Advertising, Sales Promotion, and Public Relations

Advertising,
Sales Promotion, and

Public Relations
Chapter 16
Objectives
• Understand the roles of
advertising, sales promotion,
and public relations in the
promotion mix.
• Know the major decisions
involved in developing an
advertising program.
16 - 2
Objectives
• Learn how sales promotion
campaigns are developed
and implemented.
• Learn how companies use
public relations to
communicate with their
publics.
16 - 3
Case Study
AFLAC
• A few years ago, only • 1999: AFLAC
13% of U.S. developed the “duck”
recognized AFLAC campaign to enhance
brand awareness
• Old ads: “warm and
fuzzy” similar to • Incredibly successful:
other insurance ads name recognition is
now 91%; sales growth
• Goal: break through of 30% each year
advertising clutter campaign has run
16 - 4
Definition
• Advertising
 Any paid form of
nonpersonal presentation
and promotion of ideas,
goods, or services by an
identified sponsor.
16 - 5
Advertising
• Signage in ancient times offers
evidence of early advertising.
• Modern ad spending tops $231
billion in U.S. annually, $500 billion
worldwide.
• Business firms, not-for-profit, social
agencies, and professionals all
advertise.
16 - 6
Advertising
Key • Advertising objectives

can be classified by
Decisions primary purpose:
• Setting objectives  Inform
 Introducing new products
• Setting the budget  Persuade
• Developing the  Becomes more important
as competition increases
advertising strategy  Comparative advertising
• Evaluating advertising  Remind
Most important for mature
campaigns 
products
16 - 7
Advertising
Key • Methods of budget

setting were listed in
Decisions chapter 15
• Setting objectives • Several factors should
• Setting the budget be considered when
setting the ad budget:
• Developing the  Stage in the PLC
advertising strategy  Market share
 Level of competition
• Evaluating advertising  Ad clutter
campaigns  Degree of brand
differentiation
16 - 8
Advertising
Key • Creative challenges

Media fragmentation
Decisions

 Soaring media costs
• Setting objectives  Advertising clutter
• Setting the budget • Creating ad messages
• Developing the  Message strategy
advertising strategy  Creative concept
 Advertising appeal
• Evaluating advertising  Message execution
campaigns  Many execution styles
 Tone, format,
illustration, headline,
copy
16 - 9
Advertising
Creative Execution Styles

• Slice of Life • Musical
• Personality Symbol
• Lifestyle
• Technical Expertise
• Fantasy • Scientific Evidence
• Mood or Image
• Testimonial Evidence or
Endorsement
16 - 10
Advertising
Key • Select advertising media
 Decide on level of reach,
Decisions
frequency and impact
 Choose among the major media
• Setting objectives types by considering:
 Consumer media habits, nature of
• Setting the budget the product, types of messages,
and costs
 Select specific media vehicles
• Developing the  Decide on media timing
advertising strategy
• Evaluating advertising
campaigns
16 - 11
Advertising
Major Media Types
• Newspapers • Radio
• Television • Magazines
• Direct Mail
• Outdoor
• Internet
16 - 12
Advertising
Key • Measuring
communications effects
Decisions  Copy testing
• Setting objectives  Consumer recall
 Product awareness
• Setting the budget
 Product knowledge
• Developing the  Product preference
advertising strategy • Measuring sales effect
• Evaluating advertising  Past vs. current sales
comparison
campaigns
 Experimentation
16 - 13
Advertising
• Organizing the Advertising
Function
 Small vs. large companies
 Nature of advertising agencies
 Advantages of advertising agencies
 Departments
 Compensation
 Changes in agency services
16 - 14
Advertising
• Advertising to International Markets
 Standardizing worldwide advertising
 Advantages include lower advertising costs,
greater global advertising coordination, and
consistent global image
 Drawbacks include ignoring differences in culture,
demographics, and economic conditions.
 Most marketers think globally but act locally
16 - 15
Definition
• Sales Promotion
 Sales Promotions are short-
term incentives to
encourage the purchase or
sale of a product or service.
16 - 16
Sales Promotion
• Sales Promotions
 Can be targeted at final buyers,
retailers and wholesalers,
business customers, and
members of the sales force.
 The use of sales promotions has
been growing rapidly.
16 - 17
Sales Promotion
• Objectives -- Consumer Promotions:
 Increase short-term sales
 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
16 - 18
Sales Promotion
Consumer Promotion Tools

• Samples • Premiums
• Cash Refunds • Patronage Rewards
(Rebates) • Point-of-Purchase
Communications
• Price packs (cents- • Contests, Games, and
off deals) Sweepstakes
• Advertising
Specialties
16 - 19
Sales Promotion
• Trade Promotion Tools
 Discounts ( also called price-off, off-list,
and off-invoice)
 Allowances
 Advertising allowances
 Display allowances
 Free goods
 Push money
 Specialty advertising items
16 - 20
Sales Promotion
• Business Promotion Tools
 Includes many of the same tools used
in consumer and trade promotions
 Two additional tools:
 Conventions and trade shows
 Sales contests
16 - 21
Sales Promotion
• Key Decisions When Developing
the Sales Promotion Program:
 Size of the incentive
 Conditions for participation
 Promotion and distribution of the actual
sales promotion program
 Length of the promotional program
 Evaluation
 Surveys and experiments can be used
16 - 22
Definition
• Public Relations:
 Building good relations with the
company’s various publics by
obtaining favorable publicity,
building up a good corporate
image, and handling or heading
off unfavorable rumors, stories,
and events.
16 - 23
Public Relations
Public Relations Functions
• Press Relations • Lobbying

• Product Publicity
• Investor
• Public Affairs
Relations
• Development
16 - 24
Public Relations
• Role and Impact of Public Relations
 Advantages:
 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
16 - 25
Public Relations
Public Relations Tools

• News • Special Events
• Speeches • Written Materials
• Corporate • Audiovisual
Materials
Identity Materials
• Public Service
• Mobile Activities
Marketing
16 - 26

Advertising, Sales Promotion, and Public Relations

Uploaded by

Copyright:

Available Formats

Advertising, Sales Promotion, and Public Relations

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Advertising, Sales Promotion, and Public Relations

Uploaded by

Copyright:

Available Formats

Advertising,

Sales Promotion, and

Key • Advertising objectives

Key • Methods of budget

Key • Creative challenges

Creative Execution Styles

Major Media Types

Consumer Promotion Tools

Public Relations Functions

• Press Relations • Lobbying

 Publicity is often underused

Public Relations Tools

You might also like