1. Chapter 16 – Advertising, Public Relations, and Sales
Chapter 16 Advertising, Public Relations, and Sales Promotion
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2. Learning Outcomes
Discuss the effects of advertising on market share and consumers
Identify the major types of advertising
Discuss the creative decisions in developing an advertising campaign
Describe media evaluation and selection techniques
Discuss the role of public relations in the promotional mix
Define and state the objectives of sales promotion and the tools used to achieve them

3. Effects of Advertising
Chapter 16 Advertising, Public Relations, and Sales Promotion
LO 1
Popular form of promotion
New brands with small market shares spend more on advertising and sales promotion because due to:
Advertising response function
Requirement of a minimum level of exposure to measurably affect purchase habits
Companies are collecting huge amounts of information and need skilled, creative, web-savvy people to interpret the data coming in from web, mobile, and other digital ad campaigns.
Advertising is utilized for maintaining brand awareness and market share.
Advertising response function: Phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing returns

4. Effects of Advertising on Consumers
Chapter 16 Advertising, Public Relations, and Sales Promotion
LO 1
Helps change a consumer’s negative attitude toward a product into a positive one
Reinforces positive attitudes toward brands
Can affect the way a consumer ranks a brand’s attributes
The influence of advertising on the U.S. socioeconomic system has been the subject of extensive debate in nearly all corners of society.
Discussion/Team Activity
Discuss advertisements that are memorable. What makes them stand out?

5. Institutional Advertising
Chapter 16 Advertising, Public Relations, and Sales Promotion
LO 2
Designed to enhance a company’s image rather than promote a particular product
Advocacy advertising
Advertising in which an organization expresses its views on controversial issues or responds to media attacks
Institutional advertising is designed to establish, change, or promote the corporation’s identity as a whole.
A form of institutional advertising is advocacy advertising, and is typically used to safeguard against negative consumer attitudes and to enhance the company’s credibility among consumers who already favor its position.
Discussion/Team Activity
Discuss examples of institutional advertising and the industries that frequently use this form.

6. Touts the benefits of a specific good or service Types
Product Advertising
Chapter 16 Advertising, Public Relations, and Sales Promotion
LO 2
Touts the benefits of a specific good or service
Types
Pioneering advertising
Competitive advertising
Comparative advertising
Online
Pizza Hut vs. Papa John’s
Can you find evidence of comparative advertising on either Pizza Hut’s or Papa John’s Web site?
The product’s stage in its life cycle often determines the type of product advertising to be selected.

7. Creative work begins with determining an advertising objective
Advertising Campaign
Chapter 16 Advertising, Public Relations, and Sales Promotion
LO 3
Series of related advertisements focusing on a common theme, slogan, and set of advertising appeals
Creative work begins with determining an advertising objective
DAGMAR approach helps set objectives that defines:
Target audience
Desired percentage change in some specified measure of effectiveness
Time frame for the change
Advertising strategies are organized around an advertising campaign. An ad campaign is a series of related ads focusing on a common theme, slogan, and set of advertising appeals.
Objective depends on the overall corporate objectives and the product being advertised.
Advertising objective: Specific communication task that a campaign should accomplish for a specified target audience during a specified period

8. Creative Decisions in Advertising
Chapter 16 Advertising, Public Relations, and Sales Promotion
LO 3
Identifying product benefits
Developing and evaluating advertising appeals
Executing the message
Identifying product benefits reflects on the fact that the goal of advertising is to sell the benefits of a product, not its attributes.
Advertising appeal: Reason for a person to buy a product
Advertising appeals play off consumers’ emotions or address some need or want of the consumers
Criteria for evaluation of an appeal include desirability, exclusiveness, and believability.
Unique selling proposition: Desirable, exclusive, and believable advertising appeal selected as the theme for a campaign
Executing the message involves the style in which information is portrayed.

9. 16.1 Common Advertising Appeals
Chapter 16 Advertising, Public Relations, and Sales Promotion
LO 3
Common Advertising Appeals

10. Post-Campaign Evaluation
Chapter 16 Advertising, Public Relations, and Sales Promotion
LO 3
Advertisers do a post-campaign analysis
To identify how the campaign might have been more efficient and what factors contributed to its success
Several monitoring techniques determine whether the campaign has met its original goals
Before a campaign is released, pretests are used to determine the best advertising appeal, layout, and media vehicle.
Testing ad effectiveness can be done before and/or after the campaign.
Post-campaign evaluation can be the most demanding task facing advertisers.

11. Media Decisions in Advertising
Chapter 16 Advertising, Public Relations, and Sales Promotion
LO 4
Choice of medium
Medium: Channel used to convey a message to a target market
Affected by promotional objectives and the appeal and executional style of advertising
Media planning: Series of decisions advertisers make regarding the selection and use of media
Allows the marketer to optimally and cost-effectively communicate the message to the target audience
Advertising objectives dictate the medium and the creative approach to be used.

12. Computer screen savers Interactive kiosks Advertisements before movies
Alternative Media
Chapter 16 Advertising, Public Relations, and Sales Promotion
LO 4
Shopping carts
Computer screen savers
Interactive kiosks
Advertisements before movies
Posters
Advertainments
Advertisers are using new media vehicles to cut through the clutter of traditional advertising media.
Marketers are looking for more innovative ways to reach captive and often bored commuters.

13. Factors Affecting Media Mix Selection
Chapter 16 Advertising, Public Relations, and Sales Promotion
LO 4
Cost per contact
Cost per click
Reach
Frequency
Audience selectivity
Flexibility
An important element in any advertising campaign is the media mix, the combination of media to be used.
Noise level
Life span

14. Qualitative Factors in Media Selection
Chapter 16 Advertising, Public Relations, and Sales Promotion
LO 4
Attention to the commercial and the program
Involvement
Program liking
Lack of distractions
Other audience behaviors
Advertisers also evaluate the qualitative factors involved in media selection.
The qualitative factors affect the likelihood that a commercial message is being seen and absorbed.
The audience must pay attention to the ad for it to be effective.

15. Media Scheduling Continuous media schedule Flighted media schedule
Chapter 16 Advertising, Public Relations, and Sales Promotion
LO 4
Advertising is run steadily throughout the period
Continuous media schedule
Advertising is run heavily every other month or every two weeks
Flighted media schedule
Advertising combines continuous scheduling with flighted scheduling
Pulsing media schedule
After choosing the media for the campaign, advertisers must schedule the ads.
A media schedule designates the medium or media to be used, the specific vehicles, and the insertion dates of the advertising.
Continuous media schedule: Examples include Ivory soap and Charmin toilet tissue.
Flighted media schedule: Examples include movie ads on Wednesday and Thursday nights.
Pulsing media schedule: Examples include Thanksgiving, Christmas, and back-to-school sales.
Seasonal media schedule: Examples include cold medication and sunscreen lotion.
Recency planning is the theory of scheduling television advertising for frequently purchased products, such as Coca-Cola and Tide detergent.
Its main premise is to influence the brand choice of people who are ready to buy.
Advertising is run only when the product is likely to be used
Seasonal media schedule

16. Public Relations Tools
Chapter 16 Advertising, Public Relations, and Sales Promotion
LO 5
New-product publicity
Product placement
Consumer education
Sponsorship
Experiential marketing
Company websites

17. Functions of Public Relations
Chapter 16 Advertising, Public Relations, and Sales Promotion
LO 5
Press relations
Product publicity
Corporate communication
Public affairs
Lobbying
Employee and investor relations
Crisis management
Crisis management: Coordinated effort to handle all the effects of unfavorable publicity or another unexpected unfavorable event
Discussion/Team Activity
Identify some corporate crises and discuss how the public relations was handled. Examples include Walmart’s low wages and sparse benefits and the BP oil spill.

18. 16.4 Types of Consumers and Sales Promotion Goals
LO 6
16.4 Types of Consumers and Sales Promotion Goals

19. Tools for Trade Sales Promotion
Chapter 16 Advertising, Public Relations, and Sales Promotion
LO 6
Trade allowances
Push money
Training
Free merchandise
Store demonstrations
Business meetings, conventions, and trade shows
While consumer promotions pull a product through the channel by creating demand, trade promotions push a product through the distribution channel.
Consumer promotion tools are used when selling to members of the distribution channel. However, several tools are unique to manufacturers and intermediaries.

20. Tools for Consumer Sales Promotion
Chapter 16 Advertising, Public Relations, and Sales Promotion
LO 6
Coupons and rebates
Premiums
Loyalty marketing programs
Contests and sweepstakes
Sampling
Point-of-purchase promotion
The tools selected for sales promotion must suit the objectives to ensure success of the overall promotion plan.

21. Key Terms Advertising response function Institutional advertising
Product advertising
Advocacy advertising
Pioneering advertising
Competitive advertising
Comparative advertising
Advertising campaign
Advertising objective
Advertising appeal
Unique selling proposition
Medium
Media planning
Cooperative advertising
Infomercial
Advergaming
Media mix

22. Key Terms (continued 1) Cost per contact (cost per thousand or CPM)
Cost per click
Reach
Frequency
Audience selectivity
Media schedule
Continuous media schedule
Flighted media schedule
Pulsing media schedule
Seasonal media schedule
Public relations
Publicity
Product placement
Sponsorship
Crisis management
Sales promotion

23. Key Terms (continued 2) Trade sales promotion Consumer sales promotion
Trade allowance
Push money
Coupon
Rebate
Premium
Loyalty marketing program
Frequent buyer program
Sampling
Point of purchase (P-O-P) display

24. Summary
Advertising is a popular form of promotion
A firm's promotional objectives determine the type of advertising it uses
Advertising strategies are organized around an advertising campaign
Choice of medium is a major decision for advertisers
Public relations is a vital link in a company’s marketing communication mix
Sales promotion helps increase the effectiveness of promotional efforts