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Marketing
Chapter 18
Advertising, Sales,
Promotion, and Publicity
Gilbert A. Churchill, Jr.
Irwin/McGraw-Hill
J. Paul Peter
© The McGraw-Hill Companies, Inc., 1998
Slide
18-1
Table
18.1
Types of Advertising
Term
Definition
Product
advertising
Advertising that focuses on creating demand for goods,
services, places, persons, or events
Service
advertising
Product advertising of services
Institutional
advertising
Advertising that promotes the name, image, personnel, or
reputation of a company, organization, or industry
Pioneering
advertising
Advertising that attempts to develop primary demand for a
category of product.
Competitive
advertising
Advertising that attempts to develop selective demand for
particular brands of products
Comparative
advertising
Advertising that compares a brand with competitor’s or
with previous formulation
Advocacy
advertising
Institutional advertising that supports particular positions,
activities, or causes
Corrective
advertising
Advertising involving a company running new ads that
correct a deception or unfair advertising message
previously disseminated
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Slide
18-2
Figure
18.2
The Process of Managing Advertising
Review Advertising
Goals and Budget
Create Messages
Select Media
Pretest Ads
Schedule and
Run Ads
Evaluate Advertising
Effectiveness
Adjust Advertising
As Needed
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Slide
18-3
Advertising Appeals
Moral
Humor
Sex
Irwin/McGraw-Hill
Rational
Emotional
Fear
© The McGraw-Hill Companies, Inc., 1998
Slide
18-4
Criteria for Evaluating
Advertising Media
Reach
The number of different persons or households exposed to a
particular advertising media vehicle or a media schedule during
a period of time.
Rating
The percentage of the total potential audience who are
exposed to a particular media vehicle.
Frequency
The average number of times a person, household or member
of a target audience is exposed to a media vehicle or an
advertisers media schedule within a given time period.
Cost per
Thousand
The cost of using a media vehicle to reach 1,000 people or
households.
Gross Ratings
Points
The measure of the total advertising exposures produced by a
specific media vehicle or combination of them during a
specified time. GRP is determined by multiplying reach
percentage by frequency.
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Slide
18-5a
Table
18.2
Relative Merits of Major
Advertising Media
Medium
Advantages
Disadvantages
Television
• Reaches a broad audience
• Provides both audio and
visual information
• Can generate attention
• Low cost per exposure
• High network charges and
production costs
• Limited ability to target customers
• Short exposure time in most
cases
• Limited availability
• Can be zapped by consumers
with remotes
Radio
• Less costly than television
advertising
• Messages can be fairly well
targeted for consumer
markets
• Widely used in many parts
of the world
• Messages are short
• Inability to convey visual
information
• Lower attention than television
• No standard rate structures
• Audience engages in other
activities while listening
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Slide
18-5b
Table
18.2
Relative Merits of Major
Advertising Media
Medium
Print
Irwin/McGraw-Hill
Advantages
• Can provide broad or
targeted exposure
• Cost can be low
• Reader can study an ad
and review detailed
information
• Broad acceptance
• High believability
• Magazine reproduction
quality
is high
• Some pass-along
audience
Disadvantages
• Some print media require
submission well in advance of
publication
• Some print media do not
effectively reproduce color
• No guarantee of ad’s position
• Ads in widely read magazines
and newspapers may be
costly
• Frequency limited by
publication schedule
© The McGraw-Hill Companies, Inc., 1998
Slide
18-5c
Table
18.2
Relative Merits of Major
Advertising Media
Medium
Direct Mail
Irwin/McGraw-Hill
Advantages
• Messages can be
narrowly targeted
• Messages can be
relatively long and
detailed
• No competing ads in
medium
• Performance can be
measured relatively
easily
• Difficult for competitors
to monitor results
Disadvantages
• Relatively high cost
• Poor image of medium
among many customers
• Usually lacks nonadvertising
material to attract readers
• Delivery time and date
cannot be guaranteed
© The McGraw-Hill Companies, Inc., 1998
Slide
18-5d
Table
18.2
Relative Merits of Major
Advertising Media
Medium
Advantages
Disadvantages
Outdoor
• Inexpensive (in the case of
posters)
• High repeat exposure
• Low competition
• Can be placed near point of
sale
• Targets an audience only by
geographic location
• Message viewed very briefly
• Expensive (in the case of
billboards)
• Negative image among
environmentalists
Internet
• Messages can be
customized
• No additional cost for
reaching global markets
• Messages can include
words, pictures, sound
and video
• Not all users speak the same
language used in the ad
• Quality of images varies
• Audience limited to Internet users
interested in the company or
product
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Slide
18-6
Evaluating Advertising
Effectiveness
Aided recall
Marketers show customers an ad, then ask where they have
seen it in the past.
Unaided recall
Marketers ask participants what ads they saw recently.
Inquiry tests
Measure how effective advertising is in creating a favorable
attitude towards products or organizations.
Sales tests
Includes offers requiring some type of response in the ad; the
number of inquiries that result is a measure of the ad’s
effectiveness.
Attitude tests
Involve an effort to find links between advertising and sales.
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Slide
18-7a
Table
18.3
Communications Objectives
of Consumer Promotions
Type
Communications Objectives
Coupons
Stimulate sales by short-term price reductions; obtain trial for
new products.
Deals
Stimulate sales of products, visits to stores; increase quantities
purchased.
Premiums
Attract new customers to existing products; build goodwill; offer
greater value.
Contests and
sweepstakes
Attract attention; create goodwill; increase sales; generate
publicity.
Free samples
Encourage usage by consumers so they can experience
product benefits.
Free trials
Stimulate sales by lowering risk of product being unacceptable
after purchase; provides experience of product’s performance.
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Slide
18-7b
Table
18.3
Communications Objectives
of Consumer Promotions
Type
Communications Objectives
Point of Purchase
Displays
Make products more prominent in stores; increase chances
of impulse purchases; introduce new products.
Rebates
Encourage purchases, particularly for big ticket items; get
customer information for databases.
Continuity plan
Reward customer loyalty; support relationship marketing
efforts; increase sales volumes.
Trade shows
Generate attention and awareness of an industry’s
products; identify prospects; make sales.
Specialty
promotions
Generate awareness of company, products and locations;
get repeated exposures to messages; create goodwill.
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Slide
18-8
Types of Publicity
Press
Releases
News
Conferences
Other
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998
Slide
18-9
Preparing a Press Release
Rules for preparing press releases:
• Keep it short. A single page is best.
• Use clear, concise language, and avoid jargon.
• Polish up the lead (first sentence or paragraph) so
that it grabs the reader’s attention.
• Cite major facts or statistics.
• Include the name and phone number of the person
on the publicity team who can be contacted to
verify the story.
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 1998