Advertising, Sales Promotion, and Public Relations

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Chapter 15

• Advertising, Sales Promotion, and Public Relations

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Advertising

• Advertising is centuries old.
• U.S. advertisers spend in excess of 212 billion
  each year worldwide spending exceeds 414
  billion.
• Advertising is used by
• Business firms,
• Nonprofit organizations,
• Professionals, and
• Social agencies.

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What is Advertising?

Advertising is Any Paid Form of Nonpersonal
Presentation and Promotion of Ideas, Goods, or
Services by an Identified Sponsor.
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Major Advertising Decisions (Fig. 15.1)

• Message Decisions
• Message Strategy
• Message Execution

• Objectives Setting
• Communication objectives
• Sales Objectives

• Budget Decisions
• Affordable Approach
• Percent of sales
• Competitive parity
• Objective and task

• Campaign Evaluation
• Communication Impact
• Sales Impact

• Media Decisions
• Reach, Frequency, Impact
• Major Media Types
• Specific Media Types
• Media Timing

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Setting Advertising Objectives
Persuasive Advertising Build Selective
Demand i.e Sony CD Players
Informative Advertising Inform Consumers or
Build Primary Demand i.e CD Players
Advertising Objective Specific Communication Task
Accomplished with a Specific Target Audience
During a Specific Period of Time
Reminder Advertising Keeps Consumers
Thinking About a Product i.e. Coca-Cola
Comparison Advertising Compares One Brand to
Another i.e. Avis vs. Hertz
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Setting the Promotion Budget
After Determining Its Advertising Objectives, the
Marketer Must Set the Advertising Budget for Each
Product and Market. (From Chapter 14)
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Setting the Advertising Budget

• Factors to be considered when setting the
  advertising budget
• Stage in the product life cycle,
• Market share,
• Competition and clutter,
• Product differentiation.

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Developing Advertising Strategy
Advertising Strategy Consists of Two Major
Elements and Companies are Realizing the Benefits
of Planning These Two Elements Jointly.
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Developing Advertising Strategy Creating Ad
Messages
Plan a Message Strategy General Message to Be
Communicated to Customers
Develop a Message Focus on Customer
Benefits
Creative Concept Big Idea Visualization or
Phrase Combination of Both
Advertising Appeals Meaningful Believable Distin
ctive
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Developing Advertising Strategy Message Execution
Testimonial Evidence
Slice of Life
Turning the Big Idea Into an Actual Ad to
Capture the Target Markets Attention and
Interest.
Scientific Evidence
Lifestyle
Typical Message Execution Styles
Fantasy
Technical Expertise
Personality Symbol
Mood or Image
Musical
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Advertising StrategySelecting Advertising Media
Step 1. Decide on Reach, Frequency, and Impact

Step 2. Choosing Among Major Media Types Media
Habits of Target Consumers, Nature of the
Product, Types of Message, Cost
Step 3. Selecting Specific Media
Vehicles Specific Media Within a Given Type, i.e.
Magazines. Must Balance Media Cost Against Media
Factors Audience Quality Attention, Editorial
Quality
Step 4. Deciding on Media Timing Scheduling of
Advertising Over the Course of a Year Pattern of
Ads Continuity or Pulsing
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Evaluating Advertising
Advertising Program Evaluation
Communication Effects Is the Ad
Communicating Well?
Sales Effects Is the Ad Increasing Sales?
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Discussion Connections

• Advertising objectives can be classified by
  primary purpose to inform, persuade, or remind.
• Using your local newspaper, find examples of ads
  pursuing each of the above.
• Apply Table 15.1 to explain your answers.

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Other Advertising Considerations
Sales Departments in Small Companies
Advertising Departments in Larger Companies
Advertising Agency Firm that Assists
Companies in the Planning, Creation,
Implementation of Their Advertising Programs
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Advertising Agencies

• Large agencies divide their staffs to specialize
  in creative,media,research, or business (account
  planning).
• Ad agencies are moving away from the commission
  system because it no long accurately reflects the
  services performed.
• Most ad agency clients still want just a few of
  the services that can be provided by the agency,
  so diversification efforts have been limited.

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International Advertising Decisions
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What is Sales Promotion ?

Sales Promotion is a Mass Communication Technique
That Offers Short-Term Incentives to Encourage
Purchase or Sales of a Product or Service. Offers
Reasons to Buy Now.
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Rapid Growth of Sales Promotion

• Sales promotion can take the form of consumer
  promotions, business promotions, trade promotions
  or sales force promotions.
• Rapid growth in the industry has been achieved
  because
• Product managers are facing more pressure to
  increase their current sales,
• Companies face more competition,
• Advertising efficiency has declined,
• Consumers have become more deal oriented.

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Sales Promotion Objectives

• Increase short-term sales or help build long-term
  market share.
• Get retailers to
• carry new items and more inventory,
• advertise products,
• give products more shelf space, and
• buy product ahead.
• In general, sales promotion should focus on
  consumer relationship building.

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Major Consumer Sales Promotion Tools
Sample
Trial amount of a product
Coupons
Savings when purchasing specified products
Cash Refunds
Refund of part of the purchase price
Price Packs
Reduced prices marked on the label or package
Premiums
Goods offered free or low cost as an incentive to
buy a product
Advertising Specialties
Articles imprinted with an advertisers name
given as gifts
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Major Consumer Sales Promotion Tools
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Major Trade Sales Promotion Tools
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Major Business Sales Promotion Tools
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Developing the Sales Promotion Program
Decide on the Size of the Incentive
Set Conditions for Participation
Determine How to Promote and Distribute the
Promotion Program
Determine the Length of the Program
Evaluate the Program
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What is Public Relations?

Public Relations Involves 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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Major Public Relations Functions
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Major Public Relations Tools
News
Web Site
Speeches
Special Events
Public Service Activities
Corporate Identity Materials
Written Materials
Audiovisual Materials
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Major Public Relations Decisions
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Review of Concept Connections

• Define the roles of advertising, sales promotion,
  and public relations in the promotion mix.
• Describe the major decisions involved in
  developing an advertising program.
• Explain how sales promotion campaigns are
  developed and implemented.
• Explain how companies use public relations to
  communicate with their publics.