Unit 1 of 1(Advertising Introduction)

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A D V E R T I S I N G & S A L E S M A N A G E M E N T Advertising and Communication Mix Definition Objectives Nature Functions Types of advertising AD vs. other Communication Relationship with PLC Unit – I / Part – 1

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ADVERTISING SALES PROMOTION PERSONAL SELLING PUBLICITY / PUBLIC RELATION DIRECT MARKETING ANY PAID FORM OF NON-PERSONAL COMMUNICATION AND PROMOTION OF IDEAS, GOODS OR SERVICES, BY AN IDENTIFIED SPONSOR. VARIABLES ELEMENTS OF PROMOTION - MIX

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ADVERTISING SALES PROMOTION PERSONAL SELLING PUBLICITY / PUBLIC RELATION DIRECT MARKETING IT ENCOMPASSES (INCLUDES) : CONSUMER PROMOTION TRADE PROMOTION BUSINESS & SALES FORCE PROMOTION VARIABLES ELEMENTS OF PROMOTION - MIX IT CONSISTS OF VARIOUS INCENTIVES DESIGN TO STIMULATE FASTER OR GRATER PURCHASE OF PARTICULAR PRODUCT OR SERVICE FOR A SHORT PERIOD OF TIME.

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ADVERTISING SALES PROMOTION PERSONAL SELLING PUBLICITY / PUBLIC RELATION DIRECT MARKETING VARIABLES ELEMENTS OF PROMOTION - MIX FACE – TO – FACE INTERACTION WITH ONE OR MORE PROSPECTIVE PURCHASERS, FOR THE PURPOSE OF MAKING SALES.

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ADVERTISING SALES PROMOTION PERSONAL SELLING PUBLICITY / PUBLIC RELATION DIRECT MARKETING VARIABLES ELEMENTS OF PROMOTION - MIX THESE PROGRAMMES DESIGNED TO PROMOTE AND / OR PROTECT COMPANY’S IMAGE, ITS PRODUCTS, INCLUDING PRODUCT LITERATURE, EXHIBITION AND ARTICLES ABOUT ORGANISATIONS’ PRODUCTS IN PROFESSIONAL OR IN-HOUSE NEWSLETTERS.

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ADVERTISING SALES PROMOTION PERSONAL SELLING PUBLICITY / PUBLIC RELATION DIRECT MARKETING VARIABLES ELEMENTS OF PROMOTION - MIX It is the process by which, a firm approaches its customer on a one – to –one basis and markets its products directly to them. The use of e-mail, telephone, or any other non-personal contact tools to communicate or solicit a response from specific prospect. Many forms: telephone marketing, direct mail, online marketing, etc. Four distinctive characteristics: Nonpublic Immediate Customized Interactive Well-suited to highly targeted marketing efforts

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ADVERTISING ANY PAID FORM OF NON-PERSONAL COMMUNICATION AND PROMOTION OF IDEAS, GOODS OR SERVICES, BY AN IDENTIFIED SPONSOR . - by A.M.A. ADVANTAGE COST EASE OF REPETITION HIGHER LEVEL OF CREATIVE FLEXIBILITY IMAGE BUILDING UP DISADVANTAGE COSTLY FEEDBACK NOT POSSIBLE DIFFICULT IN MOTIVATING DUE TO FIXED IMAGE

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OBJECTIVE OF AD PROVIDING INFORMATION TO THE NEEDY. STIMULATING DEMAND. DIFFERENTIATING PRODUCTS. REMINDING CURRENT CUSTOMER. COUNTERING COMPETITORS. PERSUADING DECISION MAKERS. INFLUENCING PUBLIC BEHAVIOUR.

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NATURE OF ADVERTISING Need to consider the following issues: Does the product possess unique, important features to focus on USP Are the hidden qualities important to the buyers Is the general demand trend for the product adequate Is the market potential for the product adequate Is the competitive environment favorable Is the organization able & willing to spend money to launch an AD campaign

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USE / FUNCTIONS OF ADVERTISING Informing Persuading Reminding Adding Value Assisting Other Company Efforts

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USE / FUNCTIONS OF PROMOTION Makes consumers aware , educates them about the features and benefits, and facilitates the creation of positive brand images Facilitates the introduction of new brands and increases demand for existing brands Informing

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USE / FUNCTIONS OF PROMOTION Persuading Persuades customers to try advertised products and services Primary demand : Secondary demand :

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USE / FUNCTIONS OF PROMOTION Reminding Keeps a company’s brand fresh in the consumer’s memory Influences brand switching

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USE / FUNCTIONS OF PROMOTION Adding Value Three basic ways by which companies can add value innovating improving quality altering consumer perceptions Advertising adds value to brands by:

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USE / FUNCTIONS OF PROMOTION Advertising is just one member of the marketing communications team Sometimes, an assister that facilitates other company efforts in the marketing communications process Examples? Assisting Other Company Efforts

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Primary functions – to influence people to use the product or service more extensively and to buy in greater quantity Secondary functions – to build goodwill; to familiarize customers with a product or service Psychological functions – study human behavior – A.I.D.A. Economic functions – deals with production; distribution; consumption and exchange of wealth, i) It is productive in economic sense, ii)Assists in consumption Social functions – ads make some effects on social life. Advertising touches the lives of people and influences the decision of the people and makes them happy and healthy etc USE / FUNCTIONS OF ADVERTISING

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DEMAND TYPE OBJECTIVE BASED AUDIENCE BASED TYPES CLASSIFICATION / TYPES OF ADVERTISING Primary (Product Based) Selective (Brand Based)

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DEMAND TYPE OBJECTIVE BASED AUDIENCE BASED TYPES CLASSIFICATION / TYPES OF ADVERTISING Institutional Product Public service advertising – (i) Informative (ii) Persuasive (iii) Reminder

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DEMAND TYPE OBJECTIVE BASED AUDIENCE BASED TYPES CLASSIFICATION / TYPES OF ADVERTISING Consumer Industrial Non-profit

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INSTITUTIONAL PRODUCT COMPETITIVE COMPARATIVE TYPES CLASSIFICATION / TYPES OF ADVERTISING Institutuioal AD Aimed at creating an image Enhancing reputation Building goodwill Advocating an idea The philosophy of an organization Example Tata Steel Product advertising is the art of building and maintaining product awareness with potential buyers. Competitive Advertising - advertising which points out features of a brand which may not be available in other brands but does not directly name a competitor. Comparative advertising , also known as ‘knocking copy’, is loosely defined as advertising where “the advertised brand is explicitly compared with one or more competing brands and the comparison is oblivious to the audience

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TYPES CLASSIFICATION / TYPES OF ADVERTISING DIRECT – ACTION INDIRECT – ACTION REMINDER REMINDER Designed to reinforce Re-establish previous Promotional efforts used to remind the public of the brand name Creating urge within the consumer to buy the product over and over again. Direct Action It instigates the buyer to take immediate action. Here the response of the prospective customer is expected in a +ve form. Indirect Action In this case the advertiser is not keen on immediate action. The objective is to build the reputation of the advertised brand.

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ADVERTISING vs. OTHER FORMS OF COMMUNICATION PROMOTION METHOD TARGET COST TO COMPANY STATUS OF SPONSOR CHANNEL ADVERTISING Groups Payment at media Identified Mass media PERSONAL SELLING Individuals Results in cost of the organization Identified Sales person SALES PROMOTION Groups Results in cost of the organization Identified Sales PUBLICITY Groups Free Non sponsor Mass media PUBLIC RELATIONS Groups Results in cost of the organization Identified Mass media

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Economic Aspect of AD Public Awareness. Employment Opportunity. Necessary Information & Productivity Generate Brand Equity. Stimulating N P D. Supports the Media Distribution Cost Reduction

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Social Aspect of AD Ad & Materialism Stereotyping of woman Harmful Products Offensive & Bad Test Shock Ad Effect on Children

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PROMOTION METHOD INTRODUCTION GROWTH MATURITY DECLINE 1. AD EXTENSIVE EXTENSIVE MODERATE LIMITED 2. SALES PROMOTION EXTENSIVE EXTENSIVE MODERATE NONE 3. PERSONAL SELLING EXTENSIVE EXTENSIVE MODERATE LIMITED 4. PUBLIC RELATION EXTENSIVE MODERATE NONE NONE AD Vs OTHER FORMS OF COMMUNICATION