,000 90,000 WZZZ $90 110,000 75,000

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill CPM Example 3 CPM = Cost/audience in thousands WXXX CPM = $120/90 = $1.33 WZZZ CPM = $90/75 = $1.20 WZZZ is a better buy.

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Advertising Copy Strategy Need to start with audience: Demographics Psychographics Usage Rates How the Product is used Also need to compare your brand performance vs. competitors brands Pre-testing is common, but rough versions can be misleading - especially for TV

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Key to Copy Strategy Effectiveness Can you come up with a brand differentiating message? If so, the ad impact is often fantastic compared to routine ads. i.e. Tell the customer something about the brand that shows superior value compared to other brands

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Sales Promotion Promotion activities—other than advertising, publicity and personal selling— that stimulate interest, trial, or purchase May be targeted at channel members, final customers or users, or employees Skill may be difficult to develop inside the firm—since a promotion activity is often designed and used only once Sales promotion spending is increasing

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Possible Effects of Sales Promotion Exhibit 16-6A Sales temporarily increase, then decrease, then return to regular level Period of promotion Unit Sales Time 16-11

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Possible Effects of Sales Promotion Sales temporarily increase and then return to regular level Period of promotion Unit Sales Time Exhibit 16-6B 16-12

For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Possible Effects of Sales Promotion Sales increase and then remain at higher level Period of promotion Unit Sales Time Exhibit 16-6C 16-13