Advertising, Sales Promotion, and Public Relations

Chapter 15

Learning Goals
1. Understand the roles of advertising, sales promotion, and public relations in the promotion mix. 2. Know the major decisions involved in developing an advertising program. 3. Learn how sales promotion campaigns are developed and implemented. 4. Learn how companies use public relations to communicate with their publics.

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MINI cars. Ikea furniture. unconventional media and holistic marketing strategies • Often suggests changes in the client’s procedures.3 . products and processes to enhance brand image • Clients include Virgin Airline. FL • Winner of several creative awards • Known for guerrilla tactics. Truth and Burger King 15 .Case Study Crispin Porter & Bogusky • Located in Coconut Grove. Molson beer.

15 .4 1: Understand the roles of advertising. sales promotion and public relat . goods. or services by an identified sponsor.Definition • Advertising  Any paid form of nonpersonal presentation and promotion of ideas.

15 . • Business firms. annually.5 1: Understand the roles of advertising. and professionals all advertise.Advertising • Signage in ancient times offers evidence of early advertising. not-for-profit.S. social agencies. sales promotion and public relat . • Modern ad spending tops $245 billion in U. $498 billion worldwide.

Advertising Key Decisions • Advertising objectives can be classified by primary purpose:  Inform • Introducing new products • Becomes more important as competition increases • Comparative advertising • Most important for mature products • Setting objectives • Setting the budget • Developing the advertising strategy • Evaluating advertising campaigns  Persuade  Remind 15 .6 2: Know the major decisions involved in developing an advertising prog .

7 • Setting objectives • Setting the budget • Developing the advertising strategy • Evaluating advertising campaigns 2: Know the major decisions involved in developing an advertising prog .Advertising Key Decisions • Methods of budget setting were listed in chapter 14 • Several factors should be considered when setting the ad budget:      Stage in the PLC Market share Level of competition Ad clutter Degree of brand differentiation 15 .

illustration. format.Advertising Key Decisions • Creative challenges • Creating ad messages  Message strategy • Creative concept or Big Idea • Advertising appeal • Many execution styles • Tone. copy 15 .8  Advertising clutter  TiVo and PVR’s • Setting objectives • Setting the budget • Developing the advertising strategy • Evaluating advertising campaigns  Message execution 2: Know the major decisions involved in developing an advertising prog . headline.

Advertising Creative Execution Styles • • • • • Musical Slice of Life • Personality Symbol Lifestyle • Technical Expertise Fantasy • Scientific Evidence Mood or Image • Testimonial Evidence or Endorsement 15 .9 2: Know the major decisions involved in developing an advertising prog .

Advertising Key Decisions • Select advertising media  Decide on level of reach. frequency and impact  Choose among the major media types by considering: • Consumer media habits. nature of the product. and costs • Setting objectives • Setting the budget • Developing the advertising strategy • Evaluating advertising campaigns  Select specific media vehicles  Decide on media timing 15 .10 2: Know the major decisions involved in developing an advertising prog . types of messages.

Advertising Major Media Types • Newspaper • Radio s • Magazines • Television • Outdoor • Direct Mail • Internet 15 .11 2: Know the major decisions involved in developing an advertising prog .

12 2: Know the major decisions involved in developing an advertising prog .Advertising Key Decisions • Measuring communications effects • Measuring sales effect  Compare past sales with past advertising expenditures  Experiments  Copy testing • Setting objectives • Setting the budget • Developing the advertising strategy • Evaluating advertising campaigns 15 .

large companies  Nature of advertising agencies • Advantages of advertising agencies • Consolidation and growth of agencies • Creative boutiques 15 .13 2: Know the major decisions involved in developing an advertising prog .Advertising • Organizing the Advertising Function  Small vs.

14 2: Know the major decisions involved in developing an advertising prog . greater global advertising coordination.Advertising • Advertising to International Markets  Standardizing worldwide advertising • Advantages include lower advertising costs. demographics. and economic conditions  Most marketers think globally but act locally 15 . and consistent global image • Drawbacks include ignoring differences in culture.

15 .Definition • Sales Promotion  Sales promotions are short-term incentives to encourage the purchase or sale of a product or service.15 l 3: Learn how sales promotion campaigns are developed and implemen .

 78% are to the trade with 22% to end consumers. retailers and wholesalers.16 l 3: Learn how sales promotion campaigns are developed and implemen .  The use of sales promotions has been growing rapidly. 15 . and members of the sales force. business customers.Sales Promotion • Sales Promotions  Can be targeted at final buyers.

17 l 3: Learn how sales promotion campaigns are developed and implemen .Sales Promotion • Objectives – Consumer Promotions:  Increase short-term sales or long-term market share  Generate product trial • Objectives – Trade Promotions:  Obtaining distribution and shelf space  Encouraging retailers to advertise the brand • Objectives – Sales Force Promotions:  Signing up new accounts 15 .

Games.Sales Promotion Consumer Promotion Tools • Samples • Coupons • Cash Refunds (Rebates) • Price packs (cents-off deals) • Advertising Specialties • Premiums • Patronage Rewards • Point-of-Purchase Communications • Contests.18 l 3: Learn how sales promotion campaigns are developed and implemen . and Sweepstakes 15 .

Sales Promotion • Trade Promotion Tools  Discounts (also called price-off. and off-invoice)  Allowances • Advertising allowances • Display allowances  Free goods  Push money  Specialty advertising items 15 . off-list.19 l 3: Learn how sales promotion campaigns are developed and implemen .

20 l 3: Learn how sales promotion campaigns are developed and implemen .Sales Promotion • Business Promotion Tools  Includes many of the same tools used in consumer and trade promotions  Two additional tools: • Conventions and trade shows • Sales contests 15 .

21 l 3: Learn how sales promotion campaigns are developed and implemen .Sales Promotion • Key Decisions When Developing the Sales Promotion Program:  Size of the incentive  Conditions for participation  Promotion and distribution of the actual sales promotion program  Length of the promotional program  Evaluation 15 .

and handling or heading off unfavorable rumors. stories.Definition • Public Relations:  Building good relations with the company’s various publics by obtaining favorable publicity. 15 . and events.22 Goal 4: Learn how companies use public relations . building up a good corporate image.

23 Goal 4: Learn how companies use public relations .Public Relations Public Relations Functions • Press Relations • Product Publicity • Public Affairs • Lobbying • Investor Relations • Development 15 .

24 Goal 4: Learn how companies use public relations .Public Relations • Role and Impact of Public Relations  Strong impact on public awareness at lower cost than advertising  Greater credibility than advertising  Publicity is often underused  Good public relations can be a powerful brand-building tool 15 .

Public Relations Public Relations Tools • News • Speeches Buzz Marketing • Corporate Identity Materials • • Mobile Marketing • • • • • Special Events Written Materials Audiovisual Materials Public Service Activities Internet 15 .25 Goal 4: Learn how companies use public relations .

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