1. Managing Mass
Communications Advertising,
Sales Promotions,
Events and Experiences, and
Public Relations
DESINGED BY
Sunil Kumar
Research Scholar/ Food Production Faculty
Institute of Hotel and Tourism Management,
MAHARSHI DAYANAND UNIVERSITY,
ROHTAK
Haryana- 124001 INDIA Ph. No. 09996000499
email: skihm86@yahoo.com , balhara86@gmail.com
linkedin:- in.linkedin.com/in/ihmsunilkumar
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7. PURPOSE OF ADVERTISING
• IN ORDER TO STATE THE PURPOSE:
• MUST DECIDE THE PRECISE ACTION WE
WANT THE TARGET AUDIENCE TO TAKE
AFTER WATCHING, READING, OR LISTENING
TO THE AD
• PURPOSE IS:
• TO PERSUADE SOMEONE TO DO
SOMETHING
• MUST DECIDE
• WHO
• WHAT TO DO
7
8. PURPOSE OF ADVERTISING-CONTINUED
• ADVERTISING IS THE CAUSE
• BEHAVIOR IS THE EFFECT
• BUY, USE, WRITE, CALL, VISIT DEALER, ORDER BY
PHONE
• COMPLETE STATEMENT INCLUDE BUSINESS
SOURCE
• KEY TO MARKETING DEFINITION IS
SUBSTITUTABILITY
• WHICH PRODUCTS MIGHT THE BRAND BE
INTERCHANGEABLE
• SET OF PRODUCTS MIGHT BE SMALLER OR
LARGER THAN THE SET OF PRODUCTS BY WHICH
THE CATEGORY IS TRADITIONALLY DEFINED
8
9. BARRIER THEORY
• CAN ANY OF THE PROMOTIONAL
ELEMENTS OVERCOME THESE
BARRIERS IN THE CONSUMER DECISION
PROCESS?
• AWARENESS
• ACCEPTANCE
• PREFERENCE
• SEARCH
• SELECTION
• USE
• SATISFACTION
9
10. EXAMPLES OF PURPOSE OF ADVERTISING
• PURPOSE OF ADVERTISING IS TO
PERSUADE THE AUDIENCE:
• TO BUY RUFFLES INSTEAD OF
OTHER BRANDS OF POTATO CHIPS
• TO USE BISQUICK INSTEAD OF
PANCAKE MIX
• TO PERSUADE MEMBERS OF THE
TARGET AUDIENCE TO COME INTO
THE SHOWROOM FOR A TEST DRIVE
TO THE AUDI 80/90, RATHER THAN
OTHER HIGH-LINE SPORTS SEDANS
10
11. TARGET
• THE GROUP OF PEOPLE WHO ARE THE BEST
PROSPECTS FOR THE ADVERTISER’S BRAND
• TO WHOM THE ADVERTISING WILL BE
ADDRESSED
• NEED A PERSON TO WRITE TO:
• BUSINESS TRAVELLERS WHO ARE LIKELY
TO STAY AT MID-PRICED HOTELS
• HEAVY USERS OF CHARCOAL
• YOUNG WOMEN WHO HAVE ACNE
PROBLEMS
• PEOPLE IN THE MARKET FOR AN EXPENSIVE
SPORTY EUROPEAN CAR
11
12. NEED TO KNOW DEMOGRAPHIC
AND PSYCHOGRAPHIC PROFILE
• BUSINESS TRAVELLERS WHO ARE LIKELY TO
STAY AT A MID-PRICE HOTEL, $45,000 TO
$75,000 ANNUAL INCOME. EIGHTY PERCENT
ARE MALES. THEY CHOOSE MID-PRICE
ACCOMMODATIONS BECAUSE THEY ARE
PAYING THEIR OWN WAY, OR BECAUSE THEIR
EXPENSE ACCOUNTS ARE LIMITED. THEY
WANT BASIC, CLEAN ACCOMMODATIONS WITH
A MINIMUM OF HASSLE. THEY ARE
FREQUENTLY TIRED, USUALLY INPATIENT, AND
ALWAYS CRITICAL. SMALL LUXURIES, SPECIAL
RESPECT AND ATTENTION ARE IMPORTANT TO
THEM
12
13. NEED TO KNOW DEMOGRAPHIC AND
PSYCHOGRAPHIC PROFILE--CONTINUED
• HEAVY USERS OF CHARCOAL,
FATHERS BETWEEN 25 AND 49.
MOST OF THEM LIVE IN THE
SUBURBS OR SEMIRURAL AREAS.
THEY GET A BIG KICK OUT OF
BARBECUING FOR FAMILY AND
FRIENDS. THEY WANT THE MEAT
TO TURN OUT JUST RIGHT
13
14. EXAMPLE OF PURPOSE AND
TARGET
•
PURPOSE
• TO PERSUADE FREQUENT NEW YORK TO WASHINGTON, DC
TRAVELLERS TO TAKE AMTRACK INSTEAD OF A PLANE
•
TARGET
• FREQUENT NEW YORK TO WASHINGTON TRAVELLERS ARE
LIKELY TO BE WELL-EDUCATED, WHITE-COLLAR
PROFESSIONALS CONDUCTING A DAY’S BUSINESS IN
EITHER CITY. THE NEARLY 10,000 PEOPLE WHO FLY DAILY
BETWEEN NEW YORK AND WASHINGTON HAVE GROWN
ACCUSTOMED TO NO-FRILLS SERVICE, CROWDED SEATING
AND “CATTLE CAR” CONDITIONS. THEIR TIME IS AT A
PREMIUM AND, DESPITE AIRPORT DELAYS AND TRAVEL
TIME TO AND FROM AIRPORTS, THEY BELIEVE PLANES
PROVIDE THE SHORTEST TRIP POSSIBLE. SIXTY TO
SEVENTY PERCENT ARE MALES
14
15. PROMISE
• BENEFIT OR REWARD FOR BUYING OR USING
THE ADVERTISED BRAND
• WHEN I_________. I WILL__________.
• THE “I” IN THIS SENTENCE IS THE TARGET
AUDIENCE
• THE 1ST BLANK REPRESENTS THE PURPOSE
OF THE ADVERTISING
• THE 2ND BLANK REPRESENTS THE BENEFIT
• NUMBER OF PROMISES
• SINGLE MINDED OR ONE IN MOST CASES
• COMBINATION, RATHER THAN ONE BENEFIT, IF IT DEFINES
THE ESSENTIAL NATURE OF THE BRAND (WEIGHT
WATCHERS’ ENTREES--REDUCED CALORIES AND GOOD
TASTE).
15
16. PROMISE IS THE HEART OF THE
STRATEGY
• THE BENEFIT IS IN THE MIND OF THE
CONSUMER, NOT IN THE PRODUCT.
PRODUCTS HAVE ATTRIBUTES, NOT BENEFITS
• THE BENEFIT IS A FUTURE EXPERIENCE. IT IS
AN (SUBJECTIVE) EXPERIENCE PROMISED TO
THE CONSUMER BY THE ADVERTISER AS A
REWARD FOR BUYING OR USING THE
ADVERTISED BRAND
• THE BENEFIT IS A CONCLUSION, TO BE DRAWN
BY THE CONSUMER FROM THE CAMPAIGN AS A
WHOLE. THE PROMISE IS NOT A COPY LINE.
THE WORDS USED IN THE STRATEGY MAY OR
MAY NOT EVER APPEAR IN THE ADVERTISING
16
ITSELF
17. EXAMPLES OF PURPOSE AND
BENEFIT
• WHEN I TAKE AMTRACK INSTEAD OF
THE PLANE FROM NEW YORK TO
WASHINGTON, DC (PURPOSE). I WILL BE
MORE COMFORTABLE, BETTER
TREATED, AND MORE VALUED (BENEFIT)
• WHEN I BUY INSURANCE FROM STATE
FARM INSTEAD OF FROM SOME OTHER
INSURANCE COMPANY (PURPOSE). I
WILL KNOW THAT A FRIENDLY STATE
FARM AGENT WILL BE AT MY SIDE IF I
NEED HELP (BENEFIT)
17
18. EXAMPLE OF BENEFITS
• PRACTICAL
• REWARDS WHICH COME FROM SAVINGS
TIME OR MONEY, OR EXPERIENCING GOOD
HEALTH
• SENSORY
• INTERESTING TEXTURE OR DELICIOUS
TASTE
• SOCIAL
• APPROVAL FROM FAMILY OR PEERS
• EGO-SATISFACTION
• PRIDE IN BEING A GOOD MOTHER, OR
FEELING OF ACCOMPLISHMENT FROM
18
19. WHEN BENEFITS OCCUR
• WHILE THE PRODUCT IS BEING
USED
• AFTER THE PRODUCT HAS BEEN
USED
• AS AN INCIDENTAL BY-PRODUCT
OF THE PRODUCT’S MAIN EFFECT
19
20. BENEFIT MATRIX--POTENTIAL
BENEFITS OF REAL CHEESE
POTENTIALLY
REWARDING
EXPERIENCES
PRACTICAL
IN-USE
EXPERIENCE
SENSORY
SOCIAL
EGOSATISFACTION
CONVENIENCE; NEW TASTE
KIDS CAN HELP FOR ROUTINE
THEMSELVES
FOODS
FAMILY WILL
BE GRATEFUL
I AM A GOOD
MOTHER
RESULTS-OFUSE
EXPERIENCE
STRONG BONES FEEL BETTER
OTHERS THINK
I LOOK GOOD
I AM TAKING
GOOD CARE OF
MYSELF
INCIDENTIALTO-USE
EXPERIENCE
LOW-COST
NUTRITION
ADDS VARIETY
I AM A GOOD
TO PARTY
COOK
REFRESHMENTS
NO MESS
20
21. SUPPORT
• LENDS CREDIBILITY TO THE
ADVERTISER’S PROMISE
• SUPPORT REFERS TO EVERYTHING
IN THE ADVERTISING THAT LENDS
CREDIBILITY TO THE
ADVERTISER’S PROMISE
• TWO TYPES OF SUPPORT
• INTERNAL AND EXTERNAL
21
22. INTERNAL SUPPORT
• PRODUCT OR INTELLECTUAL FACTS
• WHEN I TAKE AMTRACK INSTEAD OF THE PLANE
FROM NEW YORK TO WASHINGTON (PURPOSE). I
WILL BE MORE COMFORTABLE, BETTER TREATED,
AND MORE VALUED (BENEFIT) BECAUSE AMTRACK
PROVIDES WIDER SEATS, MORE LEG ROOM, BETTER
SERVICE, AND FREEDOM TO MOVE AROUND
(SUPPORT)
• DEMONSTRATIONS (SHOW BRAND AT WORK)
• LITERAL--SUFFER EXPERIENCE RELIEF ON SCREEN
• DRAMATIC--PART OF A PLAY--BUD LIGHT
22
23. EXTERNAL SUPPORT
• SUPPORT FOR THE PURPOSE OR
THE PROMISE OF THE
ADVERTISING CAMPAIGN
THROUGH THE USE OF:
• SALES PROMOTION
• PUBLIC RELATIONS PROGRAMS
• ADVERTISING INTENDED TO ELICIT
DIRECT RESPONSE
23
24. PROMISE VS SUPPPORT
• THE PROMISE IS THE MEANING TO
BE DRAWN FROM THE AD.
• PROMISE TO THE END
• THE SUPPORT IS THE MEANS BY
WHICH THAT PROMISE IS
CONVEYED.
• SUPPORT IS THE MEANS
24
25. WHERE TO LOOK FOR SUPPORT
• BACKGROUND MUST COME FROM
CONSUMERS
• PRODUCT TESTING
• CONSUMER SURVEYS
• USER THEMSELVES (i.e., WRITER OF
AD)
• MUST BE RELEVANT TO TARGET
• MUST OPERATE IN A COMPETITIVE
WORLD
25
26. ROI
•
RELEVANCE
• MESSAGE MUST BE RELEVANT--TO PRODUCT, TARGET,
AND SPECIFIC BEHAVIOR ADVERTISER INTENDED TO
PROMOTE
• ATTRIBUTE IS NOT SUPPORT FOR PROMISE UNTIL
CUSTOMER UNDERSTANDS HOW ATTRIBUTE MAKES
BRAND A BETTER SATISFIER OF NEEDS
•
ORIGINALITY
• NEEDS TO BE ORIGINAL TO ATTRACT ATTENTION--BREAK
THE PATTERN
•
IMPACT
• ABILITY TO BREAK THROUGH INDIFFERENCE AND FOCUS
ATTENTION UPON MESSAGE THE ADVERTISEMENT IS
INTENDED TO CONVEY
• INTRUSIVENESS--TWO SOURCES: MEDIA AND STRUCTURE
OF ADVERTISING MESSAGE--ELEMENT OF SURPRISE
26
27. LEGS
• IMPACT OF AN INDIVIDUAL
ADVERTISEMENT OR LONG-TERM
CAMPAIGN
• IDEA MAY YIELD EFFECTIVE
VARIATION--LONG WAY
• JOE GREEN COMMERCIAL
27
28. BRAND PERSONALITY
• DEFINTION
• CONSISTENCY OF TRAITS (DRESS, SPEECH, LOOKS,
HABITS, TRAITS THAT GO TOGETHER IN A MORE-ORLESS COHERENT WAY) AND PREDICTABILITY
(CONSISTENCY OVER TIME)
• BRAND
• SET OF ENDURING CONSUMER PERCEPTIONS WHICH
FORMS A BASIS FOR EXPECTATION OF BRAND
BENEFITS
• INTERNALLY CONSISTENT, TRAITS MUST FIT
TOGETHER, PACKAGE, PRICE, LOOK, SOUND, SMELL,
SIZE, NAME, COLOR, SHAPE--MUST HAVE A SINGLE
THEME
28
29. BRAND PERSONALITY--CONTINUED
• BRAND PERSONALITY
• SEPARATES THE BRAND FROM ITS COMPETITORS
• PREDICTS THE FUTURE EXPERIENCE WITH THAT
BRAND
• ROLE OF ADVERTISING
• BECOMES PART OF THE IMAGE AND TELL WHAT THE
BRAND IS
• BUSH BEER--HONEST, RUGGED, MANNLY
• STATE FARM INSURANCE--STRAIGHT-FORWARD,
WARM, A GOOD NEIGHBOR
• METROLINER--CIVILIZED, INVITING,
COMFORTABLE, CLEAN, DEPENDABLE, SAFE
29
30. MEDIA
• MEDIA
• WHAT MEDIA WILL MATCH THE PURPOSE OF THE
ADVERTISING?
• C.P.M. (COST PER THOUSAND IMPRESSIONS)
• WHAT MEDIA WILL DELIVER THE MESSAGE TO THE
TARGET AT THE LOWEST POSSIBLE COST?
• WHAT IS THE AVAILABILITY, REACH AND FREQUENCY,
AND NEGOTIATED COST PER THOUSAND
IMPRESSIONS THAT THE ADVERTISER CAN SPEND
WHICH WILL ACHIEVE THE PURPOSE--TO REACH THE
TARGET, COMMUNICATE BENEFIT(S) AND
SUPPORTING EVIDENCE?
30
31. APERTURE
• WHEN, WHERE, AND UNDER WHAT
CIRCUMSTANCES WILL THE TARGET BE MOST
RECEPTIVE TO THE MESSAGE
• WHEN THE RELEVANT DECISION GETS MADE
• MOTHER’S DAY, FATHER’S DAY, EASTER,
CHRISTMAS--ALL INCREASE INTEREST IN PRODUCTS
AND SERVICES APPROPRIATE FOR THOSE TIMES
• BREAKFAST EATERS THINK ABOUT WHAT TO HAVE
FOR BREAKFAST AT BREAKFAST TIME, AND ARE
LIKELY TO BE OPEN TO MESSAGE ON MORNING
RADIO
• PLACE WHERE THE DECISIONS GETS MADE
• UNDER WHAT CIRCUMSTANCES THE DECISION
31
GETS MADE
32. EXAMPLES OF APERTURE
• READING FASHION MAGAZINE, MAY MAKE
INTERESTED READER EVEN MORE
INTERESTED IN MESSAGES ABOUT EXERCISE,
DIET, MAKEUP, OR CLOTHES
• MICHELIN PLACED MESSAGES IN WEATHER
REPORTS ON CABLE TELEVISION’S WEATHER
CHANNEL. THE PREMISE WAS THAT DRIVERS
WHO ARE CONCERNED ABOUT THE WEATHER
MIGHT ALSO BE CONCERNED ABOUT
SECURITY, AND MIGHT THEREFORE BE
ESPECIALLY RECEPTIVE TO MESSAGES
CONCERNING MICHELIN TIRES
32
33. FIVE VENUES
• DEFINITION
• EACH VENUE REPRESENTS A
DIFFERENT RELATIONSHIP
BETWEEN THE ADVERTISED
PRODUCT AND THE SOURCE OF
BUSINESS--PRODUCT (MIGHT BE
BOUGHT OR USED INSTEAD)
33
34. VENUE ONE
• OBVIOUS SUPERIORITY
• FOCUS ON THE CUSTOMER--ROI
• EXPAND THE CATEGORY
• PREPARE FOR COMPETITIVE
RESPONSE
34
35. VENUE TWO
• MARGINAL SUPERIORITY
• LINKS BETWEEN MINOR PHYSICAL
DIFFERENCE AND MAJOR PSYCHOLOGICAL
NEEDS CAN PROVIDE DECISIVE
COMPETITIVE BENEFITS
• BUSH BEER--MINOR PHYSICAL DIFFERENCE
BETWEEN BUSH AND OTHER BRANDS IS THE BUSH
MOUNTAIN LOGO. WHEN LINKED WITH THE
NOTION THAT BUSCH GOES DOWN “SMOOTH AS A
MOUNTAIN STREAM.” THE LOGO SYMBOLIZES A
COMPETITIVE LEVERAGE FOR THE BRAND
35
36. VENUE THREE
• PERCEIVED INFERIORITY
• TARGET THOSE WHO INFLUENCE THE
BEHAVIOR OF OTHERS
• CORRECTION OF ERRONEOUS BELIEFS-UNDERSTANDING WHY THE BELIEFS ARE
STILL HELD
• THE TARGET IS NEVER EVERYONE, EVEN
THOUGH EVERYONE MAYBE WRONG
• AMTRACK--UNREALIABLE, UNCOMFORTABLE, AND
PROBABLY LATE
36
37. VENUE FOUR
• REAL INFERIORITY
• SEEK OUT AND STRIKE AT ANY WEAKNESS
OF THE OTHERWISE SUPERIOR BRAND
• ADVERTISING MUST STILL PROMISE A
COMPETITIVE BENEFIT. COMPETITOR’S
WEAKNESS IS NOT ENOUGH
• CAN NOT BE SOLD BY ADVERTISING ALONE
• THE BEETLE--DEPENDABLE AND
ECONOMICAL, AND WOULD NOT GO
OUT OF STYLE
37
38. VENUE FIVE
•
PARITY
• IMPORT
• FOCUS ON A MAJOR BENEFIT THAT THE BRAND DOES
NOT PROVIDE BEFORE THE ADVERTISING STARTS-THAN THE BENEFITS BECOMES TIGHTLY LINKED TO THE
BRAND AND IT BECOMES A PROPERTY OF THE BRAND
• BREAKFAST OF CHAMPIONS
• THE NIGHT BELONGS TO MICHELOB
• PREEMPT STRATEGY
• NON-EXCLUSIVE BENEFIT THAT THE BRAND ALREADY
PROVIDES IS MADE THE EXCLUSIVE PROPERTY OF
ADVERTISER’S BRAND
• LIKE A GOOD NEIGHBOR
• WE SELL NO WINE BEFORE ITS TIME
• SINGLE MINDED
• PERSONALITY
38
39. SUMMARY OF ROI
FIVE BASIC QUESTIONS
• WHAT IS THE PURPOSE OF THE ADVERTISING?
• TO WHOM WILL THE ADVERTISING BE
ADDRESSED?
• WHAT COMPETITIVE BENEFIT WILL BE
PROMISED, AND HOW WILL THAT PROMISE BE
SUPPORTED?
• WHAT PERSONALITY WILL DISTINGUISH THE
BRAND?
• WHEN, WHERE AND UNDER WHAT
CIRCUMSTANCE WILL THE TARGET BE MOST
RECEPTIVE TO THE MESSAGE? AND, WHAT
MEDIA WILL DELIVER THAT MESSAGE TO THAT
TARGET AT THE LOWEST POSSIBLE COST?
39
40. Problem--Multiple Vitamin Supplements
•
Multiple vitamin supplements make up a large, well-established market
with a substantial number of different brands and manufacturers. The
market also displays a wide variety of marketing approaches even
though the products themselves are largely homogeneous in physical
characteristics. The differences in marketing approaches revolve around
the choice of distribution channel. There are five different marketing
approaches that are currently in use. They are:
Mail Order—vitamins offered through catalogs mailed directly to prospective
consumers. Price to the consumer is low.
Proprietary—vitamins sold through retail drug, food, and discount stores and
advertised to consumers by the manufacturer. Retail price is high.
Ethical—vitamins sold through drugstores and sold to consumers based on
recommendations from doctors or druggists. Retail price is high.
Door-to-Door—vitamins sold directly to consumers in their home by
salespeople of the manufacturer. Price to consumers is high.
Private Label—vitamins sold to druggists for resale under the druggist’s own
label to consumers. Retail price is low.
Even if it is assumed that the product under each marketing approach is the same,
the advertising effort will vary substantially because of differences is price and
distribution channels.
For each marketing approach:
1)
will the amount of advertising tend to be high or low compared to the other
alternatives?
2)
what will be the task of advertising?
40
41. Multiple Vitamin Supplements
Approach
Distribution
Price
Task of
Advertising
Amount of
Advertising
Mail Order
Direct to consumer Low
by mail
Make direct sales
High—no other
selling expense
Proprietary
Through retailers
by “pulling”
High
Develop brand
preference
through retail
outlet
High—must
overcome lack of
retail selling effort
Ethical
Through retailers/
Physician
recommendation,
push
High
Get
recommendations
and prescriptions
Low—narrow
target, high retailer
margins
Door-to-Door
Direct to consumer High
by personal selling
Get sales agent
into the home
Low—funds
devoted to selling
commissions
Private Label
Through retailers
Price
Comparisons
Low
Low—margins
narrow due to low
41 price
45. Comparing Advertising Media
Media
Media
Television
Television
& cable
& cable
Direct
Direct
mail
mail
NewsNewspaper
paper
Radio
Radio
2004
2004
spend.
spend.
(billions)
(billions)
$67.8
$67.8
$52.2
$52.2
$46.6
$46.6
$19.6
$19.6
2-year
2-year
%
%
growth
growth
Advantages
Advantages
Disadvantages
Disadvantages
25.3%
25.3%
Demonstrates well,
Demonstrates well,
good attention, wide
good attention, wide
reach
reach
Expensive in total,
Expensive in total,
“clutter,” and less
“clutter,” and less
selective audience
selective audience
16.8
16.8
Selected audience,
Selected audience,
flexible, can
flexible, can
personalize
personalize
Relatively costly per
Relatively costly per
contact, “junk mail,”
contact, “junk mail,”
hard to retain attention
hard to retain attention
5.9
5.9
Flexible, timely, local
Flexible, timely, local
market
market
May be expensive,
May be expensive,
short life, no “pass
short life, no “pass
along”
along”
9.5
9.5
Weak attention, many
Weak attention, many
Wide reach, low cost
Wide reach, low cost different rates, short
different rates, short
segmented audience
segmented audience exposure
exposure
55. Sales Promotion Tactics
Consumer-directed
•
•
•
•
•
•
•
•
•
Samples—offer of a free amount of
a product or service.
Coupons—certificates entitling the
bearer to a stated saving on the
purchase of a specific product
Cash refund offers—provide a
price reduction after purchase
Price offs—offers to consumers of
saving off the regular price of a
product
Premiums—merchandise offered
at a relatively low cost or free as an
incentive to purchase a product
Prizes—offers of the chance to win
cash, trips, or merchandise as a
result of purchasing something
Patronage rewards—values in
cash or in other forms that are
proportional to patronage
Free trials—inviting prospective
purchases to try a product
Tie-in promotions—two or more
brands or companies team up on
coupons, refunds, and contests to
increase pulling power
Trade-directed
•
•
•
•
•
•
•
Price offs—straight discount off the
list price on each case purchased
during a stated time period
Allowances—amount offered in
return for the retailer’s agreeing to
feature the manufacturer’s products
in some way—advertising or special
product display
Free goods—offers of extra cases of
merchandise to intermediaries who
buy a certain quantity or who feature
a certain flavor or size
Sales contests—aims at inducing
the sales force or dealers to increase
their sales results over a stated
period, with money or prizes, etc.
Spiffs—sales performance Incentive
Trade shows—industry associations
organize annual trade shows and
conventions
Specialty advertising—useful, lowcost items bearing the company’s
name and address, etc.
18-55
Summary Overview
This exhibit compares the characteristics of several types of media. Note how their advantages and disadvantages vary.
Key Issues
Television provides a way to demonstrate products and is a good medium for getting attention. Television also offers wide reach. Disadvantages include expense, competition among lots of ads--“clutter”--and less-selective audiences
Direct mail is very flexible, can be personalized, and is very selective. Disadvantages include expense per contact, “junk mail” image, and difficulty retaining attention.
Newspapers offer flexibility, timely placement, and good local market coverage. Some disadvantages are expense (for some markets), short life, and no “pass along” readership.
Radio offers wide reach, low cost, and it appeals to highly segmented audiences. Disadvantages include weak attention, short exposure, and varying rates.
Summary Overview
This exhibit compares the characteristics of several types of media. Note how their advantages and disadvantages vary.
Key Issues
Yellow Pages reach local customers who are seeking purchase information. However, competitors are also listed there and differentiation is difficult.
Magazines are very targeted, provide good detail and excellent graphics, have high “pass-along” rates, and long shelf life. Disadvantages include inflexibility and long lead times.
Internet. Internet ads link to more detailed website information, some with “pay for results” offers to the advertiser, but it’s difficult to compare total costs with other types of media.
Outdoor advertising is flexible, inexpensive, and offers repeat exposures. However, exposure is very short and there is a lack of market segmentation.
Summary Overview
Sales promotion includes those activities other than advertising, publicity, and personal selling that are designed to stimulate interest, trial, or purchase by final customers or others in the channel. Sales promotion typically seeks an immediate response.
Key Issues
Sales promotions can be launched quickly and lead to immediate results. However, the sales promotion objectives and the particular situation should influence the decision about which type of promotion to use.
This exhibit shows three ways that a short-term sales promotion might affect sales.
First sales pattern: a firm issues coupons to help clear excess inventory. Some consumers might buy in advance “stockpile” to take advantage of the coupon, but unless they use more of the product, their next purchase will be delayed.
Second pattern: consumption increases during a limited-time promotion, but when the promotion ends, sales go back to normal.
Third pattern: free samples of a product pull in new customers who like the product and keep coming back. This pattern is the kind of long-term result that is the aim of effective sales promotion.
More companies are using a greater percentage of their promotion dollars on sales promotion. Sales promotion spending has grown in mature markets, where tough competition requires extra incentives to sell.
Discussion Question: Think about a freestanding coupon insert in a newspaper, or a direct-mail packet containing coupons. In what stage of the product life cycle (introduction, growth, maturity, or decline) are most of these products?