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

What is Advertising? Advertising is Any Paid Form of Nonpersonal Presentation and Promotion of Ideas, Goods, or Services by an Identified Sponsor.

Major Advertising Decisions Message Decisions Message Strategy Message Execution Objectives Setting Communication objectives Sales Objectives Budget Decisions Affordable Approach Percent of sales Competitive parity Objective and task Campaign Evaluation Communication Impact Sales Impact Media Decisions Reach, Frequency, Impact Major Media Types Specific Media Types Media Timing

Setting Advertising Objectives Informative Advertising Inform Consumers or Build Primary Demand i.e CD Players Persuasive Advertising Build Selective Demand i.e Sony CD Players Advertising Objective Specific Communication Task Accomplished with a Specific Target Audience During a Specific Period of Time Comparison Advertising Compares One Brand to Another i.e. Avis vs. Hertz Reminder Advertising Keeps Consumers Thinking About a Product i.e. Coca-Cola

Setting the Promotion Budget After Determining Its Advertising Objectives, the Marketer Must Set the Advertising Budget for Each Product and Market. (From Chapter 14) Affordable Based on What the Company Can Afford Objective-and-Task Based on Determining Objectives & Tasks, Then Estimating Costs Percentage of Sales Based on a Certain Percentage of Current or Forecasted Sales Competitive-Parity Based on the Competitor’s Promotion Budget

Setting the Advertising Budget Factors to be considered when setting the advertising budget: Stage in the product life cycle, Market share, Competition and clutter, Product differentiation.

Developing Advertising Strategy Advertising Strategy Consists of Two Major Elements and Companies are Realizing the Benefits of Planning These Two Elements Jointly. Creating the Advertising Messages Selecting the Advertising Media

Developing Advertising Strategy: Creating Ad Messages Plan a Message Strategy General Message to Be Communicated to Customers Developing Advertising Strategy: Creating Ad Messages Develop a Message Focus on Customer Benefits Creative Concept “Big Idea” Visualization or Phrase Combination of Both Advertising Appeals Meaningful Believable Distinctive

Developing Advertising Strategy: Message Execution Testimonial Evidence Slice of Life Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest. Scientific Evidence Lifestyle Typical Message Execution Styles Technical Expertise Fantasy Personality Symbol Mood or Image Musical

Advertising Strategy: Selecting Advertising Media Step 1. Decide on Reach, Frequency, and Impact Step 2. Choosing Among Major Media Types Media Habits of Target Consumers, Nature of the Product, Types of Message, Cost Advertising Strategy: Selecting Advertising Media Step 3. Selecting Specific Media Vehicles Specific Media Within a Given Type, i.e. Magazines. Must Balance Media Cost Against Media Factors: Audience Quality & Attention, Editorial Quality Step 4. Deciding on Media Timing Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing

Evaluating Advertising Advertising Program Evaluation Evaluating Advertising Communication Effects Is the Ad Communicating Well? Sales Effects Is the Ad Increasing Sales?

What is Sales Promotion ? Sales Promotion is a Mass Communication Technique That Offers Short-Term Incentives to Encourage Purchase or Sales of a Product or Service. Offers Reasons to Buy Now.

Rapid Growth of Sales Promotion Sales promotion can take the form of consumer promotions, business promotions, trade promotions or sales force promotions. Rapid growth in the industry has been achieved because: Product managers are facing more pressure to increase their current sales, Companies face more competition, Advertising efficiency has declined, Consumers have become more deal oriented.

Sales Promotion Objectives Increase short-term sales or help build long-term market share. Get retailers to: carry new items and more inventory, advertise products, give products more shelf space, and buy product ahead. In general, sales promotion should focus on consumer relationship building.

Major Consumer Sales Promotion Tools Sample Trial amount of a product Coupons Savings when purchasing specified products Cash Refunds Refund of part of the purchase price Price Packs Reduced prices marked on the label or package Premiums Goods offered free or low cost as an incentive to buy a product Advertising Specialties Articles imprinted with an advertiser’s name given as gifts

Major Consumer Sales Promotion Tools Patronage Rewards Point-of-Purchase Contests Sweepstakes Game Cash or other rewards for the use of a certain product Displays and demonstrations that take place at the point of sale Consumers submit an entry to be judged Consumers submit their names for a drawing Presents consumers with something every time they buy

Major Trade Sales Promotion Tools Trade-Promotion Objectives Persuade Retailers or Wholesalers to Carry a Brand Give a Brand Shelf Space Promote a Brand in Advertising Push a Brand to Consumers Trade-Promotion Tools Discounts Allowances

Major Business Sales Promotion Tools Business-Promotion Objectives Generate Business Leads Stimulate Purchases Reward Customers Motivate Salespeople Business-Promotion Tools Conventions Trade Shows Sales Contests

Developing the Sales Promotion Program Decide on the Size of the Incentive Set Conditions for Participation Developing the Sales Promotion Program Determine How to Promote and Distribute the Promotion Program Determine the Length of the Program Evaluate the Program

What is Public Relations? Public Relations Involves 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.

Major Public Relations Functions Press Relations or Agentry Product Publicity Public Affairs Lobbying Investor Relations Development Public Relations Departments May Perform Any of All of the Following Functions:

Major Public Relations Tools News Web Site Speeches Public Service Activities Special Events Corporate Identity Materials Written Materials Audiovisual Materials

Major Public Relations Decisions Setting Public Relations Objectives Choosing the Public Relations Messages and Vehicles Implementing the Public Relations Plan Evaluating Public Relations Results