adv mm-2secondary market$ listing

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Promotion

Communication by marketers

that informs, persuades, and

reminds potential buyers of aproduct in order to influence

an opinion or elicit a

response.



Promotional Mix

Combination of promotion

tools used to reach the target

market and fulfill

the organization’s

overall goals.



Promotional Mix

Advertising

Elementsof the

PromotionalMix

Public Relations

Personal Selling

Sales Promotion



Advertising

Definition:

Advertising is any ,paid form of non-personal

presentation and promotion of ideas,goods

and services by an identified sponsor.------

American Marketing Association.



Advertising

AdvantagesAdvanta

ges

• Ability to reach large

number of people

• Cost per contact is

low

• Can be micro-

targeted

DisadvantagesDisadvant

ages

• Total cost is high



Characteristics of Advertising

Communication Mode

Communication Control Feedback Amount

Feedback Speed

Message Flow Direction

Message Content Control

Sponsor Identification

Reaching Large Audience

Message Flexibility

AdvertisingAdvertising

Indirect and non-personal

LowLittle

Delayed

One-way

Yes

Yes

Fast

Same message to all audiences



Goals and Tasks of

Advertising

Informing Reminding

Persuading

TargetAudience



Goals and Tasks of Ad

Informing Reminding

Persuading

TargetAudience

PLC StagesPLC Stages:Introduction

Early Growth

PLC Stages:PLC Stages:

Growth

Maturity

PLC Stages:PLC Stages:

Maturity




Informative Objective

• Increase awareness

• Explain how product works

• Build company image

• Explain various/new uses of product

•

Inform change in marketing mix

• Tell consumers who is using the product now

• Reduce consumers fears of risk involved in purchase




Persuasion Objective

• Encourage brand switching/brand preference

• Change customers’ perception of product attributes

• Influence buying decision

• Persuade customers to purchase now

• Attempt to off-set competitors advertising

• Change relative importance of product attributes




Reminder Objective• Remind customers that product may be needed

• Remind customers where to buy product

• Maintain top of the mind awareness

• Maintain image through off-seasons

• Maintain product and company image

• Suggest new uses of the product

• Correct false impression



Objectives of Advertising:Objectives of Advertising: Informative advertising seeks to develop initial

demand

Persuasive advertising attempts to increasedemand for an existing product

Reminder advertising strives to reinforce previous

promotion by keeping the name of the productbefore the market

To increase support.

To stimulate sales amongst present,former & future

consumers.To retain loyalty.

To project an image.

To communicate with consumers.



Advertising objectives in relation to the stage inthe Product Life Cycle



The AIDA Concept

AAttentionttention

IInterestnterest

DDesireesire

AActionction



AIDA and the Promotional Mix

AwarenessAwareness InterestInterest DesireDesire ActionAction

Advertising Advertising Very

effectiveVery

effectiveSomewhateffective

Noteffective

Public Public RelationsRelations

Veryeffective

Veryeffective

Veryeffective

Noteffective

SalesSales

PromotionPromotion

Somewhat

effective

Somewhat

effective

Very

effective

Very

effective

Personal Personal Selling Selling

Somewhateffective

Veryeffective

Veryeffective

Somewhateffective



Media Types

Newspapers

Magazines

Radio

Television

Outdoor

Internet

Alternative Media

Major TypesMajor Types

of of AdvertisingAdvertising

MediaMedia



Media selection consideration

• Costs

• Competitors

• Customers and target market

• The product

• Media Penetration and Coverage• Advertising Objectives



Media Selection Considerations

Cost per Contact

FactorsInfluencingMedia MixDecisions

Reach

Frequency

Audience Selectivity



Newspapers

Advantages Advantages

Year-round readership

Geographic selectivity

Immediacy

High individual market

coverage

Short lead time

DisadvantagesDisadvantages

Limited demographicselectivity

Little color

May be expensive

Low pass-along rate

Clutter

Mass market medium



Magazines

Good reproduction

Demographicselectivity

Regional/localselectivity

Long advertising life

High pass-along rate


Higher cost per contact

Long-term advertiser commitments

Slow audience build-up

Limited demonstrationcapabilities

Lack of urgency

Long lead time




Radio


Selectivity andaudience segmentation

Immediate and portable

Geographic flexibility

Entertainmentcarryover

Short-term adcommitments


No visual treatment

Short advertising life

High frequency togenerate retention

Commercial clutter Background

distractions



Television


Wide diverse audience

Low cost per thousand

Creative anddemonstrative

Immediacy of messages

Entertainment carryover

Demographic selectivitywith cable


Short life of message

Expensive with highcampaign cost

Little demographicselectivity with network

Long-term advertiser commitments

Long lead times

Clutter



Internet and World Wide Web

Fast growing Ability to reach narrow

target audience

Short lead time

Moderate cost


Difficult to measuread effectiveness andROI

Ad exposure relies on

“click through” Not all consumers

have access tointernet




Advertising Budget

Advertising Budget is an estimate of future ad expenditure that

will be used to implement managerial decision to maintain or

improve profit results.

Budgetary Process:Preparation of Budget—Presentation of

Budget—Execution of Budget—Control of Budget.

Factors affecting the Ad Budget:

1.Marketing Mix of the company

2.Affordability3.Product life cycle

4.Level of competition

5.Type of product



Methods of determining Budget

Allocation

• The Percentage of sales method

• Advertising objective-and-task method

• All you can afford method

• Competitive parity method

• Incremental concept approach to ad budget

(concept of marginality)

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