advertising and sales promotion

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ADVERTISING VINCENT C. CORTIÑAS College Instructor Lyceum of the Philippines

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Page 1: Advertising and sales promotion

ADVERTISINGVINCENT C. CORTIÑAS

College InstructorLyceum of the Philippines

Page 2: Advertising and sales promotion

INTRODUCTION

The word advertising comes form the latin word "advertere”. That means "to turn the mind toward"

Advertising is a form of communication for marketing and used to encourage, persuade or manipulate an audience (viewers, readers or listeners; sometimes a specific group) to continue or take some new action.

According to American Marketing Association “advertising is any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor".

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Advertisement means spreading of information. The main purpose of every commercial organization is to promote sales. Any activity towards sales promotion may be called as

promotional activity & advertisement is a kind of PROMOTIONAL ACTIVITY.

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MISSION -sales goods

-advertising objectivesMESSAGE-Message generation-Message evaluation-Message execution

MEDIA-Reach, frequency-Major media types

-Specific media vehicles-Media timing

-Geographical media allocation

MONEY-stage of PLC-market share-competition

-Advertising frequencyMeasurement

-Communication -Sales impact

Developing the Advertisement

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Integrated Marketing Communication

advertisingsales

promotion

direct marketing

personal selling

public relations

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Sales Promotion

“Experts redefine hair for Filipina women”Public Relations

Amway, Tupperware, Eureka Forbes…Direct MarketingA salesperson at a counter for Nokia,

in a mall Personal Selling

A complimentary air ticket with every credit card Sales

Promotion

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Defining advertising Target

Advertising OBJECTIVES

Setting the Advertising

BUDGET

DevelopingStrategy

Selecting Media

Advertising Effectiveness

ADVERTISING MANAGEMENT

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ADVERTISING TARGETThe advertising target is the audiences, towards whom the ad targeted.Sometimes this target encompasses the entire target market.In other cases it includes only a subset of target market.

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ADVERTISING OBJECTIVESThe basic objective of

advertisement is effective communication between

producers and consumers. Some following objectives are:

Preparing ground for new productCreation of demandFacing the competitionCreating and enhancing goodwillInforming the changes to the customersNeutralizing the competitor’s advertisement

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ADVERTISING BUDGET-It’s a component of the total promotion budget, must be allocated among markets, brands & media.-Under this system, brands in the introductory stage would receive more funds than those in the maturity stage.There is 5 factors are consider for setting the budget

Product life cycle stage

Competition & clutter

Advertising frequency

Product substutability

Market share & consumer

base

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ADVERTISING STRATEGY1. Selects

an appeals

2. Formulates the ad

concepts

3. Develops the ad

elements

4. Provides technical

direction & production

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selecting an appeal

An appeal is the basic idea the advertiser wants to communicate to the advertising target. Marketing research and creative institution are often combined to come up with an appeal.

formulated the ad concept

Once an appeal is selected the next step is formulate the ad concept. Its a method where determine how an appeal is transformed into a message.

developing the ad

The technical terms for the various parts of an ad vary among media but the parts perform roughly the same function. It must be attract attention & develop interest so the reader will look at the rest of the ad.-illustration should also attract attention, communicative. –copy usually expands on the idea & illustration & provides facts, anticipation. –signature is a trademark/slogan states that who is sending the message.

Providing technical direction

Layout basically is print media or location advertising term. It’s a actual arrangement of its various parts to form a cohesive unit. Marketers rely on a technical personnel for layout works.

Contd….

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Headline

signature

Copy

Illustration

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MEDIAIn advertising, mass communication channels are

called advertising media, like- newspaper, magazine, radio, TV .etc.

ADVERTISING

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ADVERTISING MEDIA

the major type of advertising media are- print, broadcast, direct, location.

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Major Types ofPrintAdvertising

LOCATION Advertising

Broadcast Advertising

DIRECTAdvertising

Advertising Media

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PRINT MEDIAMore information can be

communicated more accurately through print media than others. Most magazines

are national & are published monthly.

The major type of print media are NewspaperMagazinesBrochures

Fliers

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BROADCAST MEDIARadio & TV are broadcast media. Whereas advertiser buy space in print media, they

buy time on broadcast media.Television, the fastest growing medium, also reaches practically all homes. TV ads

generally have the greatest impact because they stimulate both sight and

hearing & advertiser can show their product in use.

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LOCATION ADVERTISING MEDIA

Location advertising media include outdoor & transit advertising.

Outdoor advertising, format range from poster panels to electric spectaculars. Poster

panels are permanent structures on which printed paper is glued.

Transit advertising, firms rent space on bus, cab, subways, & commuter trains. Rates are

usually quoted on a monthly basis.

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DIRECT ADVERTISING MEDIAMarketers try to communicate directly with

potential customers when they use direct advertising media like Direct mail, mail order,

and un-mailed direct media.Direct mail & mail order, can have a

format of any size or shape that is unbound.

Un-mailed direct , includes Leaflets & Booklets that are distributed door-to-

door or in parking lots.

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Advertiser should try to measure the communication effect of an ad-that is, its potential effect on awareness, knowledge, or preference- as well as the ad sells effect:Communication effect research, seeks to determine whether an ad is communicating effectively.Sales effect research, is complex because sales are influenced by many factors beyond advertising, such as features, price & availability, as well as competitors actions.

ADVERTISING EFFECTIVENESS

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SALES PROMOTION

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SALES PROMOTIONincludes activities that seek to directly induced, or indirectly

serve as incentives to motivate, a desired response on the part of

target customer.

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Sales promotion management includes:

Sales Promotion Target - the audience to whom a particular sales promotion is directed.

• Coupons• Cent-off offers

• Samples• Money refund

• Premiums• Contest

• Exhibition• Additional product

deals

• Sales meeting & auxiliary sales materials• Sales contest

• Point-of-purchase display• Trade show

• Special service• Dealers contest & premium

Directed to customers Directed to the

firm’s own sales force

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Sales promotion objectives- sales promotion objectives are derived from the

marketer’s overall promotion objectives.Sales promotion budget: setting the overall promotion budget is to determine the desired mix of advertising & sales promotion.Develop sales promotion strategy:

numerous decisions are necessary in developing a sales promotion strategy. For ex: a

company must decide on how much coupon will reduce the retail price of a product.

Sales promotion management includes:

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Select Sales promotion method: a company must select the tools develop the program, pretest the program, implement & control it, & evaluate the result.

Major Consumer-promotion tools:SamplesCouponsCash refund offers/ cash back offersPrice packsPremiumConsumers contestPrizes (contest, sweepstakes, games)Free trailsProduct warranties .etc.

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Major trade-promotion tools:Price-offAllowanceFree goods (sorce:”Trade promotion Redefined”,Brandweek,1995)

Major business & sales force-promotion tools:

Trade shows & conventionsSales contestSpecialty advertising

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References :

Kotler Philip, “THE FRAMEWORK FOR MARKETING MANAGEMENT”, 5th Edd. , 2002. India

William F. Schoell, “MARKETING- CONTEMPORARY CONCEPTS & PRACTICES”,10th Edd. , 1990, Allyn And Bacon, INC. Boston.