One to Many: Advertising, Public Relations, and Consumer Sales Promotions Chapter Thirteen © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

13-2 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Chapter Objectives  Tell what advertising is, describe the major types of advertising, and discuss some of the criticisms of advertising  Describe the process of developing an advertising campaign and how marketers evaluate advertising  Explain the role of public relations and the steps in developing a public relations campaign  Explain what sales promotion is, and describe the different types of consumer sales promotions activities

13-3 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Real People, Real Choices: Decision Time at Brownstein Group Brand Communication  How should the firm respond to the competitive marketing communications attack launched against their client’s new product? Option 1: Clearly define the new product Option 1: Clearly define the new product Option 2: Fire back Option 2: Fire back Option 3: Launch a guerrilla marketing strategy that attacks the rival more subtly than a major advertising campaign Option 3: Launch a guerrilla marketing strategy that attacks the rival more subtly than a major advertising campaign

13-4 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Advertising: The Image of Marketing  Expenditures on traditional advertising are declining  Marketers are diverting more money into alternative media  Advertising is still best way to reach mass audiences

13-5 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Types of Advertising  Product advertising: Focuses on a specific good or service  Institutional advertising: Promotes the activities, personality, or point of view of an organization or company Corporate advertising Corporate advertising Advocacy advertising Advocacy advertising Public service announcements (PSA) Public service announcements (PSA)

13-6 © 2012 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 Ad copy discusses store hours, locations, sales, and featured products

13-7 © 2012 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  Outside agencies are often retained to oversee campaigns: Limited-service agency Limited-service agency Full-service agency Full-service agency

13-8 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. User-Generated Advertising Content: Do-it- Yourself Advertising and Crowdsourcing  User-generated content (UGC) or consumer-generated media (CGM) Must be monitored and encouraged Must be monitored and encouraged  More trustworthy  The internet is primary source of information for many consumers  Do-it-yourself (DIY) ads offer several benefits  Crowdsourcing can be helpful

13-9 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Ethical Issues in Advertising  Ethical criticisms of advertising: Advertising is manipulative Advertising is manipulative Advertising is deceptive and untruthful Advertising is deceptive and untruthful  Greenwashing  Corrective advertising  Puffery Advertising is offensive and in bad taste Advertising is offensive and in bad taste Advertising creates and perpetuates stereotypes Advertising creates and perpetuates stereotypes Advertising causes people to buy things that they don’t really need Advertising causes people to buy things that they don’t really need

13-10 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Develop the Advertising Campaign  Step 1: Identify the target audience Research identifies audiences Research identifies audiences  Step 2: Establish message and budget objectives Advertising message and budget objectives must be consistent with the overall campaign Advertising message and budget objectives must be consistent with the overall campaign

13-11 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Develop the Advertising Campaign  Step 3: Create the ads Creative strategy: The process that turns a concept into an advertisement Creative strategy: The process that turns a concept into an advertisement Advertising appeal: The central idea or theme of the ad Advertising appeal: The central idea or theme of the ad Execution format: Basic structure of the message Execution format: Basic structure of the message Tonality: The mood or attitude the message conveys Tonality: The mood or attitude the message conveys

13-12 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Develop the 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 Pretesting: Research method that seeks to minimize mistakes by getting consumer reactions to ad messages before they appear in the media

13-13 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Develop the Advertising Campaign  Step 5: Choose the media type(s) and media schedule Media planning: The process of developing media objectives, strategies, and tactics Media planning: The process of developing media objectives, strategies, and tactics

13-14 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Where To Say It: Traditional Media  Each of the traditional media has pros and cons that include: Television Television Radio Radio Newspapers Newspapers Magazines Magazines

13-15 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Where To Say It: Digital Media  Digital media takes many forms Own, paid, and earned media Own, paid, and earned media Website advertising Website advertising Banners and buttons Banners and buttons Pop-up ads Pop-up ads Search engines and directory listings Search engines and directory listings advertising advertising Mobile advertising Mobile advertising Video sharing Video sharing

13-16 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Where To Say It: Branded Entertainment  Branded entertainment A form of advertising in which marketers integrate products into entertainment venues Product placements Product placements Advergaming Advergaming

13-17 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Where To Say It: Support Media  Support media reaches people who are not reached by mass media advertising include: Directories Directories Out-of-home media Out-of-home media Place-based media Place-based media RFID technology RFID technology

13-18 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. When To Say It: Media Scheduling  Media schedule: Specifies exact media to use and when to use it Specifies exact media to use and when to use it  Quantitative factors used in media scheduling: Reach Reach Frequency Frequency Gross rating points (GRPs) Gross rating points (GRPs) Cost per thousand Cost per thousand

13-19 © 2012 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 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 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 Flighting schedule: Advertising in short, intense bursts, alternated with periods in which no advertising is done

13-20 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Develop the Advertising Campaign  Step 6: Evaluate the advertising Posttesting Research on consumers’ responses to advertising they have seen or heard: Posttesting Research on consumers’ responses to advertising they have seen or heard:  Unaided recall  Aided recall  Attitudinal measures

13-21 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Public Relations  Public relations (PR): Communication function that seeks to build good relationships with an organization’s publics  Proactive PR activities stem from a firm’s marketing objectives Publicity Publicity  PR is critical when a firm’s image is at risk due to negative publicity Crisis management Crisis management

13-22 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Planning a Public Relations Campaign  Multistep process includes: Developing PR objectives Developing PR objectives  Several objectives exist Executing PR objectives Executing PR objectives  A variety of actions can be used Evaluating PR objectives Evaluating PR objectives  See Table 13.3

13-23 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Objectives of Public Relations  Typical objectives include: Introduce new products to manufacturers Introduce new products to manufacturers Introduce new products to consumers Introduce new products to consumers Influence government legislation Influence government legislation Enhance the image of a firm Enhance the image of a firm Provide advice and counsel Provide advice and counsel Enhance the image of a city, region, or country Enhance the image of a city, region, or country Manage a crisis Manage a crisis Call attention to a firm’s involvement with the community Call attention to a firm’s involvement with the community

13-24 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Public Relations Tactics  Press releases (various forms)  Internal PR  Investor relations  Lobbying  Speech writing  Corporate identity  Media relations  Sponsorships  Special events  Guerilla marketing

13-25 © 2012 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 Deliver short-term sales results Can target end consumers, channel partners, and/or employees Can target end consumers, channel partners, and/or employees

13-26 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Sales Promotion Directed Toward Consumers  Price-based consumer sales promotion include: Coupons Coupons Price deals, refunds, and rebates Price deals, refunds, and rebates Frequency (loyalty/continuity) programs Frequency (loyalty/continuity) programs Special/bonus packs Special/bonus packs

13-27 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Sales Promotion Directed Toward Consumers  Attention-getting consumer promotions include: Contests and sweepstakes: Contests and sweepstakes:  Contests are based on skill  Sweepstakes are based on chance Premiums Premiums Sampling: Sampling:  The premiere technique for generating new product trial

13-28 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Real People, Real Choices: Decision Made at BzzAgent  Marc chose option 1 Why do you think that Marc and the client decided to define the brand more clearly in the wake of attacks by their rival, rather than responding in kind or launching a more subtle guerrilla marketing campaign? Why do you think that Marc and the client decided to define the brand more clearly in the wake of attacks by their rival, rather than responding in kind or launching a more subtle guerrilla marketing campaign?

13-29 © 2012 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?

13-30 © 2012 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 of the publisher. Printed in the United States of America