Chapter 15

Chapter 15 - Chapter 15 Advertising and Sales Promotion...

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Chapter 15: Advertising and Sales Promotion o Advertising and sales promotion provide relatively low cost ways to inform, persuade, and activate customers Results are uneven though o Decisions to be made Advertising objectives and what they want to achieve Who is the target audience What kind of advertising to use Which media to use What to say Who will do the work o Look and feel of advertising and sales promotion varies a lot in different countries Also impact sales dimensions o Advertising in big business 2008: advertising spending is about $271 billion US accounts for over 43% of worldwide ad spending On average, though, US corporations only spend about 2.5% of sales on advertising Producers of consumer products generally spend more than producers of business products Advertising doesn’t employ that many people Major expense is for media time and space 24%-TV 22%-direct mail 14%-newspapers In US, only about 460,000 people work directly in advertising industry o Advertising objectives are a strategy decision Advertising objectives should be more specific than personal selling objectives Marketing manager sets overall direction If they want specific results, they should be clearly stated Different objectives affect what type of advertising is best Awareness Interest Evaluation and trial Decision Confirmation o Objectives determine the kinds of advertising needed Product advertising : tries to sell a product Institutional advertising: promotes an organization's image, reputation, or ideas rather than a specific product Focuses on name and prestige of organization or industry Develop goodwill Pioneering advertising: tries to develop primary demand for a product category rather than demand for a specific brand Usually done in early stages of product life cycle Competitive advertising: tries to develop selective demand for a specific brand
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Firm is forced into this as product life cycle moves along to help hold its own against competitors Direct: aims at immediate buying action Indirect : points out product advantages to affect future buying
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Chapter 15 - Chapter 15 Advertising and Sales Promotion...

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