Principles of marketing
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Principles of Marketing. Lecture-34. Summary of Lecture-33. Advertising. The Five M’s of Advertising. Message Message generation Message evaluation and selection Message execution Social-responsibility review. Money Factors to consider: Stage in PLC Market share and con-

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Principles of Marketing

Lecture-34


Summaryof Lecture-33


Advertising


The Five M’s of Advertising


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


Major Advertising Decisions


Objectives Setting

Budget Decisions

Message Decisions

Media Decisions

Campaign 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 1. Decide on Reach, Frequency,

and Impact

Step 2. Choosing Among Major Media Types

Step 3. Selecting Specific Media Vehicles

Step 4. Deciding on Media 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


Pretesting

Tools:

Posttesting

  • Focus Groups

  • Screening

  • Persuasion Scores

Tools:

Sales Effectiveness

Evaluations

  • Unaided Recall Tests

  • Aided Recall Tests

  • Inquiry Evaluations

Tools:

  • Monitor Sales

  • Brand-to-Sales Effects


Advertising Program Evaluation

Communication Effects

Is the Ad Communicating Well?

Sales Effects

Is the Ad Increasing Sales?


Get Attention

Hold Interest

Arouse Desire

Obtain Action

What to communicate?


Ways to Handle Advertising


Sales Departments in

Small Companies

Advertising

Departments

in Larger Companies

Advertising 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 inSales 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

Trial amount of a product

Savings when purchasing specified products

Coupons

Refund of part of the purchase price

Cash Refunds

Reduced prices marked on the label or package

Price Packs

Goods offered free or low cost as an incentive to buy a product

Premiums

Articles imprinted with an advertiser’s name given as gifts

Advertising

Specialties


Price Deals

Advertising

Specialties

Coupons

Rebates

Sampling

Premiums

Cross-

Promotions

Contests, Games,

Sweepstakes

Consumer Sales Promotion Techniques


Price Deals

Bargain!

Value!

Sale!

Price-Pack Deals

Cents-Off Deals


Major Trade Sales Promotion Tools


  • Discount

  • Allowance


Objectives of Trade Promotions


Avoid Price

Reductions

Gain/Maintain

Distribution

Avoid Price

Reductions

Gain/Maintain

Distribution

Influence

Reseller Promotion

Defend Against

Competitors

Influence

Reseller Promotion

Defend Against

Competitors

Influence

Price Discount

Increase Reseller

Inventory

Influence

Price Discount

Increase Reseller

Inventory


Trade Sales Promotion Techniques


Trade Allowances

Dealer Loaders

Trade Contests

Point-of-Purchase Displays

Trade Shows

Training Programs

Push Money


Developing the Sales Promotion Program


Decide on the Size of the Incentive

Set Conditions for Participation

Determine How to Promote and

Distribute the Promotion Program

Determine the Length of the Program

Evaluate the 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 Reverse Declining Sales Trend

Cannot Overcome Inferior Product

May Encourage Competitive Retaliation

May Hurt Profit


Enough for today. . .


Summary


Media Scheduling


Step 1. Decide on Reach, Frequency,

and Impact

Step 2. Choosing Among Major Media Types

Step 3. Selecting Specific Media Vehicles

Step 4. Deciding on Media Timing


Evaluating Advertising Effectiveness


Advertising Program Evaluation

Communication Effects

Is the Ad Communicating Well?

Sales Effects

Is the Ad Increasing Sales?


Sales Promotion


Major Consumer Sales Promotion Tools


Major Trade Sales Promotion Tools


Developing the Sales Promotion Program


Decide on the Size of the Incentive

Set Conditions for Participation

Determine How to Promote and

Distribute the Promotion Program

Determine the Length of the Program

Evaluate the Program


Next….


Personal Selling


Principles of Marketing

Lecture-34


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