Download Advertising, Sales Promotion, and Public Relations

Chapter 15
Advertising, Sales
Promotion, and Public
Relations
Learning Goals
1.
2.
3.
4.
Know the major decisions
involved in developing an advertising program.
Learn how sales promotion campaigns are developed and
implemented.
Learn how companies use public relations to communicate with
their publics.
Understand the roles of advertising, sales promotion, and public
relations in the promotion mix.
Learning Goals
1.
2.
3.
4.
Know the major decisions
involved in developing an advertising program.
Learn how sales promotion campaigns are developed and
implemented.
Learn how companies use public relations to communicate with
their publics.
Understand the roles of advertising, sales promotion, and public
relations in the promotion mix.
Definition

Advertising

Any paid form of nonpersonal presentation and
promotion of ideas, goods, or services by an
identified sponsor.
Mac vs PC
Advertising



Signage in ancient times offers evidence of
early advertising.
Modern ad spending tops $245 billion in U.S.
annually, $498 billion worldwide.
Business firms, not-for-profit, social agencies,
and professionals all advertise.
Show
Net
Price***
Change
1 Friends
NBC
$473,500
3.9%
2 Will & Grace
NBC
$414,500
10.1%
3 ER
NBC
$404,814
-7.7%
4 Survivor
CBS
$390,367
-6.8%
5 Scrubs
NBC
$360,950
22.5%
6 Coupling
NBC
$316,400
*
7 CSI
CBS
$310,324
10.8%
8 The Simpsons
Fox
$296,440
19.4%
9 24
Fox
$292,200
58.3%
ABC
$272,867
-8.4%
10 Mon. Football
The "Change" field represents the difference from last season.
* 'Coupling' is a new show. There is no previous season comparison
number.
***Price is the cost of placing a 30 second ad in the particular show
In 2005 in Turkey
One of the indicators of improvement in advertising sector is
number of new ads of firms and brands other one is the number of
ads in total.
Last year 717 brands advertised for the first time.
In total 13,810,636 second of ads were run
TV shows were taking the lead.
National TV shows in total had 10,335,659 seconds of ads.
Foreign TV shows in total had 5,726,725 seconds of ads.
Number
1 was (with syndications) "Çocuklar Duymasın“ It was
aired 382 times and had 515,073 seconds of ads.
Number
2 was "En Son Babalar Duyar". It was aired 366 times and
had 469,754 seconds of ads.
Cities
Flavors
Major Advertising Decisions
Figure 15.1
Advertising
Key Decisions

Advertising objectives can be
classified by primary purpose:

Setting objectives
Setting the budget
Developing the advertising
strategy
Evaluating advertising
campaigns
Inform


Persuade



Introducing new products
Becomes more important as
competition increases
Comparative advertising
Remind

Most important for mature
products
Kleenex is a wellknown brand. The
purpose of this ad
is to remind the
consumer.
Advertising
Key Decisions


Setting objectives
Setting the budget
Developing the advertising
strategy
Evaluating advertising
campaigns
Methods of budget setting
were listed in chapter 14
Several factors should be
considered when setting the
ad budget:





Stage in the PLC
Market share
Level of competition
Ad clutter
Degree of brand differentiation
Advertising
Key Decisions

Creative challenges


Setting objectives
Setting the budget
Developing the advertising
strategy
Evaluating advertising
campaigns

Advertising clutter
TiVo and PVR’s
Creating ad messages

Message strategy



Creative concept or Big Idea
Advertising appeal
Message execution


Many execution styles
Tone, format, illustration,
headline, copy
Advertising
Creative Execution Styles




Slice of Life
Lifestyle
Fantasy
Mood or Image






Musical
Personality Symbol
Technical Expertise
Scientific Evidence
Demonstration
Testimonial Evidence or Endorsement
Slice of Life Execution Style
Apple Uses a ____________
+
Crest Whitestrips Uses a __________
+
Use of Music
Use of Fear
Message Source
Marketers hire
celebrities as
spokespersons to add
excitement to the
source of the message
Advertising
Key Decisions

Select advertising media


Setting objectives
Setting the budget
Developing the advertising
strategy
Evaluating advertising
campaigns
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
Advertising
Major Media Types



Newspapers
Television
Direct Mail




Internet
Radio
Magazines
Outdoor
Media Selection
What media
types make
sense for
Segway
Scooters?
Why?
Advertising
Key Decisions

Measuring communications effect


Setting objectives
Setting the budget
Developing the advertising
strategy
Evaluating advertising
campaigns
Copy testing
Measuring sales effect


Compare past sales with past
advertising expenditures
Experiments
Evaluating Advertising
L.L. Bean is
evaluating the
different elements
of the marketing
mix to determine
which led to this
website visit
15 - 30
Marketing in Action
Measuring Online
Advertising Effectiveness



Concerns are growing regarding the effectiveness of
television, especially with the rise of TiVo.
While the overall Ad Industry grows at about 8% per
year, Internet advertising is growing by 29%.
The effectiveness of ads on television are difficult to
measure, as opposed to the Internet where
feedback is instant and the customers leave trails.
15 - 31
Marketing in Action
Measuring Online
Advertising Effectiveness


Web tracking software
enables marketers to
analyze the effectiveness of
their online efforts.
WebTrends is one of many
companies whose products
provide web analytics to
optimize your marketing
and advertising campaigns.
Click on report to
visit website
Marketing in Action
15 - 32
Advertising

Organizing the Advertising Function


Small vs. large companies
Nature of advertising agencies



Advantages of advertising agencies
Consolidation and growth of agencies
Creative boutiques
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
Learning Goals
1.
2.
3.
4.
Know the major decisions
involved in developing an advertising program.
Learn how sales promotion campaigns are developed and
implemented.
Learn how companies use public relations to communicate with
their publics.
Understand the roles of advertising, sales promotion, and public
relations in the promotion mix.
Definition

Sales Promotion

Sales promotions are short-term incentives to
encourage the purchase or sale of a product or
service.
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.
78% are to the trade with 22% to end consumers
Sales Promotion

Objectives -- Consumer Promotions:



Objectives -- Trade Promotions:



Increase short-term sales or long-term market share
Generate product trial
Obtaining distribution and shelf space
Encouraging retailers to advertise the brand
Objectives -- Sales Force Promotions:

Signing up new accounts
Sales Promotion
Consumer Promotion Tools





Samples
Coupons
Cash Refunds
(Rebates)
Price packs (cents-off
deals)
Advertising Specialties




Premiums
Patronage Rewards
Point-of-Purchase
Communications
Contests, Games, and
Sweepstakes
Sales Promotion
This print ad is combined
with a consumer sales
promotion
15 - 43
Sales Promotion

Trade Promotion Tools


Discounts (also called price-off, off-list, and offinvoice)
Allowances





Advertising allowances
Display allowances
Free goods
Push money
Specialty advertising items
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
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
Learning Goals
1.
2.
3.
4.
Know the major decisions
involved in developing an advertising program.
Learn how sales promotion campaigns are developed and
implemented.
Learn how companies use public relations to communicate with
their publics.
Understand the roles of advertising, sales promotion, and public
relations in the promotion mix.
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.
Press Releases are Important for Public
Safety Concerns
The News Reports
The P.R. Response
15 - 50
Marketing in Action
Public Relations
Public Relations Functions



Press Relations
Product Publicity
Public Affairs



Lobbying
Investor Relations
Development
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 brandbuilding tool
Public Relations
Public Relations Tools





News
Speeches
Buzz Marketing
Corporate Identity
Materials
Mobile
Marketing





Special Events
Written Materials
Audiovisual Materials
Public Service
Activities
Internet
Learning Goals
1.
2.
3.
4.
Know the major decisions
involved in developing an advertising program.
Learn how sales promotion campaigns are developed and
implemented.
Learn how companies use public relations to communicate with
their publics.
Understand the roles of advertising, sales promotion, and public
relations in the promotion mix.