MARK 3321 1st Edition Lecture 15Outline of Last Lecture I. Product Line PricingII. The Role of PromotionIII. Marketing CommunicationIV. Communication ProcessV. Characteristics of the Elements in the Promotional MixVI. AIDA ConceptVII. Promotional Mix and AIDAVIII. Integrated Marketing CommunicationsIX. Factors affecting the Promotional MixX. Push vs Pull StrategyOutline of Current Lecture I. AdvertisingII. Major Types of AdvertisingIII. Product AdvertisingIV. Creative Decisions in AdvertisingV. The DAGMAR ApproachVI. Common Advertising AppealsVII. Unique Selling PropositionVIII. Media Decisions in AdvertisingIX. The Internet and Alternative MediaX. Media Selection ConsiderationsXI. Media SchedulingXII. Public RelationsXIII. Public Relations ToolsXIV. Sales PromotionXV. Tools for Consumer Sales PromotionCurrent LectureCH 16 – Advertising, Public Relations, and Sales Promotions- Advertisingo Impersonal, one-way mass communication about a product or organization that is paid for by a marketer P&G is world’s largest advertiserThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.- Major Types of Advertisingo Institutional advertising Enhances a company’s image rather than promotes a particular producto Product advertising Touts the benefits of a specific good or service- Product Advertisingo Pioneering Stimulates primary demand for new product or category Used in the PLC introductory stageo Competitive Influence demand for brand in the growth phase of the PLC Often uses emotional appealo Comparative Compares two or more competing brands’ product attributes Used if growth is sluggish, or if competition is strong- Creative decisions in advertisingo Advertising campaign A series of related advertisements focusing on a common theme, slogan, and setof advertising appealso 1. Determine advertising objectiveso 2. Make creative decisions/make media decisionso 3. Evaluate the campaign- Setting objectives: The DAGMAR Approacho 1. Define target audienceo 2. Define desired percentage changeo 3. Define time frame for change- Common Advertising Appeals- Unique Selling Propositiono A desirable, exclusive, and believable advertising appeal selected as the theme for a campaign- Media decisions in Advertisingo Newspapers Short lead timeso Magazineso Radio Short lead timeso Televisiono Outdoor media Geographically specific- The Internet and Alternative Mediao Internet Fastest growing of “major” ad media Key advantages are ability to reach a narrow target audience and short lead times at a moderate cost Advergaming Mobile advertisingo Alternative media Cut through clutter “Advertainments” Could be on sides of buses- Media selection considerationso Cost per contacto Reacho Frequencyo Audience selectivityo Medium flexibilityo Noise levelo Medium life span- Media schedulingo Continuouso Flightedo Pulsingo Seasonal- Public relationso The element in the promotional mix that: Evaluates public attitudes Identifies issues of public concern Executes programs to gain public acceptance- Public relations toolso New product publicityo Product placemento Consumer educationo Sponsorshipo Company web sites- Managing unfavorable publicityo Crisis management A coordinated effort to handle the effects of unfavorable publicity or of an unfavorable event- Sales promotiono Marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase- Sales promotiono Consumer sales promotion Ultimate consumer marketo Goal Drive immediate purchase Influence behavioro Trade sales promotion Marketing channel members- Tools for Trade Sales Promotiono Trade allowance A price reduction offered by manufacturers to intermediaries, such as wholesalers and retailerso Push money Money offered to channel intermediaries to encourage them to “push” products—that is, to encourage other members of the channel to sell the products- Coupons and rebateso Coupon A certificate that entitles consumer to an immediate price reduction when they buy the product 1-3% of coupons are redeemedo Rebates A cash refund given for the purchase of a product during a specific periodo Premium An extra item offered to the consumer, usually in exchange for some proof of purchase of the promoted product- Tools for consumer sales promotiono Loyalty marketing programs Frequent buyer programso Contests and sweepstakes Sweepstakes are based on chanceo Samplingo Point-of-purchase promotion P-O-P displayso Online sales