Basic Marketing, 13th edition

1
Chapter 16 Advertising and Sales Promotion
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Advertising Objectives

• Specific Objectives are more important for
  advertising than personal sales or sales
  promotion.
• Need objectives for each ad and the overall
  campaign. AIDA often used
• Must have a budget and a target market defined
  from the marketing strategy

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Planning the Message
16-8
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Target Market should be defined by

• Specific Demographic Profile
• Usage rates
• Methods of Usage
• Current attitudes and behavior patterns
• length of the purchase cycle critical for media
  plans

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Choosing Media
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Media Strategy

• Before your media strategy you need
• A comprehensive demographic profile (demographic
  geographic)
• Media budget
• Creative Strategy (joint decision)
• Media Strategy has three parts
• Specifying media objectives
• Selecting media categories vehicles
• Scheduling media

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Media Objectives

• Can you get a good fit between the product
  audience of the media (qualitative)
• Reach - of the target market exposed to one or
  more ads in a given time frame. More is better
• Avg. Frequency - avg. number of times the target
  audience is exposed to the ad
• CPM (cost per thousand) - cost per thousand
  members of the target audience

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Example of CPM

• You have an auto parts business in a city of 1.4
  million. 70 of your customers are black males
  between the ages of 18-45.
• Compare CPM for two radio stations
• WXXX WZZZ

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What is CPM for both? Which is the better buy?

• Ad Total Black
  Males
• Cost Audience 18-45
• WXXX 120 200,000 90,000
• WZZZ 90 110,000 75,000

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CPM Example 3

• CPM Cost/audience in thousands
• WXXX CPM 120/90 1.33
• WZZZ CPM 90/75 1.20
• WZZZ is a better buy.

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Advertising Copy Strategy

• Need to start with audience
• Demographics
• Psychographics
• Usage Rates
• How the Product is used
• Also need to compare your brand performance vs.
  competitors brands
• Pre-testing is common, but rough versions can be
  misleading - especially for TV

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Key to Copy Strategy Effectiveness

• Can you come up with a brand differentiating
  message? If so, the ad impact is often fantastic
  compared to routine ads.
• i.e. Tell the customer something about the brand
  that shows superior value compared to other brands

13
Sales Promotion

• Promotion activitiesother than advertising,
  publicity and personal sellingthat stimulate
  interest, trial, or purchase
• May be targeted at channel members, final
  customers or users, or employees
• Skill may be difficult to develop inside the
  firmsince a promotion activity is often designed
  and used only once
• Sales promotion spending is increasing

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Possible Effects of Sales Promotion
Exhibit 16-6A
16-11
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Possible Effects of Sales Promotion
Unit Sales
Period of promotion
Sales temporarily increase and then return to
regular level
Time
Exhibit 16-6B
16-12
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Possible Effects of Sales Promotion
Unit Sales
Period of promotion
Sales increase and then remain at higher level
Time
Exhibit 16-6C
16-13