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Advertising andSales Promotion

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When you finish this chapter, you should

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Chapter 16 Objectives

1. Understand why a marketing manager sets specific objectives to guide the advertising effort.

2. Understand when the various kinds of advertising are needed.

3. Understand how to choose the “best” medium.

4. Understand the main ways that advertising on the Internet differs from advertising in other media.

5. Understand how to plan the "best" message—that is, the copy thrust.

6. Understand what advertising agencies do—and how they are paid.

7. Understand how to advertise legally.

8. Understand the importance and nature of sales promotion.

9. Know the advantages and limitations of different types of sales promotion.

10. Understand the important new terms.

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Irwin/McGraw-Hill

Exhibit 16-116-3

Strategy Planning for Advertising

SalesPromotion

Mass Selling

PersonalSelling

Target Market

PricePricePromotionPromotionPlacePlaceProductProduct

Copy thrustMedia typesKind of advertising

Target audience

Who will do the work?

PublicityAdvertising

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Irwin/McGraw-Hill

Introduce New Products

Position Brands

Obtain Outlets

Ongoing Contact

Support Sales Force

Get Immediate Action

Maintain Relationships

Strategy Decisionsin Setting AdvertisingObjectives

16-4

Setting Advertising Objectives

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Reminder

Pioneering Competitive

Kindsof ProductAdvertising

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Kinds of Advertising

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Yellow Pages

Outdoor

Internet

Magazine

Television

Direct Mail

Radio

Newspaper

Major Kinds of Media

Choosing Media

16-6

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Many Forms

Seek Direct Response

More Exposure

Better Targeting

Context Ads/Pointcasting

Pay for Results

????????????????????????????????????????????????????????????

Advertising on the Internet

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Get Attention

Hold Interest

Arouse Desire

Obtain Action

Planning the Message

16-8

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Build Upon What WorksBuild Upon What Works

Research and TestingMay Improve Odds

Research and TestingMay Improve Odds

Consider the Total MixConsider the Total Mix????????????????????????????????????????

Measuring Advertising Effectiveness

16-9

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Issues in Managing Sales Promotion

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+Growth

+

-ErodesBrand Loyalty

-

-Hard to Manage

-

Positives

Negatives

+Immediate

Results+

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Possible Effects of Sales Promotion

Exhibit 16-6A

Sales temporarily

increase, then decrease, then

return to regular level

Period of promotion

Unit Sales

Time

16-11

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Possible Effects of Sales Promotion

Sales temporarily increase and

then return to regular level

Period of promotion

Unit Sales

TimeExhibit 16-6B16-12

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Irwin/McGraw-Hill

Possible Effects of Sales Promotion

Sales increase and then remain

at higher level

Period of promotion

Unit Sales

TimeExhibit 16-6C16-13

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Irwin/McGraw-Hill

Institutional AdvertisingProduct Advertising

PioneeringCompetitive

Direct TypeIndirect TypeComparative

ReminderAdvertising AllowancesCooperative AdvertisingCopy ThrustAdvertising AgenciesCorrective Advertising

Key Terms

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