advertising, sales promotion & public relation (principles of marketing)

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Copyright 1999 Prentice Hall 15-1 Advertising, Sales Promotion and Public PRINCIPLES OF MARKETING Eighth Edition Philip Kotler and Gary Armstron chapter 6

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Page 1: Advertising, sales promotion & public relation (principles of marketing)

Copyright 1999 Prentice Hall

15-115-1

Advertising, Sales

Promotion

and Public Relations

PRINCIPLES OF MARKETINGEighth Edition

Philip Kotler and Gary Armstrong

chapter 6chapter 6

Page 2: Advertising, sales promotion & public relation (principles of marketing)

Copyright 1999 Prentice Hall

15-215-2

What is Advertising?What is Advertising?

• Any form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

• U.S. advertisers spend in excess of $175 billion each year.

• Advertising is used by:– Business firms,

–Nonprofit organizations,

–Professionals,

–Social Agencies.

Page 3: Advertising, sales promotion & public relation (principles of marketing)

Copyright 1999 Prentice Hall

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Major Decisions in AdvertisingMajor Decisions in Advertising

Objectives SettingObjectives Setting

Budget DecisionsBudget Decisions

Message DecisionsMessage Decisions

Campaign EvaluationCampaign Evaluation

Media DecisionsMedia Decisions

Page 4: Advertising, sales promotion & public relation (principles of marketing)

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Informative AdvertisingBuild Primary Demand

Informative AdvertisingBuild Primary Demand

Setting ObjectivesSetting Objectives

Persuasive AdvertisingBuild Selective Demand

Persuasive AdvertisingBuild Selective Demand

Comparison AdvertisingCompares One Brand to

Another

Comparison AdvertisingCompares One Brand to

Another

Advertising Objectives• Specific Communication Task

• Accomplished with a Specific Target Audience • During a Specific Period of Time

Reminder AdvertisingKeeps Consumers Thinking

About a Product.

Reminder AdvertisingKeeps Consumers Thinking

About a Product.

Page 5: Advertising, sales promotion & public relation (principles of marketing)

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Setting the Advertising BudgetSetting the Advertising Budget

Stage in the Product Life Cycle

Stage in the Product Life Cycle

Competition and Clutter

Competition and Clutter

Market Share

Market Share

Advertising Frequency

Advertising Frequency

ProductDifferentiation

ProductDifferentiation

Factors in Setting the Advertising

Budget

Advertising Budget Methods

Affordable, Percentage of Sales, Competitive-Parity and Objective-and-Task

Page 6: Advertising, sales promotion & public relation (principles of marketing)

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Click to add titleClick to add title

Plan a Message StrategyGeneral Message to Be Communicated to Customers

Plan a Message StrategyGeneral Message to Be Communicated to Customers

Advertising StrategyCreating Advertising MessagesAdvertising StrategyCreating Advertising Messages

Develop a Message Focus on

Customer Benefits

Develop a Message Focus on

Customer Benefits Creative Concept“Big Idea”

Visualization or PhraseCombination of Both

Creative Concept“Big Idea”

Visualization or PhraseCombination of Both Advertising Appeals

MeaningfulBelievableDistinctive

Advertising AppealsMeaningfulBelievableDistinctive

Page 7: Advertising, sales promotion & public relation (principles of marketing)

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Advertising StrategySelecting Advertising MediaAdvertising StrategySelecting Advertising Media

Step 1. Decide on Reach, Frequency, and Impact

Step 1. Decide on Reach, Frequency, and Impact

Step 2. Choosing Among Major Media TypesMedia Habits of Target Consumers

Nature of the ProductType of Message

Cost

Step 2. Choosing Among Major Media TypesMedia Habits of Target Consumers

Nature of the ProductType of Message

Cost

Step 3. Selecting Specific Media VehiclesSpecific Media Within a Given Type, i.e. Magazines.Must Balance Media Cost Against Media Factors:

Audience Quality & Attention, Editorial Quality

Step 3. Selecting Specific Media VehiclesSpecific Media Within a Given Type, i.e. Magazines.Must Balance Media Cost Against Media Factors:

Audience Quality & Attention, Editorial Quality

Step 4. Deciding on Media TimingScheduling of Advertising Over the Course of a Year

Pattern of Ads: Continuity or Pulsing

Step 4. Deciding on Media TimingScheduling of Advertising Over the Course of a Year

Pattern of Ads: Continuity or Pulsing

Page 8: Advertising, sales promotion & public relation (principles of marketing)

Copyright 1999 Prentice Hall

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Advertising EvaluationAdvertising Evaluation

Communication Effects

Is the Ad Communicating Well?

Communication Effects

Is the Ad Communicating Well?

Advertising Program EvaluationAdvertising Program Evaluation

Sales Effects

Is the Ad Increasing Sales?

Sales Effects

Is the Ad Increasing Sales?

Page 9: Advertising, sales promotion & public relation (principles of marketing)

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Ways to Handle AdvertisingWays to Handle Advertising

Sales Departments inSmall Companies

Sales Departments inSmall Companies

Advertising Agency

Firm that Assists Companiesin Planning, Preparing,

Implementing and Evaluating Their

AdvertisingPrograms.

Advertising Agency

Firm that Assists Companiesin Planning, Preparing,

Implementing and Evaluating Their

AdvertisingPrograms.

Advertising Departments in Larger Companies

Advertising Departments in Larger Companies

Page 10: Advertising, sales promotion & public relation (principles of marketing)

Copyright 1999 Prentice Hall

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International Advertising DecisionsInternational Advertising Decisions

Adaptation of Global Advertising

Adaptation of Global Advertising

Advertising Media Costs & Availability

Advertising Media Costs & Availability

Regulation of Advertising Practices

Regulation of Advertising Practices

Page 11: Advertising, sales promotion & public relation (principles of marketing)

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What is Public Relations?What is Public Relations?

• Building good relations with the company’s various publics by obtaining favorable publicity, building up a good “corporate image” and handling or heading off unfavorable rumors, stories and events.

• Major functions are:– Press Relations or Press Agentry

– Product Publicity

– Public Affairs

– Lobbying

– Investor Relations

–Development

Page 12: Advertising, sales promotion & public relation (principles of marketing)

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SpecialEvents

SpecialEvents

Written MaterialsWritten

Materials

Corporate Identity Materials

Corporate Identity Materials SpeechesSpeeches

NewsNews

AudiovisualMaterials

AudiovisualMaterials

Major Public Relations ToolsMajor Public Relations Tools

Public Service

Activities

Public Service

Activities

Web SiteWeb Site