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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Definition
Advertising
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

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Goal 1: Understand the roles of advertising, sales promotion and public relations

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

Advertising
Key Decisions
Setting objectives Setting the budget Developing the
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 15 - 4

Persuade

advertising strategy Evaluating advertising campaigns

Remind

Goal 2: Know the major decisions involved in developing an advertising program

Advertising
Key Decisions
Setting objectives Setting the budget Developing the
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

advertising strategy Evaluating advertising campaigns

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Goal 2: Know the major decisions involved in developing an advertising program

Advertising
Key Decisions
Setting objectives Setting the budget Developing the
Creative challenges
Advertising clutter TiVo and PVRs Message strategy

Creating ad messages
Creative concept or Big Idea Advertising appeal

advertising strategy Evaluating advertising campaigns

Message execution

Many execution styles Tone, format, illustration, headline, copy

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Goal 2: Know the major decisions involved in developing an advertising program

Advertising
Creative Execution Styles
Slice of Life Lifestyle Fantasy Mood or Image Musical Personality Symbol Technical Expertise Scientific Evidence

Testimonial Evidence or Endorsement

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Goal 2: Know the major decisions involved in developing an advertising program

 This type of execution is often based on a problem/solution type of format The ad attempts to portray a real-life situation involving a problem, conflict or situationconsumers may face in their daily lives

SLICE OF LIFE
The ad then focuses on showing how the advertiser's product or service can resolve the problem.

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 Slice-of-life executions are also becoming very common in business-tobusiness advertising

As companies use this approach to demonstrate how their products and services can be used to solve business problems

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Lifestyle
Shows how well the product will fit in with the consumer's lifestyle

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Fantasy
This type of appeal is often used for image advertising by showing an imaginary situation or illusion involving a consumer and the product or service cosmetic companies often use fantasy executionsalthough the technique has also been used inadvertising for other products such as automobilesand beer 15 - 11

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Mood or Image
builds a mood or image around the product, such as peace, love, or beauty.
DeBeers ads depicting shadowy silhouettes wearing diamond engagement rings and diamond necklaces portray passion and intimacy while extolling that a "diamond is forever." 15 - 13

Musical
conveys the message of the advertisement through song for a particular product some occasions lyrics to a popular song would be changed to create a theme song or a jingle for a particular product

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Personality Symbol
the personality this type of symbol can take the execution involves form of a the use of a central personwho is used character or as a spokesperson, personality symbol animated to deliver the charactersor even advertising message animals and with which the product or service can be identified
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 a variation of the straight sell where scientific or technical evidence or information is presented in the ad to support a claim

SCIENTIFIC/TECHNICAL EVIDENCE

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 advertisers present their advertising messages in the form of a testimonial whereby a person speak on behalf of the product or service based on his or her personal use of and/or experiences with it

Testimonial Evidence or Endorsement

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Advertising
Key Decisions
Setting objectives Setting the budget Developing the
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, types of messages, and costs

advertising strategy Evaluating advertising campaigns

Select specific media vehicles Decide on media timing

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Goal 2: Know the major decisions involved in developing an advertising program

Advertising
Major Media Types
Newspapers Television Direct Mail Radio Magazines Outdoor

Internet
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Goal 2: Know the major decisions involved in developing an advertising program

Advertising
Key Decisions
Setting objectives Setting the budget Developing the
Measuring communications effects Measuring sales effect
Copy testing Compare past sales with past advertising expenditures Experiments

advertising strategy Evaluating advertising campaigns

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Goal 2: Know the major decisions involved in developing an advertising program

Advertising
Organizing the Advertising Function
Small vs. large companies Nature of advertising agencies
Advantages of advertising agencies Consolidation and growth of agencies Creative boutiques

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Goal 2: Know the major decisions involved in developing an advertising program

Advertising
Advertising to International Markets
Standardizing worldwide advertising
Advantages include lower advertising costs, greater global advertising coordination, and consistent global image Drawbacks include ignoring differences in culture, demographics, and economic conditions

Most marketers think globally but act locally

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Goal 2: Know the major decisions involved in developing an advertising program

Definition
Sales Promotion
Sales promotions are short-term incentives to encourage the purchase or sale of a product or service.

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Goal 3: Learn how sales promotion campaigns are developed and implemented

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

Sales Promotion
Objectives Consumer Promotions:
Increase short-term sales or long-term market share Generate product trial Obtaining distribution and shelf space Encouraging retailers to advertise the brand Signing up new accounts

Objectives Trade Promotions:

Objectives Sales Force Promotions:

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Goal 3: Learn how sales promotion campaigns are developed and implemented

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, Games, and Sweepstakes

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Goal 3: Learn how sales promotion campaigns are developed and implemented

Sales Promotion
Trade Promotion Tools
Discounts (also called price-off, offlist, and off-invoice) Allowances Free goods Push money Specialty advertising items
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Advertising allowances Display allowances

Goal 3: Learn how sales promotion campaigns are developed and implemented

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

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Goal 3: Learn how sales promotion campaigns are developed and implemented

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
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Goal 3: Learn how sales promotion campaigns are developed and implemented

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

Public Relations
Public Relations Functions
Press Relations Product Publicity Public Affairs Lobbying Investor Relations Development

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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
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Goal 4: Learn how companies use public relations

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