TOPIC 3 - ADVERTISING AND SALES PROMOTION

DPM40093

Integrated
Marketing
Communications

CHAPTER 3

CHAPTER 3

ADVERTISING
AND

SALES PROMOTION

Chapter 3 – Part 1
Advertising

01 02

The Definition of The Advertising
Advertising Objectives

03

The Types of
Advertising Media



Definition

Any paid form of non-personal presentation
and promotion of ideas, goods, or services

by an identified sponsor.

The Advertising Objectives

i. To Inform  Advertising makes consumers aware of new
products, informs them about specific brands and
educates them about particular product features
and benefits.

 When a new product is launched, the purpose
should only be to inform people about the product.

 Increasing consumers’ awareness for established
brands in mature product categories.

• Example: a. informing the market of a price charge
b. explaining how the product works



The Advertising Objectives

ii. To Persuade • Any advertisement must be persuasive in nature,
attracting consumers towards the brand.

• Effective advertising persuades customers to try
advertised products.

• Example:
a. encouraging switching to your brand
b. persuading customers to purchase now
c. persuading customers to receive a sales call



The Advertising Objectives

iii. To Remind • Advertising that keeps a company’s brand fresh in the
consumer’s memory.

• This objective is relevant for well-established
companies. These types of advertisements try to
remind the consumers of the brand existence.

• It’s also reminding consumers who have not recently
purchased a brand that the brand is available and that is
possesses favorable attributes.

• Example :
a. Reminding customers that the product may be needed

in the near future.
b. Keeping the product in customers’ minds during off-
seasons



Types of Advertising Media

1. Print Media

Magazines and newspapers have been advertising media for
many years. Despite the competition from broadcast media,
magazines and newspapers remained important media
vehicles to both consumers and advertisers.

1. Print Media

a. Newspaper

Most newspapers are published daily so new ads, like
products on sale or movie openings can be placed every day.

Newspapers sell advertising space in all sections of their
paper. In most cases ads of products will be put in the section

they are related to.

Local newspapers have ads of local companies, but
nationwide newspaper advertise products that are sold all

over the country.

1. Print Media

b. Magazine

Magazines are much targeted, provide good detail and
excellent graphics and have long shelf-life.
Magazines mostly appear all over the country and are used
by national advertisers.
They are kept for a few weeks or even months. Better
printing quality and colour ads are among the advantages
of magazines.
Many special magazines are made for groups of people.
The ads that appear there are especially for these groups.

Types of Advertising Media

2. Broadcast Media

Broadcast media describes all media that is broadcast. That means
that it is transmitted as a signal and usually referring to television

or to radio.
Technically, the term ‘broadcast media’ can include the internet as
well and even such things as Bluetooth marketing and other forms

of location-based transmissions.

2. Broadcast Media

a. Radio

Radio can be a very helpful advertisement tool and medium to
small firms because of its low cost, ability to target specific
demographics audiences and its personal nature.

Radio stations are more specialized in what they broadcast.

For instance; a radio station that offers pop music and has a
younger listening audience; the other station may broadcast
classical music with older listeners.

The ads can be chosen according to the group of people
who listen to the radio station.

2. Broadcast Media

b. Television

Television advertisements seem to be widely used and popular. Its
provides more room for creativity and demonstration.

Television combines sound and moving images. It is one of the most
expensive forms of advertising, but on the other hand it reaches a very

wide audience.
Advertisers buy time from TV stations to broadcast their commercials.
The cost is cheaper at times when fewer people watch TV, as in the early

morning hours and gets very expensive during prime time evening
shows.

Sometimes advertisers pay a lot of money to get their ads on TV during
special programmes, like the Olympic games.

Types of Advertising Media

3. Online Media

Online advertising is one of the most effective ways for businesses of all
sizes to expand their reach, find new customers, and diversify their revenue
streams.

Internet advertising is becoming more and more important. Especially young
people spend less time watching TV and more time on the internet.

The internet has the advantage of being available to people around the world
at all times.

Internet ads range from banners to pop-ups. Companies that spend a lot of
money on advertising often create their own internet site for a certain
product.

Types of Advertising Media

4. Outdoor Media

Outdoor media has been getting more attention lately. This type of
media appeals to be more exposed as it reaches a broad and diverse

market, its exposure frequency is very high and the ability to be
customized to local marketing needs.

Outdoor advertising is sometimes used by retailers. Poster and sign
may be displayed in public placed, on building and alongside
highways

Outdoor Media Transit Advertising

Billboard Advertising It is used in area with
mass transit systems.
Billboards are giant posters Ads are displayed on
displayed in accessible locations. busses, trains, taxis and
also retailer’s delivery
Some of the most common types trucks.
of billboards:
Mobile billboards
Static - These are the billboards
that you will expect to see on the primarily target people on
roadside. This form of outdoor
advertising targets those who are the road, whether
in their vehicles.
motorists or pedestrians.
Electronic billboards have large
displays where ads change very
quickly. They are the most
expensive kind of outdoor signs.

Types of Advertising Media

5. Mobile Media

Mobile media devices include smart phones, tablets and other
handheld portable devices. They allow users to access the Internet
and send or receive information from almost anywhere with a signal.

Many businesses and product manufacturers use mobile devices to
advertise products and services and build business brands.

Mobile advertising can take place as text ads via SMS, or banner
advertisement that appear embedded in a mobile web site.

Ads are tailored based on consumer tastes and/or browsing history
using data and information gathering techniques.

Types of Advertising Media

6. Specialty Media

Relatively permanent promotional message printed on small,
handy items such as bags, calendars, cups, diaries, etc., given

away as gifts to serve as reminders.

Specialty advertising is different from product samples, which are
free products that you sell, as the free items simply provide the
medium for delivery of your brand message.

Primary benefit of an advertising specialty item is the ongoing
brand exposure gain. When customers have pens or pencils with

marketer brand logo, they may use them for weeks, months or
years. This not only earns repeat exposure with those customers

but possibly with their friends and acquaintances

THANK YOU!

….. will continue to part 2

DPM40093

Integrated
Marketing
Communications

CHAPTER 3

CHAPTER 3

ADVERTISING
AND

SALES PROMOTION

Chapter 3 – Part 2
Sales Promotion

01 02

The Definition of The Types of Sales
Sales Promotion Promotion Activities

03 a. Consumer-oriented

The Objectives of promotions
Sales Promotions b. Trade-oriented

promotions
c. Sales force promotions



Definition

Short term incentives to encourage the
purchase or sale of a product or

service. Sales promotion offers reason
to buy now.

The Types of
Sales Promotion Activities

a. Consumer –Oriented Promotions

1. Sample

Sampling involves a variety of procedures whereby consumers are
given some quantity of product for no charge to induce trial.

Samples are given to consumers in shopping malls, supermarkets,
retail stores, or through other channels (such as via the internet)

Although an expensive method of targeting customers, but with
effective sampling, marketers can create brand loyalty and assist
in the launch of a product through the word of mouth.

1. Sample

Sampling Methods:

a. Door-to-door sampling
The product is delivered directly to the prospect’s residence
It can be cost effective if the marketers have the information that help
define the target market and if the prospects are located in a well-defined
geographic area.

1. Sample

Sampling Methods:

b. In store sampling
This method is popular especially for food products.
The marketers hire temporary demonstrators who set up a table or booth,
prepare small samples of the products and pass them out to shoppers.
This method can be very effective and also can be expensive and requires
a great deal of planning, as well as the cooperation of retailers.

a. Consumer –Oriented Promotions

2. Coupon

Coupons are legal certificates offered by manufacturers and
retailers. They grant specified savings on selected products
when presented for redemption at the point of purchase.
Manufacturers disseminate coupons in many ways. They may
be delivered directly by mail, dropped door to door, or
distributed through a central location such as a shopping mall.
Coupons may also be distributed through the media—
magazines, newspapers

Distribution of coupon:

a) In/on pack coupon

b) bounce-back coupons
Use with the products samples to encourage consumers to

purchase the product after sampling.
Redeemable for the next purchase

c. Instant Coupon
Attached outside of the package so the customer can rip it off

and redeem it immediately at the time of purchase

a. Consumer –Oriented Promotions

3. Premium

A premium is tangible compensation that is given as an incentive for performing a
particular act—usually buying a product.

The premium may be given for free, or may be offered to consumers for a
significantly reduced price.

Some examples of premiums include receiving a prize in a cereal box or a free
garden tool for visiting the grand opening of a hardware store.

a. Free premiums:
It is usually small gifts or merchandise included in the product
package or sent through mail.

Free premiums have become very popular in the restaurant
industry, particularly among fast food chain – premium offers
in their kids’ meals.

b. Self - liquidating premiums
Require the consumer to pay some or all of the cost of the
premium plus handling and mailing costs.

The goal is not to make a profit on the premium item but rather
just to cover cost and offer a value to the consumer.

a. Consumer –Oriented Promotions

4. Contest & Sweepstakes

Contests require entrants to perform a task or demonstrate a
skill that is judged in order to be deemed a winner.

Contest usually provide a purchase incentive by requiring a
proof of purchase to enter or an entry form that is available.

Sweepstakes involve a random drawing or chance contest
that may or may not have an entry requirement.

a. Consumer –Oriented Promotions

5. Bonus Pack

Bonus packs offer the consumer an extra amount of a product at
the regular price by providing larger containers or extra unit.

Bonus packs result in a lower cost per unit for the consumer and
provide extra value as well as more products for the money.

The additional value of a bonus pack is generally obvious to the
consumer and can have a strong impact on the purchase
decision at the time of purchase.

a. Consumer –Oriented Promotions

6. Price Off Deals

Price off deals reduces the price of the brand.
Typically, price off range from 10 to 25 percent off the
regular price, with the reduction coming out of the
manufacturer’s profit margin.
Price off promotions can encourage consumers to purchase
large quantities, preempting competitors’ promotions and
leading to greater trade support.

a. Consumer –Oriented Promotions

7. Loyalty Program

Continuity programs retain brand users over a long time
period by offering ongoing motivation or incentives.
Continuity programs demand that consumers keep buying
the product in order to get the premium in the future.
Today, airlines' frequent-flyer clubs, hotels' frequent-
traveller plans, retailers' frequent-shopper programs, and
bonus-paying credit cards are common continuity
programs.

THANK YOU!

….. will continue to part 3



b. Trade-Oriented Promotions

1. Contest and Incentives

Manufacturers may initiate contest or special incentive
programs to stimulate greater selling effort and support from
retailer management or sales personnel.
Manufacturers often sponsor contest for retailers and use
prizes such as trips or valuable merchandise as rewards for
meeting sales quotas or the goals.

b. Trade-Oriented Promotions
2. Trade Allowances

This is a discount or deal offered to retailers or
wholesalers to encourage them to stock, promote or
display the manufacturer’s product.

2. Trade Allowances

Buying Allowances Promotional Allowances
A deal or discount offered to
retailer in the form of a price Allowance or discounts are
reduction on merchandise given for performing certain
ordered during a fixed promotional or
period. merchandising activities in
supports of their brands.

These discounts are often in The allowance is usually a
the form of an off-invoice fixed amount per case or a
allowance, which means a percentage deduction from
certain per-case amount of the list price for the
percentage is deducted from merchandise ordered during
invoice. the promotional period.

2. Trade Allowances

Slotting Allowances
Also called stocking allowances, introductory allowances or
street money, are fees retailers charge for providing a slot or
position to accommodate the new product.
Retailers justify these fees by pointing out the cost associated
with taking on so many new products each year such as
redesigning store shelves, entering new products into their
computer and finding warehouse space.

b. Trade-Oriented Promotions

3. Display and Point-of-Purchase Material

P.O.P displays are an important promotional tool because they
can help the manufacturer to obtain more effective in-store
merchandising of product.

It is not limited to grocery or convenience store and P.O.P
displays also important to companies to distribute their

products through other types of retail outlets such as home
improvement, consumer electronic and sporting goods stores.





b. Trade-Oriented Promotions

4. Sales Training Programme

Many products sold at the retail level require knowledgeable
sales people who can provide consumers with information
about the features, benefits and advantages of various brands
and models.

Manufacturers may conduct classes or training sessions that
retail personnel can attend to increase their knowledge of a
product or a product line.

Manufacturers can also provide sales training assistance to
retail employees through their own sales force.