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

2. What is Advertising?
Advertising is Any Paid Form of Nonpersonal Presentation and Promotion of Ideas, Goods, or Services by an Identified Sponsor.

3. Major Advertising Decisions
Message Decisions
Message Strategy
Message Execution
Objectives Setting
Communication objectives
Sales Objectives
Budget Decisions
Affordable Approach
Percent of sales
Competitive parity
Objective and task
Campaign Evaluation
Communication Impact
Sales Impact
Media Decisions
Reach, Frequency, Impact
Major Media Types
Specific Media Types
Media Timing

4. Setting Advertising Objectives
Informative Advertising
Inform Consumers or
Build Primary Demand
i.e CD Players
Persuasive Advertising
Build Selective Demand
i.e Sony CD Players
Advertising Objective
Specific Communication Task
Accomplished with a Specific
Target Audience
During a Specific Period of Time
Comparison Advertising
Compares One Brand to
Another
i.e. Avis vs. Hertz
Reminder Advertising
Keeps Consumers Thinking
About a Product
i.e. Coca-Cola

5. Setting the Promotion Budget
After Determining Its Advertising Objectives, the Marketer Must Set the Advertising Budget for Each Product and Market. (From Chapter 14)
Affordable
Based on What the
Company Can Afford
Objective-and-Task
Based on Determining
Objectives & Tasks, Then
Estimating Costs
Percentage of Sales
Based on a Certain Percentage
of Current or Forecasted Sales
Competitive-Parity
Based on the Competitor’s
Promotion Budget

6. Setting the Advertising Budget
Factors to be considered when setting the advertising budget:
Stage in the product life cycle,
Market share,
Competition and clutter,
Product differentiation.

7. Developing Advertising Strategy
Advertising Strategy Consists of Two Major Elements and Companies are Realizing the Benefits of Planning These Two Elements Jointly.
Creating the Advertising
Messages
Selecting the Advertising Media

8. Developing Advertising Strategy: Creating Ad Messages
Plan a Message Strategy
General Message to Be Communicated to Customers
Developing Advertising Strategy: Creating Ad Messages
Develop a Message
Focus on
Customer Benefits
Creative Concept
“Big Idea”
Visualization or Phrase
Combination of Both
Advertising Appeals
Meaningful
Believable
Distinctive

9. Developing Advertising Strategy: Message Execution
Testimonial Evidence
Slice of Life
Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest.
Scientific Evidence
Lifestyle
Typical
Message
Execution
Styles
Technical Expertise
Fantasy
Personality Symbol
Mood or Image
Musical

10. Advertising Strategy: Selecting Advertising Media
Step 1. Decide on Reach, Frequency,
and Impact
Step 2. Choosing Among Major Media Types
Media Habits of Target Consumers,
Nature of the Product, Types of Message, Cost
Advertising Strategy: Selecting Advertising Media
Step 3. Selecting Specific Media Vehicles
Specific Media Within a Given Type, i.e. Magazines.
Must Balance Media Cost Against Media Factors:
Audience Quality & Attention, Editorial Quality
Step 4. Deciding on Media Timing
Scheduling of Advertising Over the Course of a Year
Pattern of Ads: Continuity or Pulsing

11. Evaluating Advertising
Advertising Program Evaluation
Evaluating Advertising
Communication Effects
Is the Ad Communicating Well?
Sales Effects
Is the Ad Increasing Sales?

12. What is Sales Promotion ?
Sales Promotion is a Mass Communication Technique That Offers Short-Term Incentives to Encourage Purchase or Sales of a Product or Service.
Offers Reasons to Buy Now.

13. Rapid Growth of Sales Promotion
Sales promotion can take the form of consumer promotions, business promotions, trade promotions or sales force promotions.
Rapid growth in the industry has been achieved because:
Product managers are facing more pressure to increase their current sales,
Companies face more competition,
Advertising efficiency has declined,
Consumers have become more deal oriented.

14. Sales Promotion Objectives
Increase short-term sales or help build long-term market share.
Get retailers to:
carry new items and more inventory,
advertise products,
give products more shelf space, and
buy product ahead.
In general, sales promotion should focus on consumer relationship building.

15. Major Consumer Sales Promotion Tools
Sample
Trial amount of a product
Coupons
Savings when purchasing specified products
Cash Refunds
Refund of part of the purchase price
Price Packs
Reduced prices marked on the label or package
Premiums
Goods offered free or low cost as an incentive to buy a product
Advertising
Specialties
Articles imprinted with an advertiser’s name given as gifts

16. Major Consumer Sales Promotion Tools
Patronage Rewards
Point-of-Purchase
Contests
Sweepstakes
Game
Cash or other rewards for the use of a certain product
Displays and demonstrations that take place at the point of sale
Consumers submit an entry to be judged
Consumers submit their names for a drawing
Presents consumers with something every time they buy

17. Major Trade Sales Promotion Tools
Trade-Promotion Objectives
Persuade Retailers or
Wholesalers to Carry a Brand
Give a Brand Shelf Space
Promote a Brand in
Advertising
Push a Brand to Consumers
Trade-Promotion Tools
Discounts
Allowances

18. Major Business Sales Promotion Tools
Business-Promotion Objectives
Generate Business Leads
Stimulate Purchases
Reward Customers
Motivate Salespeople
Business-Promotion Tools
Conventions
Trade Shows
Sales Contests

19. Developing the Sales Promotion Program
Decide on the Size of the Incentive
Set Conditions for Participation
Developing the Sales Promotion Program
Determine How to Promote and
Distribute the Promotion Program
Determine the Length of the Program
Evaluate the Program

20. What is Public Relations?
Public Relations Involves 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.

21. Major Public Relations Functions
Press Relations or Agentry
Product Publicity
Public Affairs
Lobbying
Investor Relations
Development
Public Relations Departments May Perform Any of All of the Following Functions:

22. Major Public Relations Tools
News
Web Site
Speeches
Public Service Activities
Special Events
Corporate Identity Materials
Written Materials
Audiovisual Materials

23. Major Public Relations Decisions
Setting Public Relations Objectives
Choosing the Public Relations Messages
and Vehicles
Implementing the Public Relations Plan
Evaluating Public Relations Results