Presentation on theme: "Advertising, Sales Promotion and Public Relations"— Presentation transcript:
1 Advertising, Sales Promotion and Public Relations PRINCIPLES OF MARKETINGEighth EditionPhilip Kotler and Gary ArmstrongChapter 15Advertising, SalesPromotionand Public Relations
2 What is Advertising?Any form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.U.S. advertisers spend in excess of $175 billion each year.Advertising is used by:Business firms,Nonprofit organizations,Professionals,Social Agencies.
3 Major Decisions in Advertising Objectives SettingMajor Decisions in AdvertisingMajor Decisions in AdvertisingThis CTR corresponds to Figure 15-1 on p. 451 and relates to the material on ppInstructor’s Note: This CTR and Notes provide an overview of advertising decisions. Each decision area is covered in greater detail on subsequent CTRs.Budget DecisionsMajor Decisions in AdvertisingSetting Objectives. Advertising objectives are specific communications tasks to be accomplished for a specific target audience during a specified time period. Advertising objectives can be to inform (build primary demand), persuade (selective demand), or remind (brand loyalty). Advertising objectives are often linked to specific sales objectives.Budget Decisions. Advertising budgets are set for each product consist with the advertising objectives. The details of budget decisions are covered in greater detail on the following CTR.Message Decisions. Advertisers must construct their messages carefully to reach target markets. The details of message decisions are covered in greater detail on a subsequent CTR.Media Decisions. In selecting media for ads, advertisers must consider the several factors to reach consumer when, how, and how often it takes to reach promotional objectives. The details of media decisions are covered in greater detail on a subsequent CTR.Campaign Evaluation. Measures of communication effects and sales effects should be employed.Discussion Note: You might wish to tell students of the controversy involved in measuring campaign effectiveness. Traditionally, advertisers measured effectiveness in terms of recall or recognition. Management wants a behavioral change in purchases. Marketers who successfully merge the two have a bright career ahead of them.Message DecisionsMedia DecisionsCampaign Evaluation
4 Setting Objectives Advertising Objectives Specific Communication Task Accomplished with a Specific Target AudienceDuring a Specific Period of TimeInformative AdvertisingBuild Primary DemandPersuasive AdvertisingBuild Selective DemandComparison AdvertisingCompares One Brand to AnotherReminder AdvertisingKeeps Consumers ThinkingAbout a Product.Tugas : Cari 4 iklan yang memiliki tujuan di atas. Analisislah….!
5 Setting the Advertising Budget This CTR relates to the discussion on ppAdvertising Budget MethodsAffordable, Percentage of Sales, Competitive-Parity and Objective-and-TaskStage in the ProductLife CycleProductDifferentiationBudget DecisionsAdvertising budgets are set for each product consist with the advertising objectives. To implement objectives, budgets must be set in consideration of the products position in terms of:Stage in the Product Life Cycle. New product usually require larger advertising budgets to build awareness and induce product trial. Mature brands may have large dollar amounts in their budgets, but are lower in terms of advertising as a ratio of sales.Market Share. High share products need more advertising as a percent of sales than do low-share brands.Competition and Clutter. Highly competitive markets with high spending rivals require more advertising expenditures than other markets.Advertising Frequency. The greater the frequency needed to reach the target consumer, the higher the advertising budget.Product Differentiation. Brands that closely resemble other brands in a product class (like soft drinks) require high advertising budgets to create product differentiation.AdvertisingFrequencyMarketShareFactors in Setting the Advertising BudgetCompetitionand Clutter
6 Click to add title Advertising Strategy Creating Advertising Messages Plan a Message StrategyGeneral Message to Be Communicated to CustomersClick to add titleAdvertising StrategyCreating Advertising MessagesDevelop a MessageFocus onCustomer BenefitsCreative Concept“Big Idea”Visualization or PhraseCombination of BothAdvertising AppealsMeaningfulBelievableDistinctive
7 Advertising Strategy Message Execution This CTR relates to the discussion on ppTurning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest.TestimonialEvidenceSlice of LifeMessage DecisionsAdvertisers must construct their messages carefully to reach target markets. Three areas are important:TypicalMessageExecutionStylesScientificEvidenceLifestyleMessage Generation. This consists of creative brainstorming to generate several alternative ways of communicating to the target market.Message Evaluation and Selection. This process ranks and then chooses among messages on the how meaningful, distinctive, and believable they are.Message Execution. Execution involves determining how to best communicate with the target market. Typical message styles include:Slice of Life. This shows people using the product in a normal setting.Lifestyle. This matches product use to a targeted lifestyle.Fantasy. This creates an escape or flight of fancy with the product.Mood or image. Here a specific mood or image is suggested as an outcome of or experience similar to product use.Musical. This uses music to promote the product.Personality Symbol. This style creates a character (animated or real) to represent the product.Technical Expertise. This style emphasizes the company’s successful experience as making it better able to offer a superior product.Scientific Evidence. This offers survey or scientific study as proof that the product outperforms others.Testimonial Evidence. This uses a likely or highly believable source to endorse the product.TechnicalExpertiseFantasyPersonalitySymbolMood orImageMusicalTugas : ……….????Tugas : Cari beberapa iklan dan analisislah jenis eksekusi pesannya….!
8 Advertising Strategy Selecting Advertising Media Step 1. Decide on Reach, Frequency,and ImpactAdvertising Strategy Selecting Advertising MediaAdvertising Strategy Selecting Advertising MediaThis CTR relates to the discussion on ppStep 2. Choosing Among Major Media TypesMedia Habits of Target ConsumersNature of the ProductType of MessageCostStep 3. Selecting Specific Media VehiclesSpecific Media Within a Given Type, i.e. Magazines.Must Balance Media Cost Against Media Factors:Audience Quality & Attention, Editorial QualitySelecting Advertising MediaIn selecting media for ads, advertisers must consider the factors that will influence reception of the message. Not all such factors are under the control of the marketer. Of those that are, the following concepts are important:Reach. Reach is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time.Frequency. Frequency is a measure of the how many times the average person in the target market is exposed to the message.Media Impact. Impact refers to the qualitative value of a message exposure through a given medium.Media Vehicles. Vehicles are specific media within a general category. Thus, “The Tonight Show” is a media vehicle on television, whereas a single magazine, The Economist, is a media vehicle in magazine print media.Media Timing. Timing involves the how and when of presenting a campaign. Advertisements should support strategic decisions based upon such factors as peak seasons and demand. Also, the pattern of the ads while shown must be considered:Continuity. This schedules ads evenly within a given period.Pulsing. This schedules ads unevenly within a given period.Step 4. Deciding on Media TimingScheduling of Advertising Over the Course of a YearPattern of Ads: Continuity or Pulsing
9 Advertising Evaluation Advertising Program EvaluationAdvertising EvaluationCommunication EffectsIs the Ad Communicating Well?Sales EffectsIs the Ad Increasing Sales?
10 Advertising Departments Firm that Assists Companies Ways to Handle AdvertisingAdvertising Departmentsin Larger CompaniesSales Departments inSmall CompaniesAdvertising AgencyFirm that Assists Companiesin Planning, Preparing,Implementing andEvaluating TheirAdvertisingPrograms.
11 Advertising Media Costs Advertising Practices Adaptation ofGlobal AdvertisingInternational Advertising DecisionsAdvertising Media Costs& AvailabilityRegulation ofAdvertising Practices
12 What is Sales Promotion? This CTR relates to the material on ppWhat is Sales Promotion?Mass communication technique that offers short-term incentives to encourage purchase or sales of a product or service.Rapid growth in the industry has been achieved because:Product managers are facing more pressure to increase their current sales,Companies face more competition,Advertising efficiency has declined,Consumers have become more deal oriented.Sales PromotionSales Promotion. Sales promotion consists of short term incentives to encourage purchase or sales of a product or service. Areas of sales promotion include:Rapid Growth of Sales Promotion. Key factors contributing to the use of sales promotion include:Top management acceptance of sales promotion as an effective element in the marketing mix.Increased competition and decreased differentiation.Decreased advertising effectiveness has also put pressure on companies to shift more emphasis to sales promotion.Consumers have become more deal oriented and retailers are demanding more deals from manufacturers.
13 Consumer - Promotion Tools This CTR relates to the discussion on ppShort-Term Incentives to Encourage Purchase or Sales of a Product or Service.Consumer-Promotion ToolsConsumer-Promotion ObjectivesConsumer Promotion ToolsA number of tools are used by marketers to reach consumers directly, including:Samples. Samples offer consumers a trial amount of a product.Coupons. Coupons give buyers a savings on specified products.Rebates. Rebates consist of cash back after the purchase.Price Packs. Price packs offer reductions in price for special combinations of products or quantities of the product.Premiums. Premiums are goods offered free or at low cost as an incentive to buy the product.Advertising Specialties. Advertising specialties are useful items imprinted with the advertiser’s name or logo.Patronage Rewards. Patronage rewards are cash or prizes offered for the regular use of the product or service.Point-of-Purchase. Point-of-purchase promotions include displays and demonstrations at the retail level.Contests, Sweepstakes, and Games. These give consumers a chance to win something and draw attention to the product.SamplesAdvertisingSpecialtiesEntice Consumers toTry a New ProductCouponsLure Customers AwayFrom Competitors’ ProductsPatronage RewardsPatronage RewardsCash RefundsGet Consumers to “Load Up’on a Mature ProductContestsPrice PacksSweepstakesHold & Reward LoyalCustomersPremiumsGamesConsumer RelationshipBuildingPoint-of-PurchaseDisplays
14 Trade - Promotion Tools This CTR relates to the discussion on ppShort-Term Incentives That are Directed to Retailers and Wholesalers.Trade-Promotion ToolsTrade-Promotion ObjectivesPrice-OffsPremiumsPersuade Retailers orWholesalers to Carry a BrandTrade Promotion Tools. A discount is a reduction in the price from the manufacturer to a member of the channel of distribution. An allowance is an authorized reduction in the amount paid to the manufacturer in return for performing one or more marketing channel functions.AllowancesGive a Brand Shelf SpacePatronage RewardsDisplaysBuy-BackGuaranteesPromote a Brand inAdvertisingDiscountsPush MoneyPush a Brand to ConsumersFree GoodsSpecialtyAdvertisingItemsContests
15 Business - Promotion Tools This CTR relates to the discussion on ppShort-Term Incentives That are Directed to Industrial Customers.Business-Promotion ToolsBusiness-Promotion ObjectivesGenerate Business LeadsConventionsBusiness Promotion Tools. Conventions and trade shows provide a stage for showing products and meeting the salesforce. Sales contests provide the salesforce with incentives for performance over a given period.Stimulate PurchasesTrade ShowsReward CustomersSales ContestsMotivate Salespeople
16 Developing the Sales Promotion Program This CTR relates to the material on p. 468.Developing the Sales Promotion ProgramDecide on the Size of the IncentiveSet Conditions for ParticipationEvaluate the ProgramDetermine How to Promote andDistribute the Promotion ProgramDetermine the Length of the ProgramDeveloping the ProgramIncentives. All sales promotions must recognize that a certain minimum level of incentive is needed to have any effect.Conditions of Participation. These may be both legally mandated in some areas and/or linked to specific goals. Sweepstakes may restrict some participants or be linked to other behaviors such as prior purchases or bulk buys. How to inform participants must also be considered, for example, direct mailing of coupons or placing them on the package.Length of Time. Time considerations must be weighed between too short to have much effect or penetration of the market versus too long so as to lose any sense of immediacy to "act now."Budget . Sales promotion budgeting suffers from the same organizational problems faced by marketers in other areas. Percentage of sales approaches do not see promotion as a cause of sales. Objective-based budgeting often fails to consider cost effectiveness.Pretesting and ImplementationSales promotion tools benefit from pretesting their effectiveness prior to implementation. Unfortunately, pretesting is seldom done. You may challenge students to come up with suggestions about how to do a "mini pretest" that managers might use within the time constraints of sales promotion deadlines. Implementation requires coordinating effective lead time and sell off time resources to manage the sales promotion effectively.Evaluating the ResultsA key part of evaluation is determining whether the promotion affected the total demand for the product or only its timing. Consumers may be surveyed or experiments conducted to ascertain the long-term impact of the promotion.
17 What is Public Relations? This CTR relates to the material on ppBuilding good relations with the company’s various publics by obtaining favorable publicity, building up a good “corporate image” and handling or heading off unfavorable rumors, stories and events.Major functions are:Press Relations or Press AgentryProduct PublicityPublic AffairsLobbyingInvestor RelationsDevelopmentPress Relations is an on-going process of establishing and maintaining good relations with the news media reporters and editors to help place newsworthy information about company products or objectives in their vehicles.Product Publicity. Product Publicity seeks news coverage of specific products usually in conjunction with other promotional efforts.Public Affairs/ Investor Relations. Public Affairs and Investor Relations involves creating and managing internal and external communications promoting understanding the of company and its objectives. Counseling of management on public issues may be included in corporate communications functions in some companies.Lobbying. Lobbying involves dealing with legislators and government administrators.Discussion Note: Lobbying has justly earned a bad reputation for the “special interest” favors awarded some companies. But it is also true that a great deal of lobbying is ethical and fair -- a point not typically found in the popular press. Also, federalism is designed precisely so that “special interests” can be taken into consideration. Not all “special interests” are bad for society as a whole.
18 Major Public Relations Tools This CTR relates to the material on ppWeb SitePublicServiceActivitiesNewsKey tools of Public Relations include:News and Speeches. Finding or creating favorable news stories about the company or products. Giving talks at trade association meetings or sales meetings.Special Events. Special Events consist of public service activities sponsored and controlled by public relations in-house.Written and Audiovisual Materials. Materials include written information for reporters, and audio-visual information such as slide, sound programs, and videos on corporate identity. Corporate spokespersons also make public speeches to promote the views important to the company.Public Service Activities. Public Service Activities include contributions of time and money for community projects and programs.Discussion Note: Many companies donate land and equipment to towns and cities for parks and recreational areas as part of PR.CorporateIdentityMaterialsSpeechesAudiovisualMaterialsSpecialEventsWrittenMaterials
19 Major Public Relations Decisions Click to add titleSetting Public Relations ObjectivesChoosing the Public Relations Messagesand VehiclesImplementing the Public Relations PlanEvaluating Public Relations ResultsMajor Public Relations DecisionsMajor Public Relations DecisionsThis CTR relates to the discussion on ppPublic Relations DecisionsObjectives. Objectives are the first order of public relations business. PR must determine what it wants to accomplish and how these objectives support the overall promotion objectives.Messages. Messages require that the PR department creates the "story" it wants to tell about the company and finds the appropriate media for transmitting it.Teaching Tip: Students may wonder if editors will be angry that PR people are trying to manipulate them. If PR is open and honest, editors are willing to consider the merits of the message. Of course the company has its point of view -- but that’ legitimate and PR people can provide sources of information that save reporters time and are unavailable elsewhere.Implementation. Implementation relies as much on the personal working relationships the PR people have with media editors as the content of the stories themselves. Good relations are built on trust over time thus implementation is but one step in the on-going process of media relations.Teaching Tip: In short, PR people have to do something for editors if they expect editors to do something for them.Evaluation. Evaluation of PR efforts is difficult because so much PR is designed to support other promotion efforts. Traditional evaluation includes clippings books counting the number of media exposures.