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Principles of Marketing


Todays Topics


Any paid form of nonpersonal presentation by an identified sponsor.

Any form of non-personal communication paid for by sponsor using mass media to persuade/inform an audience Products/Services Public Service Advertising Non-profit org. People (political candidates, celebrities) Places (retail outlets, vacation destinations)


Inform: new product, new uses, price changes Persuade: encourage switching, purchase now, change perceptions
Remind: where to buy, may need in future, top of mind in off-season

Too Much Clutter!!!

Television: Print:

networks, cable, satellite dishes magazines, newspapers, junk mail


fragmented audiences, on the more popular stations, your ads are sandwiched with four other ads. Internet


How do you get the attention of the audience????

Break Through the Clutter with Impact Advertising

Humor appeal Emotional appeal Moral appeal

Celebrity appeal Sensory appeal

Rational appeal

Steps to Creating an Effective Advertising Campaign

1) Define your target market 2) Determine their needs from your product - functional

- emotional
3) Develop an advertisement that creates an image for your product that is sought by your target market (positioning)

The Five Ms of Advertising

Factors to consider:
Message generation Message evaluation and selection Message execution review

Sales goals Advertising objectives

Stage in PLC Market share and consumer base Competition and clutter

MeasureSocial-responsibility ment

Reach, frequency, impact Major media types Specific media vehicles Media timing Geographical

Communi cation impact Sales impact

Advertising frequency
Product substitutability

Major Advertising Decisions

Objectives Setting

Budget Decisions

Message Decisions

Media Decisions

Campaign Evaluation

Message Decisions
Message Strategy Message Execution

Objectives Setting
Communication objectives Sales Objectives

Budget Decisions
Affordable Approach Percent of sales Competitive parity Objective and task

Campaign Evaluation
Communication Impact Sales Impact

Media Decisions
Reach, Frequency, Impact Major Media Types Specific Media Types Media Timing

Advertising Objective
Informative Advertising Persuasive Advertising

Reminding Advertising

Setting Message Goals

Increasing Brand Awareness

Increasing Sales Changing the by a Certain Image of a Recognizing a Percentage Product Need for the Product

Setting Budget Goals

Setting the Advertising Budget

Product Differentiation

Stage in the Product Life Cycle

Advertising Frequency

Factors in Setting the Advertising Budget

Market Share

Competition and Clutter

Affordable Method

Percentageof-Sales Method

CompetitiveParity Method

Objectiveand-Task Method

Developing Advertising Strategy

Message Decision Media Decision

Creating the Advertising Message

Plan a Message Strategy

General Message to Be Communicated to Customers

Develop a Message
Focus on Customer Benefits

Creative Concept Big Idea

Visualization or Phrase Combination of Both

Advertising Appeals
Meaningful Believable Distinctive

Message Execution
Slice of Life Lifestyle Fantasy Mood or image

Personality symbol

Technical expertise
Scientific evidence

Testimonial evidence

Design the Ad
Humorous Appeals Unique Selling Proposition Comparative Advertising Sex Appeals

Advertising Appeals
Fear Appeals





Choose the Media


Yellow Pages



Major Kinds of Media

Direct Mail Outdoor



Recent trend is the growth of cable television advertisements.

Marketers can now target audiences through special interest channels. (Food network, home and garden, etc).

With commute times growing, radio advertising revenues are growing faster than any other media. Very easy to target your audience.

Consumer and business publications.
Can specifically target your market. Marketers carefully study subscription rates and demographic data for each news paper/magazine.

Outdoor Advertising
Billboards, painted bulletins or displays (such as those that appear on the walls of buildings,) and electric spectaculars
Can be local, regional, or national

Outdoor advertising is effective along metropolitan streets and in other hightraffic areas

Other Advertising Media

Transit advertising: ads placed both inside and outside of buses, subway trains and stations, and commuter trains Cinema advertising Ads on telephone booths and park benches Ads can be printed in programs of livetheater productions Directory advertising (yellow pages) Hot air balloons, blimps, banners behind planes, and scoreboards

Media Scheduling

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

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.

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.

Evaluating Advertising Effectiveness


Tools: Focus Groups Screening Persuasion Scores


Tools: Unaided Recall Tests Aided Recall Tests Inquiry Evaluations

Sales Effectiveness Evaluations

Tools: Monitor Sales Brand-to-Sales Effects

Advertising Program Evaluation

Communication Effects
Is the Ad Communicating Well?

Sales Effects
Is the Ad Increasing Sales?

What to communicate?
Get Attention

Hold Interest

Arouse Desire

Obtain Action

Ways to Handle Advertising

Sales Departments in Small Companies

Advertising Departments in Larger Companies

Advertising Agency

Enough for today. . .