Advertising Sales Promotion and Public Relations Chapter Objectives
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 2
Advertising: The Image of Marketing • Advertising: nonpersonal communication paid for by an identified sponsor using mass media to persuade or inform an audience 3
Discussion • Some people say advertising is obnoxious, insults their intelligence, and promotes claims that are untrue. • Others argue it provides value for consumers. --What are some arguments on each side? --How do you feel about advertising? 4
Types of Advertising • Product advertising: focuses on a specific good/service 5
Types of Advertising (cont’d) • Institutional advertising: promotes the activities, personality, or point of view of an organization or company Advocacy advertising (e. g. voting) Public service announcement (PSA) (e. g. safety belt) 6
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 Ø “Generation C” phenomenon: consumer-generated ad content on the Web 7
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 8
Who Creates Advertising? (cont’d) • Limited-service agency (media buying, creative development) • Full-service agency Ø Account management (soul) Ø Creative services (heart) Ø Research and marketing services (brain) Ø Media planning (legs) 9
Figure 13. 1: Steps in Developing an Advertising Campaign 10
Steps in Developing an Advertising Campaign • Step 1: Identify the target audiences • Step 2: Establish message and budget objectives • Step 3: Design the Ads Ø Creative strategy: process that turns a concept into an advertisement 11
Advertising Appeal: Central Idea of the Ad Reasons why: the Unique Selling Proposition (USP) Comparative advertising Demonstration Slice of life Lifestyle 12
Advertising Appeal: Central Idea of the Ad (cont’d) Testimonial Fear appeals Sex appeals Humorous appeals Slogans and jingles 13
Group Activity • As an account team for an advertising agency, your group has been assigned a new line of high - quality, high-priced makeup. • Consider different types of appeals: Ø Ø USP Fear appeal Slice-of-life ad Humor Comparative advertising Celebrity endorsement Sex appeal • Outline the strengths and weaknesses of each of these appeals for advertising the makeup. 14
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 15
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 16
Where to Say It: Traditional Media • • Television Radio Newspapers Magazines Directories Out-of-home media Place-based media 17
Where to Say It: Internet advertising • • • Banners Buttons Search engine and directory listings Pop-up ads Email Ø Spamming Ø Permission marketing 18
Discussion • Through TV remotes, DVDs, computers, and cable television, technology gives today’s consumers control over the advertising images they see. Ø --How has this affected the advertising industry so far? Ø --How do you think consumer control will affect advertising in the future? 19
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 20
Figure 13. 3: Media Schedule for a Video Game 21
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 22
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 23
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 24
Step 6: Evaluate the Advertising • Posttesting: research on consumers’ responses to advertising they have seen or heard • Unaided recall • Aided recall 25
Sales Promotion • Programs designed to build interest in or encourage purchase of a product during a specified period of time Ø Deliver short-term sales results Ø Can target end consumers, channel partners, and/or employees 26
Sales Promotion Directed Toward the Trade: Trade Promotions • Discounts and deals Ø Merchandising allowances Ø Case allowances • Forward buying and diverting • Increasing industry visibility Ø Trade shows Ø Promotional products Ø Incentive programs (push money) 27
Sales Promotion Directed Toward Consumers • Price-Based Consumer Sales Promotion Ø Coupons Ø Price deals, refunds, and rebates Ø Frequency (loyalty/continuity) programs Ø Special/bonus packs 28
Discussion • Companies sometimes teach consumers a “bad lesson” by overusing sales promotion. • As a result, consumers expect the product always to be “on sale. ” Ø --What are some products for which this bad lesson has occurred? Ø --How can companies prevent it? 29
Sales Promotion Directed Toward Consumers (cont’d) • Attention-getting consumer promotion Ø Contests and sweepstakes Ø Premiums Ø Sampling Ø Point-of-purchase promotion Ø Product/brand placements Ø Cross-promotion FREESAMPLES. COM 30
Group Project • Your group works for a firm producing several brands of household cleaning products. Ø --Develop recommendations for trade and consumer sales promotion activities for a new laundry detergent Ø --In a role-playing situation, present and defend your recommendations to your boss. 31
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. 32
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. 33
Discussion • Some critics denounce PR specialists, calling them “flacks” or “spin doctors” whose job is to hide the truth about a company’s problems Ø What is the proper role of PR within an organization? Ø Should PR specialists try to put a good face on bad news? 34
Objectives of Public Relations • • • 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 35
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 36
Public Relations Activities • Press releases (timely topics, research project stories, and consumer information releases) • Internal PR • Investor relations • Lobbying • Speech writing • Corporate identity 37
Public Relations Activities (cont’d) • • Media relations Sponsorships Special events Buzz-building: word-ofmouth/blogging • Advice and counsel 38
Group Activity • As PR professionals employed by your university, your group must develop strategies for improving your school’s PR program. --Write a memo to your university president with your recommendations. 39
Marketing Plan Exercise • Think about one of the following: Ø A new brand of toothpaste Ø Your local city or state Ø Your university • Outline an advertising campaign for the product and discuss the following: Ø The type of appeal Ø The main message Ø The media (include at least one print and one broadcast medium) Ø How you’ll develop the ads to share the same look and feel 40
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