Advertising &

Sales
Promotion

Otterbein
College
Winter 2000
04/10/10 1
 Objectives
• Developing & Managing an Advertising Program

• Deciding on Media & Measuring Effectiveness

• Sales Promotion

• Public Relations

04/10/10 2
 Major Decisions in
Advertising
Objectives
Objectives Setting
Setting

Budget
Budget Decisions
Decisions

Message
Message Decisions
Decisions Media
Media Decisions
Decisions

Campaign
Campaign Evaluation
Evaluation
04/10/10 3
 Advertising Objectives
• Specific Communication Task
• Accomplished with a Specific Target Audience
• During a Specific Period of Time

Informative
Informative Advertising
Advertising Persuasive
Persuasive Advertising
Advertising
Build
Build Primary
PrimaryDemand
Demand Build
Build Selective
SelectiveDemand
Demand

Comparison
Comparison Advertising
Advertising Reminder
Reminder Advertising
Advertising
Compares
ComparesOne
OneBrand
Brand to
to Keeps
KeepsConsumers
ConsumersThinking
Thinking
Another
Another About
About aaProduct.
Product.

04/10/10 4
 The Five Ms of
Advertising
Message
Money Generation
Evaluation
Factors to Selection
consider: Execution
Mission Social-responsibility
Stage in PLC
Measure
Sales Market share
goals & consumer Impact:
base Media
Adver- Comm.
tising Competition Reach
objectives and clutter Frequency, Sales
Impact
Advertising
frequency Media types
Specific vehicles
Product Timing
substitution Geography
04/10/10 5
 Advertising Budget Factors

Market Share &

Consumer Base

Stage in the Competition &

Product Life Cycle Clutter

Product Advertising
Substitutability Frequency

04/10/10 6
 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:
04/10/10
Relative high cost; “junk mail” image 7
 Profiles of Major Media
Types
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:
04/10/10 Little audience selectivity; creative limitations 8
 Classification of Advertising
Timing Patterns
Level Rising Falling Alternating

Concentrated
(1) (2) (3) (4)

(5) (6) (7) (8)

Continuous

(9)
(9) (10) (11) (12)
Intermittent No. of
messages
per month

Month
04/10/10 9
 Simplified Rating Sheet for
Ads
• (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
Total __

0 20 40 60 80 100
Poor Mediocre Average Good Great
ad ad ad ad ad
04/10/10 10
 Advertising
Strategy
Message
Turning the “BigExecution
Idea” Into an Actual Ad to Capture the
Target Market’s Attention and Interest.

Testimonial
Testimonial Slice
Sliceof
ofLife
Life
Evidence
Evidence

Scientific
Scientific Lifestyle
Lifestyle
Evidence
Evidence Typical
Typical
Message
Message
Technical
Technical Fantasy
Expertise Execution
Execution Fantasy
Expertise
Styles
Styles
Personality Mood
Moodoror
Personality
Symbol Image
Image
Symbol

Musical
Musical
04/10/10 11
 Advertising
Evaluation
Advertising
Advertising Program
Program Evaluation
Evaluation

Communication
Communication Effects
Effects Sales
Sales Effects
Effects
Is
Isthe
theAd
AdCommunicating
CommunicatingWell?
Well? Is
Isthe
theAd
AdIncreasing
IncreasingSales?
Sales?

04/10/10 12
 Why the increase in Sales
Promotion?
• Growing retailer power
• Declining brand loyalty
• Increased promotional sensitivity
• Brand proliferation
• Fragmentation of consumer market
• Short-term focus
• Increased managerial accountability
• Competition
• Clutter

04/10/10 13
 Long-Term Promotion Allocation

60
%t of total - 3 yr.MA

50
40 Trade Promo
30 Media Adv
20 Cons. Promo
10
0
1986 88 90 92 94 1996
Year
Cox Direct 19th Annual Survey of Promotional Practices
04/10/10 14
 Channels of Sales
Promotions
MANUFACTURER

Trade
Push
Promotions

RETAILER Consumer
Promotions
Retail Pull
Push
Promotions

CONSUMER

04/10/10 15
 Consumer
Promotion
Consumer-Promotion Consumer-Promotion Tools
Objectives

Entice
EnticeConsumers
Consumersto to
Try Samples Advertising
Advertising
TryaaNew
NewProduct
Product Samples
Specialties
Lure Specialties
LureCustomers
CustomersAway
Away Coupons
Coupons Patronage
From Patronage
FromCompetitors’
Competitors’Products
Products Patronage
Rewards
Get Rewards
Rewards
GetConsumers
Consumersto to“Load
“LoadUp’
Up’ Cash
CashRefunds
Refunds
on a Mature Product
on a Mature Product Contests
Contests
Hold
Hold&&Reward
Reward Loyal Price
Customers
Loyal PricePacks
Packs Sweepstakes
Customers Sweepstakes
Consumer
ConsumerRelationship
Relationship
Building Premiums
Premiums Games
Games
Building
Point-of-Purchase
Point-of-Purchase
Displays
Displays
04/10/10 16
 “Deal Proneness,”
• Examination of “deal proneness” among
consumers in a supermarket setting

• Surveys & Grocery Receipts used

• Eight types of deals:

– Cent-off, One-free, Gift, Display, Rebate,
Contest, Sale, & Coupon

Liechtenstein, Burton, & Netemeyer, Journal of Retailing, Summer 1997

04/10/10 17
 “Deal Proneness,”
• Cluster analysis yielded 2 interpretable results:
– 49% are “deal prone,” 51% not
– 24% High “Deal prone,” 50% intermediate, 26% deal
insensitive

• “Deal-proneness” a generalized construct, i.e.

crosses type of promotion

• Younger & less-educated more likely to be deal

prone

Liechtenstein, Burton, & Netemeyer

04/10/10 18
 Trade
PromotionsTrade-Promotion
Trade-Promotion Tools
Objectives
Persuade
PersuadeRetailers
Retailersor
or Price-Offs Premiums
Price-Offs Premiums
Wholesalers
Wholesalersto
toCarry
CarryaaBrand
Brand
Give Allowances
Allowances Patronage
Patronage
Displays
GiveaaBrand
BrandShelf
ShelfSpace
Space Rewards
Rewards
Promote
PromoteaaBrand
Brandin
in Buy-Back
Buy-Back
Advertising Guarantees Discounts
Discounts
Advertising Guarantees
Push Push
PushMoney
Money
PushaaBrand
Brandto
toConsumers
Consumers Free
FreeGoods
Goods
Specialty
Specialty
Advertising
Advertising
Contests
Contests Items
Items

04/10/10 19
 Business-to-Business
Promotion
Business-Promotion
Objectives Business-Promotion
Generate Tools
GenerateBusiness
BusinessLeads
Leads
Conventions
Conventions
Stimulate
StimulatePurchases
Purchases
Trade
TradeShows
Shows
Reward
RewardCustomers
Customers

Motivate Sales
SalesContests
MotivateSalespeople
Salespeople Contests

04/10/10 20
 Major Public Relations Tools
Web
WebSite
Site
Public
Public
Service
Service News
News
Activities
Activities

Corporate
Corporate Speeches
Identity Speeches
Identity
Materials
Materials

Special
Special
Audiovisual
Audiovisual Events
Events
Materials
Materials Written
Written
Materials
Materials
04/10/10 21
 Taco Bell has
purchased the
Liberty Bell!

04/10/10 22
 Next Week ...

Direct
Marketing

04/10/10 23