Advertising, Sales Promotion, and Public Relations

1. Chapter 18 Advertising, Sales Promotion, and Public Relations

2. Objectives • Identify the three major advertising objectives and the two basic categories of advertising. • List the major advertising strategies. • Describe the process of creating an advertisement. • List and compare the major advertising media. • Outline the organization of the advertising function and the role of an advertising agency. • Identify the principal methods of sales promotion. • Explain the roles of cross promotions, public relations, publicity, and ethics in an organization’s promotional strategy. • Explain how marketers assess promotional effectiveness.

3. Advertising • Involves paid nonpersonal communication through various media with the purpose of informing or persuading members of a particular audience. • Used by marketers to reach target markets. • A typical consumer is exposed to hundreds of advertising messages each day. • Provides an efficient, inexpensive, and fast method of reaching the ever-elusive, increasingly segmented consumer market.

4. Two Broad Categories of Advertisements • Product advertising is nonpersonal selling of a particular good or service. • This is the type of advertising the average person usually thinks of. • Institutional advertising, in contrast, promotes a concept, an idea, a philosophy, or the goodwill of an industry, company, organization, person, geographical location, or government agency. • Often closely related to the public-relations function of the enterprise.

5. Advertising Objectives in Relation to Stage in the Product Life Cycle • Informative advertisingseeks to develop initial demand for a good, service, organization, person, place, idea, or cause. • Persuasive advertisingattempts to increase demand for an existing good, service, organization, person, place, • Reminder advertisingstrives to reinforce previous promotional activity.

6. Comparative Advertising

7. Creating Ads “What does J. Walter Thompson stand for? We are for Brands. We are for bringing Brands to life. We are for bringing Brands back to life, where necessary. We are for nurturing, building and sustaining Brands so that this should not become necessary. We are for Brands you can eat, or drink, or drive, or read, or wear, or give, or receive, or join; technological Brands, trendy Brands, traditional Brands. We are for Brands which cross borders and Brands from across the street. More than anything, we are for Branding Ideas vivid enough to make all of these things possible, in every communications channel conceivable. After all, we have our own Branding to think about...”

8. Advertising • Retail Advertising, which includes all advertising by retail stores that sell goods or services directly to the consuming public. • Varies widely in its effectiveness. • Source, message, and shopping experience seem to affect consumer attitudes toward these advertisements. • Cooperative advertising - A retailer often shares advertising costs with a manufacturer or wholesaler. • Originated to take advantage of the media’s practice of offering lower rates to local advertisers than to national ones. • Can create vertical links.

9. Creating an Advertisement • Develop Goals • Create Plan • Develop and create ad • Select media

10. Elements of the Advertising Planning Process

11. Advertising Messages • Starts with the customer benefits and moves to the creative concept phase. • Marketers work to create an ad with meaningful, believable, and distinctive appeals.

12. An Advertisement Should… • Gain attention and interest • Inform and/or persuade • Eventually lead to a purchase or other desired action.

13. Comparison of Advertising Media Alternatives

14. Media Scheduling • Setting the timing and sequence for a series of advertisements. • A variety of factors influence this decision • Sales patterns • Repurchase cycles • Competitors’ activities

15. Alloy & Media Scheduling • Alloy is a media, direct marketing and marketing services company focusing on Generation Y. Their media scheduling integrates direct mail catalogs, print media, websites, on-campus marketing programs, and promotional events.

16. Measure the Effectiveness of Media Schedule Plans • Reach refers to the number of different people or households exposed to an advertisement at least once during a certain time period. • Frequency refers to the number of times an individual person is exposed to an advertisement during a certain time period. • By multiplying reach times frequency, advertisers quantitatively describe the total weight of a media effort, which is called the campaign’s gross rating point.

17. Sales Promotion • Marketing activities other than personal selling, advertising, and publicity. • Accounts for double the promotional dollar outlays of advertising. • Originally intended as short-term incentives aimed at producing immediate consumer buying responses. • Traditionally, these techniques were viewed as supplements to other elements of the firm’s promotional mix. • Today,however, marketers recognize them as an integral part of many marketing plans. • Shifted from short-term to long-term goals.

18. Principal Methods of Sales Promotion Two major categories: • Consumer-oriented promotions take the form of coupons and refunds, samples, contests and sweepstakes, and specialty advertising. • Trade promotions include trade allowances, point-of-purchase advertising, trade shows, and dealer incentives, contests, and training programs.

19. Sampling as a Promotional Tool • There are many companies that are taking advantage of sampling to promote their products. • Many of those same companies have found the internet to be an effective tool to market their products through sampling. • The StartSampling Web Site is just one place marketers can use to provide samples and gather information on the market.

20. Assessing Promotional Effectiveness • Pretestingis the assessment of an ad’s effectiveness before it is actually used. • Includes conviction tests and blind product tests. • Posttesting is the assessment of the ad’s effectiveness after it has been used. • Include readership test, unaided recall tests, inquiry tests, and split runs.

21. Advertising Ethics Puffery and Deception • Puffery refers to exaggerated claim of a product’s superiority or the use of subjective or vague statements that many not be literally true.

22. UCC • The Uniform Commercial Code standardizes sales and business practices throughout the U.S. It makes a distinction between puffery and any specific or quantifiable statement about product quality or performance that constitutes an “express warranty.”