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Advertising,Advertising,Sales Promotion, andSales Promotion, and
Public RelationsPublic Relations
Chapter 15
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Learning Goals
1. Understand the roles of advertising, salespromotion, and public relations in thepromotion mix.
2. Know the major decisionsinvolved in developing an advertisingprogram.
3. Learn how sales promotion campaigns aredeveloped and implemented.
4. Learn how companies use public relations
to communicate with their publics.
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Located in CoconutGrove, FL
Winner of severalcreative awards
Known for guerrillatactics,
unconventionalmedia and holisticmarketing strategies
Often suggestschanges in the clients
procedures, productsand processes toenhance brand image
Clients include VirginAirline, MINI cars, Ikea
furniture, Molson beer,Truth and Burger King
ase u yCrispin Porter &
Bogusky
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Definition
Advertising Any paid form of nonpersonal
presentation and promotion ofideas, goods, or services by anidentified sponsor.
1: Understand the roles of advertising, sales promotion and public rela
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Advertising
Signage in ancient times offersevidence of early advertising.
Modern ad spending tops $245billion in U.S. annually, $498billion worldwide.
Business firms, not-for-profit,social agencies, andprofessionals all advertise.
1: Understand the roles of advertising, sales promotion and public rela
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Advertising
Setting objectives
Setting the budget
Developing the
advertising strategy Evaluating
advertisingcampaigns
Advertising objectivescan be classified by
primary purpose: Inform
Introducing newproducts
Persuade Becomes more
important ascompetition increases Comparative
advertising
Remind Most important for
mature products
KeyKey
DecisionsDecisions
2: Know the major decisions involved in developing an advertising pro
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Advertising
Setting objectives
Setting the budget
Developing the
advertising strategy Evaluating
advertisingcampaigns
Methods of budgetsetting were listed in
chapter 14 Several factors should
be considered whensetting the ad budget: Stage in the PLC Market share Level of competition Ad clutter Degree of brand
differentiation
KeyKey
DecisionsDecisions
2: Know the major decisions involved in developing an advertising pro
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Advertising
Setting objectives
Setting the budget
Developing the
advertising strategy Evaluating
advertisingcampaigns
Creative challenges Advertising clutter TiVo and PVRs
Creating ad messages Message strategy
Creative concept orBig Idea
Advertising appeal
Message execution
Many execution styles Tone, format,
illustration, headline,copy
KeyKey
DecisionsDecisions
2: Know the major decisions involved in developing an advertising pro
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Creative Execution Styles
Advertising
Slice of Life Lifestyle
Fantasy
Mood orImage
Musical Personality Symbol
Technical Expertise
Scientific Evidence
Testimonial Evidence or Endorsement
2: Know the major decisions involved in developing an advertising pro
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Advertising
Setting objectives
Setting the budget
Developing theadvertising strategy
Evaluatingadvertisingcampaigns
Select advertising media Decide on level of reach,
frequency and impact
Choose among the majormedia types by considering:
Consumer media habits,nature of the product, typesof messages, and costs
Select specific mediavehicles
Decide on media timing
KeyKey
DecisionsDecisions
2: Know the major decisions involved in developing an advertising pro
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Major Media TypesMajor Media Types
Advertising
Newspapers
Television
Direct Mail
Radio
Magazines
Outdoor
Internet
2: Know the major decisions involved in developing an advertising pro
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Advertising
Setting objectives
Setting the budget
Developing the
advertising strategy Evaluating
advertisingcampaigns
Measuringcommunications effects Copy testing
Measuring sales effect Compare past sales
with past advertisingexpenditures
Experiments
KeyKey
DecisionsDecisions
2: Know the major decisions involved in developing an advertising pro
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Advertising
Organizing the AdvertisingFunction Small vs. large companies Nature of advertising agencies
Advantages of advertising agenciesConsolidation and growth of
agenciesCreative boutiques
2: Know the major decisions involved in developing an advertising pro
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Advertising
Advertising to International Markets Standardizing worldwide advertising
Advantages include lower advertising costs,greater global advertising coordination, andconsistent global image
Drawbacks include ignoring differences inculture, demographics, and economicconditions
Most marketers think globally but actlocally
2: Know the major decisions involved in developing an advertising pro
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Definition
Sales Promotion Sales promotions are short-term
incentives to encourage thepurchase or sale of a product orservice.
3: Learn how sales promotion campaigns are developed and impleme
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Sales Promotion
Sales Promotions Can be targeted at final buyers,
retailers and wholesalers,business customers, andmembers of the sales force.
The use of sales promotions has
been growing rapidly. 78% are to the trade with 22% to
end consumers.
3: Learn how sales promotion campaigns are developed and impleme
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Sales Promotion
Objectives Consumer Promotions: Increase short-term sales or long-term
market share
Generate product trial Objectives Trade Promotions:
Obtaining distribution and shelf space Encouraging retailers to advertise the brand
Objectives Sales Force Promotions: Signing up new accounts
3: Learn how sales promotion campaigns are developed and impleme
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Consumer Promotion Tools
Sales Promotion
Samples Coupons Cash Refunds
(Rebates) Price packs
(cents-off deals) AdvertisingSpecialties
Premiums Patronage Rewards
Point-of-PurchaseCommunications
Contests, Games,and Sweepstakes
3: Learn how sales promotion campaigns are developed and impleme
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Sales Promotion
Business Promotion Tools Includes many of the same tools
used in consumer and tradepromotions
Two additional tools: Conventions and trade shows
Sales contests
3: Learn how sales promotion campaigns are developed and impleme
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Sales Promotion
Key Decisions When Developing theSales Promotion Program: Size of the incentive
Conditions for participation
Promotion and distribution of the actualsales promotion program
Length of the promotional program
Evaluation
3: Learn how sales promotion campaigns are developed and impleme
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Definition
Public Relations: Building good relations with the
companys various publics byobtaining favorable publicity,building up a good corporateimage, and handling or headingoff unfavorable rumors, stories,and events.
Goal 4: Learn how companies use public relations
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Public Relations FunctionsPublic Relations Functions
Public Relations
PressRelations
Product
Publicity Public Affairs
Lobbying
InvestorRelations
Development
Goal 4: Learn how companies use public relations
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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 brand-building tool
Goal 4: Learn how companies use public relations
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Public Relations ToolsPublic Relations Tools
Public Relations
News Speeches
Buzz Marketing
CorporateIdentity Materials
MobileMarketing
Special Events Written
Materials Audiovisual
Materials Public Service
Activities Internet
Goal 4: Learn how companies use public relations
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