Kelley Fall 2001 Marketing Management1 Elements of the Promotional Mix Advertising Sales Promotion Personal Selling Public Relations

Kelley Fall 2001 Marketing Management2 Advertising About 25% of each promotional dollar is spent on advertising Advertising objectives Awareness Reminder to use Change attitudes about use of the product Change perceptions of importance of brand attributes

Kelley Fall 2001 Marketing Management3 Advertising Advertising objectives Attitude reinforcement Product-line or corporate image building Obtain a direct response Budgeting Establish baseline budget - historical Set advertising objectives Estimate message design and media costs

Kelley Fall 2001 Marketing Management4 Advertising Budgeting Run experiments to obtain estimate of proposed advertising campaign Revise budget Evaluation CPM = cost of ad x 1000/circulation Rating = program audience/total audience

Kelley Fall 2001 Marketing Management5 Advertising Evaluation Reach - percentage of the target audience that will be exposed to the message Frequency - average number of times a member of the target audience is exposed to the message Gross Rating points - reach percentage x number of exposures

Kelley Fall 2001 Marketing Management6 Advertising Evaluation Recognition tests Recall tests Theater tests

Kelley Fall 2001 Marketing Management7 Sales Promotion About 50% of each promotional dollar is spent on sales promotion Short-term results Objectives Inquiries - free gifts, mail-in coupon for information, catalog offers, exhibits Trial - coupons, free samples, contests, premiums, demonstrations

Kelley Fall 2001 Marketing Management8 Sales Promotion Objectives Repurchase - on-pack coupons, mail-in rebates Traffic building - special sales, weekly specials, entertainment events, retailer coupons Increase rate of purchase - multipacks, special price on twos

Kelley Fall 2001 Marketing Management9 Sales Promotion Objectives Inventory building - return allowances, slotting allowances Promotional support - reusable display cases, sales contests, merchandise allowances

Kelley Fall 2001 Marketing Management10 Sales Promotion Evaluation Redemption rates Acquisition rates Displacement rates Conversion rates Stock-up rates Product-line effects

Kelley Fall 2001 Marketing Management11 Personal Selling About 25% of each promotional dollar is spent on personal selling activities Recruitment Compensation Evaluation

Kelley Fall 2001 Marketing Management12 Public Relations Less than 1% of each promotional dollar is spent on public relations Difficult to control and evaluate Process Set objectives Identify target audience Design message Reach media that serves target audience Evaluate results