Advertising, Sales Promotion, and Public

Relations

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Chapter Objectives

• Tell what advertising is and describe the major types of advertising

• Describe the process of developing an advertising campaign

• Explain how marketers evaluate advertising• Explain what sales promotion is and describe the

different types of trade and consumer sales promotion activities

• Explain the role of public relations• Describe the steps in developing a public relations

campaign

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Real People, Real Choices

• BzzAgent, Inc. (Joe Chernov)

• Negative articles questioned “disclosure” in word-of-mouth marketing campaigns

• What public relations strategy to use to respond to the criticism?Option 1: take charge of the discussion.Option 2: defend without being defensive.Option 3: go quiet.

BZZAGENT.COM

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Advertising: The Image of Marketing

• Advertising: nonpersonal communication paid for by an identified sponsor using mass media to persuade or inform an audience

EXTREME MAKEOVER:HOME EDITION

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Discussion

• Some people say advertising is obnoxious, insults their intelligence, and promotes claims that are untrue.

• Others argue it provides value for consumers.--What are some arguments on each

side?--How do you feel about advertising?

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Types of Advertising

• Product advertising: focuses on a specific good/service

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Types of Advertising (cont’d)

• Institutional advertising: promotes the activities, personality, or point of view of an organization or companyAdvocacy advertising

Public service announcement (PSA)

ROCK THE VOTE

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Types of Advertising (cont’d)

• Retail and local advertising: encourages customers to shop at a specific store or use a local service

• Do-it-yourself advertising “Generation C” phenomenon: consumer-generated ad

content on the Web

WWW.PRICELESS.COM

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Discussion

• Chevy found that DIY advertising programs can sometimes backfire when consumers created anti-SUV TV commercials. --Should companies avoid DIY campaigns? --What are the benefits of DIY advertising?

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Who Creates Advertising?

• Advertising campaign: a coordinated, comprehensive plan that carries out promotion objectives and results in a series of ads placed in media over a period of time

LEO BURNETT WORLDWIDE

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Who Creates Advertising? (cont’d)

• Limited-service agency

• Full-service agency Account managementCreative servicesResearch and marketing servicesMedia planning

Motorola Video

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Figure 13.1: Steps in Developing an Advertising Campaign

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Steps in Developing an Advertising Campaign

• Step 1: Identify the target audiences

• Step 2: Establish message and budget objectives

• Step 3: Design the AdsCreative strategy: process that turns a concept into an

advertisement

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Advertising Appeal: Central Idea of the Ad

Reasons why: the Unique Selling Proposition (USP)

Comparative advertising

Demonstration

Slice of life

Lifestyle

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Advertising Appeal: Central Idea of the Ad (cont’d)

TestimonialFear appeals

Sex appeals

Humorous appeals

Slogans and jingles

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Group Activity

• As an account team for an advertising agency, your group has been assigned a new line of high- quality, high-priced makeup.

• Consider different types of appeals: USP Comparative advertising Fear appeal Celebrity endorsement Slice-of-life ad Sex appeal Humor

• Outline the strengths and weaknesses of each of these appeals for advertising the makeup.

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Step 4: Pretest What the Ads Will Say

• Pretesting: seeks to minimize mistakes by getting consumer reactions to ad messages before they appear in the media

• Copy testing: measures effectiveness of ads

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Step 5: Choose the Media Type(s) and Media Schedule

• Media planning: develops media objectives, strategies and tactics

• Aperture: is the best place and time to reach the target market

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Where to Say It: Traditional Media

• Television• Radio• Newspapers• Magazines• Directories• Out-of-home media• Place-based media

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Discussion

• When Internet travel company Hotels.nl began using blankets on sheep for advertising, one town fined the company for ignoring a ban on advertising along the highways. --What are the positive and negative aspects for

companies of using sheep, or even horses and cows, to advertise products? For consumers?

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Where to Say It: Internet advertising

• Banners • Buttons • Search engine and directory listings• Pop-up ads • Email

Spamming Permission marketing

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Discussion

• Through TV remotes, DVDs, computers, and cable television, technology gives today’s consumers control over the advertising images they see. --How has this affected

the advertising industry so far? --How do you think consumer

control will affect advertising in the future?

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Media Scheduling: When To Say It

• Media schedule: specifies exact media to use and when to use it

• Advertising exposure: defines degree to which the target market will see an advertising message in specific vehicles

• Impressions: measures

number of people exposed

to a message in one or

more vehicles

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Figure 13.3: Media Schedulefor a Video Game

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Media Scheduling: When To Say It (cont’d)

• Reach: measures percentage of target market exposed to media vehicle

• Frequency: measures average number of times a person in the target group will be exposed to the message

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Media Scheduling: When To Say It (cont’d)

• Gross rating points (GRPs) = reach X frequency

• Cost per thousand (CPM): the cost to deliver a message to 1,000 people

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Media Scheduling: How Often To Say It

• Continuous schedule: puts out steady stream of advertising

• Pulsing schedule: varies the amount of advertising

• Flighting schedule: puts ads out in short, intense bursts

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Step 6: Evaluate the Advertising

• Posttesting: research on consumers’ responses to advertising they have seen or heard

• Unaided recall

• Aided recall

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Sales Promotion

• Programs designed to build interest in or encourage purchase of a product during a specified period of timeDeliver short-term sales resultsCan target end consumers, channel partners, and/or

employees

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Sales Promotion DirectedToward the Trade: Trade Promotions

• Discounts and dealsMerchandising allowancesCase allowances

• Increasing industry visibility Trade showsPromotional products Incentive programs (push money)

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Sales Promotion DirectedToward Consumers

• Price-Based Consumer Sales PromotionCoupons Price deals, refunds, and rebatesFrequency (loyalty/continuity) programs Special/bonus packs

SMARTSOURCE.COM

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Discussion

• Companies sometimes teach consumers a “bad lesson” by overusing sales promotion.

• As a result, consumers expect the product always to be “on sale.” --What are some products for which this bad lesson

has occurred? --How can companies prevent it?

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Sales Promotion DirectedToward Consumers (cont’d)

• Attention-getting consumer promotionContests and sweepstakesPremiumsSamplingPoint-of-purchase promotionProduct/brand placementsCross-promotion

FREESAMPLES.COM

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Group Project

• Your group works for a firm producing several brands of household cleaning products. --Develop recommendations for trade and consumer

sales promotion activities for a new laundry detergent --In a role-playing situation, present and defend your

recommendations to your boss.

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Public Relations

• PR: communication function that seeks to build good relationships with an organization’s publics.

• Publics include consumers, stockholders, legislators, and other firm stakeholders.

• Basic rule of good PR: do something good, then talk about it.

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Public Relations (cont’d)

• Proactive PR activities stem from firm’s marketing objectives.

• Publicity: unpaid communication about an organization that gets media exposure.

• PR is even more important when firm’s image is at risk due to negative publicity.

• PR is responsible for preparing a crisis management plan.

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Discussion

• Some critics denounce PR specialists, calling them “flacks” or “spin doctors” whose job is to hide the truth about a company’s problemsWhat is the proper role of PR within an organization?Should PR specialists try to put a good face on bad

news?

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Objectives of Public Relations

• Introducing new products to manufacturers• Introducing new products to consumers• Influencing government legislation• Enhancing image of a firm• Enhancing image of a city, region, or country• Calling attention to a firm’s involvement with

the community

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Planning a Public Relations Campaign

• A statement of objectives

• Situation analysis

• Specification of publics, communicated messages, and specific program elements

• Timetable and budget

• Discussion of program evaluation plan

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Public Relations Activities

• Press releases (timely topics, research project stories, and consumer information releases)

• Internal PR• Investor relations• Lobbying • Speech writing• Corporate identity

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Public Relations Activities (cont’d)

• Media relations• Sponsorships • Special events• Buzz-building: word-of-

mouth/blogging• Advice and counsel

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Group Activity

• As PR professionals employed by your university, your group must develop strategies for improving your school’s PR program.--Write a memo to your university

president with your recommendations.

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Real People, Real Choices

• BzzAgent, Inc. (Joe Chernov)

• Joe chose option 1: take charge of the discussion.BzzAgent issued a press release announcing it had

enhanced its disclosure policy, becoming the first company to enforce compliance with disclosure policies.

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Marketing Plan Exercise

• Think about one of the following: A new brand of toothpaste Your local city or state Your university

• Outline an advertising campaign for the product and discuss the following: The type of appeal The main message The media (include at least one print and one broadcast

medium) How you’ll develop the ads to share the same look and feel

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Marketing in Action Case:You Make the Call

• What is the decision facing Amazon?

• What factors are important in understanding this decision situation?

• What are the alternatives?

• What decision(s) do you recommend?

• What are some ways to implement your recommendation?

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Keeping It Real: Fast-Forward to Next Class, Decision Time at IBM

• Meet Esther Ferre, a General Manager at IBM.

• IBM sales teams are responsible for IBM relationships with clients and are evaluated on maximizing revenue and profits.

• The decision: How to allocate resources across a broad customer base?