Principles of

Marketing

Lecture-34
Summary
of
Lecture-33
Advertising
The Five M’s of
Advertising
 Message
Money Message generation
Factors to Message evaluation
consider: and selection

Mission Message execution

Stage in PLC Measure-
Social-responsibility ment
Sales Market share review
goals and con- Communi
sumer base cation
Media
Adver- impact
tising Competition Reach, frequency,
objectives and clutter impact Sales
Advertising Major media types impact
frequency Specific media
vehicles
Product Media timing
substituta-
bility Geographical
Major Advertising
Decisions
 Objectives
Objectives Setting
Setting

Budget
Budget Decisions
Decisions

Message
Message Decisions
Decisions Media
Media Decisions
Decisions

Campaign
Campaign Evaluation
Evaluation
Choose the Media
Television Yellow Pages

Newspaper Magazine
Major
Kinds of
Media
Direct Mail Outdoor

Radio Internet
Today’s Topics
Advertising (cont..)

Sales Promotion
Media Scheduling
 Step
Step 1.
1. Decide
Decide on
on Reach,
Reach, Frequency,
Frequency,
and
and Impact
Impact

Step
Step 2.
2. Choosing
Choosing Among
Among Major
Major Media
Media Types
Types

Step
Step 3.
3. Selecting
Selecting Specific
Specific Media
Media Vehicles
Vehicles

Step
Step 4.
4. Deciding
Deciding on
on Media
Media Timing
Timing
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.
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.
Evaluating Advertising
Effectiveness
 Tools:
Pretesting
Pretesting •Focus Groups
•Screening
•Persuasion Scores

Tools:
Posttesting
Posttesting •Unaided Recall Tests
•Aided Recall Tests
•Inquiry Evaluations

Sales
Sales Effectiveness
Effectiveness Tools:
Evaluations
Evaluations •Monitor Sales
•Brand-to-Sales Effects
 Advertising
Advertising Program
Program Evaluation
Evaluation

Communication
Communication Effects
Effects Sales
Sales Effects
Effects
Is
Isthe
theAd
Ad Communicating
CommunicatingWell?
Well? Is
Isthe
theAd
AdIncreasing
IncreasingSales?
Sales?
What to communicate?
Get Attention

Hold Interest

Arouse Desire

Obtain Action
Ways to Handle
Advertising
Sales Departments in Advertising
Advertising
Sales Departments in Departments
Small Companies
Small Companies Departments
in
in Larger
Larger Companies
Companies

Advertising
Advertising Agency
Agency
Sales Promotion
 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.
Sales Promotion
Objectives
 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.
 In general, sales
promotion should
focus on consumer
relationship building.
Reasons for Increase in
Sales Promotion
Growing Power of Retailers
Declining Brand Loyalty
Increased Promotional Sensitivity
Fragmentation of Consumer Markets
Short-Term Focus
Pressure from inside organization
Competition
Clutter
Major Consumer Sales
Promotion Tools
 Sample
Sample Trial
Trial amount
amount of
of aa product
product

Coupons Savings
Savings when
when purchasing
purchasing
Coupons specified
specified products
products

Cash Refund
Refund of
of part
part of
of the
the
Cash Refunds
Refunds purchase
purchase price
price
Price
Price Packs
Packs Reduced
Reduced prices
prices marked
marked
on
on the
the label
label or
or package
package
Goods
Goods offered
offered free
free or
or low
low
Premiums
Premiums cost
cost as
as an
an incentive
incentive toto buy
buy aa
product
product
Articles
Articles imprinted
imprinted with
with anan
Advertising
Advertising advertiser’s
advertiser’s name
name given
given as as
Specialties
Specialties gifts
Consumer Sales Promotion
Techniques
Price Deals

Advertising
Specialties Coupons

Sampling Rebates

Premiums Cross-
Promotions

Contests, Games,
Sweepstakes
 Price Deals

n !
a i V
r g al
a
B Sale ue
! !

Cents-Off
Cents-Off Deals
Deals Price-Pack
Price-Pack Deals
Deals
Major Trade Sales
Promotion Tools
Discount
Allowance
Objectives of Trade
Promotions
 Avoid Price Gain/Maintain
Avoid Price
Reductions Gain/Maintain
Distribution
Reductions Distribution

Defend Against Influence

Defend Against
Competitors Influence
Reseller Promotion
Competitors Reseller Promotion

Increase Reseller Influence

Increase Reseller Influence
Price Discount
Inventory
Inventory Price Discount
Trade Sales Promotion
Techniques
Trade
Trade Allowances
Allowances

Dealer
Dealer Loaders
Loaders

Trade
Trade Contests
Contests

Point-of-Purchase
Point-of-Purchase Displays
Displays

Trade
Trade Shows
Shows

Training
Training Programs
Programs

Push
Push Money
Money
 Developing the
Sales Promotion
Program
 Decide
Decide on
on the
the Size
Size of
of the
the Incentive
Incentive

Set
Set Conditions
Conditions for
for Participation
Participation
Determine
Determine HowHow to
to Promote
Promote and
and
Distribute
Distribute the
the Promotion
Promotion Program
Program
Determine
Determine the
the Length
Length of
of the
the Program
Program

Evaluate
Evaluate the
the Program
Program
Sales Promotion
Uses
 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
Limitations of Sales
Promotion
Cannot
Cannot Reverse
Reverse Declining
Declining
Sales Trend

Cannot Overcome Inferior

Product

May
May Encourage
Encourage Competitive
Competitive
Retaliation

May Hurt Profit

Enough for
today. . .
Summary
Media Scheduling
 Step
Step 1.
1. Decide
Decide on
on Reach,
Reach, Frequency,
Frequency,
and
and Impact
Impact

Step
Step 2.
2. Choosing
Choosing Among
Among Major
Major Media
Media Types
Types

Step
Step 3.
3. Selecting
Selecting Specific
Specific Media
Media Vehicles
Vehicles

Step
Step 4.
4. Deciding
Deciding on
on Media
Media Timing
Timing
Evaluating Advertising
Effectiveness
 Advertising
Advertising Program
Program Evaluation
Evaluation

Communication
Communication Effects
Effects Sales
Sales Effects
Effects
Is
Isthe
theAd
Ad Communicating
CommunicatingWell?
Well? Is
Isthe
theAd
AdIncreasing
IncreasingSales?
Sales?
Sales Promotion
Major Consumer Sales
Promotion Tools
Major Trade Sales
Promotion Tools
 Developing the
Sales Promotion
Program
Decide
Decide on
on the
the Size
Size of
of the
the Incentive
Incentive

Set
Set Conditions
Conditions for
for Participation
Participation
Determine
Determine HowHow to
to Promote
Promote and
and
Distribute
Distribute the
the Promotion
Promotion Program
Program

Determine
Determine the
the Length
Length of
of the
the Program
Program

Evaluate
Evaluate the
the Program
Program
Next….
Personal Selling
Principles of
Marketing

Lecture-34