Advertising, Sales Promotion, and Public RelationsChapter 15

Learning GoalsUnderstand the roles of advertising, sales promotion, and public relations in the promotion mix.Know the major decisions involved in developing an advertising program.Learn how sales promotion campaigns are developed and implemented.Learn how companies use public relations to communicate with their publics.

Located in Coconut Grove, FLWinner of several creative awardsKnown for guerrilla tactics, unconventional media and holistic marketing strategiesOften suggests changes in the clients procedures, products and processes to enhance brand imageClients include Virgin Airline, MINI cars, Ikea furniture, Molson beer, Truth and Burger KingCase Study Crispin Porter & Bogusky

DefinitionAdvertisingAny paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.Goal 1: Understand the roles of advertising, sales promotion and public relations

AdvertisingSignage in ancient times offers evidence of early advertising.Modern ad spending tops $245 billion in U.S. annually, $498 billion worldwide.Business firms, not-for-profit, social agencies, and professionals all advertise.Goal 1: Understand the roles of advertising, sales promotion and public relations

AdvertisingSetting objectivesSetting the budgetDeveloping the advertising strategyEvaluating advertising campaignsAdvertising objectives can be classified by primary purpose:InformIntroducing new productsPersuadeBecomes more important as competition increasesComparative advertisingRemindMost important for mature productsKey Decisions Goal 2: Know the major decisions involved in developing an advertising program

AdvertisingSetting objectivesSetting the budgetDeveloping the advertising strategyEvaluating advertising campaignsMethods of budget setting were listed in chapter 14Several factors should be considered when setting the ad budget:Stage in the PLCMarket shareLevel of competitionAd clutterDegree of brand differentiation

Key Decisions Goal 2: Know the major decisions involved in developing an advertising program

AdvertisingSetting objectivesSetting the budgetDeveloping the advertising strategyEvaluating advertising campaignsCreative challengesAdvertising clutterTiVo and PVRsCreating ad messagesMessage strategyCreative concept or Big IdeaAdvertising appealMessage executionMany execution stylesTone, format, illustration, headline, copyKey Decisions Goal 2: Know the major decisions involved in developing an advertising program

AdvertisingSlice of LifeLifestyleFantasyMood or ImageMusicalPersonality Symbol Technical ExpertiseScientific EvidenceCreative Execution StylesTestimonial Evidence or EndorsementGoal 2: Know the major decisions involved in developing an advertising program

AdvertisingSetting objectivesSetting the budgetDeveloping the advertising strategyEvaluating advertising campaignsSelect advertising mediaDecide on level of reach, frequency and impactChoose among the major media types by considering:Consumer media habits, nature of the product, types of messages, and costs Select specific media vehiclesDecide on media timing

Key Decisions Goal 2: Know the major decisions involved in developing an advertising program

AdvertisingNewspapersTelevisionDirect Mail

RadioMagazinesOutdoorMajor Media TypesInternetGoal 2: Know the major decisions involved in developing an advertising program

AdvertisingSetting objectivesSetting the budgetDeveloping the advertising strategyEvaluating advertising campaignsMeasuring communications effectsCopy testingMeasuring sales effectCompare past sales with past advertising expendituresExperiments

Key Decisions Goal 2: Know the major decisions involved in developing an advertising program

AdvertisingOrganizing the Advertising FunctionSmall vs. large companiesNature of advertising agenciesAdvantages of advertising agenciesConsolidation and growth of agenciesCreative boutiques

Goal 2: Know the major decisions involved in developing an advertising program

AdvertisingAdvertising to International MarketsStandardizing worldwide advertisingAdvantages include lower advertising costs, greater global advertising coordination, and consistent global imageDrawbacks include ignoring differences in culture, demographics, and economic conditionsMost marketers think globally but act locallyGoal 2: Know the major decisions involved in developing an advertising program

DefinitionSales PromotionSales promotions are short-term incentives to encourage the purchase or sale of a product or service.Goal 3: Learn how sales promotion campaigns are developed and implemented

Sales PromotionSales PromotionsCan be targeted at final buyers, retailers and wholesalers, business customers, and members of the sales force.The use of sales promotions has been growing rapidly.78% are to the trade with 22% to end consumers.Goal 3: Learn how sales promotion campaigns are developed and implemented

Sales PromotionObjectives Consumer Promotions:Increase short-term sales or long-term market shareGenerate product trialObjectives Trade Promotions:Obtaining distribution and shelf spaceEncouraging retailers to advertise the brandObjectives Sales Force Promotions:Signing up new accounts

Goal 3: Learn how sales promotion campaigns are developed and implemented

Sales PromotionSamplesCouponsCash Refunds (Rebates)Price packs (cents-off deals)Advertising Specialties

PremiumsPatronage RewardsPoint-of-Purchase CommunicationsContests, Games, and SweepstakesConsumer Promotion ToolsGoal 3: Learn how sales promotion campaigns are developed and implemented

Sales PromotionTrade Promotion ToolsDiscounts (also called price-off, off-list, and off-invoice)Allowances Advertising allowances Display allowancesFree goodsPush moneySpecialty advertising itemsGoal 3: Learn how sales promotion campaigns are developed and implemented

Sales PromotionBusiness Promotion ToolsIncludes many of the same tools used in consumer and trade promotionsTwo additional tools: Conventions and trade shows Sales contests

Goal 3: Learn how sales promotion campaigns are developed and implemented

Sales PromotionKey Decisions When Developing the Sales Promotion Program:Size of the incentiveConditions for participationPromotion and distribution of the actual sales promotion programLength of the promotional programEvaluationGoal 3: Learn how sales promotion campaigns are developed and implemented

DefinitionPublic Relations:Building good relations with the companys various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.Goal 4: Learn how companies use public relations

Public RelationsPress RelationsProduct PublicityPublic Affairs

LobbyingInvestor RelationsDevelopmentPublic Relations FunctionsGoal 4: Learn how companies use public relations

Public RelationsRole and Impact of Public RelationsStrong impact on public awareness at lower cost than advertisingGreater credibility than advertisingPublicity is often underused Good public relations can be a powerful brand-building toolGoal 4: Learn how companies use public relations

Public RelationsNewsSpeechesBuzz MarketingCorporate Identity Materials Mobile MarketingSpecial EventsWritten MaterialsAudiovisual MaterialsPublic Service ActivitiesInternetPublic Relations ToolsGoal 4: Learn how companies use public relations