Chapter 15

Advertising, Sales Promotion, and Public Relations

Advertising
Advertising is centuries old. U.S. advertisers spend in excess of $212 billion each year; worldwide spending exceeds $414 billion. Advertising is used by:
Business firms, Nonprofit organizations, Professionals, and Social agencies.

What is Advertising?

Advertising is Any Paid Form of Nonpersonal Presentation and Promotion of Ideas, Goods, or Services by an Identified Sponsor.

Functions of Advertising
Provide Product & Provide Product & Brand Information Brand Information

Provide Incentives Provide Incentives To Take Action To Take Action

Advertising Advertising Performs 3 Basic Performs 3 Basic Functions Functions

Provide Reminders Provide Reminders and and Reinforcement Reinforcement

Roles of Advertising
Marketing Role Marketing Role Communication Role Communication Role Economic Role Economic Role
Marketing is the process a business uses to satisfy consumer needs and wants through goods and services. Advertising is a form of mass communication. Two main views about advertising, either the market power model or the economics of information theory. Informs us about new and improved products, teaches us how to use these innovations, etc.

Societal Role Societal Role

Types of Advertising
Interactive Interactive Advertising Advertising Public Service Public Service Advertising Advertising Institutional Institutional Advertising Advertising Business-toBusiness-toBusiness Business Advertising Advertising Brand Brand Advertising Advertising Retail or Local Retail or Local Advertising Advertising Political Political Advertising Advertising Directory Directory Advertising Advertising

Direct-Response Direct-Response Advertising Advertising

The Five Ms of Advertising

Mission Money Message Measurement Media

Developing an Advertising Plan

3. 2. 1.
Assigning Assigning responresponsibility sibility Establishing Establishing a budget a budget

Figure 19-1

4.
Developing Developing themes themes

Setting Setting objectives objectives Feedback 9. Evaluating Evaluating success/ success/ failure failure 8. Considering Considering cooperative cooperative efforts efforts

5. Selecting Selecting
media media

6. 7.
Timing Timing ads ads Creating Creating ads ads

Developing Advertising Strategy:

Creating Ad Messages
General Message to Be Communicated to Customers

Plan a Message Strategy

Develop a Message Develop a Message

Focus on Focus on Customer Benefits Customer Benefits

Some phrases or Big Ideas become so effective that they spark trends in speaking, fashion, or even in other ads.

Visualization or Phrase Visualization or Phrase Combination of Both Combination of Both

Creative Concept Creative Concept Big Idea Big Idea

Advertising Appeals Advertising Appeals

Meaningful Meaningful Believable Believable Distinctive Distinctive

M essage Executi on
What type of message executi on do these two ads employ?

Developing Advertising Strategy: Message Execution

T h is C o lg a t e a d in f o r m s c u sto m ers a b o u t th e n ec e s si ty o f b ru s h in g a fte r lu n c h .

In both cases, what distingui shes the product from the rest of the ad?

Click or p res s spacebar to retu rn.

Turning the Big Idea Into an Actual Ad to Capture the Target Markets Attention and Interest.
I n a dd it io n to a c q u ir in g n ew cu s tom e r s, Colgate m a y i nc re a se to o th p a s te u se b y p re s e nt c u st o m e rs .

Testimonial Evidence Testimonial Evidence Scientific Evidence Scientific Evidence

Slice of Life Slice of Life Lifestyle Lifestyle Fantasy Fantasy Mood or Image Mood or Image
What type of mood does this set ab o tthe product? u

Technical Expertise Technical Expertise Personality Symbol Personality Symbol

Typical Message Execution Styles

Musical Musical
Which lifestyle does it appeal to?

Advertising Strategy:
Selecting Advertising Media
Step 1. Decide on Reach, Frequency, and Impact Step 2. Choosing Among Major Media Types
Media Habits of Target Consumers, Nature of the Product, Types of Message, Cost

Specific Media Within a Given Type, i.e. Magazines. Must Balance Media Cost Against Media Factors:
Audience Quality & Attention, Editorial Quality

Step 3. Selecting Specific Media Vehicles

Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing

Step 4. Deciding on Media Timing

Types of Advertising Media

Broadcast Media Broadcast Media
Television Television Network, spot, Network, spot, and cable tv and cable tv Radio Radio

Print Media Print Media

Newspapers Newspapers Magazines Magazines Directories Directories

Out-of-home Out-of-home Media Media

Interactive Media Interactive Media

TV shopping TV shopping Computers Computers FAX ads FAX ads E-mail E-mail

Outdoor media Outdoor media Place-based media Place-based media

Advertising Agencies
Large agencies divide their staffs to specialize in creative,media,research, or business (account planning). Ad agencies are moving away from the commission system because it no long accurately reflects the services performed. Most ad agency clients still want just a few of the services that can be provided by the agency, so diversification efforts have been limited.

Types of Agencies
Full-Service 4 Major Staff Functions Full-Service 4 Major Staff Functions Specialized Functions, Audiences, Industries Specialized Functions, Audiences, Industries Industry-Focused Certain Fields, Industries Industry-Focused Certain Fields, Industries Minority Focus on Ethnic Group Minority Focus on Ethnic Group Creative Focus on Creative Executive Creative Focus on Creative Executive Media Buying Services Purchase of Media Buying Services Purchase of Media for Clients Media for Clients Virtual Uses Technology to Operate Virtual Uses Technology to Operate

How Agencies are Organized

Internal Services Account Management

Account Planning & Research

5 Areas of 5 Areas of Importance Importance

Media Planning & Buying

Creative Development & Production

What is Sales Promotion ?

Sales Promotion is a Mass Communication Technique That Offers Short-Term Incentives to Encourage Purchase or Sales of a Product or Service. Offers Reasons to Buy Now.

Sales Promotion Objectives

Increase short-term sales or help build longterm market share. Get retailers to:
carry new items and more inventory, advertise products, give products more shelf space, and buy product ahead.

In general, sales promotion should focus on consumer relationship building.

Sales Promotions Sales Promotions

Advantages Advantages
Build interest Build interest Bring quick sales bursts Bring quick sales bursts Build relationships with Build relationships with intermediaries intermediaries Influence laggards Influence laggards Keep traffic high Keep traffic high Gather information for Gather information for databases databases Dilute brand equity Dilute brand equity Poison the well Poison the well Seem temporary Seem temporary Dilute future sales Dilute future sales

Disadvantages Disadvantages

Major Consumer Sales Promotion Tools

Sample Sample Coupons Coupons Cash Refunds Cash Refunds Price Packs Price Packs Premiums Premiums Advertising Advertising Specialties Specialties
Trial amount of a product Trial amount of a product Savings when purchasing specified Savings when purchasing specified products products Refund of part of the purchase price Refund of part of the purchase price Reduced prices marked on the label or Reduced prices marked on the label or package package Goods offered free or low cost as an Goods offered free or low cost as an incentive to buy a product incentive to buy a product Articles imprinted with an advertisers Articles imprinted with an advertisers name given as gifts name given as gifts

Major Consumer Sales Promotion Tools

Patronage Rewards Patronage Rewards Point-of-Purchase Point-of-Purchase Contests Contests Sweepstakes Sweepstakes Game Game
Cash or other rewards for the use of a Cash or other rewards for the use of a certain product certain product Displays and demonstrations that take Displays and demonstrations that take place at the point of sale place at the point of sale Consumers submit an entry to be judged Consumers submit an entry to be judged Consumers submit their names for a Consumers submit their names for a drawing drawing Presents consumers with something every Presents consumers with something every time they buy time they buy

What is Public Relations?

Public Relations Involves 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.

The Practice of Public Relations

Public relations is a management function that is practiced by a wide range of organizations such as:
companies, governments, trade and professional associations, non-profit organizations, travel and tourism industry, educational systems, labor unions, politicians, organized sports, and the media.

Major Public Relations Functions

Press Relations or Agentry Press Relations or Agentry Product Publicity Product Publicity Public Affairs Public Affairs Lobbying Lobbying Investor Relations Investor Relations Development Development

Public Relations Departments May Perform Any of All of the Following Functions:

Major Public Relations Tools

News Web Site Public Service Activities Corporate Identity Materials Speeches Special Events

Audiovisual Materials

Written Materials

Comparing Public Relations and Advertising

Public Relations Differs From Advertising in Three Public Relations Differs From Advertising in Three Important Ways: Important Ways:

Media Use Media Use Advertising Advertising Pays Pays PR PR Persuades Persuades

Control Control Advertising Advertising More More PR Less PR Less

Credibility Credibility AdvertisingAdvertisingSome Some PR Much PR Much More More