Presentation on theme: "Advertising, Sales Promotion, and Public Relations"— Presentation transcript:
1 Advertising, Sales Promotion, and Public Relations Chapter 15Advertising, 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 Message DecisionsMessage StrategyMessage ExecutionObjectives SettingCommunication objectivesSales ObjectivesBudget DecisionsAffordable ApproachPercent of salesCompetitive parityObjective and taskCampaign EvaluationCommunication ImpactSales ImpactMedia DecisionsReach, Frequency, ImpactMajor Media TypesSpecific Media TypesMedia Timing
4 Setting Advertising Objectives Informative AdvertisingInform Consumers orBuild Primary Demandi.e CD PlayersPersuasive AdvertisingBuild Selective Demandi.e Sony CD PlayersAdvertising ObjectiveSpecific Communication TaskAccomplished with a SpecificTarget AudienceDuring a Specific Period of TimeComparison AdvertisingCompares One Brand toAnotheri.e. Avis vs. HertzReminder AdvertisingKeeps Consumers ThinkingAbout a Producti.e. Coca-Cola
5 Setting the Promotion Budget After Determining Its Advertising Objectives, the Marketer Must Set the Advertising Budget for Each Product and Market. (From Chapter 14)AffordableBased on What theCompany Can AffordObjective-and-TaskBased on DeterminingObjectives & Tasks, ThenEstimating CostsPercentage of SalesBased on a Certain Percentageof Current or Forecasted SalesCompetitive-ParityBased on the Competitor’sPromotion 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 Developing Advertising Strategy Advertising Strategy Consists of Two Major Elements and Companies are Realizing the Benefits of Planning These Two Elements Jointly.Creating the AdvertisingMessagesSelecting the Advertising Media
8 Developing Advertising Strategy: Creating Ad Messages Plan a Message StrategyGeneral Message to Be Communicated to CustomersDeveloping Advertising Strategy: Creating Ad MessagesDevelop a MessageFocus onCustomer BenefitsCreative Concept“Big Idea”Visualization or PhraseCombination of BothAdvertising AppealsMeaningfulBelievableDistinctive
9 Developing Advertising Strategy: Message Execution Testimonial EvidenceSlice of LifeTurning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest.Scientific EvidenceLifestyleTypicalMessageExecutionStylesTechnical ExpertiseFantasyPersonality SymbolMood or ImageMusical
10 Advertising Strategy: Selecting Advertising Media Step 1. Decide on Reach, Frequency,and ImpactStep 2. Choosing Among Major Media TypesMedia Habits of Target Consumers,Nature of the Product, Types of Message, CostAdvertising Strategy: Selecting Advertising MediaStep 3. Selecting Specific Media VehiclesSpecific Media Within a Given Type, i.e. Magazines.Must Balance Media Cost Against Media Factors:Audience Quality & Attention, Editorial QualityStep 4. Deciding on Media TimingScheduling of Advertising Over the Course of a YearPattern of Ads: Continuity or Pulsing
11 Evaluating Advertising Advertising Program EvaluationEvaluating AdvertisingCommunication EffectsIs the Ad Communicating Well?Sales EffectsIs the Ad Increasing Sales?
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, andbuy product ahead.In general, sales promotion should focus on consumer relationship building.
15 Major Consumer Sales Promotion Tools SampleTrial amount of a productCouponsSavings when purchasing specified productsCash RefundsRefund of part of the purchase pricePrice PacksReduced prices marked on the label or packagePremiumsGoods offered free or low cost as an incentive to buy a productAdvertisingSpecialtiesArticles imprinted with an advertiser’s name given as gifts
16 Major Consumer Sales Promotion Tools Patronage RewardsPoint-of-PurchaseContestsSweepstakesGameCash or other rewards for the use of a certain productDisplays and demonstrations that take place at the point of saleConsumers submit an entry to be judgedConsumers submit their names for a drawingPresents consumers with something every time they buy
17 Major Trade Sales Promotion Tools Trade-Promotion ObjectivesPersuade Retailers orWholesalers to Carry a BrandGive a Brand Shelf SpacePromote a Brand inAdvertisingPush a Brand to ConsumersTrade-Promotion ToolsDiscountsAllowances
18 Major Business Sales Promotion Tools Business-Promotion ObjectivesGenerate Business LeadsStimulate PurchasesReward CustomersMotivate SalespeopleBusiness-Promotion ToolsConventionsTrade ShowsSales Contests
19 Developing the Sales Promotion Program Decide on the Size of the IncentiveSet Conditions for ParticipationDeveloping the Sales Promotion ProgramDetermine How to Promote andDistribute the Promotion ProgramDetermine the Length of the ProgramEvaluate the Program
20 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.
21 Major Public Relations Functions Press Relations or AgentryProduct PublicityPublic AffairsLobbyingInvestor RelationsDevelopmentPublic Relations Departments May Perform Any of All of the Following Functions:
22 Major Public Relations Tools NewsWeb SiteSpeechesPublic Service ActivitiesSpecial EventsCorporate Identity MaterialsWritten MaterialsAudiovisual Materials
23 Major Public Relations Decisions Setting Public Relations ObjectivesChoosing the Public Relations Messagesand VehiclesImplementing the Public Relations PlanEvaluating Public Relations Results
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