Principles of Marketing

1. Principles of Marketing Promotion 2: Advertising and Sales Promotions

2. Consumer Understanding

3. Major Advertising Decisions (Fig. 15.1) • 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

4. Advertising Strategic Objectives Consumer Understanding Ad Execution

5. Advertising Strategic Objectives Awareness—pioneering, “teaser,” etc. Interest—information (functional or image) Evaluation—persuasion Trial—POP, retailer co-op, sales promotion Evaluation—reminder

6. Ad Execution • Message • Ad elements—source, pictures, sounds, aesthetics, appeal • Media • Schedule

7. Developing Advertising Strategy Advertising Message and Advertising Media

8. Developing Advertising Strategy: Message Execution Testimonial Evidence Slice of Life Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest. Scientific Evidence Lifestyle Typical Message Execution Styles Fantasy Technical Expertise Personality Symbol Mood or Image Musical

9. Step 1. Decide on Reach, Frequency, and Impact Advertising Strategy:Selecting Advertising Media Step 2. Choosing Among Major Media Types Media Habits of Target Consumers, Nature of the Product, Types of Message, Cost Step 3. Selecting Specific Media Vehicles Specific Media Within a Given Type, i.e. Magazines. Must Balance Media Cost Against Media Factors: Audience Quality & Attention, Editorial Quality Step 4. Deciding on Media Timing Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing

10. Ad Evaluation Match the measures to the objectives Ad effectiveness can rarely be assessed with sales data. IRI test cities.

11. What is 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.

12. Sales Promotions Strategic Objectives Awareness—demonstrations, tie-ins, samples, displays Interest—trade discounts and allowances Evaluation--??? Trial—samples, coupons, deals, rebates, premiums Evaluation—patronage programs, contests

13. Rapid Growth of Sales Promotion • Several forms. • Rapid growth.

14. Sales Promotion Objectives • Sales and market share • Influence retailers • In general, sales promotion should focus on consumer relationship building.

15. Major Consumer Sales Promotion Tools Sample Trial amount of a product Coupons Savings when purchasing specified products Cash Refunds Refund of part of the purchase price Price Packs Reduced prices marked on the label or package Premiums Goods offered free or low cost as an incentive to buy a product Advertising Specialties Articles imprinted with an advertiser’s name given as gifts

16. Patronage Rewards Cash or other rewards for the use of a certain product Point-of-Purchase Displays and demonstrations that take place at the point of sale Contests Consumers submit an entry to be judged Sweepstakes Consumers submit their names for a drawing Game Presents consumers with something every time they buy Major Consumer Sales Promotion Tools

17. Trade-Promotion Tools Trade-Promotion Objectives Persuade Retailers or Wholesalers to Carry a Brand Discounts Give a Brand Shelf Space Allowances Promote a Brand in Advertising Push a Brand to Consumers Major Trade Sales Promotion Tools

18. Business-Promotion Tools Business-Promotion Objectives Conventions Generate Business Leads Stimulate Purchases Trade Shows Reward Customers Sales Contests Motivate Salespeople Major Business Sales Promotion Tools

19. Decide on the Size of the Incentive Developing the Sales Promotion Program Set Conditions for Participation Determine How to Promote and Distribute the Promotion Program Determine the Length of the Program Evaluate the Program

20. Sales Promotions and Evaluation? Positive—sales promotion as “reinforcement” Negative—sales promotion as “a reason to buy” Brand “loyals” vs. Brand “switchers”