Chapter 15 & 16

1. Chapter 15 & 16 • Advertising and Public Relations (CH15) • Sales Promotion (Chapter 16)

2. What is Advertising? Advertising is Any Paid Form of Nonpersonal Presentation and Promotion of Ideas, Goods, or Services by an Identified Sponsor.

3. Major Advertising Decisions • Message Decisions • Message Strategy • Message Execution • Objectives Setting • Communication objectives • Sales Objectives • Budget Decisions • Affordable Approach • Percent of sales • Competitive parity • Objective and task • Campaign Evaluation • Communication Impact • Sales Impact • Media Decisions • Reach, Frequency, Impact • Major Media Types • Specific Media Types • Media Timing

4. Setting Advertising Objectives Comparison Advertising Compares One Brand to Another i.e. Avis vs. Hertz Reminder Advertising Keeps Consumers Thinking About a Product i.e. Coca-Cola Informative Advertising Inform Consumers or Build Primary Demand i.e CD Players Persuasive Advertising Build Selective Demand i.e Sony CD Players Advertising Objective Specific Communication Task Accomplished with a Specific Target Audience During a Specific Period of Time

5. Setting the Promotion Budget Objective-and-Task Based on Determining Objectives & Tasks, Then Estimating Costs Percentage of Sales Based on a Certain Percentage of Current or Forecasted Sales Competitive-Parity Based on the Competitor’s Promotion Budget Affordable Based on What the Company Can Afford After Determining Its Advertising Objectives, the Marketer Must Set the Advertising Budget for Each Product and Market. (From Chapter 14)

6. Setting the Advertising Budget • Factors to be considered when setting the advertising budget: • Stage in the product life cycle, • Market share, • Competition and clutter, • Product differentiation.

7. Developing Advertising Strategy Creating the Advertising Selecting the Advertising Media Messages Advertising Strategy Consists of Two Major Elements and Companies are Realizing the Benefits of Planning These Two Elements Jointly.

8. Advertising Appeals Meaningful Believable Distinctive Creative Concept “Big Idea” Visualization or Phrase Combination of Both Developing Advertising Strategy: Creating Ad Messages Develop a Message Focus on Customer Benefits Plan a Message Strategy General Message to Be Communicated to Customers

9. Developing Advertising Strategy: Message Execution Typical Message Execution Styles Mood or Image Musical Lifestyle Scientific Evidence Fantasy Technical Expertise Personality Symbol Slice of Life Testimonial Evidence Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest.

10. Advertising Strategy:Selecting Advertising Media Step 2. Choosing Among Major Media Types Media Habits of Target Consumers, Nature of the Product, Types of Message, Cost Step 3. Selecting Specific Media Vehicles Specific Media Within a Given Type, i.e. Magazines. Must Balance Media Cost Against Media Factors: Audience Quality & Attention, Editorial Quality Step 1. Decide on Reach, Frequency, and Impact Step 4. Deciding on Media Timing Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing

11. Evaluating Advertising Communication Effects Is the Ad Communicating Well? Sales Effects Is the Ad Increasing Sales? Advertising Program Evaluation

12. What is Sales Promotion ? Sales Promotion is a Mass Communication Technique That Offers Short-Term Incentives to Encourage Purchase or Sales of a Product or Service. Offers Reasons to Buy Now.

13. Rapid Growth of Sales Promotion • Sales promotion can take the form of consumer promotions, business promotions, trade promotions or sales force promotions. • Rapid growth in the industry has been achieved because: • Product managers are facing more pressure to increase their current sales, • Companies face more competition, • Advertising efficiency has declined, • Consumers have become more deal oriented.

14. Sales Promotion Objectives • Increase short-term sales or help build long-term market share. • Get retailers to: • carry new items and more inventory, • advertise products, • give products more shelf space, and • buy product ahead. • In general, sales promotion should focus on consumer relationship building.

15. Savings when purchasing specified products Reduced prices marked on the label or package Goods offered free or low cost as an incentive to buy a product Articles imprinted with an advertiser’s name given as gifts Advertising Specialties Major Consumer Sales Promotion Tools Price Packs Premiums Coupons Sample Cash Refunds Trial amount of a product Refund of part of the purchase price

16. Major Consumer Sales Promotion Tools Consumers submit their names for a drawing Cash or other rewards for the use of a certain product Displays and demonstrations that take place at the point of sale Presents consumers with something every time they buy Sweepstakes Patronage Rewards Point-of-Purchase Game Contests Consumers submit an entry to be judged

17. Trade-Promotion Tools Persuade Retailers or Wholesalers to Carry a Brand Promote a Brand in Advertising Major Trade Sales Promotion Tools Push a Brand to Consumers Give a Brand Shelf Space Discounts Allowances Trade-Promotion Objectives

18. Business-Promotion Tools Major Business Sales Promotion Tools Generate Business Leads Motivate Salespeople Reward Customers Stimulate Purchases Sales Contests Trade Shows Conventions Business-Promotion Objectives

19. Developing the Sales Promotion Program Determine How to Promote and Distribute the Promotion Program Determine the Length of the Program Decide on the Size of the Incentive Set Conditions for Participation Evaluate the Program

20. What is Public Relations? Public Relations Involves Building Good Relations With the Company’s Various Publics by Obtaining Favorable Publicity, Building Up a Good Corporate Image, and Handling or Heading Off Unfavorable Rumors, Stories, and Events.

21. Public Relations Departments May Perform Any of All of the Following Functions: Major Public Relations Functions Investor Relations Public Affairs Lobbying Press Relations or Agentry Development Product Publicity

22. Major Public Relations Tools News Web Site Speeches Public Service Activities Special Events Corporate Identity Materials Written Materials Audiovisual Materials

23. Major Public Relations Decisions Choosing the Public Relations Messages and Vehicles Evaluating Public Relations Results Setting Public Relations Objectives Implementing the Public Relations Plan