Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Chapter 8

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Effective Advertising and Sales Promotion 8.1Developing an Effective Advertising Campaign 8.2Marketing Research for Advertising 8.3Developing an Effective Sales Promotion Strategy 2 CHAPTER 8

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. 8.1Developing an Effective Advertising Campaign Goals Explain the need for creativity in advertising. Describe the desired results of an advertising campaign. Terms creative brief - A description of what the advertising campaign is to accomplish Synergy - the sum of the results produced by a team Brainstorming - an organized approach of generating a large number of ideas in a group setting 3 CHAPTER 8

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. The Need for Creativity in Advertising Elements of creativity in advertising Make a connection with the target audience - draws attention to the products and services Have an element of unexpectedness - unusual techniques to make a lasting impression Use mischief in the form of tricks, pranks, and playfully naughty behavior to keep the audience interested - feature troublemakers and rebels 4 CHAPTER 8

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. The Need for Creativity in Advertising Cont. Provide concrete images - uses tangible words and visual demonstrations to be memorable Use storytelling - use stories to emphasize important brand features Build momentum - measured by the buss generated from an ad campaign Synergy from teams - successful ad campaigns are created by a team of people who have different areas of expertise CHAPTER 8 5

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Check Point: Why is creativity an important element in advertising? CHAPTER 8 6

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Determine the Desired Results of an Advertising Campaign Build brand awareness - initial objective for new brands of products and services. If consumers are not aware of a brand, few sales will be made Communicate product benefits - advertisers must supply information that explains the benefits obtained from making purchases 7 CHAPTER 8

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Determine the Desired Results of an Advertising Campaign Cont. Encourage trial purchases - companies must encourage consumers to try a brand for the first time Create, change, or reinforce consumers’ attitudes about a brand - after consumers try a brand, they develop beliefs and attitudes about it Attain brand loyalty - when customers develop a strong brand preference, they become loyal customers CHAPTER 8 8

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Check Point: What are some of the desired results of an advertising campaign? CHAPTER 8 9

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. 8.2Marketing Research for Advertising Goals Explain the marketing research process. Describe the benefits and limitations of marketing research. Terms Sample - a smaller group that is representative of the target market primary market research - collecting data for the first time to use in solving a specific problem Survey - a list of questions used to obtain facts, opinions, and attitudes 10 CHAPTER 8

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. focus group - a list of questions used to obtain facts, opinions, and attitudes secondary market research - collecting and analyzing data previously gathered for other purposes marketing-information system - collecting, storing, processing and reporting information that is needed to make marketing decisions CHAPTER 8 11

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. What Is Marketing Research? Marketing research is the process of planning, collecting, and analyzing the data needed to solve marketing problems. CHAPTER 8 12

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Steps in Marketing Research CHAPTER 8 13 Identify and define the problem Develop the research design Determine the method for collecting data Collect the data Analyze the data Report and present the data

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Primary Market Research Types of primary market research – surveys and focus groups Advertising and primary market research – used to measure the effectiveness of an advertising message CHAPTER 8 14

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Secondary Market Research Advantages and disadvantages Advantages – easy and convenient to access and less expensive Disadvantages – can be highly controlled by the marketer, may not be timely, and can be quickly outdated Secondary market research sources Internal company reports Trade and professional associations Nonprofit organizations Government reports Business websites News and media sources CHAPTER 8 15

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Marketing-Information Systems Organized method of collecting, storing, processing, and reporting information that is needed to make marketing decisions CHAPTER 8 16

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Check Point: What are the steps in the marketing research process? CHAPTER 8 17

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Benefits of Marketing Research Reduces the risk of doing business Helps a company identify threats and opportunities Guides a company’s communication with consumers Helps companies track their progress CHAPTER 8 18

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Check Point: What are some of the benefits and limitations of marketing research? CHAPTER 8 19

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Limitations of Marketing Research Marketing research is not an easy task Gathering and processing data can be very expensive and time consuming The value of the research findings depends on the accuracy of the data collected Marketing research does not guarantee success Marketing research data must be protected CHAPTER 8 20

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. 8.3Developing an Effective Sales Promotion Strategy Goals Identify consumer sales promotions. Identify trade sales promotions. Terms Coupon - a certificate that entitles the buyer to a price reduction on a product or service Rebate - a refund of money offered to consumers who purchase a specific product Premium - an item offered to consumers for free or at a reduced price with the purchase of another item 21 CHAPTER 8

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Sampling - providing consumers with the opportunity to use a product on a risk-free trial basis push money - a bonus given by manufacturers to salespeople for selling a specific brand deal loader - a premium given by a manufacturer to a retailer for ordering a certain quantity of a product trade allowance - a reward offered by manufacturers to retailers in exchange for supporting the manufacturer’s brand by performing various marketing activities, also called trade deal CHAPTER 8 22

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Consumer Sales Promotion Price deals - used frequently to encourage trial use of a new product, recruit new customers for a mature product, or convince existing customers to purchase larger quantities Loyalty marketing programs - reward customers for making repeat purchases Contests and sweepstakes - gain publicity and create interest in a product or brand Point-of-purchase displays - promote a particular brand and encourage impulse buying 23 CHAPTER 8

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Trade Sales Promotions Deal loader - premium given for ordering a certain quantity of a product Buying loader - gift for making a specific order size Display loader - gives contents of a display to retailer after the promotional campaign 24 CHAPTER 8

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Trade Sales Promotions Cont. Trade allowance - reward offered in exchange for supporting the manufacturer’s brand through marketing activities Buying allowance - can receive price deduction off of a product for large purchases Advertising allowance - given for featuring a product Slotting allowances - fees paid to retailers for access to certain slots or shelf space CHAPTER 8 25

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Check Point (X2): Describe one type of consumer sales promotion. Describe one type of trade sales promotion. CHAPTER 8 26