Advertising

&
Sales Promotion

By-
Deepak Asnora
What
What is
is Advertising?
Advertising?
• Any form of non personal 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.
Major
Major Decisions
Decisions in
in Advertising
Advertising

Objectives
Objectives Setting
Setting

Budget
Budget Decisions
Decisions

Message
Message Decisions
Decisions Media
Media Decisions
Decisions

Campaign
Campaign Evaluation
Evaluation
Setting
Setting Objectives
Objectives
Advertising Objective
•Specific Communication Task
•Accomplished with a Specific Target Audience
•During a Specific Period of Time

Informative
Informative Advertising
Advertising Persuasive
Persuasive Advertising
Advertising
Build
BuildPrimary
PrimaryDemand
Demand Build
BuildSelective
SelectiveDemand
Demand

Comparison
Comparison Advertising
Advertising Reminder
Reminder Advertising
Advertising
Compares
ComparesOne
OneBrand
Brand to
to Keeps
KeepsConsumers
ConsumersThinking
Thinking
Another
Another About
AboutaaProduct.
Product.
Setting
Setting the
the Advertising
Advertising Budget
Budget
Advertising Budget Methods
Affordable, Percentage of Sales, Competitive-Parity and
Objective-and-Task
Product
Product Stage
Stageininthe
the Product
Product
Differentiation
Differentiation Life
LifeCycle
Cycle

Factors in
Advertising
Setting the
Advertising Market
Market
Frequency
Frequency
Advertising
Share
Share
Budget

Competition
Competition
and
andClutter
Clutter
Click
Click to
to add
Advertising title
add Strategy
Advertising title
Strategy
Creating
Creating Advertising
Advertising Messages
Messages

Plan
Plan aa Message
Message Strategy
Strategy
General
General Message
Message to
to Be
Be Communicated
Communicated to
to Customers
Customers

Develop
Develop aa Message
Message
Focus
Focusonon
Customer
CustomerBenefits Creative
Benefits Creative Concept
Concept
“Big
“Big Idea”
Idea”
Visualization
Visualizationor
orPhrase Advertising
Combination
Phrase Advertising Appeals
Appeals
CombinationofofBoth
Both Meaningful
Meaningful
Believable
Believable
Distinctive
Distinctive
Advertising
Advertising
Strategy
Strategy
Turning the “Big Idea” Into an Actual Ad to Capture the
Message Execution
MessageTarget
Execution
Market’s Attention and Interest.

Testimonial
Testimonial Slice
Sliceof
ofLife
Life
Evidence
Evidence

Scientific
Scientific
Evidence
Typical
Typical Lifestyle
Lifestyle
Evidence
Message
Message
Technical
Technical Execution
Execution Fantasy
Fantasy
Expertise
Expertise Styles
Styles
Personality
Personality Mood
Moodoror
Symbol
Symbol Image
Image

Musical
Musical
Advertising
Advertising Strategy
Strategy
Selecting
Selecting Advertising
Advertising Media
Media
Step
Step 1.
1. Decide
Decide on
on Reach,
Reach, Frequency,
Frequency,
and
and Impact
Impact
Step
Step 2.
2. Choosing
Choosing Among
Among Major
Major Media
Media Types
Types
Media
MediaHabits
Habitsof
ofTarget
TargetConsumers
Consumers
Nature
Natureof
ofthe
theProduct
Product
Type
TypeofofMessage
Message
Cost
Cost
Step
Step 3.
3. Selecting
Selecting Specific
Specific Media
Media Vehicles
Vehicles
Specific
SpecificMedia
MediaWithin
WithinaaGiven
GivenType,
Type,i.e.
i.e.Magazines.
Magazines.
Must
Must Balance Media Cost Against MediaFactors:
Balance Media Cost Against Media Factors:
Audience
AudienceQuality
Quality&&Attention,
Attention,Editorial
EditorialQuality
Quality

Step
Step 4.
4. Deciding
Deciding on
on Media
Media Timing
Timing
Scheduling
Schedulingof
ofAdvertising
AdvertisingOver
Overthe
theCourse
CourseofofaaYear
Year
Pattern of Ads: Continuity or Pulsing
Pattern of Ads: Continuity or Pulsing
Advertising
Advertising Evaluation
Evaluation

Advertising
Advertising Program
Program Evaluation
Evaluation

Communication
Communication Effects
Effects Sales
Sales Effects
Effects
Is
Isthe
theAd
AdCommunicating
CommunicatingWell?
Well? Is
Isthe
the Ad
AdIncreasing
Increasing Sales?
Sales?
Sales
Promotion
• Demand-stimulating devices designed to supplement
advertising and facilitate personal selling.

• Sales promotions include such things as coupons, in-

store displays, premiums, trade shows, in-store
demonstrations, and contests.

• The target for these activities may be middlemen,

end users, or the producer’s own sales force.
Types of Sales Promotion

• Trade promotions, directed to members

of the distribution channel.

• Consumer promotions, aimed at

consumers.

• Consumers got 3.3 billion coupons for

packaged goods alone in 1996.
Advantages of Sales Promotion
• It can produce short-term results.

• Competitors are using sales promotions.

• Sales promotions are attractive to price-conscious

consumers.

• Can enhance/facilitate retail salesmanship which

is often of low quality.
Key Reasons for Sales Promotion

• Stimulating end-user demand.

– Sampling program for new/improved product

• Improving the marketing performance of

middlemen and salespeople.
– Sell more, win a holiday trip.

• Supplementing advertising and facilitating

personal selling.
– Displays, promotional giveaways
Managing Sales Promotion
• Select from wide range of techniques, depending on
your objectives
• Select promotional devices based on:
– Nature of target audience
– Your promotional objectives: Push vs. Pull.
– Cost of device-- sampling can get costly.
– Current economic conditions-- coupons, rebates
work best in recessionary period.
• Evaluating Sales Promotion:
– Much easier than with advertising.
– Usually clear start, finish, goal.