Presentation on theme: "1 Chapter 15 Advertising, Sales Promotion, and Public Relations."— Presentation transcript:
1 Chapter 15 Advertising, Sales Promotion, and Public Relations
2 What is Advertising? Advertising is Any Paid Form of Nonpersonal Presentation and Promotion of Ideas, Goods, or Services by an Identified Sponsor.
3 Major Advertising Decisions Objectives Setting Communication objectives Sales Objectives Budget Decisions Affordable Approach Percent of sales Competitive parity Objective and task Message Decisions Message Strategy Message Execution Media Decisions Reach, Frequency, Impact Major Media Types Specific Media Types Media Timing Campaign Evaluation Communication Impact Sales Impact
4 Informative Advertising Inform Consumers or Build Primary Demand i.e CD Players Comparison Advertising Compares One Brand to Another i.e. Avis vs. Hertz Persuasive Advertising Build Selective Demand i.e Sony CD Players Reminder Advertising Keeps Consumers Thinking About a Product i.e. Coca-Cola Advertising Objective Specific Communication Task Accomplished with a Specific Target Audience During a Specific Period of Time Setting Advertising Objectives
5 Affordable Based on What the Company Can Afford Objective-and-Task Based on Determining Objectives & Tasks, Then Estimating Costs Objective-and-Task Based on Determining Objectives & Tasks, Then Estimating Costs Percentage of Sales Based on a Certain Percentage of Current or Forecasted Sales Percentage of Sales Based on a Certain Percentage of Current or Forecasted Sales Competitive-Parity Based on the Competitors Promotion Budget Competitive-Parity Based on the Competitors Promotion Budget After Determining Its Advertising Objectives, the Marketer Must Set the Advertising Budget for Each Product and Market. (From Chapter 14) Setting the Promotion Budget
6 Setting the Advertising Budget Factors to be considered when setting the advertising budget: Stage in the product life cycle, Market share, Competition and clutter, Product differentiation.
7 Creating the Advertising Messages Selecting the Advertising Media Advertising Strategy Consists of Two Major Elements and Companies are Realizing the Benefits of Planning These Two Elements Jointly. Developing Advertising Strategy
8 Plan a Message Strategy General Message to Be Communicated to Customers Develop a Message Focus on Customer Benefits Develop a Message Focus on Customer Benefits Creative Concept Big Idea Visualization or Phrase Combination of Both Creative Concept Big Idea Visualization or Phrase Combination of Both Advertising Appeals Meaningful Believable Distinctive Advertising Appeals Meaningful Believable Distinctive Developing Advertising Strategy: Creating Ad Messages
9 Typical Message Execution Styles Testimonial Evidence Slice of Life Scientific Evidence Lifestyle Technical Expertise Fantasy Musical Personality Symbol Mood or Image Turning the Big Idea Into an Actual Ad to Capture the Target Markets Attention and Interest. Developing Advertising Strategy : Message Execution
10 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 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 Advertising Strategy: Selecting Advertising Media
11 Communication Effects Is the Ad Communicating Well? Communication Effects Is the Ad Communicating Well? Advertising Program Evaluation Sales Effects Is the Ad Increasing Sales? Sales Effects Is the Ad Increasing Sales? Evaluating Advertising
12 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.
13 Rapid Growth of Sales Promotion Sales promotion can take the form of consumer promotions, business promotions, trade promotions or sales force promotions. Rapid growth in the industry has been achieved because: Product managers are facing more pressure to increase their current sales, Companies face more competition, Advertising efficiency has declined, Consumers have become more deal oriented.
14 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.
15 Sample Coupons Cash Refunds Price Packs Premiums Advertising Specialties Advertising Specialties Trial amount of a product Savings when purchasing specified products Refund of part of the purchase price Reduced prices marked on the label or package Goods offered free or low cost as an incentive to buy a product Articles imprinted with an advertisers name given as gifts Major Consumer Sales Promotion Tools
16 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 Major Consumer Sales Promotion Tools
17 Trade-Promotion Objectives Persuade Retailers or Wholesalers to Carry a Brand Persuade Retailers or Wholesalers to Carry a Brand Give a Brand Shelf Space Promote a Brand in Advertising Promote a Brand in Advertising Push a Brand to Consumers Major Trade Sales Promotion Tools Trade-Promotion Tools Discounts Allowances
18 Business-Promotion Objectives Generate Business Leads Stimulate Purchases Reward Customers Motivate Salespeople Business-Promotion Tools Conventions Trade Shows Sales Contests Major Business Sales Promotion Tools
19 Decide on the Size of the Incentive Set Conditions for Participation Evaluate the Program Determine How to Promote and Distribute the Promotion Program Determine How to Promote and Distribute the Promotion Program Determine the Length of the Program Developing the Sales Promotion Program
20 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.
21 Press Relations or Agentry Product Publicity Public Affairs Lobbying Investor Relations Development Public Relations Departments May Perform Any of All of the Following Functions: Major Public Relations Functions
22 News Speeches Special Events Written Materials Audiovisual Materials Corporate Identity Materials Public Service Activities Web Site Major Public Relations Tools
23 Setting Public Relations Objectives Choosing the Public Relations Messages and Vehicles Choosing the Public Relations Messages and Vehicles Implementing the Public Relations Plan Evaluating Public Relations Results Major Public Relations Decisions