0. Advertising, Sales Promotion, and Public Relations
Chapter 16

1. Objectives
Understand the roles of advertising, sales promotion, and public relations in the promotion mix.
Know the major decisions involved in developing an advertising program.

2. Objectives
Learn how sales promotion campaigns are developed and implemented.
Learn how companies use public relations to communicate with their publics.

3. AFLAC A few years ago, only 13% of U.S. recognized AFLAC
Old ads: “warm and fuzzy” similar to other insurance ads
Goal: break through advertising clutter
1999: AFLAC developed the “duck” campaign to enhance brand awareness
Incredibly successful: name recognition is now 91%; sales growth of 30% each year campaign has run

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

5. Advertising
Signage in ancient times offers evidence of early advertising.
Modern ad spending tops $231 billion in U.S. annually, $500 billion worldwide.

6. Advertising
Business firms, not-for-profit firms, social agencies, and professionals such as doctors and lawyers all advertise.

7. Major Advertising Decisions
Figure 16-1:
Major Advertising Decisions

8. 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 ads
Remind
Most important for mature products
Key Decisions:
Setting objectives
Setting the budget
Developing the advertising strategy
Evaluating advertising campaigns

9. Got Advertising that Works

10. Quick Facts Started in November of 1993
Milk Sales for the previous 15 years had been going down; and at an increasing rate.
$2 billion annually spent to advertise beverages (had to do something different to stand out)
$23 million budget for milk

11. Results of Campaign Exceeded expectations
60% ad recall awareness in 3 months, 70% in 6
Improved consumption in California from an $18 million decline the previous year to a $13 million increase
Became part of the pop culture landscape

12. Target the right customers
When brand sales decline the first inclination is to try and attract new customers. A better strategy would be to retain and grow loyal customers.

13. Thoroughly study your target market to find fresh insights
Used video cameras to determine how people responded when there was no milk in the refrigerator
Had people go without milk for a week and then come back with their tales of woe

14. Unearth a deeply competitive strategy and stay with it
Hard to find competitively unique differentiations
Milk with food
Milk deprivation

15. Entertain… but Sell

16. Treat the consumer with respect
Got milk is an inherently humble idea?

17. Adopt a memorable and inspiring brand slogan and signature

18. Integrate, integrate, integrate

19. Don’t try to make it alone

20. Keep campaigns … but keep them fresh

21. Treat agencies as partners and keep the focus on great work

22. Comparative advertising can be extremely persuasive

23. Do these ads attempt to inform, persuade, or remind?
How effective are these ads?

24. Advertising Key Decisions: Setting objectives Setting the budget
Methods of budget setting were listed in chapter 15
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
Key Decisions:
Setting objectives
Setting the budget
Developing the advertising strategy
Evaluating advertising campaigns

25. Advertising Key Decisions: Setting objectives Setting the budget
Creative challenges
Media fragmentation
Soaring media costs
Advertising clutter
Creating ad messages
Message strategy
Creative concept
Advertising appeal
Message execution
Many execution styles
Tone, format, illustration, headline, copy
Key Decisions:
Setting objectives
Setting the budget
Developing the advertising strategy
Evaluating advertising campaigns

26. Creative Execution Styles
Advertising
Creative Execution Styles
Musical
Personality Symbol
Technical Expertise
Scientific Evidence
Slice of Life
Lifestyle
Fantasy
Mood or Image
Testimonial Evidence or Endorsement

27. Discussion Question
When does advertising pass the boundaries of good taste? Can you think of some examples?
Should marketers be concerned about the opinions of anyone other than the target market? Why or why not?

28. Celebrity endorsers may be movie stars, politicians, sports stars, or other public personalities
Testimonials feature ordinary people who talk about their product experiences

29. 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

30. TIVO is one example of how technology presents challenges to media planners. With TIVO, consumers can easily zap ads.
TIVO

31. Media planners for Absolut vodka work with creatives to design ads targeted to specific audiences. The ad at left appears in theater playbills.

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

33. Newspaper Pros Local Low technical skill Short lead times Cons Clutter
Fish wrap
Typical reader spends little time reading paper
Poor reproduction quality

34. TV Cable has made TV more attractive Pros Cons Emotional, Vivid
Expensive
Surfing
Cable has made TV more attractive

35. Radio Pros Cons More targeted Flexibility
Can’t save and refer to later

36. Marketers are increasingly using alternate forms of media to reach their target markets. What other examples can you think of besides those shown below?

37. Non-Traditional Advertising
Why?
Reaching consumers is getting harder
A growing focus on micro-targeting
Consumers are tired of traditional methods
Online “click-through” rates are sluggish
What we’re talking about
New non-traditional methods
Outdoor advertising
Human billboards
Impressive results
Industry growth

38. Have a Minute? Capturing a Captive Audience
Elevators
Bathrooms
Gasoline Pump Nozzles
Floor Graphics

39. A Proliferation of Advertising Venues
Emerging advertising methods
Automobile ad wraps (360◦)
Cell phones
Hotel key cards
Beach sand
Fresh Fruit

40. Advertising Gets Physical The Advent of the Body Billboard
SnoreStop
$37,325 for forehead
GoldenPalace.com
$4000 for tummy
Need a body?
TatAd.com
E-bay
Wanted: Dinosaur Hunters

41. It Gets Results Retailers are happy Floor graphics
25-27% sales increase
Shopping carts
10% increase
Gas pump nozzles
40-300% increase
Costs less than traditional methods

42. Discussion Question
Reddi Wip is one product whose media strategy includes heavy ad expenditures prior to Thanksgiving.
What types of products would benefit from a media flighting strategy?

43. Advertising Key Decisions: Setting objectives Setting the budget
Measuring communications effects
Copy testing
Consumer recall
Product awareness
Product knowledge
Product preference
Measuring sales effect
Past vs. current sales comparison
Experimentation
Key Decisions:
Setting objectives
Setting the budget
Developing the advertising strategy
Evaluating advertising campaigns

44. Advertising Organizing the Advertising Function
Small vs. large companies
Nature of advertising agencies
Advantages of advertising agencies
Departments
Compensation
Changes in agency services

45. Advertising Advertising to International Markets
Advantages of standardizing worldwide advertising:
Lower advertising costs
Greater global ad coordination
Consistent global image

46. Global ads aim for one brand, image
Technology has made the world smaller
“need to standardize to a greater degree, because consumers will notice differences in different markets”

48. Advertising Advertising to International Markets
Drawbacks to standardizing worldwide advertising:
Ignores differences in demographics and economic conditions
Ignores differences in culture

49. U.S., Thai, & German websites reflect the worldwide Jeep brand image of ruggedness and reliability

50. Advertising Advertising to International Markets
Most marketers think globally but act locally

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

52. 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.

53. Sales Promotion Objectives – Consumer Promotions:
Increase short-term sales
Generate product trial

54. Consumer Promotion Tools
Sales Promotion
Consumer Promotion Tools
Samples
Cash Refunds (Rebates)
Price packs (cents-off deals)
Advertising Specialties
Premiums
Patronage Rewards
Point-of-Purchase Communications
Contests, Games, and Sweepstakes

55. Percentage of Rebates Redeemed by Dollar Value
LO4
Value Redeemed
Greater than $ %
$ %
$ %
$ %
$ %
Less than $ %

56. Checkout direct offers marketers an excellent opportunity to reach users of the competition
Coupons are only issued to those who purchase specific brands

57. Sales Promotion Objectives – Trade Promotions:
Obtaining distribution and shelf space
Encouraging retailers to advertise the brand

58. Sales Promotion Objectives – Sales Force Promotions:
Signing up new accounts
Stimulating sales of specific items

59. Sales Promotion Trade Promotion Tools
Discounts (also called price-offs, off-list, and off-invoice discounts)
Allowances
Advertising allowances
Display allowances
Free goods
Push money
Specialty advertising items

60. Sales Promotion Business Promotion Tools
Includes many of the same tools used in trade and consumer promotions
Two additional tools:
Conventions & trade shows
Sales contests

61. 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
Surveys and experiments can be used

62. 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.

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

64. Public Relations Role & Impact of Public Relations Advantages:
Strong impact on public awareness at a lower cost than advertising
Greater credibility than advertising
Publicity is often underused
Good public relations can be a powerful brand-building tool

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

66. Special Events: Sponsorships In-Depth
Public Relations Tie-in:
Sponsorships relate to special events
Types of Sponsorships:
Sports sponsorships
Entertainment, tours, and attractions
Festivals, fairs, and annual events
Cause-related marketing
Arts
Sponsorship Trends:
2001: $9.5 billion spent
Reasons for Growth:
Avoids clutter
Cost efficient / effective
Gains constituencies’ approval
Enhances brand equity
Allows for lifestyle or geographic targeting
Sources:
“Injecting life into sponsorship deals” Marketing; London; Apr 18, 2002; Mary Cowlett; Start Page: 27
“Getting in on the Action,” PROMO’s 9th Annual SourceBook, 2002, 25.
Advertising, Promotion and Supplemental Aspects of Integrated Marketing Communications. Terence A. Shimp, 6th edition, Thomson South-western, 2003, pp

67. Special Events: Sponsorships In-Depth
Selecting Sponsorship Events -- Consider:
Is it consistent with brand image or will it benefit the brand image?
Does it offer a strong probability of reaching the target audience?
Does the event complement existing sponsorships and other IMC efforts?
Selecting Sponsorship Events -- Consider:
Is the event cluttered by many other sponsors?
Is the event economically viable?
Has the competition previously sponsored the event? Is there a risk of confusing the target audience as to the sponsor’s identity?

68. Discussion Question
If you were responsible for marketing an anti-aging cream to baby boomers, what events or causes would you choose to sponsor (local or national) and why?