Advertising, Sales Promotion, and Public Relations

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Chapter 20

• Advertising, Sales Promotion, and Public Relations

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Advertising

• Nonpersonal communication paid for by an
  identified sponsor using mass media to inform or
  persuade
• Public Service Announcementsadvertisements run
  on time or space donated by the media

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Types of Advertisements

• Pioneering--informative, tell us about product
  or
• company, where it can be found, what it can
  do
• Competitive--promotes a specific brand or
  companys
• benefits and features
• Comparativeshow one brands strengths relative
  to
• competitor
• Reminder--reinforce previous knowledge of
  product or
• company
• Reinforcementreassure customers
• Advocacy--state position of company on an issue

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The Advertising Decision Process


Planning
Implementation
Control

• Developing the
• advertising program
• Identify the targetaudience
• Specify theobjectives
• Set the budget
• Design the ad
• Select the rightmedia
• Schedule theadvertising

• Executing the
• advertising program
• Pretest theadvertising
• Carry out theadvertising

• Evaluating the
• advertising program
• Post-test the advertising
• Make neededchanges

Corrective actions
Corrective actions
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Designing the Ad

• Fear appealsavoid negative experience of
  non-use/use
• Sex appealsget attention, increases
  attractiveness of user
• Humor appealsdraw audience in, product seems
  more fun
• Emotional appealsplay on feelings, product
  seems real
• Endorsementstestimonials about product
  effectiveness
• done by celebrities, experts, or ordinary
  people
• Slice of Lifeproduct use situations in
  everyday life
• Demonstrationsshow product in action
• Symbolismvisual images to depict product
  benefits
• Comparisonstrength of product relative to
  competition

This list is not exhaustive! There are other
types of appeals.
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Selecting the Right Media
MEDIUM ADVANTAGES DISADVANTAGES Television reac
hes extremely large high cost to prepare and
run audience uses picture, print, ads short
exposure time and sound, and motion for
effect, perishable message difficult to can
target specific audiences. convey complex
information. Radio low cost can target
specific no visual excitement short audiences
ads can be placed exposure time and
perishable quickly can use sound, message
difficult to convey humor, and intimacy
complex information. effectively.
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Selecting the Right Media
MEDIUM ADVANTAGES DISADVANTAGES Magazines can
target specific audiences long time needed to
place ad high quality color long life
of limited control of ad position ad ads can
be clipped and relatively high cost
competes saved can convey complex for
attention with other information. magazine
features. Newspapers excellent coverage of
local ads compete for attention with markets
ads can be placed other newspaper features
cant and changed quickly ads can control ad
position on page saved quick consumer short
life span cant target response low
cost. specific audiences.
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Selecting the Right Media
MEDIUM ADVANTAGES DISADVANTAGES Internet video
and audio capabilities animation and
interactivity animation can improve require
large files and more attention ads can be
time to load effectiveness is interactive
and link to still uncertain. advertiser. Outd
oor low cost local market focus message must be
short and high visibility opportunity simple
low selectivity of for repeat
exposures. audience criticized as
a traffic hazard, eyesore.
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The Language of the Media Buyer
Term What It Means Reach The number of
different people or households exposed to an
advertisement. Rating The percentage of
households in a market that are tuned to a
particular TV show or radio station.
Frequency The average no. of times an individual
is exposed to an advertisement. Gross rating
points (GRPs) Reach (expressed as a of the
total market) multiplied by frequency. Cost
per thousands (CPM) The cost of advertising
divided by the number of thousands of
individuals or households who are exposed.
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Scheduling the Advertising
Most companies follow one of three basic
approaches
Continuous (drip) Steady schedule throughout
the Schedule year. Flighting (intermittent) Adve
rtising reflects seasonal Schedule demand Pulse
(burst) Schedule Steady and flighting schedules
are combined
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Executing Evaluating the Advertising

• Pretesting
• Portfolio Testsconsumers shown several ads,
  evaluate
• Jury Testsconsumers shown ad and give
  impressions
• Theater Testsconsumers view new shows, ads
  embedded, give impressions
• Post-testing
• Aided Recallrecognize ad or parts of it
• Unaided Recallwhat ads did you see?
• Attitudemeasure changes in attitude after
  campaign
• Inquiryresponse to offers of information or
  goods
• Sales Teststest marketing ads on limited basis

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Sales Promotion

• A program designed to build interest in or
  encourage purchase of a product during a
  specified time period

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Consumer Oriented Sales Promotions

• Couponscents-off discounts
• encourage trial
• Dealse.g., buy one, get one free
• increase trial, use to retaliate against
  competitors
• Premiumsfree/discounted merchandise
• build goodwill
• Contestse.g., name the ____ or halftime
  shoot-out
• increase involvement with product
• Sweepstakesgames of chance, lotteries
• increase product use

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Consumer Oriented Sales Promotions

• Samples--free product
• generate trial
• Continuity Programs--trading stamps, frequent
  users
• encourage repeat purchase, create loyalty
• POP Displays--in-store advertising, interactive
  kiosks
• increase trial, impulse purchasing, product
  visibility
• Rebates--cash back for purchase
• encourage purchase, stimulate demand
• Product Placements--products in TV, movies,
  videos
• introduce new products, demonstrate product use

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Trade Promotions

• Allowances and Discounts
• Cooperative Advertising
• Training of Salespeople

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Public Relations

• Attempts to influence the way consumers,
  stockholders, and others feel about organizations
  and products
• Do something good, then talk about it!
• Objectives introduce new products, enhance
  image
• Publicity unpaid (or indirectly paid)
  nonpersonal communication about an organization
  or product in the media

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Publicity Tools

• News/press releases
• News conferences
• Stunts
• High visibility individuals

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Rules of Thumb for Handling Negative Publicity

• Start early (i.e., immediately)
• Place customer interests above your own
• Make it a company-wide, team effort
• Take a long-term view
• Dont forget that public perception is more
• important than reality