Chapter 15

Advertising,
Publicity, and
Sales Promotion

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 At the end of this presentation, you
should be able to:
1. recognize the importance of advertising in the economy
2. understand why a marketing manager sets specific
objectives to guide the advertising effort.
3. understand when the various kinds of advertising are
needed.
4. understand how to choose the “best” medium.
5. understand the main ways that digital advertising differs
from advertising in other media.
6. understand how to plan the "best" message—that is, the
copy thrust.
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15-2
 At the end of this presentation, you
should be able to:
7. understand what advertising agencies do.
8. describe the challenges and methods used to
measure advertising effectiveness.
9. understand how to advertise legally.
10. understand the importance and nature of sales
promotion.
11. know the advantages and limitations of different
types of sales promotion.
12. understand important new terms.
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15-3
 Strategy Planning, Advertising, &
Sales Promotion (Exhibit 15-1)

CH 13: CH 14: CH 15:

CH 16: Publicity:
Promotion Intro Personal Advertising,
Promotion Using
to Integrated Selling and Publicity, &
Owned, Earned,
Marketing Customer Sales
and Social Media
Communications Service Promotion

Advertising Strategy Advertising & Sales

spending decisions the law promotion

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 International
Dimensions Are
Important

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 Advertising Spending as Percent of Sales for
Illustrative Product Categories (Exhibit 15-2)

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 Advertising Spending as Percent of Sales for
Illustrative Product Categories (Exhibit 15-2)

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 The Decision to Position a New
Product
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 Setting Ad Objectives is a Strategy
Decision
Position Brands

Introduce New Products

Obtain Outlets

Ongoing Contact
Advertising
Support Sales Force
Objectives
Should Be Get Immediate Action
Specific
Maintain Relationships
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 What’s the Advertising Objective?

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 Examples of Different Types of Advertising
over Adoption Process Stages(Exhibit 15-3)
Evaluation and
Awareness Interest
Trial
• Teaser campaigns • Informative or • Competitive ads
• Pioneering ads descriptive ads • Persuasive copy
• Jingles/slogans • Image/celebrity ads • Comparative ads
• Viral advertising • Search ads • Testimonials
• E-mail ads
• Announcements • Search ads
• Demonstration of
benefits

Confirmation Decision
• Reminder ads • Direct-action retail
• Informative “why” ads
ads • Point-of-purchase
ads
15-11
• Price deal offers
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 Coordinating Advertising Across the
Channel to Achieve Objectives

Advertising Key Cooperative

Allowances Issues Advertising

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 Types of Advertising
(Exhibit 15-4)
Types of
Advertising

Product Institutional
Advertising Advertising

Pioneering Competitive Reminder

Advertising Advertising Advertising

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 Competitive Advertising

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 Institutional Advertising –
Remember Our Name
Focuses on Name
and Prestige of a
Company

Informs, Persuades,
or Reminds

Develops Goodwill

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 Checking Your Knowledge

A television ad for Target encourages consumers to go

to their nearest Target store for a big end-of-season sale
coming up in two weeks. This type of advertising is:

A. pioneering.
B. reminder.
C. indirect competitive.
D. direct competitive.
E. institutional.
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 Checking Your Knowledge

Community Bank sends an advertisement via direct mail to

several thousand customers, quoting special low financing rates
on new vehicles for a limited time only. The ad names some
other financial institutions and shows their respective loan
rates. Community Bank promises to beat any rate offered for a
comparable term. This type of advertising is:

A. pioneering.
B. indirect competitive.
C. comparative.
D. reminder.
E. institutional.
15-17
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 Choosing the “Best” Medium – How
To Deliver the Message
Promotion Objectives

Target Market
Characteristics

Funds Available

Nature of the Media

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 An Emphasis on Targeting

Traditional
Direct Mail Has
Media Are
Grown
More Targeted

Key
Issues

“Must Buys” Specialized

May Use Up Media Are
Funds Gaining

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 Estimated U.S. Ad Spending, Percent Growth, and
Advantages and Disadvantages of Major Advertising
Media (Exhibit 15-5)
%
2015 Ad
Change
Media Spending Advantages Disadvantages
2015-
(billions)
18
Demos, image building,
Television “Clutter”—ads compete
70.6 -4.3 good attention, wide
for attention, expensive
& cable reach, cable selective

Ads link to more

Digital website, “pay for Hard to compare costs
32.0 -35.5 results,” trackable with other media
Desktop
results, highly targeted

Digital Same as above, plus

26.5 88.6 Same as above
Mobile location based

Flexible, timely, local “Clutter”—ads compete

News
16.3 -17.4 market, covers a lot in for attention, poor photo
papers geographic area quality
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 Estimated U.S. Ad Spending, Percent Growth, and
Advantages and Disadvantages of Major Advertising
Media (Exhibit 15-5)
2015 Ad %
Media spending. Change Advantages Disadvantages
(billions) 2015-18

Wide reach, low cost Weak attention, many

segmented audience, different rates, short
Radio 15.5 -13.4 sound and voices exposure, listenes
create “image” cannot review the ad

Involved readers , very

Inflexible, long lead
Magazine 15.0 -12.7 targeted, good detail &
times, cost can be high
“pass along”

Captive audience, can

Outdoor & Glance medium; younger
7.4 -7.7 be geographic and
audience for cinema
cinema local

Reaches local Many competitors listed

Directory 5.9 -25.8 customers ready to in same place, hard to
15-21
buy, inexpensive differentiate
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 Digital Advertising
Advertisers Direct
Know Your Response
Location Desired

Facebook
Banner ads Key and Google
“Know”
Issues

Pay Per
Big Data Click
Advertising
Behavioral
Targeting
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 Planning the Best Message—What
to Communicate

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 Planning the Best Message Example

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 AIDA – Attention, Interest, Desire,
and Action
Get Attention

Hold Interest

Arouse Desire

Obtain Action

Can Global Messages Work?

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 Checking Your Knowledge

A famous athlete is featured in a commercial for a pain-relieving

rub that can help soothe muscle aches and pains. He says, “If it
works for me, it’ll surely work for you.” This testimonial is
mainly aimed at the _________ stage of the AIDA model.

A. attention
B. interest
C. desire
D. action
E. confirmation

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 A Unique Selling Proposition

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 Advertising Agencies Often Do the Work

Specialists

Advertising Big agencies do most of

Agencies the work

Ethical issues in
advertising agencies

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 Measuring Advertising Effectiveness
Is Not Easy
Success Depends
on the
Total Marketing Mix

Research and
Testing May
Improve Odds

Hindsight May Lead

to Foresight

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 Is native advertising
ethical?

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 Research and
testing can
improve the
odds

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 How to Avoid Unfair Advertising

Government FTC Controls

May Say Unfair
What’s Fair Practices

Support for
Standards
Claims Is
Are Changing
Fuzzy

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 Example of Sales Promotion
Activities (Exhibit 15-7)
Aimed at final Aimed at wholesalers Aimed at company’s
consumers or users or retailers own sales force

• Contests • Price deals • Contests

• Coupons • Promotion • Bonuses
• Aisle displays allowances • Meetings
• Samples • Sales contests • Portfolios
• Trade shows • Calendars • Displays
• Point-of-purchase • Gifts • Sales aids
materials • Trade shows • Training materials
• Banners and • Meetings
streamers • Catalogs
• Frequent buyer • Merchandising aids
programs • Videos
• Sponsored events
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 Some Possible Effects of a Sales
Promotion on Sales (Exhibit 15-8)

Period of Period of Period of

promotion promotion promotion
Unit Sales

Unit Sales
Unit Sales

Time Time Time

Sales temporarily increase, Sales temporarily increase and Sales increase and then
then decrease, then return then return remain at higher level
to regular level to regular level

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 Challenges in
Managing
Sales
Promotion

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 Problems in Managing Sales
Promotion
Erodes Need
Brand for
Loyalty Alternatives

Key
Problems
Not
for Hard to
Amateurs Manage

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 Different Types of
Sales Promotion for
Different Targets

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 Key Terms

1. advertising agencies 10. indirect competitive

2. advertising allowances advertising
3. advertising media 11. institutional advertising
4. comparative advertising 12. pay-per-click
5. competitive advertising 13. pioneering advertising
6. cooperative advertising 14. product advertising
7. copy thrust 15. reminder advertising
8. corrective advertising 16. retargeting
9. direct competitive
advertising

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