1. Advertising, Sales Promotion, & Public Relations
Chapter 17

2. Advertising Types Product Advertisements Institutional Advertisements
Pioneering
Competitive
Reminder
Institutional Advertisements
Advocacy
Pioneering Institutional
Competitive Institutional
Reminder Institutional
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3. Developing the Program
Identifying the Target Audience
Specifying Advertising Objectives
Setting the Advertising Budget
Designing the Advertisement
Types of appeals
Creating the Message
Humor appeals, fear appeals, sex appeals

4. Developing the Program
Selecting the Right Media
Two goals of media selection
Maximize ________
Minimize _________
Reach
Rating
Gross Rating Points
Goals- Maximize exposure at minimum cost
Reach- of people exposed
Rating- % of households in a market that are tuned to a particular TV or radio show
Frequency- # of times person in target market is exposed to it
Gross rating points- Reach (percentage of total market) x Frequency
Cost per thousand- Cost of reaching 1000 individuals or households
Media
TV- 95% of households; sight, sound, and motion. High costs (better recall with 2 fifteen second intervals); wasted coverage. Infomercials- 30 minute educational approach.
Radio: 7x TV stations; more college audience than TV; easy to change station; limited use for visual products
Magazines: 5000 magazines; special-interest magazines. Expensive, but regional publishing lowers wasted coverage.
Newspapers: Large, but focus on immediate; Increasing costs of production (increase in paper costs), online newspapers, free tabloid newspapers.
Internet- Banner ads, pop-ups; New so standards are evolving, less effective, “permission-based” advertising.
Outdoor- Billboards, scoreboards, (visibility, access in specific markets) No lengthy copy
3 factors

5. Developing the Program
Different media
Television
Radio
Magazines
10.3% of global ad spending
Newspapers
Internet
12.6% of global ad spending
Advergaming
Outdoor
Cell phones
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6. Developing the Program
Scheduling the Advertising
Three factors
Buyer turnover
Purchase frequency
Forgetting rate
Three approaches
Continuous
Flighting
Pulse
Buyer t-over: How often new buyers enter market
Purchase freq.: More frequently=less reminder
FR: Speed at which ppl forget advertising
Continuous: Throughout year
Flighting: Seasonal demand, so advertising lulls
Pulse: Combination of the two

7. Executing the Advertising
Pretesting
Portfolio tests
Jury tests
Theater tests
Carrying out the Advertising
Full-service agency
Limited-service agency
In-house agency
FS- Research, selection, artwork, production
LS- One aspect
IH- Company’s own advertising staff

8. Evaluating the Advertising
Posttesting the Advertising
Aided recall
Unaided recall
Attitude test
Inquiry test
Sales test
Making Needed Changes

9. Source: http:..www.creativemag.com
Sales Promotion
$100 billion annually
Consumer-Oriented Promotions
Coupons
Deals
Premiums
Contests
Sweepstakes
Samples
Continuity programs
Point-of-purchase displays
Rebates
Product Placement
Source: kathysfastfoodtoys.com
Coupons- increase sales short-term, but lower margins. Other costs (distribution, printing)
Deals (2-for-1), Premiums (Free or cheap merchandise- McDs toys), Contests, Sweepstakes, samples, continuity programs, P-o-P displays, rebates, product placement
Brand name product in a movie, TV show, etc.
TOP- Sales tools used to support a company’s advertising and personal selling directed to wholesalers, retailers, and distributors.
Allowances & discounts- Merchandise allowance (reimbursing a retailer for extra in-store support or special featuring of the brand); Case allowance (A discount on each case ordered during a specific time period); Finance allowance (Paying retailers for financing costs or financing losses associated with consumer sales promotions.
Coop adv.- Manufacturer pays a percentage of the retailer’s local advertising expense for advertising manufacturer’s products.
TDS- Manuals and brochures to retailers’ sales force
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12. Sales Promotions Trade-Oriented Promotions Allowances and discounts
Cooperative advertising
Training of Distributors’ Salesforces

13. Public Relations Public relations tools Publicity tools
New-product publicity
Consumer Education
Sponsorships
Company websites
Publicity tools
News Release
News Conference
Public Service Announcements
NR- Inform outlet of a story. 40% of all free mentions come from the news
NC- Informational meeting, advance materials are sent
PSAs- Nonprofit
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