chapter 15 copyright john wiley & sons 2007 presentation prepared by robin roberts, griffith...

Chapter 15 Copyright John Wiley & Sons 2007

Presentation prepared by Robin Roberts, Griffith University and Mike Spark, Swinburne University of Technology


Chapter 15 The promotion mix


Chapter Objectives

1. Describe the nature and types of advertising

2. Explain the major steps in developing an advertising campaign

3. Recognise the tools used in public relations

4. Define personal selling and understand its purpose

5. Explain what sales promotion activities are and how they are used

6. Recognise specific consumer and trade sales promotion methods


An innovative and effective international advertising campaign

Subway – the Jared Fogle campaign

Dial-Up Broadband


A consistent advertising platform: Virgin Blue’s television advertising campaign

“If only you got Virgin Blue service everywhere”

Dial-Up Broadband


The nature and types of advertising

Advertising — Paid non-personal communication about an organisation and its products transmitted to a target audience through mass media

– Mass Media includes: TV, radio, the Internet, newspapers, magazines, direct mail, outdoor displays and signs on buses and taxis.

– It promotes goods, services, ideas, images, issues and people


Types of advertising

• Institutional – organisational images, ideas and political issues

• Advocacy – promotes a company’s position

• Product – highlights uses, features and benefits

• Pioneer – attempts to stimulate demand for a product category by informing


Types of advertising

• Competitive – identifies special features, uses and advantages relative to competition

• Comparative - compares two or more brands

• Reminder – used to remind about uses, characteristics and benefits

• Reinforcement – assures users they chose the right brand and tells them how to get the most satisfaction from it


Developing an advertising campaign

The creation and

execution of a series

of advertisements to

communicate with a

particular target

audience


Creating an advertising campaign

1. Target audience – is the group of people at whom advertisements are aimed

2. Defining the advertising objectives – what does the firm hope to accomplish with the campaign?

3. Creating the advertising platform – basic issues or selling points to be included in the advertising campaign


Creating an advertising campaign (cont'd)

4. Determining the advertising budget – the total amount of money a marketer allocates for advertising for a specific period

5. Developing the media plan – sets out the media vehicles and the time schedule for each medium.



6. Creating the advertising message – comprises both Content and Form

The content is affected by the product or service features, uses and benefits

Both content and form are influenced by the characteristics of the target audience and the choice of media



Copy– the verbal portion of an advertisement

Copy Guidelines– identify a specific desire or problem

– recommend the product to satisfy the desire or solve the problem

– state product benefits

– substantiate advertising claims

– ask the buyer to take action



Storyboard– A mockup combining copy and visual

material to show the sequence of major scenes in a commercial.

Artwork– Illustration and layout of the advertisement



Illustrations– Photos, drawings, graphs, charts,

and tables used to spark audience interest.

Layout– The physical arrangement of an

advertisements' illustration and copy.



7. Executing the campaign – Planning and coordination by people

and organisations– Implementation by:

• detailed scheduling of campaign phases

• evaluation and corrective action as necessary to make the campaign more effective



8. Evaluating advertising effectiveness

• Pretest – before the campaign, often by a consumer jury

• Enquiries – during the campaign

• Post-test – after the campaign, often by consumer surveys


Public Relations

Public relations A broad range of communications effortsused to create andmaintain favourablerelations between anorganisation and itsstakeholders

ToolsWritten materials– brochures– Newsletters– Annual reports

Corporate identity materials

– logos, graphics– speeches – sponsored events


Public relations (cont’d)

Publicity need not only be used in crisis – it

should be used on a positive, ongoing basis

Advantages• Credibility• Significant word-of-mouth communications

Limitations• Acceptance by news media• Timely, interesting, accurate, and in the public

interest


Public relations (cont'd)

Dealing with unfavourable public relations

Prevention of negative incidents and events

– Safety programs, inspections, and effective quality control procedures

Preparedness for negative incidents and events

– Predetermined policies and procedures that expedite news coverage


What is personal selling?

Personal Selling — Paid personal

communication that informs customers and

persuades them to buy products

– Most adjustable to customer information needs

– Most precise (targeted) form of promotion methods

– Most expensive element in promotion mix


Personal selling process


How important is personal selling to your organisation?

Dial-Up Broadband


Personal selling process

1. Prospecting

– Developing a list of potential customers

2. Preapproach

– Before contacting prospects, information is found and analysed about each prospect

3. Approach

– The manner in which a salesperson contacts a potential customer


Personal selling process (cont'd)

4. Making the presentation – Key actions to undertake during the

presentation: stimulate interest, hold interest– Ways to enhance presentation’s

effects/interactions through touching, holding or using product

5. Overcoming objectives – Treat objections as requests for further

information– Anticipate likely objections and prepare your

responses.


Personal selling process (cont'd)

6. Closing the sale – The stage in the selling process when the

sales person ask the prospect to buy the product

7. Following up – Determining if the delivery and setup of order

was completed to the customer’s satisfaction

– This is the most under-used part of the selling process by most sales people


Sales promotion

Sales promotion

An activity and/or

material that acts as

a direct inducement

• Encourages product trial and purchase

Choice of Sales promotion depends on

• Product characteristics

• Target market

• Distribution Channel

• Resellers

• Competitive and legal environment


Consumer sales promotion methods

Consumer sales promotion methods are ways of encouraging consumers to patronise specific stores or to try particular products

1. Coupons and cents-off offers

2. Refunds and rebates

3. Loyalty programs

4. Point of purchase materials and demonstrations

5. Free samples and premiums

6. Consumer games, contests and sweepstakes


Consumer sales promotion methods (cont’d)

Coupons and cents-off offers

• Coupons – written price reductions used to encourage consumers to buy

• Cents-off offers let buyers pay less than the regular price to encourage purchase

Refunds and rebates

• Cash Refund – Offers consumers money when they mail in a proof of purchase

• Rebate – Sends consumers a specific amount of money for making a product purchase


Consumer sales promotion methods (cont'd)

Loyalty programs– Reward customers who purchase repeatedly

Point-of-purchase materials and demonstrations

• Point-of-purchase displays

– Signs, window displays, display racks, and similar means used to attract customers and to encourage immediate purchases

• Demonstrations

– Used temporarily to encourage trial use– Highly effective, yet costly in practice


Consumer sales promotion methods (cont’d)

Free Samples and Premiums• Free Samples

– Free products given out to encourage trial and to increase sales volume

• Premiums– Items offered free or at a minimal cost as a bonus

for purchasing a product

– Consumer Games, Contests and Sweepstakes – Generates retail traffic and increases exposure to

promotional messages

– Entrants submit their names for inclusion in a drawing for prizes


Trade sales promotion methods

Trade sales promotion methods • ways of persuading wholesalers and

retailers to carry a producer’s products and to market them aggressively

Trade allowances• Buying allowance

– A temporary price reduction to resellers for purchasing specified quantities of a product


Trade sales promotion methods (cont’d)

Trade allowances• Buy-back allowance

– A sum of money a producer gives a reseller for each additional unit bought after an initial promotion deal is over

• Scan-back allowance– A manufacturers reward to retailers based on

number of items scanned• Merchandise allowance

– A manufacturer’s agreement to help reseller’s pay for promotional efforts



Cooperative advertising and dealer listings• Cooperative advertising

– Sharing of media costs by manufacturer and retailer for advertising the manufacturer’s products.

• Dealer listings– Identifying retailers that sell the product;

influences retailers to carry the products, builds traffic at the retail level, and encourages consumers to shop at participating dealers.



Free merchandise and gifts• Free merchandise

– A manufacturer’s reward given to resellers for purchasing a stated quantity of goods.

• Dealer loader– A gift, often part of a display, offered to

a retailer who purchases a specified quantity of merchandise.



Premium (Push) Money– Extra compensation to salespersons for

pushing a line of products

Sales Contests– A means of motivating distributors,

retailers, and salespeople by recognising outstanding achievements


What are the pros and cons of advertising on radio versus other media?

Country Rap

(Audio only) (Audio only)

chapter 15 copyright john wiley & sons 2007 presentation prepared by robin roberts, griffith...

Documents

advertising campaign

copyright john wiley

advertising objectives

advertising campaign

advertising budget

advertising message

chapter objectives

mass media mass media