Ch 16- Advertising, Sales, Promotion and Public Relations

advertising

any paid form of nonpersonal communication by an identified sponsor about an organization or a product

product advertisement

advertisement that focuses on selling a product

institutional advertisement

advertisement designed to build goodwill or a positive image for an organization rather than to promote a specific product

pioneering (or informational) advertisement

advertisement used to launch a new product category by informing people what a product is, what it can do, and where it can be found

-used during the introductory stage of the product cycle

-focuses on developing primary demand or demand for the product class

competitve (or persausive) advertisement

advertisement that shows a brands strengths relative to those of competitors

reminder advertisement

advertisement used to reinforce previous knowledge for a product

-used during the maturity stage of their product life cycle

-effective for products that have a well-recognized position

reinforcement advertisement

used to assure users of the product that they made the right choice

advocacy advertisement

states a companys position on an issue

pioneering institutional advertisements

used to announce what a companys is, what it can do, or where it is located

competitve institutional advertisement

promotes the advantage of one product class over another

-used in markets where different product class compete for the same buyers

reminder institutional adverstisements

reinforce previous knowledge of a company or organization

sales promotions can influence

-brand loyalty

-perceptions of quality

-purchase intentions and sales

major sales promotions:

-consumer-oriented sales promotions

-trade oriented sales promotions

consumer-oriented sales promotion

sales tools used to support a company’s advertising and personal selling directed to ultimate consumers

-includes deals, coupons, rebates, loyalty programs, samples, premiums, contests, sweepstakes, point of purchase displays, and product placements

deals

short-term price reductions used to increase trial among potential customers, increase repeat purchases or respond to competitive actions

-deals reduce consumer risk but can also reduce perceived value

-unlike coupons and rebates, deals do not require additional actions by consumers to receive the discount