1. MGT301 Principles of Marketing Lecture-34

2. Summary of Lecture-33

3. Advertising

4. The Five M’s of Advertising

5. Mission Sales goals Adver- tising objectives Message Message generation Message evaluation and selection Message execution Social-responsibility review Money Factors to consider: Stage in PLC Market share and con- sumer base Competition and clutter Advertising frequency Product substituta- bility Measure- ment Communi- cation impact Sales impact Media Reach, frequency, impact Major media types Specific media vehicles Media timing Geographical media allocation

6. Major Advertising Decisions

7. Objectives Setting Budget Decisions Message Decisions Campaign Evaluation Media Decisions

8. Choose the Media

9. Yellow Pages Outdoor Internet Magazine Television Direct Mail Radio Newspaper Major Kinds of Media

10. Today’s Topics Advertising (cont..) Sales Promotion Media Scheduling

11. Advertising (cont..) Sales Promotion

12. Media Scheduling

13. Step 1. Decide on Reach, Frequency, and Impact Step 1. Decide on Reach, Frequency, and Impact Step 2. Choosing Among Major Media Types Step 3. Selecting Specific Media Vehicles Step 4. Deciding on Media Timing

14.  Setting the timing and sequence of a series of advertisements.  Sales patterns (seasonal), repurchase cycles, and competitors’ activities are the most important variables.  Advertisers use the concepts of reach, frequency, and gross rating points to measure the effectiveness of media scheduling plans.

15.  Reach: the number of different people or households exposed to an advertisement at least one during a certain time period.  Frequency: the number of times an individual person is exposed to an advertisement in a certain time.  Gross rating point: reach times frequency.

16. Evaluating Advertising Effectiveness

17. Pretesting Posttesting Sales Effectiveness Evaluations Sales Effectiveness Evaluations Tools: Focus Groups Screening Persuasion Scores Tools: Unaided Recall Tests Aided Recall Tests Inquiry Evaluations Tools: Monitor Sales Brand-to-Sales Effects

18. Communication Effects Is the Ad Communicating Well? Communication Effects Is the Ad Communicating Well? Advertising Program Evaluation Sales Effects Is the Ad Increasing Sales? Sales Effects Is the Ad Increasing Sales?

19. What to communicate? Get Attention Hold Interest Arouse Desire Obtain Action

20. Ways to Handle Advertising

21. Sales Departments in Small Companies Sales Departments in Small Companies Advertising Agency Advertising Departments in Larger Companies Advertising Departments in Larger Companies

22. Sales Promotion  Sales Promotion is a Mass Communication Technique That Offers Short-Term Incentives to Encourage Purchase or Sales of a Product or Service.  Offers Reasons to Buy Now.

23. Sales Promotion is a Mass Communication Technique That Offers Short-Term Incentives to Encourage Purchase or Sales of a Product or Service. Offers Reasons to Buy Now.

24. Sales Promotion Objectives  Increase short-term sales or help build long- term market share.  Get retailers to: –carry new items and more inventory, –advertise products, –give products more shelf space, and –buy product ahead.

25.  Increase short-term sales or help build long-term market share.  Get retailers to: –carry new items and more inventory, –advertise products, –give products more shelf space, and –buy product ahead.

26. In general, sales promotion should focus on consumer relationship building.

27. Reasons for Increase in Sales Promotion  Growing Power of Retailers  Declining Brand Loyalty  Increased Promotional Sensitivity  Fragmentation of Consumer Markets  Short-Term Focus  Pressure from inside organization  Competition  Clutter

28.  Growing Power of Retailers  Declining Brand Loyalty  Increased Promotional Sensitivity  Fragmentation of Consumer Markets  Short-Term Focus  Pressure from inside organization  Competition  Clutter

29. Major Consumer Sales Promotion Tools

30. Sample Coupons Cash Refunds Price Packs Premiums Advertising Specialties Advertising Specialties Trial amount of a product Savings when purchasing specified products Refund of part of the purchase price Reduced prices marked on the label or package Goods offered free or low cost as an incentive to buy a product Articles imprinted with an advertiser’s name given as gifts

31. Consumer Sales Promotion Techniques Price Deals Advertising Specialties Coupons Sampling Rebates Contests, Games, Sweepstakes Premiums Cross- Promotions

32. Price Deals Bargain! Value! Cents-Off Deals Price-Pack Deals Sale!

33. Major Trade Sales Promotion Tools  Discount  Allowance

35. Objectives of Trade Promotions Increase Reseller Inventory Influence Price Discount Defend Against Competitors Avoid Price Reductions Influence Reseller Promotion Gain/Maintain Distribution

36. Trade Sales Promotion Techniques

37. Trade Allowances Dealer Loaders Trade Contests Point-of-Purchase Displays Trade Shows Training Programs Push Money

38. Developing the Sales Promotion Program

39. Decide on the Size of the Incentive Set Conditions for Participation Evaluate the Program Determine How to Promote and Distribute the Promotion Program Determine How to Promote and Distribute the Promotion Program Determine the Length of the Program

40. Sales Promotion Uses

41.  Introduce new products  Get existing customers to buy more  Attract new customers  Combat competition  Maintain sales in off season  Increase retail inventories  Tie in advertising and personal selling  Enhance personal selling efforts Sales Promotion Uses

42. Limitations of Sales Promotion

43. Cannot Reverse Declining Sales Trend Cannot Overcome Inferior Product May Encourage Competitive Retaliation May Hurt Profit

44. Enough for today...

45. Summary

46. Media Scheduling

47. Step 1. Decide on Reach, Frequency, and Impact Step 1. Decide on Reach, Frequency, and Impact Step 2. Choosing Among Major Media Types Step 3. Selecting Specific Media Vehicles Step 4. Deciding on Media Timing

48. Evaluating Advertising Effectiveness

49. Communication Effects Is the Ad Communicating Well? Communication Effects Is the Ad Communicating Well? Advertising Program Evaluation Sales Effects Is the Ad Increasing Sales? Sales Effects Is the Ad Increasing Sales?

50. Sales Promotion

51. Major Consumer Sales Promotion Tools

52. Major Trade Sales Promotion Tools

53. Developing the Sales Promotion Program

54. Decide on the Size of the Incentive Set Conditions for Participation Evaluate the Program Determine How to Promote and Distribute the Promotion Program Determine How to Promote and Distribute the Promotion Program Determine the Length of the Program

55. Next….

56. Personal Selling Next….

57. MGT301 Principles of Marketing Lecture-34