1. Principles of Marketing - UNBSJ
BA 2303
Principles of Marketing - UNBSJ
Advertising, Sales Promotion, and Public Relations
Instructor – Terry Conrod

2. Learning Objectives BA 2303
Explain the differences between product advertising and institutional advertising and the variations with each type.
Describe the steps used to develop, execute, and evaluate an advertising program.
Explain the advantages and disadvantages of alternative advertising media.
Discuss the strengths and weaknesses of consumer-oriented and trade-oriented sales promotions.
Recognize public relations as an important form of communication.

3. TYPES OF ADVERTISEMENTS
BA 2303
TYPES OF ADVERTISEMENTS
Product Advertisements
Advertisements that focus on selling a good or service and take three forms: (1) pioneering (or informational), (2) competitive (or persuasive), and (3) reminder
Institutional Advertisements
Advertisements designed to build goodwill or an image for an organization, rather than promote a specific good or service.
Pioneering ads, used in the introductory stage of the PLC, tell people what a product is, what it can do, and where it can be found. Competitive ads promote a specific brand's features and benefits. The difference between the two types of ads is its purpose. Pioneering ads are used to inform, and competitive ads are used to persuade.
Direct-response advertising seeks to motivate the customer to take immediate action. For example, a television commercial that invites the customer to "order now". 3

4. DEVELOPING THE ADVERTISING PROGRAM
BA 2303
DEVELOPING THE ADVERTISING PROGRAM
Identifying the Target Audience
Specifying Advertising Objectives
Setting the Advertising Budget
Designing the Advertisement
Message Content
Creating the Actual Message 4

5. What are the three common advertising appeals?
BA 2303
Concept Check
What are the three common advertising appeals?
Answer:
Three common advertising appeals are: (1) Fear, (2) Sex, and (3) Humour 5

6. BA 2303
Concept Check
Who is responsible for turning appeals and product features into attention-getting advertising?
Answer:
The "creative people" in an advertising agency, copywriters and art directors, have the responsibility to turn appeals and features such as quality, style, dependability, economy, and service into attention-getting, believable advertisements. 6

7. DEVELOPING THE ADVERTISING PROGRAM
BA 2303
DEVELOPING THE ADVERTISING PROGRAM
Selecting the Right Media
Choosing a Medium and a Vehicle within That Medium
Basic Terms
Reach
Rating
Frequency
Gross Rating Points
Cost Per Thousand (CPM) 7

8. BA 2303
Canadian advertising expenditures by medium, as a percentage of total ad spending 8

9. The language of the media buyer
BA 2303
The language of the media buyer 9

10. BA 2303
Advantages and disadvantages of major advertising media 10

11. What factors must be considered when choosing among alternative media?
BA 2303
Concept Check
What factors must be considered when choosing among alternative media?
Answer:
Selection criteria between alternative media are: (1) Know the media habits of the target audience, (2) Product attributes may necessitate the use of certain media, and (3) Cost 11

12. BA 2303
Concept Check
You see the same ad in Time and Maclean’s magazines and on billboards and TV. Is this an example of reach or frequency?
Answer:
The same ad in Time and Maclean's is an example of frequency. Frequency is the average number of times a person in the target audience is exposed to a message or advertisement. 12

13. Why has the Internet become a popular advertising medium?
BA 2303
Concept Check
Why has the Internet become a popular advertising medium?
Answer:
The Internet has become a popular medium because of its: (1) Visual message, (2) Audio capability, (3) Movement, and (4) Interactive feature 13

14. Alternative structures of ad agencies
BA 2303
Alternative structures of ad agencies 14
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.

15. BA 2303
Concept Check
Explain the difference between pre-testing and post- testing advertising copy.
Answer:
The difference between pre-testing and post- testing is that pre-tests are conducted before the advertisements are placed in any medium. Some advertisements may go through post-tests after it has been shown to the target audience to determine whether it accomplished its intended purpose. 15

16. What is the difference between aided and unaided recall post-tests?
BA 2303
Concept Check
What is the difference between aided and unaided recall post-tests?
Answer:
After being shown an ad, aided recall is when respondents are asked whether their previous exposure to an ad was through reading, viewing, or listening. Unaided recall is when respondents are prompted to determine whether they saw or heard advertising messages. Questions such as, "What ads do you remember seeing yesterday?" are used. 16

17. SALES PROMOTION Consumer-Oriented Sales Promotions BA 2303 Coupons
Deals
Premiums
Contests
Sweepstakes
Samples
Loyalty Programs
Point-of-Purchase Displays
Rebates
Product Placement 17

18. Sales promotion alternatives
BA 2303
Sales promotion alternatives 18

19. SALES PROMOTION Trade-Oriented Sales Promotions BA 2303
Allowances and Discounts
Co-operative Advertising
Training of Distributors’ Salesforces 19

20. Which sales promotional tool is most common for new products?
BA 2303
Concept Check
Which sales promotional tool is most common for new products?
Answer:
The most common sales promotional tool for new products is coupons. 20

21. What’s the difference between a coupon and a deal?
BA 2303
Concept Check
What’s the difference between a coupon and a deal?
Answer:
The difference between a coupon and a deal is: Coupons are printed certificates that give the bearer a saving or a stated price reduction when they purchase a specific product. Deals are short- term price reductions that do not require the purchaser to present a certificate. 21

22. Which trade promotion is used on an ongoing basis?
Concept Check
Which trade promotion is used on an ongoing basis?
Answer:
A trade promotion used on an ongoing basis is finance allowance. 22

23. BA 2303
Advertising
Any paid form of non-personal communication about an organization, good, service, or idea by an identified sponsor.

24. Product Advertisements
BA 2303
Product Advertisements
Advertisements that focus on selling a good or service and take three forms: (1) pioneering (or informational), (2) competitive (or persuasive), and (3) reminder.

25. Institutional Advertisements
BA 2303
Institutional Advertisements
Advertisements designed to build goodwill or an image for an organization, rather than promote a specific good or service.

26. Reach The number of people or households exposed to an advertisement.
BA 2303
Reach
The number of people or households exposed to an advertisement.

27. BA 2303
Rating
The percentage of households in a market that are tuned to a particular TV show or radio station.

28. BA 2303
Frequency
The average number of times a person in the target audience is exposed to a message or advertisement.

29. Gross Rating Points (GRP’s)
BA 2303
Gross Rating Points (GRP’s)
A reference number for advertisers, created by multiplying reach (expressed as a percentage of the total market) by frequency.

30. Cost per Thousand (CPM)
BA 2303
Cost per Thousand (CPM)
The cost of reaching 1,000 individuals or households with an advertising message in a given medium.

31. BA 2303
Infomercials
Program-length (30-minute) advertisements that take an educational approach to communication with potential consumers.

32. BA 2303
Pre-tests
Tests conducted before an advertisement is placed to determine whether it communicates the intended message or to select among alternative versions of an advertisement.

33. BA 2303
Full-Service Agency
An advertising agency providing the most complete range of services, including market research, media selection, copy development, artwork, and production.

34. Limited-Service Agencies
BA 2303
Limited-Service Agencies
Specializes in one aspect of the advertising process such as providing creative services to develop the advertising copy or buying previously unpurchased media space.

35. BA 2303
In-House Agencies
A company’s own advertising staff, which may provide full services or a limited range of services.

36. BA 2303
Post-tests
Tests conducted after an advertisement has been shown to the target audience to determine whether it has accomplished its intended purpose.

37. Consumer-Oriented Sales Promotions
BA 2303
Consumer-Oriented Sales Promotions
Sales tools used to support a company’s advertising and personal selling efforts directed to ultimate consumers, examples include coupons, sweepstakes, and samples.

38. BA 2303
Product Placement
Using a brand-name product in a movie, television show, video, or a commercial for another product.

39. Trade-Oriented Sales Promotions
BA 2303
Trade-Oriented Sales Promotions
Sales tools used to support a company’s advertising and personal selling efforts directed to wholesalers, distributors, or retailers.

40. Co-operative Advertising
BA 2303
Co-operative Advertising
Advertising programs by which a manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturer’s products.

41. Consumer-Generated Media
BA 2303
Consumer-Generated Media
Media generated by consumers in which the consumers absorb the time and cost of promotion efforts and marketers do not necessarily control what is communicated and how it is communicated.