16

Advertising and
Sales Promotion
Strategies

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 CHAPTER OBJECTIVES
1. How can marketers influence the way consumers
think, feel, and act toward a brand?
2. What are the elements of the marketing
communication process?
3. What steps do marketers follow when developing an
advertising plan?
4. Who are the groups that sales promotions focus on?
5. How do sales promotions create incentives to buy?
6. How does public relations influence consumer
perceptions?

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 OBJECTIVE 1

How can marketers influence the

way consumers think, feel, and
act toward a brand?

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D
Marketing communications are
E
F the messages sent from organizations
I
N
E
to members of a target market in order
D
to influence how they think, feel, and
act toward a brand or market offering.

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E
X
P Promotion
L
A
I
N
E
D Place Product

Price

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 Advertising
A
P
P Direct Public
L Marketing
I Relations
E
D Marketing
Communication
Tools
Personal Sales
Selling Promotion

Sponsor

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 OBJECTIVE 2

What are the elements of the

marketing communication
process?

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 MARKETING COMMUNICATION
E
PROCESS
X
P Encoding Medium Decoding
L
A
I
N Sender Receiver
E
D
Noise

Feedback

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 COMMUNICATION OBJECTIVES
A
P Value Need
P Persuasion Recognition
L
I
E Build
D Stimulate Awareness
Action

Reinforce
Brand
Decision
Reminder

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 CONTROL AND CREDIBILITY
A
P
P
L
I
E
D Low Level of Control High

Word of Public Personal Sales Direct

Advertising
Mouth Relations Selling Promotion Marketing

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 VIRAL MARKETING
V
I
D
E
O

L
I
N
K
S

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 RELATIONSHIP BUILDING
A
P
P
Build and Maintain Dialogue with Customers
L
I
E
D

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 OBJECTIVE 3

What steps do marketers follow

when developing an advertising
plan?

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D Advertising is the paid, nonpersonal
E
F
I communication of a marketing
N
E
D
message by an identified
sponsor through mass media.

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 16-15

 ADVERTISING
E
X
P
Paid Message
L
A
I
N Nonpersonal
E
D
Identified
Sponsor

Mass Media

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 PROS AND CONS OF ADVERTISING
E
X
P
Cost-effective
L
A Creative
I
N
Pros
E Educate
D
Unnoticed
Build Dialogue
Misinterpret
Cons
Intrusive

Offend
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 TOP TEN ADVERTISERS IN 2008
T
H Ad Spending
Company
I (in billions)
N Proctor & Gamble $3.3
K Verizon Communications $2.4
General Motors $2.2
A
AT&T $1.9
B
O Johnson & Johnson $1.4
U Time Warner $1.3
T Walt Disney Co. $1.2
General Electric $1.2
I
T GlaxoSmithKline $1.0
Toyota Motor Corp. $1.0

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 16-18

 TOP TEN PRODUCT CATEGORIES
T Ad Spending
H Category
I (in billions)
N Automotive $8.1
K
Pharmaceutical $4.5
A Quick Service Restaurants $4.1
B Department Stores $4.1
O
U Wireless Telephone $3.3
T Motion Picture $3.3
Auto Dealerships – Local $3.2
I
T Direct Response Products $2.5
Restaurants $1.5
Furniture Stores $1.4

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 DEVELOPING AN ADVERTISING PLAN
A
P
P
L
I
E
D

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A Inform
P
P
L
I
E
D
Advertising
Objectives
Persuade

Remind

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 BUDGET
A Percentage of Sales Method
P
P
L
I
E
D

Their Ad Budget $10 m

Our Ad Budget $10 m

Competitive Budget Method

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 MESSAGE AND CREATIVE STRATEGY
A
P
P
L Encode Benefit
I
E d s
D
Something is just not working here

Receive USP
d

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 Execution Description
T Shows “real” people using a product in a normal
H Slice of Life
setting.
I
Shows how a product relates to the lifestyle of the
N Lifestyle
K target market.
Ads using this style build an image (or mood)
Mood or Image
A around a product such as peace or love.
B Car commercials use this so viewers can imagine
O Fantasy
themselves behind the wheel.
U Uses a character, such as the GEICO gecko, to
T Personality Symbol
represent the product.
I Music Uses music to convey the intended message.
T Presents scientific evidence to highlight a
Scientific Evidence
product’s superiority.
Highlights some form of expertise that is perceived
Technical Expertise
to be valuable by the target market.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 16-24
 OBJECTIVES 4 AND 5

Who are the groups that sales

promotions focus on?
How do sales promotions to
create incentives to buy?

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D
E
Sales Promotion is marketer-
F
I controlled communication to stimulate
N
E
D immediate audience response by
enhancing the value of an
offering for a limited time.

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 16-26

 SALES PROMOTIONS
E
X
P
L
A
Sales
I Promotions
N
E
D

Consumer Trade

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 CONSUMER SALES PROMOTIONS
A
P
P Coupons
L Rebates
I
E
D

Sweepstakes

Customer Reward
Loyalty
Card
Programs
Mrs. Valued Shopper
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 TRADE SALES PROMOTIONS
A
P
P
L
I
E
D

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 OBJECTIVE 6

How does public relations influence

consumer perceptions?

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 16-30

D
Public Relations is two-way
E
F communication designed to improve mutual
I
N understanding and positively influence
E
D relationships between the marketer and its
internal
and external publics.

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 PUBLIC RELATIONS
E
X
P
L • Employees
A • Stockholders
I
N • Customers
E Publics • Suppliers
D • Government
• Industry Groups
• Reporters

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 PUBLIC RELATIONS
E
X
P
L
A
I
N
E
D

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 16-33

 PUBLIC RELATIONS (PR)
A
P
P
c t
L
d u nt
o me
Pu
I r
P ce
bl
E
Pla
ici
D

ty
PR
te
ra
po
o r
C

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 SPONSORSHIPS
A
P
P
L Attitudes
I
E
D

Feelings

Awareness

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VISUAL SUMMARY

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 16-36

 All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

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