adv, sales promotion, public relstion chapter 15

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Advertising,Advertising,Sales Promotion, andSales Promotion, and

Public RelationsPublic Relations

Chapter 15


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Learning Goals

1. Understand the roles of advertising, salespromotion, and public relations in thepromotion mix.

2. Know the major decisionsinvolved in developing an advertisingprogram.

3. Learn how sales promotion campaigns aredeveloped and implemented.

4. Learn how companies use public relations

to communicate with their publics.


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Located in CoconutGrove, FL

Winner of severalcreative awards

Known for guerrillatactics,

unconventionalmedia and holisticmarketing strategies

Often suggestschanges in the clients

procedures, productsand processes toenhance brand image

Clients include VirginAirline, MINI cars, Ikea

furniture, Molson beer,Truth and Burger King

ase u yCrispin Porter &

Bogusky


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Definition

Advertising Any paid form of nonpersonal

presentation and promotion ofideas, goods, or services by anidentified sponsor.

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


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Advertising

Signage in ancient times offersevidence of early advertising.

Modern ad spending tops $245billion in U.S. annually, $498billion worldwide.

Business firms, not-for-profit,social agencies, andprofessionals all advertise.

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


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Advertising

Setting objectives

Setting the budget

Developing the

advertising strategy Evaluating

advertisingcampaigns

Advertising objectivescan be classified by

primary purpose: Inform

Introducing newproducts

Persuade Becomes more

important ascompetition increases Comparative

advertising

Remind Most important for

mature products

KeyKey

DecisionsDecisions

2: Know the major decisions involved in developing an advertising pro


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Advertising

Setting objectives

Setting the budget

Developing the



Methods of budgetsetting were listed in

chapter 14 Several factors should

be considered whensetting the ad budget: Stage in the PLC Market share Level of competition Ad clutter Degree of brand

differentiation

KeyKey

DecisionsDecisions



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Advertising

Setting objectives

Setting the budget

Developing the



Creative challenges Advertising clutter TiVo and PVRs

Creating ad messages Message strategy

Creative concept orBig Idea

Advertising appeal

Message execution

Many execution styles Tone, format,

illustration, headline,copy

KeyKey

DecisionsDecisions



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Creative Execution Styles

Advertising

Slice of Life Lifestyle

Fantasy

Mood orImage

Musical Personality Symbol

Technical Expertise

Scientific Evidence

Testimonial Evidence or Endorsement



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Advertising

Setting objectives

Setting the budget

Developing theadvertising strategy

Evaluatingadvertisingcampaigns

Select advertising media Decide on level of reach,

frequency and impact

Choose among the majormedia types by considering:

Consumer media habits,nature of the product, typesof messages, and costs

Select specific mediavehicles

Decide on media timing

KeyKey

DecisionsDecisions



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Major Media TypesMajor Media Types

Advertising

Newspapers

Television

Direct Mail

Radio

Magazines

Outdoor

Internet



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Advertising

Setting objectives

Setting the budget

Developing the



Measuringcommunications effects Copy testing

Measuring sales effect Compare past sales

with past advertisingexpenditures

Experiments

KeyKey

DecisionsDecisions



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Advertising

Organizing the AdvertisingFunction Small vs. large companies Nature of advertising agencies

Advantages of advertising agenciesConsolidation and growth of

agenciesCreative boutiques



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Advertising

Advertising to International Markets Standardizing worldwide advertising

Advantages include lower advertising costs,greater global advertising coordination, andconsistent global image

Drawbacks include ignoring differences inculture, demographics, and economicconditions

Most marketers think globally but actlocally



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Definition

Sales Promotion Sales promotions are short-term

incentives to encourage thepurchase or sale of a product orservice.

3: Learn how sales promotion campaigns are developed and impleme


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Sales Promotion

Sales Promotions Can be targeted at final buyers,

retailers and wholesalers,business customers, andmembers 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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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



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Consumer Promotion Tools

Sales Promotion

Samples Coupons Cash Refunds

(Rebates) Price packs

(cents-off deals) AdvertisingSpecialties

Premiums Patronage Rewards

Point-of-PurchaseCommunications

Contests, Games,and Sweepstakes



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Sales Promotion

Business Promotion Tools Includes many of the same tools

used in consumer and tradepromotions

Two additional tools: Conventions and trade shows

Sales contests



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Sales Promotion

Key Decisions When Developing theSales Promotion Program: Size of the incentive

Conditions for participation

Promotion and distribution of the actualsales promotion program

Length of the promotional program

Evaluation



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Definition

Public Relations: Building good relations with the

companys various publics byobtaining favorable publicity,building up a good corporateimage, and handling or headingoff unfavorable rumors, stories,and events.

Goal 4: Learn how companies use public relations


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Public Relations FunctionsPublic Relations Functions

Public Relations

PressRelations

Product

Publicity Public Affairs

Lobbying

InvestorRelations

Development



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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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Public Relations ToolsPublic Relations Tools

Public Relations

News Speeches

Buzz Marketing

CorporateIdentity Materials

MobileMarketing

Special Events Written

Materials Audiovisual

Materials Public Service

Activities Internet


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