advertising, public relations, and sales promotions seventeen advertising, public relations, and sales promotions Chapter 17 – Advertising, Public Relations, and Sales Promotions McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

Advertising, Public Relations, and Sales Promotions LO1 Describe the steps in designing and executing an advertising campaign. LO2 Identify three objectives of advertising. LO3 Describe the different ways that advertisers appeal to consumers. LO4 Identify the various types of media. LO5 Identify agencies that regulate advertising. LO6 Describe the elements of a public relations toolkit. LO7 Identify the various types of sales promotions. These are the learning objectives for this chapter. 17-2

Steps in Planning and Executing an Ad Campaign This will be covered in the following slides. This web link is for Ad Age – it is interesting to visit the site and have students see current issues in advertising. Advertising Age Website 17-3

Set Advertising Objectives Pull strategy Push strategy The advertising plan must be specific to the identified target audience and include the strategic objectives and tactics to be used. Group activity: Develop an advertising plan for a product you like. What are the objectives of the campaign? How are you going to accomplish those objectives? How will you measure the campaign’s success? ©Comstock/PunchStock ©Brand X Pictures/PunchStock 17-4

Advertising Objectives Inform Persuade Remind An advertising campaign has three broad objectives: inform, persuade, or remind the target audience. 17-5

Focus of Advertisements Institutional advertisements Product-focused advertisements Most advertising is product focused. However, companies like Exxon-Mobile advertise their commitment to the environment, not their products, to inform, persuade, and remind consumers of positive thoughts about the company, which can prompt the purchase of products and services. Ask students: Why might Exxon be particularly interested in institutional advertising? Oil and Gas companies are often accused of engaging in practices that are harmful to the environment. Therefore it is important for the firm to stress that they are an environmentally responsible firm to negate some of this criticism. ©2000 Image 100 Ltd 17-6

Determining Advertising Budget Considerations: Role that advertising plays in their attempt to meet their overall promotional objectives Expenditures vary over the course of the Product Life Cycle Nature of the market and the product influence the size of the budget Setting the promotional budget is not easy, and advertising often is the largest single expenditure in the promotional budget. Thus, firms must carefully weigh the benefits of advertising versus other communications when deciding how much to allocate. 17-7

Unique selling proposition (USP) Convey the Message Unique selling proposition (USP) Red Bull . . . Gives You Wings United Negro College Fund . . . A mind is a terrible thing to waste. Nike . . . Just Do It. State Farm Insurance . . . Like a good neighbor, State Farm is there TNT . . . We know drama The USP (unique selling proposition) concept conveys core benefits to the target audience. The best USPs stand the test of time; consider examples such as those on the slide. Ask students: do you believe these will stand the test of time? Nokia has been using “connecting people” for a long time; however Verizon tends to change and is currently using “It’s the Network” 17-8

The Appeal Informational appeal Emotional appeal Appeals depend on the target audience, chosen media, and type of product/service. Each appeal persuades in different ways. Whereas informational appeals are more cognitive and persuade using rational thought, emotional appeals persuade by triggering an emotional response rather than offering rational arguments. Ask students: how do the two Kleenex ads vary in their type of appeal and how well does each match the product? Which would make you purchase Kleenex? ©Procter & Gamble ©Procter & Gamble Emotional appeal 17-9

Evaluate and Select Media ©Photodisc/Getty Images The McGraw-Hill Companies, Inc/John Flournoy, photographer Ryan McVay/Getty Images Photodisc/Getty Images Media planning Media mix Media buy The ability of any one media outlet to reach a mass audience is declining due to the fragmentation of media and the proliferation of new media outlets. This trend represents a double-edged sword, because fragmenting media have also allowed for very fine targeting in media buys. 17-10

Choosing the Right Medium Ask students: What media do you use and under what circumstances do you use them? For example, do you listen to the radio while driving in your car or watch television when you get home at night? Use these lists to discuss how the usage context of each medium affects how marketers design messages for them. For example most people listen to radio in their cars, often by themselves. Radio is considered a more personal medium, thus marketers often use ads that employ dialogues. This allows the person to place themselves in the conversation. This same technique cannot be used in print.   17-11

Determine the Advertising Schedule Continuous Pulsing Flighting Every advertising campaign has a set duration, and during that period, marketers must determine how often and when to show the ads. Ask students: In a media buy when would each strategy be employed? For a frequently purchased good such as soda, most firms use a continuous strategy. A flighting schedule is often used for seasonal goods since they are only advertised during certain times of the year. A pulsing schedule is used by firms who have certain fluctuations in their demand and need to increase advertising during the periods of high or low demand. ©Procter & Gamble 17-12

Assess Impact Using Marketing Metrics Pretesting Tracking Protesting Group activity: Your group has been assigned to assess the impact of a campaign for a new perfume. The goal of the campaign is to increase awareness of the brand within a chosen target market by 20% over the campaign. What measures would you need to take to ensure that the campaign is remaining on track? Answer: You could design a tracking study that measures sales, website visits and sample requests generated over the course of the campaign. You also might measure awareness levels of the target market at various stages of the campaign. 17-13

Regulatory and Ethical Issues in Advertising Advertising regulation exists on federal, state, and local levels and a host of self-regulatory agencies oversee various forms of advertising. Unlike in many European countries, puffery is legal in the United States. Generally these claims are so outrageous that no rational consumer would believe them 17-14

Public Relations Companies involved with cause related marketing often generate a lot of PR. Ask students if they can think of any events or companies they see advertised on the news, in the papers, or written about in websites. This web link is for TOMS shoes which is discussed in the chapter. TOMS Shoes Website 17-15

Types of Sales Promotion Sales promotions occur either in conjunction with an advertising campaign or as a stand-alone component of a marketing communications plan. In either case, they must be consistent with the brand image. Asks students which ones they think are the most effective and why? Ask them which ones they have used in the past week? Month? 17-16

Evaluated Sales Promotions using Marketing Metrics Realized margin Cost of additional inventory Potential increase in sales Long-term impact Potential loss from switches from more profitable items Additional sales by customers Many sales promotion opportunities undertaken by retailers are initiated by manufacturers. 17-17

Glossary An advertising plan is a subsection of the firm’s overall marketing plan that explicitly analyzes the marketing and advertising situation, identifies the objectives of the advertising campaign, clarifies a specific strategy for accomplishing those objectives, and indicates how the firm can determine whether the campaign was successful. An advertising plan is a subsection of the firm’s overall marketing plan that explicitly analyzes the marketing and advertising situation, identifies the objectives of the advertising campaign, clarifies a specific strategy for accomplishing those objectives, and indicates how the firm can determine whether the campaign was successful. 17-18

Glossary A continuous advertising schedule runs steadily throughout the year and therefore is suited to products and services that are consumed continually at relatively steady rates and that require a steady level of persuasive and/or reminder advertising. A continuous advertising schedule runs steadily throughout the year and therefore is suited to products and services that are consumed continually at relatively steady rates and that require a steady level of persuasive and/or reminder advertising. 17-19

Glossary A flighting advertising schedule is implemented in spurts, with periods of heavy advertising followed by periods of no advertising. A flighting advertising schedule is implemented in spurts, with periods of heavy advertising followed by periods of no advertising. 17-20

Glossary Institutional advertisements inform, persuade, and remind consumers about issues related to places, politics, an industry, or a particular corporation. Institutional advertisements inform, persuade, and remind consumers about issues related to places, politics, an industry, or a particular corporation. 17-21

Glossary Media buy is the actual purchase of airtime or print pages. 17-22

Glossary The media mix is the combination of the media used and the frequency of advertising in each medium. The media mix is the combination of the media used and the frequency of advertising in each medium. 17-23

Glossary Media planning is the process of evaluating and selecting the media mix that will deliver a clear, consistent, compelling message to the intended audience. Media planning is the process of evaluating and selecting the media mix that will deliver a clear, consistent, compelling message to the intended audience. 17-24

Glossary Product-focused advertisements focus on informing, persuading, or reminding customers about a specific product or service. Product-focused advertisements focus on informing, persuading, or reminding customers about a specific product or service. 17-25

Glossary Public service advertising (PSA) focuses on public welfare and generally is sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups. Public service advertising (PSA) focuses on public welfare and generally is sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups. 17-26

Glossary A pull strategy is a strategy in which the goal is to get consumers to pull the product into the supply chain by demanding it. A pull strategy is a strategy in which the goal is to get consumers to pull the product into the supply chain by demanding it. 17-27

Glossary A pulsing advertising schedule combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods. A pulsing advertising schedule combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods. 17-28

Glossary A push strategy is designed to increase demand by focusing on wholesalers, distributors, or sales people. A push strategy is designed to increase demand by focusing on wholesalers, distributors, or sales people. 17-29