CHAPTER SIXTEEN

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CHAPTER SIXTEEN

• ADVERTISING, SALES PROMOTION AND PUBLIC RELATIONS

Prepared by Jack Gifford Miami University (Ohio)
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ADVERTISING AND THE CONSUMER

• Advertising affects everyones lives and
  influences many purchases.
• Consumers turn to advertising for its
  informativeness as well as its entertainment
  value
• The average American watches 72 minutes of
  commercials on TV per day

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ADVERTISING AND BRAND LOYALTY

• Consumers with a high degree of brand loyalty are
  least susceptible to the influence of advertising
  for competing goods and services.
• Advertising also reinforces positive attitudes
  toward brands

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ADVERTISING AND PRODUCT ATTRIBUTES

• Advertising can affect the way consumers rank a
  brands attributes, such as color, taste, smell,
  and texture
• Advertising can also influence the order in which
  these attitudes are valued and the relative
  magnitude of the attribute importance

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MAJOR TYPES OF ADVERTISING

• Promotes the corporation as a whole
• Designed to influence corporate identity
• Is not usually action-oriented
• Promotes good corporate citizenship
• May take the form of advocacy advertisements of
  controversial issues

• Institutional advertising
• Product advertising

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MAJOR TYPES OF ADVERTISING

• Institutional advertising
• Product advertising

• Promotes the benefits of a specific good or
  service
• Usually immediate action-oriented
• Includes pioneering, competitive and comparative
  advertising

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MAJOR TYPES OF ADVERTISING PRODUCT ADVERTISING
(CONTINUED)

• Competitive advertising
• Used during growth stage of product life cycle
• Promote brand preference
• Persuade and remind
• Comparative advertising
• Must not make false or misleading statements
  (FTC)
• Legality and strength of message is different
  around the globe

• Pioneering advertising
• Stimulate primary demand for a new product
• First stage of the product life cycle
• Generate attention and interest
• Primarily informational

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CREATING AN ADVERTISING CAMPAIGN

• Is a series of related advertisements focusing on
  a common theme, slogan, and set of advertising
  appeals
• Is related to a specific product or service and
  runs for a defined period of time

DETERMINE CAMPAIGN OBJECTIVES
MAKE CREATIVE AND MEDIA DECISIONS
EVALUATE THE CAMPAIGN
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MAJOR TYPES OF ADVERTISING PRODUCT ADVERTISING
(CONTINUED)

• Competitive advertising
• Used during growth stage of product life cycle
• Promote brand preference
• Persuade and remind
• Comparative advertising
• Must not make false or misleading statements
  (FTC)
• Legality and strength of message is different
  around the globe

• Pioneering advertising
• Stimulate primary demand for a new product
• First stage of the product life cycle
• Generate attention and interest
• Primarily informational

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CREATING AN ADVERTISING CAMPAIGN

• Is a series of related advertisements focusing on
  a common theme, slogan, and set of advertising
  appeals
• Is related to a specific product or service and
  runs for a defined period of time

DETERMINE CAMPAIGN OBJECTIVES
MAKE CREATIVE AND MEDIA DECISIONS
EVALUATE THE CAMPAIGN
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CREATING AN ADVERTISING CAMPAIGN

• Identify specific communication task
• Identify specific target market(s)
• Define period, desired outcomes, and how these
  outcomes will be measured
• DAGMAR Define Advertising Goals for Measured
  Advertising Results

DETERMINE CAMPAIGN OBJECTIVES
MAKE CREATIVE AND MEDIA DECISIONS
EVALUATE THE CAMPAIGN
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CREATING AN ADVERTISING CAMPAIGN

• Creative and media decision must work together
• Identify product benefits People buy holes, not
  drills
• Give the customer a reason to buy your product
• Create a unique selling position

DETERMINE CAMPAIGN OBJECTIVES
MAKE CREATIVE AND MEDIA DECISIONS
EVALUATE THE CAMPAIGN
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CREATING AN ADVERTISING CAMPAIGN

• Execute the message media
• AIDA Attention, Interest, Desire, Action
• Select one or more execution styles listed on the
  following page

DETERMINE CAMPAIGN OBJECTIVES
MAKE CREATIVE AND MEDIA DECISIONS
EVALUATE THE CAMPAIGN
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EXECUTIONAL STYLES FOR ADVERTISING

• Slice-of-life
• Lifestyle
• Spokesperson / testimonial
• Fantasy
• Humorous
• Real / animated product symbols

• Mood or image
• Demonstration
• Musical
• Scientific
• Different combinations of the above are effective
  in different parts of the world

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MAKING MEDIA DECISIONS
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MAKING MEDIA DECISIONS MEDIA TYPES

• Newspapers (20.6)
• Geographical flexibility
• Timelines
• Often a local media
• High use of horizontal and vertical cooperative
  advertising
• Short lead time required
• Short-term advertiser commitments
• Year-round readership

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MAKING MEDIA DECISIONS MEDIA TYPES

• Magazines (16.2)
• Good reproduction
• Demographic and regional selectivity
• Relatively long advertising life
• High pass along rate
• Cost per contact is relatively high

PC Week
Ebony
SPORTS ILLUSTRATED
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MAKING MEDIA DECISIONS MEDIA TYPES

• Radio (3.0)
• Selectivity and audience segmentation
• Low cost per contact
• Short life of message
• Portable media/drive-time audience
• Making a comeback in popularity

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MAKING MEDIA DECISIONS MEDIA TYPES

• Television (45.0)
• Reach wide, diverse audience
• Low cost per thousand
• Creative opportunities and flexibility (video
  audio)
• Immediacy of message
• Entertainment carryover
• Demographic selectivity with cable
• Infomercials

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MAKING MEDIA DECISIONS MEDIA TYPES

• Outdoor media (1.7)
• Billboards, transit signs, Signs in sports
  centers, etc.
• Flexible, low-cost, geographic selectivity
• High exposure frequency
• Growing in popularity and innovativeness

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MAKING MEDIA DECISIONS MEDIA TYPES

• Internet and the World Wide Web
• Huge growth
• Widely used search engines
• Used for business-to-business marketing 101
  today
• Many new innovations and technologies
• Entrepreneurial opportunities
• Alternative media CD-ROM, kiosks, movies

http//www.amazon.com
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MEDIA SELECTION AND SCHEDULING CONSIDERATIONS
To whom?

• Media selection considerations
• Cost per contact
• Reach and frequency
• Audience selectivity
• Media scheduling
• Continuous media schedule
• Flighted vs pulsing media scheduling
• Seasonal media scheduling

What media?
How often?
When?

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EVALUATION OF THE ADVERTISING CAMPAIGN

• Measuring outcomes against goals and objectives
• Pre and post campaign analysis
• Difficulties in measurement
• Interaction and effect over time
• Cumulative impact
• Imperfect measurement tools

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SALES PROMOTIONS

• Contests and sweepstakes
• Coupons and rebates
• Sampling
• Fashion shows
• Entertainment
• Premiums
• Special incentives, like trips, free goods, etc.
• Loyalty programs

• Sales Promotions are marketing communication
  activities, other than advertising, personal
  selling and public relations, in which a
  short-term incentive motivates consumers or
  members of the distribution channel to purchase a
  good or service immediately, either by lowering
  the price or adding value.

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SALES PROMOTIONS OBJECTIVES AND AUDIENCES

• Objectives
• Stimulate immediate action
• Modify behavior and increase loyalty
• Reward performance
• Reinforce existing behavior
• Stimulate repeat purchases

• Audiences
• Consumer sales promotions (the ultimate consumer
  market)
• Trade sales promotions (members of the marketing
  channel, such as wholesalers or retailers)

Tools include...
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TRADE SALES PROMOTIONS INCLUDE...

• Trade allowances
• Push money
• Training
• Free merchandise
• Store demonstrations
• Business meetings, conventions, and trade shows
• Special prizes for performance

One week vacation for top salesperson and family
to Disney World
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PUBLIC RELATIONS

• Evaluates public attitudes of stakeholders
• Identifies issues that may elicit public concern
• Executes programs to
• Gain public acceptance
• Change public perceptions
• Counter negative events

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SALES PROMOTIONS TARGETED AT WHOLESALERS AND
RETAILERS

• Major Forms
• Trade shows

• International, national or regional
• Acts as a marketplace for intermediaries
• Usually category specific (boats, mens
  apparel, electronics, etc.)

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SALES PROMOTIONS TARGETED AT WHOLESALERS AND
RETAILERS

• Major Forms
• Trade shows
• Contests

• Motivate sales force
• Increase sales levels
• Generate excitement and extra earning
  opportunities
• Persuade sales people to push your line over
  other similar lines

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SALES PROMOTIONS TARGETED AT WHOLESALERS AND
RETAILERS

• Major Forms
• Trade shows
• Contests
• Point-of-purchase displays

• Capture prime locations within store
• Acts as a silent salesperson
• Stimulate
• Attention
• Interest
• Desire
• Action

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SALES PROMOTIONS TARGETED AT WHOLESALERS AND
RETAILERS

• Major Forms
• Trade shows
• Contests
• Point-of-purchase displays
• Cooperative advertising and promotional programs

• Share cost of promotional activities
• Vertical cooperative advertising (M-W-,M-R,W-R)
• Horizontal cooperative advertising (R-R,W-W, M-M)

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SALES PROMOTIONS TARGETED AT WHOLESALERS AND
RETAILERS

• Major Forms
• Trade shows
• Contests
• Point-of-purchase displays
• Cooperative advertising and promotional programs
• Allowances

• Price reductions
• Rebates
• Free Goods
• Demonstration products

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SALES PROMOTIONS TARGETED AT ULTIMATE CONSUMERS

• Product sampling
• Cents-off coupons
• Rebates
• Contests sweepstakes
• Premiums
• Multi-purchase offers
• Point-of-purchase materials
• Product placements

• Reach new customers by inducing trial use
• New products
• New brands
• Sample size
• Distributed to
• Homes
• Retail settings
• Wherever people are gathered

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SALES PROMOTIONS TARGETED AT ULTIMATE CONSUMERS

• Increase short-term sales
• Attract new users
• Stimulate heavier usage
• Encourage brand switching
• Distributed in-store, by mail, and via the
  Internet

• Product sampling
• Cents-off coupons

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SALES PROMOTIONS TARGETED AT ULTIMATE CONSUMERS

• Product sampling
• Cents-off coupons
• Rebates

• Money back from the manufacturer
• Encourage multiple purchases (3 box tops)
• Low cost of distribution (on package)

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SALES PROMOTIONS TARGETED AT ULTIMATE CONSUMERS

• Product sampling
• Cents-off coupons
• Rebates
• Contests sweepstakes

• Become winners based upon chance
• Heavily regulated
• Encourage repeat purchases to increase chance of
  winning

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SALES PROMOTIONS TARGETED AT ULTIMATE CONSUMERS

• Product sampling
• Cents-off coupons
• Rebates
• Contests sweepstakes
• Premiums

• Free or at a reduced price if another product,
  the key brand, is purchased
• Collect a set of glasses
• Frequent Flyer Programs
• Brand loyalty programs

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SALES PROMOTIONS TARGETED AT ULTIMATE CONSUMERS

• Product sampling
• Cents-off coupons
• Rebates
• Contests sweepstakes
• Premiums
• Multi-purchase offers

• Two-for-one deals
• Encourages bigger than normal purchases
• Helps maintain customer loyalty

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SALES PROMOTIONS TARGETED AT ULTIMATE CONSUMERS

• Product sampling
• Cents-off coupons
• Rebates
• Contests sweepstakes
• Premiums
• Multi-purchase offers
• Point-of-purchase materials(POP)

• Banners, pamphlets, coasters, napkins, matches
• In-store videos
• Shopping cart billboards

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SALES PROMOTIONS TARGETED AT ULTIMATE CONSUMERS

• Product sampling
• Cents-off coupons
• Rebates
• Contests sweepstakes
• Premiums
• Multi-purchase offers
• Point-of-purchase materials
• Product placements

• Product or company that appears within a movie or
  TV show

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PUBLIC RELATIONS AND PUBLICITY

• Public Relations is the managerial activity that
  identifies, establishes, and maintains beneficial
  relationships between a company and its many
  stakeholders
• Publicity is one means of accomplishing public
  relations
• Involves a third party
• Is free
• Limited control over content

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PUBLICITY

• News Releases
• Press conferences
• Staged newsworthy events
• Photo opportunities

Armed forces air shows to generate recruits and
positive public support

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PUBLICITY

• Written news releases and videos provided to
  media
• Appearances of spokespersons
• Participation on talk shows

• Provision of apparel for famous people

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PUBLICITY

• Event Sponsorship
• Sporting events and charity causes
• Provide financial resources, equipment, personal
  services and/or facilities
• Positive image through association

• Speedo Invitational Swim Meet

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PUBLIC RELATIONS AND CRISIS MANAGEMENT

• PR effort that urgently requires dissemination of
  information about an emergency
• Product recall
• Takeover rumors
• Corporate accidents (fires, environmental
  accidents, etc.)

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EVALUATING AND MONITORING PUBLIC RELATIONS

• Requires a systematic gathering of information
  for a companys many publics
• Maintenance of image benchmarks

Maintaining the corporate and public pulse!