Advertising, Sales Promotion, & Public Relations

Marketing

Chapter 16

AdvertisingPaid, non personal communication through

various media

Growth in the number of multinational corporations

Types of Advertising

Product• non personal selling of a good or service

Institutional• promoting a concept, an idea, philosophy, or

the goodwill of an industry, company, organization, person, or government agency.

• It is closely related to public relations

Product & Institutional Ad

Advertising Objectives Informative

• Develop initial demand for a good Persuasive

• Develop demand for an existing good• Used during the growth and early part of the

maturity stages Reminder

• Reinforce previous promotion• Keep the name in front of the public

A Reminder Ad

Advertising Strategies

Comparative• Direct or indirect promotional

comparisons with competitive

brands

Celebrity testimonials• Improve product recognition and credibility• Spokesperson must be credible source of information

Advertising Strategies (cont.)

Retail• All advertising by stores that sell directly to the

consumer• Cooperative

• Sharing advertising costs between the retailer• Usually half and half

Advertising Strategies (cont.)

Interactive• Web page• Banner ads on web (click here)• Video screens on grocery carts• Changing electronic signs on taxis• Kiosks• Text Messaging

Creating an Advertisement

Research• To create better ads

Objectives Message

• Customer benefits; meaningful, believable, distinctive appeal

• Ad campaign – combines the ad with a single theme via different media

Creating an Advertisement (cont)

Developing & Preparing Ads

An advertisement should: gain attention and interest inform and/or persuade eventually lead to buying action

• Often neglected

Creating an Advertisement (cont.)

Major elements of a print ad:

Headline Illustration - 65% Body copy Signature

• Company name, phone, slogan, trademark

Media Selection Television (network, national, local and cable)

• Advantages - mass coverage, repetition, flexibility, and prestige

• Disadvantages - high cost and fragmentation of the message

• Objective of media selection- to reach the target audience without advertising beyond the identifiable limits of the potential market.

Media Selection (cont.)

Radio (network, national, and local)• Advantages - immediacy, low cost,

flexibility, practical and low-cost audience selection, and mobility

• Disadvantages - fragmentation of the message, temporary nature of the message, and less research information that for television

Newspapers (largest advertising medium)• Advantages - flexibility, community

prestige, intensive coverage, reader control of exposure, coordination with national advertising

• Disadvantages - short life span, hasty reading, and poor reproduction

Circuit CityNewspaperInsert

A Free Standing Insert From Circuit City -- One of the Top Five Newspaper Advertisers in the U.S.

Copyright © 2001 by Harcourt, Inc. All rights reserved.

Magazines • Advantages - selectivity of target markets,

quality reproduction, long life, and prestige• Disadvantages - high priced and long lead time

Figure 16.8 – Targeting Different Consumer Interests through Magazine Advertising

Success MagazineMagazine’s Ad Targeting Entrepreneurs

Copyright © 2001 by Harcourt, Inc. All rights reserved.

Direct Mail - (sales letters, postcards, leaflets,

folders, broadsides, booklets, catalogs, and house organs)• Advantages - selectivity, intensive coverage,

speed, format inflexibility, complete information, and personalized

• Disadvantages - high cost, dependence on the quality of the mailing list, and people’s annoyance with it.

Outdoor advertising (posters, billboards,painted bulletins or displays, and electric spectaculars)• Advantages - communication of quick and

simple ideas, and repetition• Good in high traffic areas

• Disadvantages - brevity and public concern

Interactive MediaEnhances two way communication & encourages

audience participation

E-mail – cheaper than direct mail Web sites Kiosks Internet Commercial on-line services

Other Media

Transit advertising – subways, buses, taxis, car wrapping

Cinema advertising – growing T-shirts, ball fields, floors Directory advertising - Advertisement on hot air balloons, blimps,

banners behind airplanes

Media Scheduling

Reach - # of different people exposed to ad Frequency - # of times the people are exposedReach X Frequency = gross rating point

Advertising Agencies

Marketing specialist firm used to assist advertisers in planning & implementing advertising programs• Paid by media commission

Public Relations

Refers to the firm’s communications relationships with customers, suppliers,

stockholders, employees, the government, and the general public.

Publicity is not paid for by an identified sponsor

Measuring Effectiveness

Pre-testing• Assess the ads effectiveness before it appears

Post-testing• Less effective than pre-testing because of cost

efficiency• Unaided recall• Split runs

Ethics in Non-Personal Selling

Cookies• Text files that are automatically downloaded

when a site is visited Puffery & Deception

• Exaggerated claims of a product’s superiority Unethical Sales Promotion & PR

• Not fulfilling rebate offers• Bribery