ADVERTISING

Advertising

 Setting Advertising Objectives

 Setting the Advertising Budget

 Developing Advertising Strategy

 Evaluating Advertising Effectiveness and Return on Advertising Investment

Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services
by an identified sponsor

Major Advertising Decisions

An advertising objective is a specific communication task to be accomplished with a specific target

audience during a specific time

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Informative advertising is used when introducing a new product category; the objective is to build
primary demand

Persuasive advertising is important with increased competition to build selective demand

Reminder advertising is important with mature products to help maintain customer relationships and keep
customers thinking about the product

Reinforcement advertising aims to convince current purchasers that they made the right
choice.Automobile ads often depict satisfied customers enjoying special features of their new car.

Table 15.1
Possible Advertising Objectives

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FACTORS AFFECTING BUDGET DECISIONS

1. Stage in the product life cycle—New products typically merit large advertising budgets to build
awareness and to gain consumer trial. Established brands usually are supported with lower advertising
budgets,measured as a ratio to sales.

2. Market share and consumer base—High-market-share brands usually require less advertising
expenditure as a percentage of sales to maintain share.To build share by increasing market size requires
larger expenditures.

3. Competition and clutter—In a market with a large number of competitors and high advertising
spending, a brand must advertise more heavily to be heard. Even simple clutter from advertisements not
directly competitive to the brand creates a need for heavier advertising.

4. Advertising frequency—The number of repetitions needed to put the brand’s message across to
consumers has an obvious impact on the advertising budget.

5. Product substitutability—Brands in less-differentiated or commodity-like product classes (beer, soft

drinks, banks, and airlines) require heavy advertising to establish a unique image.

Advertising strategy is the strategy by which the company accomplishes its advertising objectives
and consists of:

 Creating advertising messages

 Selecting advertising media

Developing Advertising Strategy

Advertisements need to break through the clutter:

 Gain attention

 Communicate

well

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Creating the Advertising Message

Message strategy

Creative concept

Message execution

Developing the Advertising Campaign

In designing and evaluating an ad campaign,marketers employ both art and science to develop the
message strategy or positioning of an ad—what the ad attempts to convey about the brand—and its
creative strategy—howthe ad expresses the brand claims. Advertisers go through three steps:

(1)message generation and evaluation,

(2)creative development and execution

(3)social-responsibility review.

Message strategy is the general message that will be communicated to consumers

 Identifies consumer benefits

Message Generation and Evaluation

 Advertisers are always seeking “the big idea”that connects with consumers rationally and
emotionally,sharply distinguishes the brand from competitors,and is broad and flexible
enough to translate to different media,markets,and time periods. Fresh insights are
important for avoiding using the same appeals and position as others.

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 The tagline for California Milk Processor
Board’s “Got milk?” campaign has also been used as
part of the “milk mustache” print ad series, featuring
numerous celebrities such as St. Louis Cardinals
baseball slugger Albert Pujols.

Creative concept is the idea that will bring the message strategy to life and guide specific appeals to be
used in an advertising campaign

Characteristics of the appeals include:

 Meaningful

 Believable

 Distinctive

CREATIVE DEVELOPMENT AND EXECUTION

 Television Adsis generally acknowledged as the most powerful advertising medium and reaches
a broad spectrum of consumers at low cost per exposure. TV advertising has two particularly
important strengths.

 First, it can vividly demonstrate product attributes and persuasively explain their corresponding
consumer benefits.

 Second, it can dramatically portray user and usage imagery,brandpersonality,and other

intangibles.

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 Print Ads. Print media offer a stark contrast to broadcast media. Because readers consume them
at their own pace, magazines and newspapers can provide detailed product information and
effectively.

Aflac’s iconic duck character has been the

centerpiece of its brandbuilding advertising for
years.

 Radio Ads. Radio is a pervasive.Much radio listening occurs in the car and out of home. As
streaming Internet access gains ground,traditional AM/FM radio stations are feeling the pressure
and account for less than half of all listening at home.

 radio’s main advantage is flexibility—stations are very targeted, ads are relatively inexpensive to
produce and place,and short closings allow for quick response.Radio is a particularly effective
medium in the morning; it can also let companies achieve a balance between broad and localized
market coverage.

Message Execution

 Message execution is when the advertiser turns the big idea into an actual ad execution that will
capture the target market’s attention and interest.

 The creative team must find the best approach, style, tone, words, and format for executing the
message.

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Message execution also includes:

 Tone

 Positive or negative

 Attention-getting words

 Format

 Illustration

 Headline

 Copy

LEGAL AND SOCIAL ISSUES

 marketers must be sure advertising does not overstep social and legal norms or offend the general
public,ethnicgroups,racialminorities,or special-interest groups.

 A substantial body of laws and regulations governs advertising.

Slice of life Lifestyle Fantasy

Mood or Musical Personality

image symbol

Technical Scientific Testimonial or

expertise evidence endorsement

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Major steps include:

 Deciding on reach-frequency-impact

 Selecting media vehicles

 Deciding on media timing

Reach is a measure of the percentage of people in the target market who are exposed to the ad campaign
during a given period of time

Frequency is a measure of how many times the average person in the target market is exposed to the
message

Impact is the qualitative value of a message exposure through a given medium

Selecting media vehicles involves decisions presenting the media effectively and efficiently to the target
customer and must consider the

message’s:

 Impact

 Effectiveness

 Cost

Narrowcasting focuses the message on selected market segments

 Lowers cost

 Targets more effectively

 Engages customers better

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When deciding on media timing, the planner must consider:

 Seasonality

 Pattern of the advertising

 Continuity—scheduling within a given period

 Pulsing—scheduling unevenly within a given period

Alternate Advertising Options

 PLACE ADVERTISING. Place advertising, or out-of-home advertising, is a broad category

including many creative and unexpected forms to grab consumers’attention. Popular options
include billboards,publicspaces,productplacement,and point of purchase.

 Billboards. Billboards have been transformed and now use colorful, digitally produced graphics,
backlighting,sounds,movement,and unusual—even 3D—images.

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  Public Spaces Advertisers have been increasingly placing ads in unconventional places such as
on movie screens, on airplanes, and in fitness clubs, as well as in classrooms, sports arenas, office
and hotel elevators, and other public places. Billboard-type poster ads are showing up
everywhere. Transit ads on buses, subways, and commuter trains. Street furniture”—bus
shelters,kiosks,and public areas—is another fast-growing option.

Return on advertising investment

The net return on advertising investmentdivided by the costs of the advertisinginvestment.

Communication effects indicate whether the ad and media are communicating the ad message well and
should be tested before or after the ad runs

Sales and profit effects compare past sales and profits with past expenditures or through experiments

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Personal selling

is the interpersonal part of the promotion mix and can include:

 Face-to-face communication
 Telephone communication
 Video or Web conferencing

Salespeople

are an effective link between the company and its customers to produce customer value and company
profit by:

 Representing the company to customers

 Representing customers to the company
 Working closely with marketing

The Personal Selling Process

The goal of the personal selling process is to get new customers and obtain orders from them

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Prospecting

identifies qualified potential customers through referrals from:

 Customers
 Suppliers
 Dealers
 Internet

The Personal Selling Process

Qualifying

is identifying good customers and screening out poor ones by looking at:

 Financial ability
 Volume of business
 Needs
 Location
 Growth potential

Pre-approach

is the process of learning as much as possible about a prospect, including needs, who is involved in the
buying, and the characteristics and styles of the buyers

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Approach

is the process where the salesperson meets and greets the buyer and gets the relationship off to a good
start and involves the salesperson’s:

 Appearance
 Opening lines
 Follow-up remarks

Opening lines should be positive, build goodwill, and be followed by key questions to learn about the
customer’s needs or showing a display or sample to attract the buyer’s attention and curiosity

The most important attribute is for the salesperson to:listen

Presentation

is when the salesperson tells the product story to the buyer, presenting customer benefits and showing
how the product solves the customer’s problems

Need-satisfaction approach:

Buyers want solutions and salespeople should listen and respond with the right products and services to
solve customer problems

Handling objections

is the process where salespeople resolve problems that are logical, psychological, or unspoken

Closing

is the process where salespeople should recognize signals from the buyer—including physical actions,
comments, and questions—to close the sale

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Follow-up

is the last step in which the salesperson follows up after the sale to ensure customer satisfaction and
repeat business

Personal selling

is transaction-oriented to close a specific sale with a specific customer

The long-term goal is to develop a mutually profitable relationship

Personal Selling and Managing Customer Relationships

Sales promotion

refers to the short-term incentives to encourage purchases or sales of a product or service:

 Consumer promotions
 Trade promotions
 Sales force promotions

Rapid Growth of Sales Promotions

 Product managers are under pressure to increase current sales

 Companies face more competition
 Competing brands offer less differentiation
 Advertising efficiency has declined due to rising costs, clutter, and legal constraints
 Consumers have become more deal-oriented
 Rapid Growth of Sales Promotions

Sales promotion objectives includes using:

 Consumer promotions
 Trade promotions
 Sales force promotions

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 Sales Promotion Objectives

Major Sales Promotion Tools

Samples offer a trial amount of a product

Coupons are certificates that give buyers a saving when they purchase specified products

Cash refunds are similar to coupons except that the price reduction occurs after the purchase

Price packs offer consumers savings off the regular price of a product

Premiums are goods offered either for free or at a low price

Advertising specialties are useful articles imprinted with the advertiser’s name, logo, or message that are
given as gifts to consumers

Point-of-purchase promotions include displays and demonstrations that take place at the point of sales

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Contests, sweepstakes, and games give consumers the chance to win something—such as cash, trips, or
goods—by luck or through extra effort

 Contests require an entry by a consumer

 Sweepstakes require consumers to submit their names for a drawing
 Games present consumers with something that may or may not help them win a prize
 Event marketing

Business Promotion Tools

Conventions and trade shows are effective to reach many customers not reached with the regular sales
force

Sales contests are effective in motivating salespeople or dealers to increase performance over a given
period

Developing the Sales Promotion Program

 Size of the incentive

 Conditions for participation
 Promote and distribute the program
 Length of the program
 Evaluation of the program
 Developing the Sales Promotion Program

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Publicity and Public Relation

Publicity :

The generation of news about a person, product, or service that appears in the media

 A short-term strategy
 A subset of public relations
 Not always positive
 Often originates outside the firm

Advantages

 Substantial credibility
 News value
 Significant word-of-mouth
 Perception of endorsement by media

Disadvantages

 Timing difficult or impossible to control

 Inaccuracy, omission, or distortion may result

Public relationsinvolves
building good relations with the company’s various publics by obtaining favorable publicity, building up
a good corporate image, and handling or heading off unfavorablerumors, stories, and events

Public relations is used to promote product, people, ideas, and activities

Public relations department functions include:

 Press relations or press agency

 Product publicity

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 Public affairs
 Lobbying
 Investor relations
 Development

Press relations or press agenc

involves the creation and placing of newsworthy information to attract attention to a person, product, or
service

Product publicity

involves publicizing specific products

Public affairs

involves building and maintaining national or local community relations

Lobbying

involves building and maintaining relations with legislators and government officials to influence
legislation and regulation

Investor relations

involves maintaining relationships with shareholders and others in the financial community

Development

involves public relations with donors or members of nonprofit organizations to gain financial or volunteer
support

The Role and Impact of Public Relations

 Lower cost than advertising

 Stronger impact on public awareness than advertising

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Major Public Relations Tools

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 PHILIPPINE CHRISTIAN UNIVERSITY
1648 Taft Avenue corner Pedro Gil St., Manila

MASTER IN BUSINESS ADMINISTRATION

MARKETING MANAGEMENT

“PROMOTIONS”

IN-CAMPUS MBA PROGRAM

SUBMITTED BY:

KATRIZIA CERIZE L. FAUNI

HU PANPAN
HAN JIANHUA

SUBMITTED TO:

MA’AM HICAP, PROF.

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