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ADVERTISING

Learning Objective To understand advertising.To understand advertising.

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The best advertising The best advertising is done by satisfied is done by satisfied customers.customers.

Kotler on Marketing

Marketing Communications Mix

Advertising

Public Relations and Publicity

Sales Force

Direct and Interactive Marketing

Word-of-Mouth

Events and Experiences

Sales Promotion

Vodafone’s ZooZoo Ad Campaign

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According to popular Advertising Theory, It takes According to popular Advertising Theory, It takes a minimum of nine repetitions before the a minimum of nine repetitions before the consumer actually considers your ad seriously and consumer actually considers your ad seriously and wonder if it amounts to anything. By 13wonder if it amounts to anything. By 13thth time, he time, he thinks what you advertising is good thing. By 14thinks what you advertising is good thing. By 14thth time that he sees the same ad, he remembers he time that he sees the same ad, he remembers he wanted such a thing a long time. By 19wanted such a thing a long time. By 19thth time, he time, he counts his money carefully and counts his money carefully and by 20by 20thth time that time that he sees the ad, he goes and buys the articlehe sees the ad, he goes and buys the article

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Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

Advertising is a public notice meant to Advertising is a public notice meant to convey information and invite patronage convey information and invite patronage or some other responseor some other response..

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Developing Advertising Programs

Buyer Motives

Social

Psychological

Economic

The Five M’s of Advertising

Advertising ObjectivesPersuade

Remind

Inform

Reinforce

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INFORMATIVE

A giant UA giant UAgency: O&MAgency: O&MReasons: Reasons: Signature of mother brand UnileverSignature of mother brand UnileverU means Youu ( Indian Consumer)U means Youu ( Indian Consumer)

Canara BankCanara BankAgency: O & MAgency: O & MBase Line: We all change for our loved onesBase Line: We all change for our loved ones

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Persuasive Tata TeaTata Tea Agency: LoweAgency: Lowe Base Line: Har Subah basUtho Mat, Jaago ReBase Line: Har Subah basUtho Mat, Jaago Re

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Reminder Aviva Life InsuranceAviva Life Insurance

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Reinforcement

Automobile ads often depict satisfied customers enjoying special features of their new car.

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Advertising

Advertising types

Brand-building

Tactical-Direct response

National

Public service Selective-demand

Corporate

Advocacy

Primary-demandRetail

B2B

Trade

…

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Other Objectives…. To incresae salesTo incresae sales To support sales forceTo support sales force To enter new marketsTo enter new markets To counteract competitionTo counteract competition To introduce new productsTo introduce new products To build imageTo build image To fight prejudicesTo fight prejudices

Purple Cow

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Profile of Major Media TypesMedium Advantages Disadvantages

Newspapers Flexibility; timeliness; local; believability

Short life; small “pass-along”; reproduction

TelevisionMultiple senses; appealing; high attention; high reach

High absolute cost; clutter; fleeting exposure; less audience selectivity

Direct Mail Audience selectivity; flexibility; personalized

Relatively high cost; “junk mail” image

Radio Mass use; high selectivity; low cost

Single sense; passive; fleeting exposure

Profile of Major Media TypesMedium Advantages Disadvantages

MagazinesHigh selectivity; high quality; credibility and prestige; long life

Long lead time; waste in circulation

OutdoorFlexibility; low cost; high repeat exposure; low competition

Low audience selectivity; creative limitations

Yellow PagesExcellent local coverage; high believability; wide reach; low cost

High competition; long lead time; creative limitations

InternetHigh selectivity; interactive possibilities; low relative cost

Increasing clutter

Alternate Advertising Media

Billboards

Public Spaces

Product Placement

Point of Purchase

Place Advertising

BillboardsBillboards Public spacesPublic spaces Product placementProduct placement Point-of-purchasePoint-of-purchase

What is Sales Promotion?

Sales promotions consist of a collection of Sales promotions consist of a collection of incentive tools, mostly short term, incentive tools, mostly short term,

designed to stimulate quicker or greater designed to stimulate quicker or greater purchase of particular products or purchase of particular products or services by consumers or the trade.services by consumers or the trade.

Definition…

Sales promotions action focused marketing events whose purpose is to have a direct impact on the behavior of the firm’s customers

Sales PromotionShort term

Stimulate Sales

How does it differ from Advertising?

Sales PromotionShort-term focus - immediate responseQuick salesHelps boost market share

AdvertisingLong-term focusImage building positioning

Sales Promotion used by Dainik Bhaskar

As per the scheme a customer needed to pay Rs. 200 in advance for a yearly subscription and on that too a gift worth Rs. 100 was assured. That means the customer was paying only Rs. 100 for the yearly subscription, around 28 paise per copy. This strategy made the difference and the company was able to book 1,86000 copies prior to the launch.

Sales promotion tools

Sales Promotion TacticsConsumer-directedConsumer-directed SamplesSamples CouponsCoupons Cash refund offersCash refund offers Price offsPrice offs PremiumsPremiums PrizesPrizes Patronage rewardsPatronage rewards Free trialsFree trials Tie-in promotions Tie-in promotions

Trade-directedTrade-directed Price offsPrice offs AllowancesAllowances Free goodsFree goods Sales contestsSales contests SpiffsSpiffs Trade showsTrade shows Specialty advertisingSpecialty advertising

Coupons…

Certificate entitling the bearer to a stated saving on the purchase of specific product. Can be mailed, attached to other products, inserted in magazine and newspaper ads.

Samples

Allowing the Customer to Experience the Product or Service.

Very Effective Strategy for Introducing A New or Modified Product.

Most Common Method of DistributingSamples is Through the Mail.9 Out of 10 Customers Prefer a SampleTo a Cents-Off Coupon to IntroduceProduct.

Contests/Sweepstakes

Contests/Sweepstakes…

Contests

Compete for a Prize BasedOn Some Skill or Ability

Generates High DegreeOf ConsumerInvolvement

Can Help ReviveLaggingSales

Sweepstakes

Participants Submit NamesTo Be Included in Drawing

Game – Type of Sweepstakes;Time Frame MuchLonger

Contests/Sweepstakes…

POP

Cent Off Deals (Price Packs)

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Major Business-and Sales-Force-Promotion Tools

Trade Shows and Conventions: Trade Shows and Conventions: Industry associations organize annual trade Industry associations organize annual trade shows and conventions. Business marketers may spend as much as 35 shows and conventions. Business marketers may spend as much as 35 percent of their annual promotion budget on trade shows. Over 5,600 trade percent of their annual promotion budget on trade shows. Over 5,600 trade shows take place every year, drawing approximately 80 million attendees. shows take place every year, drawing approximately 80 million attendees. Trade show attendance can range from a few thousand people to over 70,000 Trade show attendance can range from a few thousand people to over 70,000 for large shows held by the restaurant or hotel-motel industries. Participating for large shows held by the restaurant or hotel-motel industries. Participating vendors expect several benefits, including generating new sales leads, vendors expect several benefits, including generating new sales leads, maintaining customer contacts, introducing new products, meeting new maintaining customer contacts, introducing new products, meeting new customers, selling more to present customers, and educating customers with customers, selling more to present customers, and educating customers with publications, videos, and other audiovisual materials.publications, videos, and other audiovisual materials.Sales Contests:Sales Contests: A sales contest aims at inducing the sales force or dealers A sales contest aims at inducing the sales force or dealers to increase their sales results over a stated period, with prizes (money, trips, to increase their sales results over a stated period, with prizes (money, trips, gifts, or points) going to those who succeed.gifts, or points) going to those who succeed.

Selecting Business-and Selecting Business-and Sales-Force-Promotion ToolsSales-Force-Promotion Tools

Balancing sales promotion: How much is too much?

Direct marketing One-to-one approach One-to-one approach

that uses advertising that uses advertising media to produce an media to produce an inquiry, a transaction inquiry, a transaction and some other and some other immediate responseimmediate response

No intermediary No intermediary between manufacturer between manufacturer & customer& customer

Requires a databaseRequires a database

Direct mail

Direct response TV/radio

Mail-order catalogues

Internet

Telemarketing…

Tools

Direct marketing

Publicity Non-personal Non-personal

communication by communication by third-party sources third-party sources regarding an regarding an organization’s organization’s productsproducts

Tools Tools Press releasesPress releases Press conferencesPress conferences Special eventsSpecial events Opinion pollsOpinion polls InterviewsInterviews Contests Contests Weblog writeups…Weblog writeups…

PUBLIC RELATIONS

• A public is any group that has an actual or potential interest in or impact on a company’s ability to achieve its objectives. Detailed explanation/demonstration of product.

• Public relations (PR) involve a variety of programs designed to promote or protect a company’s image or its individual products

Public relations Positively influencing Positively influencing

public opinion to public opinion to build goodwill, and build goodwill, and earn appreciation and earn appreciation and acceptanceacceptance

May result in publicityMay result in publicity

ToolsTools Publicity toolsPublicity tools Community affairsCommunity affairs Events and Events and

conventionsconventions Corporate advertisingCorporate advertising Lobbying…Lobbying…

The publics of PR

Publicity/PR