Advertising,

Sales Promotion, and

Public Relations

Chapter 16
 Objectives
• Understand the roles of
advertising, sales
promotion,
and public relations in the
promotion mix.
• Know the major decisions
involved in developing an
advertising program.
16 - 2
 Objectives
• Learn how sales promotion
campaigns are developed
and implemented.
• Learn how companies use
public relations to
communicate with their
publics.
16 - 3
 Case Study
AFLAC
• A few years • 1999: AFLAC
ago, only 13% developed the
of U.S. “duck”
recognized campaign to
AFLAC enhance brand
awareness
• Old ads: “warm •
Incredibly
and fuzzy” successful:
similar to name
other recognition is
16 - 4
 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 $231
billion in U.S. annually, $500
billion worldwide.
• Business firms, not-for-profit,
social agencies, and
professionals all advertise.
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 Advertising

Key • Advertising objectives

Decisions can be classified by
primary purpose:
• Setting objectives § Inform
v Introducing
• Setting the budget new
products
• Developing the § Persuade
advertising v Becomes more
important as
strategy competition
increases
• Evaluating v Comparative
advertising
advertising § Remind 16 - 7
 Advertising

Key • Methods of budget

Decisions setting were listed
in chapter 15
• Setting objectives • Several factors should
• Setting the budget be considered when
setting the ad
• Developing the budget:
§ Stage in the PLC
advertising § Market share
strategy § Level of
competition
• Evaluating § Ad clutter
advertising § Degree of brand 16 - 8
 Advertising

Key • Creative challenges

Decisions § Media
fragmentation
• Setting objectives § Soaring media costs
§ Advertising clutter
• Setting the budget
• Creating ad messages
• Developing the § Message strategy
Creative
advertising v
concept
strategy v Advertising
appeal
• Evaluating § Message execution
Many
advertising v
execution 16 - 9
 Advertising

Creative Execution Styles

• Slice of Life • Musical
• Lifestyle • Personality
• Fantasy Symbol
• Mood or • Technical
Image Expertise
•Te stim o n ia lE vid e n ce o r
E n d o rse m e n t • Scientific
Evidence 16 - 10
 Advertising
Key • Select advertising
media
Decisions § Decide on level of
• Setting objectives reach, frequency
and impact
• Setting the budget § Choose among the
major media
• Developing the types by
advertising considering:
strategy v Consumer
media
• Evaluating habits,
nature of
advertising the product,
types of 16 - 11
 Advertising

Major Media Types

• Newspaper • Radio
s • Magazines
• Television • Outdoor
• Direct Mail
•In te rn e t
•

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 Advertising

Key • Measuring
Decisions communications
effects
• Setting objectives § Copy testing
§ Consumer recall
• Setting the budget § Product awareness
• Developing the § Product knowledge
§ Product preference
advertising
• Measuring sales effect
strategy § Past vs. current
• Evaluating sales comparison
§ Experimentation
advertising § 16 - 13
 Advertising
• Organizing the Advertising
Function
§ Small vs. large companies
§ Nature of advertising
agencies
vAdvantages of advertising
agencies
vDepartments
vCompensation
16 - 14
 Advertising
• Advertising to International
Markets
§ Standardizing worldwide
advertising
v Advantages include lower
advertising costs,
greater global advertising
coordination, and
consistent global image
v Drawbacks include ignoring
differences in culture, 16 - 15
 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.
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 Sales Promotion
• Objectives -- Consumer
Promotions:
§ Increase short-term sales
§ Generate product trial
• Objectives -- Trade Promotions:
§ Obtaining distribution and shelf
space
§ Encouraging retailers to advertise
the brand
• Objectives -- Sales Force 16 - 18
 Sales Promotion

Consumer Promotion Tools

• Samples • Premiums
• Cash Refunds • Patronage
(Rebates) Rewards
• Price packs • Point-of-
(cents-off Purchase
deals) Communicati
• Advertising ons
Specialties • Contests,
Games, and 16 - 19
 Sales Promotion
• Trade Promotion Tools
§ Discounts ( also called price-off,
off-list, and off-invoice)
§ Allowances
v Advertising allowances
v 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:
vConventions and trade shows
vSales 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 16 - 22
 Definition
• Public Relations:
§ 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. 16 - 23
 Public Relations

Public Relations Functions

• Press • Lobbying
Relations • Investor
• Product Relations
Publicity • Development
• Public
Affairs
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 Public Relations
• Role and Impact of Public
Relations
§ Advantages:
vStrong impact on public
awareness at
lower cost than advertising
vGreater credibility than
advertising
§ Publicity is often underused
§ Good public relations can be
16 - 25
 Public Relations

Public Relations Tools

• News • Special Events
• Speeches • Written
• Corporate Materials
Identity • Audiovisual
Materials Materials
• Mobile • Public Service
Marketing Activities
16 - 26