Advertising, Sales Promotion, and Public Relations Chapter 15 Advertising, Sales Promotion, and Public Relations

Learning Goals 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. Understand the roles of advertising, sales promotion, and public relations in the promotion mix.

Learning Goals 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. Understand the roles of advertising, sales promotion, and public relations in the promotion mix.

Definition Advertising Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

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Advertising Signage 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.

Show Net Price*** Change 1 Friends NBC $473,500 3.9% 2 Will & Grace $414,500 10.1% 3 ER $404,814 -7.7% 4 Survivor CBS $390,367 -6.8% 5 Scrubs $360,950 22.5% 6 Coupling $316,400 * 7 CSI $310,324 10.8% 8 The Simpsons Fox $296,440 19.4% 9 24 $292,200 58.3% 10 Mon. Football ABC $272,867 -8.4% The "Change" field represents the difference from last season. * 'Coupling' is a new show. There is no previous season comparison number. ***Price is the cost of placing a 30 second ad in the particular show

In 2005 in Turkey One of the indicators of improvement in advertising sector is number of new ads of firms and brands other one is the number of ads in total. Last year 717 brands advertised for the first time. In total 13,810,636 second of ads were run TV shows were taking the lead. National TV shows in total had 10,335,659 seconds of ads. Foreign TV shows in total had 5,726,725 seconds of ads. Number 1 was (with syndications) "Çocuklar Duymasın“ It was aired 382 times and had 515,073 seconds of ads. Number 2 was "En Son Babalar Duyar". It was aired 366 times and had 469,754 seconds of ads.

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Major Advertising Decisions Figure 15.1

Advertising Key Decisions Setting objectives Setting the budget Advertising objectives can be classified by primary purpose: Inform Introducing new products Persuade Becomes more important as competition increases Comparative advertising Remind Most important for mature products Setting objectives Setting the budget Developing the advertising strategy Evaluating advertising campaigns

Kleenex is a well-known brand Kleenex is a well-known brand. The purpose of this ad is to remind the consumer.

Advertising Key Decisions Setting objectives Setting the budget Methods of budget setting were listed in chapter 14 Several factors should be considered when setting the ad budget: Stage in the PLC Market share Level of competition Ad clutter Degree of brand differentiation Setting objectives Setting the budget Developing the advertising strategy Evaluating advertising campaigns

Advertising Key Decisions Setting objectives Setting the budget Creative challenges Advertising clutter TiVo and PVR’s Creating ad messages Message strategy Creative concept or Big Idea Advertising appeal Message execution Many execution styles Tone, format, illustration, headline, copy Setting objectives Setting the budget Developing the advertising strategy Evaluating advertising campaigns

Creative Execution Styles Advertising Creative Execution Styles Musical Personality Symbol Technical Expertise Scientific Evidence Demonstration Slice of Life Lifestyle Fantasy Mood or Image Testimonial Evidence or Endorsement

Slice of Life Execution Style

Apple Uses a ____________ Relation to text This slide relates to material on pp. 277-278 and Exhibit 9-15 of the text. Summary Overview This slide shows an advertisement from Apple Computer’s “Switch” campaign which uses a testimonial execution whereby the person in the ad discusses her positive experience with the product. The “Switch” campaign included testimonials from individuals in various walks of life including a writer, publisher, and computer programmer, all of whom talked about why they switched from Windows-based personal computers to Macintosh PCs. Use of this slide This slide can be used to show an example of a testimonial ad execution method. The use of satisfied customers discussing their own experiences with the brand and benefits of using it can be a very effective persuasion technique. +

Crest Whitestrips Uses a __________ Relation to text This slide relates to material on p. 277 of the text. Summary Overview This transparency shows an ad for Crest Whitestrips which is a new product introduced by Procter & Gamble and is a category extension from its popular Crest toothpaste brand. Crest Whitestrips, which were introduced to the market in May 2001, uses clear flexible strips coated with a whitening gel that stick to the teeth. They use the same whitening ingredient, hydrogen peroxide, that dentists have been using for years. They are worn twice a day for 30 minutes at a time. Since its introduction, Whitestrips have achieved global sales of more than $200 million. Use of this slide This ad can be used as an example of how a demonstration execution is used in print advertising. The four photos at the bottom of the ad show how easily Whitestrips can be used by the consumer. You might also note the use of a use of a chameleon in the illustration used in the ad. Chameleons are lizards that have the ability to change the color of their skin. The use of the chameleon connotes a message about the ability of Whitestrips to change the color of one’s teeth. +

Use of Music

Use of Fear

Message Source Marketers hire celebrities as spokespersons to add excitement to the source of the message

Advertising Key Decisions Setting objectives Setting the budget Select advertising media Decide on level of reach, frequency and impact Choose among the major media types by considering: Consumer media habits, nature of the product, types of messages, and costs Select specific media vehicles Decide on media timing Key Decisions Setting objectives Setting the budget Developing the advertising strategy Evaluating advertising campaigns

Advertising Major Media Types Newspapers Radio Television Magazines Direct Mail Radio Magazines Outdoor Internet

What media types make sense for Segway Scooters? Why? Media Selection What media types make sense for Segway Scooters? Why? Segway has relied heavily on PR – having these scooters appear in many films and TV shows. They have generated respectable awareness, but most consumers are convinced this product is too expensive and not for them.

Advertising Key Decisions Setting objectives Setting the budget Measuring communications effect Copy testing Measuring sales effect Compare past sales with past advertising expenditures Experiments Setting objectives Setting the budget Developing the advertising strategy Evaluating advertising campaigns

Evaluating Advertising L.L. Bean is evaluating the different elements of the marketing mix to determine which led to this website visit 15 - 30 Marketing in Action

Measuring Online Advertising Effectiveness Concerns are growing regarding the effectiveness of television, especially with the rise of TiVo. While the overall Ad Industry grows at about 8% per year, Internet advertising is growing by 29%. The effectiveness of ads on television are difficult to measure, as opposed to the Internet where feedback is instant and the customers leave trails. 15 - 31 Marketing in Action Source: Advertising Age

Measuring Online Advertising Effectiveness Web tracking software enables marketers to analyze the effectiveness of their online efforts. WebTrends is one of many companies whose products provide web analytics to optimize your marketing and advertising campaigns. Click on report to visit website 15 - 32 Marketing in Action

Advertising Organizing the Advertising Function Small vs. large companies Nature of advertising agencies Advantages of advertising agencies Consolidation and growth of agencies Creative boutiques

Advertising Advertising to International Markets Standardizing worldwide advertising Advantages include lower advertising costs, greater global advertising coordination, and consistent global image Drawbacks include ignoring differences in culture, demographics, and economic conditions Most marketers think globally but act locally

Learning Goals 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. Understand the roles of advertising, sales promotion, and public relations in the promotion mix.

Definition Sales Promotion Sales promotions are short-term incentives to encourage the purchase or sale of a product or service.

Sales Promotion Sales Promotions Can 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

Sales Promotion Objectives -- Consumer Promotions: Increase short-term sales or long-term market share Generate product trial Objectives -- Trade Promotions: Obtaining distribution and shelf space Encouraging retailers to advertise the brand Objectives -- Sales Force Promotions: Signing up new accounts

Consumer Promotion Tools Sales Promotion Consumer Promotion Tools Samples Coupons Cash Refunds (Rebates) Price packs (cents-off deals) Advertising Specialties Premiums Patronage Rewards Point-of-Purchase Communications Contests, Games, and Sweepstakes

This print ad is combined with a consumer sales promotion 15 - 43

Sales Promotion Trade Promotion Tools Discounts (also called price-off, off-list, and off-invoice) Allowances Advertising allowances Display allowances Free goods Push money Specialty advertising items

Sales Promotion Business Promotion Tools Includes many of the same tools used in consumer and trade promotions Two additional tools: Conventions and trade shows Sales contests

Sales Promotion Key Decisions When Developing the Sales Promotion Program: Size of the incentive Conditions for participation Promotion and distribution of the actual sales promotion program Length of the promotional program Evaluation

Learning Goals 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. Understand the roles of advertising, sales promotion, and public relations in the promotion mix.

Definition Public Relations: Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.

Press Releases are Important for Public Safety Concerns The News Reports The P.R. Response 15 - 50 Marketing in Action

Public Relations Functions Press Relations Product Publicity Public Affairs Lobbying Investor Relations Development

Public Relations Role and Impact of Public Relations Strong impact on public awareness at lower cost than advertising Greater credibility than advertising Publicity is often underused Good public relations can be a powerful brand-building tool

Public Relations Tools News Speeches Buzz Marketing Corporate Identity Materials Mobile Marketing Special Events Written Materials Audiovisual Materials Public Service Activities Internet

Learning Goals 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. Understand the roles of advertising, sales promotion, and public relations in the promotion mix.