objectives

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©2000 Prentice Hall Objectives Objectives Developing & Managing an Advertising Program Developing & Managing an Advertising Program Deciding on Media & Measuring Effectiveness Deciding on Media & Measuring Effectiveness Sales Promotion Sales Promotion Public Relations Public Relations

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Objectives. Developing & Managing an Advertising Program Deciding on Media & Measuring Effectiveness Sales Promotion Public Relations. Advertising Objectives. Informative Advertising Build Primary Demand. Specific Communication Task Accomplished with a Specific Target Audience - PowerPoint PPT Presentation

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Page 1: Objectives

©2000 Prentice Hall

ObjectivesObjectivesObjectivesObjectives

Developing & Managing an Advertising ProgramDeveloping & Managing an Advertising Program Deciding on Media & Measuring EffectivenessDeciding on Media & Measuring Effectiveness Sales PromotionSales Promotion Public RelationsPublic Relations

Page 2: Objectives

©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

Page 3: Objectives

©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

Page 4: Objectives

©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

Page 5: Objectives

©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

Page 6: Objectives

©2000 Prentice Hall

Advertising StrategyAdvertising StrategyMessage ExecutionMessage Execution

Advertising StrategyAdvertising StrategyMessage ExecutionMessage Execution

TypicalMessageExecution

Styles

TypicalMessageExecution

Styles

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.

Page 7: Objectives

©2000 Prentice Hall

Advertising EvaluationAdvertising EvaluationAdvertising EvaluationAdvertising Evaluation

Advertising Program EvaluationAdvertising Program Evaluation

Communication Effects

Is the Ad Communicating Well?

Communication Effects

Is the Ad Communicating Well?

Sales Effects

Is the Ad Increasing Sales?

Sales Effects

Is the Ad Increasing Sales?

Page 8: Objectives

©2000 Prentice Hall

Why the increase in Sales Promotion?Why the increase in Sales Promotion?Why the increase in Sales Promotion?Why the increase in Sales 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

Page 9: Objectives

©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

Page 10: Objectives

©2000 Prentice Hall

Channels of Sales PromotionsChannels of Sales PromotionsChannels of Sales PromotionsChannels of Sales Promotions

MANUFACTURER

RETAILER

TradeTradePromotionsPromotions

CONSUMER

ConsumerConsumerPromotionsPromotions

Push

PushPullRetailRetail

PromotionsPromotions

Page 11: Objectives

©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

AdvertisingSpecialties

Patronage 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

Page 12: Objectives

©2000 Prentice Hall

““Deal Proneness,”Deal Proneness,”Liechtenstein, Burton, & Liechtenstein, Burton, & Netemeyer, Netemeyer, Journal of Journal of RetailingRetailing, Summer 1997, Summer 1997

““Deal Proneness,”Deal Proneness,”Liechtenstein, Burton, & Liechtenstein, Burton, & Netemeyer, Netemeyer, Journal of Journal of RetailingRetailing, Summer 1997, Summer 1997

Examination of “deal proneness” Examination of “deal proneness” among consumers in a among consumers in a supermarket settingsupermarket setting

Surveys Surveys && Grocery Receipts Grocery Receipts usedused

Eight types of deals:Eight types of deals: Cent-off, One-free, Gift, Cent-off, One-free, Gift,

Display, Rebate, Contest, Display, Rebate, Contest, Sale, & CouponSale, & Coupon

““Deal Proneness,”Deal Proneness,”Liechtenstein, Liechtenstein, Burton, & NetemeyerBurton, & Netemeyer

““Deal Proneness,”Deal Proneness,”Liechtenstein, Liechtenstein, Burton, & NetemeyerBurton, & Netemeyer

Cluster analysis yielded two Cluster analysis yielded two interpretable results:interpretable 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 Deal-proneness” a generalized

construct - (crosses type of construct - (crosses type of promotion)promotion)

Younger & Less educated more Younger & Less educated more likely to be deal pronelikely to be deal prone

Page 13: Objectives

©2000 Prentice Hall

Trade-Promotion ObjectivesTrade-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

Page 14: Objectives

©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 PromotionBusiness-to-Business PromotionBusiness-to-Business PromotionBusiness-to-Business Promotion

Page 15: Objectives

©2000 Prentice Hall

Major Public Relations ToolsMajor Public Relations Tools

SpecialEvents

SpecialEvents

Written MaterialsWritten

Materials

Corporate Identity Materials

Corporate Identity Materials

SpeechesSpeeches

NewsNews

AudiovisualMaterials

AudiovisualMaterials

Public Service

Activities

Public Service

Activities

Web SiteWeb Site