Download Evaluating advertising campaigns

Chapter 15
Advertising, Sales
Promotion, and
Public Relations
Copyright © 2008 Pearson Education Canada
Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Define the roles of advertising, sales
promotion, and public relations in the
promotion mix
2. Describe the major decisions involved in
developing an advertising program
3. Explain how sales-promotion campaigns are
developed and implemented
4. Explain how companies use public relations to
communicate with their publics
Copyright © 2008 Pearson Education Canada
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Principles of Marketing, Seventh Canadian Edition
The United Way of Greater Toronto
• In 2003 thousands of charities
appeared to be fighting for the
same small 5% of donors in
Canada.
• The United Way needed a
campaign that would break
through the clutter and hired the
advertising agency Arnold
Worldwide
• Focus groups confirmed that
donors give to organizations that
have personal meaning to them.
• They also discovered this donors
felt an underlying guilt for not
giving directly to the poor.
• Also, The United Way is seen as
“a helping hand to those in
need”.
Copyright © 2008 Pearson Education Canada
• Strategy: “Giving to the United
Way is the simple way to take
care of those most vulnerable
in the city.
• The campaign used the
imagery of the hand as “an
icon of protection”.
• The campaign run for two
years helping to generate $10
million in donated editorial
and promotional media.
• Results for United Way:
• Donations increased in both
2003 and 2004
• Advertising awareness
increased by 10% in one year.
• Brand image was positively
affected
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Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Know the major decisions
involved in developing an advertising
program.
2. Learn how sales promotion campaigns are
developed and implemented.
3. Learn how companies use public relations to
communicate with their publics.
4. Understand the roles of advertising, sales
promotion, and public relations in the
promotion mix.
Copyright © 2008 Pearson Education Canada
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Principles of Marketing, Seventh Canadian Edition
Advertising
• Advertising
– Any paid form of nonpersonal presentation
and promotion of ideas, goods, or services by
an identified sponsor.
Copyright © 2008 Pearson Education Canada
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Principles of Marketing, Seventh Canadian Edition
Advertising
• Signage in ancient times offers evidence of
early advertising.
• Modern ad spending tops $11 billion in
Canada annually, $498 billion worldwide.
• Business firms, not-for-profit, social
agencies, and professionals all advertise.
Copyright © 2008 Pearson Education Canada
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Principles of Marketing, Seventh Canadian Edition
Key Advertising Decisions
• Setting objectives
• Setting the budget
• Developing the advertising
strategy
• Evaluating advertising
campaigns
• Advertising objectives
can be classified by
primary purpose:
– Inform
• Introducing new products
– Persuade
• Becomes more important
as competition increases
• Comparative advertising
– Remind
• Most important for
mature products
Copyright © 2008 Pearson Education Canada
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Principles of Marketing, Seventh Canadian Edition
Key Advertising Decisions
• Setting objectives
• Setting the budget
• Developing the advertising
strategy
• Evaluating advertising
campaigns
Copyright © 2008 Pearson Education Canada
• Methods of budget
setting were listed in
chapter 14
• Several factors should be
considered when setting
the ad budget:
–
–
–
–
–
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Stage in the PLC
Market share
Level of competition
Ad clutter
Degree of brand
differentiation
Principles of Marketing, Seventh Canadian Edition
Key Advertising Decisions
• Setting objectives
• Setting the budget
• Developing the advertising
strategy
• Evaluating advertising
campaigns
• Creative challenges
– Advertising clutter
– TiVo and PVRs
• Creating ad messages
– Message strategy
• Creative concept or Big
Idea
• Advertising appeal
– Message execution
• Many execution styles
• Tone, format, illustration,
headline, copy
Copyright © 2008 Pearson Education Canada
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Principles of Marketing, Seventh Canadian Edition
Advertising
• Creative Execution Styles
–
–
–
–
–
Slice of Life
Lifestyle
Fantasy
Mood or Image
Musical
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– Testimonial Evidence
or Endorsement
– Personality Symbol
– Technical Expertise
– Scientific Evidence
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Principles of Marketing, Seventh Canadian Edition
Key Advertising Decisions
• Setting objectives
• Setting the budget
• Developing the advertising
strategy (cont.)
• Evaluating advertising
campaigns
• Select advertising media
– Decide on level of reach,
frequency and impact
– Choose among the major
media types by
considering:
• Consumer media habits,
nature of the product,
types of messages, and
costs
– Select specific media
vehicles
– Decide on media timing
Copyright © 2008 Pearson Education Canada
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Principles of Marketing, Seventh Canadian Edition
Advertising
• Major Media Types
–
–
–
–
Newspapers
Television
Direct Mail
Radio
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– Magazines
– Outdoor
– Internet
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Principles of Marketing, Seventh Canadian Edition
Key Advertising Decisions
• Setting objectives
• Setting the budget
• Developing the
advertising strategy
(cont.)
• Evaluating advertising
campaigns
Copyright © 2008 Pearson Education Canada
• Measuring
communications
effect
– Copy testing
• Measuring sales effect
– Compare past sales
with past advertising
expenditures
– Experiments
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Principles of Marketing, Seventh Canadian Edition
Other Advertising Considerations
• Organizing for Advertising
– Small vs. large companies
– Nature of advertising agencies
• Advantages of advertising agencies
• Consolidation and growth of agencies
• Creative boutiques
Copyright © 2008 Pearson Education Canada
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Principles of Marketing, Seventh Canadian Edition
Other Advertising Considerations
• International Advertising Decisions
– 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
Copyright © 2008 Pearson Education Canada
15-15
Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Know the major decisions
involved in developing an advertising
program.
2. Learn how sales promotion campaigns are
developed and implemented.
3. Learn how companies use public relations to
communicate with their publics.
4. Understand the roles of advertising, sales
promotion, and public relations in the
promotion mix.
Copyright © 2008 Pearson Education Canada
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Principles of Marketing, Seventh Canadian Edition
Sales Promotion
• Sales Promotion
– Sales promotions are short-term incentives to
encourage the purchase or sale of a product or
service.
Copyright © 2008 Pearson Education Canada
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Principles of Marketing, Seventh Canadian Edition
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.
– Today, sales promotion accounts for 76% of all
marketing expenditures.
Copyright © 2008 Pearson Education Canada
15-18
Principles of Marketing, Seventh Canadian Edition
Sales Promotion
• Factors contributing to growth of sales
promotion:
– Greater focus on increasing sales in the shortterm
– Greater competition
– Decline in advertising efficiency
– Consumers are more “deal-oriented”
Copyright © 2008 Pearson Education Canada
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Principles of Marketing, Seventh Canadian Edition
Sales Promotion Objectives
• Objectives -- Consumer Promotions:
– Increase short-term sales or long-term market share
– 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
Copyright © 2008 Pearson Education Canada
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Principles of Marketing, Seventh Canadian Edition
Major Sales Promotion Tools
• Consumer Promotion Tools
– Samples
– Coupons
– Cash Refunds
(Rebates)
– Price packs (cents-off
deals)
– Advertising Specialties
Copyright © 2008 Pearson Education Canada
– Premiums
– Patronage Rewards
– Point-of-Purchase
Communications
– Contests, Games, and
Sweepstakes
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Principles of Marketing, Seventh Canadian Edition
Major Sales Promotion Tools
• 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
Copyright © 2008 Pearson Education Canada
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Principles of Marketing, Seventh Canadian Edition
Major Sales Promotion Tools
• Business Promotion Tools
– Includes many of the same tools used in
consumer and trade promotions
– Two additional tools:
• Conventions and trade shows
• Sales contests
Copyright © 2008 Pearson Education Canada
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Principles of Marketing, Seventh Canadian Edition
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
Copyright © 2008 Pearson Education Canada
15-24
Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Know the major decisions
involved in developing an advertising
program.
2. Learn how sales promotion campaigns are
developed and implemented.
3. Learn how companies use public relations to
communicate with their publics.
4. Understand the roles of advertising, sales
promotion, and public relations in the
promotion mix.
Copyright © 2008 Pearson Education Canada
15-25
Principles of Marketing, Seventh Canadian Edition
Public Relations
• 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.
Copyright © 2008 Pearson Education Canada
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Principles of Marketing, Seventh Canadian Edition
Public Relations Functions
• Press Relations
• Product Publicity
• Public Affairs
Copyright © 2008 Pearson Education Canada
• Lobbying
• Investor Relations
• Development
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Principles of Marketing, Seventh Canadian Edition
Public Relations
• Role and Impact of Public Relations
– 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
Copyright © 2008 Pearson Education Canada
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Principles of Marketing, Seventh Canadian Edition
Major Public Relations Tools
•
•
•
•
News
Speeches
Buzz Marketing
Corporate Identity
Materials
• Mobile
Marketing
Copyright © 2008 Pearson Education Canada
• Special Events
• Written Materials
• Audiovisual
Materials
• Public Service
Activities
• Internet
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Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Know the major decisions
involved in developing an advertising
program.
2. Learn how sales promotion campaigns are
developed and implemented.
3. Learn how companies use public relations to
communicate with their publics.
4. Understand the roles of advertising, sales
promotion, and public relations in the
promotion mix.
Copyright © 2008 Pearson Education Canada
15-30
Principles of Marketing, Seventh Canadian Edition