Advertising, Sales Promotion, and Public Relations: Major Decisions and Roles

1. Chapter 15 Advertising, Sales Promotion, and Public Relations

2. Learning Goals • Know the major decisions involved in developing an advertising program. • Learn how sales promotion campaigns are developed and implemented. • Learn how companies use public relations to communicate with their publics. • Understand the roles of advertising, sales promotion, and public relations in the promotion mix.

3. Learning Goals • Know the major decisions involved in developing an advertising program. • Learn how sales promotion campaigns are developed and implemented. • Learn how companies use public relations to communicate with their publics. • Understand the roles of advertising, sales promotion, and public relations in the promotion mix.

4. Definition • Advertising • Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

5. Mac vs PC

6. Advertising • Signage in ancient times offers evidence of early advertising. • Modern ad spending tops $245 billion in U.S. annually, $498 billion worldwide. • Business firms, not-for-profit, social agencies, and professionals all advertise.

8. In 2005 in Turkey One of the indicators of improvement in advertising sector is number of new ads of firms and brands other one is the number of ads in total. Last year 717 brands advertised for the first time. • In total 13,810,636 second of ads were run • TV shows were taking the lead. National TV shows in total had 10,335,659 seconds of ads. Foreign TV shows in total had 5,726,725 seconds of ads. • Number 1 was (with syndications) "Çocuklar Duymasın“ It was aired 382 times and had 515,073 seconds of ads. • Number 2 was "En Son Babalar Duyar". It was aired 366 times and had 469,754 seconds of ads.

9. Cities

10. Flavors

12. Major Advertising DecisionsFigure 15.1

13. Setting objectives Setting the budget Developing the advertising strategy Evaluating advertising campaigns Advertising objectives can be classified by primary purpose: Inform Introducing new products Persuade Becomes more important as competition increases Comparative advertising Remind Most important for mature products Advertising Key Decisions

14. Kleenex is a well-known brand. The purpose of this ad is to remind the consumer.

15. Setting objectives Setting the budget Developing the advertising strategy Evaluating advertising campaigns Methods of budget setting were listed in chapter 14 Several factors should be considered when setting the ad budget: Stage in the PLC Market share Level of competition Ad clutter Degree of brand differentiation Advertising Key Decisions

16. Setting objectives Setting the budget Developing the advertising strategy Evaluating advertising campaigns Creative challenges Advertising clutter TiVo and PVR’s Creating ad messages Message strategy Creative concept or Big Idea Advertising appeal Message execution Many execution styles Tone, format, illustration, headline, copy Advertising Key Decisions

17. Slice of Life Lifestyle Fantasy Mood or Image Musical Personality Symbol Technical Expertise Scientific Evidence Demonstration Advertising Creative Execution Styles • Testimonial Evidence or Endorsement

18. Slice of Life Execution Style

19. Apple Uses a ____________ +

20. Crest Whitestrips Uses a __________ +

21. Use of Music

22. Use of Fear

24. Message Source Marketers hire celebrities as spokespersons to add excitement to the source of the message

26. Setting objectives Setting the budget Developing the advertising strategy Evaluating advertising campaigns Select advertising media Decide on level of reach, frequency and impact Choose among the major media types by considering: Consumer media habits, nature of the product, types of messages, and costs Select specific media vehicles Decide on media timing Advertising Key Decisions

27. Newspapers Television Direct Mail Radio Magazines Outdoor Advertising Major Media Types • Internet

28. Media Selection What media types make sense for Segway Scooters? Why?

29. Setting objectives Setting the budget Developing the advertising strategy Evaluating advertising campaigns Measuring communications effect Copy testing Measuring sales effect Compare past sales with past advertising expenditures Experiments Advertising Key Decisions

30. Evaluating Advertising L.L. Bean is evaluating the different elements of the marketing mix to determine which led to this website visit 15 - 30 Marketing in Action

31. Measuring Online Advertising Effectiveness • Concerns are growing regarding the effectiveness of television, especially with the rise of TiVo. • While the overall Ad Industry grows at about 8% per year, Internet advertising is growing by 29%. • The effectiveness of ads on television are difficult to measure, as opposed to the Internet where feedback is instant and the customers leave trails. 15 - 31 Marketing in Action Source: Advertising Age

32. Measuring Online Advertising Effectiveness • Web tracking software enables marketers to analyze the effectiveness of their online efforts. • WebTrends is one of many companies whose products provide web analytics to optimize your marketing and advertising campaigns. Click on report to visit website 15 - 32 Marketing in Action

33. Advertising • Organizing the Advertising Function • Small vs. large companies • Nature of advertising agencies • Advantages of advertising agencies • Consolidation and growth of agencies • Creative boutiques

34. Advertising • Advertising to International Markets • Standardizing worldwide advertising • Advantages include lower advertising costs, greater global advertising coordination, and consistent global image • Drawbacks include ignoring differences in culture, demographics, and economic conditions • Most marketers think globally but act locally

37. Learning Goals • Know the major decisions involved in developing an advertising program. • Learn how sales promotion campaigns are developed and implemented. • Learn how companies use public relations to communicate with their publics. • Understand the roles of advertising, sales promotion, and public relations in the promotion mix.

38. Definition • Sales Promotion • Sales promotions are short-term incentives to encourage the purchase or sale of a product or service.

39. Sales Promotion • Sales Promotions • Can be targeted at final buyers, retailers and wholesalers, business customers, and members of the sales force. • The use of sales promotions has been growing rapidly. • 78% are to the trade with 22% to end consumers

40. Sales Promotion • Objectives -- Consumer Promotions: • Increase short-term sales or long-term market share • Generate product trial • Objectives -- Trade Promotions: • Obtaining distribution and shelf space • Encouraging retailers to advertise the brand • Objectives -- Sales Force Promotions: • Signing up new accounts

41. Samples Coupons Cash Refunds (Rebates) Price packs (cents-off deals) Advertising Specialties Premiums Patronage Rewards Point-of-Purchase Communications Contests, Games, and Sweepstakes Sales Promotion Consumer Promotion Tools

43. Sales Promotion This print ad is combined with a consumer sales promotion 15 - 43

45. Sales Promotion • Trade Promotion Tools • Discounts (also called price-off, off-list, and off-invoice) • Allowances • Advertising allowances • Display allowances • Free goods • Push money • Specialty advertising items

46. Sales Promotion • Business Promotion Tools • Includes many of the same tools used in consumer and trade promotions • Two additional tools: • Conventions and trade shows • Sales contests

47. Sales Promotion • Key Decisions When Developing the Sales Promotion Program: • Size of the incentive • Conditions for participation • Promotion and distribution of the actual sales promotion program • Length of the promotional program • Evaluation

48. Learning Goals • Know the major decisions involved in developing an advertising program. • Learn how sales promotion campaigns are developed and implemented. • Learn how companies use public relations to communicate with their publics. • Understand the roles of advertising, sales promotion, and public relations in the promotion mix.

49. Definition • Public Relations: • 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.

50. Press Releases are Important for Public Safety Concerns The News Reports The P.R. Response 15 - 50 Marketing in Action