1. Objectives Developing & Managing an Advertising Program
Deciding on Media & Measuring Effectiveness
Sales Promotion
Public Relations

2. Advertising Objectives
Specific Communication Task
Accomplished with a Specific Target Audience
During a Specific Period of Time
Informative Advertising
Build Primary Demand
Persuasive Advertising
Build Selective Demand
Comparison Advertising
Compares One Brand to Another
Reminder Advertising
Keeps Consumers Thinking
About a Product.

3. Advertising Budget Factors
Stage in the
Product Life Cycle
Market Share &
Consumer Base
Competition &
Clutter
Advertising
Frequency
Product
Substitutability

4. Profiles of Major Media Types
Newspapers
Advantages: Flexibility, timeliness; good local market coverage;
broad acceptance, high believability
Limitations: Short life; poor reproduction quality; small
pass-along audience
Television
Advantages: Combines sight, sound, motion; high attention;
high reach; appealing to senses
Limitations: High absolute costs; high clutter; fleeting exposure;
less audience selectivity
Direct Mail
Advantages: Audience selectivity; flexibility, no ad compe-
tition within same medium; allows personalization
Limitations: Relative high cost; “junk mail” image

5. Profiles of Major Media Types
Radio
Advantages: Mass use; high geographic and demographic
selectivity; low cost
Limitations: Audio only; fleeting exposure; lower attention;
nonstandardized rates; fragmented audiences
Magazines
Advantages: High geographic and demographic selectivity;
credibility and prestige; high-quality reproduction;
long life; good pass-along readership
Limitations: Long ad purchase lead time; waste circulation;
no guarantee of position
Outdoor
Advantages: Flexibility; high repeat exposure; low cost;
low message competition
Limitations: Little audience selectivity; creative limitations

6. Advertising Strategy Message Execution
Testimonial
Evidence
Slice of Life
Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest.
Lifestyle
Scientific
Evidence
Typical
Message
Execution
Styles
Fantasy
Technical
Expertise
Mood or
Image
Personality
Symbol
Musical

7. Advertising Evaluation
Advertising Program Evaluation
Communication Effects
Is the Ad Communicating Well?
Sales Effects
Is the Ad Increasing Sales?

8. Why the increase in Sales Promotion?
Growing retailer power
Declining brand loyalty
Increased promotional sensitivity
Brand proliferation
Fragmentation of consumer market
Short-term focus
Increased managerial accountability
Competition
Clutter
Retailer - scanner data, industry consolidation -MFGs want to break through
Loyalty & Sensitivity & proliferation - we did that
Frag - more media, more targeted
Short-term&Account - US Business, stock mkt, not BE

9. Long-Term Promotional Allocation10 20 30 40 50 60
1986 88 90 92 94
1996
Year
%t of total - 3 yr.MA
Trade Promo
Media Adv
Cons. Promo
Cox Direct 19th Annual Survey of Promotional Practices

10. Channels of Sales Promotions
MANUFACTURER
RETAILER
Trade
Promotions
CONSUMER
Consumer
Push
Pull
Retail

11. Consumer Promotion Consumer-Promotion Objectives
Consumer-Promotion Tools
Entice Consumers to
Try a New Product
Point-of-Purchase
Displays
Premiums
Price Packs
Cash Refunds
Coupons
Samples
Patronage Rewards
Games
Sweepstakes
Contests
Advertising
Specialties
Lure Customers Away
From Competitors’ Products
Get Consumers to “Load Up’
on a Mature Product
Hold & Reward Loyal
Customers
Consumer Relationship
Building

12. “Deal Proneness,” Liechtenstein, Burton, & Netemeyer
“Deal Proneness,” Liechtenstein, Burton, & Netemeyer, Journal of Retailing, Summer 1997
“Deal Proneness,” Liechtenstein, Burton, & Netemeyer
Examination of “deal proneness” among consumers in a supermarket setting
Surveys & Grocery Receipts used
Eight types of deals:
Cent-off, One-free, Gift, Display, Rebate, Contest, Sale, & Coupon
Cluster analysis yielded two interpretable results:
49% are “deal prone,” 51% not
24% High “Deal prone,” 50% intermediate, 26% deal insensitive
“Deal-proneness” a generalized construct - (crosses type of promotion)
Younger & Less educated more likely to be deal prone

13. Trade Promotions Trade-Promotion Tools Trade-Promotion Objectives
Specialty
Advertising
Items
Contests
Free Goods
Buy-Back
Guarantees
Allowances
Price-Offs
Patronage Rewards
Push Money
Discounts
Premiums
Displays
Persuade Retailers or
Wholesalers to Carry a Brand
Give a Brand Shelf Space
Promote a Brand in
Advertising
Push a Brand to Consumers

14. Business-to-Business Promotion
Business-Promotion Objectives
Business-Promotion Tools
Generate Business Leads
Conventions
Trade Shows
Sales Contests
Stimulate Purchases
Reward Customers
Motivate Salespeople

15. Major Public Relations Tools
Special
Events
Written
Materials
Corporate
Identity
Speeches
News
Audiovisual
Public
Service
Activities
Web Site
Father of PR was Edward Bernays, turns out he was Freud’s nephew! Value of some good brand publicity/movie placements:
SPECIAL EVENTS:
Reeses Pieces sales jumped 85% after E.T.
Mumford High sold $1M in school shirts after
Beverly Hills Cop
CA. Raisin Board paid $25K for bus-stop sign and raisin eating scene in Back to the future.
Coke and Pepsi scout out roles full time.