Principles of Marketing

1. Principles of Marketing Lecture-33

2. Summaryof Lecture-32

4. Promotion and Its Goals

5. Informs Builds Relationships Reminds Persuades

6. The Marketing CommunicationsMix

7. Advertising Personal Selling Any Paid Form of Non-personal Presentation by an Identified Sponsor. Personal Presentations by a Firm’s Sales Force. Short-term Incentives to Encourage Sales. Sales Promotion Building Good Relations with Various Publics by Obtaining Favorable Unpaid Publicity. Public Relations Direct Communications With Individuals to Obtain an Immediate Response. Direct Marketing

8. The Communication Process

9. Noise Source Encoding Message Channel Decoding Receiver Feedback

10. Steps in Developing EffectiveCommunication

11. AIDA Model • Attention • Interest • Desire • Action

12. Today’s Topics

13. Advertising

14. Any paid form of non-personal presentation by an identified sponsor.

15. Any form of non-personal communication paid for by sponsor using mass media to persuade/inform an audience • Products/Services • Public Service Advertising • Non-profit org. • People (political candidates, celebrities) • Places (retail outlets, vacation destinations)

16. Objectives

17. Inform: new product, new uses, price changes • Persuade: encourage switching, purchase now, change perceptions • Remind: where to buy, may need in future, top of mind in off-season

18. Too Much Clutter!!!

19. Television: networks, cable, satellite dishes • Print: magazines, newspapers, junk mail • Radio: fragmented audiences, “on the more popular stations, your ads are sandwiched with four other ads.” • Billboards, Internet …

20. Problem… How do you get the attention of the audience????

21. Break Through the Clutter with Impact Advertising

22. Humor appeal • Emotional appeal • Moral appeal • Celebrity appeal • Sensory appeal • Rational appeal

23. Steps to Creating an Effective Advertising Campaign

24. 1) Define your target market 2) Determine their needs from your product - functional - emotional 3) Develop an advertisement that creates an image for your product that is sought by your target market (positioning)

25. The Five M’s of Advertising

26. Message Message generation Message evaluation and selection Message execution Social-responsibility review Money Factors to consider: Stage in PLC Market share and con- sumer base Competition and clutter Advertising frequency Product substituta- bility Mission Sales goals Adver- tising objectives Measure- ment Communi- cation impact Sales impact Media Reach, frequency, impact Major media types Specific media vehicles Media timing Geographical media allocation

27. Major Advertising Decisions

28. Objectives Setting Budget Decisions Message Decisions Media Decisions Campaign Evaluation

29. Message Decisions • Message Strategy • Message Execution • Objectives Setting • Communication objectives • Sales Objectives • Budget Decisions • Affordable Approach • Percent of sales • Competitive parity • Objective and task • Campaign Evaluation • Communication Impact • Sales Impact • Media Decisions • Reach, Frequency, Impact • Major Media Types • Specific Media Types • Media Timing

30. Advertising Objective • Informative Advertising • Persuasive Advertising • Reminding Advertising

31. Setting Message Goals Setting Budget Goals Increasing Brand Awareness Increasing Sales by a Certain Percentage Changing the Image of a Product Recognizing a Need for the Product

32. Setting the Advertising Budget

33. Stage in the Product Life Cycle Product Differentiation Market Share Advertising Frequency Factors in Setting the Advertising Budget Competition and Clutter

34. Affordable Method Percentage- of-Sales Method Competitive- Parity Method Objective- and-Task Method

35. Developing Advertising Strategy • Message Decision • Media Decision

36. Creating the Advertising Message

37. Plan a Message Strategy General Message to Be Communicated to Customers Develop a Message Focus on Customer Benefits Creative Concept “Big Idea” Visualization or Phrase Combination of Both Advertising Appeals Meaningful Believable Distinctive

38. Message Execution • Slice of Life • Lifestyle • Fantasy • Mood or image • Musical • Personality symbol • Technical expertise • Scientific evidence • Testimonial evidence

39. Design the Ad Unique Selling Proposition Humorous Appeals Comparative Advertising Sex Appeals Demonstration Advertising Appeals Fear Appeals Testimonial Slice-of-Life Lifestyle

40. Choose the Media

41. Television Yellow Pages Newspaper Magazine Major Kinds of Media Direct Mail Outdoor Radio Internet

42. Television • Recent trend is the growth of cable television advertisements. • Marketers can now target audiences through special interest channels. (Food network, home and garden, etc).

43. Radio • With commute times growing, radio advertising revenues are growing faster than any other media. • Very easy to target your audience.

44. Print • Consumer and business publications. • Can specifically target your market. • Marketers carefully study subscription rates and demographic data for each news paper/magazine.

45. Billboards, painted bulletins or displays (such as those that appear on the walls of buildings,) and electric spectaculars Can be local, regional, or national Outdoor advertising is effective along metropolitan streets and in other high-traffic areas Outdoor Advertising

46. Other Advertising Media

47. Transit advertising: ads placed both inside and outside of buses, subway trains and stations, and commuter trains • Cinema advertising • Ads on telephone booths and park benches • Ads can be printed in programs of live-theater productions • Directory advertising (yellow pages) • Hot air balloons, blimps, banners behind planes, and scoreboards

48. Enough for today. . .

49. Summary

50. Advertising