Marketing Management 2nd Edition

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Marketing Management2nd Edition
Michael R. Czinkota and Masaaki Kotabe

• Chapter 12
• Designing Effective Promotion and Advertising
  Strategies

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Chapter Outline

• Dialogue
• Push versus Pull Strategy
• Consumer vs. Industrial Advertising
• Creating the Correct Message
• The Message
• Types of Media
• Promotional Mix Factors
• Advertising Budgets
• Selecting an Ad Agency

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Dialogue
Idea becomes message
Sender ENCODES the message.
Message is transmitted.
Receiver DECODES the message.
Receiver gets message.
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Push versus Pull Strategy
Manufacturer
PUSH STRATEGY Communicate through
the distribution channels
Wholesaler
Retailer
Customer
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Push versus Pull Strategy
Manufacturer
PULL STRATEGY Communicate directly to customers
Wholesaler
Retailer
Customer
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Consumer vs. Industrial Advertising
Consumer advertising targeted at end-user
Industrial advertising targeted at business
or institutions
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Creating the Correct Messages

• Awareness
• Interest
• Understanding
• Attitudes
• Buying Decision

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The Message

• Unique Selling Proposition can be achieved
  through
• Product features
• Psychological features
• Association

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The Message Other Issues

• Message consistency
• Opinion leaders
• Word of mouth
• Message selection
• Cognitive dissonance

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Types of Media

• Newspapers
• Television
• Satellite TV
• Informercials
• Radio
• Movies
• Billboards
• Internet

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Promotional Mix Factors

• Budget
• Promotional message
• Complexity of product
• Market size location
• Distribution
• Product life cycle
• Competition
• Government regulations
• Ethics

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Advertising Budgets

• Methods of determining budgets
• Affordability (21)
• Percentage of sales (44)
• Competitive parity (N/A)
• Objective task (18)

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Selecting an Ad Agency

• Define the need
• Desk research
• Formulate short list
• Evaluation
• Narrow the selection
• Make final selection