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Principles of Marketing Lecture-34
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Summary of Lecture-33
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Advertising
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The Five M’s of Advertising
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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
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Major Advertising Decisions
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Objectives Setting Budget Decisions Message Decisions Campaign Evaluation Media Decisions
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Choose the Media
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Yellow Pages Outdoor Internet Magazine Television Direct Mail Radio Newspaper Major Kinds of Media
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Today’s Topics
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Advertising (cont..) Sales Promotion
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Media Scheduling
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Step 1. Decide on Reach, Frequency, and Impact Step 1. Decide on Reach, Frequency, and Impact Step 2. Choosing Among Major Media Types Step 3. Selecting Specific Media Vehicles Step 4. Deciding on Media Timing
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Setting the timing and sequence of a series of advertisements. Sales patterns (seasonal), repurchase cycles, and competitors’ activities are the most important variables. Advertisers use the concepts of reach, frequency, and gross rating points to measure the effectiveness of media scheduling plans.
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Reach: the number of different people or households exposed to an advertisement at least one during a certain time period. Frequency: the number of times an individual person is exposed to an advertisement in a certain time. Gross rating point: reach times frequency.
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Evaluating Advertising Effectiveness
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Pretesting Posttesting Sales Effectiveness Evaluations Sales Effectiveness Evaluations Tools: Focus Groups Screening Persuasion Scores Tools: Unaided Recall Tests Aided Recall Tests Inquiry Evaluations Tools: Monitor Sales Brand-to-Sales Effects
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Communication Effects Is the Ad Communicating Well? Communication Effects Is the Ad Communicating Well? Advertising Program Evaluation Sales Effects Is the Ad Increasing Sales? Sales Effects Is the Ad Increasing Sales?
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What to communicate? Get Attention Hold Interest Arouse Desire Obtain Action
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Ways to Handle Advertising
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Sales Departments in Small Companies Sales Departments in Small Companies Advertising Agency Advertising Departments in Larger Companies Advertising Departments in Larger Companies
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Sales Promotion
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Sales Promotion is a Mass Communication Technique That Offers Short-Term Incentives to Encourage Purchase or Sales of a Product or Service. Offers Reasons to Buy Now.
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Sales Promotion Objectives
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Increase short-term sales or help build long-term market share. Get retailers to: – carry new items and more inventory, – advertise products, – give products more shelf space, and – buy product ahead.
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In general, sales promotion should focus on consumer relationship building.
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Reasons for Increase in Sales Promotion
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Growing Power of Retailers Declining Brand Loyalty Increased Promotional Sensitivity Fragmentation of Consumer Markets Short-Term Focus Pressure from inside organization Competition Clutter
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Major Consumer Sales Promotion Tools
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Sample Coupons Cash Refunds Price Packs Premiums Advertising Specialties Advertising Specialties Trial amount of a product Savings when purchasing specified products Refund of part of the purchase price Reduced prices marked on the label or package Goods offered free or low cost as an incentive to buy a product Articles imprinted with an advertiser’s name given as gifts
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Consumer Sales Promotion Techniques Price Deals Advertising Specialties Coupons Sampling Rebates Contests, Games, Sweepstakes Premiums Cross- Promotions
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Price Deals Bargain! Value! Cents-Off Deals Price-Pack Deals Sale!
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Major Trade Sales Promotion Tools
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Discount Allowance
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Objectives of Trade Promotions
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Increase Reseller Inventory Influence Price Discount Defend Against Competitors Avoid Price Reductions Influence Reseller Promotion Gain/Maintain Distribution Increase Reseller Inventory Influence Price Discount Defend Against Competitors Avoid Price Reductions Influence Reseller Promotion Gain/Maintain Distribution
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Trade Sales Promotion Techniques
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Trade Allowances Dealer Loaders Trade Contests Point-of-Purchase Displays Trade Shows Training Programs Push Money
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Developing the Sales Promotion Program
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Decide on the Size of the Incentive Set Conditions for Participation Evaluate the Program Determine How to Promote and Distribute the Promotion Program Determine How to Promote and Distribute the Promotion Program Determine the Length of the Program
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Sales Promotion Uses
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Introduce new products Get existing customers to buy more Attract new customers Combat competition Maintain sales in off season Increase retail inventories Tie in advertising and personal selling Enhance personal selling efforts
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Limitations of Sales Promotion
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Cannot Reverse Declining Sales Trend Cannot Overcome Inferior Product May Encourage Competitive Retaliation May Hurt Profit
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Enough for today...
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Summary
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Media Scheduling
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Step 1. Decide on Reach, Frequency, and Impact Step 1. Decide on Reach, Frequency, and Impact Step 2. Choosing Among Major Media Types Step 3. Selecting Specific Media Vehicles Step 4. Deciding on Media Timing
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Evaluating Advertising Effectiveness
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Communication Effects Is the Ad Communicating Well? Communication Effects Is the Ad Communicating Well? Advertising Program Evaluation Sales Effects Is the Ad Increasing Sales? Sales Effects Is the Ad Increasing Sales?
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Sales Promotion
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Major Consumer Sales Promotion Tools
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Major Trade Sales Promotion Tools
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Developing the Sales Promotion Program
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Decide on the Size of the Incentive Set Conditions for Participation Evaluate the Program Determine How to Promote and Distribute the Promotion Program Determine How to Promote and Distribute the Promotion Program Determine the Length of the Program
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Next….
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Personal Selling
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Principles of Marketing Lecture-34
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