principles of marketing lecture-34. summary of lecture-33
TRANSCRIPT
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Principles of Marketing
Lecture-34
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Summaryof
Lecture-33
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Advertising
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The Five M’s of Advertising
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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
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Major Advertising Decisions
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Objectives SettingObjectives Setting
Budget DecisionsBudget Decisions
Message DecisionsMessage Decisions
Campaign EvaluationCampaign Evaluation
Media DecisionsMedia Decisions
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Choose the Media
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Yellow Pages
Outdoor
Internet
Magazine
Television
Direct Mail
Radio
NewspaperMajor
Kinds of Media
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Today’s Topics
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Advertising (cont..)
Sales Promotion
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Media Scheduling
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Step 1. Decide on Reach, Frequency, and Impact
Step 1. Decide on Reach, Frequency, and Impact
Step 2. Choosing Among Major Media TypesStep 2. Choosing Among Major Media Types
Step 3. Selecting Specific Media VehiclesStep 3. Selecting Specific Media Vehicles
Step 4. Deciding on Media TimingStep 4. Deciding on Media Timing
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Setting the timing and sequence of a series of advertisements.
Sales patterns (seasonal), repurchase cycles, and competitors’ activities are the most important variables.
Advertisers use the concepts of reach, frequency, and gross rating points to measure the effectiveness of media scheduling plans.
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Reach: the number of different people or households exposed to an advertisement at least one during a certain time period.
Frequency: the number of times an individual person is exposed to an advertisement in a certain time.
Gross rating point: reach times frequency.
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Evaluating Advertising Effectiveness
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PretestingPretesting
PosttestingPosttesting
Sales EffectivenessEvaluations
Sales EffectivenessEvaluations
Tools:
•Focus Groups•Screening•Persuasion Scores
Tools:
•Unaided Recall Tests•Aided Recall Tests•Inquiry Evaluations
Tools:
•Monitor Sales•Brand-to-Sales Effects
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Communication Effects
Is the Ad Communicating Well?
Communication Effects
Is the Ad Communicating Well?
Advertising Program EvaluationAdvertising Program Evaluation
Sales Effects
Is the Ad Increasing Sales?
Sales Effects
Is the Ad Increasing Sales?
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What to communicate?
Get Attention
Hold Interest
Arouse Desire
Obtain Action
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Ways to Handle Advertising
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Sales Departments inSmall Companies
Sales Departments inSmall Companies
Advertising AgencyAdvertising Agency
Advertising Departments
in Larger Companies
Advertising Departments
in Larger Companies
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Sales Promotion
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Sales Promotion is a Mass Communication Technique
That Offers Short-Term Incentives to Encourage Purchase or Sales of a
Product or Service.
Offers Reasons to Buy Now.
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Sales Promotion Objectives
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Increase short-term sales or help build long-term market share.
Get retailers to:
–carry new items and more inventory,
–advertise products,
–give products more shelf space, and
–buy product ahead.
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In general, sales promotion should
focus on consumer relationship building.
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Reasons for Increase inSales Promotion
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Growing Power of Retailers Declining Brand Loyalty Increased Promotional Sensitivity Fragmentation of Consumer Markets Short-Term Focus Pressure from inside organization Competition Clutter
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Major Consumer Sales Promotion Tools
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SampleSample
CouponsCoupons
Cash RefundsCash Refunds
Price PacksPrice Packs
PremiumsPremiums
Advertising Specialties
Advertising Specialties
Trial amount of a product
Trial amount of a product
Savings when purchasing specified
products
Savings when purchasing specified
productsRefund of part of the
purchase priceRefund of part of the
purchase priceReduced prices
marked on the label or package
Reduced prices marked on the label or
packageGoods offered free or low
cost as an incentive to buy a product
Goods offered free or low cost as an incentive to
buy a product
Articles imprinted with an advertiser’s name given
as gifts
Articles imprinted with an advertiser’s name given
as gifts
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Consumer Sales Promotion Techniques
Price Deals
AdvertisingSpecialties Coupons
Sampling Rebates
Contests, Games,Sweepstakes
Premiums Cross-Promotions
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Price Deals
Bargain!
Bargain!
Value!
Value!
Cents-Off DealsCents-Off Deals Price-Pack DealsPrice-Pack Deals
Sale!Sale!
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Major Trade Sales Promotion Tools
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Discount
Allowance
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Objectives of Trade Promotions
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Increase ResellerInventory
InfluencePrice Discount
Defend AgainstCompetitors
Avoid PriceReductions
InfluenceReseller Promotion
Gain/MaintainDistribution
Increase ResellerInventory
InfluencePrice Discount
Defend AgainstCompetitors
Avoid PriceReductions
InfluenceReseller Promotion
Gain/MaintainDistribution
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Trade Sales Promotion Techniques
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Trade AllowancesTrade Allowances
Dealer LoadersDealer Loaders
Trade ContestsTrade Contests
Point-of-Purchase DisplaysPoint-of-Purchase Displays
Trade ShowsTrade Shows
Training ProgramsTraining Programs
Push MoneyPush Money
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Developing the Sales Promotion
Program
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Decide on the Size of the IncentiveDecide on the Size of the Incentive
Set Conditions for ParticipationSet Conditions for Participation
Evaluate the ProgramEvaluate the Program
Determine How to Promote andDistribute the Promotion Program Determine How to Promote and
Distribute the Promotion Program
Determine the Length of the ProgramDetermine the Length of the Program
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Sales Promotion Uses
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Introduce new products
Get existing customers to buy more
Attract new customers
Combat competition
Maintain sales in off season
Increase retail inventories
Tie in advertising and personal selling
Enhance personal selling efforts
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Limitations of Sales Promotion
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Cannot Reverse Declining Sales Trend
Cannot Reverse Declining Sales Trend
Cannot Overcome Inferior Product
Cannot Overcome Inferior Product
May Encourage Competitive Retaliation
May Encourage Competitive Retaliation
May Hurt ProfitMay Hurt Profit
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Enough for today. . .
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Summary
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Media Scheduling
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Step 1. Decide on Reach, Frequency, and Impact
Step 1. Decide on Reach, Frequency, and Impact
Step 2. Choosing Among Major Media TypesStep 2. Choosing Among Major Media Types
Step 3. Selecting Specific Media VehiclesStep 3. Selecting Specific Media Vehicles
Step 4. Deciding on Media TimingStep 4. Deciding on Media Timing
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Evaluating Advertising Effectiveness
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Communication Effects
Is the Ad Communicating Well?
Communication Effects
Is the Ad Communicating Well?
Advertising Program EvaluationAdvertising Program Evaluation
Sales Effects
Is the Ad Increasing Sales?
Sales Effects
Is the Ad Increasing Sales?
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Sales Promotion
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Major Consumer Sales Promotion Tools
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Major Trade Sales Promotion Tools
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Developing the Sales Promotion
Program
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Decide on the Size of the IncentiveDecide on the Size of the Incentive
Set Conditions for ParticipationSet Conditions for Participation
Evaluate the ProgramEvaluate the Program
Determine How to Promote andDistribute the Promotion Program Determine How to Promote and
Distribute the Promotion Program
Determine the Length of the ProgramDetermine the Length of the Program
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Next….
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Personal Selling
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Principles of Marketing
Lecture-34