Advertising & Sales PromotionAdvertising & Sales Promotion

Marketing MixMarketing Mix

Advertising (paid non-personal presentation)Sales Promotion (incentives for enticing trial)Events & Experiences (company sponsored events)Public Relations and Publicity (programs to promote or

protect company’s image)Direct Marketing (mail, telephone, internet) Interactive Marketing (online activities, polls)Word-of-mouth Marketing (p2p, oral, written)Personal Selling (f2f presentation)

Why Do We Do Why Do We Do AdvertisingAdvertisingPersonal Selling is preferred, because it is so

effective - but, it is expensive sometimes to contact EVERYBODY this way.

Advertising is not as direct as Personal Selling, but you can reach a lot of people.

Sources of AdvertisingSources of AdvertisingPrint and broadcast

adsPackaging insertsMotion picturesBrochures and

bookletsPostersBillboardsPOP displaysLogosVideotapes

Sources of Sales Sources of Sales PromotionPromotion

Contests, gamesPremiumsSamplingTrade shows,

exhibitsCouponsRebatesEntertainment

Sources of Personnel Sources of Personnel SellingSelling

Sales presentationsSales meetingsIncentive programsSamplesFairs and trade shows

Characteristics:-Characteristics:-

Advertising Pervasiveness

(repetition) Amplified

expressiveness Impersonality (no

obligation)Sales Promotion Communication (gains

attention) Incentive Invitation

Personal Selling Personal interaction Cultivation

(relationship) Response (must)

Product Advertising

Non-personal selling of a particular good or service.

- TV ads

- billboards

- junk mail

Comparative Advertising•Advertising that makes direct comparisons with competitive brands.

•Companies used to hesitate to do this, but now they do it freely.

•Sometimes it can backfire and cause the viewer to NOT want to buy the product - if the comparison is too harsh eg. Political advertising that is too nasty.

•Some countries do not allow Comparative Advertising.

•Other countries allow it,,, but,, you have to prove any statements you make.

Reminder Advertising

Done in the Maturity and Decline stage of the Product Life Cycle. You already know about the product - they want you to keep using it, even if new competitors come along.

These ads are usually “soft-sell” and try to be entertaining.

Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College

Relationship between Advertising and the Product Life Cycle

Pioneering

Competitive

Comparative

Retail Advertising

Retail advertising is the advertising done by stores that sell “stuff” directly to the consumers.

Co-operative Advertising

The sharing of advertising costs between the middlemen and retailer and the manufacturer. This means they will co-operate to display sales promotion material and share the costs of commercials and billboards etc.

Institutional Advertising

•Promoting a concept, idea, or philosophy, or the goodwill of an industry, company, or organization.

•This is closely related to the PR program of the company

•Also called Advocacy advertising

•Used often by Japanese conglomerates that have many types of products

•eg. Hitachi

SONY

Mitsubishi

Panasonic (Matsushita Electronics)

Media SelectionMedia SelectionNewspapers

Magazines

Television

Radio

Direct Mail

Outdoor

? - in which category is the most money spent

Media SelectionMedia Selection Newspapers - largest share of advertising,

26%

Magazines - 12%

Television - 2nd major category, 14%

Radio - 7%

Direct Mail

Outdoor, billboards etc. - 6%

Advantages and Disadvantages of the Various Advantages and Disadvantages of the Various Advertising MediaAdvertising Media

Media Advantages Disadvantages

Newspapers Flexibility Short lifespanCommunity prestige Hasty readingIntense coverage Poor reproductionReader control of exposureCo-ordination with national advertisingMerchandising service

Magazines Selectivity Lack of flexibilityQuality reproductionLong lifePrestige associated with some magazinesExtra services

Television Great impact Temporary nature ofMass Coverage messageRepetition High costFlexibility High mortality rate forPrestige commercials

Evidence of public distrustLack of selectivity

Media Advantages Disadvantages

Radio Immediacy FragmentationLow cost Temporary nature ofPractical audience message selection Little research informationMobility

Outdoor Quick communication of Brevity of the messageAdvertising simple ideas Public concern over

Repetition aestheticsAbility to promote products available for sale nearby

Direct Mail Selectivity High cost per personIntense coverage Dependence on quality ofSpeed mailing listFlexibility of format Consumer resistanceComplete informationPersonalization

Advantages and Disadvantages of the Various Advantages and Disadvantages of the Various Advertising MediaAdvertising Media

Thank you…Thank you…