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1
Chapter 15
Advertising, Sales Promotion, and Public Relations
2
What is Advertising?
Advertising is Any Paid Form of Nonpersonal
Presentation and Promotion of Ideas, Goods, or Services by an Identified
Sponsor.
3
Major Advertising Decisions
Objectives Setting
•Communication objectives
•Sales Objectives
Budget Decisions•Affordable Approach•Percent of sales•Competitive parity•Objective and task
Message Decisions•Message Strategy
•Message Execution
Media Decisions•Reach, Frequency, Impact
•Major Media Types•Specific Media Types
•Media Timing
Campaign Evaluation•Communication Impact
•Sales Impact
4
Informative AdvertisingInform Consumers or Build Primary Demand
i.e CD Players
Comparison Advertising
Compares One Brand to Another
i.e. Avis vs. Hertz
Persuasive AdvertisingBuild Selective Demand
i.e Sony CD Players
Reminder AdvertisingKeeps Consumers Thinking
About a Producti.e. Coca-Cola
Advertising ObjectiveSpecific Communication Task Accomplished with a Specific
Target Audience During a Specific Period of Time
Setting Advertising Objectives
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Affordable Based on What the
Company Can Afford
Objective-and-Task Based on Determining
Objectives & Tasks, Then Estimating Costs
Objective-and-Task Based on Determining
Objectives & Tasks, Then Estimating Costs
Percentage of SalesBased on a Certain Percentageof Current or Forecasted Sales
Percentage of SalesBased on a Certain Percentageof Current or Forecasted Sales
Competitive-ParityBased on the Competitor’s
Promotion Budget
Competitive-ParityBased on the Competitor’s
Promotion Budget
After Determining Its Advertising Objectives, the Marketer Must Set the Advertising
Budget for Each Product and Market. (From Chapter 14)
Setting the Promotion Budget
6
Setting the Advertising Budget
Factors to be considered when setting the advertising budget: Stage in the product
life cycle, Market share, Competition and
clutter, Product
differentiation.
7
Creating the Advertising
Messages
Selecting the Advertising Media
Advertising Strategy Consists of Two Major Elements and Companies are Realizing the
Benefits of Planning These Two Elements Jointly.
Developing Advertising Strategy
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Plan a Message StrategyGeneral Message to Be Communicated to Customers
Develop a Message Focus on
Customer Benefits
Develop a Message Focus on
Customer Benefits Creative Concept“Big Idea”
Visualization or PhraseCombination of Both
Creative Concept“Big Idea”
Visualization or PhraseCombination of Both
Advertising AppealsMeaningfulBelievableDistinctive
Advertising AppealsMeaningfulBelievableDistinctive
Developing Advertising Strategy: Creating Ad Messages
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TypicalMessage
ExecutionStyles
Testimonial EvidenceTestimonial Evidence Slice of LifeSlice of Life
Scientific EvidenceScientific Evidence LifestyleLifestyle
Technical ExpertiseTechnical Expertise FantasyFantasy
MusicalMusical
Personality SymbolPersonality Symbol Mood or ImageMood or Image
Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and
Interest.
Developing Advertising Strategy: Message Execution
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Step 1. Decide on Reach, Frequency, and Impact
Step 2. Choosing Among Major Media TypesMedia Habits of Target Consumers,
Nature of the Product, Types of Message, Cost
Step 3. Selecting Specific Media VehiclesSpecific Media Within a Given Type, i.e. Magazines.
Must Balance Media Cost Against Media Factors:Audience Quality & Attention, Editorial Quality
Step 4. Deciding on Media TimingScheduling of Advertising Over the Course of a Year
Pattern of Ads: Continuity or Pulsing
Advertising Strategy:Selecting Advertising Media
11
Communication Effects
Is the Ad Communicating Well?
Communication Effects
Is the Ad Communicating Well?
Advertising Program Evaluation
Sales Effects
Is the Ad Increasing Sales?
Sales Effects
Is the Ad Increasing Sales?
Evaluating Advertising
12
What is Sales Promotion ?
Sales Promotion is a Mass Communication Technique
That Offers Short-Term Incentives to Encourage
Purchase or Sales of a Product or Service.
Offers Reasons to Buy Now.
13
Rapid Growth of Sales Promotion
Sales promotion can take the form of consumer promotions, business promotions, trade promotions or sales force promotions.Rapid growth in the industry has been achieved because: Product managers are facing more pressure to
increase their current sales, Companies face more competition, Advertising efficiency has declined, Consumers have become more deal oriented.
14
Sales Promotion Objectives
Increase short-term sales or help build long-term market share.Get retailers to: carry new items and more inventory, advertise products, give products more shelf space, and buy product ahead.
In general, sales promotion should focus on consumer relationship building.
15
SampleSample
CouponsCoupons
Cash RefundsCash Refunds
Price PacksPrice Packs
PremiumsPremiums
Advertising Specialties
Advertising Specialties
Trial amount of a productTrial amount of a product
Savings when purchasing specified products
Savings when purchasing specified products
Refund of part of the purchase priceRefund of part of the purchase price
Reduced prices marked on the label or package
Reduced prices marked on the label or package
Goods offered free or low cost as an incentive to buy a product
Goods offered free or low cost as an incentive to buy a product
Articles imprinted with an advertiser’s name given as gifts
Articles imprinted with an advertiser’s name given as gifts
Major Consumer Sales Promotion Tools
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Patronage RewardsPatronage Rewards
Point-of-PurchasePoint-of-Purchase
ContestsContests
SweepstakesSweepstakes
GameGame
Cash or other rewards for the use of a certain product
Cash or other rewards for the use of a certain product
Displays and demonstrations that take place at the point of sale
Displays and demonstrations that take place at the point of sale
Consumers submit an entry to be judged
Consumers submit an entry to be judged
Consumers submit their names for a drawing
Consumers submit their names for a drawing
Presents consumers with something every time they buy
Presents consumers with something every time they buy
Major Consumer Sales Promotion Tools
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Trade-Promotion Objectives
Persuade Retailers or Wholesalers to Carry a Brand
Persuade Retailers or Wholesalers to Carry a Brand
Give a Brand Shelf SpaceGive a Brand Shelf Space
Promote a Brand in Advertising
Promote a Brand in Advertising
Push a Brand to ConsumersPush a Brand to Consumers
Major Trade Sales Promotion Tools
Trade-Promotion Tools
DiscountsDiscounts
AllowancesAllowances
18
Business-Promotion Objectives
Generate Business LeadsGenerate Business Leads
Stimulate PurchasesStimulate Purchases
Reward CustomersReward Customers
Motivate SalespeopleMotivate Salespeople
Business-Promotion Tools
ConventionsConventions
Trade ShowsTrade Shows
Sales ContestsSales Contests
Major Business Sales Promotion Tools
19
Decide on the Size of the IncentiveDecide on the Size of the Incentive
Set Conditions for ParticipationSet Conditions for Participation
Evaluate the ProgramEvaluate the Program
Determine How to Promote andDistribute the Promotion Program Determine How to Promote and
Distribute the Promotion Program
Determine the Length of the ProgramDetermine the Length of the Program
Developing the Sales Promotion Program
20
What is Public Relations?
Public Relations Involves Building Good Relations With the
Company’s Various Publics by Obtaining Favorable Publicity, Building Up a Good Corporate
Image, and Handling or Heading Off Unfavorable Rumors, Stories,
and Events.
21
Press Relations or AgentryPress Relations or Agentry
Product PublicityProduct Publicity
Public AffairsPublic Affairs
LobbyingLobbying
Investor RelationsInvestor Relations
DevelopmentDevelopment
Public Relations Departments May Perform Any of All of the Following
Functions:
Major Public Relations Functions
22
News
Speeches
Special Events
Written MaterialsAudiovisual
Materials
Corporate Identity
Materials
Public Service
Activities
Web Site
Major Public Relations Tools
23
Setting Public Relations ObjectivesSetting Public Relations Objectives
Choosing the Public Relations Messages and Vehicles
Choosing the Public Relations Messages and Vehicles
Implementing the Public Relations PlanImplementing the Public Relations Plan
Evaluating Public Relations ResultsEvaluating Public Relations Results
Major Public Relations Decisions