Professional Documents
Culture Documents
1..2010 ASP Sessions
1..2010 ASP Sessions
Promotion
What is advertising
sender
It is
encode successful
when what
TV, print, WOM, the sender
Internet ,POS wants to
medium =ATL/BTL
say is
Manage the correctly
Noise ,filters interpreted
by the
decode receiver
receiver
Advertising Functions
Informing
Persuading
Reminding
Adding Value
Persuading
Strategy Implementation
Assessing Ad Effectiveness
Whole Egg Theory
• 1972 by Ed Ney, then president of Y&R
International.
– offer integrated services-not just advertising but
direct, PR, sales promotion and others-Mr. Ney refers
to it as "the Whole Egg."
– During the mid-1970s, Y&R buys numerous
companies specializing in non-consumer advertising
marketing disciplines, such as healthcare
communications shop and direct response agency
The name and the concept catch on.
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Tools of -IMC
• Advertising
• Direct marketing
• Interactive/internet marketing
• Sales promotion
• PR
• WOM
• Personal selling
• BTL
• POS
IMC –planning model
• Review of marketing plan
– SWOT :environment/competition/TG/product/distribution/
manpower…
• Define the product message /TG/objective
• Understand the best mix of IMC basis the product
/message /TG
• Understand the budget
• Develop IMC
– Message /strategy/tools of IMC/adapting the message
• Integrate the IMC strategy/execution
• Monitor/evaluate & control the IMC
IMC -process
Identify
Markets
Product
Segmentation Decision
-geographic/
Opportunity Pricing
Demographic/
Psychographic Decision Consumer
/VALS/ business
Competition Channel/
Behavior
/benefit Distribution
Target Decision
market
TG
IMC
Positioning decision
-product/pricing
TG/benefits Review
Monitor
modify
IMC-participants
• Advertisers
• Agencies
• Media companies
• Marketing communication specialists
• Collateral services
IMC objectives
• Stage of the product in PLC
• Awareness
• Recall
• Trials
• Informative
• Consumption
• Repeat purchase
Types of agencies/revenue
• Types
– Full services
– Creative boutiques
– Media buying services
– Specialized
• Direct response/PR/interactive/brand
management/collateral/MR
• Payment mechanism
– Commission
– Retainer ship
– Retainership + commission
Why agencies lose clients
• Do not understand the TG /product /market well
• Do not control their business intelligently/poor
recommendation
• Poor service
• Poor Communication
• Personality clashes
• Changes in management /manpower –agency/client
• Conflict of interest
How agencies get clients
• Referrals
• Solicitations
• Presentations
• PR
• Image
Persuasion matrix
Dependent variables-steps in being Independent variables –communication components
persuaded
Message presentation
attention
comprehension
yielding
retention
behavior
Source
• Direct /indirect
• Credible
– Expertise
– trustworthiness
• Attractiveness
– similarity
– Likeability
– celebrity
• power
Source-
Celebrity endorsement
• Stage of the product - It depends on what stage of the product life cycle is the brand in.
• Is it a strategic decision over 4, 5 years- brand value must remain consistent with the value
of the celebrity being endorsed in terms of personality, positioning. So even if the celebrity
changes the values remain consistent ..
• Celebrity–brand match: , strong enough so that the endorsements are able to strongly
influence the thought processes of consumers and create a positive perception of the brand ?
• Constant monitoring mechanism : Are we able to monitor the behavior, conduct and public
image of the celebrity continuously to minimize/maximize any potential.
• Brand over endorser: should ensure that this does not happen by formulating advertising
collaterals and other communications
• Celebrity endorsement is just a channel: it is one part of the communication mix that falls
under the broader category of marketing. I have observed that the teams/ sales /CP
• Selective-demand advertising
• Involves comparing a product to its
competing brand
• May be:
– Direct, naming competitors outright
– Less direct, alluding to competitors (e.g.,
“leading brand”, “Brand X”) but not
naming them
Co-operative Advertising
• co-operative advertising involves the sharing of
the cost of advertising by two or more sponsors:
– a manufacturer and retailers (vertical),
vertical or
– a group of retailers (horizontal)
(horizontal
What are the Objectives?
• primary-demand advertising is intended to
stimulate use of a category of products
• selective-demand advertising is intended to
encourage purchase of a particular brand or the
products and services of a specific firm
Setting Advertising Objectives
Sub-culture
CONSUMER Situational-
determinants
BEHAVIOUR
Consumer –
decision making process
• Problem recognition need/repeat purchase/desire/greed
– maslow’s hierarchy
– Psychoanalalytic theory –Sigmund Freud
– MR probes needs-in depth interview/FGD/association
tests/projecting techniques
• Information search
• Alternatives evaluation
• Purchase decision
• Post purchase evaluation –cognitive dissonance
• Recommendation-WOM
Internal psychological process
• Motivation
• Attitudes/beliefs /baggage
• Culture
– Subculture/social class/reference groups/influencers
• Perception-visual/sensory/psychological
• Attitude formation
• Integration
• Learning
Models of response process-
traditional
AIDA Hierarchy effects model Innovation adoption Information Processing
model model model
Joy Sadness
Trust Disgust
Fear Anger
Surprise Anticipation
Sadness Joy
Disgust Trust
Anger Fear
Anticipation Surprise
• Personnel
– Client, agencies, consumer
• Process
– Rigor, time , budgets, understanding of the personnel /audience ,media type
• Young’s model :immersion, digestion, incubation, illumination, verification
• Graham Wallas : Preparation, incubation, illumination, verification
Creative Strategy
-development involves
• Communication of a product is developing
a series of messages (which make up an
IMC ) which is a set of interrelated ideas
and coordinated activities that revolve on
the core central theme during a specified
period
What is . . .
• The objective
• The target audience
• The message theme
• The support
• The constraints
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The Support
The support claims
highlighted in this
advertisement is that
MicroThins are:
• 30% thinner
• 40% lighter
• 4 times more scratch resistant
• 10 times more impact resistant
• 99.9% UV protection
• Anti-reflective
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Creative Brief - Del Monte
• The Objective – increase awareness of the smaller-size
cans with pull-top lid.
Based on the
Creative Brief
in the
previous slide.
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Left – Right Brain Ads
• “Right-brain” advertisement
Emotional side of brain
Manages abstract ideas, images, and
feelings
Emotional appeal
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An Advertising Campaign
(Steps 1 and 2)
1. Transforming a theme into a coordinated
advertising program to accomplish a specific
goal.
2. Objectives of the campaign determined by
firm’s overall marketing strategy. Typical
objectives are:
– Support personal selling
– Improve dealer relations
– Introduce a new product
– Counteract substitution
– Expand use of a product category
The Advertising Campaign
(Steps 3 and 4)
• Creating a message that:
– Gets and holds the attention of the intended
audience.
– Influences the audience in the desired way.
• Selecting media involves:
– The choice of a medium such as television, radio,
newspaper, or magazine.
– The specific category of the selected medium to be
used, such as special interest (Chatelaine) vs.
general interest magazines (Maclean’s).
– The specific media vehicles.
The Campaign Budget
5 - 79
External Agencies
Boutique ------------------ Full-service
• Advertising agencies
• Media service companies
• Direct marketing agencies
• Consumer and trade promotion
specialists
• Public relations firms
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Choosing an Agency
1. Set goals.
2. Select process and criteria.
3. Screen initial list of applicants.
4. Request client references.
5. Reduce list to 2-3 viable agencies.
6. Request creative pitch.
7. Select agency.
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Evaluation Criteria
Selecting Advertising Agency
• Size of agency
• Relevant experience
• Conflicts of interest
• Creative reputation
• Product capabilities
• Media purchasing capabilities
• Other services available
• Client retention rates
• Personal chemistry
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Advertising Planning and
Research
• General pre-planning input
• Product specific-research
– Major selling idea
• Qualitative research
– Anthropology
– Sociology
– Psychology
• Value and lifestyle model (VALS)
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Key Advertising Personnel
Client Client Client
Marketing Manager Marketing Manager Marketing Manager
Account
Executive
5-84
Steps in Advertising Campaign
Management
• Competitors
• Opportunities
• Target markets
• Customers
• Product positioning
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2. Advertising Goals
5 - 87
3. Advertising Budget
Manner of Distribution:
• Continuous schedule
• Flighting schedule
• Pulsating schedule
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Media selection
• The most cost effective media mix to
ensure achievement of the advertising
goal.
How should you select media?
• Reach
• Frequency
• Impact
Reach
• No. of persons exposed to a particular
media schedule at least once during a
specified time period
Frequency
• No. of times within the specified period
that a person is exposed to that message
Impact
• Qualitative value of an exposure through a
given medium
• GRP (Gross rating points) = R * F
• Wt. GRP = R * F * I
Choosing Media
• Objectives of the ad.
• Audience coverage.
• Requirements of the message.
• Time and location of the buying
decision.
• Media cost (CPM)
• Media characteristics.
Characteristics of Key Media
• out-of-home advertising
• specialty advertising
• emerging media:
– World Wide Web
– infomercials
– place-based media
– videos and CD-ROMs
– yellow pages
Evaluating the Major Media
SMART
Sales Promotion
• Whereas advertising gives a reason to
buy, SP gives an incentive to buy
Sales Promotion
PERSONAL
SELLING ADVERTISING
PUBLICITY SALES
PROMOTION
Sales Promotion
Definition: any activity or material used
as a direct inducement to purchase
Objective: Bolster/complement other
promotional mix elements during a
specific time period
Targeted toward:
• Sales force
• Wholesalers and retailers
• Consumers
Sales Promotion
Methods for Consumers
Coupons, refunds
Rebates, cents-off-
P-O-P material
Product placements/tie-ins
Classifying Types of Sales
Promotion
Promotional Non-price Sampling
pricing promotions
• Price reductions
• Free goods
• Tied offers • Most effective in
• Contests the early stages of a
• Money off next
• Free gifts new product launch
purchase
• Loss leader • Self-supporting offers (#1 use for coupons)
• • Important for food
pricing Multi-brand promos s
products
• Cheap credit • Guarantees and added
• Very expensive
services
Rebates: A Consumer Information
Source
• Buyers fill out rebate forms with names,
•Advantages: •Disadvantages:
•Only short-term
•Motivation method for
•Hidden costs
special efforts
•Confusion
•Short-term sales increase
•Price cutting -Brand image
•Defined target audience
•Postponement effect
•Defined role/objectives
•Significant government
•Indirect roles (e.g., wider regulation
distribution) •Lack of effectiveness
sometimes (learning effect)
A Benefit Congruency Framework of
Sales Promotion Effectiveness
High *
Free
Gifts
* *Price Reductions
Rebates
Low
Low Utilitarian High
Role of The Promotion Mix
• Promotion is an organization’s unique set of
communications (stimuli) designed to influence
(inform, persuade & remind) selected target
audiences into desirable responses.
• Who says what to whom, in what setting , by which
channels, with what purposes.
• Promotion facilitates (efficient) exchange
Advantages of SP
• Induces trials
• To reward loyal customers
• To induce stocking by the trade
• Adjust to short term variations in trade
• Liquidating inventories
• Preempting competition
Disadvantages of SP
• With too many promotion schemes ‘promotion
clutter’ confuses consumers
• Attracts ‘brand switchers’ and ‘deal prone’
customers
• Dilutes brand equity
• Preponement of purchases
• Lowers margins
• Expensive and wasteful, when not handled
properly
Types of SP
• Trade
• Consumer
Developing a SP campaign
• Planning the programme
• Duration
• Incentive to be given
• Assessing viability
• Pretesting
• Implementing and controlling
• Evaluation
Sales Promotion
• Demand-stimulating devices designed to
supplement advertising and facilitate personal
selling.
• Sales promotions include such things as
coupons, in-store displays, premiums, trade
shows, in-store demonstrations, and contests.
• The target for these activities may be
middlemen, end users, or the producer’s own
salesforce.
Results of Sales Promotion