Marketing assignment(include calculation)

Advertising, PR, and Sales

Unrestricted

• Type of promotion • For successful brands, typically done to:

• Maintain brand awareness • Maintain market share

• For new brands, more spending may be necessary

Advertising

• Advertising response function: • Spending for advertising and sales promotion will increases

sales or market share, up to a point • Then, diminishing returns

Source: HBR

Advertising

Types of advertising

• Designed to establish, change, or promote the corporation’s identity as a whole

• Advocacy advertising: • A type of institutional advertising • In which an organization expresses its views on

controversial issues or responds to media attacks

Institutional Advertising

• Touts the benefits of a specific good or service

• Pioneering advertising: • A type of product advertising • Intended to stimulate primary demand for a new

product or product category

Product Advertising

• Competitive advertising: • Designed to influence demand for a specific brand • Typically moves from informative, to emotional appeals • Used in the growth phase of the product life cycle

Product Advertising

• Comparative advertising: • Compares two or more specifically named or shown

competing brands and their performance on attributes • More common when growth is slow or competition is

strong

Product Advertising

• A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals

Advertising Campaigns

• Begin with an advertising objective • How will you know if you are effective? • Define target audience • Define time frame for intended outcomes

• AIDA • Create attention • Arouse interest • Stimulate desire • Call to action (purchase)

Creative decisions

• Product attributes vs benefits • Benefit: what’s in it for me? • Attribute: feature of the product

• Advertising appeals • Reason for a person to buy a product • A unique selling proposition

Creative decisions

Creative decisions - Appeals

• Slice-of-life • Lifestyle • Spokesperson or testimonial • Fantasy • Humorous • Real/animated product symbols • Mood or image • Demonstration • Musical • Scientific

Creative decisions - Execution

• Post-campaign evaluation

• What worked? • What didn’t?

Creative decisions

• Medium: Channel used to convey a message to a target market

• Depends on promotional objectives, appeal, and executional style

• Media planning: Decision advertisers make regarding selection and use of media

Media decisions

• Newspapers • Magazines • Radio • Television • Internet • Outdoor media

Media decisions

• Alternative media: • Shopping carts • Computer screen savers • Interactive kiosks • Advertisements before movies • Posters • Advertainments (online mini movies to promote a product)

Media decisions

Cost per contact

Cost per click Reach

Frequency Audienceselectivity Flexibility

Noise level Life span

Media decisions

• Advertising is run steadily throughout the period

Continuous media schedule

• Advertising is run heavily every other month or every two weeks

Flighted media schedule

• Advertising combines continuous scheduling with flighted scheduling

Pulsing media schedule

• Advertising is run only when the product is likely to be used

Seasonal media schedule

Media decisions

Public Relations

“The element in the promotional mix that evaluates public attitudes, identifies issues

that may elicit public concern, and executes programs to gain public understanding and

acceptance.”

What is public relations?

• New-product publicity • Product placement • Consumer education • Sponsorship • Experiential marketing • Company websites

Public relations tools

• Corporate communication • Public affairs • Lobbying • Employee and investor relations • Crisis management

• Coordinated effort to handle all the effects of unfavorable publicity or other unfavorable events

Public relations functions

• Marketing communication other than advertising, personal selling, and public relations

• Short term incentive to motivate consumers or members of the distribution channel to purchase immediately by:

• Lowering the price • Adding value

Sales promotion

• Activities directed to members of the marketing channel

Trade sales promotion

• Activities targeted to the ultimate consumer market

Consumer sales promotion

Sales promotion

• Trade allowances: • A price reduction offered by manufacturers to

intermediaries, in exchange for doing something like allocating space for a product or buying something during a special period

• Push money: • A bonus for pushing the product through the distribution

channel, like incentives for sales people

• Training: • Often free for complex products

Sales promotion

• Free merchandise: • May be used as payment for a trade allowance

• Store demonstrations: • Viewing or seeing a product before it goes on sale

• Business meetings, conventions, trade shows

Sales promotion

Coupons and rebates Premiums

Loyalty marketing programs

Contests and sweepstakes Sampling

Point-of- purchase

promotion

Sales promotion tools

• Contests: • Involves skill or ability used to compete for prizes

• Sweepstakes: • Winning is based on chance

Sales promotion tools

• Sampling: • Mail to the customer directly • Door-to-door delivery • Package with another product • Demonstrations at a retail store or service outlet • Online sampling

Sales promotion tools

• Point-of-Purchase (P-O-P) Display: • Any promotional display set up at the retailer’s location to

build traffic, advertise the product, or induce impulse buying

Sales promotion tools

• Point-of-Purchase (P-O-P) Display: • Any promotional display set up at the retailer’s location to

build traffic, advertise the product, or induce impulse buying

Sales promotion tools

• Increased use of the Internet • Sales promotions online have proved both effective

and cost-efficient • Marketers have discovered that online coupon

distribution is another way to promote products

• Major goal of retailers is to add potential customers to databases and expand marketing touch points

• Utilization of sales promotions on social media and at the point of purchase

Trends in sales promotion