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Advertising, Sales Promotion, and Public Relations

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Chapter 15 Advertising, Sales Promotion, and Public Relations Learning Goals Know the major decisions involved in developing an advertising program. – PowerPoint PPT presentation

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Title: Advertising, Sales Promotion, and Public Relations


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

2
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.

3
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.

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

5
Mac vs PC
6
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.

7
Show Net Price Change
1 Friends NBC 473,500 3.9
2 Will Grace NBC 414,500 10.1
3 ER NBC 404,814 -7.7
4 Survivor CBS 390,367 -6.8
5 Scrubs NBC 360,950 22.5
6 Coupling NBC 316,400
7 CSI CBS 310,324 10.8
8 The Simpsons Fox 296,440 19.4
9 24 Fox 292,200 58.3
10 Mon. Football ABC 272,867 -8.4
The "Change" field represents the difference from last season. 'Coupling' is a new show. There is no previous season comparison number. Price is the cost of placing a 30 second ad in the particular show The "Change" field represents the difference from last season. 'Coupling' is a new show. There is no previous season comparison number. Price is the cost of placing a 30 second ad in the particular show The "Change" field represents the difference from last season. 'Coupling' is a new show. There is no previous season comparison number. Price is the cost of placing a 30 second ad in the particular show The "Change" field represents the difference from last season. 'Coupling' is a new show. There is no previous season comparison number. Price is the cost of placing a 30 second ad in the particular show The "Change" field represents the difference from last season. 'Coupling' is a new show. There is no previous season comparison number. Price is the cost of placing a 30 second ad in the particular show
8
In 2005 in Turkey
  • One of the indicators of improvement in
    advertising sector is number of new ads of firms
    and brands other one is the number of ads in
    total.
  • Last year 717 brands advertised for the first
    time.
  • In total 13,810,636 second of ads were run
  • TV shows were taking the lead. National TV
    shows in total had 10,335,659 seconds of ads.
  • Foreign TV shows in total had 5,726,725 seconds
    of ads.
  • Number 1 was (with syndications) "Çocuklar
    Duymasin It was aired 382 times and had 515,073
    seconds of ads.
  • Number 2 was "En Son Babalar Duyar". It was aired
    366 times and had 469,754 seconds of ads.

9
Cities
10
Flavors
11
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12
Major Advertising DecisionsFigure 15.1
13
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

14
  • Kleenex is a well-known brand. The purpose of
    this ad is to remind the consumer.

15
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

16
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

17
Advertising
Creative Execution Styles
  • Musical
  • Personality Symbol
  • Technical Expertise
  • Scientific Evidence
  • Demonstration
  • Slice of Life
  • Lifestyle
  • Fantasy
  • Mood or Image
  • Testimonial Evidence or Endorsement

18
Slice of Life Execution Style
19
Apple Uses a ____________

20
Crest Whitestrips Uses a __________

21
Use of Music
22
Use of Fear
23
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24
Message Source
  • Marketers hire celebrities as spokespersons to
    add excitement to the source of the message

25
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26
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

27
Advertising
Major Media Types
  • Newspapers
  • Television
  • Direct Mail
  • Radio
  • Magazines
  • Outdoor
  • Internet

28
Media Selection
  • What media types make sense for Segway Scooters?
    Why?

29
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

30
Evaluating Advertising
  • L.L. Bean is evaluating the different elements of
    the marketing mix to determine which led to this
    website visit

15 - 30
Marketing in Action
31
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.

15 - 31
Marketing in Action
Source Advertising Age
32
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
15 - 32
Marketing in Action
33
Advertising
  • Organizing the Advertising Function
  • Small vs. large companies
  • Nature of advertising agencies
  • Advantages of advertising agencies
  • Consolidation and growth of agencies
  • Creative boutiques

34
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

35
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36
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37
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.

38
Definition
  • Sales Promotion
  • Sales promotions are short-term incentives to
    encourage the purchase or sale of a product or
    service.

39
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

40
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

41
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

42
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43
Sales Promotion
  • This print ad is combined with a consumer sales
    promotion

15 - 43
44
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45
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

46
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

47
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

48
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.

49
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.

50
Press Releases are Important for Public Safety
Concerns
The News Reports
The P.R. Response
15 - 50
Marketing in Action
51
Public Relations
Public Relations Functions
  • Press Relations
  • Product Publicity
  • Public Affairs
  • Lobbying
  • Investor Relations
  • Development

52
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

53
Public Relations
Public Relations Tools
  • News
  • Speeches
  • Buzz Marketing
  • Corporate Identity Materials
  • Mobile Marketing
  • Special Events
  • Written Materials
  • Audiovisual Materials
  • Public Service Activities
  • Internet

54
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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