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
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. 3
Advertising: The Image of Marketing • Advertising: nonpersonal communication paid for by an identified sponsor using mass media to persuade or inform an audience 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) 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 • Full-service agency Ø Account management Ø Creative services Ø Research and marketing services Ø Media planning 9
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 10
Advertising Appeal: Central Idea of the Ad Ø Reasons why: the Unique Selling Proposition (USP) Ø Comparative advertising Ø Demonstration Ø Slice of life Ø Lifestyle 11
Advertising Appeal: Central Idea of the Ad (cont’d) Ø Testimonial Ø Fear appeals Ø Sex appeals Ø Humorous appeals Ø Slogans and jingles 12
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 13
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 14
Where to Say It: Traditional Media • • Television Radio Newspapers Magazines Directories Out-of-home media Place-based media 15
Where to Say It: Internet Advertising • • • Banners Buttons Search engine and directory listings Pop-up ads Email Ø Spamming Ø Permission marketing 16
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 17
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 18
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 19
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 20
Step 6: Evaluate the Advertising • Posttesting: research on consumers’ responses to advertising they have seen or heard • Unaided recall • Aided recall 21
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 22
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) 23
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 24
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 25
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. 26
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. 27
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 28
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 29
Public Relations Activities • Press releases (timely topics, research project stories, and consumer information releases) • Internal PR • Investor relations • Lobbying • Speech writing • Corporate identity 30
Public Relations Activities (cont’d) • • • Media relations Sponsorships Special events Buzz-building: word-of-mouth/blogging Advice and counsel 31
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. 32
Marketing Plan Exercise (cont’d) • --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 33
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? 34
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? 35
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