1. Advertising, Sales Promotion, and Public Relations

2. Chapter Objectives Define advertising types of advertising
advertising campaigns
evaluating advertising

3. Chapter Objectives sales promotion trade and consumer sales promotions
public relations
public relations campaigns

4. Advertising: The Image of Marketing
nonpersonal communication
paid for by an identified sponsor
using mass media
to persuade or inform an audience
EXTREME MAKEOVER:
HOME EDITION

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
Public service announcement (PSA)
ROCK THE VOTE

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
results in a series of ads
placed in media
over a period of time
LEO BURNETT WORLDWIDE

9. Who Creates Advertising?
Limited-service agency
Full-service agency
Account management
Creative services
Research and marketing services
Media planning
Motorola Video

10. Figure 13.1: Steps for Advertising Campaigns

11. Steps in Developing an Advertising Campaign
Identify the target audiences
Step 2:
Establish message objectives
budget objectives

12. Steps in Developing an Advertising Campaign
Step 3: Design the Ads
Creative strategy:
process that turns a concept into an advertisement

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

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

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 Types 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
Spamming
Permission marketing

19. 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

20. Media Scheduling: When To Say It
Impressions:
measures number of people
exposed to a message
in one or more vehicles

21. Figure 13.3: Media Schedule for a Video Game

22. Media Scheduling: When To Say It (cont’d)
Reach:
measures % 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
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
Post-testing:
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 Directed Toward the Trade: Trade Promotions
Discounts and deals
Merchandising allowances
Case allowances
Increasing industry visibility
Trade shows
Promotional products
Incentive programs (push money)

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

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

30. Public Relations PR: Publics include Basic rule of good 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.

31. 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.

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

33. 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

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

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

36. THE END

37. Real People, Real Choices
BzzAgent, Inc. (Joe Chernov)
Negative articles questioned “disclosure” in word-of-mouth marketing campaigns
What public relations strategy to use to respond to the criticism?
Option 1: take charge of the discussion.
Option 2: defend without being defensive.
Option 3: go quiet.
BZZAGENT.COM

38. Real People, Real Choices
BzzAgent, Inc. (Joe Chernov)
Joe chose option 1: take charge of the discussion.
BzzAgent issued a press release announcing it had enhanced its disclosure policy, becoming the first company to enforce compliance with disclosure policies.

39. 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?

40. Discussion
Chevy found that DIY advertising programs can sometimes backfire when consumers created anti-SUV TV commercials.
--Should companies avoid DIY campaigns?
--What are the benefits of DIY advertising?

41. 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.

42. Discussion
When Internet travel company Hotels.nl began using blankets on sheep for advertising, one town fined the company for ignoring a ban on advertising along the highways.
--What are the positive and negative aspects for companies of using sheep, or even horses and cows, to advertise products? For consumers?

43. 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?

44. 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?

45. 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.

46. 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?

47. 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.

48. Marketing in Action Case: You Make the Call
What is the decision facing Amazon?
What factors are important in understanding this decision situation?
What are the alternatives?
What decision(s) do you recommend?
What are some ways to implement your recommendation?

49. Keeping It Real: Fast-Forward to Next Class, Decision Time at IBM
Meet Esther Ferre, a General Manager at IBM.
IBM sales teams are responsible for IBM relationships with clients and are evaluated on maximizing revenue and profits.
The decision: How to allocate resources across a broad customer base?

50. 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