Lecture By Prof. Dr. MAK Chishty

Introduction to Advertising and Promotion

This is me

Dr.M. Azam KhanEducation: Ph.D. (1994), From USA, MBA. from Holland; Home town: Lahore, (youngest of Five boys)Employment: 25 Years of practical marketing in the field of FMCG with leading National and Multinationals in Pakistan, Central Asian States and Middle east countries.Research: Selling premium price products in low income markets.Favorite Food: All Pakistani dishes Favorite Sport to Watch: Cricket (1st); Hockey(2nd)

How to contact me Phone: +92-21-34619310 Cell: 0321-5335323 Email: getmyself@myself.com Office hrs: Sunday to Saturday follow students hours.

The Marketing & Promotional Mixes

Product or Service Pricing Policy Distribution Method Promotional Mix

– Advertising– Publicity– Personal Selling– Sales Promotion

Uses of Advertising

To Promote Products & Organizations

To Stimulate Primary & Selective Demand

To Offset Competitive Advertising To Make Personal Selling More

Effective To Increase the Uses of a Product To Remind and Reinforce

Customers

Advertising Versus Publicity

AdvertisingPaid, sponsor-identified, nonpersonal (media)

communications.

PublicityNon-paid, unsponsored, nonpersonal (media)

communications.

Advertising Versus Publicity

Great Control Little

Lower Credibility Higher

Achievable ReachUndetermined

Scheduleable Frequency Low

Specific Cost Unspecified

High Flexibility Low

Specifiable Timing Tentative

Advertising Attribute Publicity

Publicity Vehicles

NEWS RELEASES: Single-page news stories sent to media who might print or broadcast the content.

FEATURE ARTICLES: Larger manuscripts composed and edited for a particular medium.

CAPTIONED PHOTOS: Photographs with content identified and explained below the picture.

PRESS CONFERENCES: Meetings and presentations to invited reporters and editors.

SPECIAL EVENTS: Sponsorship of events, teams, or programs of public value.

Sales Promotion Uses

Introduce new products. Get existing customers to buy more. Attract new customers. Combat competition. Maintain sales in off season. Increase retail inventories. Tie in advertising and personal selling. Enhance personal selling efforts.

Modes of Direct Marketing

Direct Mail Advertising Direct Response Advertising Outbound & Inbound Telemarketing Cataloging The Internet

Objectives Affect the Promotional Mix

Individual Sales Customer Loyalty Company Image Brand Image Store Patronage Service Contract

Objectives Affect the Promotional Mix

Inquiry Visitation Product Trial Prescription Recommendation Adoption

Individual Sales Customer Loyalty Company Image Brand Image Store Patronage Service Contract

Allocation of the Promotional Mix

Contact Frequency Mode of Contact Intensity of Contact Geographic Concentration Innovation Rate New and Repeat Buyer Buying Decision After Service

Consumer Information Processing

The Mind’s Machinery

A Communications Dilemma

Consumers overloaded with informationexposed to 300 ads per day, over 100,000 per

year

Besides that, they probably don’t care very much in the first place

So how do you communicate with overloaded, uninvolved consumers?

The Agenda

Explore the route marketing messages must travel to register in the consumer’s mind

Note the cognitive obstacles that stand in the way

Discuss the cognitive structures that give meaning to brands

Stimulus - Response Models

The mind is a “black box”– what happens inside is irrelevant

S - R models would account for consumer response to database marketing efforts– mailing is stimulus– buying is response– inducement is reinforcement

The Psychology of Conditioning

Classical conditioning theorists– Pavlov– Watson

Skinner and operant conditioning

Brands

Brands are concepts inside the consumer’s mind

How are they created?

S - O - R Models

Cognitive models seek to understand what goes on “inside the black box”

Guiding analogy for information processing psychology is the computer

The Computer Analogy

Many similarities between computer and consumer information processing– input/output devices– processing unit– memory

Development of cognitive science, AI

Elements of Memory

Sensory

Register

Short-term

Memory

(STM)

Long

Term

Memory

(LTM)

Stimuli

Selective Perception

Selective exposure Selective attention “Slippage” a serious problem

Long-term Memory

Unlimited capacity Permanent store of information A structure of nodes (or concepts) and

linkages