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©2000 Prentice Hall
ObjectivesObjectivesObjectivesObjectives
Developing & Managing an Advertising Developing & Managing an Advertising ProgramProgram
Deciding on Media & Measuring Deciding on Media & Measuring EffectivenessEffectiveness
Sales PromotionSales Promotion Public RelationsPublic Relations
©2000 Prentice Hall
Major Decisions in AdvertisingMajor Decisions in AdvertisingMajor Decisions in AdvertisingMajor Decisions in Advertising
Objectives SettingObjectives Setting
Budget DecisionsBudget Decisions
Message DecisionsMessage Decisions Media DecisionsMedia Decisions
Campaign EvaluationCampaign Evaluation
©2000 Prentice Hall
Informative AdvertisingBuild Primary Demand
Informative AdvertisingBuild Primary Demand
Persuasive AdvertisingBuild Selective Demand
Persuasive AdvertisingBuild Selective Demand
Comparison AdvertisingCompares One Brand to
Another
Comparison AdvertisingCompares One Brand to
Another
Reminder AdvertisingKeeps Consumers Thinking
About a Product.
Reminder AdvertisingKeeps Consumers Thinking
About a Product.
Advertising ObjectivesAdvertising ObjectivesAdvertising ObjectivesAdvertising Objectives
Specific Communication Specific Communication Task Task Accomplished with a Specific Accomplished with a Specific TargetTarget Audience Audience During a Specific Period of During a Specific Period of TimeTime
©2000 Prentice Hall
The Five Ms of AdvertisingThe Five Ms of Advertising
Mission
Salesgoals
Adver-tisingobjectives
Money
Factors toconsider:
Stage in PLC
Market shareand con-sumer base
Competitionand clutter
Advertisingfrequency
Productsubstituta-bility
Message
Message generation
Message evaluationand selection
Message execution
Social-responsibilityreview
MediaReach, frequency,impactMajor media typesSpecific mediavehicles
Media timingGeographicalmedia allocation
Measure-ment
Communi-cationimpact
Salesimpact
©2000 Prentice Hall
Advertising Budget FactorsAdvertising Budget FactorsAdvertising Budget FactorsAdvertising Budget Factors
Stage in the Product Life Cycle
Market Share &Consumer Base
Competition &Clutter
AdvertisingFrequency
ProductSubstitutability
©2000 Prentice Hall
Profiles of Major Media TypesProfiles of Major Media Types
NewspapersAdvantages: Flexibility, timeliness; good local market coverage;
broad acceptance, high believability
Limitations: Short life; poor reproduction quality; smallpass-along audience
TelevisionAdvantages: Combines sight, sound, motion; high attention; high reach; appealing to senses
Limitations: High absolute costs; high clutter; fleeting exposure;less audience selectivity
Direct MailAdvantages: Audience selectivity; flexibility, no ad compe-
tition within same medium; allows personalization
Limitations: Relative high cost; “junk mail” image
©2000 Prentice Hall
RadioAdvantages: Mass use; high geographic and demographic
selectivity; low cost
Limitations: Audio only; fleeting exposure; lower attention; nonstandardized rates; fragmented audiences
MagazinesAdvantages: High geographic and demographic selectivity;
credibility and prestige; high-quality reproduction;long life; good pass-along readership
Limitations: Long ad purchase lead time; waste circulation; no guarantee of position
OutdoorAdvantages: Flexibility; high repeat exposure; low cost; low message competition
Limitations: Little audience selectivity; creative limitations
Profiles of Major Media TypesProfiles of Major Media Types
©2000 Prentice Hall
Classification ofClassification ofAdvertising Timing PatternsAdvertising Timing Patterns
Month
Number ofmessagesper month
Concen-trated
(1) (2) (3)Level Rising Falling Alternating
(4)
Continuous
(8)(7)(6)(5)
(9)Inter-
mittent
(10) (11) (12)(9)
©2000 Prentice Hall
Simplified Rating Sheet for AdsSimplified Rating Sheet for AdsSimplified Rating Sheet for AdsSimplified Rating Sheet for Ads
PoorPooradad
MediocreMediocreadad
AverageAverageadad
GoodGoodadad
GreatGreatadad
0 20 40 60 80 100 __Total__Total
(Attention) How well does the ad catch the reader’s attention? __20(Read-through) How well does the ad lead the reader to read further? __20(Cognitive) How clear is the central message or benefit? __20(Affective) How effective is the particular appeal? __20(Behavior) How well does the ad suggest follow-through action? __20
©2000 Prentice Hall
Advertising StrategyAdvertising StrategyMessage ExecutionMessage Execution
Advertising StrategyAdvertising StrategyMessage ExecutionMessage Execution
TypicalMessage
ExecutionStyles
TypicalMessage
ExecutionStyles
TestimonialEvidence
TestimonialEvidence Slice of LifeSlice of Life
ScientificEvidence
ScientificEvidence
LifestyleLifestyle
TechnicalExpertise
TechnicalExpertise
FantasyFantasy
MusicalMusical
PersonalitySymbol
PersonalitySymbol
Mood orImage
Mood orImage
Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest.
©2000 Prentice Hall
Advertising Program EvaluationAdvertising Program Evaluation
Communication Effects
Is the Ad Communicating Well?
Communication Effects
Is the Ad Communicating Well?
Advertising EvaluationAdvertising EvaluationAdvertising EvaluationAdvertising Evaluation
Sales Effects
Is the Ad Increasing Sales?
Sales Effects
Is the Ad Increasing Sales?
©2000 Prentice Hall
Why the increase in Sales Why the increase in Sales Promotion?Promotion?
Why the increase in Sales Why the increase in Sales Promotion?Promotion?
Growing retailer powerGrowing retailer power Declining brand loyaltyDeclining brand loyalty Increased promotional sensitivityIncreased promotional sensitivity Brand proliferationBrand proliferation Fragmentation of consumer marketFragmentation of consumer market Short-term focusShort-term focus Increased managerial accountabilityIncreased managerial accountability CompetitionCompetition ClutterClutter
©2000 Prentice Hall
Long-Term Promotional Allocation
0
10
20
30
40
50
60
1986 88 90 92 94 1996
Year
%t
of
tota
l -
3 yr
.MA
Trade Promo
Media Adv
Cons. Promo
Cox Direct 19th Annual Survey of Promotional PracticesCox Direct 19th Annual Survey of Promotional Practices
©2000 Prentice Hall
Channels of Sales PromotionsChannels of Sales PromotionsChannels of Sales PromotionsChannels of Sales Promotions
MANUFACTURER
RETAILER
TradeTradePromotionsPromotions
CONSUMER
ConsumerConsumerPromotionsPromotions
Push
PushPullRetailRetail
PromotionsPromotions
©2000 Prentice Hall
Consumer PromotionConsumer PromotionConsumer PromotionConsumer Promotion
Consumer-Promotion Objectives
Consumer-Promotion Tools
Point-of-PurchaseDisplays
Point-of-PurchaseDisplays
PremiumsPremiums
Price PacksPrice Packs
Cash RefundsCash Refunds
CouponsCoupons
SamplesSamples
Patronage Rewards
Patronage Rewards
GamesGames
SweepstakesSweepstakes
ContestsContests
AdvertisingSpecialties
AdvertisingSpecialtiesPatronage Rewards
Entice Consumers to Try a New Product
Entice Consumers to Try a New Product
Lure Customers AwayFrom Competitors’ Products
Lure Customers AwayFrom Competitors’ Products
Get Consumers to “Load Up’on a Mature Product
Get Consumers to “Load Up’on a Mature Product
Hold & Reward Loyal Customers
Hold & Reward Loyal Customers
Consumer Relationship Building
Consumer Relationship Building
©2000 Prentice Hall
““Deal Proneness,”Deal Proneness,”Liechtenstein, Burton, & Netemeyer, Liechtenstein, Burton, & Netemeyer, Journal of RetailingJournal of Retailing, Summer 1997, Summer 1997
““Deal Proneness,”Deal Proneness,”Liechtenstein, Burton, & Netemeyer, Liechtenstein, Burton, & Netemeyer, Journal of RetailingJournal of Retailing, Summer 1997, Summer 1997
Examination of “deal proneness” among Examination of “deal proneness” among consumers in a supermarket settingconsumers in a supermarket setting
Surveys Surveys && Grocery Receipts used Grocery Receipts used Eight types of deals:Eight types of deals:
Cent-off, One-free, Gift, Display, Cent-off, One-free, Gift, Display, Rebate, Contest, Sale, & CouponRebate, Contest, Sale, & Coupon
©2000 Prentice Hall
““Deal Proneness,”Deal Proneness,”Liechtenstein, Burton, & NetemeyerLiechtenstein, Burton, & Netemeyer
““Deal Proneness,”Deal Proneness,”Liechtenstein, Burton, & NetemeyerLiechtenstein, Burton, & Netemeyer
Cluster analysis yielded two interpretable Cluster analysis yielded two interpretable results:results:
49%49% are “deal prone,” are “deal prone,” 51%51% not not 24%24% High “Deal prone,” High “Deal prone,” 50%50% intermediate, intermediate,
26%26% deal insensitive deal insensitive ““Deal-proneness” a generalized construct - Deal-proneness” a generalized construct -
(crosses type of promotion)(crosses type of promotion) Younger & Less educated more likely to be Younger & Less educated more likely to be
deal pronedeal prone
©2000 Prentice Hall
Trade-Promotion Objectives
Trade-Promotion Tools
Specialty Advertising
Items
Specialty Advertising
ItemsContestsContests
Free GoodsFree Goods
Buy-BackGuarantees
Buy-BackGuarantees
AllowancesAllowances
Price-OffsPrice-Offs
Patronage Rewards
Patronage Rewards
Push MoneyPush Money
DiscountsDiscounts
PremiumsPremiums
Displays
Persuade Retailers or Wholesalers to Carry a Brand
Persuade Retailers or Wholesalers to Carry a Brand
Give a Brand Shelf SpaceGive a Brand Shelf Space
Promote a Brand in Advertising
Promote a Brand in Advertising
Push a Brand to ConsumersPush a Brand to Consumers
Trade PromotionsTrade PromotionsTrade PromotionsTrade Promotions
©2000 Prentice Hall
Business-Promotion Objectives Business-Promotion
ToolsGenerate Business LeadsGenerate Business Leads
Stimulate PurchasesStimulate Purchases
Reward CustomersReward Customers
Motivate SalespeopleMotivate Salespeople
ConventionsConventions
Trade ShowsTrade Shows
Sales ContestsSales Contests
Business-to-Business Business-to-Business PromotionPromotion
Business-to-Business Business-to-Business PromotionPromotion
©2000 Prentice Hall
SpecialEvents
SpecialEvents
Written MaterialsWritten
Materials
Corporate Identity Materials
Corporate Identity Materials
SpeechesSpeeches
NewsNews
AudiovisualMaterials
AudiovisualMaterials
Major Public Relations ToolsMajor Public Relations Tools
Public Service
Activities
Public Service
Activities
Web SiteWeb Site
©2000 Prentice Hall
Taco Bell has Taco Bell has purchased the purchased the Liberty Bell!Liberty Bell!
©2000 Prentice Hall
ReviewReviewReviewReview
Developing & Managing an Advertising Developing & Managing an Advertising ProgramProgram
Deciding on Media & Measuring Deciding on Media & Measuring EffectivenessEffectiveness
Sales PromotionSales Promotion Public RelationsPublic Relations