Principles of marketing: Lecture 34

MGT301
Principles of Marketing
Lecture­34


Summary
of  
Lecture­33


Advertising


The Five M’s of Advertising


Message

Mission
Sales
goals
Advertising
objectives

Money

Message generation

Factors to
consider:

Message evaluation
and selection

Stage in PLC
Market share
and consumer base
Competition
and clutter
Advertising
frequency
Product
substitutability

Message execution
Social-responsibility
review

Measurement

Media

Communication
impact

Reach, frequency,
impact
Major media types
Specific media
vehicles
Media timing

Geographical
media allocation

Sales
impact


Major Advertising Decisions


Objectives
Objectives Setting
Setting

Budget
Budget Decisions
Decisions

Message
Message Decisions
Decisions

Media
Media Decisions
Decisions

Campaign
Campaign Evaluation
Evaluation

Choose the Media


Television

Yellow Pages

Newspaper

Magazine

Major
Kinds of
Media

Direct Mail

Outdoor

Radio

Internet


Today’s Topics
Advertising (cont..)
Sales Promotion
Media Scheduling

Advertising (cont..)
Sales Promotion


Media Scheduling


Step
Step1.
1. Decide
Decideon
onReach,
Reach, Frequency,
Frequency,
and
and Impact
Impact
Step
Step2.
2. Choosing
ChoosingAmong
AmongMajor
Major Media
MediaTypes
Types

Step
Step 3.
3. Selecting

Selecting Specific
SpecificMedia
Media Vehicles
Vehicles

Step
Step4.
4. Deciding
Deciding on
on Media
MediaTiming
Timing








Setting the timing and sequence of a series of 
advertisements.
Sales patterns (seasonal), repurchase cycles, and 
competitors’ activities are the most important 
variables.
Advertisers use the concepts of reach, frequency, and 
gross rating points to measure the effectiveness of 
media scheduling plans.







Reach: the number of different people or households 
exposed to an advertisement at least one during a 
certain time period.
Frequency: the number of times an individual person 
is exposed to an advertisement in a certain time.
Gross rating point: reach times frequency.


Evaluating Advertising Effectiveness


Pretesting
Pretesting

Posttesting
Posttesting

Sales
SalesEffectiveness
Effectiveness
Evaluations
Evaluations

Tools:

•Focus Groups
•Screening
•Persuasion Scores

Tools:
•Unaided Recall Tests
•Aided Recall Tests
•Inquiry Evaluations

Tools:
•Monitor Sales
•Brand-to-Sales Effects


Advertising
Advertising Program
Program Evaluation
Evaluation

Communication
Communication Effects
Effects

Sales
Sales Effects
Effects

Is
Isthe
theAd

AdCommunicating
CommunicatingWell?
Well?

Is
Isthe
theAd
Ad Increasing
IncreasingSales?
Sales?


What to communicate?
Get Attention
Hold Interest
Arouse Desire
Obtain Action


Ways to Handle Advertising


Sales
SalesDepartments
Departmentsin
in
Small
Small Companies
Companies

Advertising
Advertising
Departments
Departments
in
in Larger
Larger Companies
Companies

Advertising
Advertising Agency
Agency


Sales Promotion




Sales Promotion is a Mass Communication Technique 
That Offers Short­Term Incentives to Encourage 
Purchase or Sales of a Product or Service.
Offers Reasons to Buy Now.


Sales Promotion is a Mass Communication 
Technique That Offers Short­Term Incentives to 
Encourage Purchase or Sales of a Product or 
Service.
Offers Reasons to Buy Now.

Sales Promotion Objectives




 Increase short­term sales or help build long­
term market share.
 Get retailers to:
– carry new items and more inventory,
– advertise products, 
– give products more shelf space, and
– buy product ahead.




 Increase short­term sales or help build long­term 
market share.



 Get retailers to:
– carry new items and more inventory,
– advertise products, 
– give products more shelf space, and
– buy product ahead.