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ADVERTISING AND

SALES PROMOTION
Group Members :
Nur syazwani bt Mahmad Sukor (818360)
Noor Alyzamleana bt Aladin (820383)
Nurul Huda bt Idzhar
(820144)
Nor Aini bt Hamzah
(820148)
Asma bt Suardi
()

CHAP:18
MANAGING MASS COMMUNICATIONS:

ADVERTISING,
SALES PROMOTIONS,
EVENTS, AND
PUBLIC RELATIONS

WHATS IS ADVERTISING?

Advertising is called direct communication


with customer.
Form of marketing communication used to
promote or sell something, usually a
business's product or service.
The communication relayed from companies
to persuade an audience to purchase their
products

18.1 DEVELOPING AND MANAGING


AN ADVERTISING PROGRAM
Should start by Identifying the target market
and buyer motives
5 major decisions
-MISSION What are the ADS objectives
-MONEY- how much can be spent
-MESSAGE- What message should be send
-MEDIA- What media should be used
-MEASUREMENT- How should the result be
evaluated

18.1.1 SETTING THE


OBJECTIVES
An advertising objectives is a specific
communication task and achievement level
to accomplish with a specific period of time.
An objective could be:
1. Informative advertising
2. Persuasive advertising
3. Reminder advertising
4. Reinforcement advertising

1. INFORMATIVE ADVERTISING

To create brand awareness and knowledge of new


product/ new features of existing product.
used when launching a new product, or for an
updated or relaunched product.
The objective is to develop initial demand for a
good, service, organization, or cause.

Exp: New features of thin,vivid and slim , Samsung


Galaxy SII with the creative image shown in print ads
to picture the model.
https://www.youtube.com/watch?v=xz6YcNlojO0

2. PERSUASIVE ADVERTISING
Type

of product promotion that attempts to


influence a consumer in favor of a purchasing
good or service

https://www.youtube.com/watch?v=NXom
4VRmBAA

Exp: A multinational pharmaceutical


company Dr Reddys using print ads by
imaging the heart in an ice-cream shape
to warn diabetes people regularly visit
the doctor to prevent heart disease.

3. REMINDER ADVERTISING

To keep a product in the mind of the


consumer once the product is already
familiar
Aims to stimulate repeat purchase of product
and services.
to remind consumers of the benefits of a
product or service, or of their current need
for those benefits.
Exp:Coca-Cola is a well-established brand
that uses reminder advertising to maintain
its position in the market

4. REINFORCEMENT
ADVERTISING

Aims to convince currents purchasers that


they made the right choice
Exp: Habib jewels celebrate their existing
customer with new collection in eid ul fitr by
picturing the happiness moment wearing
their product during the eid.

18.1.2 DECIDING ON THE


ADVERTISING BUDGET
How 5 specific factors to consider when
setting the advertising budget.
1. Stage in the product life cycle
2. Market share and consumer base
3. Competition and clutter
4. Advertising frequency
5. Product substitutability

18.1.3 DEVELOPING THE


ADVERTISING CAMPAIGN
Effective message strategy/positioning an
ads begins with identifying customer benefits
that can be used as advertising appeals.
To develop massage strategy advertising
appeals should have 3 steps:
1.Generation and evaluation
2.Creative development and execution
3.Social responsibility review

1.MESSAGE GENERATION AND


EVALUATION

Advertiser seeking the big idea that connect with


customers rationally and emotionally to
differentiate with competitors.
Exp: Mercedes Benz decided to launch ori campaign
of limited edition of SLK Passion Model in China
featuring actress Zhang Ziyi to position Mercedes as
a younger,sexier brand.
https://www.youtube.com/watch?v=IUAYfs67t1s

2.CREATIVE DEVELOPMENT AND


EXECUTION
Any message can be presented in different
execution styles.
Television Ads: Most powerful advertising
medium. Its can improve brand equity and
affect sales and profits.

DECIDING ON MEDIA AND


MEASURING EFFECTIVENESS
The steps:
1)
2)
3)
4)
5)

Deciding on desired reach, frequency and


impact
Choosing among major media types
Selecting specific media vehicle
Deciding on media timing and geographical
media allocation
Evaluate advertising effectiveness

DECIDING ON MEDIA AND


MEASURING EFFECTIVENESS

Media selection is finding the most costeffective media to deliver the desired number
and type of exposures to the target audience.

What do we mean by the desired number of


exposures?

The advertiser is seeking a specified


advertising objective and response from the
target audience

2) CHOOSING AMONG MAJOR


MEDIA TYPES

Alternative Advertising Options

Place Advertising:

Point-of-Purchase - A place where sales are made. On


a macro-level, a point of purchase may be a mall,
market or city.Advertising on shopping carts, shelves
as well as promotion options such as in-store
demonstration or live sampling.

3) SELECTING SPECIFIC MEDIA


VEHICLE

The media planner must search for the most costeffective vehicles within each chosen media type.

These choices are critical given the high cost of


producing and airing television commercials.

In making choices, the planner has to rely on


measurement services that provide estimates of
audience size, composition, and media cost.

Media planner calculates the cost per thousand


persons reached by a vehicle.

DECIDING ON MEDIA AND


MEASURING EFFECTIVENESS
The steps:
1)
2)
3)
4)
5)

Deciding on desired reach, frequency and


impact
Choosing among major media types
Selecting specific media vehicle
Deciding on media timing and geographical
media allocation
Evaluate advertising effectiveness

1) DECIDING ON DESIRED REACH,


FREQUENCY AND IMPACT

Media selection is finding the most costeffective media to deliver the desired number
and type of exposures to the target audience.

What do we mean by the desired number of


exposures?

The advertiser is seeking a specified


advertising objective and response from the
target audience

1) DECIDING ON DESIRED REACH,


FREQUENCY AND IMPACT

For example: The rate of product trial will depend,


among other things, on the level of brand awareness.

Suppose the rate of product trial increases at a


diminishing rate with the level of audience
awareness, shown in Diagram 1(a). If the advertiser
seeks a trial rate of T*, it will be necessary to achieve
a brand awareness level of A*.

The next step is to determine how many exposure of


the message E*, will produce a level of audience
awareness of A*.

1) DECIDING ON DESIRED REACH,


FREQUENCY AND IMPACT

The effect of exposure on audience awareness depends on the


exposures reach, frequency, and impact:

Reach (R)The number of different persons or households exposed


to a particular media schedule at least once during a specified time
period.
Frequency (F)The number of times within the specified time
period that an average person or household is exposed to the
message.
Impact (I)The qualitative value of an exposure through a given
medium (thus a cosmetic ad in Cleo would have a higher impact
than in Fortune magazine)

1) DECIDING ON DESIRED REACH,


FREQUENCY AND IMPACT

Diagram 1(b) shows the relationship between


audience awareness and reach.

Audience awareness will be greater the


higher the exposures reach, frequency and
impact.

1) DECIDING ON DESIRED REACH,


FREQUENCY AND IMPACT

For example: Advertising budget is


$1,000,000 and the cost per thousand
exposure of average quality is $5

Means it can buy 200,000,000 exposure

If frequency is 10, the advertiser can reach


20,000,000 people

1) DECIDING ON DESIRED REACH,


FREQUENCY AND IMPACT

The relationship between reach, frequency, and impact is


captured in the following concepts:

Total number of exposures (E)This is the reach times


multiplied by the average frequency; that is, E = R F. This
measure is referred to as the gross rating points (GRP).

If a given media schedule reaches 80 percent of the homes


with an average exposure frequency of three, the media
schedule is said to have a GRP of 240 (80 3).

Weighted number of exposures (WE)This is the reach


times average frequency times average impact, that is WE
= R F I.

2) CHOOSING AMONG MAJOR


MEDIA TYPES

Media planners make their choice by


considering factors such as:

Target audience media habits


Product characteristics
Message requirements
Cost

2) CHOOSING AMONG MAJOR


MEDIA TYPES

2) CHOOSING AMONG MAJOR


MEDIA TYPES

Alternative Advertising Options

Place Advertising:

Billboards colorful, digitally produced graphic


backlighting, sound, movement and 3D images.

2) CHOOSING AMONG MAJOR


MEDIA TYPES

Alternative Advertising Options

Place Advertising:

Public Spaces Advertising placing


traditional TV and print ads in
unconventional places such as
office, sport arenas, restrooms and
other public area

2) CHOOSING AMONG MAJOR


MEDIA TYPES

Alternative Advertising Options

Place Advertising:

Product Placement Marketers pay fees so that their


products make appearance in movies and on
television. Some firms get product placement at no
cost by supplying their product to the movie company.

2) CHOOSING AMONG MAJOR


MEDIA TYPES

Alternative Advertising Options

Place Advertising:

Point-of-Purchase - A place where sales are made. On


a macro-level, a point of purchase may be a mall,
market or city.Advertising on shopping carts, shelves
as well as promotion options such as in-store
demonstration or live sampling.

3) SELECTING SPECIFIC MEDIA


VEHICLE

The media planner must search for the most costeffective vehicles within each chosen media type.

These choices are critical given the high cost of


producing and airing television commercials.

In making choices, the planner has to rely on


measurement services that provide estimates of
audience size, composition, and media cost.

Media planner calculates the cost per thousand


persons reached by a vehicle.

3) SELECTING SPECIFIC MEDIA


VEHICLE
Several adjustments have to be applied to the
cost-per-thousand measure:
1. The measure should be adjusted for audience
quality.
2. The exposure value should be adjusted for the
audience-attention probability.
3. The exposure value should be adjusted for the
magazines editorial quality (prestige and
believability).
4. The exposure value should be adjusted for the
magazines ad placement policies and extra
services.

DECIDING ON MEDIA TIMING & GEOGRAPHICAL MEDIA


ALLOCATION

The advertiser faces both macroscheduling and


microscheduling problem:
1.

2.

Macroscheduling
Scheduling the advertising in relation to seasons and the
business cycle
Eg: 70% of product sales occur between June and
September. So the firm can vary its advertising
expenditure to follow seasonal pattern, to oppose the
seasonal pattern or to be constant throughout the year.

Microscheduling
Allocating advertising expenditures within a short period
to obtain maximum impact
Eg: The firm decide to buy 30 radio spots in the month
of September.

The left side shows that advertising messages for the month
can be concentrated (burst advertising), dispersed
continuously throughout the month, or dispersed
intermittently.
The top side shows that the advertising messages can be
beamed with a level, rising, falling, or alternating frequency.

DECIDING ON MEDIA TIMING &


GEOGRAPHICAL MEDIA ALLOCATION
The timing pattern should consider three factors.
1.

Buyer turnover - expresses the rate at which new buyers


enter the market;

2.

Purchase frequency - is the number of times during the


period that the average buyer buys the product;

3.

the higher this rate, the more continuous the advertising should be.

the higher the purchase frequency, the more continuous the advertising
should be.

The forgetting rate - is the rate at which the buyer forgets


the brand;

the higher the forgetting rate, the more continuous the advertising should
be.

DECIDING ON MEDIA TIMING &


GEOGRAPHICAL MEDIA ALLOCATION
In launching a new product the advertiser has choose among:

Continuity exposure appear evenly throughout a given


period

Concentration spending all ad dollars in a single period

Flighting advertise for a period, followed by a period


with no advertising, followed by a second period of
advertising activity

Pulsing continuous advertising at low-weight levels


reinforced periodically by waves of heavier activity

5) EVALUATING ADVERTISING
EFFECTIVENESS

Communication-Effect Research (called copy


testing) to determine whether an ad is
communicating effectively

Pretesting before an ad is placed


Posttesting after an ad is placed
1.
2.

Consumer feedback method


Portfolio tests

3.

In-home test
Trailer test
Theater test
On-air test

Laboratory test

5) EVALUATING ADVERTISING
EFFECTIVENESS

Sales-Effect Research

Share of advertising expenditure

Share of voice

Proportion of the company advertising of that product


to all advertising

Share of consumers minds and hearts

Budget of the company on advertising

In consumers psyche which can result to purchase of


your product

Share of market

% of market using the companys product

SALES PROMOTION
- Consists of a collection of incentive tools, mostly short
term, designed to stimulate quicker or greater purchase of
particular products or services by consumers or the trade.
- Can be directed either at the customer, sales staff, or
distribution channel members such as retailers.
- Sales promotions targeted at the consumer are called
consumer sales promotions. Sales promotions targeted at
retailers and wholesale are called trade sales promotions

SALES PROMOTION

WHY IS SALES PROMOTION


USED?
Objective
Free samples stimulate trials
Free management advisory service aims at
long term relation
Incentive type promotion reward royal
customers and increase repurchase rates
To attract brand switchers.
Used in markets of high brand similarity
It enables manufacturers to adjust to short
term variations in supply and demand.

TYPES OF SALES PROMOTIONS


Consumer
Promotion

Trade
Promotion

Business
and sales
force
promotion

CONSUMER PROMOTION TOOLS


The promotion planner should
take into account the type of
market,
sales
promotion
objectives,
competitive
conditions, and each tools cost
effectiveness.

CONSUMER SALES PROMOTION


TOOLS
Sam
ples

.
Point
of
Purch
ase
Promo
tion

Cou
pons

.
Premi
um/
gifts

Reb
ate
Con
test
/
swe
ep
-tak
es

CONSUMER S ALES PROMOTION


TOOLS
Coupon

A certificate that entitles consumer


to an immediate price reduction

Rebate

Premium

A cash refund given for the


purchase of a product during a
specific period
An extra item offered to the
consumer, usually in exchange for
some proof of purchase

CONSUMER S ALES PROMOTION


TOOLS
Contests

Sweepstakes

Sample

Promotions that require skill or


ability to compete for prizes
Promotions that depend on
chance or luck, with free
participation
A promotion program that allows
the consumer the opportunity to
try a product or service for free

Coupon
Rebate

Sample

TRADE SALES PROMOTION

Why trade sales promotion?


To persuade retailer or wholesaler to carry the
brand
To induce retailers to promote the brand by
featuring display and price reductions
To stimulate retailers and sales clerks to push
their products.
To persuade retailer or wholesaler to carry more
inventory

TRADE SALES PROMOTION


TOOLS
Price Off

Allowance
Free
goods

A straight discount off the list price


on each case purchased during a
stated time period
An amount offered in return for the
retailers agreeing to feature the
manufacturers products in some
way
Offers of extra cases of merchandise
to intermediaries who buy a certain
quantity or who feature a certain
flavor or size.

BUSINESS OR SALES FORCE


PROMOTION
Companies spend large amount of money
on business and sales-force promotion
tools to gather business leads, impress
and reward customers, and motivate the
sales force to greater effort. They
develop budgets for tools that remain
fairly constant from year to year.

BUSINESS OR SALES FORCE


PROMOTION TOOLS

TRADE SHOWS & CONVENTIONS


Industry associations organize annual trade
shows and conventions. Business marketers
may spend as much as 35% of their annual
promotion budget on trade shows.

Participating vendors expect several benefits


including:

BENEFITS
Generating new
sales leads

Maintaining
customer contacts

Educating
customers with
publications/videos

Introducing new
products

Selling more to
present customers

Meeting new
customer

SALES CONTESTS
A sales contest aims at inducing the sales
force or dealers to increase their sales
results over a stated period, with
prizes(money, trips, gifts, or points) going to
those who succeed.

SPECIALTY ADVERTISING
It consists of useful, low cost items
bearing the companys name and address
and sometimes an advertising message
that sales people give to prospects and
customers. Common items are ball
point pens, calendars, key chains, flash
lights etc.

RELATIONS

PUBLIC RELATIONS

A public is any group that has an actual or


potential interest in or impact on a
companys ability to achieve its
objectives.
Public Relations (PR) involve a variety of
programs designed to promote or protect
a companys image or its individual
products.

1.
2.
3.

4.

5.

They perform the following five functions:


Press Relations: Presenting news and information
about the organization in the most positive light.
Product Public: Sponsoring efforts to publicize
specific products.
Corporate Communication: Promoting the
understanding of the organization through internal
and external communication.
Lobbying: Dealing with legislators and government
officials to promote or defeat legislation and
regulation.
Counseling: Advising management about public
issues, company positions, and image during good
and bad times.

MARKETING PUBLIC RELATIONS

Many Companies are turning to marketing


public relations (MPR) to support corporate
or product promotion and image makin. MPR
like financial PR and community PR, serves a
special constituency, the marketing
department.

Marketing Public Relations (MPR) plays an important role


in the following tasks:
1. Assisting in the launch of new products.
The Amazing commercial success of toys such as Beanie
Babies and Pokemon owes a great deal to clever publicity.

Assisting in repositioning a mature product.


New York City had extremely bad press in the 1970s until
the I Love New York campaign.
2.

Building interest in a product category.


Companies and trade associations have used MPR to
rebuild interest in declining commodities such as eggs,
milk, and beef, and to expand consumption of such
products as tea and orange juice.
3.

Influencing specific target groups.


McDonalds sponsors dictionaries, and encourages
tree planting and recycling in Chinese
communities to build goodwill.
4.

Defending product that have encountered


public problems.
PR professionals must be adept at managing
crises, such as DBSs inadvertent destruction of
safe deposit boxes at its Hong Kong banking
branch, and Ajinomotos pork contamination in its
Indonesian factory.
5.

Building the corporate image in a way that


reflects favorably on its product.
Former CEO Steve Jobs heavily anticipated
Macworld keynote speeches have helped to
create an innovative, iconoclastic image for
Apple Corporation.
6.