Chapter 13

1. Chapter 13 Advertising, Sales Promotionand Public Relations Prepared by Deborah Baker Texas Christian University ©2000 South-Western College Publishing

2. Chapter 13 Objectives 1. Discuss the effect advertising has on market share, consumers, brand loyalty, and perception of product attributes. 2. Identify the major types of advertising. 3. Describe the advertising campaign process. 4. Describe media evaluation and selection techniques. (continued) ©2000 South-Western College Publishing

3. Chapter 13 Objectives 5. Define and state the objectives of sales promotion. 6. Discuss the most common forms of consumer sales promotion. 7. List the most common forms of trade sales promotion. 8. Discuss the role of public relations in the promotional mix. ©2000 South-Western College Publishing

4. Advertising and Market Share • New brands spend proportionately more for advertising than old ones. • Beyond a certain level, diminishing returns set in. Advertising and the Consumer • Average U.S. citizen is exposed to hundreds of ads each day. • Advertising may change a person’s negative attitude. Advertising and Brand Loyalty • Consumers with high brand loyalty are least susceptible to competitive ads. • Ads reinforce positive attitudes. Advertising and Product Attributes • Advertising can affect a consumer’s rank of brand attributes. Effects of Advertising ©2000 South-Western College Publishing

5. The Public Investment Community Institutional Advertising Customers Types of Advertising Employees Pioneering Product Advertising Competitive Comparative Major Types of Advertising ©2000 South-Western College Publishing

6. Stimulates primary demand for new product or category Pioneering • Influence demand for brand in the growth phase of the PLC. • Often uses emotional appeal. Competitive • Compares two or more competing brands’ product attributes. • Used if growth is sluggish, or if competition is strong. Comparative Product Advertising ©2000 South-Western College Publishing

7. Steps in Creating an Advertising Campaign Determine the campaign objectives. Make creative decisions. Make media decisions. Evaluate the campaign. ©2000 South-Western College Publishing

8. Make Creative Decisions Identify Product Benefits • “Sell the Sizzle, not the Steak” • Sell product’s benefits, not features • A benefit should answer “What’s in it for me?” • Ask “So?” to determine if a benefit ©2000 South-Western College Publishing

9. Profit Health Product saves, makes, or protects money Love or romance Appeals to body-conscious or health seekers Used in selling cosmetics and perfumes Fear Social embarrassment, old age, losing health Admiration Reason for use of celebrity spokespeople Convenience Used for fast foods and microwave foods Fun and pleasure Key to advertising vacations, beer, parks Vanity and egotism Used for expensive or conspicuous items Environmental Consciousness Centers around environmental protection Common Advertising Appeals ©2000 South-Western College Publishing

10. Scientific Slice-of-Life Musical Lifestyle Common Executional Styles Demon- stration Spokes-person/ Testimonial Mood or Image Fantasy Real/ Animated Product Symbols Humorous Execute the Message ©2000 South-Western College Publishing

11. Make Media Decisions Newspapers Major Types of Advertising Media Magazines Radio Television Outdoor Internet Alternative Media ©2000 South-Western College Publishing

12. National Ad Spending for Media--1997 Internet Magazines Yellow Pages Radio Newspapers Outdoor Television ©2000 South-Western College Publishing

13. Newspapers Advantages Disadvantages • Year-round readership • Geographic selectivity • Immediacy • High individual market coverage • Short lead time • Limited demographic selectivity • Little color • May be expensive • Low pass-along rate • Clutter • Mass market medium ©2000 South-Western College Publishing

14. Magazines Advantages Disadvantages • Good reproduction • Demographic selectivity • Regional/local selectivity • Long advertising life • High pass-along rate • Higher cost per contact • Long-term advertiser commitments • Slow audience build-up • Limited demonstration capabilities • Lack of urgency • Long lead time ©2000 South-Western College Publishing

15. Radio Advantages Disadvantages • Selectivity and audience segmentation • Immediate and portable • Geographic flexibility • Entertainment carryover • Short-term ad commitments • No visual treatment • Short advertising life • High frequency to generate retention • Commercial clutter • Background distractions ©2000 South-Western College Publishing

16. Television Advantages Disadvantages • Wide diverse audience • Low cost per thousand • Creative and demonstrative • Immediacy of messages • Entertainment carryover • Demographic selectivity with cable stations • Short life of message • Expensive with high campaign cost • Little demographic selectivity with network • Long-term advertiser commitments • Long lead times • Clutter ©2000 South-Western College Publishing

17. Outdoor Media Advantages Disadvantages • High exposure frequency • Moderate cost • Flexibility • Geographic selectivity • Broad, diverse market • Short message • Lack of demographic selectivity • High “noise” level ©2000 South-Western College Publishing

18. Internet and World Wide Web Advantages Disadvantages • Fast growing • Ability to reach narrow target audience • Short lead time • Moderate cost • Difficult to measure ad effectiveness and ROI • Ad exposure relies on “click through” • Not all consumers have access to internet ©2000 South-Western College Publishing

19. Fax Machines Video Shopping Carts Examples of Alternative Media Computer Screen Savers Interactive Kiosks Ads in Movies and Videos Alternative Media ©2000 South-Western College Publishing

20. Factors Influencing Media Mix Decisions Reach Frequency Audience Selectivity Media Selection Considerations Cost per Contact ©2000 South-Western College Publishing

21. Types of Media Schedules Continuous Media Schedule Flighted Media Schedule Pulsing Media Schedule Seasonal Media Schedule Media Scheduling ©2000 South-Western College Publishing

22. Sales Promotion Sales Promotion Targets ConsumerSales Promotion Trade Sales Promotion ©2000 South-Western College Publishing

23. Immediate Purchases Objectives of Sales Promotion Increase Trial Boost consumer inventory Encourage repurchase Increase ad effectiveness Encourage brand switching Encourage brand loyalty Sales Promotion ©2000 South-Western College Publishing

24. Popular Tools for Consumer Sales Promotion Coupons and Rebates Premiums Loyalty Marketing Programs Contests & Sweepstakes Sampling Point-of-Purchase Promotion Tools for Consumer Sales Promotion ©2000 South-Western College Publishing

25. Type of Buyer Desired Results Sales PromotionExamples Loyal Customers • Reinforce behavior • Increase consumption • Change timing • Loyalty marketing • Bonus packs Competitor’s Customers • Break loyalty • Persuade to switch • Sampling • Sweepstakes, contests, premiums Brand Switchers • Persuade to buy your brand more often • Price-lowering promotion • Trade deals Price Buyers • Appeal with low prices • Supply added value • Coupons, price-offpackages, refunds • Trade deals Consumers & Sales Promotion Goals ©2000 South-Western College Publishing

26. Unique Tools for Trade Sales Promotion Trade Allowances Push Money Training Free Merchandise Store Demonstration Conventions & Trade Shows Tools for Trade Sales Promotion ©2000 South-Western College Publishing

27. Press Relations Product Publicity Corporate Communication Public Affairs Lobbying Employee and Investor Relations Crisis Management Functions of Public Relations ©2000 South-Western College Publishing

28. Product Placement Tools Used By PR Professionals Customer Satisfaction Phone Lines Consumer Education Event Sponsorship Issue Sponsorship Internet Web Sites Major Public Relations Tools New Product Publicity ©2000 South-Western College Publishing