Download Advertising, Sales Promotion and Public Relations

Advertising, Sales
Promotion, and Public
Relations
Chapter Objectives
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Define advertising
types of advertising
advertising campaigns
evaluating advertising
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Chapter Objectives
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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
EXTREME MAKEOVER:
HOME EDITION
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Types of Advertising
• Product
advertising:
• focuses on a specific
good/service
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Types of Advertising (cont’d)
• Institutional advertising:
• promotes the activities, personality, or
point of view of an organization or
company
 Advocacy advertising
 Public service announcement (PSA)
ROCK THE VOTE
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Types of Advertising (cont’d)
• 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
WWW.PRICELESS.COM
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Who Creates Advertising?
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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
LEO BURNETT WORLDWIDE
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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 (cont’d)
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
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Television
Radio
Newspapers
Magazines
Directories
Out-of-home media
Place-based media
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Where to Say It: Internet advertising
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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
(cont’d)
• 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 Directed
Toward 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 Directed
Toward Consumers
• Price-Based Consumer Sales Promotion
 Coupons
 Price deals, refunds, and rebates
 Frequency (loyalty/continuity) programs
 Special/bonus packs
SMARTSOURCE.COM
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Sales Promotion Directed
Toward Consumers (cont’d)
• Attention-getting consumer promotion
 Contests and sweepstakes
 Premiums
 Sampling
 Point-of-purchase promotion
 Product/brand placements
 Cross-promotion
FREESAMPLES.COM
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Public Relations
• PR:
 communication function that seeks to build good
relationships with an organization’s 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 (cont’d)
• Proactive PR activities
 stem from firm’s marketing objectives.
• Publicity:
 unpaid communication about an organization that
gets media exposure.
• PR is even more important
 when firm’s 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 firm’s involvement with the community
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Planning a Public Relations Campaign
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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)
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Internal PR
Investor relations
Lobbying
Speech writing
Corporate identity
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Public Relations Activities (cont’d)
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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.
BZZAGENT.COM
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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:
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USP
Fear appeal
Slice-of-life ad
Humor
Comparative advertising
Celebrity endorsement
Sex appeal
• 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
today’s 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
company’s 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 school’s PR
program.
--Write a memo to your university
president with your
recommendations.
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Marketing in Action Case:
You 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 you’ll develop the ads to share the same look and feel
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