Chapter 16: Advertising, Sales Promotion, and Public Relations

Objectives
  • •Understand the roles of advertising, sales promotion, and public relations in the promotion mix.
  • •Know the major decisions involved in developing an advertising program.
 
 

 

Objectives
  • •Learn how sales promotion campaigns are developed and implemented.
  • •Learn how companies use public relations to communicate with their publics.
 
 

 

Please Open The Following Figures In Different Windows and Leave Them Open:
 Animated Figure 16-1 , Animated Table 16-1 , Animated Table 16-2

 

 

Case Study

AFLAC
  • •A few years ago, only 13% of U.S. recognized AFLAC
  • •Old ads: “warm and fuzzy” similar to other insurance ads
  • •Goal:  break through advertising clutter
 

 
  • •1999: AFLAC developed the “duck” campaign to enhance brand awareness
  • •Incredibly successful: name recognition is now 91%; sales growth of 30% each year campaign has run

 

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

 

Advertising
  • •Signage in ancient times offers evidence of early advertising.
  • •Modern ad spending tops $231 billion in U.S. annually, $500 billion worldwide.
  • •Business firms, not-for-profit, social agencies, and professionals all advertise.
 

 

Advertising

Key Decisions

  • •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

  • •Setting objectives
  • •Setting the budget
  • •Developing the advertising strategy
  • •Evaluating advertising campaigns
 
  • •Methods of budget setting were listed in chapter 15
  • •Several factors should be considered when setting the ad budget:
  1. §Stage in the PLC
  2. §Market  share
  3. §Level of competition
  4. §Ad clutter
  5. §Degree of brand differentiation
 

 

 

Advertising

Key Decisions

  • •Setting objectives
  • •Setting the budget
  • •Developing the advertising strategy
  • •Evaluating advertising campaigns
 

 

 
  • •Creative challenges
  1. §Media fragmentation
  2. §Soaring media costs
  3. §Advertising clutter
  • •Creating ad messages
  • §Message strategy
  1. vCreative concept
  2. Advertising appeal
  • §Message execution
  1. vMany execution styles
  2. Tone, format, illustration,
    v headline, copy
     

 

 

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

 

Advertising

Key Decisions

  • •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:
  1. Consumer media habits, nature of the product, types of messages, and costs
  • §Select  specific media vehicles
  • §Decide on media timing

 

Advertising

Major Media Types
  • •Newspapers
  • •Television
  • •Direct Mail
 

 
  • •Radio
  • •Magazines
  • •Outdoor
 

 

  • •Internet

 

Advertising

Key Decisions

  • •Setting objectives
  • •Setting the budget
  • •Developing the advertising strategy
  • •Evaluating advertising campaigns
 

 

 
•Measuring communications effects
  1. §Copy testing
  2. §Consumer recall
  3. §Product awareness
  4. §Product knowledge
  5. §Product preference
•Measuring sales effect
  1. §Past vs. current  sales comparison
  2. §Experimentation
 

 

 

Advertising
•Organizing the Advertising Function
  • §Small vs. large companies
  • §Nature of advertising agencies
  1.  Advantages of advertising agencies
  2.  Departments
  3.  Compensation
  4.  Changes in agency services
 
 

 

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
 
 

 

Definitions
•Sales Promotion
  • §Sales Promotions are short-term incentives to encourage the purchase or sale of a product or service.
 
 

 

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.
 
 

 

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

 

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

 

 

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

 

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

 

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
  •  Surveys and experiments can be used
 

 

 

Definitions
•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.
 

 

 

Public Relations

Public Relations Functions
  • •Press Relations
  • •Product Publicity
  • •Public Affairs
 
  • •Lobbying
  • •Investor Relations
  • •Development
 

 

Public Relations
•Role and Impact of Public Relations
  • §Advantages:
  1.  Strong impact on public awareness at
     lower cost than advertising
  2.  Greater credibility than advertising
  • §Publicity is often underused
  • §Good public relations can be a powerful brand-building tool
 

 

 

Public Relations
Public Relations Tools
  • •News
  • •Speeches
  • •Corporate Identity Materials
  • •Mobile
    Marketing
 
  • •Special Events
  • •Written Materials
  • •Audiovisual Materials
  • •Public Service Activities
 

 

 Chapter 16: Advertising, Sales Promotion, and Public Relations

 

Study Guide
  • Concepts Check

 

Study Guide
  • Concepts Challenge

 

 
  • Chapter Outline

 

 
  • Video Case

 

 
  • PowerPoint Express - kotler16_exs.PPT            
  • Chapter 16 Power point

 

 

 

See the full chapter at

Principles of Marketing by Kotler & Armstrong  Try Two Chapters! (active Book) (Course) Principles of Marketing (activebook 2.0 ), 10/e (Kotler, Armstrong). Chapter 1: Marketing: Managing Profitable Customer Relationships. Chapter 16: Advertising, Sales Promotion, and Public Relations

 

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 Chapter 16: Advertising, Sales Promotion, and Public Relations

Animated Figure 16-1 , Animated Table 16-1 , Animated Table 16-2

PowerPoint Express - kotler16_exs.PPT            

Chapter 16 Power point

See the full chapter at

Principles of Marketing by Kotler & Armstrong  Try Two Chapters! (active Book) (Course) Principles of Marketing (activebook 2.0 ), 10/e (Kotler, Armstrong). Chapter 1: Marketing: Managing Profitable Customer Relationships. Chapter 16: Advertising, Sales Promotion, and Public Relations