Description
In June 1836, French newspaper La Presse was the first to include paid advertising in its pages, allowing it to lower its price, extend its readership and increase its profitability and the formula was soon copied by all titles.
Sales Promotion - Week #8 Other Advertising Methods
• Advertising Strategy Analysis • Other Advertising Methods • Where are we?
Advertising Strategy Analysis
• Understand the situation • Sales Objectives • Communications Objectives
Situational Analysis
• Product
– Features, benefits, advantages, uses – – – – – –
Situational Analysis: Example
• Product: Biscaro Brothers Bruttini Cookies
All Natural Gluten-free Kosher Gourmet Almonds are healthy Goes with coffee, tea, ice cream, wine, or alone
• Market Segments
– Whom do you want to reach?
• Competition
– Positioning – who do they sell to? – How much/where do they advertise?
• Market Segments
– Gourmet – “All-Natural” consumer – Upscale snackers
• Responses being sought
– Actions! – trial, repurchase, increased usage, etc.
Situational Analysis: Example Continued
• Competition
– Positioning:
• Specialty/Natural Stores
Sales Objectives
• Units • Revenue • Problems:
– Very difficult to measure – Carryover effect – External factors
– Advertising
• Very little
• Responses being sought
– Initial trial
1
Communications Objectives
• In terms of % of target audience
– – – – – Create Awareness Create Interest Create Desire Create Action Maintain Action
Communications Objectives – Example
• If target market is 20,000
– Awareness: 20%
• 20% are aware – 4,000
– Interest: 10%
• 10% actually interested – 2,000
– Desire: 5%
• 5% desire the product – 1,000
– Action: 0.5%
• 0.5% take action = 100
Objectives
• Sales Objectives
– 1,500 cases in next 3 months
• Communications Objectives
– – – – Awareness: 40% Interest: 20% Desire: 10% Action: 5%
Other Advertising Methods
• If each consumer purchases 1 unit:
– 1,500 cases = 18,000 units – If 18,000 is 5%, then must hit 144,000 people in target
Direct Mail
• More and more people shop at home
– Why?
Advantages of Direct Mail
• Selectivity
– Demographics and/or Psychographics
• Where do lists come from?
– Company records – Exchange with other companies – List brokers
• Type of lists • Ease of obtaining lists
• Flexibility
– As many or as few as you want – Choose format/price appropriately
• Personal Contact
– Direct to consumer – Personalized
• Can achieve many goals at the same time
2
Types of Direct Mail
• • • • • • Catalogs Sales Letters Postcards Statement Enclosures Self-mailing folders Broadsides
Cost per Response (CPR)
• The amount of money spent per person who responds NOT the cost per person who receives the promotion
Example: Cost/catalog: Design costs: # of catalogs sent: response rate: So: Cost of promotion: Responses: $0.39 $20,000 925,000 1.5% (925,000 * $0.39) + $20,000 = $380,750
925,000 * 1.5% = 13,875
Cost/response: $380,750/13,875 = $27.44
Internet
• Banner Ads
– CPM: Cost per thousand impressions – CPC: Cost per click
• Click-through rate
Magazines
• More appropriate for manufacturers
– Retailers more likely to advertise in local media
• Pop-up Ads • Spam (junk mail) • Sponsorship
• Usually much more targeted • May have regional versions • Easy to find out circulation and readers
Out-of-Home Advertising
• Billboards • Posters
– Public Transportation – Taxis – Etc.
In-Store
• • • • • Packaging Posters Shopping carts Shelves Where else?
• Murals • Can be very image focused
3
Projects: Where are we?
Packaging Design Goals done Packaging almost done or done Advertising Strategy done Rough ads done
– Pricing – Publicity
Rest of Quarter
• Remaining Topics
• Projects
– – – – Finish packaging Finish Advertising Strategy 3 completed Ads Pricing and Promotions schedule
Present Your Work
• • • • Packaging Design Profile Packaging Advertising Strategy Rough Ads
HOMEWORK:
• Read Chapter 15 (Publicity: A Different Drummer) • Finish Packaging • Finish Advertising Strategy • Continue to work on 3 Ads
Preview of Next Week
• • • • Publicity Pricing Review project requirements Work on projects in class!
4
doc_536976009.pdf
In June 1836, French newspaper La Presse was the first to include paid advertising in its pages, allowing it to lower its price, extend its readership and increase its profitability and the formula was soon copied by all titles.
Sales Promotion - Week #8 Other Advertising Methods
• Advertising Strategy Analysis • Other Advertising Methods • Where are we?
Advertising Strategy Analysis
• Understand the situation • Sales Objectives • Communications Objectives
Situational Analysis
• Product
– Features, benefits, advantages, uses – – – – – –
Situational Analysis: Example
• Product: Biscaro Brothers Bruttini Cookies
All Natural Gluten-free Kosher Gourmet Almonds are healthy Goes with coffee, tea, ice cream, wine, or alone
• Market Segments
– Whom do you want to reach?
• Competition
– Positioning – who do they sell to? – How much/where do they advertise?
• Market Segments
– Gourmet – “All-Natural” consumer – Upscale snackers
• Responses being sought
– Actions! – trial, repurchase, increased usage, etc.
Situational Analysis: Example Continued
• Competition
– Positioning:
• Specialty/Natural Stores
Sales Objectives
• Units • Revenue • Problems:
– Very difficult to measure – Carryover effect – External factors
– Advertising
• Very little
• Responses being sought
– Initial trial
1
Communications Objectives
• In terms of % of target audience
– – – – – Create Awareness Create Interest Create Desire Create Action Maintain Action
Communications Objectives – Example
• If target market is 20,000
– Awareness: 20%
• 20% are aware – 4,000
– Interest: 10%
• 10% actually interested – 2,000
– Desire: 5%
• 5% desire the product – 1,000
– Action: 0.5%
• 0.5% take action = 100
Objectives
• Sales Objectives
– 1,500 cases in next 3 months
• Communications Objectives
– – – – Awareness: 40% Interest: 20% Desire: 10% Action: 5%
Other Advertising Methods
• If each consumer purchases 1 unit:
– 1,500 cases = 18,000 units – If 18,000 is 5%, then must hit 144,000 people in target
Direct Mail
• More and more people shop at home
– Why?
Advantages of Direct Mail
• Selectivity
– Demographics and/or Psychographics
• Where do lists come from?
– Company records – Exchange with other companies – List brokers
• Type of lists • Ease of obtaining lists
• Flexibility
– As many or as few as you want – Choose format/price appropriately
• Personal Contact
– Direct to consumer – Personalized
• Can achieve many goals at the same time
2
Types of Direct Mail
• • • • • • Catalogs Sales Letters Postcards Statement Enclosures Self-mailing folders Broadsides
Cost per Response (CPR)
• The amount of money spent per person who responds NOT the cost per person who receives the promotion
Example: Cost/catalog: Design costs: # of catalogs sent: response rate: So: Cost of promotion: Responses: $0.39 $20,000 925,000 1.5% (925,000 * $0.39) + $20,000 = $380,750
925,000 * 1.5% = 13,875
Cost/response: $380,750/13,875 = $27.44
Internet
• Banner Ads
– CPM: Cost per thousand impressions – CPC: Cost per click
• Click-through rate
Magazines
• More appropriate for manufacturers
– Retailers more likely to advertise in local media
• Pop-up Ads • Spam (junk mail) • Sponsorship
• Usually much more targeted • May have regional versions • Easy to find out circulation and readers
Out-of-Home Advertising
• Billboards • Posters
– Public Transportation – Taxis – Etc.
In-Store
• • • • • Packaging Posters Shopping carts Shelves Where else?
• Murals • Can be very image focused
3
Projects: Where are we?
Packaging Design Goals done Packaging almost done or done Advertising Strategy done Rough ads done
– Pricing – Publicity
Rest of Quarter
• Remaining Topics
• Projects
– – – – Finish packaging Finish Advertising Strategy 3 completed Ads Pricing and Promotions schedule
Present Your Work
• • • • Packaging Design Profile Packaging Advertising Strategy Rough Ads
HOMEWORK:
• Read Chapter 15 (Publicity: A Different Drummer) • Finish Packaging • Finish Advertising Strategy • Continue to work on 3 Ads
Preview of Next Week
• • • • Publicity Pricing Review project requirements Work on projects in class!
4
doc_536976009.pdf