Chapter 15 Advertising, Sales Promotion, and Public

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• Chapter 15
• Advertising, Sales Promotion, and Public Relations

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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.

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Case Study Crispin Porter Bogusky

• Located in Coconut Grove, FL
• Winners of several creative awards
• Known for guerrilla tactics, unconventional media
  and holistic marketing strategies

• Often suggests changes in the clients
  procedures, products and processes to enhance
  brand image
• Clients include Virgin Airline, MINI cars, Ikea
  furniture, Molson beer, Truth and Burger King

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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.

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Definition

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

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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.

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Major Advertising DecisionsFigure 15.1
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Advertising
Key Decisions

• 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

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

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Marketing in Action
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Advertising
Key Decisions

• 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

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Setting the Budget

• What factors must this company consider when
  setting its budget?

Click on image of Website for Product Description
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Marketing in Action
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Advertising
Key Decisions

• Creative challenges
• Advertising clutter
• TiVo and PVRs
• 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

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Advertising
Creative Execution Styles

• Slice of Life
• Lifestyle
• Fantasy
• Mood or Image

• Musical
• Personality Symbol
• Technical Expertise
• Scientific Evidence

• Testimonial Evidence or Endorsement

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A Fantasy and Slice of Life Executional Style
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Marketing in Action
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Advertising

• 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

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Advertising
Major Media Types

• Newspapers
• Television
• Direct Mail

• Radio
• Magazines
• Outdoor

• Internet

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Media Selection

• What media types make sense for Segway Scooters?
  Why?

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Marketing in Action
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Advertising
Key Decisions

• 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

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Evaluating Advertising

• L.L. Bean is evaluating the different elements of
  the marketing mix to determine which led to this
  website visit

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Marketing in Action
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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.

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Marketing in Action
Source Advertising Age
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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
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Marketing in Action
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Advertising

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

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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

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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.

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Definition

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

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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

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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

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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

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Sales Promotion

• This print ad is combined with a consumer sales
  promotion

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Marketing in Action
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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

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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

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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

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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.

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Definition

• Public Relations
• Building good relations with the companys
  various publics by obtaining favorable publicity,
  building up a good corporate image, and handling
  or heading off unfavorable rumors, stories, and
  events.

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

• Press Relations
• Product Publicity
• Public Affairs

• Lobbying
• Investor Relations
• Development

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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

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Public Relations
Public Relations Tools

• News
• Speeches
• Buzz Marketing
• Corporate Identity Materials
• Mobile Marketing

• Special Events
• Written Materials
• Audiovisual Materials
• Public Service Activities
• Internet

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Public Relations

• From pizza to doctors, many magazines and
  websites publish Best of lists.

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Marketing in Action
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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.