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Copyright 1999 Prentice Hall
15-1
Chapter 15
Advertising, Sales Promotion
and Public Relations
PRINCIPLES OF MARKETINGEighth Edition
Philip Kotler and Gary Armstrong
Copyright 1999 Prentice Hall
15-2What is Advertising?
• Any form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.• U.S. advertisers spend in excess of $175
billion each year.• Advertising is used by:– Business firms,–Nonprofit organizations,–Professionals,–Social Agencies.
Copyright 1999 Prentice Hall
15-3Major Decisions in Advertising
Objectives Setting
Budget Decisions
Message Decisions
Campaign Evaluation
Media Decisions
Copyright 1999 Prentice Hall
15-4
Informative AdvertisingBuild Primary Demand
Setting Objectives
Persuasive AdvertisingBuild Selective Demand
Comparison AdvertisingCompares One Brand to
Another
Advertising Objectives• Specific Communication Task
• Accomplished with a Specific Target Audience • During a Specific Period of Time
Reminder AdvertisingKeeps Consumers Thinking
About a Product.
Copyright 1999 Prentice Hall
15-5Setting the Advertising Budget
Stage in the Product Life Cycle
Competition and Clutter
Market Share
Advertising Frequency
ProductDifferentiation
Factors in Setting the Advertising
Budget
Advertising Budget MethodsAffordable, Percentage of Sales, Competitive-Parity and
Objective-and-Task
Copyright 1999 Prentice Hall
15-6Click to add title
Plan a Message StrategyGeneral Message to Be Communicated to Customers
Advertising StrategyCreating Advertising Messages
Develop a Message Focus on
Customer Benefits Creative Concept“Big Idea”
Visualization or PhraseCombination of Both Advertising Appeals
MeaningfulBelievableDistinctive
Copyright 1999 Prentice Hall
15-7Advertising StrategyMessage Execution
TypicalMessageExecution
Styles
TestimonialEvidence Slice of Life
ScientificEvidence Lifestyle
TechnicalExpertise Fantasy
Musical
PersonalitySymbol
Mood orImage
Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest.
Copyright 1999 Prentice Hall
15-8Advertising StrategySelecting Advertising Media
Step 1. Decide on Reach, Frequency, and Impact
Step 2. Choosing Among Major Media TypesMedia Habits of Target Consumers
Nature of the ProductType of Message
Cost
Step 3. Selecting Specific Media VehiclesSpecific Media Within a Given Type, i.e. Magazines.Must Balance Media Cost Against Media Factors:
Audience Quality & Attention, Editorial Quality
Step 4. Deciding on Media TimingScheduling of Advertising Over the Course of a Year
Pattern of Ads: Continuity or Pulsing
Copyright 1999 Prentice Hall
15-9Advertising Evaluation
Communication Effects
Is the Ad Communicating Well?
Advertising Program Evaluation
Sales Effects
Is the Ad Increasing Sales?
Copyright 1999 Prentice Hall
15-10Ways to Handle Advertising
Sales Departments inSmall Companies
Advertising Agency
Firm that Assists Companiesin Planning, Preparing,
Implementing and Evaluating Their
AdvertisingPrograms.
Advertising Departments in Larger Companies
Copyright 1999 Prentice Hall
15-11International Advertising Decisions
Adaptation of Global Advertising
Advertising Media Costs
& Availability
Regulation of Advertising Practices
Copyright 1999 Prentice Hall
15-12What is Sales Promotion?
• Mass communication technique that offers short-term incentives to encourage purchase or sales of a product or service.
• Rapid growth in the industry has been achieved because:–Product managers are facing more pressure
to increase their current sales,–Companies face more competition,–Advertising efficiency has declined,–Consumers have become more deal oriented.
Copyright 1999 Prentice Hall
15-13
Point-of-PurchaseDisplays
Consumer - Promotion Tools
Premiums
Price Packs
Cash Refunds
Coupons
Samples
Short-Term Incentives to Encourage Purchase or Sales of a Product or Service.
Consumer-Promotion Objectives
Consumer-Promotion Tools
Patronage Rewards
Games
Sweepstakes
Contests
AdvertisingSpecialtiesPatronage Rewards
Entice Consumers to Try a New Product
Lure Customers AwayFrom Competitors’ ProductsGet Consumers to “Load Up’
on a Mature ProductHold & Reward Loyal
CustomersConsumer Relationship
Building
Copyright 1999 Prentice Hall
15-14
Specialty Advertising
Items
Trade - Promotion Tools
Contests
Free Goods
Buy-BackGuarantees
Allowances
Price-Offs
Short-Term Incentives That are Directed to Retailers and Wholesalers.
Trade-Promotion Objectives
Trade-Promotion Tools
Patronage Rewards
Push Money
Discounts
Premiums
Displays
Persuade Retailers or Wholesalers to Carry a Brand
Give a Brand Shelf Space
Promote a Brand in Advertising
Push a Brand to Consumers
Copyright 1999 Prentice Hall
15-15Business - Promotion ToolsShort-Term Incentives That are Directed to
Industrial Customers.
Business-Promotion Objectives
Business-Promotion Tools
Generate Business Leads
Stimulate Purchases
Reward Customers
Motivate Salespeople
Conventions
Trade Shows
Sales Contests
Copyright 1999 Prentice Hall
15-16
Decide on the Size of the Incentive
Set Conditions for Participation
Evaluate the Program
Determine How to Promote andDistribute the Promotion Program
Determine the Length of the Program
Developing the Sales Promotion Program
Copyright 1999 Prentice Hall
15-17What is 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.• Major functions are:– Press Relations or Press Agentry – Product Publicity– Public Affairs– Lobbying– Investor Relations–Development
Copyright 1999 Prentice Hall
15-18
SpecialEvents
Written Materials
Corporate Identity Materials Speeches
News
AudiovisualMaterials
Major Public Relations Tools
Public Service
Activities
Web Site
Copyright 1999 Prentice Hall
15-19Click to add title
Setting Public Relations Objectives
Choosing the Public Relations Messages and Vehicles
Implementing the Public Relations Plan
Evaluating Public Relations Results
Major Public Relations Decisions