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19-1 Chapter 19 Advertising, Sales Promotion, and Public Relations 19-2 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Goals • Nature and scope of advertising, sales promotion, and public relations • Characteristics of the major types of communication tools • How advertising campaigns are developed and media are selected • Alternative ways firms organize the advertising efforts • How sales promotion is managed to maximize effectiveness • The role of public relations in the promotion mix 19-3 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Advertising Verbal and/or visual Nonpersonal message Delivery through media 19-4 Identified sponsor Payment By sponsor To media Carrying message Advertising Expenditures 19-5 10 National Advertisers 19-6 Types of Advertising TARGET: Consumer or Business TYPE OF DEMAND: Primary or Selective MESSAGE: Product or Institutional SOURCE: Commercial or Social 19-7 Advertising Campaign Advertising Campaign All tasks involved in transforming a theme into a coordinated advertising program to accomplish a specific goal for a product or brand Involves Several different messages Over an extended time Using a variety of media 19-8 Developing an Advertising Campaign Framework for an advertising campaign Identify the Establish Set Target Promotional Promotional Determine promotional audience goals budget theme 19-9 Budgets Vertical Cooperative Advertising Advertising allowance Horizontal Cooperative Advertising 19-10 Creating a Message Attention Influence Execution Appeal 19-11 Selecting Media Type Of Media Category Of Medium 19-12 Specific Media Vehicles Selecting Media: General Factors Objectives of the Ad Time and Location 19-13 Audience Coverage Requirements of the Message Media Cost Media NEWSPAPERS RADIO YELLOW PAGES OUT-OF-HOME 19-14 DIRECT MAIL TV MAGAZINES INTERACTIVE Cost of Advertising 19-15 Evaluating the Advertising Effort Difficulty Of Evaluation 19-16 Methods Used to Measure Effectiveness Organizing for Advertising Internal Departments Advertising Agencies Inside department and Outside Agency 19-17 Sales Promotion Demand-stimulating devices to supplement advertising and facilitate personal selling Trade Promotions 19-18 Consumer Promotions Developing Sales Promotion Plans Determine Objectives and Strategies 19-19 Determine Budgets Direct The Sales Select Promotion Appropriate Effort Techniques Major Sales Promotion Devices 19-20 Examples of Product Placements 19-21 Public Relations Management tool designed to favorably influence attitudes toward an organization, Its products, and its policies 19-22 Benefits of Publicity Lower Costs Increased attention More information Timeliness 19-23 Limitations of Publicity Loss of control Limited exposure Publicity is not free 19-24 Key Terms and Concepts Advertising Advertising media Business-to-Consumer advertising Cost per thousand Primary-demand advertising Selective-demand advertising Comparison advertising Product advertising Institutional advertising Direct tests Indirect tests Advertising agency Sales promotion Public relations Publicity Advertising campaign Cooperative advertising 19-25 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.