Consumers Rule

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Advertising, Sales Promotion, and Public Relations
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Chapter Objectives

• Define advertising
• types of advertising
• advertising campaigns
• evaluating advertising

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Chapter Objectives

• sales promotion
• trade and consumer sales promotions
• public relations
• public relations campaigns

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Advertising The Image of Marketing

• Advertising
• nonpersonal communication
• paid for by an identified sponsor
• using mass media
• to persuade or inform an audience

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Types of Advertising

• Product advertising
• focuses on a specific good/service

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Types of Advertising (contd)

• Institutional advertising
• promotes the activities, personality, or point of
  view of an organization or company
• Advocacy advertising
• Public service announcement (PSA)

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Types of Advertising (contd)

• Retail and local advertising
• encourages customers to shop at a specific store
  or use a local service
• Do-it-yourself advertising
• Generation C phenomenon
• consumer-generated ad content on the Web

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Who Creates Advertising?

• Advertising campaign
• a coordinated, comprehensive plan
• that carries out promotion objectives
• results in a series of ads
• placed in media
• over a period of time

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Who Creates Advertising?

• Limited-service agency
• Full-service agency
• Account management
• Creative services
• Research and marketing services
• Media planning

Motorola Video
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Figure 13.1 Steps for Advertising Campaigns
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Steps in Developing an Advertising Campaign

• Step 1
• Identify the target audiences
• Step 2
• Establish message objectives
• budget objectives

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Steps in Developing an Advertising Campaign

• Step 3 Design the Ads
• Creative strategy
• process that turns a concept into an
  advertisement

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Advertising Appeals Central Idea of the Ad

• Reasons why
• Unique Selling Proposition (USP)
• Comparative advertising
• Demonstration
• Slice of life
• Lifestyle

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Advertising Appeal Central Idea of the Ad
(contd)

• Testimonial
• Fear appeals
• Sex appeals
• Humorous appeals
• Slogans and jingles

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Step 4 Pretest What the Ads Will Say

• Pretesting
• seeks to minimize mistakes by getting consumer
  reactions to ad messages before they appear in
  the media
• Copy testing
• measures effectiveness of ads

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Step 5 Choose the Media Types and Media Schedule

• Media planning
• develops media objectives, strategies and tactics
• Aperture
• is the best place and time to reach the target
  market

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Where to Say It Traditional Media

• Television
• Radio
• Newspapers
• Magazines
• Directories
• Out-of-home media
• Place-based media

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Where to Say It Internet advertising

• Banners
• Buttons
• Search engine and directory listings
• Pop-up ads
• Email
• Spamming
• Permission marketing

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Media Scheduling When To Say It

• Media schedule
• specifies exact media to use and when to use it
• Advertising exposure
• defines degree to which the target market
• will see an advertising message
• in specific vehicles

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Media Scheduling When To Say It

• Impressions
• measures number of people
• exposed to a message
• in one or more vehicles

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Figure 13.3 Media Schedule for a Video Game
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Media Scheduling When To Say It (contd)

• Reach
• measures of target market
• exposed to media vehicle
• Frequency
• measures average number of times
• a person in the target group
• will be exposed to the message

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Media Scheduling When To Say It

• Gross rating points (GRPs)
• reach X frequency
• Cost per thousand (CPM)
• the cost to deliver a message to 1,000 people

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Media Scheduling How Often To Say It

• Continuous schedule
• puts out steady stream of advertising
• Pulsing schedule
• varies the amount of advertising
• Flighting schedule
• puts ads out in short, intense bursts

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Step 6 Evaluate the Advertising

• Post-testing
• research on consumers responses to advertising
  they have seen or heard
• Unaided recall
• Aided recall

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Sales Promotion

• Programs designed to build interest in or
  encourage purchase of a product during a
  specified period of time
• Deliver short-term sales results
• Can target end consumers, channel partners,
  and/or employees

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Sales Promotion DirectedToward the Trade Trade
Promotions

• Discounts and deals
• Merchandising allowances
• Case allowances
• Increasing industry visibility
• Trade shows
• Promotional products
• Incentive programs (push money)

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Sales Promotion DirectedToward Consumers

• Price-Based Consumer Sales Promotion
• Coupons
• Price deals, refunds, and rebates
• Frequency (loyalty/continuity) programs
• Special/bonus packs

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Sales Promotion DirectedToward Consumers (contd)

• Attention-getting consumer promotion
• Contests and sweepstakes
• Premiums
• Sampling
• Point-of-purchase promotion
• Product/brand placements
• Cross-promotion

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Public Relations

• PR
• communication function that seeks to build good
  relationships with an organizations publics.
• Publics include
• consumers, stockholders, legislators,
• and other firm stakeholders.
• Basic rule of good PR
• do something good, then talk about it.

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Public Relations (contd)

• Proactive PR activities
• stem from firms marketing objectives.
• Publicity
• unpaid communication about an organization that
  gets media exposure.
• PR is even more important
• when firms image is at risk due to negative
  publicity.
• PR is responsible for
• preparing a crisis management plan.

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Objectives of Public Relations

• Introducing new products
• to manufacturers
• to consumers
• Influencing government legislation
• Enhancing image of
• A firm, a city, region, or country
• Calling attention
• to a firms involvement with the community

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Planning a Public Relations Campaign

• A statement of objectives
• Situation analysis
• Specification of publics,
• communicated messages, and
• specific program elements
• Timetable and budget
• Discussion of program evaluation plan

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Public Relations Activities

• Press releases
• (timely topics, research project stories, and
  consumer information releases)
• Internal PR
• Investor relations
• Lobbying
• Speech writing
• Corporate identity

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Public Relations Activities (contd)

• Media relations
• Sponsorships
• Special events
• Buzz-building
• word-of-mouth/blogging
• Advice and counsel

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THE END
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Real People, Real Choices

• BzzAgent, Inc. (Joe Chernov)
• Negative articles questioned disclosure in
  word-of-mouth marketing campaigns
• What public relations strategy to use to respond
  to the criticism?
• Option 1 take charge of the discussion.
• Option 2 defend without being defensive.
• Option 3 go quiet.

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Real People, Real Choices

• BzzAgent, Inc. (Joe Chernov)
• Joe chose option 1 take charge of the
  discussion.
• BzzAgent issued a press release announcing it had
  enhanced its disclosure policy, becoming the
  first company to enforce compliance with
  disclosure policies.

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Discussion

• Some people say advertising is obnoxious, insults
  their intelligence, and promotes claims that are
  untrue.
• Others argue it provides value for consumers.
• --What are some arguments on each side?
• --How do you feel about advertising?

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Discussion

• Chevy found that DIY advertising programs can
  sometimes backfire when consumers created
  anti-SUV TV commercials.
• --Should companies avoid DIY campaigns?
• --What are the benefits of DIY advertising?

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Group Activity

• As an account team for an advertising agency,
  your group has been assigned a new line of high-
  quality, high-priced makeup.
• Consider different types of appeals
• USP Comparative advertising
• Fear appeal Celebrity endorsement
• Slice-of-life ad Sex appeal
• Humor
• Outline the strengths and weaknesses of each of
  these appeals for advertising the makeup.

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Discussion

• When Internet travel company Hotels.nl began
  using blankets on sheep for advertising, one town
  fined the company for ignoring a ban on
  advertising along the highways.
• --What are the positive and negative aspects for
  companies of using sheep, or even horses and
  cows, to advertise products? For consumers?

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Discussion

• Through TV remotes, DVDs, computers, and cable
  television, technology gives todays consumers
  control over the advertising images they see.
• --How has this affected
• the advertising industry so far?
• --How do you think consumer
• control will affect advertising
• in the future?

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Discussion

• Companies sometimes teach consumers a bad
  lesson by overusing sales promotion.
• As a result, consumers expect the product always
  to be on sale.
• --What are some products for which this bad
  lesson has occurred?
• --How can companies prevent it?

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Group Project

• Your group works for a firm producing several
  brands of household cleaning products.
• --Develop recommendations for trade and consumer
  sales promotion activities for a new laundry
  detergent
• --In a role-playing situation, present and defend
  your recommendations to your boss.

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Discussion

• Some critics denounce PR specialists, calling
  them flacks or spin doctors whose job is to
  hide the truth about a companys problems
• What is the proper role of PR within an
  organization?
• Should PR specialists try to put a good face on
  bad news?

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Group Activity

• As PR professionals employed by your university,
  your group must develop strategies for improving
  your schools PR program.
• --Write a memo to your university president with
  your recommendations.

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Marketing in Action CaseYou Make the Call

• What is the decision facing Amazon?
• What factors are important in understanding this
  decision situation?
• What are the alternatives?
• What decision(s) do you recommend?
• What are some ways to implement your
  recommendation?

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Keeping It Real Fast-Forward to Next Class,
Decision Time at IBM

• Meet Esther Ferre, a General Manager at IBM.
• IBM sales teams are responsible for IBM
  relationships with clients and are evaluated on
  maximizing revenue and profits.
• The decision How to allocate resources across a
  broad customer base?

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Marketing Plan Exercise

• Think about one of the following
• A new brand of toothpaste
• Your local city or state
• Your university
• Outline an advertising campaign for the product
  and discuss the following
• The type of appeal
• The main message
• The media (include at least one print and one
  broadcast medium)
• How youll develop the ads to share the same look
  and feel