CHAPTER SEVEN

ADVERTISING MANAGEMENT

ADVERTISING MANAGEMENT PROGRAM

It is the process of preparing and integrating a company’s advertising efforts with the overall IMC message that already exists.

COMPANY ACTIVITIES IN ADVERTISING MANAGEMENT

• 1. IDENTIFY POTENTIAL CUSTOMERS-

A. End users.

(Sunsilk)

COMPANY ACTIVITIES IN ADVERTISING MANAGEMENT

• 1. IDENTIFY POTENTIAL CUSTOMERS-

B. Other businesses

(DELL)

COMPANY ACTIVITIES IN ADVERTISING MANAGEMENT

• 1. IDENTIFY POTENTIAL CUSTOMERS-

C. Others

(GREEN UNIVERSITY)

COMPANY ACTIVITIES IN ADVERTISING MANAGEMENT

• 2. PRODUCTS AND SERVICES ARE DESIGNED TO MEET CUSTOMER NEEDS.

(minivan in U.S.A.)

COMPANY ACTIVITIES IN ADVERTISING MANAGEMENT

• 3. MATCH THE COMPANY’S IMC PROCESS WITH ITS ADVERTISING MANAGEMENT PROGRAM.

(OTOBI – Billboard VS. TV ad)

CHOOSING AN ADVERTISING AGENCY

• Large companies-

a) in-house advertising group,

b) outsourcing some of the functions.

CHOOSING AN ADVERTISING AGENCY

• DECISION VARIABLES

1. Size of the account

2. Money that can be spent on media

3. Objectivity factor

4. Complexity of the product

5. Creativity issue

THE ROLES OF CREATIVES

• Creative are the persons who actually develop and produce advertisements.

ADVERTISING CAMPAIGN MANAGEMENT

• Review the communication market analysis

• Establish communication and advertising objectives

Review the communication market analysis

• The media usage habits of the target market.

(Age & media)

• The media utilized by the competition

Establish communication and advertising objectives

• Building brand image

(Top of mind & top choice)

Establish communication and advertising objectives

• Persuasion

(convincing customers that a particular brand is superior to other brands )

Establish communication and advertising objectives

• Supporting marketing efforts

(McDonald’s Christmas discount offer)

Establish communication and advertising objectives

• Encouraging action

(Asian Sky Shop- Quick purchase)

CHAPTER EIGHT

ADVERTISING MEDIA SELECTION

ACHIEVING ADVERTISING OBJECTIVES

• Effective reach- percentage of audience

• Effective frequency- number of times

MEDIA SELECTION

• Television

• Outdoor

• Internet

• Newspapers

Reach Frequency Cost Clutter Top of mind

CHAPTER ELEVEN

TRADE PROMOTIONS

WAL-MART

TARGET

KMART

THE NATURE OF TRADE PROMOTIONS

• Used by manufacturers and other members of the marketing channels.

• For the purpose of having the good resold.

TYPES OF TRADE PROMOTIONS

• TRADE ALLOWANCES• TRADE CONTESTS• TRADE INCENTIVES• TRAINING PROGRAMS• VENDOR SUPPORT PROGRAMS• TRADE SHOWS• SPECIALTY ADVERTISING• POINT-OF PURCHASE ADVERTISING

• TRADE ALLOWANCES-

A. OFF-INVOICE ALLOWANCE

B. DROP-SHIP ALLOWANCE

C. SLOTTING FEES

D. EXIT FEES

TYPES OF TRADE PROMOTIONS

TYPES OF TRADE PROMOTIONS

A. OFF-INVOICE ALLOWANCEA. OFF-INVOICE ALLOWANCE

Channel member will receive a financial discount on each case ordered.

Used during off season.

TYPES OF TRADE PROMOTIONS

B. DROP-SHIP ALLOWANCEB. DROP-SHIP ALLOWANCE

Money paid to retailers who bypass wholesalers or brokers for preplanned orders

Strong relationship

Lower price

Need not to make sure that middle person will push the manufacturer’s brand.

TYPES OF TRADE PROMOTIONS

C. SLOTTING FEES

To the retailers

To stock new products

To take the shelf space

TYPES OF TRADE PROMOTIONS

D. EXIT FEES

Money paid to retailers to remove an item from their Stock Keeping Units (SKU).

DISADVANTAGES OF TRADE PROMOTIONS

1. Failing to pass along allowances to retail 1. Failing to pass along allowances to retail customerscustomers

2. A retailer purchases a product on-deal in 2. A retailer purchases a product on-deal in one location and ships it to another one location and ships it to another location where it is off-deal. (Diversion)location where it is off-deal. (Diversion)

TRADE CONTESTSTRADE CONTESTS

• Rewards are given as contests prizes to brokers, retail salespeople, retail stores, wholesalers or agents.

• These funds are known as SPIFF MONEY.

CHAPTER FIFTEEN

DATABASE AND DIRECT MARKETING PROGRAMS

DEVELOPING THE IMC DEVELOPING THE IMC DATABASEDATABASE

• DETERMINE OBJECTIVES• COLLECT DATA• BUILD DATA WAREHOUSE• MINE DATA FOR INFORMATION• DEVELOP MARKETING PROGRAMS• EVALUATE MARKETING PROGRAMS

AND DATA WAREHOUSES

DETERMINE OBJECTIVESDETERMINE OBJECTIVES

WHO

HOW

WHERE WHY

WHAT WHEN

DETERMINE OBJECTIVESDETERMINE OBJECTIVES

• Creating information about why customers purchase the products they do.

• Tracking changes in purchasing behaviors. (ready to eat)

MAILMAIL

• The most common form of direct marketing.

• President Obama was sending out direct mail that targeted females in Pennsylvania, highlighting the effectiveness of his healthcare plan.

MAILMAIL

• Advantages- 1. One-to-one communication

with potential customers 2. Higher response rate

• Disadvantages- 1. Cost 2. Competitors have identified the

same set of consumers 3. Large volume of junk mail

CATALOGSCATALOGS

• The key to successful cataloging is an enhanced database.

• Placing catalogs on website/ placing web address on catalogs.