2. ©2000 Prentice Hall ObjectivesObjectives ä Developing & Managing an Advertising Program ä Deciding on Media & Measuring Effectiveness ä Sales Promotion ä Public Relations

3. ©2000 Prentice Hall Major Decisions in Advertising Objectives Setting Budget Decisions Message Decisions Media Decisions Campaign Evaluation

4. ©2000 Prentice Hall Informative Advertising Build Primary Demand Informative Advertising Build Primary Demand Persuasive Advertising Build Selective Demand Persuasive Advertising Build Selective Demand Comparison Advertising Compares One Brand to Another Comparison Advertising Compares One Brand to Another Reminder Advertising Keeps Consumers Thinking About a Product. Reminder Advertising Keeps Consumers Thinking About a Product. Advertising Objectives ä Specific Communication Task ä Accomplished with a Specific Target Audience ä During a Specific Period of Time

5. ©2000 Prentice Hall The Five Ms of Advertising The Five Ms of Advertising Mission Sales goals Adver- tising objectives Money Factors to consider: Stage in PLC Market share and con- sumer base Competition and clutter Advertising frequency Product substituta- bility Message Message generation Message evaluation and selection Message execution Social-responsibility review Media Reach, frequency, impact Major media types Specific media vehicles Media timing Geographical media allocation Measure- ment Communi- cation impact Sales impact

6. ©2000 Prentice Hall Advertising Budget Factors Stage in the Product Life Cycle Market Share & Consumer Base Competition & Clutter Advertising Frequency Product Substitutability

7. ©2000 Prentice Hall 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 compe- tition within same medium; allows personalization Limitations:Relative high cost; “junk mail” image

8. ©2000 Prentice Hall 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 Profiles of Major Media Types

9. ©2000 Prentice Hall Classification of Advertising Timing Patterns Month Number of messages per month Concen- trated (1)(2)(3) LevelRisingFallingAlternating (4) Continuous (8)(7)(6)(5) (9) Inter- mittent (10)(11)(12) (9)

10. ©2000 Prentice Hall Simplified Rating Sheet for Ads PooradMediocreadAverageadGoodadGreatad 0 20 40 60 80 100 __Total (Attention) How well does the ad catch the reader’s attention? __20 (Read-through) How well does the ad lead the reader to read further? __20 (Cognitive) How clear is the central message or benefit? __20 (Affective) How effective is the particular appeal? __20 (Behavior) How well does the ad suggest follow-through action? __20

11. ©2000 Prentice Hall Advertising Strategy Message Execution Typical Message Execution Styles Typical Message Execution Styles Testimonial Evidence Testimonial Evidence Slice of Life Scientific Evidence Scientific Evidence Lifestyle Technical Expertise Technical Expertise Fantasy Musical Personality Symbol Personality Symbol Mood or Image Mood or Image Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest.

12. ©2000 Prentice Hall Advertising Program Evaluation Communication Effects Is the Ad Communicating Well? Communication Effects Is the Ad Communicating Well? Advertising Evaluation Sales Effects Is the Ad Increasing Sales? Sales Effects Is the Ad Increasing Sales?

13. ©2000 Prentice Hall Why the increase in Sales Promotion? ä Growing retailer power ä Declining brand loyalty ä Increased promotional sensitivity ä Brand proliferation ä Fragmentation of consumer market ä Short-term focus ä Increased managerial accountability ä Competition ä Clutter

14. ©2000 Prentice Hall Long-Term Promotional Allocation 0 10 20 30 40 50 60 1986889092941996 Year %t of total - 3 yr.MA Trade Promo Media Adv Cons. Promo Cox Direct 19th Annual Survey of Promotional Practices

15. ©2000 Prentice Hall Channels of Sales Promotions MANUFACTURER RETAILER TradePromotions CONSUMER ConsumerPromotions Push Pull RetailPromotions

16. ©2000 Prentice Hall Consumer Promotion Consumer-Promotion Objectives Consumer-Promotion Tools Point-of-Purchase Displays Point-of-Purchase Displays Premiums Price Packs Cash Refunds Coupons Samples Patronage Rewards Games Sweepstakes Contests Advertising Specialties Advertising Specialties Patronage Rewards Entice Consumers to Try a New Product Entice Consumers to Try a New Product Lure Customers Away From Competitors’ Products Lure Customers Away From Competitors’ Products Get Consumers to “Load Up’ on a Mature Product Get Consumers to “Load Up’ on a Mature Product Hold & Reward Loyal Customers Hold & Reward Loyal Customers Consumer Relationship Building Consumer Relationship Building

17. ©2000 Prentice Hall “Deal Proneness,” Liechtenstein, Burton, & Netemeyer, Journal of Retailing, Summer 1997 ä Examination of “deal proneness” among consumers in a supermarket setting ä Surveys & Grocery Receipts used ä Eight types of deals: ä Cent-off, One-free, Gift, Display, Rebate, Contest, Sale, & Coupon

18. ©2000 Prentice Hall “Deal Proneness,” Liechtenstein, Burton, & Netemeyer Cluster analysis yielded two interpretable results: X 49% are “deal prone,” 51% not X 24% High “Deal prone,” 50% intermediate, 26% deal insensitive ä “Deal-proneness” a generalized construct - (crosses type of promotion) ä Younger & Less educated more likely to be deal prone

19. ©2000 Prentice Hall Trade-Promotion Objectives Trade-Promotion Tools Specialty Advertising Items Specialty Advertising Items Contests Free Goods Buy-Back Guarantees Buy-Back Guarantees Allowances Price-Offs Patronage Rewards Push Money Discounts Premiums Displays Persuade Retailers or Wholesalers to Carry a Brand Persuade Retailers or Wholesalers to Carry a Brand Give a Brand Shelf Space Promote a Brand in Advertising Promote a Brand in Advertising Push a Brand to Consumers Trade Promotions

20. ©2000 Prentice Hall Business-Promotion Objectives Business-Promotion Tools Generate Business Leads Stimulate Purchases Reward Customers Motivate Salespeople Conventions Trade Shows Sales Contests Business-to-Business Promotion

21. ©2000 Prentice Hall Special Events Special Events Written Materials Written Materials Corporate Identity Materials Corporate Identity Materials Speeches News Audiovisual Materials Audiovisual Materials Major Public Relations Tools Public Service Activities Public Service Activities Web Site

22. ©2000 Prentice Hall Taco Bell has purchased the Liberty Bell!

23. ©2000 Prentice Hall ReviewReview ä Developing & Managing an Advertising Program ä Deciding on Media & Measuring Effectiveness ä Sales Promotion ä Public Relations