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Chapter 15

Chapter 15 BU352.docx

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Dave Ashberry

BU352 Chapter 15 – Advertising, Sales Promotions, and Personal Selling Week 10 Advertising -There is not always a direct link between a particular marketing communication and a consumer’s purchase The AIDA Model -AIDA model – a common model of the mental states through which consumers move as a result of marketing communications: awareness leads to interest, which leads to desire, which leads to action Awareness -Brand awareness refers to a potential customer’s ability to recognize or recall that the brand name is a particular type of retailer or product/service -Aided recall – occurs when consumers recognize the brand when its name is presented to them -Top-of-mind awareness – a prominent place in people’s memories that triggers a response without them having to put any thought into it – Ex. Hear RIM – think Blackberry Interest -Once the consumer is aware that the product exists, communication must work to increase their interest level -Marketers must ensure the ads message includes attributes that are of interest to the target audience Desire -The goal should be to move the customer from “I like it” to “I want it” Action -The ultimate goal is to drive the receiver to action -If the message has caught consumers’ attention and made them interested enough to consider the product as a means to satisfy a specific desire of theirs, they likely will act on that interest by making a purchase The Lagged Effect -Lagged effect – a delayed response to a marketing communication campaign Advertising Objectives -Advertising is not free -Advertising must be carried by some medium -Legally, the source of the message has to be known -Advertising represents a persuasive form of communication, designed to get the consumer to take some action -Advertising encompasses an enormous industry and clearly is the most visible form of marketing communications -To get you to remember their ad and the brand, advertisers must first get your attention -All advertising campaigns aim to achieve certain objectives: to inform, persuade, and remind customers Informative Advertising -Informative advertising – communication used to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase Persuasive Advertising -Persuasive advertising - communication used to motivate consumers to take action -In later stages, persuasive advertising may be used to reposition an established brand by persuading BU352 Chapter 15 – Advertising, Sales Promotions, and Personal Selling Week 10 consumers to change their existing perceptions of the advertised product Reminder Advertising -Reminder advertising – communication used to remind consumers of a product or to prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle Focus of Advertisements -Some companies will focus their efforts on attracting awareness -Product-focused advertisements – used to inform, persuade, or remind consumers about a specific product or service -Institutional advertisements – used to inform, persuade, and remind consumers about issues related to places politics, an industry, or a particular corporation -Public Service Announcement (PSA) – advertising that focuses on public welfare and generally is sponsored by non-profit institutions, civic groups, religious organizations, trade associations, or political groups; a form of social marketing -Social marketing – the application of marketing principles to a social issues to bring about attitudinal and behavioural change among the general public or a specific population segment -Regardless of whether the advertising campaign’s objective is to inform, persuade, or remind, or to focus on a particular product or the institution in general, each campaign’s objectives must be specific and measureable Regulatory and Ethical Issues in Advertising -In Canada, the regulation of advertising involves a complex mic of formal laws and informal restrictions designed to protect consumers from deceptive practices -Many federal and provincial laws, as well as a wide range of self-regulatory agencies and agreements, affect advertising -Many product categories fall under self-regulatory restrictions or guidelines -Puffery – the legal exaggeration of praise, stopping just short of deception, lavished on a product -Some companies are criticized for their large advertising budgets – consumers often complain that prices would be lower if companies didn’t spend so much money promoting their products Stealth Marketing -A strategy used to attract consumers that employs promotional tactics which deliver a sales message in unconventional ways, often without the target audience knowing that the message even has a selling intent -Marketers have also begun to employ actual consumers to be salespeople for their brands -Viral marketing – a marketing phenomenon that encourages people to pass along a marketing message to other potential consumers -Ex. McDonalds food for neopets Sales Promotion -Sales promotions are special incentives or excitement-building programs that encourage consumers to purchase a particular product or service, typically used in conjunction with other advertising or personal selling programs -Many sales promotions such as free samples, attempt to build short-term sales -The tools of any sales promotion can be focused on either channel members, or end-user consumers BU352 Chapter 15 – Advertising, Sales Promotions, and Personal Selling Week 10 Consumer Sales Promotions Promotion Objective Advantage Disadvantage Coupons Stimulate demand -Encourages retailer support -Has low redemption rates -Allows for direct tracing of sales -Has high cost Deals Encourage trial -Reduces consumer risk -May reduce perception of -Retaliates against competitive actionvalue Premiums Build goodwill -Increases perception of value -Results in consumers that buy for premium not the product -Has to be carefully managed Contests Increase consumer -Generates excitement -Requires creativity involvement -Must be monitored Sweepstakes Encourage higher -Minimizes brand switching among -Sales often decline after consumption existing consumers Samples Encourage trial -Offers direct involvement -Has high cost to the firm Loyalty programs Encourage -Creates loyalty -Has high cost to the firm repurchase POP displays Increase brand trial -Provides high visibility -Is difficult to get a good -Provides in-store support location in the store -Can be costly to the firm Rebates Stimulate demand -Increases value perception -Is easily copied by competitors -May advance future sales Product placement Demonstrate -Displays products non-traditionally -May not provide firm with product uses -Introduces new products control over display -Can result in product being overshadowed -Deal- a type of short-term price
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