Archive for July, 2009

Evaluating advertising effectiveness

Good planning and control of advertising depend critically on measures of advertising effectiveness. Most advertisers try to measure the communication effect of an ad, that is, its potential effect on awareness, knowledge or performance.

Communication effect reaches seeks to determine whether an ad is communicating effectively. Called copy testing, it can be done before an ad is put into media and after it is printed or broadcast.

There are three major method of advertising pre testing. The first is the direct rating method, which asks consumers to rate alternative ads. The second is portfolio tests which asks consumers to view and/or listen to a portfolio of advertisements, taking as much time as they need. Consumers are then asked to recall all the ads and their contents, aided or unaided by the interview. The third is laboratory tests which use equipment to measure consumers physiological reactions- heat beat, blood pressure, pupil dilation, perspiration-to an ad.

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Public relations (PR)

Public relations is define as a variety of programmed designed to improve, maintain or protect a company or product image.

PR department perform the following five activities-

  1. Press Relation:- The aim of pres relations is to place newsworthy information into the news media to attract the attention to a person product or service.

  2. Corporate communication:- This activity covers internal and external communications and promotes understanding of the organization.

  3. Product publicity:- Product publicity involves various efforts to publicize products.

  4. Lobbying:- lobbying involves dealing with legislators and government officials to promote or defeat legislation and regulation.

  5. Counseling:- Counseling involves advising management about public issues and company position and image.

The appeal of public relations is based on its three different qualities-

  1. High creditability:- News stories and features seem more authentic and credible to readers then ads to.

  2. Off guard:– PR can reach many prospects who might avoid sales people and advertisements. The message gets to the buyer as news rather then as sales directed communication.

  3. Dramatization:-PR has, like advertising, a potential for dramatizing a company or product.

Marketing PR can contribute to the following tasks:-

  1. Assist in the launch of new product

  2. Assist in repositioning a mature product

  3. Build up interest in product category

  4. Influence specific target groups

  5. Defend products have encountered public problem

  6. Build the corporate image on its products.

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Sales promotion

Sales promotion consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker and/or greater purchase of particular product services by consumers or the trade.

Whereas advertising offers a reasons to buy, sales promotion offers an incentive to buy. Sales promotion includes tools for consumer promotion; and sales force promotion.

Sales promotions have three different characteristics:-

  1. Communication:- They gain attention and usually provide information that may lead the consumer to the product.

  2. Incentive:- They incorporate some concession, inducement or contribution that gives value to the consumer.

  3. Invitation:- They include a different invitation to engage in the transaction now.

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Major tools in marketing PR

Publication:- These include annual reports, brochures, company newsletter and magazines.

Events:– Companies can draw attention to new products by arranging special events. These include news conference, seminars, outings, sports and cultural sponsorships.

News:- one of the major tasks of PR professional is to find or create favorable news about the company, its products and its people. Getting the media to accept press releases and attend press conferences calls for marketing and interpersonal skills.

Speeches:- Speeches are another tool for creating product and company publicity.

Public service Activity:- Companies improve public goodwill by contributing money and time to good cause. A large company typically will ask executives to support community affairs where their offices and plants are located. In other instances, companies will offer to donate a certain amount of money to a specified cause out of consumer purchases.

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Purpose of Sales Promotion

Sales promotions tools vary in their specific objectives, A free sample stimulate consumer trial, while a free management-advisory service cements a long-term relationship with a retailer.

Sales promotion offer attract brand switches. Brand switchers are primarily looking for low price, good value or premiums. Sales promotions used in markets of high brand similarly produce a high brand similarity produce a high sales response in short run. In market of high brand dissimilarity, sales promotions can alter market shares more permanently. Sales promotions yield faster responses in sales than advertising does. Sales promotions enable the manufacturers to adjust a short term variations in supply and demand. They induce consumers to try new products instead of never straying from their current ones.

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Major consumer- Promotion Tools

  1. Samples: Samples are offers of a free amount or a trial of a product for consumers. The sample might be delivered doors-to-door, sent by mail or found attached to another product.
  2. Coupons: Coupons are certificates entitling the bearer to a stated savings on the purchase of a specific product.
  3. Cash Refund Offers (Rebates): Cash Refund Offer provides a Price reduction after the purchase rather than at a retail shop. The consumer has to produce a proof of purchase to claim refunds.
  4. Price Packs: They are offers to consumers of savings off the regular price of a product.
  5. Premiums (Free Gifts) are merchandise offered at a relatively low cost or free as an incentive to purchase a particular product.
  6. Prizes (Contest, Games): Prizes are offers of the chance to win cash, trips or merchandise as a result of purchasing something. A contest calls for consumers to submit an entity – a single, estimate, suggestion – to be examined by a panel of Judges who will select the best entry.
  7. Patronage Awards: Patronage awards are values in cash or in other forms that are proportional to one’s Patronage of a certain vendor or groups of vendors. Most airlines offer “frequent – flyer planes” providing points for miles traveled that can be turned in for free airline trips.
  8. Free Trails: Free Trials consists of inviting prospective purchasers to try the product without cost in the hope that they will buy the product.
  9. Tie – in – Promotions : Tie – in – Promotions involve two or more brands or companies that team up on coupons, refunds and contest to increase their pulling power.

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