1. chapter advertising, public relations, and sales promotions eighteen Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

2. 18-2 LEARNING OBJECTIVES LO 18-1Describe the steps in designing and executing an advertising campaign. LO 18-2Identify three objectives of advertising. LO 18-3Describe the different ways that advertisers appeal to consumers. LO 18-4Identify the various types of media. LO 18-5Identify agencies that regulate advertising. LO 18-6Describe the elements of a public relations toolkit. LO 18-7Identify the various types of sales promotions.

3. 18-3 Steps in Planning and Executing an Ad Campaign Identify target audienceSet advertising objectivesDetermine the advertising BudgetConvey the messageEvaluate and select mediaCreate advertisementsAssess impact Advertising Age Website

4. 18-4 Identify Target Audience Conduct research Use the information to set the tone Select the media Getty Images/Comstock Images

5. 18-5 Set Advertising Objectives Push strategy Pull strategy ©Brand X Pictures/PunchStock ©Comstock/PunchStock

6. 18-6 Advertising Objectives Inform Persuade Remind

7. 18-7 Informative Advertising Create and build brand awareness Push the consumer through the buying cycle Inform customers about upcoming sales events or arrival of new merchandise ©TJX Companies, Inc.

8. 18-8 Persuasive Advertising Generally occurs in the growth and early maturity stages of the PLC when competition is most intense May be used to reposition an established brand in the later stage of the PLC ©The Procter & Gamble Company Used by permission

9. 18-9 Reminder Advertising Communication used to remind or prompt repurchases Occurs after the products have gained market acceptance Used by Permission of Deutsch Inc as Agent for National Fluid Milk Processor Promotion Board

10. 18-10 Product-focused advertisements Product-focused advertisements Institutional advertisements Institutional advertisements Focus of Advertisements ©2000 Image 100 Ltd

11. 18-11 Determining Advertising Budget Considerations: Role that advertising plays in their attempt to meet their overall promotional objectives Expenditures vary over the course of the Product Life CycleNature of the market and the product influence the size of the budget Super Bowl Ads

12. 18-12 Convey the Message Unique selling proposition (USP) Red Bull... Gives You WingsUnited Negro College Fund... A mind is a terrible thing to waste.Nike... Just Do It.State Farm Insurance... Like a good neighbor, State Farm is thereTNT... We know drama

13. 18-13 The Appeal Emotional appeal Informational appeal ©Procter & Gamble

14. 18-14 Evaluate and Select Media Media planningMedia mixMedia buy ©Photodisc/Getty ImagesThe McGraw-Hill Companies, Inc/John Flournoy, photographer Ryan McVay/Getty ImagesPhotodisc/Getty Images

15. 18-15 Choosing the Right Medium MediumAdvantagesDisadvantages Television Wide reach. Incorporates sound and video. High cost. A lot of channel and program options. May increase awareness of competitors’ products. Radio Relatively inexpensive. Can be selectively targeted. Wide reach. No video, which limits presentation. Consumers give less focused attention than TV. Exposure periods are short. Magazines Very targeted. Subscribers pass along to others. Relatively inflexible. Takes some time for the magazine to be available. Newspapers Flexible. Timely. Able to localize. Can be expensive in some markets. Advertisements have short life span. Internet Can be linked to detailed content. Highly flexible and interactive. Allows for specific targeting. Becoming cluttered. The ad may be blocked by software on the computer. Outdoors Relatively inexpensive. Offers opportunities for repeat exposure. Is not easily targeted. Has placement problems in some markets. Exposure time is very short. Direct Marketing Is highly targeted. Allows for personalization. Cost can vary depending on type of direct marketing used. Traditional media, like mail, will be more expensive than newer media.

16. 18-16 Determine the Advertising Schedule Continuous Pulsing Flighting ©Procter & Gamble

17. 18-17 Create Advertisements Ads The type of medium determines the execution style Creativity plays a major role in the execution stage Creativity should not overshadow the message The execution style must match the medium and objectives

18. 18-18 Assess Impact Using Marketing Metrics PretestingTrackingProtesting

19. check yourself 18-19 1.What are the steps involved in planning an ad campaign? 2.What are the differences between informational, persuasive, and reminder advertising? 3.What are the pros and cons of the different media types? 4.How can the effectiveness of advertising be evaluated?

20. 18-20 Regulatory and Ethical Issues in Advertising Federal AgencyGeneral PurposeSpecific Jurisdiction Federal Trade Commission (FTC) (established 1914) Enforces federal consumer protection laws. Enforces truth in advertising laws; defines deceptive and unfair advertising practices. Federal Communications Commission (FCC) (1934) Regulates interstate and international communications by radio, television, wire, satellite, and cable. Enforces restrictions on broadcasting material that promotes lotteries (with some exceptions); cigarettes, little cigars, or smokeless tobacco products; or that perpetuates a fraud. Also enforces laws that prohibit or limit obscene, indecent, or profane language. Food and Drug Administration (1930) Regulates food, dietary supplements, drugs, cosmetics, medical devices (including radiation emitting devices such as cell phones), biologics (biological issues), and blood products. Regulates package labeling and inserts, definition of terms such as “light” and “organic,” and required disclosure statements (warning labels, dosage requirements, etc.).

21. 18-21 Public Relations TOMS Shoes Website PR ElementFunction Publications: Brochures, special-purpose single-issue publications such as books Inform various constituencies about the activities of the organization and highlight specific areas of expertise. Video and audio: Programs, public service announcements Highlight the organization or support cause-related marketing efforts. Annual reportsGive required financial performance data and inform investors and others about the unique activities of the organization. Media relations: Press kits, news releases, speeches, event sponsorships Generate news coverage of the organization’s activities or products/services. Electronic media: Websites, e-mail campaignsWebsites can contain all the previously mentioned toolbox elements, while e-mail directs PR efforts to specific target groups.

22. check yourself 18-22 1.Why do companies use public relations as part of their IMC strategy? 2.What are the elements of a public relations toolkit?

23. 18-23 Types of Sales Promotion PromotionAdvantagesDisadvantages Coupons Stimulates demand. Allows for direct tracing of sales. Has low redemption rates. Has high cost. Deals Encourages trial. Reduces consumer risk. May reduce perception of value. Premiums Builds goodwill. Increases perception of value. Consumers buy for premium, not product. Has to be carefully managed. Contests Increases consumer involvement. Generates excitement. Requires creativity. Must be monitored. Sweepstakes Increases involvement with the product. Sales often decline after the sweepstakes is over. Samples Encourages trial. Offers direct involvement. Has high cost to the firm. Loyalty Programs Creates loyalty. Encourages repurchase. Has high cost to the firm. POP Displays Provides high visibility. Encourages brand trial. Is difficult to get a good location in the store. Can be costly to the firm. Rebates Stimulates demand. Increases value perception. Is easily copied by competitors. May just advance future sales. Product Placement Displays products nontraditionally. Demonstrates product uses. Firm often has little control over display. Product can be overshadowed.

24. 18-24 Evaluated Sales Promotions using Marketing Metrics Realized marginCost of additional inventoryPotential increase in salesLong-term impactPotential loss from switches from more profitable itemsAdditional sales by customers

25. check yourself 18-25 1.What are various forms of sales promotions? 2.What factors should a firm consider when evaluating a sales promotion?

26. Return to slide 18-26 An advertising plan is a subsection of the firm’s overall marketing plan that explicitly analyzes the marketing and advertising situation, identifies the objectives of the advertising campaign, clarifies a specific strategy for accomplishing those objectives, and indicates how the firm can determine whether the campaign was successful. Glossary

27. Return to slide 18-27 A continuous advertising schedule runs steadily throughout the year and therefore is suited to products and services that are consumed continually at relatively steady rates and that require a steady level of persuasive and/or reminder advertising. Glossary

28. Return to slide 18-28 A flighting advertising schedule is implemented in spurts, with periods of heavy advertising followed by periods of no advertising. Glossary

29. Return to slide 18-29 Institutional advertisements inform, persuade, and remind consumers about issues related to places, politics, an industry, or a particular corporation. Glossary

30. Return to slide 18-30 Media buy is the actual purchase of airtime or print pages. Glossary

31. Return to slide 18-31 The media mix is the combination of the media used and the frequency of advertising in each medium. Glossary

32. Return to slide 18-32 Media planning is the process of evaluating and selecting the media mix that will deliver a clear, consistent, compelling message to the intended audience. Glossary

33. Return to slide 18-33 Product-focused advertisements focus on informing, persuading, or reminding customers about a specific product or service. Glossary

34. Return to slide 18-34 Public service advertising (PSA) focuses on public welfare and generally is sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups. Glossary

35. Return to slide 18-35 A pull strategy is a strategy in which the goal is to get consumers to pull the product into the supply chain by demanding it. Glossary

36. Return to slide 18-36 A pulsing advertising schedule combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods. Glossary

37. Return to slide 18-37 A push strategy is designed to increase demand by focusing on wholesalers, distributors, or sales people. Glossary