Advertising, Sales Promotion, and Public Relations

1. Advertising, Sales Promotion, and Public Relations

2. Chapter Objectives • Tell what advertising is and describe the major types of advertising • Describe the process of developing an advertising campaign • Explain how marketers evaluate advertising • Explain what sales promotion is and describe the different types of trade and consumer sales promotion activities • Explain the role of public relations • Describe the steps in developing a public relations campaign

3. Advertising: The Image of Marketing • Advertising: nonpersonal communication paid for by an identified sponsor using mass media to persuade or inform an audience

4. Discussion • Some people say advertising is obnoxious, insults their intelligence, and promotes claims that are untrue. • Others argue it provides value for consumers. --What are some arguments on each side? --How do you feel about advertising?

5. Types of Advertising • Product advertising: focuses on a specific good/service

6. Types of Advertising (cont’d) • Institutional advertising: promotes the activities, personality, or point of view of an organization or company Advocacy advertising (e.g. voting) Public service announcement (PSA) (e.g. safety belt)

7. Types of Advertising (cont’d) • Retail and local advertising: encourages customers to shop at a specific store or use a local service • Do-it-yourself advertising • “Generation C” phenomenon: consumer-generated ad content on the Web

8. Who Creates Advertising? • Advertising campaign: a coordinated, comprehensive plan that carries out promotion objectives and results in a series of ads placed in media over a period of time

9. Who Creates Advertising? (cont’d) • Limited-service agency (media buying, creative development) • Full-service agency • Account management (soul) • Creative services (heart) • Research and marketing services (brain) • Media planning (legs)

10. Figure 13.1: Steps in Developing an Advertising Campaign

11. Steps in Developing an Advertising Campaign • Step 1: Identify the target audiences • Step 2: Establish message and budget objectives • Step 3: Design the Ads • Creative strategy: process that turns a concept into an advertisement

12. Advertising Appeal: Central Idea of the Ad Reasons why: the Unique Selling Proposition (USP) Comparative advertising Demonstration Slice of life Lifestyle

13. Advertising Appeal: Central Idea of the Ad (cont’d) Testimonial Fear appeals Sex appeals Humorous appeals Slogans and jingles

14. Group Activity • As an account team for an advertising agency, your group has been assigned a new line of high- quality, high-priced makeup. • Consider different types of appeals: • USP Comparative advertising • Fear appeal Celebrity endorsement • Slice-of-life ad Sex appeal • Humor • Outline the strengths and weaknesses of each of these appeals for advertising the makeup.

15. Step 4: Pretest What the Ads Will Say • Pretesting: seeks to minimize mistakes by getting consumer reactions to ad messages before they appear in the media • Copy testing: measures effectiveness of ads

16. Step 5: Choose the Media Type(s) and Media Schedule • Media planning: develops media objectives, strategies and tactics • Aperture: is the best place and time to reach the target market

17. Where to Say It: Traditional Media • Television • Radio • Newspapers • Magazines • Directories • Out-of-home media • Place-based media

18. Where to Say It: Internet advertising • Banners • Buttons • Search engine and directory listings • Pop-up ads • Email • Spamming • Permission marketing

19. Discussion • Through TV remotes, DVDs, computers, and cable television, technology gives today’s consumers control over the advertising images they see. • --How has this affected the advertising industry so far? • --How do you think consumer control will affect advertising in the future?

20. Media Scheduling: When To Say It • Media schedule: specifies exact media to use and when to use it • Advertising exposure: defines degree to which the target market will see an advertising message in specific vehicles • Impressions: measures number of people exposed to a message in one or more vehicles

21. Figure 13.3: Media Schedulefor a Video Game

22. Media Scheduling: When To Say It (cont’d) • Reach: measures percentage of target market exposed to media vehicle • Frequency: measures average number of times a person in the target group will be exposed to the message

23. Media Scheduling: When To Say It (cont’d) • Gross rating points (GRPs) = reach X frequency • Cost per thousand (CPM): the cost to deliver a message to 1,000 people

24. Media Scheduling: How Often To Say It • Continuous schedule: puts out steady stream of advertising • Pulsing schedule: varies the amount of advertising • Flighting schedule: puts ads out in short, intense bursts

25. Step 6: Evaluate the Advertising • Posttesting: research on consumers’ responses to advertising they have seen or heard • Unaided recall • Aided recall

26. Sales Promotion • Programs designed to build interest in or encourage purchase of a product during a specified period of time • Deliver short-term sales results • Can target end consumers, channel partners, and/or employees

27. Sales Promotion DirectedToward the Trade: Trade Promotions • Discounts and deals • Merchandising allowances • Case allowances • Forward buying and diverting • Increasing industry visibility • Trade shows • Promotional products • Incentive programs (push money)

28. Sales Promotion DirectedToward Consumers • Price-Based Consumer Sales Promotion • Coupons • Price deals, refunds, and rebates • Frequency (loyalty/continuity) programs • Special/bonus packs

29. Discussion • Companies sometimes teach consumers a “bad lesson” by overusing sales promotion. • As a result, consumers expect the product always to be “on sale.” • --What are some products for which this bad lesson has occurred? • --How can companies prevent it?

30. FREESAMPLES.COM Sales Promotion DirectedToward Consumers (cont’d) • Attention-getting consumer promotion • Contests and sweepstakes • Premiums • Sampling • Point-of-purchase promotion • Product/brand placements • Cross-promotion

31. Group Project • Your group works for a firm producing several brands of household cleaning products. • --Develop recommendations for trade and consumer sales promotion activities for a new laundry detergent • --In a role-playing situation, present and defend your recommendations to your boss.

32. Public Relations • PR: communication function that seeks to build good relationships with an organization’s publics. • Publics include consumers, stockholders, legislators, and other firm stakeholders. • Basic rule of good PR: do something good, then talk about it.

33. Public Relations (cont’d) • Proactive PR activities stem from firm’s marketing objectives. • Publicity: unpaid communication about an organization that gets media exposure. • PR is even more important when firm’s image is at risk due to negative publicity. • PR is responsible for preparing a crisis management plan.

34. Discussion • Some critics denounce PR specialists, calling them “flacks” or “spin doctors” whose job is to hide the truth about a company’s problems • What is the proper role of PR within an organization? • Should PR specialists try to put a good face on bad news?

35. Objectives of Public Relations • Introducing new products to manufacturers • Introducing new products to consumers • Influencing government legislation • Enhancing image of a firm • Enhancing image of a city, region, or country • Calling attention to a firm’s involvement with the community

36. Planning a Public Relations Campaign • A statement of objectives • Situation analysis • Specification of publics, communicated messages, and specific program elements • Timetable and budget • Discussion of program evaluation plan

37. Public Relations Activities • Press releases (timely topics, research project stories, and consumer information releases) • Internal PR • Investor relations • Lobbying • Speech writing • Corporate identity

38. Public Relations Activities (cont’d) • Media relations • Sponsorships • Special events • Buzz-building: word-of-mouth/blogging • Advice and counsel

39. Group Activity • As PR professionals employed by your university, your group must develop strategies for improving your school’s PR program. --Write a memo to your university president with your recommendations.

40. Marketing Plan Exercise • Think about one of the following: • A new brand of toothpaste • Your local city or state • Your university • Outline an advertising campaign for the product and discuss the following: • The type of appeal • The main message • The media (include at least one print and one broadcast medium) • How you’ll develop the ads to share the same look and feel