Advertising, Sales Promotion, and Public Relations

1. Advertising, Sales Promotion, and Public Relations

2. Chapter Objectives • Define advertising • types of advertising • advertising campaigns • evaluating advertising

3. Chapter Objectives • sales promotion • trade and consumer sales promotions • public relations • public relations campaigns

4. EXTREME MAKEOVER: HOME EDITION 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. ROCK THE VOTE 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. WWW.PRICELESS.COM 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. LEO BURNETT WORLDWIDE Who Creates Advertising? • Advertising campaign: • a coordinated, comprehensive plan • that carries out promotion objectives • results in a series of ads • placed in media • over a period of time

9. Who Creates Advertising? • Limited-service agency • Full-service agency • Account management • Creative services • Research and marketing services • Media planning Motorola Video

10. Figure 13.1: Steps for Advertising Campaigns

11. Steps in Developing an Advertising Campaign • Step 1: • Identify the target audiences • Step 2: • Establish message objectives • budget objectives

12. Steps in Developing an Advertising Campaign • Step 3: Design the Ads • Creative strategy: • process that turns a concept into an advertisement

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

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

15. 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

16. Step 5: Choose the Media Types and Media Schedule • Media planning: • develops media objectives, strategies and tactics • Aperture: • is the best place and time to reach the target market

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

18. Where to Say It: Internet advertising • Banners • Buttons • Search engine and directory listings • Pop-up ads • Email • Spamming • Permission marketing

19. 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

20. Media Scheduling: When To Say It • Impressions: • measures number of people • exposed to a message • in one or more vehicles

21. Figure 13.3:Media Schedule for a Video Game

22. Media Scheduling: When To Say It (cont’d) • Reach: • measures % 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

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

24. 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

25. Step 6:Evaluate the Advertising • Post-testing: • research on consumers’ responses to advertising they have seen or heard • Unaided recall • Aided recall

26. 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

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

28. SMARTSOURCE.COM Sales Promotion DirectedToward Consumers • Price-Based Consumer Sales Promotion • Coupons • Price deals, refunds, and rebates • Frequency (loyalty/continuity) programs • Special/bonus packs

29. FREESAMPLES.COM Sales Promotion DirectedToward Consumers (cont’d) • Attention-getting consumer promotion • Contests and sweepstakes • Premiums • Sampling • Point-of-purchase promotion • Product/brand placements • Cross-promotion

30. 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.

31. 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.

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

33. 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

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

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

36. THE END

37. BZZAGENT.COM 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.

38. 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.

39. Discussion • Some people say advertising is obnoxious, insults their intelligence, and promotes claims that are untrue. • Others argue it provides value for consumers. --What are some arguments on each side? --How do you feel about advertising?

40. Discussion • Chevy found that DIY advertising programs can sometimes backfire when consumers created anti-SUV TV commercials. • --Should companies avoid DIY campaigns? • --What are the benefits of DIY advertising?

41. Group Activity • As an account team for an advertising agency, your group has been assigned a new line of high- quality, high-priced makeup. • Consider different types of appeals: • USP Comparative advertising • Fear appeal Celebrity endorsement • Slice-of-life ad Sex appeal • Humor • Outline the strengths and weaknesses of each of these appeals for advertising the makeup.

42. Discussion • When Internet travel company Hotels.nl began using blankets on sheep for advertising, one town fined the company for ignoring a ban on advertising along the highways. • --What are the positive and negative aspects for companies of using sheep, or even horses and cows, to advertise products? For consumers?

43. Discussion • Through TV remotes, DVDs, computers, and cable television, technology gives today’s consumers control over the advertising images they see. • --How has this affected the advertising industry so far? • --How do you think consumer control will affect advertising in the future?

44. Discussion • Companies sometimes teach consumers a “bad lesson” by overusing sales promotion. • As a result, consumers expect the product always to be “on sale.” • --What are some products for which this bad lesson has occurred? • --How can companies prevent it?

45. Group Project • Your group works for a firm producing several brands of household cleaning products. • --Develop recommendations for trade and consumer sales promotion activities for a new laundry detergent • --In a role-playing situation, present and defend your recommendations to your boss.

46. Discussion • Some critics denounce PR specialists, calling them “flacks” or “spin doctors” whose job is to hide the truth about a company’s problems • What is the proper role of PR within an organization? • Should PR specialists try to put a good face on bad news?

47. Group Activity • As PR professionals employed by your university, your group must develop strategies for improving your school’s PR program. --Write a memo to your university president with your recommendations.

48. 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?

49. 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?

50. Marketing Plan Exercise • Think about one of the following: • A new brand of toothpaste • Your local city or state • Your university • 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