PHILIPPINE SCHOOL OF BUSINESS ADMINISTRATION

1029 Aurora Boulevard, Quezon City, 1108

The Graduate School of Business Programs

MANAGING ADVERTISING, SALES PROMOTION, AND PUBLIC RELATIONS

Prepared by: Jerome Jerme D. Marin

Learning Objectives:
 To determine the definition of advertising, and the steps that are involved in
developing an advertising program.
 To explain the growing use of sales promotion, and how sales promotion are
decisions made.
 To understand how companies can exploit the potentials of public relations
and publicity in their marketing mix.

ADVERTISING
- Any paid form of non-personal presentation and promotion of ideas, goods, or
services by an identified sponsors.

1. SETTING THE ADVERTISING OBJECTIVES

 INFORMATIVE – to inform customers about the products.
 PERSUASIVE ADVERTISING – to persuade customers to purchase
the products.
 REMINDER ADVERTISING – to remind the customers about the
products.

2. DECIDING ON THE ADVERTISING BUDGET

5 FACTORS IN SETTING ADVERTISING BUDGET

 STAGE IN THE PRODUCT LIFE CYCLE - new products typically
receive large advertising budgets to build awareness.
 PHILIPPINE SCHOOL OF BUSINESS ADMINISTRATION
1029 Aurora Boulevard, Quezon City, 1108
The Graduate School of Business Programs
 MARKET SHARE AND CONSUMER BASE - High-market-share
brands that requires less advertising expenditure as a percentage of
sales to maintain their share.

 COMPETITION AND CLUTTER - A brand that needs advertisement to

be heard above and noise in the market.
 ADVERTISING FREQUENCY - Number of repetitions needed to put
across the brand’s message to customers.
 PRODUCT SUBSTABILITY - Brands in a commodity class that
requires heavy advertising to establish a differential image.

3. DEVELOPING ADVERTISING STRATEGY

 CHOOSING THE ADVERTISING MESSAGE
 Deciding on the media

4. EVALUATING ADVERTISING EFFECTIVENESS

 COMMUNICATION-EFFECT RESEARCH - Seeks to determine
whether an ad is communicating effectively. It is also known as copy
testing. 
 SALES-EFFECT RESEARCH - It helps advertisers in assessing
advertising communication effects but reveals little about its sales
impact.

SALES PROMOTION
- A diverse collection of incentive tools, mostly short term, designed to stimulate
quicker and/or greater purchase of particular products/services by consumers
or the trade.

PURPOSE OF SALES PROMOTION

 Rapid growth
 Purpose of sales promotion
 Major decisions in sales promotion

PUBLIC RELATIONS
- Public relations (PR) involves a variety of programs designed to promote
and/or protect a company’s image or its individual products.