© 2000 South-Western College Publishing 1 CHAPTER SIXTEEN ADVERTISING, SALES PROMOTION AND PUBLIC RELATIONS Prepared by Jack Gifford Miami University (Ohio)

© 2000 South-Western College Publishing

1

CHAPTER SIXTEEN

ADVERTISING, SALES PROMOTION AND

PUBLIC RELATIONS

Prepared by Jack Gifford

Miami University (Ohio)


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ADVERTISING AND THE CONSUMER

Advertising affects everyone’s lives and influences many purchases.

Consumers turn to advertising for its informativeness as well as its entertainment value

The average American watches 72 minutes of commercials on TV per day


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ADVERTISING AND BRAND LOYALTY

Consumers with a high degree of brand loyalty are least susceptible to the influence of advertising for competing goods and services.

Advertising also reinforces positive attitudes toward brands


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ADVERTISING AND PRODUCT ATTRIBUTES

Advertising can affect the way consumers rank a brand’s attributes, such as color, taste, smell, and texture

Advertising can also influence the order in which these attitudes are valued and the relative magnitude of the attribute importance


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MAJOR TYPES OF ADVERTISING

Institutional

advertising

Product

advertising

Promotes the corporation as a whole

Designed to influence corporate identity

Is not usually action-oriented

Promotes good corporate citizenship

May take the form of advocacy advertisements of controversial issues


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MAJOR TYPES OF ADVERTISING

Institutional

advertising

Product

advertising

Promotes the benefits of a specific good or service

Usually immediate action-oriented

Includes pioneering, competitive and comparative advertising


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MAJOR TYPES OF ADVERTISING: PRODUCT ADVERTISING (CONTINUED)

Pioneering advertising Stimulate primary

demand for a new product

First stage of the product life cycle

Generate attention and interest

Primarily informational

Competitive advertising Used during growth stage

of product life cycle Promote brand preference Persuade and remind

Comparative advertising Must not make false or

misleading statements (FTC)

Legality and strength of message is different around the globe


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CREATING AN ADVERTISING CAMPAIGN

Is a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals

Is related to a specific product or service and runs for a defined period of time

DETERMINE CAMPAIGN

OBJECTIVES

MAKE CREATIVE AND MEDIA DECISIONS

EVALUATE THE CAMPAIGN


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MAJOR TYPES OF ADVERTISING: PRODUCT ADVERTISING (CONTINUED)

Pioneering advertising Stimulate primary

demand for a new product

First stage of the product life cycle

Generate attention and interest

Primarily informational

Competitive advertising Used during growth stage

of product life cycle Promote brand preference Persuade and remind

Comparative advertising Must not make false or

misleading statements (FTC)

Legality and strength of message is different around the globe


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Is a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals

Is related to a specific product or service and runs for a defined period of time

DETERMINE CAMPAIGN

OBJECTIVES




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DETERMINE CAMPAIGN

OBJECTIVES



Identify specific communication task

Identify specific target market(s)

Define period, desired outcomes, and how these outcomes will be measured

DAGMAR = Define Advertising Goals for Measured Advertising Results


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DETERMINE CAMPAIGN

OBJECTIVES



Creative and media decision must work together

Identify product benefits; “People buy holes, not drills”

Give the customer a reason to buy your product

Create a unique selling position


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DETERMINE CAMPAIGN

OBJECTIVES



Execute the message & media AIDA: Attention,

Interest, Desire, Action

Select one or more execution styles listed on the following “page”


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EXECUTIONAL STYLES FOR ADVERTISING

Slice-of-lifeLifestyleSpokesperson /

testimonialFantasyHumorousReal / animated

product symbols

Mood or imageDemonstrationMusicalScientific Different combinations of

the above are effective in different parts of the world


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MAKING MEDIA DECISIONS

0 10 20 30 40 50

Magazines

Newspapers

Outdoor media

Television

Radio

Yellow pages

Internet

National Spending in 1997


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MAKING MEDIA DECISIONS: MEDIA TYPES

Newspapers (20.6%) Geographical flexibility Timelines Often a local media High use of horizontal and

vertical cooperative advertising

Short lead time required Short-term advertiser

commitments Year-round readership


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Magazines (16.2%) Good reproduction Demographic and regional

selectivity Relatively long advertising

life High pass along rate Cost per contact is relatively

high


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Radio (3.0%) Selectivity and audience

segmentation Low cost per contact Short life of message Portable media/drive-time

audience Making a comeback in

popularity


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Television (45.0%) Reach wide, diverse

audience Low cost per thousand Creative opportunities and

flexibility (video & audio) Immediacy of message Entertainment carryover Demographic selectivity

with cable Infomercials


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Outdoor media (1.7%) Billboards, transit signs,

Signs in sports centers, etc. Flexible, low-cost,

geographic selectivity High exposure frequency Growing in popularity and

innovativeness


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MAKING MEDIA DECISIONS: MEDIA TYPES Internet and the World Wide

Web Huge growth Widely used search engines Used for business-to-business

marketing 10:1 today Many new innovations and

technologies Entrepreneurial opportunities

Alternative media: CD-ROM, kiosks, movies

http://www.amazon.com


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MEDIA SELECTION AND SCHEDULING CONSIDERATIONS

Media selection considerations Cost per contact Reach and frequency Audience selectivity

Media scheduling Continuous media

schedule Flighted vs pulsing

media scheduling Seasonal media

scheduling


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EVALUATION OF THE ADVERTISING CAMPAIGN

Measuring outcomes against goals and objectives

Pre and post campaign analysisDifficulties in measurement Interaction and effect over timeCumulative impact Imperfect measurement tools


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SALES PROMOTIONS

Sales Promotions are marketing communication activities, other than advertising, personal selling and public relations, in which a short-term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or adding value.

•Contests and sweepstakes

•Coupons and rebates

•Sampling

•Fashion shows

•Entertainment

•Premiums

•Special incentives, like trips, free goods, etc.

•Loyalty programs


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SALES PROMOTIONS: OBJECTIVES AND AUDIENCES

Objectives Stimulate immediate

action Modify behavior and

increase loyalty Reward performance Reinforce existing

behavior Stimulate repeat

purchases

Audiences Consumer sales

promotions (the ultimate consumer market)

Trade sales promotions (members of the marketing channel, such as wholesalers or retailers)

Tools include...


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TRADE SALES PROMOTIONS INCLUDE...

Trade allowances Push money Training Free merchandise Store demonstrations Business meetings,

conventions, and trade shows

Special prizes for performance

One week vacation for top salesperson and family to Disney World


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PUBLIC RELATIONS

Evaluates public attitudes of stakeholders Identifies issues that may elicit public

concernExecutes programs to…

Gain public acceptanceChange public perceptions Counter negative events


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SALES PROMOTIONS TARGETED AT WHOLESALERS AND RETAILERS

Major Forms: Trade shows

International, national or regional

Acts as a marketplace for intermediaries

Usually category specific (boats, men’s apparel, electronics, etc.)


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Major Forms: Trade shows Contests

Motivate sales force Increase sales levels Generate excitement

and extra earning opportunities

Persuade sales people to push your line over other similar lines


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Major Forms: Trade shows Contests Point-of-purchase

displays

Capture prime locations within store

Acts as a silent salesperson

Stimulate Attention Interest Desire Action


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displays Cooperative

advertising and promotional programs

Share cost of promotional activities Vertical cooperative

advertising (M-W-,M-R,W-R)

Horizontal cooperative advertising (R-R,W-W, M-M)


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displays Cooperative

advertising and promotional programs

Allowances

Price reductions Rebates Free Goods Demonstration products


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SALES PROMOTIONS TARGETED AT ULTIMATE CONSUMERS

Product sampling Cents-off coupons Rebates Contests & sweepstakes Premiums Multi-purchase offers Point-of-purchase

materials Product placements

Reach new customers by inducing trial use New products New brands Sample size

Distributed to… Homes Retail settings Wherever people are

gathered


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Product sampling Cents-off coupons

Increase short-term sales

Attract new users Stimulate heavier

usage Encourage brand

switching Distributed in-store,

by mail, and via the Internet


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Product sampling Cents-off coupons Rebates

Money back from the manufacturer

Encourage multiple purchases (3 box tops)

Low cost of distribution (on package)


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Product sampling Cents-off coupons Rebates Contests & sweepstakes

Become winners based upon chance

Heavily regulated Encourage repeat

purchases to increase chance of winning


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Product sampling Cents-off coupons Rebates Contests & sweepstakes Premiums

Free or at a reduced price if another product, the key brand, is purchased Collect a set of glasses Frequent Flyer

Programs Brand loyalty programs


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Product sampling Cents-off coupons Rebates Contests & sweepstakes Premiums Multi-purchase offers

Two-for-one deals Encourages bigger

than normal purchases

Helps maintain customer loyalty


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materials(POP)

Banners, pamphlets, coasters, napkins, matches

In-store videos Shopping cart

“billboards”


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materials Product placements

Product or company that appears within a movie or TV show


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PUBLIC RELATIONS AND PUBLICITY

Public Relations is the managerial activity that identifies, establishes, and maintains beneficial relationships between a company and its many stakeholders

Publicity is one means of accomplishing public relations Involves a third party Is free Limited control over content


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PUBLICITY

News Releases Press conferences Staged newsworthy

events Photo opportunities

Armed forces air shows to generate recruits and

positive public support


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PUBLICITY

Written news releases and videos provided to media

Appearances of spokespersons

Participation on talk shows

Provision of apparel for famous people


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PUBLICITY

Event Sponsorship Sporting events and

charity causes Provide financial

resources, equipment, personal services and/or facilities

Positive image through association ©Speedo Invitational Swim

Meet


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PUBLIC RELATIONS AND CRISIS MANAGEMENT

PR effort that urgently requires dissemination of information about an emergency Product recall Takeover rumors Corporate accidents (fires,

environmental accidents, etc.)


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EVALUATING AND MONITORING PUBLIC RELATIONS

Requires a systematic gathering of information for a company’s many publics

Maintenance of image benchmarks

Maintaining the corporate and public

pulse!

Documents

© 2000 South-Western College Publishing 1 CHAPTER SIXTEEN ADVERTISING, SALES PROMOTION AND PUBLIC RELATIONS Prepared by Jack Gifford Miami University (Ohio)