Download Chapter 13 - The Citadel

Advertising, Sales
Promotion, and Public
Relations
Chapter Objectives
• Tell what advertising is and describe the major types of
advertising
• Describe the process of developing an advertising
campaign
• Explain how marketers evaluate advertising
• Explain what sales promotion is and describe the
different types of trade and consumer sales promotion
activities
• Explain the role of public relations
• Describe the steps in developing a public relations
campaign
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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.
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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
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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)
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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
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Who Creates Advertising?
• Advertising campaign: a coordinated,
comprehensive plan that carries out
promotion objectives and results in a
series of ads placed in media over a
period of time
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Who Creates Advertising? (cont’d)
• Limited-service agency
• Full-service agency
 Account management
 Creative services
 Research and marketing services
 Media planning
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Steps in Developing an
Advertising Campaign
• Step 1: Identify the target audiences
• Step 2: Establish message and budget
objectives
• Step 3: Design the Ads
 Creative strategy: process that turns a concept into an
advertisement
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Advertising Appeal:
Central Idea of the Ad
 Reasons why: the 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 Type(s) 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
• Impressions: measures number of people
exposed to a message in one or more
vehicles
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Media Scheduling:
When to Say It (cont’d)
• Reach: measures percentage 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 (cont’d)
• 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
• Posttesting: 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
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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
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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
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Introducing new products to manufacturers
Introducing new products to consumers
Influencing government legislation
Enhancing image of a firm
Enhancing image of a city, region, or
country
• Calling attention to a firm’s involvement
with the community
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Planning a Public Relations Campaign
• 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)
• 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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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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Marketing Plan Exercise (cont’d)
• --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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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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