Advertising Sales Promotion and Public Relations Chapter Objectives
Advertising, Sales Promotion, and Public Relations
Chapter Objectives • • Define advertising types of advertising campaigns evaluating advertising 2
Chapter Objectives • • sales promotion trade and consumer sales promotions public relations campaigns 3
Advertising: The Image of Marketing • • • Advertising: nonpersonal communication paid for by an identified sponsor using mass media to persuade or inform an audience EXTREME MAKEOVER: HOME EDITION 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 Ø Advocacy advertising Ø Public service announcement (PSA) ROCK THE VOTE 6
Types of Advertising (cont’d) • Retail and local advertising: Øencourages 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 WWW. PRICELESS. COM 7
Who Creates Advertising? • • Advertising campaign: a coordinated, comprehensive plan that carries out promotion objectives results in a series of ads Ø placed in media • over a period of time LEO BURNETT WORLDWIDE 8
Who Creates Advertising? • Limited-service agency • Full-service agency ØAccount management ØCreative services ØResearch and marketing services ØMedia planning Motorola Video 9
Figure 13. 1 : Steps for Advertising Campaigns 10
Steps in Developing an Advertising Campaign • Step 1: ØIdentify the target audiences • Step 2: ØEstablish message objectives Øbudget objectives 11
Steps in Developing an Advertising Campaign • Step 3: Design the Ads ØCreative strategy: Øprocess that turns a concept into an advertisement 12
Advertising Appeals: Central Idea of the Ad Reasons why Unique Selling Proposition (USP) Comparative advertising Demonstration Slice of life Lifestyle 13
Advertising Appeal: Central Idea of the Ad (cont’d) Testimonial Fear appeals Sex appeals Humorous appeals Slogans and jingles 14
Step 4: Pretest What the Ads Will Say • Pretesting: Øseeks to minimize mistakes by getting consumer reactions to ad messages before they appear in the media • Copy testing: Ømeasures effectiveness of ads 15
Step 5: Choose the Media Types and Media Schedule • Media planning: Ødevelops media objectives, strategies and tactics • Aperture: Øis 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
Media Scheduling: When To Say It • Media schedule: Øspecifies exact media to use and when to use it • Advertising exposure: Ødefines degree to which the target market Øwill see an advertising message Øin specific vehicles 19
Media Scheduling: When To Say It • Impressions: Ømeasures number of people Øexposed to a message Øin one or more vehicles 20
Figure 13. 3: Media Schedule for a Video Game 21
Media Scheduling: When To Say It (cont’d) • Reach: Ø measures % of target market • exposed to media vehicle • Frequency: Ø measures average number of times Ø a person in the target group Ø will be exposed to the message 22
Media Scheduling: When To Say It • Gross rating points (GRPs) Ø= reach X frequency • Cost per thousand (CPM): Øthe cost to deliver a message to 1, 000 people 23
Media Scheduling: How Often To Say It • Continuous schedule: Øputs out steady stream of advertising • Pulsing schedule: Øvaries the amount of advertising • Flighting schedule: Øputs ads out in short, intense bursts 24
Step 6: Evaluate the Advertising • Post-testing: Ø 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 ØDeliver short-term sales results ØCan 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 • 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 SMARTSOURCE. COM 28
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 29
Public Relations • PR: Ø communication function that seeks to build good relationships with an organization’s publics. • Publics include Ø consumers, stockholders, legislators, Ø and other firm stakeholders. • Basic rule of good PR: Ø do something good, then talk about it. 30
Public Relations (cont’d) • Proactive PR activities Ø stem from firm’s marketing objectives. • Publicity: Ø unpaid communication about an organization that gets media exposure. • PR is even more important Ø when firm’s image is at risk due to negative publicity. • PR is responsible for Ø preparing a crisis management plan. 31
Objectives of Public Relations • Introducing new products Ø to manufacturers Ø to consumers • Influencing government legislation • Enhancing image of Ø A firm, a city, region, or country • Calling attention Ø to a firm’s involvement with the community 32
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 33
Public Relations Activities • Press releases Ø (timely topics, research project stories, and consumer information releases) • • • Internal PR Investor relations Lobbying Speech writing Corporate identity 34
Public Relations Activities (cont’d) • • Media relations Sponsorships Special events Buzz-building: Ø word-of-mouth/blogging • Advice and counsel 35
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Real People, Real Choices • Bzz. Agent, Inc. (Joe Chernov) • Negative articles questioned “disclosure” in word-of-mouth marketing campaigns • What public relations strategy to use to respond to the criticism? Ø Option 1: take charge of the discussion. Ø Option 2: defend without being defensive. Ø Option 3: go quiet. BZZAGENT. COM 37
Real People, Real Choices • Bzz. Agent, Inc. (Joe Chernov) • Joe chose option 1: take charge of the discussion. Ø Bzz. Agent issued a press release announcing it had enhanced its disclosure policy, becoming the first company to enforce compliance with disclosure policies. 38
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? 39
Discussion • Chevy found that DIY advertising programs can sometimes backfire when consumers created anti-SUV TV commercials. Ø --Should companies avoid DIY campaigns? Ø --What are the benefits of DIY advertising? 40
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. 41
Discussion • When Internet travel company Hotels. nl began using blankets on sheep for advertising, one town fined the company for ignoring a ban on advertising along the highways. Ø --What are the positive and negative aspects for companies of using sheep, or even horses and cows, to advertise products? For consumers? 42
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? 43
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? 44
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. 45
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? 46
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. 47
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? 48
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? 49
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 50
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