Principles of Marketing

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Principles of Marketing
Lecture-34
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Summaryof Lecture-33
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Advertising
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The Five Ms of Advertising
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Message Message generation Message
evaluation and selection Message
execution Social-responsibility review
Money Factors to consider Stage in PLC Market
share and con- sumer base Competition and
clutter Advertising frequency Product substituta
- bility
Mission Sales goals Adver- tising objectives
Measure- ment Communi- cation impact Sales impac
t
Media Reach, frequency, impact Major media
types Specific media vehicles Media
timing Geographical media allocation
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Major Advertising Decisions
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Objectives Setting
Budget Decisions
Message Decisions
Media Decisions
Campaign Evaluation
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Choose the Media
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(No Transcript)
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Todays Topics
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Advertising (cont..)Sales Promotion
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Media Scheduling
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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
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• 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.

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• 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.

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Evaluating Advertising Effectiveness
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Advertising Program Evaluation
Communication Effects Is the Ad Communicating
Well?
Sales Effects Is the Ad Increasing Sales?
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What to communicate?
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Ways to Handle Advertising
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Sales Departments in Small Companies
Advertising Departments in Larger Companies
Advertising Agency
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Sales Promotion
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• Sales Promotion is a Mass Communication Technique
  That Offers Short-Term Incentives to Encourage
  Purchase or Sales of a Product or Service.
• Offers Reasons to Buy Now.

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Sales Promotion Objectives
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• Increase short-term sales or help build
  long-term market share.
• Get retailers to
• carry new items and more inventory,
• advertise products,
• give products more shelf space, and
• buy product ahead.

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• In general, sales promotion should focus on
  consumer relationship building.

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Reasons for Increase inSales Promotion
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• Growing Power of Retailers
• Declining Brand Loyalty
• Increased Promotional Sensitivity
• Fragmentation of Consumer Markets
• Short-Term Focus
• Pressure from inside organization
• Competition
• Clutter

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Major Consumer Sales Promotion Tools
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Sample
Trial amount of a product
Savings when purchasing specified products
Coupons
Refund of part of the purchase price
Cash Refunds
Reduced prices marked on the label or package
Price Packs
Goods offered free or low cost as an incentive to
buy a product
Premiums
Articles imprinted with an advertisers name
given as gifts
Advertising Specialties
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Consumer Sales Promotion Techniques
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Price Deals
Bargain!
Value!
Sale!
Price-Pack Deals
Cents-Off Deals
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Major Trade Sales Promotion Tools
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• Discount
• Allowance

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Objectives of Trade Promotions
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(No Transcript)
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Trade Sales Promotion Techniques
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Developing the Sales Promotion Program
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Decide on the Size of the Incentive
Set Conditions for Participation
Determine How to Promote and Distribute the
Promotion Program
Determine the Length of the Program
Evaluate the Program
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Sales Promotion Uses
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• Introduce new products
• Get existing customers to buy more
• Attract new customers
• Combat competition
• Maintain sales in off season
• Increase retail inventories
• Tie in advertising and personal selling
• Enhance personal selling efforts

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Limitations of Sales Promotion
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(No Transcript)
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Enough for today. . .
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Summary
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Media Scheduling
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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
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Evaluating Advertising Effectiveness
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Advertising Program Evaluation
Communication Effects Is the Ad Communicating
Well?
Sales Effects Is the Ad Increasing Sales?
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Sales Promotion
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Major Consumer Sales Promotion Tools
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Major Trade Sales Promotion Tools
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Developing the Sales Promotion Program
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Decide on the Size of the Incentive
Set Conditions for Participation
Determine How to Promote and Distribute the
Promotion Program
Determine the Length of the Program
Evaluate the Program
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Next.
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Personal Selling
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Principles of Marketing
Lecture-34