1. Advertising, Sales Promotion, and Public Relations

2. Chapter Objectives
Tell what advertising is and describe the major types of advertising
Describe the process of developing an advertising campaign
Explain how marketers evaluate advertising
Explain what sales promotion is and describe the different types of trade and consumer sales promotion activities
Explain the role of public relations
Describe the steps in developing a public relations campaign

3. Real People, Real Choices
BzzAgent, Inc. (Joe Chernov)
Negative articles questioned “disclosure” in word-of-mouth marketing campaigns
What public relations strategy to use to respond to the criticism?
Option 1: take charge of the discussion.
Option 2: defend without being defensive.
Option 3: go quiet.

4. Advertising: The Image of Marketing
Advertising: nonpersonal communication paid for by an identified sponsor using mass media to persuade or inform an audience

5. Types of Advertising
Product advertising: focuses on a specific good/service

6. Types of Advertising (cont’d)
Institutional advertising: promotes the activities, personality, or point of view of an organization or company
Advocacy advertising
Public service announcement (PSA)

7. Types of Advertising (cont’d)
Retail and local advertising: encourages customers to shop at a specific store or use a local service
Do-it-yourself advertising
“Generation C” phenomenon: consumer-generated ad content on the Web

8. Who Creates Advertising?
Advertising campaign: a coordinated, comprehensive plan that carries out promotion objectives and results in a series of ads placed in media over a period of time

9. Who Creates Advertising? (cont’d)
Limited-service agency
Full-service agency
Account management
Creative services
Research and marketing services
Media planning

10. Steps in Developing an Advertising Campaign
Step 1: Identify the target audiences
Step 2: Establish message and budget objectives
Step 3: Design the Ads
Creative strategy: process that turns a concept into an advertisement

11. Advertising Appeal: Central Idea of the Ad
Reasons why: the Unique Selling Proposition (USP)
Comparative advertising
Demonstration
Slice of life
Lifestyle

12. Advertising Appeal: Central Idea of the Ad (cont’d)
Testimonial
Fear appeals
Sex appeals
Humorous appeals
Slogans and jingles

13. Step 4: Pretest What the Ads Will Say
Pretesting: seeks to minimize mistakes by getting consumer reactions to ad messages before they appear in the media
Copy testing: measures effectiveness of ads

14. Step 5: Choose the Media Type(s) and Media Schedule
Media planning: develops media objectives, strategies and tactics
Aperture: is the best place and time to reach the target market

15. Where to Say It: Traditional Media
Television
Radio
Newspapers
Magazines
Directories
Out-of-home media
Place-based media

16. Where to Say It: Internet Advertising
Banners
Buttons
Search engine and directory listings
Pop-up ads
Spamming
Permission marketing

17. Media Scheduling: When To Say It
Media schedule: specifies exact media to use and when to use it
Advertising exposure: defines degree to which the target market will see an advertising message in specific vehicles
Impressions: measures number of people exposed to a message in one or more vehicles

18. Media Scheduling: When to Say It (cont’d)
Reach: measures percentage of target market exposed to media vehicle
Frequency: measures average number of times a person in the target group will be exposed to the message

19. Media Scheduling: When To Say It (cont’d)
Gross rating points (GRPs) = reach X frequency
Cost per thousand (CPM): the cost to deliver a message to 1,000 people

20. Media Scheduling: How Often To Say It
Continuous schedule: puts out steady stream of advertising
Pulsing schedule: varies the amount of advertising
Flighting schedule: puts ads out in short, intense bursts

21. Step 6: Evaluate the Advertising
Posttesting: research on consumers’ responses to advertising they have seen or heard
Unaided recall
Aided recall

22. Sales Promotion
Programs designed to build interest in or encourage purchase of a product during a specified period of time
Deliver short-term sales results
Can target end consumers, channel partners, and/or employees

23. Sales Promotion Directed Toward the Trade: Trade Promotions
Discounts and deals
Merchandising allowances
Case allowances
Increasing industry visibility
Trade shows
Promotional products
Incentive programs (push money)

24. Sales Promotion Directed Toward Consumers
Price-Based Consumer Sales Promotion
Coupons
Price deals, refunds, and rebates
Frequency (loyalty/continuity) programs
Special/bonus packs

25. Sales Promotion Directed Toward Consumers (cont’d)
Attention-getting consumer promotion
Contests and sweepstakes
Premiums
Sampling
Point-of-purchase promotion
Product/brand placements
Cross-promotion

26. Public Relations
PR: communication function that seeks to build good relationships with an organization’s publics.
Publics include consumers, stockholders, legislators, and other firm stakeholders.
Basic rule of good PR: do something good, then talk about it.

27. Public Relations (cont’d)
Proactive PR activities stem from firm’s marketing objectives.
Publicity: unpaid communication about an organization that gets media exposure.
PR is even more important when firm’s image is at risk due to negative publicity.
PR is responsible for preparing a crisis management plan.

28. Objectives of Public Relations
Introducing new products to manufacturers
Introducing new products to consumers
Influencing government legislation
Enhancing image of a firm
Enhancing image of a city, region, or country
Calling attention to a firm’s involvement with the community

29. Planning a Public Relations Campaign
A statement of objectives
Situation analysis
Specification of publics, communicated messages, and specific program elements
Timetable and budget
Discussion of program evaluation plan

30. Public Relations Activities
Press releases (timely topics, research project stories, and consumer information releases)
Internal PR
Investor relations
Lobbying
Speech writing
Corporate identity

31. Public Relations Activities (cont’d)
Media relations
Sponsorships
Special events
Buzz-building: word-of-mouth/blogging
Advice and counsel

32. Real People, Real Choices
BzzAgent, Inc. (Joe Chernov)
Joe chose option 1: take charge of the discussion.
BzzAgent issued a press release announcing it had enhanced its disclosure policy, becoming the first company to enforce compliance with disclosure policies.

33. Marketing Plan Exercise (cont’d)
--Outline an advertising campaign for the product and discuss the following:
The type of appeal
The main message
The media (include at least one print and one broadcast medium)
How you’ll develop the ads to share the same look and feel

34. Marketing in Action Case: You Make the Call
What is the decision facing Amazon?
What factors are important in understanding this decision situation?
What are the alternatives?
What decision(s) do you recommend?
What are some ways to implement your recommendation?

35. Keeping It Real: Fast-Forward to Next Class, Decision Time at IBM
Meet Esther Ferre, a General Manager at IBM.
IBM sales teams are responsible for IBM relationships with clients and are evaluated on maximizing revenue and profits.
The decision: How to allocate resources across a broad customer base?