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Objectives Developing & Managing an Advertising Program Deciding on Media & Measuring Effectiveness Sales Promotion Public Relations ©2000 Prentice Hall Major Decisions in Advertising Objectives Setting Budget Decisions Message Decisions Media Decisions Campaign Evaluation ©2000 Prentice Hall Advertising Objectives Specific Communication Task Accomplished with a Specific Target Audience During a Specific Period of Time Informative Advertising Persuasive Advertising Build Primary Demand Build Selective Demand Comparison Advertising Reminder Advertising Compares One Brand to Another Keeps Consumers Thinking About a Product. ©2000 Prentice Hall The Five Ms of Advertising Message Mission Sales goals Advertising objectives Money Message generation Factors to consider: Message evaluation and selection Stage in PLC Message execution Market share and consumer base Competition and clutter Advertising frequency Product substitutability ©2000 Prentice Hall Social-responsibility review Media Reach, frequency, impact Major media types Specific media vehicles Media timing Geographical media allocation Measurement Communication impact Sales impact Advertising Budget Factors Market Share & Consumer Base Stage in the Product Life Cycle Product Substitutability ©2000 Prentice Hall Competition & Clutter Advertising Frequency Profiles of Major Media Types Newspapers Advantages: Flexibility, timeliness; good local market coverage; broad acceptance, high believability Limitations: Short life; poor reproduction quality; small pass-along audience Television Advantages: Combines sight, sound, motion; high attention; high reach; appealing to senses Limitations: High absolute costs; high clutter; fleeting exposure; less audience selectivity Direct Mail Advantages: Audience selectivity; flexibility, no ad competition within same medium; allows personalization Limitations: Relative high cost; “junk mail” image ©2000 Prentice Hall Profiles of Major Media Types Radio Advantages: Mass use; high geographic and demographic selectivity; low cost Limitations: Audio only; fleeting exposure; lower attention; nonstandardized rates; fragmented audiences Magazines Advantages: High geographic and demographic selectivity; credibility and prestige; high-quality reproduction; long life; good pass-along readership Limitations: Long ad purchase lead time; waste circulation; no guarantee of position Outdoor Advantages: Flexibility; high repeat exposure; low cost; low message competition Limitations: Little audience selectivity; creative limitations ©2000 Prentice Hall Classification of Advertising Timing Patterns Concentrated Level (1) Rising (2) Falling Alternating (3) (4) (5) (6) (7) (8) (9) (9) (10) (11) (12) Continuous Intermittent ©2000 Prentice Hall Month Number of messages per month Simplified Rating Sheet for Ads (Attention) How well does the ad catch the reader’s attention? (Read-through) How well does the ad lead the reader to read further? (Cognitive) How clear is the central message or benefit? (Affective) How effective is the particular appeal? (Behavior) How well does the ad suggest follow-through action? 0 20 Poor ad ©2000 Prentice Hall 40 60 Mediocre Average ad ad 80 Good ad 100 Great ad __20 __20 __20 __20 __20 __Total Advertising Strategy Message Execution Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest. Testimonial Slice of Life Evidence Scientific Evidence Technical Expertise Personality Symbol Lifestyle Typical Message Execution Styles Musical ©2000 Prentice Hall Fantasy Mood or Image Advertising Evaluation Advertising Program Evaluation Communication Effects Sales Effects Is the Ad Communicating Well? Is the Ad Increasing Sales? ©2000 Prentice Hall Why the increase in Sales Promotion? Growing retailer power Declining brand loyalty Increased promotional sensitivity Brand proliferation Fragmentation of consumer market Short-term focus Increased managerial accountability Competition Clutter ©2000 Prentice Hall %t of total - 3 yr.MA Long-Term Promotional Allocation 60 50 40 30 20 10 0 Trade Promo Media Adv Cons. Promo 1986 ©2000 Prentice Hall 88 90 92 94 1996 Year Cox Direct 19th Annual Survey of Promotional Practices Channels of Sales Promotions MANUFACTURER Push Trade Promotions RETAILER Push Retail Promotions CONSUMER ©2000 Prentice Hall Consumer Promotions Pull Consumer Promotion Consumer-Promotion Objectives Entice Consumers to Try a New Product Lure Customers Away From Competitors’ Products Get Consumers to “Load Up’ on a Mature Product Hold & Reward Loyal Customers Consumer Relationship Building Consumer-Promotion Tools Samples Coupons Cash Refunds Advertising Specialties Patronage Patronage Rewards Rewards Contests Price Packs Premiums Sweepstakes Games Point-of-Purchase Displays ©2000 Prentice Hall “Deal Proneness,” Liechtenstein, Burton, & Netemeyer, Journal of Retailing, Summer 1997 Examination of “deal proneness” among consumers in a supermarket setting Surveys & Grocery Receipts used Eight types of deals: Cent-off, One-free, Gift, Display, Rebate, Contest, Sale, & Coupon ©2000 Prentice Hall “Deal Proneness,” Liechtenstein, Burton, & Netemeyer Cluster analysis yielded two interpretable results: 49% are “deal prone,” 51% not 24% High “Deal prone,” 50% intermediate, 26% deal insensitive “Deal-proneness” a generalized construct - (crosses type of promotion) Younger & Less educated more likely to be deal prone ©2000 Prentice Hall Trade Promotions Trade-Promotion Objectives Trade-Promotion Tools Persuade Retailers or Wholesalers to Carry a Brand Price-Offs Premiums Give a Brand Shelf Space Allowances Patronage Displays Rewards Promote a Brand in Advertising Buy-Back Guarantees Discounts Push a Brand to Consumers Free Goods Contests ©2000 Prentice Hall Push Money Specialty Advertising Items Business-to-Business Promotion Business-Promotion Objectives Generate Business Leads Stimulate Purchases Reward Customers Motivate Salespeople ©2000 Prentice Hall Business-Promotion Tools Conventions Trade Shows Sales Contests Major Public Relations Tools Web Site Public Service Activities News Speeches Corporate Identity Materials Audiovisual Materials ©2000 Prentice Hall Written Materials Special Events Taco Bell has purchased the Liberty Bell! ©2000 Prentice Hall Review Developing & Managing an Advertising Program Deciding on Media & Measuring Effectiveness Sales Promotion Public Relations ©2000 Prentice Hall