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

2. 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.

3. 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.

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

5. Mac vs PC

6. 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.

7. 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

8. 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.

9. Cities

10. Flavors

12. Major Advertising Decisions Figure 15.1

13. 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

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

15. 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

16. 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

17. 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

18. Slice of Life Execution Style

19. Apple Uses a ____________
Relation to text This slide relates to material on pp 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. +

20. 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. +

21. Use of Music

22. Use of Fear

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

26. 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

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

28. 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.

29. 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

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

31. 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.
Marketing in Action
Source: Advertising Age

32. 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
Marketing in Action

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

34. 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

37. 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.

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

39. 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

40. 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

41. 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

43. This print ad is combined with a consumer sales promotion

45. 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

46. 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

47. 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

48. 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.

49. 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.

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

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

52. 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

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

54. 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.