Chapter 16:      Advertising and Sales Promotion

For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.

Strategic Planning for Advertising

Target Market

Product Product Place Place Promotion Promotion PricePrice

Personal Selling Mass Selling Sales Promotion

Advertising Publicity

Copy thrust

Media types

Who will do the work?

Target audience

Kind of advertising

Exhibit 16­2 16­2

For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.

Setting Advertising Objectives

Introduce New Products

Position Brands

Obtain Outlets

Ongoing Contact

Support Sales Force

Get Immediate Action

Maintain Relationships

Strategy Decisions in Setting Advertising Objectives

16­3

For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.

Kinds of Advertising

Pioneering

Competitive

Kinds of Product Advertising

Reminder

16­4

For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.

Choosing Media

Yellow Pages

Television

Magazine

Newspaper

Transit

Major Kinds of Media

Direct Mail

Outdoor

Internet

Radio

16­5

For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.

Advertising on the Internet

Many Forms

Seek Direct Response

More Exposure

Better Targeting

Context Ads/Pointcasting

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16­6

For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.

Pay for Results

Planning the Message

Get Attention

Hold Interest

Arouse Desire

Obtain Action

16­7

For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.

Measuring Advertising Effectiveness

Consider the Total Mix Consider the Total Mix

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

Build Upon Build Upon What Works What Works

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16­8

For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.

Issues in Managing Sales Promotion

+ Growth +

+ Immediate Results +

Positives

Negatives

- Hard to Manage -

- Erodes Brand Loyalty -

16­9

For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.

Possible Effects of Sales Promotion

Unit Sales

Period of promotion

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

Time

16­10

For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.

Possible Effects of Sales Promotion

Unit Sales

Period of promotion

Sales  temporarily  increase and  then return to  regular level

Time

16­11

For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.

Possible Effects of Sales Promotion

Unit Sales

Period of promotion

Sales increase  and then remain  at higher level

Time

16­12

For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.