Chapter 16 – Advertising and Public Relations. 4 Hope to inform or persuade members of a particular audience 4 U.S. annual advertising expenditures >

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Presentation transcript:

Chapter 16 – Advertising and Public Relations

4 Hope to inform or persuade members of a particular audience 4 U.S. annual advertising expenditures > $200 billion

ADVERTISING OBJECTIVES 4 To inform, persuade & remind 4 Figure

TYPES OF ADVERTISING 1. PRODUCT ADVERTISING - nonpersonal selling of a good or service 2. INSTITUTIONAL ADVERTISING - promoting a concept, an idea, a philosophy, or the goodwill Ex. Milk, Guns

3. INFORMATIVE ADVERTISING - seeks to develop initial demand - used in the intro stage of product life cycle 4. PERSUASIVE ADVERTISING - seeks to increase demand - competitive type of promotion used in growth & early part of maturity stages of product life cycle

5. REMINDER ADVERTISING - seeks to reinforce previous promotional activity - used in latter part of maturity stage, as well as throughout the decline stage of product life cycle

MEDIA SELECTION 1. NEWSPAPERS - largest advertising medium in term of advertising revenue 2. MAGAZINES

3. TELEVISION - 4 categories: - network - national - local - cable

4. RADIO 5. DIRECT MAIL - in form of sales letters, postcards, leaflets, folders, booklets, & catalogs 6. OUTDOOR ADVERTISING - posters, billboards, electric spectaculars

7. Other Ways to Advertise - transit advertising - cinema advertising - directory advertising - advertisements on hot air balloons, blimps & banners behind airplanes - electronic advertisements on shopping carts - interactive media (www)

MEDIA SCHEDULING 4 Timing & sequence of advertisements

An Advertisement Should: 1. gain attention & interest 2. inform and/or persuade 3. eventually lead to buying action

ADVERTISING TECHNIQUES 4 COMPARITIVE ADVERTISING –Coke vs. Pepsi 4 CELEBRITY TESTIMONIALS –O.J., Michael Jackson, Mike Tyson 4 COOPERATIVE ADVERTISING sharing advertising costs btw retailer & the manufacturer or wholesaler

Assessment 4 Pre and Post-tests

Sales Promotion 4 Consumer Promotions –Coupons, Price off, refunds, samples, etc 4 Trade Promotions: To intermediaries