Lecture M: Marketing (4/e) - Chapter 18: Advertising, public relations, and sales promotions

Chapter 18: Advertising, public relations, and sales promotions. After reading this chapter, you should be able to: 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,...

advertising,  public relations, 

and sales promotions

eighteen

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LO 18-1 Describe the steps in designing and

executing an advertising campaign.

LO 18-2 Identify three objectives of advertising.

LO 18-3 Describe the different ways that

advertisers appeal to consumers.

LO 18-4 Identify the various types of media.

LO 18-5 Identify agencies that regulate advertising.

LO 18-6 Describe the elements of a public relations

toolkit.

Getty Images/Comstock Images

Set Advertising Objectives

Push strategy Pull strategy

©Brand X Pictures/PunchStock

©Comstock/PunchStock

Advertising Objectives

Informative Advertising

awareness

through the buying cycle

upcoming sales events

or arrival of new

merchandise

©TJX Companies, Inc.

growth and early

maturity stages of the

PLC when competition

is most intense

reposition an

established brand in the

later stage of the PLC

©The Procter & Gamble Company Used by permission

Reminder Advertising

• Communication used to remind or prompt repurchases

• Occurs after the products have gained market acceptance

Used by Permission of Deutsch Inc as Agent for National

Fluid Milk Processor Promotion Board

Product-focused advertisements

Determining Advertising Budget

Super Bowl Ads

Convey the Message

Evaluate and Select Media

Choosing the Right Medium

Medium Advantages Disadvantages

Television Wide reach.

Incorporates sound and video. High cost.A lot of channel and program options.

May increase awareness of competitors’ products.

Radio Relatively inexpensive.

Can be selectively targeted.

Wide reach.

No video, which limits presentation.

Consumers give less focused attention than TV.

Exposure periods are short.

Magazines Very targeted.

Subscribers pass along to others. Relatively inflexible.Takes some time for the magazine to be available.

Newspapers Flexible.

Timely.

Able to localize.

Can be expensive in some markets.

Advertisements have short life span.

Internet Can be linked to detailed content.

Highly flexible and interactive.

Allows for specific targeting.

Becoming cluttered.

The ad may be blocked by software on the computer.

Outdoors Relatively inexpensive.

Offers opportunities for repeat exposure.

Is not easily targeted.

Has placement problems in some markets.

Exposure time is very short.

Direct

Marketing

Is highly targeted.

Allows for personalization.

Cost can vary depending on type of direct marketing used Traditional media, like mail, will be more expensive than newer media.

Determine the Advertising Schedule

Create Advertisements

Using Marketing Metrics

persuasive, and reminder advertising?

types?

evaluated?

in Advertising

Federal Agency General Purpose Specific Jurisdiction

Federal Trade Commission

(FTC) (established 1914) Enforces federal consumer protection laws Enforces truth in advertising laws; defines deceptive and unfair

Enforces restrictions on broadcasting material that promotes lotteries (with some exceptions); cigarettes, little cigars, or smokeless tobacco products; or that perpetuates a fraud Also enforces laws that prohibit or limit obscene, indecent,

or profane language.

Food and Drug

Administration (1930) Regulates food, dietary supplements, drugs, cosmetics,

medical devices (including radiation emitting devices such as cell phones), biologics (biological

Regulates package labeling and inserts, definition of terms such as

“light” and “organic,” and required disclosure statements (warning labels, dosage requirements,

Public Relations

TOMS Shoes Website

PR Element Function

Publications: Brochures, special-purpose

single-issue publications such as books

Inform various constituencies about the activities

of the organization and highlight specific areas of expertise.

Video and audio: Programs, public service

announcements

Highlight the organization or support related marketing efforts.

cause-Annual reports Give required financial performance data and

inform investors and others about the unique activities of the organization.

Media relations: Press kits, news releases,

speeches, event sponsorships

Generate news coverage of the organization’s activities or products/services.

Electronic media: Websites, e-mail campaigns Websites can contain all the previously mentioned

toolbox elements, while e-mail directs PR efforts

to specific target groups.

check yourself



• Why do companies use public relations as

part of their IMC strategy?

• What are the elements of a public relations

toolkit?

Types of Sales Promotion

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.

using Marketing Metrics

• What factors should a firm consider when

evaluating a sales promotion?

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

Glossary

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18­27

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

Glossary

A flighting advertising schedule is implemented

in spurts, with periods of heavy advertising

followed by periods of no advertising

Glossary

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18­29

Institutional advertisements inform, persuade,

and remind consumers about issues related to

places, politics, an industry, or a particular

corporation

Glossary

Media buy is the actual purchase of airtime or

print pages

Glossary

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18­31

The media mix is the combination of the media

used and the frequency of advertising in each

medium

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

Glossary

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18­33

Product-focused advertisements focus on

informing, persuading, or reminding customers

about a specific product or service

Glossary

Public service advertising (PSA) focuses on

public welfare and generally is sponsored by

nonprofit institutions, civic groups, religious

organizations, trade associations, or political

groups

Glossary

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18­35

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

Glossary

A pulsing advertising schedule combines the

continuous and flighting schedules by maintaining

a base level of advertising but increasing

advertising intensity during certain periods

Glossary

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18­37

A push strategy is designed to increase demand

by focusing on wholesalers, distributors, or sales

people

Glossary