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Chapter 19

Chapter 19. Managing Advertising,. Sales Promotion. and Public Relations. Marketing Management Tenth Edition Philip Kotler. Objectives. Developing & Managing an Advertising Program Deciding on Media & Measuring Effectiveness Sales Promotion Public Relations. Objectives Setting.

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Chapter 19

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  1. Chapter 19 Managing Advertising, Sales Promotion and Public Relations Marketing Management Tenth Edition Philip Kotler

  2. Objectives • Developing & Managing an Advertising Program • Deciding on Media & Measuring Effectiveness • Sales Promotion • Public Relations

  3. Objectives Setting Budget Decisions Message Decisions Media Decisions Campaign Evaluation Major Decisions in Advertising

  4. Advertising Objectives Informative Advertising Build Primary Demand • Specific Communication Task • Accomplished with a Specific Target Audience • During a Specific Period of Time Persuasive Advertising Build Selective Demand Reminder Advertising Keeps Consumers Thinking About a Product. Comparison Advertising Compares One Brand to Another

  5. Message Message generation Message evaluation and selection Message execution Social-responsibility review Money Factors to consider: Stage in PLC Market share and con- sumer base Competition and clutter Advertising frequency Product substituta- bility Measure- ment Communi- cation impact Sales impact Media Reach, frequency, impact Major media types Specific media vehicles Media timing Geographical media allocation The Five Ms of Advertising Mission Sales goals Adver- tising objectives

  6. Advertising Budget Factors Market Share & Consumer Base Competition & Clutter Stage in the Product Life Cycle Advertising Frequency Product Substitutability

  7. Profiles of Major Media Types Newspapers Advantages: Flexibility, timeliness; good local market coverage; broad acceptance, high believability Limitations: Short life; poor reproduction quality; small pass-along audience Television Advantages: Combines sight, sound, motion; high attention; high reach; appealing to senses Limitations: High absolute costs; high clutter; fleeting exposure; less audience selectivity Direct Mail Advantages: Audience selectivity; flexibility, no ad compe- tition within same medium; allows personalization Limitations: Relative high cost; “junk mail” image

  8. Profiles of Major Media Types Radio Advantages: Mass use; high geographic and demographic selectivity; low cost Limitations: Audio only; fleeting exposure; lower attention; nonstandardized rates; fragmented audiences Magazines Advantages: High geographic and demographic selectivity; credibility and prestige; high-quality reproduction; long life; good pass-along readership Limitations: Long ad purchase lead time; waste circulation; no guarantee of position Outdoor Advantages: Flexibility; high repeat exposure; low cost; low message competition Limitations: Little audience selectivity; creative limitations

  9. Level Rising Falling Alternating (1) (2) (3) (4) Concen- trated (5) (6) (7) (8) Continuous (9) (9) (10) (11) (12) Number of messages per month Inter- mittent Month Classification ofAdvertising Timing Patterns

  10. 100 80 60 40 20 0 Poor ad Mediocre ad Average ad Good ad Great ad Simplified Rating Sheet for Ads (Attention) How well does the ad catch the reader’s attention? __20 (Read-through) How well does the ad lead the reader to read further? __20 (Cognitive) How clear is the central message or benefit? __20 (Affective) How effective is the particular appeal? __20 (Behavior) How well does the ad suggest follow-through action? __20 __Total

  11. Typical Message Execution Styles Advertising StrategyMessage Execution Testimonial Evidence Slice of Life Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest. Lifestyle Scientific Evidence Fantasy Technical Expertise Mood or Image Personality Symbol Musical

  12. Advertising Program Evaluation Communication Effects Is the Ad Communicating Well? Sales Effects Is the Ad Increasing Sales? Advertising Evaluation

  13. Why the increase in Sales Promotion? • Growing retailer power • Declining brand loyalty • Increased promotional sensitivity • Brand proliferation • Fragmentation of consumer market • Short-term focus • Increased managerial accountability • Competition • Clutter

  14. 60 50 40 Trade Promo 30 Media Adv %t of total - 3 yr.MA 20 Cons. Promo 10 0 1986 88 90 92 94 1996 Year Long-Term Promotional Allocation Cox Direct 19th Annual Survey of Promotional Practices

  15. Trade Promotions Push RETAILER Consumer Promotions Pull Retail Promotions Push CONSUMER Channels of Sales Promotions MANUFACTURER

  16. Samples Advertising Specialties Coupons Patronage Rewards Patronage Rewards Cash Refunds Contests Price Packs Sweepstakes Premiums Games Point-of-Purchase Displays Consumer Promotion Consumer-Promotion Objectives Consumer-Promotion Tools Entice Consumers to Try a New Product Lure Customers Away From Competitors’ Products Get Consumers to “Load Up’ on a Mature Product Hold & Reward Loyal Customers Consumer Relationship Building

  17. “Deal Proneness,”Liechtenstein, Burton, & Netemeyer, Journal of Retailing, Summer 1997 • Examination of “deal proneness” among consumers in a supermarket setting • Surveys & Grocery Receipts used • Eight types of deals: • Cent-off, One-free, Gift, Display, Rebate, Contest, Sale, & Coupon

  18. “Deal Proneness,”Liechtenstein, Burton, & Netemeyer Cluster analysis yielded two interpretable results: • 49% are “deal prone,” 51% not • 24% High “Deal prone,” 50% intermediate, 26% deal insensitive • “Deal-proneness” a generalized construct - (crosses type of promotion) • Younger & Less educated more likely to be deal prone

  19. Price-Offs Premiums Allowances Patronage Rewards Displays Buy-Back Guarantees Discounts Push Money Free Goods Specialty Advertising Items Contests Trade Promotions Trade-Promotion Tools Trade-Promotion Objectives Persuade Retailers or Wholesalers to Carry a Brand Give a Brand Shelf Space Promote a Brand in Advertising Push a Brand to Consumers

  20. Conventions Trade Shows Sales Contests Business-to-Business Promotion Business-Promotion Objectives Business-Promotion Tools Generate Business Leads Stimulate Purchases Reward Customers Motivate Salespeople

  21. Major Public Relations Tools Web Site News Public Service Activities Speeches Corporate Identity Materials Special Events Audiovisual Materials Written Materials

  22. Taco Bell has purchased the Liberty Bell!

  23. Review • Developing & Managing an Advertising Program • Deciding on Media & Measuring Effectiveness • Sales Promotion • Public Relations

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