Advertising and Sales Promotion
Unit-1
Vaishali Agarwal Assistant Professor (Marketing)
Advertising Vs Promotion Vs Marketing
???
The Growth of Advertising and Promotion
Expenditure in Billions of Dollars
U.S. Advertising U.S. Sales Promotion Advertising Outside U.S. $0 $50 $100 $150 $200 $250 $300 2002 1980
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Defining Modern Advertising
Paid persuasive communication Uses nonpersonal mass media to reach broad audiences Connects an identified sponsor with a target audience
Six Basic Components
1. Paid 2. Non-personal communication 3. Sponsor is identified 4. Using mass media 5. Tries to persuade or influence 6. Reaches large audience
Advertising Defined
Paid, non-personal communication from an identified sponsor, using mass media to persuade or influence an audience. Or The process of delivering a message about ideas, goods and services, through the media, paid by an identifiable sponsor.
Objectives
To cause Awareness. To Persuade. To create Image. To Remind.
The Meaning of the Objectives
Key Concepts of Advertising
Strategy
Advertisers direct ads to identified audiences Advertisers create messages that speak to the audiences concerns Advertisers run ads in the most effective media to reach the audience The logic and planning behind the ad that give it direction and focus Advertisers develop ads to meet objectives
Creative Idea
The central idea that grabs the consumers attention Creativity drives the entire field of advertising
Execution
Effective ads adhere to the highest production values in the industry Clients demand the best production the budget allows
Media
Communication channels that reach a broad audience How to deliver the message is just as important as coming up with the creative idea of the message
Key Players: Advertiser
Uses advertising to send out a message about its products Initiates effort by identifying a problem that advertising can solve Approves audience, plan and budget Hires the agency
Key Players: Advertiser
1. Automotive 2. Retail 3. Movies, media, and advertising 4. Food, beverages, and confectionery 5. Medicines and proprietary remedies 6. Financial services 7. Telecommunications 8. Toiletries, cosmetics, and personal care 9. Airline travel, hotels, and resorts 10. Restaurants 11. Direct-response companies 12. Home-furnishings, appliances, supplies 13. Insurance and real estate 14. Computers, software, Internet 15. Government, politics, and organizations 16. Apparel 17. Beer, wine, and liquor 18. Audio and video equipment and supplies 19. Sporting goods, toys, and games 20. Entertainment and events
Key Players: Agency
Has strategic and creative expertise, media knowledge, workforce talent and negotiating abilities
Key Players: Supplier
Assist advertisers, agencies and the media in creating and placing the ads Vendor services are often cheaper than those in-house
Key Players: Target Audience
The desired audience for the advertising message Data-gathering technology improves accuracy of information about customers Advertisers must recognize the various target audiences they are talking to and know as much about them as possible
The Communication Role
Strengths
Can reach mass audience Introduces Products Explain important Changes
Examples
A commercial of any product reaches millions of households Companies use advertising to launch their IPOs Hutch used advertising extensively to communicate the change to VODAFONE Raymonds is advertising itself from more than last 60 years A Pulse Polio ad persuades parents to make their kids take drops
Reminds and Reinforce
Persuades
The Economic Role
Advertising decreases the likelihood that a consumer will switch to an alternate product regardless of price
Advertising is a means to objectively provide price-value information, creating a more rational economy
The Societal Role
Informs consumers about innovations and issues Mirrors fashion and design trends Teaches consumers about new products Helps shape consumer self-image Perpetuates self-expression
Marketing Revolution and Shifting Tides
From
Media Advertising Mass Media Manufacturer Dominance General Focus Low Agency Accountability Traditional Compensation Limited Internet Availability
Toward
Multiple Forms of Communication Specialized Media Retailer Dominance Data Based Marketing Greater Agency Accountability
Performance Based Compensation
Widespread Internet Availability
Integrated Marketing Communications
All of the processes that involve communications, between marketing and customers in their process of decision making.
IMCAudience Contact Points
Point of Purchase Internet/ Interactive Media Direct Mail Publicity Public Relations Packaging
Marketing Communications Audience
Direct Response Sales Promotion
Print Media
Broadcast Media
Outdoor
Events
IMC Principles Extend Worldwide
Traditional Approach to Marketing Communications
Sales Promotion
Point of Purchase
Publicity
Special Events
Media Advertising
Packaging
Direct Response
Public Relations Direct Marketing
Interactive Marketing
Contemporary IMC Approach
Sales Promotion Direct Response
Packaging
Point of Purchase
Publicity
Media Advertising
Public Relations
Interactive Marketing
Direct Marketing
Special Events
The Classification
ATL - Above The Line All of the MarCom that is done in the media: Planning Advertising Publicity/Public Relations Direct Marketing BTL - Below The Line All of the MarCom that is done in the market and not in the media: - Sales Promotion - Personal Selling - Direct Marketing
Exercise A01
Analyze this Advertisement &
Identify: Key Players Suitable IMC Tools Ethical Issues involved
