Chapter 13 Advertising Sales Promotion and Public Relations

Chapter 13 Advertising, Sales Promotion, and Public Relations Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Objectives § Understand advertising, the major types of § § § 2 advertising, and the criticisms of advertising Describe the process of developing an advertising campaign and how marketers evaluate advertising Explain sales promotion, and describe the different types of trade and consumer sales promotions activities Explain the role of public relations (PR) and the steps in developing a PR campaign Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Real People, Real Choices: Decision Time at Bzz. Agent § How should the firm respond to the negative articles which questioned “disclosure” in word-of-mouth marketing campaigns? – Option 1: Take charge of the discussion – Option 2: Defend without being defensive – Option 3: Go quietly 3 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Advertising: The Image of Marketing § Marketers spent $285 billion on advertising in the United States in 2006 § Marketers are increasingly diverting more money into alternative media – Product and brand placements are growing § Advertising: 4 – Nonpersonal communication (paid for by an identified sponsor) that uses mass media to persuade or inform the targeted audience Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Types of Advertising § Product advertising: Focuses on a specific good or service – The ad at left is attempting to generate primary demand for beef 5 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Types of Advertising § Institutional advertising: Promotes the activities, personality, or point of view of an organization or company – Public service announcements (PSA) – Advocacy advertising View American Red Cross PSAs How do they differ from ads for services? 6 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Types of Advertising § Retail and local advertising: Encourages customers to shop at a specific store or use a local service – Ad copy discusses store hours, locations, sales, and featured products § Do-it-yourself advertising – “Generation C” phenomenon: consumergenerated ad content on the Web 7 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

It’s Debatable Class Discussion Question Marketers of items from Doritos to Master. Card are capitalizing upon the “Generation C” craze to locate fresh concepts for advertising. At Master. Card’s Priceless. com Web site, for example, consumers submit their own story and photos explaining how Master. Card helped make an experience or trip “Priceless. ” Is consumer-generated advertising content here to stay? Should marketers compensate consumers for their efforts? Where do you stand? Visit Priceless. com 8 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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 – Limited-service agency – Full-service agency • • 9 Account management Creative services Research and marketing services Media planning Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Ethical Issues in Advertising § Ethical criticisms of advertising: – Advertising is manipulative – Advertising is deceptive and untruthful – Advertising is offensive and in bad taste – Advertising creates and perpetuates stereotypes – Advertising causes people to buy things that they don’t really need 10 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Figure 13. 1 Steps to Develop an Advertising Campaign 11 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Steps in Developing an Advertising Campaign § Step 1: Understand the target audience – Getting inside the consumer’s head can help marketers understand how the product fits into users lives 12 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Steps in Developing an Advertising Campaign § Step 2: Establish message and budget objectives – Inform? Persuade? Remind? What seems to be the objective of the ad shown at left? 13 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Steps in Developing an Advertising Campaign § Step 3: Create the ads – Creative strategy: The process that turns a concept into an advertisement – Advertising appeal: The central idea of the advertisement 14 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Types of Advertising Appeals § Reasons why—the § § § 15 unique selling proposition (USP) Comparative advertising Demonstration Testimonial Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Types of Advertising Appeals § § § 16 Slice of life Lifestyle Fear appeals Sex appeals Humorous appeals Slogans, jingles, and music Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Steps in Developing an Advertising Campaign § Step 4: Pretest what the ads will say – Pretesting: Research method that seeks to minimize mistakes by getting consumer reactions to ad messages before they appear in the media 17 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Steps in Developing an Advertising Campaign § Step 5: Choose the media type(s) and media schedule – Media planning: The process of developing media objectives, strategies, and tactics – Aperture: The best place and time to reach the target market 18 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Where to Say It: Traditional Media § Television § Radio § Newspapers § Magazines § Directories 19 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Where to Say It: Internet Advertising § Banners § Buttons § Pop-up ads § Search engine and directory listings § E-mail – Spamming – Permission marketing 20 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Where to Say It: Indirect Forms of Advertising § Directories § Branded § 21 entertainment Out-of-home media § Advergaming § Place-based media Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Figure 13. 3 Media Schedule for a Video Game 22 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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 ad message in specific vehicles § Impressions: – Measures number of people exposed to a message in one or more vehicles 23 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Media Scheduling: When to Say It § 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 § Gross rating points (GRPs) – Reach multiplied by frequency § Cost per thousand (CPM): – The cost to deliver a message to 1, 000 people 24 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Media Scheduling: How Often to Say It § Typical advertising patterns: – Continuous schedule: Steady stream of advertising throughout year – Pulsing schedule: Varies the amount of advertising based on when the product is likely to be demanded – Flighting schedule: Advertising in short, intense bursts, alternated with periods in which no advertising is done 25 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Steps in Developing an Advertising Campaign § Step 6: Evaluate the advertising – Posttesting: Research on consumers’ responses to advertising they have seen or heard • Unaided recall • Attitudinal measures Nutri. System Video 26 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Sales Promotion § Sales promotions: Programs designed to build interest in or encourage purchase of a product during a specified period of time – Deliver short-term sales results – Can target end consumers, channel partners, and/or employees 27 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Sales Promotion Directed Toward the Trade § Allowances, discounts, and deals – Merchandising allowances – Case allowances § Co-op advertising § Increasing industry visibility – Trade shows – Promotional products – Point-of-purchase (POP) – Incentive programs 28 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Trade Shows Trade shows are a great place to introduce new products, meet potential customers, and take orders 29 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Sales Promotion Directed Toward Consumers § Price-based consumer sales promotion – Coupons – Price deals, refunds, and rebates – Frequency (loyalty/continuity) programs – Special/bonus packs 30 Smart. Source Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Sales Promotion Directed Toward Consumers § Attention-getting consumer promotions – Contests and sweepstakes • Contests are based on skill • Sweepstakes are based on chance – Premiums – Sampling • The premiere technique for generating new product trial Free. Samples. com 31 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Public Relations § Public relations: 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 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Public Relations § Proactive PR activities stem from a firm’s marketing objectives – Publicity Unpaid communication about an organization that gets media exposure § PR is critical when a firm’s image is at risk due to negative publicity – PR staff is responsible for preparing a crisis management plan 33 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Objectives of Public Relations § Typical objectives include: – Introducing new products to manufacturers – Introducing new products to consumers – Influencing government legislation – Enhancing the image of a firm – Enhancing image of a city, region, or country – Calling attention to a firm’s involvement with the community 34 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Planning a PR Campaign § Multistep process includes: – Situation analysis – A statement of objectives – Specification of publics, communicated messages, and specific program elements – Timetable and budget – Discussion of program evaluation plan 35 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Public Relations Activities § Press releases § Corporate identity (various forms) § Media relations § Internal PR § Sponsorships § Investor relations § Special events § Lobbying § Advice and § Speech writing counsel 36 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Eye-Catching Publicity Tylenol hired runners to run on treadmills above Times Square to promote their sponsorship of the NY City Marathon The Weinermobile always gets attention! 37 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Real People, Real Choices: Decision Made at Bzz. Agent § Joe chose option 1 – Implementation: Bzz. Agent took charge of the discussion, refined their disclosure policy, enforced compliance, researched the relationship between disclosure and campaign performance, and issued press releases about revised policy – Measuring success: The disclosure debate did not interfere with the company’s financing or client relationships 38 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Keeping It Real: Fast-Forward to Next Class Decision Time at Woodtronics § Meet Jeffrey Brechman, a principal of the Woodtronics firm § Woodtronics designs and builds trading room furniture, command centers, and network control centers § The decision to be made: Should Jeffrey sell the new or original product to the Jersey City client? 39 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission. Copyright © 2009 Pearson Education, Inc. of the publisher. Printed in the United States of America. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 40 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall