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14-1Advertising&
SalesPromotion14ChapterAdvertisingisthestructuredandcomposednon-personalcommunicationofinformation,usuallypaidforandusuallypersuasiveinnature,aboutorganisations,products,services,ideasbyidentifiedsponsorsthroughvariousmedia.First,advertisingisahighlystructuredformofcommunicationandemploysbothverbalandnon-verbalelements.Second,thefocusofadvertisingisdirectedtogroupsofpeopleratherthantoindividualsandforthisreasonitisnon-personalormasscommunication.Third,mostadvertisingispaidforbysponsorsforthemediatimeorspaceitusestocommunicateitsmessages.Fourth,althoughmostadvertisingmessagesareintendedtobepersuasivetoaccomplishthedesiredsellingfunction,someadsappearonlytoinformpeople,examplesbeinglegalannouncements,changeofaddress,obituaries,etc.,withoutanypersuasiveintent.Fifth,anadidentifiesitssponsor.ProductLifeCycleandAdvertisingThedevelopmentalstageofaproductdeterminestheroleofadvertising.Asproductspassthroughvariousstagesoftheirlifecycle,themannerinwhichtheadvertisingpresentstheproducttotargetaudiencesdependslargelyuponthedegreeofaproduct’sacceptancebyconsumers.Basedontheconceptofproductlifecycle,onemaydifferentiatethreestages: IntroductoryStage CompetitiveStage ReminderStage
TypesofAdvertisingScholarshaveproposedvariousapproachestoclassifyingthevastvarietyofadvertising.Anunderstandingofthesewouldhelpmanagersinchoosingthemostappropriatetypeofadvertisingtoachievetheirobjectives.ConsumerAdvertisingMostnon-classifiedadvertisingisdisplayadvertisingandisfoundthroughoutthenewspaperandonmanymagazinepages.Twotypesofdisplayadvertisinginnewspapersarenationalandlocal. NationalAdvertising Retail(Local)Advertising Co-operativeAdvertising ClassifiedAdsAdvertisingtoBusinessandProfessionThistypeofadvertisingisaimedatre-sellers,andprofessionalssuchas,architects,lawyersanddoctors,etc.Themediausedisdirectmailorprofessionaljournals. TradeAdvertising IndustrialAdvertising ProfessionalAdvertising CorporateorInstitutionalAdvertisingNon-productAdvertising IdeaAdvertising ServiceAdvertisingSurrogateAdvertising
Inadvertisingcontextwhenthelawsofacountrydonotpermitadvertisingofacertainproductcategory,theadvertiserstaketheshelterofbrandextension.ImportantPlayersinAdvertising Advertiser AdvertisingAgencyAtypicalfull-serviceagencyhasfivefunctionaldepartments:accountsmanagement,creativeservices,mediaservices,marketingservices,andadministrationdepartment.Media-buyingservicesspecialiseinbuyingmediaforclients.Industry-focussedagenciesconcentrateoncertainfieldssuchasagriculture,healthcare,drugsandpharmaceuticals,andcomputersetc.MediaOrganisationsCollateralServiceProvidersTargetAudiencesPlanningandManagingAdvertisingAdvertisingplanningandmanagingstepsincludesituationanalysis,identifyingtargetaudience,determiningobjectives,settingbudget,advertisingstrategyimplementation,andevaluation.Inmostcasestheadagency’saccountsexecutivedevelopstheadvertisingplanorcampaign.EffectofAdvertisingonConsumersBehaviouralDimensions
StepsTowardPurchase
AdvertisingforVariousStages
Conative
Therealmofmotives.Adsstimulateordirectdesires.
AffectiveTherealmofemotions,attitudes,andfeelings.
CognitiveTherealmofthoughts.Beliefs.Purchase
Conviction
Preference
Liking
Knowledge
AwarenessPOPadvertising.TestimonialsPrice/qualityappeals
Comparativeads.Argumentativecopy.
“Image”copy.Status,glamourappeals.
Descriptivecopy.Slogans,jingles,etc.
Adrepetition,teaserads.
(FigurebasedonLavidgeandSteinerModel)Marketersshouldconsidersomespecificfactorswhensettingtheadvertisingbudget: Productlifecyclestage Marketshare Intensityofcompetitionandclutter Advertisingfrequency ProductdifferentiationAdvertisingStrategyImplementationAdvertisingstrategyhasfourimportantelementsofcreativemix: identifyingthetargetmarketanddefiningtheaudience, decidingtheproduct’spositioning, developingadvertisingmessage,and selectingthecommunicationmedia.AdvertisingMessageGreatadvertisingresultsbycreatingacombinationof“adliking”andits“strategicrelevance.”Whilethetextandthevisualscarrytheadmessage,behindthecreativeteam’schoiceoftone,words,andideas,liesanadvertisingstrategy.Accountexecutivefromtheadvertisingagencypreparesacreativebrieftocommunicatethestrategytothecreativeteam.Itisasimplewrittenstatementofthemostsignificantissuestoconsiderandguidetheteaminthedevelopmentofanadvertisementorcampaign.Thestatementaddressesthefollowingissues: Who? Why? What? Where,when,andhow? Whatstyle,approach,ortone?Ogilvyusedprestigiousindividualstoconveythedesiredimagefortheproductinsomeofhismostwell-knowncampaignsandwhenpossible,hewouldusetestimonialsfromcelebrities.Heprescribedthefollowingelevencommandmentsforcreatingadvertisingcampaigns:1. Whatyousayismoreimportantthanhowyousayit.2. Unlessyourcampaignisbuiltaroundagreatidea,itwillflop.3. Givethefacts.Theconsumerisn’tamoron;sheisyourwife.Youinsulther intelligenceifyouassumethatameresloganandafewvapidadjectives will
persuadehertobuyanything.Shewantsalltheinformationyoucan giveher.4. Youcannotborepeopleintobuying.Wemakeadvertisementsthatpeople wanttoread.Youcan’tsavesoulsinanemptychurch.5. Bewellmannered,butdon’tclown.6. Makeyouradvertisingcontemporary.Cont…7. Committeescancriticizeadvertisements,buttheycannotwritethem.8. Ifyouareluckyenoughtowriteagoodadvertisement,repeatituntilit stops
pulling.9. Neverwriteanadvertisement,whichyouwouldn’twantyourfamilyto read.Good
productscanbesoldbyhonestadvertising.Ifyoudon’tthink theproductisgood,
youhavenobusinesstobeadvertisingit.Ifyoutell lies, orweasel,youdoyour
clientadisservice,youincreaseyourloadofguilt, andyoufantheflamesofpublicresentmentagainstthewhole businessof advertising.10. Theimageandthebrand:itisthetotalpersonalityofabrandratherthan any
trivialproductdifference,whichdecidesitsultimatepositioninthe market.11. Don’tbeacopycat.Nobodyhaseverbuiltabrandbyimitatingsomebody elseinadvertising.DavidOgilvy,ConfessionsofanAdvertisingMan(Portionsofsomepointsexcluded).RosserReeves:
RosserReevesofTedBatesagency(nowpartofSaatchigroup)developedtheconceptofUniqueSellingProposition(USP).
LeoBurnett:
Hisapproachtodeterminingthemajorsellingideaistermedas“Inherentdrama.”Thisapproachfocusesonfindingouttheproductattributethatmadethemanufacturertoproduceit,andtheproductbenefitthatmotivatestheconsumertopurchaseit.AdvertisingAppeals:
Theadvertisingappealisthecentralmessagetobeusedinthead.RationalAppeals:
Theseappealsaddresstheconsumer’sselfinterestandfocusonnegativelyoriginatedmotives(problemremovalorproblemavoidance)ashappenswhenwerunoutofsomethingandexperienceanegativementalstate.EmotionalAppeals:
Emotionalappealsrelatetocustomers’socialandpsychologicalneedsandstiruppositiveornegativeemotionsthatcanmotivatepurchaseofaproductorservice.Therearemanywaysinwhichanadvertisingmessagecanbepresented. Factualmessageorstraightsell Scientificortechnicalevidence Testimonial Demonstration Comparison Sliceoflife(problemsolution) Lifestyle Fantasy Animation Humour CombinationMediaPlanMediaplanninginvolvesaseriesofdecisionsindeliveringtheadmessagetothelargestnumberofthetargetaudienceinthemosteffectivemanneratthelowestcost.Threeimportantstepsinvolvedaremediaobjectives,mediastrategy,andmediaselection.Aftercloselyanalysingthemediahabitsoftargetaudience,geographicarea,andmediatiming,theplannersformulateaparticularcombinationthatwouldservethereach,frequency,andimpactobjectivessuccessfullyandeffectively. Mediavehicle Mediareach Mediafrequency Mediaimpact MediaschedulingSelectionamongMajorMediaTypesMediaplannersconsidercertainfactorsinmakingtheirchoicesamongmajormediatoachievethedesiredreach,frequency,andimpact.Mediaplannersconsiderthefollowingfactors: TargetAudienceMediaHabits ProductCharacteristics MessageCharacteristics MediaCostsGeneralCharacteristicsofMajorMediaTypesMedia
Advantages
Disadvantages
Television
Offersmasscoverage.Highlevelofreach.Combinedimpactofsight,sound,andmotion.Prestigevalue.Lowcostperexposure.Attractsattention.Offerslowselectivity.Shortspanofmessagelife.Highcost.Highproductioncosts.Createsadvertisingclutter.Wastecoverage.Radio
Localcoverage.Lowercost.Highfrequency.Focusedsegmentselection.Lowproductioncosts.Onlyaudio.Noise.Lowonattentiongetting.Messageshortlived.Newspapers
Masscoverage.Lowcost,largespace.Shortleadtimeforadplacing.Adpositionchoicepossible.Goodforcurrentads.Readercontrolsexposure.Couponscanbeinserted.Shortlifeofadvertisement.Clutter.Lowattentiongetting.Poorproductionquality.Selectiveexposure.Cont…GeneralCharacteristicsofMajorMediaTypesMagazines
Potentialforfocusedsegmentation.Verygoodproductionquality.Longevityofmessage.Highinformationcontent.Morereaderspercopy.Longleadtimeforadplacing.Onlyvisual.Lowfrequency.Lackofflexibility.Outdoor
Goodforspecificlocation.Highrepetition.Highvisibility.Shortexposuretime.Shortmessage.Poorimage.Directmail
Highlevelofselectivity.Readercontrolsexposure.Highinformationcontent.OpportunityforrepeatexposuresHighcostpercontactClutter.Oftenthrownasjunkmail.Internet
Usercontrolled.Increasedattentionandinvolvement.
Limitedcreativecapabilities.
EvaluationofAdvertisingEffectivenessAdvertisingagenciesusuallypretestadsorcommercialsandalsoconductpost-testing.Somemajorpre-testingandpost-testingmethodsarementionedbriefly.Pre-TestingMethodsPrintAdvertising DirectQuestioning FocusGroup PortfolioTest Order-of-MeritTestCont…Pre-TestingMethodsTelevisionandRadioAdvertising CentralLocationTest ClutterTest TrailerTestPost-TestingMethods Recall Recognition InquirySalesPromotionSalespromotionutilisesavarietyofincentivetoolsforapredetermined,limitedperiodoftimeinordertostimulatetrial,increaseconsumerortradedemand,andmotivateandrewardsalesforce,suchassamples,coupons,discounts,premiums,refundsandrebates,contestandsweepstakes,tradedeals,andsalescontestsforsalespeopleetc.Inmostcases,theobjectivesaregenerallyshort-termsalesrelatedratherthanlong-termbrandbuilding.ReasonsforSalesPromotionGrowthTheroleofsalespromotionhasincreaseddramaticallywithinthelast15years. IntenseCompetition BrandProliferation DecliningBrandLoyalty GrowingPowerofResellers AdvertisinghasBecomeLessEffectiveSalesPromotionToolsManufacturerannouncedconsumerpromotionsconstitute“pull”strategyandretailerpromotionsarebasedon“push”strategy.Salespromotionsaremoreeffectivewhencombinedwithadvertisingand“pull-push”strategiesareusedatthesametime.ConsumerPromotionsSalespromotionsdirectedatend-usersarecalledconsumersalespromotions. PriceDiscount(alsocalledcents-off) Bonus-Pack Samples Premiums RefundorRebate(thetermsareusedinterchangeably) Frequent-UserReward Coupons ConsumerContests,,andGames ExchangeorBuy-BackOffers Point-of-PurchaseDisplaysTradePromotionsTradepromotionsaredirectedatresellers(distributors,dealers,wholesalers,andretailers).Themainobjectivesoftradepromotionsinclude: Buildstrongrelationswithchannelmembers. Tostimulatein-storemerchandisingsupport,suchasarranging displays,shelfspace,featureadvertisingetc. Gaindistributionofnewproducts. Gainsupportforexistingbrands. Manipulatelevelsofinventoryheldbywholesalersandretailers. TradeAllowances BuyingAllowances FreeGoodsCont… SlottingAllowances(alsocalledstocking,orintroductoryallowance) Buy-BackAllowance AdvertisingAllowances DisplayAllowance ContestsandIncentives CooperativeAdvertising DealerLoader TrainingProgrammeTradePromotionsInternetPromotionsThenumberofcompaniesusingInternetpromotionsisincreasing.Contestsandsweepstakesareamongthemostcommonlyusedtomotivatepeopletovisitmarketers’Internetsites.PromotionsthatBlurtheLineSomepromotionssuchasspecialityadvertising,eventmarketingandsponsorshipareactivitiesthatblurthelinebetweenadvertising,salespromotion,andpublicrelations. SpecialityAdvertising EventMarketingandSponsorshipSalesPromotionPlanningGuidelinesPlanningprocessstartswithsituationanalysis.Tostartwith,thepromotionplannersmustfirstconsiderthecorporatepolicywithregardtosalespromotion.JosephS.MairhasrecordedonesuchpolicystatementinHandbookofSalesPromotion,ed.StanleyM.Ulanoff.Thepolicysays:
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