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Advertising, and Sales Promotion

This document discusses advertising and sales promotion. It defines advertising and its objectives like informing, persuading and reminding consumers. It describes how to set advertising budgets and develop strategies by creating messages, selecting media and considering tone and format. It also profiles major media types and considerations for evaluation and organization. Sales promotion is defined as short-term incentives to encourage purchase and consumer, trade and business tools are outlined. [END SUMMARY]

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Hadi Sarwoko
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74 views

Advertising, and Sales Promotion

This document discusses advertising and sales promotion. It defines advertising and its objectives like informing, persuading and reminding consumers. It describes how to set advertising budgets and develop strategies by creating messages, selecting media and considering tone and format. It also profiles major media types and considerations for evaluation and organization. Sales promotion is defined as short-term incentives to encourage purchase and consumer, trade and business tools are outlined. [END SUMMARY]

Uploaded by

Hadi Sarwoko
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Advertising, and Sales Promotion

Learning Objectives

•After studying this chapter, you should be


able to:
• Define the roles of advertising, and sales promotion, in
the promotion mix
• Describe the major decisions involved in developing an
advertising program
• Explain how sales promotion campaigns are developed
and implemented
Advertising

• Advertising: any paid form of non-personal presentation and


promotion of ideas, goods, or services by an identified sponsor
Possible Advertising Objectives

• Informative advertising: • Persuasive advertising:


• Tell market about new product – Building brand preference
• Suggest new uses – Encourage brand switching
• Inform market of price change – Changing consumer perception of
• Explain how the product works brand attributes
• Describe available services – Persuading consumers to
• Correcting false impressions purchase now
• Reducing consumers’ fears – Persuading consumers to receive
• Building a company image a sales call

• Reminder advertising:
– Reminding consumers of need
– Reminding where to buy product
– Keeping product top-of-mind in
and out of season
Setting the Advertising Budget
• Four methods:
• Affordable method
• Percentage-of-sales method
• Competitive-parity method
• Objective-and-task method
• Other factors:
• Stage in product life cycle
• Market share
• Difficult to measure results may lead to over-spending
Developing Advertising Strategy

• Two major elements:


• Creating advertising messages
• Selecting advertising media
• Message strategy:
• Identify consumer benefits to be used in appeals
• Develop the creative concept (big idea)
• Advertising appeals:
• Meaningful
• Believable
• Distinctive
Developing Advertising Strategy (continued)

Message execution:
• Slice of life
• Lifestyle
• Fantasy
• Mood or image
• Musical
• Personality symbol
• Technical expertise
• Scientific evidence
• Testimonial evidence
Other issues:
–Tone of advertisement
–Format elements
Developing Advertising Strategy (continued)

• Selecting advertising media:


• Decide on reach, frequency, and impact
• Choose major media types
• Select specific media vehicles
• Decide on media timing
• Factors:
• Media habits of target consumers
• Nature of the product
• Types of messages
• Cost
Profiles of Major Media Types
Medium Advantages Disadvantages
Newspapers Flexibility; timeliness; good local market Short life; poor reproduction quality;
coverage; broad acceptability; high small pass-along audience
believability
Television Good mass-market coverage; low cost High absolute costs; high clutter;
per exposure; combines sight, sound, and fleeting exposure; less audience selectivity
motion; appealing to the senses
Direct mail High audience selectivity; flexibility; no ad Relatively high cost per exposure; "junk"
competition within the same medium; mail image
allows personalization
Radio Good local acceptance; high geographic Audio only; fleeting exposure; low attention
and demographic selectivity; low cost (the half-heard medium); fragmented
audiences
Magazines High geographic and demographic Long ad purchase lead time; high cost;
selectivity; credibility and prestige; high- no guarantee of position
quality reproduction; long life and pass-along
Outdoor Flexibility; high repeat exposure; low cost; Little audience selectivity; creative limitations
low message competition; good positional
selectivity
Internet High selectivity; low cost; immediacy; Small, demographically-skewed audience;
interactive capabilities relatively low impact; audience controls
exposure
Other Advertising Considerations

• Evaluation:
• Measuring the communication effects
• Measuring the sales effects
• Organizing for advertising:
• Advertising agency
• International advertising decisions:
• Standardization
• Cultural, economic, and regulatory differences between markets
Sales Promotion
Sales promotion: short-term incentives to encourage purchase or sale of a
product or service
• Consumer packaged goods companies: 74% of marketing expenditures on
sales promotion
Factors contributing to growth of sales promotion:
• Greater focus on increasing sales in the short-term
• Senior management more accepting of sales promotion tactics
• Greater competition
• Less brand differentiation
• Decline in advertising efficiency
• Consumers are more “deal-oriented”
Sales Promotion (continued)

Consumer tools: Trade promotions:


• Samples – Discounts
• Coupons – Allowance
• Cash refunds
– Push money
• Price packs
– Specialty advertising items
• Premiums
• Advertising specialties
• Patronage rewards
• Point-of-purchase displays and Business promotions:
materials – Conventions and trade
• Contests shows
• Sweepstakes – Sales contests
• Games
In Conclusion…

• The learning objectives for this chapter were:


• Define the roles of advertising, and sales promotion, in the
promotion mix
• Describe the major decisions involved in developing an
advertising program
• Explain how sales promotion campaigns are developed and
implemented

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