1. © 2000 South-Western College Publishing Slide #1 Marketing Management 2nd Edition Chapter 12: Designing Effective Promotion and Advertising Strategies Michael R. Czinkota and Masaaki Kotabe

2. © 2000 South-Western College Publishing Slide #2 Chapter Outline l Dialogue l Push versus Pull Strategy l Consumer vs. Industrial Advertising l Creating the Correct Message l The Message l Types of Media l Promotional Mix: Factors l Advertising Budgets l Selecting an Ad Agency

3. © 2000 South-Western College Publishing Slide #3 Dialogue Idea becomes message Sender ENCODES the message. Message is transmitted. Receiver gets message. Receiver DECODES the message.

4. © 2000 South-Western College Publishing Slide #4 Push versus Pull Strategy Manufacturer Wholesaler Retailer Customer PUSH STRATEGY: Communicate through the distribution channels PUSH STRATEGY: Communicate through the distribution channels

5. © 2000 South-Western College Publishing Slide #5 Push versus Pull Strategy Manufacturer Wholesaler Retailer Customer PULL STRATEGY: Communicate directly to customers PULL STRATEGY: Communicate directly to customers

6. © 2000 South-Western College Publishing Slide #6 Consumer vs. Industrial Advertising Industrial advertising: targeted at business or institutions Consumer advertising: targeted at end-user

7. © 2000 South-Western College Publishing Slide #7 Creating the Correct Messages l Awareness l Interest l Understanding l Attitudes l Buying Decision

8. © 2000 South-Western College Publishing Slide #8 The Message Unique Selling Proposition can be achieved through: l Product features l Psychological features l Association

9. © 2000 South-Western College Publishing Slide #9 The Message: Other Issues l Message consistency l Opinion leaders l Word of mouth l Message selection l Cognitive dissonance

10. © 2000 South-Western College Publishing Slide #10 Types of Media l Newspapers l Television l Satellite TV l Informercials l Radio l Movies l Billboards l Internet

11. © 2000 South-Western College Publishing Slide #11 Promotional Mix: Factors l Budget l Promotional message l Complexity of product l Market size & location l Distribution l Product life cycle l Competition l Government regulations l Ethics

12. © 2000 South-Western College Publishing Slide #12 Advertising Budgets Methods of determining budgets: l Affordability (21%) l Percentage of sales (44%) l Competitive parity (N/A) l Objective & task (18%)

13. © 2000 South-Western College Publishing Slide #13 Selecting an Ad Agency l Define the need l Desk research l Formulate short list l Evaluation l Narrow the selection l Make final selection