1. MKT6 - Slide 1 to 13 1 6. Advertising Strategies MKT6

2. MKT6 - Slide 1 to 132 How will Advertising improve sales? ► Make the product the most desirable product available ► Harness this desire by making it easy for the audience to act, e.g., toll-free lines: “call now!” ► Could actually make it more difficult for the purchase – “brand image”: useful to guage the demand for the product

3. MKT6 - Slide 1 to 133 Types of Advertising ► Product – aims to sell a specific product and is targeted at the final users or channel members. Types:  Pioneer  Competitive  Comparative  Reminder ► Institutional – used to promote image, reputation, ideas of Company rather than product

4. MKT6 - Slide 1 to 134 Product Advertising ► Pioneer  Tries to develop primary demand usually for new product (Intro in PLC)  Informs consumers about new product ► Competitive  Attempts to develop selective demand for specific brand (later in PLC)  Attempts to differentiate

5. MKT6 - Slide 1 to 135 Product Advertising (contd) ► Comparative  Aggressive that makes direct reference to rival brand  Risky: draws attention to rival brand & alienates certain consumers ► Reminder  Attempts to keep product’s name in forefront of consumers’ minds  Used for well-established products in late PLC

6. MKT6 - Slide 1 to 136 Stages in an Advertising Campaign ► Stage 1: Set advertising objectives ► Stage 2: Set advertising budget ► Stage 3: Determine key messages and target audience ► Stage 4: Decide what advertising media to use ► Stage 5: Evaluate results of the advertising campaign

7. MKT6 - Slide 1 to 137 Stage 1: Advertising Objectives ► Common objectives:  Position firm’s brand  Introduce new products to specific markets  Attract new channel members  Provide ongoing contact with existing customers ► Advertising objectives fall into 3 main categories:  To inform  To persuade  To remind

8. MKT6 - Slide 1 to 138 Stage 2: Advertising Budget ► Percentage of sales? ► Any ideas?

9. MKT6 - Slide 1 to 139 Stage 3: Messages & Target Audience ► Message must be:  Meaningful – customers find message relevant  Distinctive – capture attention  Believable ► Target audience?

10. MKT6 - Slide 1 to 1310 Stage 4: Which Media? ► Factors in choosing media:  Promotion objectives  Target audience  Advertising budget  Characteristics of the various media ► When choosing media, need to consider reach (proportion of target audience exposed), frequency, media impact (e.g., TV may have more impact for seniors traveling) ► Another important factor is timing of the campaign

11. MKT6 - Slide 1 to 1311 Stage 5: Evaluation of the advertising campaign ► Focus on:  Communication effects (intended message communicated effectively to intended audience?)  Sales effect (generated intended sales growth?) ► Effectiveness of an advert – compared to objectives (see p 377)

12. MKT6 - Slide 1 to 1312 Cooperative Advertising ► Involves middlemen and producers sharing costs. Advantages:  Allows middlemen to compete directly in their local markets by providing some control  Better value for money for producers  Ads are likely to be better targeted  Acts as an incentive for channel members  Allows ad messages to be coordinated, integrated and consistent

13. MKT6 - Slide 1 to 1313 Advertising on the Internet ► Banner ads ► Text ads ► Interstitials ► Pop-up ads ► Opt-out mailing ► HTML ads ► Rich-media ads ► Hybrid ads ► Sponsorships/partnerships