CHAPTER THIRTEEN ADVERTISING SALES PROMOTION AND PUBLIC RELATIONS

CHAPTER THIRTEEN ADVERTISING, SALES PROMOTION AND PUBLIC RELATIONS Prepared by Jack Gifford Miami University (Ohio) © 2001 South-Western College Publishing 1

ADVERTISING AND THE CONSUMER g. Advertising affects everyone’s lives and influences many purchases. g. Consumers turn to advertising for its informativeness as well as its entertainment value g. The average American watches 72 minutes of commercials on TV per day © 2001 South-Western College Publishing 2

ADVERTISING AND BRAND LOYALTY g. Consumers with a high degree of brand loyalty are least susceptible to the influence of advertising for competing goods and services. g. Advertising also reinforces positive attitudes toward brands. © 2001 South-Western College Publishing 3

ADVERTISING AND PRODUCT ATTRIBUTES g. Advertising can affect the way consumers rank a brand’s attributes, such as color, taste, smell, and texture g. Advertising can also influence the order in which these attitudes are valued and the relative magnitude of the attribute importance © 2001 South-Western College Publishing 4

MAJOR TYPES OF ADVERTISING g. Institutional advertising g. Product advertising g. Promotes the corporation as a whole g. Designed to influence corporate identity g. Is not usually actionoriented g. Promotes good corporate citizenship g. May take the form of advocacy advertisements of controversial issues © 2001 South-Western College Publishing 5

MAJOR TYPES OF ADVERTISING g. Institutional advertising g. Product advertising g. Promotes the benefits of a specific good or service g. Usually immediate actionoriented g. Includes pioneering, competitive, and comparative advertising © 2001 South-Western College Publishing 6

MAJOR TYPES OF ADVERTISING: PRODUCT ADVERTISING (CONTINUED) g. Pioneering advertising g. Stimulate primary demand for a new product g. First stage of the product life cycle g. Generate attention and interest g. Primarily informational g. Competitive advertising g. Used during growth stage of product life cycle g. Promote brand preference g. Persuade and remind g. Comparative advertising g. Must not make false or misleading statements (FTC) g. Legality and strength of message is different around the globe © 2001 South-Western College Publishing 7

CREATING AN ADVERTISING CAMPAIGN g. Is a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals g. Is related to a specific product or service and runs for a defined period of time DETERMINE CAMPAIGN OBJECTIVES MAKE CREATIVE AND MEDIA DECISIONS © 2001 South-Western College Publishing EVALUATE THE CAMPAIGN 8

CREATING AN ADVERTISING CAMPAIGN DETERMINE CAMPAIGN OBJECTIVES MAKE CREATIVE AND MEDIA DECISIONS EVALUATE THE CAMPAIGN g Identify specific communication task g Identify specific target market(s) g Define period, desired outcomes, and how these outcomes will be measured g DAGMAR = Define Advertising Goals for Measured Advertising Results © 2001 South-Western College Publishing 9

CREATING AN ADVERTISING CAMPAIGN DETERMINE CAMPAIGN OBJECTIVES MAKE CREATIVE AND MEDIA DECISIONS EVALUATE THE CAMPAIGN g. Creative and media decision must work together g. Identify product benefits; “People buy holes, not drills” g. Give the customer a reason to buy your product g. Create a unique selling position © 2001 South-Western College Publishing 10

CREATING AN ADVERTISING CAMPAIGN DETERMINE CAMPAIGN OBJECTIVES g. Execute the message & media g. AIDA: Attention, Interest, Desire, Action g. Select one or more execution styles listed on the following “page” MAKE CREATIVE AND MEDIA DECISIONS EVALUATE THE CAMPAIGN © 2001 South-Western College Publishing 11

EXECUTIONAL STYLES FOR ADVERTISING g. Slice-of-life g. Lifestyle g. Spokesperson / testimonial g. Fantasy g. Humorous g. Real / animated product symbols g. Mood or image g. Demonstration g. Musical g. Scientific g Different combinations of the above are effective in different parts of the world © 2001 South-Western College Publishing 12

MAKING MEDIA DECISIONS © 2001 South-Western College Publishing 13

MAKING MEDIA DECISIONS: MEDIA TYPES g. Newspapers (20. 6%) g. Geographical flexibility g. Timelines g. Often a local media g. High use of horizontal and vertical cooperative advertising g. Short lead time required g. Short-term advertiser commitments g. Year-round readership © 2001 South-Western College Publishing 14

MAKING MEDIA DECISIONS: MEDIA TYPES g. Magazines (16. 2%) g. Good reproduction g. Demographic and regional selectivity g. Relatively long advertising life g. High pass along rate g. Cost per contact is relatively high © 2001 South-Western College Publishing 15

MAKING MEDIA DECISIONS: MEDIA TYPES g. Radio (3. 0%) g. Selectivity and audience segmentation g. Low cost per contact g. Short life of message g. Portable media/drive-time audience g. Making a comeback in popularity © 2001 South-Western College Publishing 16

MAKING MEDIA DECISIONS: MEDIA TYPES g. Television (45. 0%) g. Reach wide, diverse audience g. Low cost per thousand g. Creative opportunities and flexibility (video & audio) g. Immediacy of message g. Entertainment carryover g. Demographic selectivity with cable g. Infomercials © 2001 South-Western College Publishing 17

MAKING MEDIA DECISIONS: MEDIA TYPES g. Outdoor media (1. 7%) g. Billboards, transit signs, Signs in sports centers, etc. g. Flexible, low-cost, geographic selectivity g. High exposure frequency g. Growing in popularity and innovativeness © 2001 South-Western College Publishing 18

MAKING MEDIA DECISIONS: MEDIA TYPES g. Internet and the World Wide Web g. Huge growth g. Widely used search engines g. Used for business-to-business marketing 10: 1 today g. Many new innovations and technologies g. Entrepreneurial opportunities http: //www. amazon. co m g. Alternative media: CD-ROM, kiosks, movies © 2001 South-Western College Publishing 19

MEDIA SELECTION AND SCHEDULING CONSIDERATIONS g. Media selection considerations g. Cost per contact g. Reach and frequency g. Audience selectivity g. Media scheduling g. Continuous media schedule g. Flighted vs pulsing media scheduling g. Seasonal media scheduling © 2001 South-Western College Publishing 20

EVALUATION OF THE ADVERTISING CAMPAIGN g. Measuring outcomes against goals and objectives g. Pre- and post- campaign analysis g. Difficulties in measurement g. Interaction and effect over time g. Cumulative impact g. Imperfect measurement tools © 2001 South-Western College Publishing 21

SALES PROMOTIONS • Contests and sweepstakes g. Sales Promotions are marketing • Coupons and rebates communication activities, other than advertising, personal selling and public • Sampling relations, in which a short-term • Fashion shows incentive motivates consumers or • Entertainment members of the distribution channel to • Premiums purchase a good or service immediately, • Special either by lowering the price or adding incentives, like trips, free goods, value. etc. • Loyalty programs © 2001 South-Western College Publishing 22

SALES PROMOTIONS: OBJECTIVES AND AUDIENCES g. Objectives g. Audiences g. Stimulate immediate action g. Modify behavior and increase loyalty g. Reward performance g. Reinforce existing behavior g. Stimulate repeat purchases g. Consumer sales promotions (the ultimate consumer market) g. Trade sales promotions (members of the marketing channel, such as wholesalers or retailers) Tools include. . . © 2001 South-Western College Publishing 23

TRADE SALES PROMOTIONS INCLUDE. . . g. Trade allowances g. Push money g. Training g. Free merchandise g. Store demonstrations g. Business meetings, conventions, and trade shows g. Special prizes for performance One week vacation for top salesperson and family to Disney World © 2001 South-Western College Publishing 24

PUBLIC RELATIONS g. Evaluates public attitudes of stakeholders g. Identifies issues that may elicit public concern g. Executes programs to… g. Gain public acceptance g. Change public perceptions g. Counter negative events © 2001 South-Western College Publishing 25

SALES PROMOTIONS TARGETED AT WHOLESALERS AND RETAILERS g. Major Forms: g. Trade shows g. International, or regional g. Acts as a marketplace for intermediaries g. Usually category specific (boats, men’s apparel, electronics, etc. ) © 2001 South-Western College Publishing 26

SALES PROMOTIONS TARGETED AT WHOLESALERS AND RETAILERS g. Major Forms: g. Trade shows g. Contests g. Motivate sales force g. Increase sales levels g. Generate excitement and extra earning opportunities g. Persuade sales people to push your line over other similar lines © 2001 South-Western College Publishing 27

SALES PROMOTIONS TARGETED AT WHOLESALERS AND RETAILERS g. Major Forms: g. Trade shows g. Contests g. Point-of-purchase displays g. Capture prime locations within store g. Acts as a silent salesperson g. Stimulate g. Attention g. Interest g. Desire g. Action © 2001 South-Western College Publishing 28

SALES PROMOTIONS TARGETED AT WHOLESALERS AND RETAILERS g. Major Forms: g. Trade shows g. Contests g. Point-of-purchase displays g. Cooperative advertising and promotional programs g. Share cost of promotional activities g. Vertical cooperative advertising (M-W-, M-R, WR) g. Horizontal cooperative advertising (R-R, W-W, MM) © 2001 South-Western College Publishing 29

SALES PROMOTIONS TARGETED AT WHOLESALERS AND RETAILERS g. Major Forms: g. Trade shows g. Contests g. Point-of-purchase displays g. Cooperative advertising and promotional programs g. Allowances g. Price reductions g. Rebates g. Free goods g. Demonstration products © 2001 South-Western College Publishing 30

SALES PROMOTIONS TARGETED AT ULTIMATE CONSUMERS g Product sampling g Cents-off coupons g Rebates g Contests & sweepstakes g Premiums g Multi-purchase offers g Point-of-purchase materials g Product placements g Reach new customers by inducing trial use g New products g New brands g Sample size g Distributed to… © 2001 South-Western College Publishing g Homes g Retail settings g Wherever people are gathered 31

SALES PROMOTIONS TARGETED AT ULTIMATE CONSUMERS g Product sampling g Cents-off coupons g Increase short-term sales g Attract new users g Stimulate heavier usage g Encourage brand switching g Distributed in-store, by mail, and via the Internet © 2001 South-Western College Publishing 32

SALES PROMOTIONS TARGETED AT ULTIMATE CONSUMERS g Product sampling g Cents-off coupons g Rebates g Money back from the manufacturer g Encourage multiple purchases (3 box tops) g Low cost of distribution (on package) © 2001 South-Western College Publishing 33

SALES PROMOTIONS TARGETED AT ULTIMATE CONSUMERS g Product sampling g Cents-off coupons g Rebates g Contests & sweepstakes g Become winners based upon chance g Heavily regulated g Encourage repeat purchases to increase chance of winning © 2001 South-Western College Publishing 34

SALES PROMOTIONS TARGETED AT ULTIMATE CONSUMERS g Product sampling g Cents-off coupons g Rebates g Contests & sweepstakes g Premiums g Free or at a reduced price if another product, the key brand, is purchased © 2001 South-Western College Publishing g Collect a set of glasses g Frequent Flyer Programs g Brand loyalty programs 35

SALES PROMOTIONS TARGETED AT ULTIMATE CONSUMERS g Product sampling g Cents-off coupons g Rebates g Contests & sweepstakes g Premiums g Multi-purchase offers g Two-for-one deals g Encourages bigger than normal purchases g Helps maintain customer loyalty © 2001 South-Western College Publishing 36

SALES PROMOTIONS TARGETED AT ULTIMATE CONSUMERS g Product sampling g Cents-off coupons g Rebates g Contests & sweepstakes g Premiums g Multi-purchase offers g Point-of-purchase materials(POP) g Banners, pamphlets, coasters, napkins, matches g In-store videos g Shopping cart “billboards” © 2001 South-Western College Publishing 37

SALES PROMOTIONS TARGETED AT ULTIMATE CONSUMERS g Product sampling g Cents-off coupons g Rebates g Contests & sweepstakes g Premiums g Multi-purchase offers g Point-of-purchase materials g Product placements g Product or company that appears within a movie or TV show © 2001 South-Western College Publishing 38

PUBLIC RELATIONS AND PUBLICITY g. Public Relations is the managerial activity that identifies, establishes, and maintains beneficial relationships between a company and its many stakeholders g. Publicity is one means of accomplishing public relations g. Involves a third party g. Is free g. Limited control over content © 2001 South-Western College Publishing 39

PUBLICITY g. News Releases g. Press conferences g. Staged newsworthy events g. Photo opportunities Armed forces air shows to generate recruits and positive public support © 2001 South-Western College Publishing 40

PUBLICITY g. Written news releases and videos provided to media g. Appearances of spokespersons g. Participation on talk shows g. Provision of apparel for famous people © 2001 South-Western College Publishing 41

PUBLICITY g. Event Sponsorship g. Sporting events and charity causes g. Provide financial resources, equipment, personal services and/or facilities g. Positive image through association ©Speedo Invitational Swim Meet © 2001 South-Western College Publishing 42

PUBLIC RELATIONS AND CRISIS MANAGEMENT g. PR effort that urgently requires dissemination of information about an emergency g. Product recall g. Takeover rumors g. Corporate accidents (fires, environmental accidents, etc. ) © 2001 South-Western College Publishing 43

EVALUATING AND MONITORING PUBLIC RELATIONS g. Requires a systematic gathering of information for a company’s many publics g. Maintenance of image benchmarks Maintaining the corporate and public pulse! © 2001 South-Western College Publishing 44