1. Advertising, Sales Promotion, and Public Relations
Chapter 15
Advertising, Sales Promotion, and Public Relations

2. 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.

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

4. Functions of Advertising
Provide Product &
Brand Information
Provide Incentives
To Take Action
Advertising
Performs 3 Basic
Functions
Provide Reminders and
Reinforcement

5. Roles of Advertising Marketing Role Communication Role Economic Role
Marketing is the process a business uses to satisfy consumer needs and wants through goods and services.
Economic Role
Advertising is a form of mass communication.
Societal Role
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.

6. Types of Advertising Interactive Advertising Brand Advertising
Public Service
Advertising
Retail or Local
Advertising
Institutional
Advertising
Political
Advertising
Business-to-
Business
Advertising
Directory
Advertising
Direct-Response
Advertising

7. The Five Ms of Advertising
Mission
Money
Message
Media
Measurement

8. Developing an Advertising Plan
Figure 19-1
Developing an Advertising Plan 3.
Establishing
a budget 4. 2.
Assigning
respon-
sibility
Developing
themes 1.
Setting
objectives 5.
Selecting
media
Feedback 6. 9.
Evaluating
success/
failure
Creating
ads 8. 7.
Considering
cooperative
efforts
Timing
ads 16 16

9. Developing Advertising Strategy: Creating Ad Messages
Plan a Message Strategy
General Message to Be Communicated to Customers
Developing Advertising Strategy: Creating Ad Messages
Develop a Message
Focus on
Customer Benefits
Creative Concept
“Big Idea”
Visualization or Phrase
Combination of Both
Advertising Appeals
Meaningful
Believable
Distinctive

10. Developing Advertising Strategy: Message Execution
Testimonial Evidence
Slice of Life
Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest.
Scientific Evidence
Lifestyle
Typical
Message
Execution
Styles
Technical Expertise
Fantasy
Personality Symbol
Mood or Image
Musical

11. 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
Advertising Strategy: Selecting Advertising Media
Step 3. Selecting Specific Media Vehicles
Specific Media Within a Given Type, i.e. Magazines.
Must Balance Media Cost Against Media Factors:
Audience Quality & Attention, Editorial Quality
Step 4. Deciding on Media Timing
Scheduling of Advertising Over the Course of a Year
Pattern of Ads: Continuity or Pulsing

12. Types of Advertising Media
Broadcast Media
Television
Network, spot,
and cable tv
Radio
Print Media
Newspapers
Magazines
Directories
Out-of-home
Media
Outdoor media
Place-based media
Interactive Media
TV shopping
Computers
FAX ads 5

13. 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.

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

15. How Agencies are Organized
5 Areas of
Importance
Account Management
Internal
Services
Account
Planning
& Research
Creative Development & Production
Media Planning & Buying

16. 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.

17. Sales Promotion Objectives
Increase short-term sales or help build long-term 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.

18. Sales Promotions Advantages Disadvantages Build interest
Dilute brand equity
Bring quick sales bursts
“Poison the well”
Build relationships with
intermediaries
Seem temporary
Influence laggards
Dilute future sales
Keep traffic high
Gather information for
databases 2

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

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

21. What is Public Relations?
Public Relations Involves 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.

22. 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.

23. Major Public Relations Functions
Press Relations or Agentry
Product Publicity
Public Affairs
Lobbying
Investor Relations
Development
Public Relations Departments May Perform Any of All of the Following Functions:

24. Major Public Relations Tools
News
Web Site
Speeches
Public Service Activities
Special Events
Corporate Identity Materials
Written Materials
Audiovisual Materials

25. Comparing Public Relations and Advertising
Public Relations Differs From Advertising in Three
Important Ways:
Media Use
Advertising
Pays PR
Persuades
Control
Advertising –
More
PR – Less
Credibility
Advertising-
Some
PR – Much
More