12/13/20151 CHAPTER 8 INTEGRATED MARKETING COMMUNICATIONS: ADVERTISING AND SALES PROMOTION

12/13/20152 Promotion Strategy u Make aware of a product u Inform benefits u Convince buyers u Entice buyers to purchase product u ADVERTISING COST PER TOUSAND u REACH AND FREQUENCY

12/13/20153 Promotion Mix u Advertising u efficient, but expensive u Personnel Selling u persuasive, but cost per contact is high u Sales Promotion u stimulate demlife, but it has short impact u Publicity u low cost, but it may be uncontrollable

12/13/20154 Advertising: Planning and Strategy u Printed and electronic media u Reach large number of people to inform, to persuade or to remind u Non-personal representation to gain a competitive advantage in the marketplace u May be used to educate consumer

12/13/20155 Objectives of Advertising u Generalist viewpoint u concern with sales, profits, return on investment u Specialist viewpoint u concern with measuring the effects of advertising on special advertising campaign u Marketing management approach u understands the other views; however, views advertising as a competitive weapon

12/13/20156 Creating The Message u Awareness: information u Aid comprehension and Interest:getting readers’ attention u Induce conviction:Understanding benefits and need/want satisfaction u Develop desire: Attitudes-trial u Produce Action: Purchase

12/13/20157 Advertising Decision u Size of the advertising budget u Allocating the budget u percent of sales u per-unit expenditures u all you can effort u competitive parity u research approach u cost and advertising effect comparison u the task approach

12/13/20158 Media Decision and Effective Promotion Management choice and strategies are used for effective media choice. Successful ad campaigns have two tasks: u Say the right things in the ads u Use appropriate media in the right amount, at the right time to reach target market

12/13/20159 Media Decision and Effective Promotion (cont.) u Message strategy u it is a communication process and it should depends upon consumers’ behaviors and motivation l Source l Message l Encoding l Media sources Noise l Receiver l Decoding

12/13/ Media Mix u The nature of the product: l Complex products can not be advertised on billboards. u Nature and size of target market. u Available advertising budget. u Availability of media. u Types of media: l Radio, TV, Magazine, Newspaper, billboard

12/13/ Media Mix(cont.) u Newspaper u flexible and timely, but short life u broad acceptance and use, but small audience u Radio u Audience selectivity, but audio presentation only u low cost, but less attention than the TV

12/13/ Media Mix(cont.) u Television u combination of sight, sound and motion, but expensive u Mass audience coverage, but it has short life. Magazines u high geographic and demographic selectivity, bur some waste circulation u Quality of readership, but long closing period u pass-along readership, but no guarantee of position u Direct Mail u audience selectivity, but high cost u personalized, but consumers spent little attention u Outdoor u flexible and cheaper, but no selectivity of audience

12/13/ The Message u Product Feature-intangible/tangible u Psychological Features-fear,love, humor u Association-celebrities u Message consistency u Opinion leaders-carry the message u Word-of-mouth communication u Message selection

12/13/ Sales Promotion u Push/pull strategy u Trade show promotion u POP displays u Contests u Trade shows u Sales meetings u Advertising allowances

12/13/ Consumer Promotions u Sampling u Price deals u Bonus packs u Rebates and refunds u Sweepstakes and contests u Premiums u Coupons

12/13/ Sales Promotions (cont.) u What can sales promotions do? u Generate long-term buyer commitment u Change sales trend u Convince buyers to buy unacceptable products u make-up for a lack of advertising and sales support