ADVERTISING & SALES PROMOTION

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

Types of advertising
Institutional advertising Designed to enhance a companys image Product advertising Designed to promote the benefits of a specific product/ service

Product advertising

The 5 Ms of Advertising
Mission: what are the advertising objectives? Money: how much can be spent? Message: what message can be sent? Media: what media should be used? Measurement: how should the results is evaluated?

Steps in developing an advertising programme

Identify the target audience

Specify the advertising objectives

Set the advertising budget

Evaluate advertising effectiveness

Select the media

Develop the advertising message

STEP 1: Identifying the target audience

Target audience:
a market segment to which a marketer wants to communicate a product/ brand message

STEP 2: Setting the advertising objective

A specific communication task to be accomplished with a specific target audience during a specific period of time.

To inform
To persuade To remind

The DAGMAR Approach

Define Advertising Goals for Measured Advertising Results

Developed by Russel Colley in 1961 a model for setting advertising objectives and measuring the results Ad to perform a specific c/n task The task has to be accomplished among well defined audience within a period of time

Advertising Objectives
Informative advertising
To communicate value To tell about a new product Explain how the product works Suggest new uses for a product Inform the market of a price change Describe services Correct false impressions Build a brand & company image

Advertising Objectives
Persuasive advertising
To encourage switching to your brand To persuade customers to take a sales call To persuade customers to purchase a product To convince customers to tell others about the brand To change customers perception about products attributes

Advertising Objectives
Reminder advertising
To maintain customer relationships Remind customers that the product may be needed in the near future Eg: Insurance Remind customers where to buy the product Keeping the brand in customer's minds during off seasons.

Advertising Objectives
Reinforcement advertising
Aims to convince current purchasers that they made the right choice.

STEP 3: Deciding on the advertising budget

Advertising budget: the amount of money allocted by a firm for its advertising campaigns for a specific period of time Budget varies depending on the stage in the product lifecycle.

Methods for advertising budget allocation

Affordability Method
Setting advertising Budget at the Level the Company Thinks They Can Afford.

Percentage-ofSales Method
Setting advertising Budget at a Certain % of Current or Forecasted Sales

Competitive-Parity Method
Setting advertising Budget to Match Competitors Outlay

Objective-and-Task Method
Setting advertising Budget by Defining Objectives, Tasks & Costs.

STEP 4: Developing the advertising strategy

The strategy by which the company accomplishes its advertising objectives. Two major elements:
Creating advertising messages Selecting the advertising media

Developing the advertising message

Characteristics of an effective message:
Meaningful: point out benefits that make the product more desirable/ interesting to the consumers Believable: the consumers must believe that the product will deliver the promised benefits Distinctive: needs to be unique to capture customers attention

Issues to Consider in Designing the Message

Message Content Rational Appeals Emotional Appeals Moral Appeals

Message Structure Can be one sided / two sided

Message Source Expertise, Trustworthiness, Likeability

Message Execution Style

The approach, style, tone, words & format used for executing an advertising messagre

Typical Message Execution Styles

Comparisons Animated Symbol Mood or Image

Slice of Life

Lifestyle Demonstration

Spokesperson Musical
Fantasy Scientific Evidence

Humor

Selecting the right media

The vehicles thru which advertising messages are delivered to the intended audience Based on:
The target audience
Location of the target audience Message to be delivered Timing of the campaign

Selecting the right media (cont)

Decide on the reach, frequency & impact needed to achieve objectives Choose among major media types- TV, news paper etc. Select specific media vehicles- Star plus, CNN, The Hindu etc Decide on media timing Decide on geographical media allocation

 Reach(R) : the number of persons in the target market who are exposed to the advertising campaign during a given period of time. Frequency : the measure of how many times the average person in the target market is exposed to the message

Choosing among media types

Depends on: Target audience media habits Product characteristics Message characteristics Cost

Media Types
Newspapers
Magazines

Radio
Television

Major Types of Advertising Media

Outdoor

Internet
Alternative Medias

Selecting specific media vehicles

Depends on:
Circulation: The number of physical units carrying the advertising Audience: Number of people exposed to the vehicle Effective audience: The number of people with target audience characteristics exposed to the vehicle Effective ad exposed audience: the number of people with target audience characteristics who actually saw the ad.

Deciding on media timing & geographical allocation

Scheduling the timing of advertising Also decide on the geographical spacing of advertisements.

Step 5: Evaluating Advertising Effectiveness

Advertising Program Evaluation

Communication Effects ( copy testing)

Sales Effects (to the extent possible)

Is the advertisement meeting the specific communication objective?

Is the Ad Increasing Sales?

Communication effect research - methods

Consumer feedback method
What is main message you get from this ad? How does the ad make you feel?\what works well in the ad & what works poorly?

Portfolio tests
Consumers asked to view/ listen to a portfolio of ads then asked to recall all the ads & their content Indicates an ads ability to stand out & to have its message understood & remembered

Laboratory tests:
Use equipment to measure physiological reactions to an ad.

Sales effect research

Measuring the sales & profit after the ad is released.

Advertising agency
A firm which specialises in developing & running advertising campaigns through various media

AIDA MODEL OF ADVERTISING

AIDA MODEL OF ADVERTISING

Hierarchy of Effects Model

Hierarchy of Effects Model

Hierarchy of Effects Model

Sales Promotion

 A diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of products/ services Whereas advertising gives a reason to buy, SP gives an incentive to buy

Consumer Promotion Tools

Consumer-Promotion Objectives
Attract Consumers to Try a New Product Lure Customers Away From Competitors Products Hold & Reward Loyal Customers Consumer Relationship Building Samples Coupons Cash Refunds Price Packs Premiums Advertising Specialties Patronage Rewards Contests Point-of-Purchase Promotion

Trade Promotion Tools

Trade-Promotion Objectives
Persuade Retailers or Wholesalers to Carry a Brand
Give a Brand Shelf Space Promote a Brand in Advertising Push a Brand to Consumers

Trade-Promotion Tools
Price-Offs Allowances Dealer listing Free Goods Contests Specialty Advertising Items

THANK YOU