Chapter 13 Advertising Sales Promotion and Public Relations

Chapter 13 Objectives 1. Discuss the effect advertising has on market share, consumers, brand loyalty, and perception of product attributes. 2. Identify the major types of advertising. 3. Describe the advertising campaign process. 4. Describe media evaluation and selection techniques. (continued) Chapter 13 Ver 2 e © 2000 South-Western College Publishing 2

Chapter 13 Objectives 5. Define and state the objectives of sales promotion. 6. Discuss the most common forms of consumer sales promotion. 7. List the most common forms of trade sales promotion. 8. Discuss the role of public relations in the promotional mix. Chapter 13 Ver 2 e © 2000 South-Western College Publishing 3

Effects of Advertising and Market Share Advertising and the Consumer Advertising and Brand Loyalty • New brands spend proportionately more for advertising than old ones. • Beyond a certain level, diminishing returns set in. • Average U. S. citizen is exposed to hundreds of ads each day. • Advertising may change a person’s negative attitude. • Consumers with high brand loyalty are least susceptible to competitive ads. • Ads reinforce positive attitudes. • Advertising can affect a consumer’s rank Advertising of brand attributes. and Product Attributes Chapter 13 Ver 2 e © 2000 South-Western College Publishing 4

Major Types of Advertising The Public Institutional Advertising Investment Community Customers Employees Types of Advertising Pioneering Product Advertising Competitive Comparative Chapter 13 Ver 2 e © 2000 South-Western College Publishing 5

Product Advertising Pioneering • Stimulates primary demand for new product or category Competitive • Influence demand for brand in the growth phase of the PLC. • Often uses emotional appeal. Comparative Chapter 13 Ver 2 e • Compares two or more competing brands’ product attributes. • Used if growth is sluggish, or if competition is strong. © 2000 South-Western College Publishing 6

Steps in Creating an Advertising Campaign Determine the campaign objectives. Make creative decisions. Make media decisions. Evaluate the campaign. Chapter 13 Ver 2 e © 2000 South-Western College Publishing 7

Make Creative Decisions Identify Product Benefits u “Sell the Sizzle, not the Steak” u Sell product’s benefits, not features u A benefit should answer “What’s in it for me? ” u Ask “So? ” to determine if a benefit Chapter 13 Ver 2 e © 2000 South-Western College Publishing 8

Common Advertising Appeals Profit Product saves, makes, or protects money Health Appeals to body-conscious or health seekers Love or romance Used in selling cosmetics and perfumes Fear Social embarrassment, old age, losing health Admiration Reason for use of celebrity spokespeople Convenience Used for fast foods and microwave foods Fun and pleasure Key to advertising vacations, beer, parks Vanity and egotism Used for expensive or conspicuous items Environmental Consciousness Centers around environmental protection Chapter 13 Ver 2 e © 2000 South-Western College Publishing 9

Execute the Message Scientific Slice-of-Life Musical Demonstration Mood or Image Chapter 13 Ver 2 e Lifestyle Common Executional Styles Spokesperson/ Testimonial Fantasy Real/ Animated Product Symbols Humorous © 2000 South-Western College Publishing 10

Make Media Decisions Newspapers Magazines Radio Television Major Types of Advertising Media Chapter 13

National Ad Spending for Media--1997 Yellow Pages Internet Magazines Radio Newspapers Television Chapter 13

Newspapers Advantages u Year-round readership u Geographic selectivity u Immediacy u High individual market coverage u Short lead time Disadvantages u Limited demographic selectivity u Little color u May be expensive u Low pass-along rate u Clutter u Mass market medium Chapter 13 Ver 2 e © 2000 South-Western College Publishing 13

Magazines Advantages Disadvantages u Good reproduction u Higher cost per contact u Demographic selectivity u Long-term advertiser commitments u Regional/local selectivity u Long advertising life u High pass-along rate u Slow audience build-up u Limited demonstration capabilities u Lack of urgency u Long lead time Chapter 13 Ver 2 e © 2000 South-Western College Publishing 14

Radio Advantages u Selectivity and audience segmentation u Immediate and portable u Geographic flexibility u Entertainment carryover u Short-term ad commitments Chapter 13 Ver 2 e Disadvantages u No visual treatment u Short advertising life u High frequency to generate retention u Commercial clutter u Background distractions © 2000 South-Western College Publishing 15

Television Advantages Disadvantages u Wide diverse audience u Short life of message u Low cost per thousand u Expensive with high campaign cost u Creative and demonstrative u Immediacy of messages u Entertainment carryover u Demographic selectivity with cable stations u Little demographic selectivity with network u Long-term advertiser commitments u Long lead times u Clutter Chapter 13 Ver 2 e © 2000 South-Western College Publishing 16

Outdoor Media Advantages Disadvantages u High exposure frequency u Short message u Moderate cost u Lack of demographic selectivity u Flexibility u Geographic selectivity u High “noise” level u Broad, diverse market Chapter 13 Ver 2 e © 2000 South-Western College Publishing 17

Internet and World Wide Web Advantages u Fast growing u Ability to reach narrow target audience u Short lead time u Moderate cost Chapter 13 Ver 2 e Disadvantages u Difficult to measure ad effectiveness and ROI u Ad exposure relies on “click through” u Not all consumers have access to internet © 2000 South-Western College Publishing 18

Alternative Media Fax Machines Video Shopping Carts Examples of Alternative Media Computer Screen Savers Interactive Kiosks Chapter 13 Ver 2 e Ads in Movies and Videos © 2000 South-Western College Publishing 19

Media Selection Considerations Cost per Contact Factors Influencing Media Mix Decisions Reach Frequency Audience

Media Scheduling Continuous Media Schedule Flighted Media Schedule Pulsing Media Schedule Types of Media

Sales Promotion Targets Consumer Sales Promotion Chapter 13 Ver 2 e Trade Sales Promotion

Sales Promotion Immediate Purchases Increase Trial Boost consumer inventory Encourage repurchase Objectives of Sales Promotion Increase ad effectiveness Encourage brand switching Encourage brand loyalty Chapter 13 Ver 2 e © 2000 South-Western College Publishing 23

Tools for Consumer Sales Promotion Coupons and Rebates Premiums Loyalty Marketing Programs Contests & Sweepstakes Popular Tools for Consumer Sales Promotion Chapter 13 Ver 2 e Sampling Point-of-Purchase Promotion © 2000 South-Western College Publishing 24

Consumers & Sales Promotion Goals Type of Buyer Loyal Customers Competitor’s Customers Brand Switchers Price Buyers Chapter 13 Ver 2 e Desired Results Sales Promotion Examples • Reinforce behavior • Loyalty marketing • Increase consumption • Bonus packs • Change timing • Sampling • Break loyalty • Sweepstakes, • Persuade to switch contests, premiums • Price-lowering • Persuade to buy your promotion brand more often • Trade deals • Appeal with low • Coupons, price-off prices packages, refunds • Supply added value • Trade deals © 2000 South-Western College Publishing 25

Tools for Trade Sales Promotion Trade Allowances Push Money Training Free Merchandise Unique Tools for Trade Sales Promotion Chapter 13 Ver 2 e Store Demonstration Conventions & Trade Shows © 2000 South-Western College Publishing 26

Functions of Public Relations Press Relations Product Publicity Corporate Communication Public Affairs Lobbying Employee and Investor Relations Crisis Management Chapter 13 Ver 2 e © 2000 South-Western College Publishing 27

Major Public Relations Tools New Product Publicity Product Placement Tools Used By PR Professionals Customer Satisfaction Phone Lines Consumer Education Event Sponsorship Issue Sponsorship Chapter 13 Ver 2 e Internet Web Sites © 2000 South-Western College Publishing 28