Principles of Marketing

Lecture-33

Summaryof

Lecture-32

Promotion and Its Goals

Builds Relationships

Persuades

Informs

Reminds

The Marketing Communications

Mix

AdvertisingAdvertising

Personal SellingPersonal Selling

Any Paid Form of Non-personal Presentation by an Identified Sponsor.

Any Paid Form of Non-personal Presentation by an Identified Sponsor.

Sales Promotion Short-term Incentives to Encourage Sales.

Public RelationsBuilding Good Relations with Various Publics by Obtaining Favorable Unpaid Publicity.

Direct Marketing Direct Communications With Individuals to Obtain an Immediate Response.

Personal Presentations by a Firm’s Sales Force.

The Communication Process

SourceSource EncodingEncoding MessageChannel

MessageChannel DecodingDecoding ReceiverReceiver

FeedbackFeedback

Noise

Steps in Developing Effective

Communication

AIDA ModelAttention

Interest

Desire

Action

Today’s Topics

Advertising

Any paid form of non-personal presentation

by an identified sponsor.

Any form of non-personal communication paid for by sponsor using mass media to persuade/inform an audience –Products/Services–Public Service Advertising–Non-profit org.–People (political candidates, celebrities)–Places (retail outlets, vacation destinations)

Objectives

Inform: new product, new uses, price changes

Persuade: encourage switching, purchase now, change perceptions

Remind: where to buy, may need in future, top of mind in off-season

Too Much Clutter!!!

Television: networks, cable, satellite dishes

Print: magazines, newspapers, junk mailRadio: fragmented audiences, “on the more

popular stations, your ads are sandwiched with four other ads.”

Billboards, Internet …

Problem… How do you get the

attention of the audience????

Break Through the Clutter with

Impact Advertising

Humor appeal

Emotional appeal

Moral appeal

Celebrity appeal

Sensory appeal

Rational appeal

Steps to Creating an Effective Advertising

Campaign

1) Define your target market

2) Determine their needs from your product

- functional

- emotional

3) Develop an advertisement that creates an image for your product that is sought by your target market (positioning)

The Five M’s of Advertising

Mission

Salesgoals

Adver-tisingobjectives

Message

Message generation

Message evaluationand selection

Message execution

Social-responsibilityreview

Money

Factors toconsider:

Stage in PLC

Market shareand con-sumer base

Competitionand clutter

Advertisingfrequency

Productsubstituta-bility

Measure-ment

Communi-cationimpact

Salesimpact

MediaReach, frequency,impactMajor media typesSpecific mediavehicles

Media timingGeographicalmedia allocation

Major Advertising Decisions

Objectives SettingObjectives Setting

Budget DecisionsBudget Decisions

Message DecisionsMessage Decisions

Campaign EvaluationCampaign Evaluation

Media DecisionsMedia Decisions

Objectives Setting

•Communication objectives

•Sales Objectives

Budget Decisions

•Affordable Approach•Percent of sales•Competitive parity•Objective and task

Message Decisions•Message Strategy

•Message Execution

Media Decisions•Reach, Frequency, Impact

•Major Media Types•Specific Media Types

•Media Timing

Campaign Evaluation•Communication Impact

•Sales Impact

Advertising Objective

Informative Advertising

Persuasive Advertising

Reminding Advertising

Setting Message GoalsSetting Message Goals

Setting Budget GoalsSetting Budget Goals

Increasing Brand

Awareness

Increasing Brand

AwarenessIncreasing Sales

by a CertainPercentage

Increasing Salesby a CertainPercentage

Changing the Image of a

Product

Changing the Image of a

Product Recognizing a Need for the

Product

Recognizing a Need for the

Product

Setting the Advertising Budget

Stage in the Product Life Cycle

Stage in the Product Life Cycle

Competition and Clutter

Competition and Clutter

Market Share

Market ShareAdvertising

Frequency

Advertising Frequency

ProductDifferentiation

ProductDifferentiation

Factors in Setting the Advertising

Budget

Percentage-of-SalesMethod

Affordable Method

Competitive-Parity

Method

Objective-and-TaskMethod

Developing Advertising Strategy

Message Decision

Media Decision

Creating the Advertising Message

Plan a Message StrategyGeneral Message to Be Communicated to Customers

Plan a Message StrategyGeneral Message to Be Communicated to Customers

Develop a Message Focus on

Customer Benefits

Develop a Message Focus on

Customer Benefits Creative Concept“Big Idea”

Visualization or PhraseCombination of Both

Creative Concept“Big Idea”

Visualization or PhraseCombination of Both Advertising Appeals

MeaningfulBelievableDistinctive

Advertising AppealsMeaningfulBelievableDistinctive

Message Execution–Slice of Life–Lifestyle–Fantasy–Mood or image–Musical–Personality symbol–Technical expertise–Scientific evidence–Testimonial evidence

Unique Selling Proposition

Unique Selling PropositionHumorous

Appeals

HumorousAppeals

Fear AppealsFear Appeals

ComparativeAdvertising

ComparativeAdvertising

DemonstrationDemonstration

TestimonialTestimonial

Design the Ad

Advertising Appeals

Slice-of-LifeSlice-of-LifeLifestyleLifestyle

Sex AppealsSex Appeals

Choose the Media

Yellow Pages

Outdoor

Internet

Magazine

Television

Direct Mail

Radio

NewspaperMajor

Kinds of Media

Television Recent trend is the growth

of cable television advertisements.

Marketers can now target audiences through special interest channels. (Food network, home and garden, etc).

Radio With commute times

growing, radio advertising revenues are growing faster than any other media.

Very easy to target your audience.

Print Consumer and business publications.

Can specifically target your market.

Marketers carefully study subscription rates and demographic data for each news paper/magazine.

Outdoor Advertising

Billboards, painted bulletins or displays (such as those that appear on the walls of buildings,) and electric spectaculars

Can be local, regional, or national

Outdoor advertising is effective along metropolitan streets and in other high-traffic areas

Other Advertising Media

Transit advertising: ads placed both inside and outside of buses, subway trains and stations, and commuter trains

Cinema advertising Ads on telephone booths and park

benches Ads can be printed in programs of live-

theater productions Directory advertising (yellow pages) Hot air balloons, blimps, banners behind

planes, and scoreboards

Enough for today. . .

Summary

Advertising

The Five M’s of Advertising

Mission

Salesgoals

Adver-tisingobjectives

Message

Message generation

Message evaluationand selection

Message execution

Social-responsibilityreview

Money

Factors toconsider:

Stage in PLC

Market shareand con-sumer base

Competitionand clutter

Advertisingfrequency

Productsubstituta-bility

Measure-ment

Communi-cationimpact

Salesimpact

MediaReach, frequency,impactMajor media typesSpecific mediavehicles

Media timingGeographicalmedia allocation

Major Advertising Decisions

Objectives SettingObjectives Setting

Budget DecisionsBudget Decisions

Message DecisionsMessage Decisions

Campaign EvaluationCampaign Evaluation

Media DecisionsMedia Decisions

Choose the Media

Yellow Pages

Outdoor

Internet

Magazine

Television

Direct Mail

Radio

NewspaperMajor

Kinds of Media

Next….

Advertising (cont..)

Sales Promotion

Principles of Marketing

Lecture-33