1. Slide 19-1

2. ADVERTISING, SALES PROMOTION, AND PUBLIC RELATIONS
CHAPTER
ADVERTISING, SALES PROMOTION, AND PUBLIC RELATIONS
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3. AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:
Explain the differences between product advertising and institutional advertising and the variations within each type.
Describe the steps used to develop, execute, and evaluate an advertising program.
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4. AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:
Explain the advantages and disadvantages to alternative advertising media.
Discuss the strengths and weaknesses of consumer-oriented and trade-oriented sales promotions.
Recognize public relations as an important form of communication.
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5. TYPES OF ADVERTISEMENTS
Advertising
Product Advertisements
Pioneering (or Informational)
Competitive (or Persuasive)
Comparative
Reminder
Reinforcement
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6. TYPES OF ADVERTISEMENTS
Institutional Advertisements
Advocacy
Pioneering Institutional
Competitive Institutional
Reminder Institutional
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7. 1. What is the difference between pioneering and competitive ads?
Concept Check
1. What is the difference between pioneering and competitive ads?
A: Pioneering ads tell people what a product is, what it can do, and where it can be found. Competitive ads promote a specific brand’s features and benefits to persuade the target market to select the firm’s brand rather than that of a competitor.
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8. 2. What is the purpose of an institutional advertisement?
Concept Check
2. What is the purpose of an institutional advertisement?
A: To build goodwill or an image for an organization.
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9. DEVELOPING THE ADVERTISING PROGRAM
Identifying the Target Audience
Specifying Advertising Objectives
Setting the Advertising Budget
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10. FIGURE 19-1 Super Bowl, super dollars, super audience
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11. DEVELOPING THE ADVERTISING PROGRAM
Designing the Advertisement
Message Content
Fear Appeals
Sex Appeals
Humorous Appeals
Creating the Actual Message
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12. ETHICS AND SOCIAL RESPONSIBILITY ALERT
Who Decides What Is “Appropriate” Advertising?
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13. FIGURE 19-A Top 15 advertising slogans of the century
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14. FIGURE 19-B Top 10 advertising icons of the century
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15. 1. What are characteristics of good advertising objectives?
Concept Check
1. What are characteristics of good advertising objectives?
A: The same guidelines used for setting promotion objectives described in Chapter 18: They should (1) be designed for a well-defined target audience, (2) be measurable, and (3) cover a specified time period.
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16. 2. What is a potential shortcoming of using a celebrity spokesperson?
Concept Check
2. What is a potential shortcoming of using a celebrity spokesperson?
A: The spokesperson’s image may change to be inconsistent with the image of the company or brand.
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17. DEVELOPING THE ADVERTISING PROGRAM
Selecting the Right Media
Advertising Media
Choosing a Medium and a Vehicle within That Medium
Maximizing Exposure
Minimizing Costs
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18. FIGURE 19-2 U.S. advertising expenditures, by category (in millions of dollars)
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19. DEVELOPING THE ADVERTISING PROGRAM
Selecting the Right Media
Basic Terms
Reach
Rating
Frequency
Gross Rating Points (GRPs)
Cost per Thousand (CPM)
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20. FIGURE 19-3 The language of the media buyer
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21. DEVELOPING THE ADVERTISING PROGRAM
Different Media Alternatives
Television
Out-of-Home TV
“Spot” Ads
Wasted Coverage
Digital Video Recorders (DVRs)
Infomercials
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22. FIGURE 19-4 Advantages and disadvantages of major advertising media
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23. Ronco Infomercials What are the advantages and disadvantages of this medium?
Click on Icon
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24. DEVELOPING THE ADVERTISING PROGRAM
Different Media Alternatives
Radio
Magazines
Newspapers
Yellow Pages
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25. DEVELOPING THE ADVERTISING PROGRAM
Different Media Alternatives
Internet
Rich Media
Online Advertising Options
Permission-Based Advertising
Slide 19-59

26. Does Internet Advertising Really Work?
MARKETING NEWSNET
Does Internet Advertising Really Work?
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27. DEVELOPING THE ADVERTISING PROGRAM
Different Media Alternatives
Outdoor
Billboards
Transit Advertising
Other Media
Place-Based Media
Selection Criteria
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28. DEVELOPING THE ADVERTISING PROGRAM
Scheduling the Advertising
Buyer Turnover
Purchase Frequency
Forgetting Rate
Continuous (Steady) Schedule
Flighting (Intermittent) Schedule
Pulse (Burst) Schedule
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29. Concept Check
1. You see the same ad in Time and Fortune magazines and on billboards and TV. Is this an example of reach or frequency?
A: frequency
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30. 2. Why has the Internet become a popular advertising medium?
Concept Check
2. Why has the Internet become a popular advertising medium?
A: The Internet offers a visual message, can use both audio and video, is interactive through rich media, and tends to reach younger consumers.
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31. Concept Check
3. What factors must be considered when choosing among alternative media?
A: The media habits of the target audience, the product’s attributes, and the reach and cost, as measured by CPM.
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32. EXECUTING THE ADVERTISING PROGRAM
Pretesting the Advertising
Portfolio Tests
Jury Tests
Theater Tests
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33. EXECUTING THE ADVERTISING PROGRAM
Carrying Out the Advertising Program
Full-Service Agency
Limited-Service Agencies
In-House Agencies
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34. FIGURE 19-5 Alternative structures of advertising agencies used to carry out the advertising program
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35. EVALUATING THE ADVERTISING PROGRAM
Posttesting the Advertising
Aided Recall (Recognition-Readership)
Unaided Recall
Attitude Tests
Inquiry Tests
Sales Tests
Making Needed Changes
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36. Concept Check
1. Explain the difference between pretesting and posttesting advertising copy.
A: Pretests are conducted before ads are placed in any medium to determine whether the ads communicate the intended message or select among alternative versions. Posttests are shown to the target audience to determine whether it accomplished its intended purpose.
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37. 2. What is the difference between aided and unaided recall posttests?
Concept Check
2. What is the difference between aided and unaided recall posttests?
A: Aided recall involves showing an ad to respondents who then are asked if their previous exposure to it was through reading, viewing, or listening. Unaided recall involves asking respondents if they remember an ad without any prompting to determine if they saw or heard its message.
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38. Consumer-Oriented Sales Promotion
Coupons
Deals
Premiums
Self-Liquidating
Contests
Sweepstakes
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39. FIGURE 19-6 Sales promotion alternatives
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40. Consumer-Oriented Sales Promotion
Samples
Loyalty Programs
Point-of-Purchase Displays
Rebates
Product Placement
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41. Trade-Oriented Sales Promotion
Allowances and Discounts
Merchandise Allowance
Case Allowance
Finance Allowance
Cooperative Advertising
Training of Distributors’ Salesforces
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42. 1. Which sales promotional tool is most common for new products?
Concept Check
1. Which sales promotional tool is most common for new products?
A: sales promotion
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43. 2. What’s the difference between a coupon and a deal?
Concept Check
2. What’s the difference between a coupon and a deal?
A: A coupon provides a reduced price for an item based on redemption. A deal is a short-term price reduction.
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44. 3. Which trade promotion is used on an ongoing basis?
Concept Check
3. Which trade promotion is used on an ongoing basis?
A: trade allowance
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45. PUBLIC RELATIONS Publicity Tools News Release News Conference
Public Service Announcements (PSAs)
Personal Appearance/Visibility
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46. INCREASING THE VALUE OF PROMOTION
Building Long-Term Relationships with Promotion
Self-Regulation
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47. Concept Check
1. What is a news release?
A: An announcement regarding changes in the company or the product line.
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48. Concept Check
2. What is the difference between government regulation and self-regulation?
A: Government regulation involves laws or other controls set by an agency of local, state, or federal government, whereas self-regulation involves ethical guidelines for business practices set by advertising agencies, trade associations, and marketing organizations.
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49. ADVERTISING ON THE INTERNET
GOING ONLINE
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50. Going Online
1. Visit the Interactive Advertising Bureau website and review the “Standards and Guidelines” section to determine what type of online ad you would recommend. How many types of (a) rectangles and pop-ups, (b) banners and buttons, and (c) skyscrapers does the IAB specify?
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51. 2. Describe the profile of the audience for each of the websites.
Going Online
2. Describe the profile of the audience for each of the websites.
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52. Going Online
3. What does the IAB suggest you include in your online advertising privacy policy?
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53. A HISTORICAL LOOK AT ADVERTISING SUPPLEMENTAL LECTURE NOTE 19-1
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54. SHOULD ADVERTISERS BELIEVE TV RATINGS? SUPPLEMENTAL LECTURE NOTE 19-2
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55. ONLINE ADVERTISING TAKES OFF! SUPPLEMENTAL LECTURE NOTE 19-3
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56. SUPPLEMENTAL LECTURE NOTE 19-4
A HISTORICAL LOOK AT THE OBJECTIVES OF SALES PROMOTIONS
SUPPLEMENTAL LECTURE NOTE 19-4
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57. ARE YOU A LOYAL CUSTOMER? SUPPLEMENTAL LECTURE NOTE 19-5
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58. FALLON WORLDWIDE: IN THE CREATIVITY BUSINESS
VIDEO CASE 19
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59. VIDEO CASE 19
Fallon Worldwide
1. Fallon Worldwide stresses its creativity, as shown by comments from the Fallon people in the case. In what ways do the Citi and BMW campaigns reflect their creativity? Compare the sources of the ideas in the two campaigns.
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60. VIDEO CASE 19
Fallon Worldwide
2. In the Citi and BMW campaigns how were (a) the target markets and (b) each brand’s positioning changed from the situation prior to the campaign?
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61. VIDEO CASE 19
Fallon Worldwide
3. Compare the media used for the Citi and BMW campaigns. Why were these media chosen? Do you expect the use of these or other media to change in the future?
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62. VIDEO CASE 19
Fallon Worldwide
4. How might Fallon and its clients measure the success of (a) the Citi and (b) the BMW campaigns?
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63. VOLKSWAGEN: THE DRIVERS WANTED CAMPAIGN
APPENDIX D CASE D-19
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64. APPENDIX D CASE D-19
Volkswagen
1. What were the primary promotional objectives for Volkswagen at the beginning of the “Drivers Wanted” campaign? What are Volkswagen’s current promotional objectives? How do you expect the promotional objectives for the overall Volkswagen brand and for specific car models, such as the Jetta or Touareg, to change over time?
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65. APPENDIX D CASE D-19
Volkswagen
2. What do you feel are the most valid measures for assessing the success of the Volkswagen advertising campaign? Explain why you feel that these are the best means of determining effectiveness.
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66. APPENDIX D CASE D-19
Volkswagen
3. Volkswagen’s promotional program has heavily emphasized a pull promotional strategy versus a push promotional strategy. Why? Is this emphasis likely to change over time?
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67. Advertising
Advertising is any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor.
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68. Product Advertisements
Product advertisements are advertisements that focus on selling a good or service and which take three forms: (1) pioneering (or informational), (2) competitive (or persuasive), and (3) reminder.
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69. Institutional Advertisements
Institutional advertisements are advertisements designed to build goodwill or an image for an organization rather than promote a specific good or service.
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70. Reach
Reach is the number of different people or households exposed to an advertisement.
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71. Rating
A rating is the percentage of households in a market that are tuned to a particular TV show or radio station.
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72. Frequency
Frequency is the average number of times a person in the target audience is exposed to a message or an advertisement.
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73. Gross Rating Points
Gross rating points (GRPs) is a reference number used by advertisers that is obtained by multiplying reach (expressed as a percentage of the total market) by frequency.
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74. Cost per Thousand
Cost per thousand (CPM) is the cost of reaching 1,000 individuals or households with the advertising message in a given medium (M is the Roman numeral for 1,000).
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75. Infomercials
Infomercials are program-length (30-minute) advertisements that take an educational approach to communication with potential customers.
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76. Pretests
Pretests are tests conducted before the advertisements are placed in any medium to determine whether it communicates the intended message or to select among alternative versions of the advertisement.
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77. Full-Service Agency
A full-service agency is an advertising agency that provides the most complete range of services, including market research, media selection, copy development, artwork, and production.
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78. Limited-Service Agencies
Limited-service agencies are advertising agencies that specialize in one aspect of the advertising process such as providing creative services to develop the advertising copy or buying previously unpurchased media space.
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79. In-House Agencies
In-house agencies consists of the company’s own advertising staff, which may provide full services or a limited range of services.
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80. Posttests
Posttests are tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose.
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81. Consumer-Oriented Sales Promotions
Consumer-oriented sales promotions are sales tools used to support a company’s advertising and personal selling directed to ultimate consumers.
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82. Product Placement
Product placement is a sales promotion tool that uses a brand-name product in a movie, television show, video, or a commercial for another product.
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83. Trade-Oriented Sales Promotions
Trade-oriented sales promotions are a Sales tools used to support a company’s advertising and personal selling directed to wholesalers, distributors, or retailers. Also called trade promotions.
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84. Cooperative Advertising
Cooperative advertising consists of advertising programs by which a manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturer’s products.
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85. Publicity Tools
Publicity tools consist of methods of obtaining nonpersonal presentation of an organization, good, or service without direct cost. Examples include news releases, news conferences, and public service announcements.
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