Marketing Management

2nd Edition

Michael R. Czinkota and Masaaki Kotabe

Chapter 12:
Designing Effective
Promotion and
Advertising Strategies
© 2000 South-Western College Publishing Slide #
 Chapter Outline
 Dialogue
 Push versus Pull Strategy
 Consumer vs. Industrial Advertising
 Creating the Correct Message
 The Message
 Types of Media
 Promotional Mix: Factors
 Advertising Budgets
 Selecting an Ad Agency

© 2000 South-Western College Publishing Slide #

 Dialogue

Idea becomes
message

Sender
Message is
ENCODES
transmitted.
the message.

Receiver Receiver gets

DECODES message.
the message.

© 2000 South-Western College Publishing Slide #

 Push versus Pull Strategy

Manufacturer

PUSH
PUSHSTRATEGY:
STRATEGY:
Wholesaler
Communicate
Communicate
through
throughthe
the
distribution
distribution
Retailer channels
channels

Customer

© 2000 South-Western College Publishing Slide #

 Push
Push versus
versus Pull
Pull Strategy
Strategy
Manufacturer

PULL
PULL
STRATEGY:
STRATEGY:
Wholesaler
Communicate
Communicate
directly
directlyto
to
customers
customers Retailer

Customer

© 2000 South-Western College Publishing Slide #

 Consumer vs. Industrial Advertising

Consumer advertising:
targeted at end-user

Industrial advertising:
targeted at business or
institutions

© 2000 South-Western College Publishing Slide #

 Creating the Correct Messages

 Awareness
 Interest
 Understanding
 Attitudes
 Buying Decision

© 2000 South-Western College Publishing Slide #

 The Message

Unique Selling
Proposition can be
achieved through:
 Product features
 Psychological
features
 Association

© 2000 South-Western College Publishing Slide #

 The Message: Other Issues

 Message consistency
 Opinion leaders
 Word of mouth
 Message selection
 Cognitive
dissonance

© 2000 South-Western College Publishing Slide #

 Types of Media

 Newspapers
 Television
 Satellite TV
 Informercials
 Radio
 Movies
 Billboards
 Internet

© 2000 South-Western College Publishing Slide #1

 Promotional Mix: Factors
 Budget
 Promotional message
 Complexity of product
 Market size & location
 Distribution
 Product life cycle
 Competition
 Government regulations
 Ethics

© 2000 South-Western College Publishing Slide #1

 Advertising Budgets

Methods of determining
budgets:
 Affordability (21%)
 Percentage of sales
(44%)
 Competitive parity
(N/A)
 Objective & task (18%)

© 2000 South-Western College Publishing Slide #1

 Selecting an Ad Agency
 Define the need
 Desk research
 Formulate short list
 Evaluation
 Narrow the selection
 Make final selection

© 2000 South-Western College Publishing Slide #1