Professional Documents
Culture Documents
Chapter 10
Sales Promotion
Includes activities such as coupons, samples, cents-off, etc. Are short-term actions designed to get immediate responses from consumers, wholesalers and retailers Sales promotion to wholesalers and retailers are offered with the hope that they will push the product consumers or buyers These actions get quick response but have their drawbacks May result in stockpiling of the brand by wholesalers and retailers . The overall level of sales does not change May induce trail but do little to enhance long-term brand loyalty
Advertising is a deposit to brand equity bank, whereas sales promotion activities are a withdrawal
Advertising
Advertising that communicates unique and positive message can differentiate the brand from competitive offerings and help insulate the brand from price communication Of various promotion activities, advertising is clearly the most visible Advertising is mainly used as a pull strategy
Relevance
Implement
Evaluation
Advertising Objectives
1. 2. There are two basic reasons to establish objectives to advertising programs Advertising objectives can provide guidance for development and media decisions Objectives serve as standards for evaluating the performance of advertising program Unless managers have defined what advertising effort is designed to achieve, there will be no fairway to evaluate the results Advertising strategies can serve many functions Can be used to inform consumers, persuade consumers, and/or to remind consumers Advertising programs are designed to move consumers from the point where they are unaware of the brand to trail and repeat purchase
Interest
Interest Knowledge Liking Desire Preference Conviction Evaluation Interest
Action
purchase
Trail
Adoption
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Hierarchy of Effects
The Three models can be classified at three levels Cognitive level: indicate receipt of the message .Exposure to message Message recall Awareness of product Knowledge of product attributes Affective responses: indicate the development of liking Willingness to seek more information Interest in product attributes Favorable evaluation of the product Behavioral responses: indicate the actual actions taken by the members of the target market Product trail Product purchase
A hierarchy model of how advertising works Brand Loyalty Attitude Reinforcement Beliefs Brand Equity Brand/ Company Image
Trail
Expectation Awareness Unawareness
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Over the long run advertisement should help in achieving sales, market share, and profit objectives Sales and profit are generally inappropriate objectives atleast in the short run Reasons: Sales respond rather slow to advertisement Most advertisement must be seen more than once before message is received and acted upon Changes in sales and market share are often influenced by environmental factors and competitive actions What advertisement can do: Help implement the marketing strategy Establish advertising objectives to guide the selection of the messages and media Permit program performance to be evaluated Make a specific contribution to achievement of marketing strategy
Types of Objectives
Advertising objectives must include precise statement of what is expected communication objective: Who, What, When: Who relates to audience or target market at whom the message will be aimed What relates to the effect to be achieved awareness, attitude change, reminder When relates to the time period during which the object should be obtained Example: The advertising objective for new product launch might be stated as: Within three months of the product launch we expect 75 percent of the target market to be aware of the product. To be useful objective must be realistic, to be stated in quantitative terms
Types of Objectives
The advertising objectives provide a foundation for subsequent advertising decisions Therefore advertising objective should be designated before specific decisions of the advertising program ( type of message, and media) are made The major reason s why advertising objectives should precede other program decisions include 1. Advertising objectives reflect the consensus of management concerning what the advertisement should do for the brand 2. Stating the objectives help set the advertising budget 3. The objective provide standard against which the result can be compared
Types of Objectives
It is possible to achieve more than one objective during a given campaign although this can be very difficult and costly Each objective is generally more useful in implementing a particular type of marketing strategy For the same product there may be different advertising objectives for different customer group Obtaining trail for a particular product or brand may be the objective for non-users and/ or new entrants into market For present users, the objective might be to stimulate demand for an entire product class or for a particular brand If more than one objective is employed it is important to make certain that various objectives are compatible with marketing strategy
Types of Objectives
1. Generating awareness 2. Reminding buyers to use 3. Changing attitudes about the use of the product form 4. Changing perceptions about the importance of brand attributes 5. Changing beliefs about brands 6. Reinforcing attitudes 7. Building corporate and product line image 8. Obtaining a direct response
I. Awareness: The primary advertisement objective is simply to generate or increase recognition of brand name, brand concept or information regarding where or how to buy a product This is an important objective in several different situations 1. When brand enters the market, buyers will often find it difficult to develop an attitude if the brand and basic product concept are not known
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Awareness of the brand and the basic concept must exist before favorable attitude towards the brand could be developed Managers should also apply awareness objectives when customers need to know how to buy, or how to get more information about a product Consumer products with highly selective distribution system need emphasis on this aspect, especially if competitive brands have intensive distribution Awareness and brand recognition are essential objectives in marketing low perceived risk products, where minimum search is involved. Brands that most widely recognized will tend to have the largest market share
II. Reminder to use: For discretionary items with regular usage patterns, an appropriate marketing strategy may be to stimulate primary demand by increasing the rate of usage The primary role of advertising in implementing the strategy is to remind the buyers to use the product or restock the product The purchase may decline because the product is highly discretionary and consumer has no ready stock to act as a reminder to use the product
III. Changing attitudes about the use of the product form The objective is designed to support primarydemand strategies that attract new users or increase the number of uses Advertising programs to implement these strategies usually take one of two forms 1. Advertising campaigns may demonstrate new ways to use products or new usage occasions 2. Some advertising campaigns have been designed to overcome negative perceptions about product categories
IV. Changing perceptions about the importance of brand attributes An effective way to acquire new customers through differentiated positioning is to advertise a unique selling proposition For an attribute to be determinant in buyers choice process the attribute must: be important buyer must perceive alternative differ in degree to which they possess the attribute If a brand has a unique attribute, advertising may be used to stress the importance of attribute to make it determinant
V. Changing Beliefs about Brands If an attribute (benefit) is already important, buyers will examine the degree to which each alternative brand possesses that attribute The advertising objective would be to improve buyers rating of a brand on important attributes or to change the relative rating of competitive brands on the attribute As the attribute is not unique to a brand, advertising designed to demonstrate this relative superiority would be supporting marketing strategy of head-to-head competition
VI. Attitude Reinforcement Brands with strong market position and with no major competitive weaknesses are more likely to be concerned with customer retention strategies By assuring customers that the brand continues to offer greatest level of satisfaction on the most important benefits, advertising can reinforce attitudes and maintain brand preferences and loyalty VII. Corporate and Product line Image Building Advertising is used to establish or change perceptions of organizations or broad product lines, but without focusing on specific product attributes or benefits VIII. Obtaining a direct response In direct marketing the organization communicates directly with target customer with the objective of generating direct response or a purchase
Message Design and Media costs Given an advertising objective, a manager can estimate Message development cost: - Production costs, technical fees, royalties to participants) Media costs - Print space, radio or television time Media costs are influenced by Size of target market The size and length of the advertisement The number of times the advertisement is presented Specific cost of each media vehicle
Design
1. The advertising message includes two basic elements The appeals: copy claims that represent the central idea of the message and 2. Method of presentation (execution style) Contents of an effective message: Three major requirements of effective message are; desirability, exclusiveness, and believability Desirability and exclusiveness are firms means to emphasize those determinant attributes that provide an advantage If desirability is a problem , the usefulness of the product in solving the problem be portrayed Exclusiveness may be demonstrated through comparison (direct or indirect) once the real and perceived differences are known Believability: important in situations where product benefit or attribute is difficult to demonstrate or highly subjective or it requires a major change in usage pattern
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The advertising objective should clearly state the: Specific feature that generate buyer awareness or The specific attributes or benefits on which perception are to be changed or reinforced Some objectives may focus on exclusiveness , whereas others may focus on believability Given the objectives copy could be prepared that will support the desirability, exclusiveness or believability of the attribute and benefit being featured In developing copy the type of brand concept involved must be considered. Products can be classified in terms of one of the following needs Functional needs: products that resolve consumption related problems Symbolic needs: products that fulfill internally generated needs such as self enhancement or ego identification Experiential needs: products that provide sensory pleasures, variety or other kinds of stimulation
Execution style
Style in which copy claims are presented to target audience Common execution styles: Symbolic association Provides means of dramatizing intangible benefits by associating the product or service with certain type of individuals or a tangible object Functional benefits can be communicated in a variety of ways Testimonials Product demonstrations or recipes Slice of life: portraying buyers in problem solving situations Case histories: documenting the benefits of a product Humor Fear
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Media Scheduling
Media scheduling decisions are extremely important for two reasons: Purchase of radio and television time, magazine and newspaper space represent the largest element of cost in the advertising budget An advertisements success in achieving the advertising objectives depends largely on how well each show or magazine reaches target market segment The major steps involved in developing media schedule are: Selecting the type of medium to use Selecting specific vehicles for consideration Determining the size, length, and position of an advertisement Determining desired reach, frequency, and distribution of message
Media Objectives
For a given planning period, advertising expenditures can be distributed as: 1. According to the timing of the expenditures 2. According to reach and frequency 1. Timing of Expenditures: Timing reflects the manner in which expenditures are distributed over the course of planning period Managers can schedule advertisement so that bulk of the dollar expenditures coincides with the peak sales period There are three alternatives to the timing of the message: i. Continuous schedule: allocate approximately equal amount of money for each time period ii. Pulsing schedule: size can change each month iii. Flighting schedule: similar tp pulsing but some periods may not receive funds
2. Measuring Reach and Frequency Reach is the percentage of target market that is exposed to advertising in some defined time period (4 weeks) Frequency is the average number of times a member of the target audience is exposed to the message at-least once in four weeks If an advertiser places an ad in a magazine that is published every 4 weeks and only has one ad in each issue. The reach would be the number of people reading the magazine and frequency is one In case where advertiser uses multiple media:
An ad for the product on two prime time television shows The audio version of the commercial during drivetime radio An ad is placed in the major Newspaper Reach is the probability that person will be exposed to the message atleast once through one of the vehicles Frequency is the average number of times a person is exposed to the message Example: if commercial is aired in your favorite program every Saturday for a four week period and you watched the program all four weeks the frequency is four
When multiple media are used, frequency is estimated as the average number of times an individual is exposed to the message Example : if 40% of the target audience is reached once, 30 % is reached twice, and 10% were reached three times, 80 % of the target market were and average frequency would be reached ( .4 x1) +( .3 x 2) + (1x3) = 1.63 .80 > 80% of the target population would be exposed message an average of 1.63
Advertising reach and frequency easily defined but in practice are complicated to calculate Probability distributions are needed to indicate the likelihood that a member of the target market will be exposed to the message Computerized models for estimates of reach and frequency are utilized
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