Lecturer: Insert your name here CHAPTER TWELVE Promotion Mix Strategies: Advertising and Public Relations Lecturer: Insert your name here Ch 12 -0 Copyright © 2011 Pearson Education

Promotion: Advertising and Public Relations Topic Outline 12.1 Advertising 12.2 Public Relations 12.3 Personal Selling 12.4 Sales Promotion Ch 12 - 1 Copyright © 2011 Pearson Education

Copyright © 2011 Pearson Education Advertising Developing and Advertising Programs Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. Ch 12 - 2 Copyright © 2011 Pearson Education

Advertising Developing and Advertising Programs

Copyright © 2011 Pearson Education Advertising Setting Advertising Objectives An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific time. Objectives are classified by primary purpose Inform Persuade Remind Ch 12 - 4 Copyright © 2011 Pearson Education

Copyright © 2011 Pearson Education Advertising Setting Advertising Objectives Informative advertising is used when introducing a new product category; the objective is to build primary demand. Comparative advertising directly or indirectly compares the brand with one or more other brands. Persuasive advertising is important with increased competition to build selective demand. Reminder advertising is important with mature products to help maintain customer relationships and keep customers thinking about the product. Note to Instructor Discussion Question When would an advertiser use each of these types of objectives? This YouTube link is to a classic Pepsi ad, which is practicing Comparative advertising. Ch 12 - 5 Copyright © 2011 Pearson Education

Copyright © 2011 Pearson Education Advertising Ch 12 - 6 Copyright © 2011 Pearson Education

Copyright © 2011 Pearson Education Advertising Setting the Advertising Budget Product life-cycle stage New products require larger budgets Mature brands require lower budgets Market share Building or taking market share requires larger budgets Markets with heavy competition or high advertising clutter require larger budgets Undifferentiated brands require larger budgets Note to Instructor Market share can also determine budget where building or taking market share requires larger budgets. In addition, markets with heavy competition or high advertising clutter require larger budgets. Ch 12 - 7 Copyright © 2011 Pearson Education

Copyright © 2011 Pearson Education Advertising Developing Advertising Strategy Advertising strategy is the strategy by which the company accomplishes its advertising objectives and consists of: Creating advertising messages Selecting advertising media Note to Instructor The MINI Let’s Motor campaign used a rich mix of conventional and unconventional media, carefully integrated to create personality for the car and a tremendous buzz of excitement among consumers. Ch 12 - 8 Copyright © 2011 Pearson Education

Advertising: Developing Advertising Strategy Creating the Advertising Message Ads need to break through the clutter: Gain attention Communicate well Advertisements need to be better planned, more imaginative, more entertaining, and more rewarding to consumers. Madison & Vine—the intersection of Madison Avenue and Hollywood—represents the merging of advertising and entertainment Note to Instructor Advertising clutter: Today’s consumers, armed with a variety of tools, can choose what they watch and don’t watch. Advertising messages must be better planned, more imaginative, more entertaining, and more rewarding to consumers. This weblink presents a Youtube to an Arab McDonald’s commercial. It is both attention getting and entertaining. Ch 12 - 9 Copyright © 2011 Pearson Education

Advertising: Developing Advertising Strategy Creating the Advertising Message Message execution Creative concept Message strategy Ch 12 - 10 Copyright © 2011 Pearson Education

Advertising: Developing Advertising Strategy Creating the Advertising Message Message strategy is the general message that will be communicated to consumers. It Identifies consumer benefits. Creative concept is the idea that will bring the message strategy to life and guide specific appeals to be used in an advertising campaign. Characteristics of the appeals: Meaningful Believable Distinctive Note to Instructor This weblink takes you to a YouTube commercial for Pizza Hut in which they present their new Hot Dot feature as a guarantee for hot pizza that is Fresh from the oven. Ch 12 - 11 Copyright © 2011 Pearson Education

Advertising: Developing Advertising Strategy Creating the Advertising Message Message execution is when the advertiser turns the big idea into an actual ad execution that will capture the target market’s attention and interest. The creative team must find the best approach, style, tone, words, and format for executing the message. Note to Instructor La Vache Qui Rit is an example of an animated character used as a personality symbol to represent a product. Ch 12 - 12 Copyright © 2011 Pearson Education

Advertising: Developing Advertising Strategy Creating the Advertising Message: Execution Slice of life Lifestyle Fantasy Mood or image Musical Personality symbol Technical expertise Scientific evidence Testimonial or endorsement Note to Instructor This weblink takes you to a YouTube commercial for Chipseco. It is an example of “Musical” execution where the ad is built around a song that explains the line texture on the chips, the crunchy sound, and great flavors. Ch 12 - 13 Copyright © 2011 Pearson Education

Advertising: Developing Advertising Strategy Creating the Advertising Message: Execution Message execution also includes: Tone Positive or negative Attention-getting words Format Illustration Headline Copy Note to Instructor This weblink takes you to a YouTube commercial for Momen Max Meal. Ch 12 - 14 Copyright © 2011 Pearson Education

Advertising: Developing Advertising Strategy Creating the Advertising Message Consumer Generated Messages YouTube videos, MySpace, Google… Brand Web site contests Benefits of consumer generated messages: Low expense New creative ideas Fresh perspective on brand Boost consumer involvement Ch 12 - 15 Copyright © 2011 Pearson Education

Advertising: Developing Advertising Strategy Selecting Advertising Media Major steps include: Deciding on reach-frequency-impact Choosing among major media types Selecting media vehicles Deciding on media timing Ch 12 - 16 Copyright © 2011 Pearson Education

Advertising: Developing Advertising Strategy Selecting Advertising Media Reach is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time. Frequency is a measure of how many times the average person in the target market is exposed to the message. Impact is the qualitative value of a message exposure through a given medium. Ch 12 - 17 Copyright © 2011 Pearson Education Copyright © 2011 Pearson Education

Advertising: Developing Advertising Strategy Selecting Advertising Media Choosing among major media types: Television Internet Newspapers Direct Mail Magazines Radio Outdoor Ch 12 - 18 Copyright © 2011 Pearson Education

Advertising: Developing Advertising Strategy Selecting Advertising Media Selecting Specific media vehicles involves decisions presenting the media effectively and efficiently to the target customer and must consider the message’s: Impact Effectiveness Cost Note to Instructor When selecting specific media vehicles, the planner must consider the cost of the media as compared to its effectiveness by evaluating: Audience quality Audience engagement Editorial quality Ch 12 - 19 Copyright © 2011 Pearson Education

Advertising: Developing Advertising Strategy Narrowcasting Versus Shotgun Approaches Narrowcasting focuses the message on selected market segments. Lowers cost Targets more effectively Engages customers better Note to Instructor The text gives the following example: Tiny billboards attached to shopping carts. Ads on shopping bags. Advertising on supermarket floors. Ad space is being sold on DVD cases. Parking-lot tickets. A public bus sporting an ad for Dubai Metro Ch 12 - 20 Copyright © 2011 Pearson Education

Advertising: Developing Advertising Strategy Selecting Advertising Media When deciding on media timing, the planner must consider: Seasonality Pattern of the advertising Continuity—scheduling within a given period Pulsing—scheduling unevenly within a given period Note to Instructor Turkish Airlines chose to run a special advertising campaign during Ramadan, a time when many people travel to be with their family and friends. Ch 12 - 21 Copyright © 2011 Pearson Education

Copyright © 2011 Pearson Education Evaluating Advertising Effectiveness and Return on Advertising Investment Return on Advertising Investment Return on Advertising Investment is the net return on advertising investment divided by the costs of the advertising investment. Communication effects indicate whether the ad and media are communicating the ad message well and should be tested before or after the ad runs. Sales and profit effects compare past sales and profits with past expenditures or through experiments. Ch 12 - 22 Copyright © 2011 Pearson Education

Other Advertising Considerations Organizing for advertising Agency vs. in-house International advertising decisions Standardization Note to Instructor This Web link brings you to a youtube ad for Dove’s “Campaign for Real Beauty” which has been a spectacular advertising hit by challenging the standard supermodel-type body images used in most adverts and instead showing images of real, everyday women. Unilever’s Dove for real beauty campaign launched globally essentially had the same elements across the different markets, but nonetheless these elements were also customized to the needs of local markets to appeal to the consumers. Real marketing 12.1 sheds the light on this campaign by taking a look at the Arab version. Ch 12 - 23 Copyright © 2011 Pearson Education

Copyright © 2011 Pearson Education 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. Public relations is used to promote product, people, ideas, and activities. Ch 12 - 24 Copyright © 2011 Pearson Education

Copyright © 2011 Pearson Education Public Relations Public relations department functions include: Press relations or press agency Product publicity Public affairs Lobbying Investor relations Development Ch 12 - 25 Copyright © 2011 Pearson Education

Copyright © 2011 Pearson Education Public Relations The Role and Impact of Public Relations Lower cost than advertising Stronger impact on public awareness than advertising Note to Instructor Public relations results can sometimes be spectacular. Philadelphia cream cheese’s award-winning PR campaign for ‘Spread some inspiration’ became one of the most widely talked about PR campaigns targeting women in the Arab world, resulting in a return of 25 times the investment. Ch 12 - 26 Copyright © 2011 Pearson Education

Public Relations Major Public Relations Tools News Speeches Special events Written materials Audiovisual materials Corporate identity materials Public service activities Buzz marketing Social networking Internet Ch 12 - 27 Copyright © 2011 Pearson Education

Copyright © 2011 Pearson Education Personal Selling The Role of the Sales Force Personal selling is the personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships. Salesperson is an individual representing a company to customers by performing one or more of the following activities: prospecting, communicating, selling, servicing, information gathering, and relationship building. Note to Instructor Examples of people who do the selling include: Salespeople Sales representatives District managers Account executives Sales engineers Agents Account development reps Discussion Question Who has held a sales position? What were your responsibilities? You can the ask them to describe the job so you can use it as an example in future slides. Many students will have worked at inside sales positions and many of them have cold called extensively as part of their jobs. You can also ask them how they were paid—salary, commission, bonus? This will tie into future slides. Ch 12 - 28 Copyright © 2011 Pearson Education

Copyright © 2011 Pearson Education Personal Selling The Role of the Sales Force Salespeople are an effective link between the company and its customers to produce customer value and company profit by: Linking the company with its customers Representing the company to customers Representing customers to the company Coordinating marketing and Sales Ch 12 - 29 Copyright © 2011 Pearson Education

Copyright © 2011 Pearson Education Sales Promotion Sales promotion refers to the short-term incentives to encourage purchases or sales of a product or service: Consumer promotions Trade promotions Business promotions Sales force promotions Whereas advertising offers reasons to buy a product or service, sales promotion offers reasons to buy now. Note to Instructor This is a Weblink to tanzeelat.com. It is worth exploring this site with the students as it gives excellent current examples of promotions. Ch 12 - 30 Copyright © 2011 Pearson Education

Copyright © 2011 Pearson Education Sales Promotion Rapid Growth of Sales Promotions Several Factors have contributed to this growth. Product managers are under pressure to increase current sales. Companies face more competition. Competing brands offer less differentiation. Advertising efficiency has declined due to rising costs, clutter, and legal constraints. Consumers have become more deal-oriented. Note to Instructor Real marketing 12.2 presents a successful example of sales promotion in the Arab world supplied by Qatar Automobiles Company (QAC). QAC employs a wide array of sales promotion tools to retain its customers’ loyalty, including price discounts and appealing financial solutions. It often launches special promotions to coincide with particular occasions. For instance, one joint campaign with Doha Bank offered attractive financial solutions (such as a low interest rate for repaying a loan, and no down payment) on Mitsubishi vehicles in the holy month of Ramadan. Ch 12 - 31 Copyright © 2011 Pearson Education

Copyright © 2011 Pearson Education Sales Promotion Sales Promotion Objectives Consumer promotion objectives: Urge short-term customer buying Enhance long-term customer relationships Trade promotions urge retailers to: Carry new items or more inventory Buy in advance Advertise company products Get more shelf space Note to Instructor Consumer promotion objectives: Urge short-term customer buying Enhance long-term customer relationships Trade promotions urge retailers to: Carry new items or more inventory Buy in advance Advertise company products Get more shelf space Sales force objectives include getting: More sales force support for new or current products Salespeople to sign up new accounts This weblink takes you to makhsoom.com which is a web site offering an easy way to get huge discounts while discovering fun activities in Beirut. It has daily deals for restaurants, spas, massages, theaters, hotels, and a whole lot more. Ch 12 - 32 Copyright © 2011 Pearson Education

Copyright © 2011 Pearson Education Sales Promotion Sales Promotion Objectives Sales force objectives include getting: More sales force support for new or current products Salespeople to sign up new accounts Note to Instructor Sales force objectives include getting: More sales force support for new or current products Salespeople to sign up new accounts Ch 12 - 33 Copyright © 2011 Pearson Education

Advertising specialties Point-of-purchase displays Sales Promotion Major Sales Promotion Tools Samples Coupons Cash refunds Price packs Premiums Advertising specialties Patronage rewards Point-of-purchase displays Demonstrations Contests Sweepstakes Games Ch 12 - 34 Copyright © 2011 Pearson Education

Copyright © 2011 Pearson Education Sales Promotion Consumer Promotion Tools Samples offer a trial amount of a product. Coupons are certificates that give buyers a saving when they purchase specified products. Cash refunds are similar to coupons except that the price reduction occurs after the purchase. Price packs offer consumers savings off the regular price of a product. Ch 12 - 35 Copyright © 2011 Pearson Education

Copyright © 2011 Pearson Education Sales Promotion Consumer Promotion Tools Premiums are goods offered either for free or at a low price. Advertising specialties are useful articles imprinted with the advertiser’s name, logo, or message that are given as gifts to consumers. Point-of-purchase promotions include displays and demonstrations that take place at the point of sales. Ch 12 - 36 Copyright © 2011 Pearson Education

Copyright © 2011 Pearson Education Sales Promotion Consumer Promotion Tools Contests, sweepstakes, and games give consumers the chance to win something—such as cash, trips, or goods—by luck or through extra effort. Contests require an entry by a consumer. Sweepstakes require consumers to submit their names for a drawing. Games present consumers with something that may or may not help them win a prize. Event marketing Note to Instructor Event marketing is on the rise. Pampers Egypt recently sponsored events related to mother–child relationships. The events attracted celebrities as well as child physicians, along with invited mothers and children. Pampers also sponsored a radio show discussing challenges and problems that mothers face with their babies. Such activities proved successful in growing the size of the market and associating the Pampers brand with emotional traits such as caring. Ch 12 - 37 Copyright © 2011 Pearson Education

Sales Promotion Trade Promotion Tools Discount Allowance Free goods Specialty advertising Note to Instructor Trade promotion tools persuade resellers to: Carry a brand Give the brand more shelf space Promote the brand in advertising Push the brand to consumers Ch 12 - 38 Copyright © 2011 Pearson Education

Copyright © 2011 Pearson Education Sales Promotion Business Promotion Tools Conventions and trade shows are effective to reach many customers not reached with the regular sales force. Sales contests are effective in motivating salespeople or dealers to increase performance over a given period. Note to Instructor Business promotion tools are used to: Generate leads Stimulate purchases Reward customers Motivate salespeople This weblink eventseye.com presents “Trade Shows, Exhibitions, Conferences, & Business Events” Worldwide. Students can visit it and check the different trade shows in any Arab country and what they present and offer. Ch 12 - 39 Copyright © 2011 Pearson Education

Copyright © 2011 Pearson Education Sales Promotion Developing the Sales Promotion Program Size of the incentive Conditions for participation Promote and distribute the program Length of the program Evaluation of the program Ch 12 - 40 Copyright © 2011 Pearson Education

Copyright © 2011 Pearson Education This work is protected by local and international copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted. The work and materials from this site should never be made available to students except by instructors using the accompanying text in their classes. All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials. Ch 12 - 41 Copyright © 2011 Pearson Education 41