1. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Chapter 16: Advertising and Sales Promotion

2. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill When you finish this chapter, you should 16-2 Chapter 16 Objectives 1. Understand why a marketing manager sets specific objectives to guide the advertising effort. 2. Understand when the various kinds of advertising are needed. 3. Understand how to choose the “best” medium. 4. Understand the main ways that advertising on the Internet differs from advertising in other media. 5. Understand how to plan the "best" message—that is, the copy thrust. 6. Understand what advertising agencies do—and how they are paid. 7. Understand how to advertise legally. 8. Understand the importance and nature of sales promotion. 9. Know the advantages and limitations of different types of sales promotion. 10. Understand the important new terms.

3. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Exhibit 16-1 16-3 Strategy Planning for Advertising Sales Promotion Mass Selling Personal Selling Target Market Price Promotion Place Product Copy thrust Media types Kind of advertising Target audience Who will do the work? PublicityAdvertising

4. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Introduce New Products Position Brands Obtain Outlets Ongoing Contact Support Sales Force Get Immediate Action Maintain Relationships Strategy Decisions in Setting Advertising Objectives 16-4 Setting Advertising Objectives

5. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Reminder Pioneering Competitive Kinds of Product Advertising 16-5 Kinds of Advertising

6. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Yellow Pages Outdoor Internet Magazine Television Direct Mail Radio Newspaper Major Kinds of Media Choosing Media 16-6

7. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Many Forms Seek Direct Response More Exposure Better Targeting Context Ads/Pointcasting Pay for Results Advertising on the Internet 16-7

8. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Get Attention Hold Interest Arouse Desire Obtain Action Planning the Message 16-8

9. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Build Upon What Works Build Upon What Works Research and Testing May Improve Odds Research and Testing May Improve Odds Consider the Total Mix Measuring Advertising Effectiveness 16-9

10. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Issues in Managing Sales Promotion 16-10 + Growth + - Erodes Brand Loyalty - Hard to Manage - Positives Negatives + Immediate Results +

11. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Possible Effects of Sales Promotion Exhibit 16-6A Sales temporarily increase, then decrease, then return to regular level Period of promotion Unit Sales Time 16-11

12. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Possible Effects of Sales Promotion Sales temporarily increase and then return to regular level Period of promotion Unit Sales Time Exhibit 16-6B 16-12

13. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Possible Effects of Sales Promotion Sales increase and then remain at higher level Period of promotion Unit Sales Time Exhibit 16-6C 16-13

14. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Institutional Advertising Product Advertising Pioneering Competitive Direct Type Indirect Type Comparative Reminder Advertising Allowances Cooperative Advertising Copy Thrust Advertising Agencies Corrective Advertising Key Terms 16-14