Advertising, Sales Promotion, and Public Relations

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Advertising, Sales Promotion, and Public
Relations
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What is Advertising?

Advertising g any paid form of nonpersonal
presentation and promotion of ideas, goods, or
services by an identified sponsor.
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Major Advertising Decisions

• 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
Informative Advertising Inform Consumers or
Build Primary Demand
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
Comparison Advertising Compares One Brand to
Another
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Setting the Advertising Budget
After determining its advertising objectives, the
marketer must set the Advertising Budget for each
product and market
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Factors in Setting the Advertising Budget
Market Share
Stage in the Product Life Cycle
Competition Clutter
Product Differentiation
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Developing Advertising Strategy
Advertising Strategy consists of two major
elements and it is beneficial to plan 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 Creating Ad
Messages (cont.)
Message Execution Advertiser must turn the big
idea into an actual ad execution that will
capture target markets attention and interest

• Creative people must find the best
• style,
• tone,
• words and
• format for executing the message

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Developing Advertising Strategy Message
Execution Styles
Testimonial Evidence
Slice of Life
Scientific Evidence
Lifestyle
Typical Message Execution Styles
Fantasy
Technical Expertise
Personality Symbol
Mood or Image
Musical
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Developing Advertising Strategy Selecting
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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Developing Advertising Strategy Selecting
Advertising Media (cont.)

• To select media g the advertiser must decide what
  reach and frequency are needed to achieve
  advertising objectives
• Reach g the percentage of people in the target
  market exposed to a particular media schedule at
  least once during a specified time period
• Frequency g the number of times the average
  person in the target market is exposed to an
  advertising message
• Impact g the qualitative value of an exposure
  through a given medium

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Profiles of Major Media Types
Newspapers Advantages Flexibility, timeliness
good local market coverage broad acceptance,
high believability Limitations Short life poor
reproduction quality small pass-along audience
Television Advantages Combines sight, sound,
motion high attention
high reach appealing to senses Limitations Hi
gh absolute costs high clutter fleeting
exposure less audience selectivity
Direct Mail Advantages Audience selectivity
flexibility, no ad compe- tition within same
medium allows personalization Limitations Relat
ive high cost junk mail image
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Profiles of Major Media Types
Radio Advantages Mass use high geographic and
demographic selectivity low cost Limitations
Audio only fleeting exposure lower attention
nonstandardized rates
fragmented audiences
Magazines Advantages High geographic and
demographic selectivity credibility and
prestige high-quality reproduction long life
good pass-along readership Limitations Long ad
purchase lead time waste circulation
no guarantee of position
Outdoor Advantages Flexibility high repeat
exposure low cost low
message competition Limitations Little audience
selectivity creative limitations
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Selecting Specific Media Vehicles

• Choosing the best media vehicles g based on which
  vehicles give the best reach, frequency and
  impact for the money spent
• The cost-per-thousand criterion
• Cost of producing ads for different media
• Other factors such as
• audience quality,
• audience attention,
• editorial quality

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Deciding on Media Timing

• The advertiser must decide how to schedule the
  advertising over the course of a year
• Patterns of the ads
• Continuity g achived by scheduling exposures
  evenly throughout a given period (it is used
  generally in expanding market situations, with
  frequently purchased items, and in tightly
  defined buyer categories)
• Pulsing g continous advertising at low-weight
  levels reinforced periodically by waves of
  heavier activities

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Evaluating Advertising
Advertising Program Evaluation
Jon Steel, of Goodby, Silverstein, and Partners
Communication Effects Is the Ad
Communicating Well?
Sales Effects Is the Ad Increasing Sales?
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Organizing for Advertising
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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What is Sales Promotion ?

Sales Promotion g 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

• Fragmentation of consumer markets
• Brand proliferation g 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
  (increased promotional sensitivity)
• Declining brand loyalty
• Growing retailer power

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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.
• Sales promotion should focus on consumer
  relationship building (rather than creating only
  short-term sales or temporary brand switching)

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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 g involves building good
relations with the companys various publics
by obtaining favorable publicity,
building up a good corporate image, and handling
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