Transcript Basic Marketing, 13th edition

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
advertising on the Internet differs
from advertising in other media.
9. Know the advantages and
limitations of different types of
sales promotion.
5. Understand how to plan the "best" 10. Understand the important new
message—that is, the copy thrust.
terms.
16-2
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
Kind of
advertising
Price
Sales
Promotion
Publicity
Media types
Copy thrust
Who will do
the work?
Exhibit 16-1
16-3
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
16-4
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
16-5
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
16-6
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
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Many Forms
Seek Direct Response
More Exposure
Better Targeting
Context Ads/Pointcasting
Pay for Results
16-7
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
16-8
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Measuring Advertising Effectiveness
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16-9
Consider the Total Mix
Research and Testing
May Improve Odds
Build Upon
What 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
16-10
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 16-6A
16-11
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 16-6B
16-12
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 16-6C
16-13
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
16-14
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill