Chapter 13 Ver 2e1 ©2000 South-Western College Publishing Advertising, Sales Promotion and Public Relations

Chapter 13 Ver 2e2 Chapter 13 Objectives ©2000 South-Western College Publishing 1.Discuss the effect advertising has on market share, consumers, brand loyalty, and perception of product attributes. 2.Identify the major types of advertising. 3.Describe the advertising campaign process. 4.Describe media evaluation and selection techniques. (continued) 1.Discuss the effect advertising has on market share, consumers, brand loyalty, and perception of product attributes. 2.Identify the major types of advertising. 3.Describe the advertising campaign process. 4.Describe media evaluation and selection techniques. (continued)

Chapter 13 Ver 2e3 Chapter 13 Objectives ©2000 South-Western College Publishing 5.Define and state the objectives of sales promotion. 6.Discuss the most common forms of consumer sales promotion. 7.List the most common forms of trade sales promotion. 8.Discuss the role of public relations in the promotional mix. 5.Define and state the objectives of sales promotion. 6.Discuss the most common forms of consumer sales promotion. 7.List the most common forms of trade sales promotion. 8.Discuss the role of public relations in the promotional mix.

Chapter 13 Ver 2e4 ©2000 South-Western College Publishing Effects of Advertising Advertising and the Consumer Average U.S. citizen is exposed to hundreds of ads each day. Advertising may change a person’s negative attitude. Advertising and Brand Loyalty Consumers with high brand loyalty are least susceptible to competitive ads. Ads reinforce positive attitudes. Advertising and Product Attributes Advertising can affect a consumer’s rank of brand attributes. Advertising and Market Share New brands spend proportionately more for advertising than old ones. Beyond a certain level, diminishing returns set in.

Chapter 13 Ver 2e5 Major Types of Advertising ©2000 South-Western College Publishing The Public Customers TypesofAdvertisingTypesofAdvertising Pioneering Competitive Comparative Product Advertising Product Advertising Institutional Advertising Institutional Advertising Investment Community Employees

Chapter 13 Ver 2e6 Product Advertising ©2000 South-Western College Publishing PioneeringPioneering Stimulates primary demand for new product or category CompetitiveCompetitive Influence demand for brand in the growth phase of the PLC. Often uses emotional appeal. ComparativeComparative Compares two or more competing brands’ product attributes. Used if growth is sluggish, or if competition is strong.

Chapter 13 Ver 2e7 ©2000 South-Western College Publishing Steps in Creating an Advertising Campaign Determine the campaign objectives. Make creative decisions. Make media decisions. Evaluate the campaign.

Chapter 13 Ver 2e8 Make Creative Decisions  “Sell the Sizzle, not the Steak”  Sell product’s benefits, not features  A benefit should answer “What’s in it for me?”  Ask “So?” to determine if a benefit Identify Product Benefits Identify Product Benefits ©2000 South-Western College Publishing

Chapter 13 Ver 2e9 Common Advertising Appeals ©2000 South-Western College Publishing Profit Health Love or romance Fear Admiration Convenience Fun and pleasure Vanity and egotism Environmental Consciousness Environmental Consciousness Product saves, makes, or protects money Appeals to body-conscious or health seekers Used in selling cosmetics and perfumes Social embarrassment, old age, losing health Reason for use of celebrity spokespeople Used for fast foods and microwave foods Key to advertising vacations, beer, parks Used for expensive or conspicuous items Centers around environmental protection

Chapter 13 Ver 2e10 ©2000 South-Western College Publishing Execute the Message Mood or Image Musical Demon- stration Demon- stration Scientific Real/ Animated Product Symbols Real/ Animated Product Symbols Fantasy Lifestyle Slice-of-Life Humorous CommonExecutionalStylesCommonExecutionalStyles Spokes- person/ Testimonial

Chapter 13 Ver 2e11 Newspapers Magazines Radio Television Outdoor Internet Alternative Media Major Types ofAdvertisingMedia ofAdvertisingMedia ©2000 South-Western College Publishing Make Media Decisions

Chapter 13 Ver 2e12 National Ad Spending for Media ©2000 South-Western College Publishing Magazines Newspapers Outdoor Television Radio Yellow Pages Internet

Chapter 13 Ver 2e13 ©2000 South-Western College Publishing Newspapers AdvantagesAdvantagesDisadvantagesDisadvantages  Year-round readership  Geographic selectivity  Immediacy  High individual market coverage  Short lead time  Limited demographic selectivity  Little color  May be expensive  Low pass-along rate  Clutter  Mass market medium

Chapter 13 Ver 2e14 ©2000 South-Western College Publishing Magazines AdvantagesAdvantagesDisadvantagesDisadvantages  Good reproduction  Demographic selectivity  Regional/local selectivity  Long advertising life  High pass-along rate  Higher cost per contact  Long-term advertiser commitments  Slow audience build-up  Limited demonstration capabilities  Lack of urgency  Long lead time

Chapter 13 Ver 2e15 ©2000 South-Western College Publishing Radio AdvantagesAdvantagesDisadvantagesDisadvantages  Selectivity and audience segmentation  Immediate and portable  Geographic flexibility  Entertainment carryover  Short-term ad commitments  No visual treatment  Short advertising life  High frequency to generate retention  Commercial clutter  Background distractions

Chapter 13 Ver 2e16 ©2000 South-Western College Publishing Television AdvantagesAdvantagesDisadvantagesDisadvantages  Wide diverse audience  Low cost per thousand  Creative and demonstrative  Immediacy of messages  Entertainment carryover  Demographic selectivity with cable stations  Short life of message  Expensive with high campaign cost  Little demographic selectivity with network  Long-term advertiser commitments  Long lead times  Clutter

Chapter 13 Ver 2e17 ©2000 South-Western College Publishing Outdoor Media AdvantagesAdvantagesDisadvantagesDisadvantages  High exposure frequency  Moderate cost  Flexibility  Geographic selectivity  Broad, diverse market  Short message  Lack of demographic selectivity  High “noise” level

Chapter 13 Ver 2e18 ©2000 South-Western College Publishing Internet and World Wide Web AdvantagesAdvantagesDisadvantagesDisadvantages  Fast growing  Ability to reach narrow target audience  Short lead time  Moderate cost  Difficult to measure ad effectiveness and ROI  Ad exposure relies on “click through”  Not all consumers have access to internet

Chapter 13 Ver 2e19 ©2000 South-Western College Publishing Alternative Media Ads in Movies and Videos Ads in Movies and Videos Interactive Kiosks Computer Screen Savers Computer Screen Savers Video Shopping Carts Fax Machines Examples of Alternative Media Examples of Alternative Media

Chapter 13 Ver 2e20 Media Selection Considerations ©2000 South-Western College Publishing Cost per Contact Factors Influencing Media Mix Decisions Factors Influencing Media Mix Decisions Reach Frequency Audience Selectivity

Chapter 13 Ver 2e21 Types of Media Schedules Types of Media Schedules Continuous Media Schedule Flighted Media Schedule Pulsing Media Schedule Seasonal Media Schedule ©2000 South-Western College Publishing Media Scheduling

Chapter 13 Ver 2e22 ©2000 South-Western College Publishing Sales Promotion Consumer Sales Promotion Trade Sales Promotion Trade Sales Promotion Targets Targets

Chapter 13 Ver 2e23 Sales Promotion Immediate Purchases Increase Trial Boost consumer inventory Encourage repurchase Increase ad effectiveness Encourage brand switching Objectivesof Sales Promotion Objectivesof Encourage brand loyalty ©2000 South-Western College Publishing

Chapter 13 Ver 2e24 Coupons and Rebates Premiums Loyalty Marketing Programs Contests & Sweepstakes Sampling Point-of-Purchase Promotion Popular Tools for Consumer Sales Promotion Popular Tools for Consumer Sales Promotion Tools for Consumer Sales Promotion ©2000 South-Western College Publishing

Chapter 13 Ver 2e25 Consumers & Sales Promotion Goals ©2000 South-Western College Publishing Type of Buyer Loyal Customers Competitor’s Customers Competitor’s Customers Brand Switchers Price Buyers Desired Results Reinforce behavior Increase consumption Change timing Reinforce behavior Increase consumption Change timing Break loyalty Persuade to switch Break loyalty Persuade to switch Persuade to buy your brand more often Appeal with low prices Supply added value Appeal with low prices Supply added value Sales Promotion Examples Loyalty marketing Bonus packs Loyalty marketing Bonus packs Sampling Sweepstakes, contests, premiums Sampling Sweepstakes, contests, premiums Price-lowering promotion Trade deals Price-lowering promotion Trade deals Coupons, price-off packages, refunds Trade deals Coupons, price-off packages, refunds Trade deals

Chapter 13 Ver 2e26 Trade Allowances Push Money Training Free Merchandise Store Demonstration Conventions & Trade Shows Unique Tools for Trade Sales Promotion Unique Tools for Trade Sales Promotion Tools for Trade Sales Promotion ©2000 South-Western College Publishing

Chapter 13 Ver 2e27 Functions of Public Relations ©2000 South-Western College Publishing Press Relations Product Publicity Corporate Communication Public Affairs LobbyingLobbying Employee and Investor Relations Crisis Management

Chapter 13 Ver 2e28 ©2000 South-Western College Publishing Major Public Relations Tools Tools Used By PR Professionals Tools Used By PR Professionals Product Placement Customer Satisfaction Phone Lines Customer Satisfaction Phone Lines Consumer Education Event Sponsorship Issue Sponsorship Internet Web Sites New Product Publicity