Ppt Chapter 19

Principles of MarketingMKT3010

Chapter 19Advertising, Public

Relations, and Sales Promotions

Patricia Knowles, Ph.D.

Associate ProfessorClemson University 1

2Principles of MarketingMKT3010 2

Advertising, Public Relations, and Sales PromotionsThese are the learning objectives guiding the chapter and will be explored in more detail in the following slides.

Describe the steps in designing and executing an advertising campaign.

Identify three objectives of advertising.

Describe the different ways that advertisers appeal to consumers.

Identify the various types of media.

Identify agencies that regulate advertising.

Describe the elements of a public relations toolkit.

Identify the various types of sales promotions.

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Tropicana PepsiCo’s Tropicana dominates the domestic orange juice market with approximately $1 billion in annual sales. Tropicana wanted to consolidate its market lead by unleashing a new wave of advertising, with costs of $500–$600 million, in a vigorous attempt to gain even more market share.


Courtesy Tropicana Products, Inc.

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Steps in Planning and Executing an Ad Campaign


Identify target audience

Set advertising objectives

Determine the advertising Budget

Convey the message

Evaluate and select media

Create advertisements

Assess impact

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Identify Target Audience


The success of an advertising program depends on how well the advertiser can identify its target audience. Firms conduct research to identify their target audience, then use the information they gain to set the tone for the advertising program and help them select the media they will use to deliver the message to that audience.

Conduct research

Use the information to set the tone

Select the media Getty Images/Comstock Images

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Set Advertising Objectives


The advertising plan must be specific to the identified target audience and include the strategic objectives and tactics to be used. Think about developing an advertising plan for a product you like. What are the objectives of the campaign? How are you going to accomplish those objectives? How will you measure the campaign’s success?

Push StrategyPull Strategy

©Brand X Pictures/PunchStock

©Comstock/PunchStock

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Advertising Objectives


An advertising campaign has three broad objectives: inform, persuade, or remind the target audience.

Inform

Persuade

Remind

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Advertising Objectives


This is a good ad to help the mother and parent feel more “normal” about their older child’s bedwetting issue and persuade them to purchase this product for their child.

Designing an ad for a delicate topic for parents and kids

Courtesy The Procter & Gamble Company

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Iams PetThis ad reminds students about the benefits of Iams. Reminder advertising is used to remind or prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle.

How does this ad inform, persuade, and remind?

©Procter & Gamble.


Informative Advertising What brands would benefit from focusing on informative, persuasive, and reminder advertising? List several brands that enjoy top-of-mind awareness for you (e.g., when you think of a cola, does Coke pop into your head unprompted?).

©TJX Companies, Inc.

• Create and build brand awareness

• Push the consumer through the buying cycle

• Inform customers about upcoming sales events or arrival of new merchandise

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Persuasive Advertising


When a product has gained a certain level of brand awareness, firms use persuasive advertising to motivate consumers to take action.

©The Procter & Gamble Company Used by permission

• Generally occurs in the growth and early maturity stages of the PLC when competition is most intense

• May be used to reposition an established brand in the later stage of the PLC

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Reminder Advertising


Reminder advertising is communication used to remind or prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle.

Used by Permission of Deutsch Inc as Agent for National Fluid Milk Processor Promotion Board

• Communication used to remind or prompt repurchases

• Occurs after the products have gained market acceptance


Focus of Advertisements Most advertising is product focused. However, companies like Exxon-Mobile advertise their commitment to the environment, not their products, to inform, persuade, and remind consumers of positive thoughts about the company, which can prompt the purchase of products and services.

Exxon might be particularly interested in institutional advertising because oil and gas companies are often accused of engaging in practices that are harmful to the environment. Therefore it is important for the firm to stress that they are an environmentally responsible firm to negate some of this criticism.

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Product-Focused Advertisements

Institutional Advertisements

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Social Marketing


Public service advertisements are designed to raise awareness of public welfare issues and receive free airtime, as required by the FCC.

Courtesy of the National Crime Prevention Council, ww.ncpc.org

Public Service Advertising (PSA)

Under Federal Communication Commission

rules, broadcasters must devote a specific amount of

free airtime to PSAs


The AdCouncilWhat issues have you seen “advertised” in PSAs? Are they effective? The AdCouncil creates and distributes most PSAs. This slide shows a campaign for the United Negro College Fund and an anti-bullying initiative.

Courtesy The Advertising Council, Inc. Courtesy The Advertising Council, Inc.

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The TRUTH Takes Hold


As part of the historic tobacco settlement, a fund was created to decrease the incidence of smoking among children and teens. Do the shocking images and text used by the TRUTH campaign work? If you think it does not, why do observers consider the overall campaign a success?

Courtesy American Legacy Foundation

• How to get young consumers to quit smoking?

• Part of the tobacco settlement: “raising generation that would be smoke free”

• TRUTH uses a hard-hitting media campaign

• In your face ads

http://www.youtube.com/watch?v=c4xmFcrJexk


Determining Advertising Budget Setting the promotional budget is not easy, and advertising often is the largest single expenditure in the promotional budget. Thus, firms must carefully weigh the benefits of advertising versus other communications when deciding how much to allocate.

Considerations

Role that advertising plays in their attempt to meet their overall promotional objectives

Expenditures vary over the course of the Product Life Cycle

Nature of the market and the product influence the size of the budget

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Convey the Message


The USP (unique selling proposition) concept conveys core benefits to the target audience. The best USPs stand the test of time; consider examples such as those on the slide. Nokia has been using “connecting people” for a long time; however Verizon tends to change and is currently using “It’s Powerful.”

Unique selling proposition (USP)

Red Bull . . . Gives You Wings

United Negro College Fund . . . A mind is a terrible thing to waste.

Nike . . . Just Do It.

State Farm Insurance . . . Like a good neighbor, State Farm is there

TNT . . . We know drama


The MessageThis is a good example of bringing a very mature product category to life with a creative ad.

CLOROX® is a registered trademark of The Clorox Company. Used with permission.


The AppealAppeals depend on the target audience, chosen media, and type of product/service. Each appeal persuades in different ways. Whereas informational appeals are more cognitive and persuade using rational thought, emotional appeals persuade by triggering an emotional response rather than offering rational arguments. How do the two Febreeze ads vary in their type of appeal and how well does each match the product? Which would make you purchase Febreeze? Why?

Emotional appeal

Informational appeal

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Emotional Appeals in AdvertisingThese appeals therefore focus on feelings about the self. The key to a successful emotional appeal is the use of emotion to create a bond between the consumer and the brand.


Symbols Help to Convey MessagesWhat other symbols do you know for brands? Mr. Clean? Others?

Courtesy Con Agra Foods, Inc.


Evaluate and Select MediaThe ability of any one media outlet to reach a mass audience is declining due to the fragmentation of media and the proliferation of new media outlets. This trend represents a double-edged sword, because fragmenting media have also allowed for very fine targeting in media buys.

Media Planning

Media Mix

Media Buy

©Photodisc/Getty Images The McGraw-Hill Companies, Inc/John Flournoy,

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Ryan McVay/Getty Images Photodisc/Getty Images


Mass and Niche MediaOften firms will use mass media to reach a broad audience with a product message and then choose specific niche media to customize that same message for various audiences. In the McDonald’s Case in Point in chapter 17 we discussed how McDonald’s is using both mass and niche media.

Mass media reach large anonymous audience

Niche media reach a smaller more targeted audience

©Digital Vision/PunchStock

©Digital Vision/PunchStock


Choosing the Right MediumWhat media do you use and under what circumstances do you use them? For example, do you listen to the radio while driving in your car or watch television when you get home at night?

The usage context of each medium affects how marketers design messages for them. For example most people listen to radio in their cars, often by themselves.

Radio is considered a more personal medium, thus marketers often use ads that employ dialogues.

This allows the person to place themselves in the conversation. This same technique cannot be used in print.


Viral Marketing CampaignMany of you will be familiar with the Dove campaign from earlier chapters. If it is near the holiday season – OfficeMax might be running this campaign again. If so, see if you can load up some pictures of people at your university and play it for the students. They will find it very entertaining

Courtesy Office Max


Determine the Advertising ScheduleEvery advertising campaign has a set duration, and during that period, marketers must determine how often and when to show the ads. For a frequently purchased good such as soda, most firms use a continuous strategy. A flighting schedule is often used for seasonal goods since they are only advertised during certain times of the year. A pulsing schedule is used by firms who have certain fluctuations in their demand and need to increase advertising during the periods of high or low demand.

©Procter & Gamble

Continuous Pulsing

Flighting


Create Advertisements Ads attempt to make maximum use of the medium’s ability to deliver the message. There are benefits and limitations for each of the various media. For example, television enables advertisers to combine imagery, movement, and music, whereas radio must rely solely on sound to deliver the message.

Ads

The type of medium

determines the execution style

Creativity plays a major role in the execution stage

Creativity should not overshadow

the messageThe execution style

must match the medium and

objectives


Eukanuba AdThis print Ad for Eukanuba is using humor to deliver the selling message. The text copy “Feeling & Looking This Good Outside Starts On The Inside” informs consumers of the benefits of Eukanuba.

©Procter & Gamble

What appeal is being used in this advertisement?

Is this ad effective in delivering the selling message?


Assess Impact Using Marketing MetricsSay that you have been assigned to assess the impact of a campaign for a new perfume. The goal of the campaign is to increase awareness of the brand within a chosen target market by 20% over the campaign. What measures would you need to take to ensure that the campaign is remaining on track? You could design a tracking study that measures sales, website visits and sample requests generated over the course of the campaign. You also might measure awareness levels of the target market at various stages of the campaign.

Pretesting

Tracking

Protesting


Check Yourself

1. What are the steps involved in planning an ad campaign?

2. What are the differences between informational, persuasive, and reminder advertising?

3. What are the pros and cons of the different media types?

4. How can the effectiveness of advertising be evaluated?


Regulatory and Ethical Issues in AdvertisingAdvertising regulation exists on federal, state, and local levels and a host of self-regulatory agencies oversee various forms of advertising. Unlike in many European countries, puffery is legal in the United States. Generally these claims are so outrageous that no rational consumer would believe them.


PufferyCould puffery ever be considered deceptive? If so, how should we draw the line between puffery and deception? The line between puffery and deception is a fine one. Obvious exaggerations are not the problem it is the more subtle issues that create the problem. The line is currently drawn by the FTC which determines how many individuals hold a false belief as a result of an advertising. It is a very gray area of advertising law.

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Public RelationsCompanies involved with cause related marketing often generate a lot of PR.


Check Yourself

1. Why do companies utilize public relations as part of their IMC strategy?

2. What are the elements of a public relations toolkit?


Sales Promotions Remind students that as advertising has decreased as a portion of total marketing communications budgets, sales promotions have increased. Promotions can be used to stimulate sales by either the end user consumers or to stimulate channel members to sell more of a given product/service. If focused on the end user, the promotion is using a “pull strategy.” If focused on channel members, it is using a “push strategy.”

Courtesy Payless Shoe Source, Inc.

• Can be targeted at either the end user consumers or channel members

• Can be used in either push or pull strategies


Types of Sales PromotionSales promotions occur either in conjunction with an advertising campaign or as a stand-alone component of a marketing communications plan. In either case, they must be consistent with the brand image. Which ones do you think are the most effective and why? Which ones have you used in the past week? Month?

Promotion Advantages Disadvantages

Coupons • Stimulates demand. • Allows for direct tracing of sales.

• Has low redemption rates.• Has high cost.

Deals • Encourages trial. • Reduces consumer risk. • May reduce perception of value.

Premiums • Builds goodwill. • Increases perception of value.

• Consumers buy for premium, not product.• Has to be carefully managed.

Contests • Increases consumer involvement. • Generates excitement.

• Requires creativity.• Must be monitored.

Sweepstakes • Increases involvement with the product. • Sales often decline after the sweepstakes is over.

Samples • Encourages trial. • Offers direct involvement. • Has high cost to the firm.

Loyalty Programs • Creates loyalty. • Encourages repurchase. • Has high cost to the firm.

POP Displays • Provides high visibility. • Encourages brand trial.

• Is difficult to get a good location in the store.• Can be costly to the firm.

Rebates • Stimulates demand. • Increases value perception.

• Is easily copied by competitors.• May just advance future sales.

Product Placement • Displays products nontraditionally. • Demonstrates product uses.

• Firm often has little control over display.• Product can be overshadowed.


Sales PromotionThis ad represents a demonstration. The promotion encourages consumers to increase their level of interest by offering demonstration of the coffee maker.

• What form of sales promotion is represented in this ad?

• Do you feel it is an effective promotion?

Courtesy Nestlé SA


Using Sales Promotion ToolsIn recent years, firms have become more creative in the types of promotions used. As a child, did you collect promotions in Happy Meals or other children’s products? The Happy Meal for years was McDonald’s most successful product, primarily driven by the children’s desire for the toy inside. Many of the happy meal toys have become sought after collectibles. The Beanie Baby promotions a number of years ago was so successful that McDonald’s literally ran out of the featured item for the week within hours of its initial distribution.

Cross-promoting

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Cross Promotion An ad for IAMS and a coupon for Petsmart – an good example of co-marketing.

Courtesy PetSmart, Inc


Evaluated Sales Promotions Using Marketing Metrics Many sales promotion opportunities undertaken by retailers are initiated by manufacturers.

Realized margin

Cost of additional inventory

Potential increase in sales

Long-term impact

Potential loss from switches from more profitable items

Additional sales by customers


Check Yourself

1. What are various forms of sales promotions?

2. What factors should a firm consider when evaluating a sales promotion?

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Glossary


An advertising plan is a subsection of the firm’s overall marketing plan that explicitly analyzes the marketing and advertising situation, identifies the objectives of the advertising campaign, clarifies a specific strategy for accomplishing those objectives, and indicates how the firm can determine whether the campaign was successful.

A continuous advertising schedule runs steadily throughout the year and therefore is suited to products and services that are consumed continually at relatively steady rates and that require a steady level of persuasive and/or reminder advertising.

A flighting advertising schedule is implemented in spurts, with periods of heavy advertising followed by periods of no advertising.

Institutional advertisements inform, persuade, and remind consumers about issues related to places, politics, an industry, or a particular corporation.

Media buy is the actual purchase of airtime or print pages.

The media mix is the combination of the media used and the frequency of advertising in each medium.

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Glossary


Media planning is the process of evaluating and selecting the media mix that will deliver a clear, consistent, compelling message to the intended audience.

Product-focused advertisements focus on informing, persuading, or reminding customers about a specific product or service.

Public service advertising (PSA) focuses on public welfare and generally is sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups.

A pull strategy is a strategy in which the goal is to get consumers to pull the product into the supply chain by demanding it.

A pulsing advertising schedule combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods.

A push strategy is designed to increase demand by focusing on wholesalers, distributors, or sales people.