1. Chapter 19 Managing Advertising, Sales Promotion and Public Relations
Marketing Management
Tenth Edition
Philip Kotler

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

3. Major Decisions in Advertising
Objectives Setting
Major Decisions in Advertising
Budget Decisions
Message Decisions
Media Decisions
Campaign Evaluation

4. 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.

5. The Five Ms of Advertising
Message
Message generation
Message evaluation
and selection
Message execution
Social-responsibility
review
Media
Reach, frequency,
impact
Major media types
Specific media
vehicles
Media timing
Geographical
media allocation
Money
Factors to
consider:
Stage in PLC
Market share
and con-
sumer base
Competition
and clutter
Advertising
frequency
Product
substituta-
bility
Mission
Sales
goals
Adver-
tising
objectives
Measure-
ment
Communi-
cation
impact
Sales

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

7. 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

8. 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

9. Classification of Advertising Timing Patterns
Concen-
trated
(1)
(2)
(3)
Level
Rising
Falling
Alternating
(4)
Continuous
(8)
(7)
(6)
(5)
(9)
Inter-
mittent
(10)
(11)
(12)
Number of
messages
per month
Month

10. Simplified Rating Sheet for Ads
(Attention) How well does the ad catch
the reader’s attention? __20
(Read-through) How well does the
ad lead the reader to read further? __20
(Cognitive) How clear is the
central message or benefit? __20
(Affective) How effective is
the particular appeal? __20
(Behavior) How well does the
ad suggest follow-through action? __20
Poor ad
Mediocre
Average
Good
Great 20 40 60 80
100
__Total

11. 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
Typical
Message
Execution
Styles
Scientific
Evidence
Fantasy
Technical
Expertise
Mood or
Image
Personality
Symbol
Musical

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

13. 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

14. 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

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

16. 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

17. “Deal Proneness,” Liechtenstein, Burton, & Netemeyer, Journal of Retailing, Summer 1997
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

18. “Deal Proneness,” Liechtenstein, Burton, & Netemeyer
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

19. 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

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

21. Major Public Relations Tools
Web Site
News
Public
Service
Activities
Speeches
Corporate
Identity
Materials
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.
Special
Events
Audiovisual
Materials
Written
Materials

22. Taco Bell has purchased the Liberty Bell!
“Taco Bell Rings in New Age of Publicity Stunts,” Lamons, Marketing News 5/20/96, p. 15. “What a coup! What guts! Such creative thinking!. Frankly I can’t recall a publicity stunt that accomplished so much positive exposure with so little effort and expense.” What did they do? Ran ads on April 1st (Fools day) announcing they had purchased the Liberty Bell to help reduce the deficit, and renaming it the Taco Liberty Bell! Corp.. HQ got over 2000 calls, radio talk-shows were abuzz, and it made the NBC Nightly news! They probably spent around $300,000 and got millions in media coverage!

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