Lecture Basic Marketing: A global-managerial approach: Chapter 16 - William D. Perreault, E. Jerome McCarthy

Chapter 16:
  

 Advertising

and
Sales Promotion

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


Chapter 16 Objectives
When you finish this chapter, you should
1.  Understand why a marketing 
manager sets specific objectives 
to guide the advertising effort.

  6. Understand what advertising 
agencies do—and how they are 
paid.

2.  Understand when the various 
kinds of advertising are needed.

  7. Understand how to advertise 
legally. 

3.  Understand how to choose the 
“best” medium.

  8. Understand the importance and 
nature of sales promotion.

4. Understand the main ways that 
  9. Know the advantages and 
advertising on the Internet differs 
limitations of different types of 
from advertising in other media.
sales promotion.
5. Understand how to plan the "best"  10. Understand the important new 
message—that is, the copy thrust.
terms.

16­2

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


Strategy Planning for Advertising
Target Market

Product

Place

Promotion

Personal
Selling

Mass
Selling

Advertising

Target
audience

Exhibit 16­1
16­3

Kind of
advertising

Price

Sales
Promotion
Publicity

Media types

Copy thrust

Who will do
the work?

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


Setting Advertising Objectives
Introduce New Products
Position Brands
Obtain Outlets
Ongoing Contact

Strategy
Decisions
in Setting
Advertising
Objectives
16­4

Support Sales Force
Get Immediate Action
Maintain Relationships
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


Kinds of Advertising
Pioneering

Competitive

Kinds
of Product
Advertising

Reminder
16­5

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


Choosing Media
Television

Yellow Pages

Newspaper

Magazine

Major Kinds
of Media

16­6

Direct Mail

Outdoor

Radio

Internet
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


Advertising on the Internet

??????
??????
??????
??????
??????

Many Forms
Seek Direct Response
More Exposure
Better Targeting
Context Ads/Pointcasting
Pay for Results

16­7

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill

Planning the Message
Get Attention

Hold Interest

Arouse Desire

Obtain Action
16­8

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


Measuring Advertising Effectiveness

????
????
????
????
????
16­9

Consider
Consider the
the Total
Total Mix
Mix

Research
Research and
and Testing
Testing
May
May Improve
Improve Odds
Odds

Build
Build Upon
Upon
What
What Works
Works

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


Issues in Managing Sales Promotion

+
+
Immediate
Growth
Results
+

+
Positives
- Negatives
Erodes
Hard to
Brand
Manage
Loyalty
16­10

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


Possible Effects of Sales Promotion
Unit Sales
Period of
promotion

Sales 
temporarily 
increase, then 
decrease, then 
return to 
regular level

Time
Exhibit 16­6A
16­11

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


Possible Effects of Sales Promotion
Unit Sales
Period of
promotion

Sales 
temporarily 
increase and 
then return to 
regular level

Time
Exhibit 16­6B
16­12

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


Possible Effects of Sales Promotion
Unit Sales
Period of
promotion

Sales increase 
and then remain 
at higher level

Time
Exhibit 16­6C
16­13

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


Key Terms
Institutional Advertising
Product Advertising
Pioneering
Competitive
Direct Type
Indirect Type
Comparative
Reminder
Advertising Allowances
Cooperative Advertising
Copy Thrust
Advertising Agencies
Corrective Advertising
16­14

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill