Kotler15 Basic

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Kotler15 Basic

  1. 1. Advertising, Sales Promotion, and Public Relations Chapter 15
  2. 2. Learning Goals <ul><li>Understand the roles of advertising, sales promotion, and public relations in the promotion mix. </li></ul><ul><li>Know the major decisions involved in developing an advertising program. </li></ul><ul><li>Learn how sales promotion campaigns are developed and implemented. </li></ul><ul><li>Learn how companies use public relations to communicate with their publics. </li></ul>
  3. 3. <ul><li>Located in Coconut Grove, FL </li></ul><ul><li>Winner of several creative awards </li></ul><ul><li>Known for guerrilla tactics, unconventional media and holistic marketing strategies </li></ul><ul><li>Often suggests changes in the client’s procedures, products and processes to enhance brand image </li></ul><ul><li>Clients include Virgin Airline, MINI cars, Ikea furniture, Molson beer, Truth and Burger King </li></ul>Case Study Crispin Porter & Bogusky
  4. 4. Definition <ul><li>Advertising </li></ul><ul><ul><li>Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. </li></ul></ul>Goal 1: Understand the roles of advertising, sales promotion and public relations
  5. 5. Advertising <ul><li>Signage in ancient times offers evidence of early advertising. </li></ul><ul><li>Modern ad spending tops $245 billion in U.S. annually, $498 billion worldwide. </li></ul><ul><li>Business firms, not-for-profit, social agencies, and professionals all advertise. </li></ul>Goal 1: Understand the roles of advertising, sales promotion and public relations
  6. 6. Advertising <ul><li>Setting objectives </li></ul><ul><li>Setting the budget </li></ul><ul><li>Developing the advertising strategy </li></ul><ul><li>Evaluating advertising campaigns </li></ul><ul><li>Advertising objectives can be classified by primary purpose: </li></ul><ul><ul><li>Inform </li></ul></ul><ul><ul><ul><li>Introducing new products </li></ul></ul></ul><ul><ul><li>Persuade </li></ul></ul><ul><ul><ul><li>Becomes more important as competition increases </li></ul></ul></ul><ul><ul><ul><li>Comparative advertising </li></ul></ul></ul><ul><ul><li>Remind </li></ul></ul><ul><ul><ul><li>Most important for mature products </li></ul></ul></ul>Key Decisions Goal 2: Know the major decisions involved in developing an advertising program
  7. 7. Advertising <ul><li>Setting objectives </li></ul><ul><li>Setting the budget </li></ul><ul><li>Developing the advertising strategy </li></ul><ul><li>Evaluating advertising campaigns </li></ul><ul><li>Methods of budget setting were listed in chapter 14 </li></ul><ul><li>Several factors should be considered when setting the ad budget: </li></ul><ul><ul><li>Stage in the PLC </li></ul></ul><ul><ul><li>Market share </li></ul></ul><ul><ul><li>Level of competition </li></ul></ul><ul><ul><li>Ad clutter </li></ul></ul><ul><ul><li>Degree of brand differentiation </li></ul></ul>Key Decisions Goal 2: Know the major decisions involved in developing an advertising program
  8. 8. Advertising <ul><li>Setting objectives </li></ul><ul><li>Setting the budget </li></ul><ul><li>Developing the advertising strategy </li></ul><ul><li>Evaluating advertising campaigns </li></ul><ul><li>Creative challenges </li></ul><ul><ul><li>Advertising clutter </li></ul></ul><ul><ul><li>TiVo and PVR’s </li></ul></ul><ul><li>Creating ad messages </li></ul><ul><ul><li>Message strategy </li></ul></ul><ul><ul><ul><li>Creative concept or Big Idea </li></ul></ul></ul><ul><ul><ul><li>Advertising appeal </li></ul></ul></ul><ul><ul><li>Message execution </li></ul></ul><ul><ul><ul><li>Many execution styles </li></ul></ul></ul><ul><ul><ul><li>Tone, format, illustration, headline, copy </li></ul></ul></ul>Key Decisions Goal 2: Know the major decisions involved in developing an advertising program
  9. 9. Advertising <ul><li>Slice of Life </li></ul><ul><li>Lifestyle </li></ul><ul><li>Fantasy </li></ul><ul><li>Mood or Image </li></ul><ul><li>Musical </li></ul><ul><li>Personality Symbol </li></ul><ul><li>Technical Expertise </li></ul><ul><li>Scientific Evidence </li></ul>Creative Execution Styles <ul><li>Testimonial Evidence or Endorsement </li></ul>Goal 2: Know the major decisions involved in developing an advertising program
  10. 10. Advertising <ul><li>Setting objectives </li></ul><ul><li>Setting the budget </li></ul><ul><li>Developing the advertising strategy </li></ul><ul><li>Evaluating advertising campaigns </li></ul><ul><li>Select advertising media </li></ul><ul><ul><li>Decide on level of reach, frequency and impact </li></ul></ul><ul><ul><li>Choose among the major media types by considering: </li></ul></ul><ul><ul><ul><li>Consumer media habits, nature of the product, types of messages, and costs </li></ul></ul></ul><ul><ul><li>Select specific media vehicles </li></ul></ul><ul><ul><li>Decide on media timing </li></ul></ul>Key Decisions Goal 2: Know the major decisions involved in developing an advertising program
  11. 11. Advertising <ul><li>Newspapers </li></ul><ul><li>Television </li></ul><ul><li>Direct Mail </li></ul><ul><li>Radio </li></ul><ul><li>Magazines </li></ul><ul><li>Outdoor </li></ul>Major Media Types <ul><li>Internet </li></ul>Goal 2: Know the major decisions involved in developing an advertising program
  12. 12. Advertising <ul><li>Setting objectives </li></ul><ul><li>Setting the budget </li></ul><ul><li>Developing the advertising strategy </li></ul><ul><li>Evaluating advertising campaigns </li></ul><ul><li>Measuring communications effects </li></ul><ul><ul><li>Copy testing </li></ul></ul><ul><li>Measuring sales effect </li></ul><ul><ul><li>Compare past sales with past advertising expenditures </li></ul></ul><ul><ul><li>Experiments </li></ul></ul>Key Decisions Goal 2: Know the major decisions involved in developing an advertising program
  13. 13. Advertising <ul><li>Organizing the Advertising Function </li></ul><ul><ul><li>Small vs. large companies </li></ul></ul><ul><ul><li>Nature of advertising agencies </li></ul></ul><ul><ul><ul><li>Advantages of advertising agencies </li></ul></ul></ul><ul><ul><ul><li>Consolidation and growth of agencies </li></ul></ul></ul><ul><ul><ul><li>Creative boutiques </li></ul></ul></ul>Goal 2: Know the major decisions involved in developing an advertising program
  14. 14. Advertising <ul><li>Advertising to International Markets </li></ul><ul><ul><li>Standardizing worldwide advertising </li></ul></ul><ul><ul><ul><li>Advantages include lower advertising costs, greater global advertising coordination, and consistent global image </li></ul></ul></ul><ul><ul><ul><li>Drawbacks include ignoring differences in culture, demographics, and economic conditions </li></ul></ul></ul><ul><ul><li>Most marketers think globally but act locally </li></ul></ul>Goal 2: Know the major decisions involved in developing an advertising program
  15. 15. Definition <ul><li>Sales Promotion </li></ul><ul><ul><li>Sales promotions are short-term incentives to encourage the purchase or sale of a product or service. </li></ul></ul>Goal 3: Learn how sales promotion campaigns are developed and implemented
  16. 16. Sales Promotion <ul><li>Sales Promotions </li></ul><ul><ul><li>Can be targeted at final buyers, retailers and wholesalers, business customers, and members of the sales force. </li></ul></ul><ul><ul><li>The use of sales promotions has been growing rapidly. </li></ul></ul><ul><ul><li>78% are to the trade with 22% to end consumers. </li></ul></ul>Goal 3: Learn how sales promotion campaigns are developed and implemented
  17. 17. Sales Promotion <ul><li>Objectives – Consumer Promotions: </li></ul><ul><ul><li>Increase short-term sales or long-term market share </li></ul></ul><ul><ul><li>Generate product trial </li></ul></ul><ul><li>Objectives – Trade Promotions: </li></ul><ul><ul><li>Obtaining distribution and shelf space </li></ul></ul><ul><ul><li>Encouraging retailers to advertise the brand </li></ul></ul><ul><li>Objectives – Sales Force Promotions: </li></ul><ul><ul><li>Signing up new accounts </li></ul></ul>Goal 3: Learn how sales promotion campaigns are developed and implemented
  18. 18. Sales Promotion <ul><li>Samples </li></ul><ul><li>Coupons </li></ul><ul><li>Cash Refunds (Rebates) </li></ul><ul><li>Price packs (cents-off deals) </li></ul><ul><li>Advertising Specialties </li></ul><ul><li>Premiums </li></ul><ul><li>Patronage Rewards </li></ul><ul><li>Point-of-Purchase Communications </li></ul><ul><li>Contests, Games, and Sweepstakes </li></ul>Consumer Promotion Tools Goal 3: Learn how sales promotion campaigns are developed and implemented
  19. 19. Sales Promotion <ul><li>Trade Promotion Tools </li></ul><ul><ul><li>Discounts (also called price-off, off-list, and off-invoice) </li></ul></ul><ul><ul><li>Allowances </li></ul></ul><ul><ul><ul><li>Advertising allowances </li></ul></ul></ul><ul><ul><ul><li>Display allowances </li></ul></ul></ul><ul><ul><li>Free goods </li></ul></ul><ul><ul><li>Push money </li></ul></ul><ul><ul><li>Specialty advertising items </li></ul></ul>Goal 3: Learn how sales promotion campaigns are developed and implemented
  20. 20. Sales Promotion <ul><li>Business Promotion Tools </li></ul><ul><ul><li>Includes many of the same tools used in consumer and trade promotions </li></ul></ul><ul><ul><li>Two additional tools: </li></ul></ul><ul><ul><ul><li>Conventions and trade shows </li></ul></ul></ul><ul><ul><ul><li>Sales contests </li></ul></ul></ul>Goal 3: Learn how sales promotion campaigns are developed and implemented
  21. 21. Sales Promotion <ul><li>Key Decisions When Developing the Sales Promotion Program: </li></ul><ul><ul><li>Size of the incentive </li></ul></ul><ul><ul><li>Conditions for participation </li></ul></ul><ul><ul><li>Promotion and distribution of the actual sales promotion program </li></ul></ul><ul><ul><li>Length of the promotional program </li></ul></ul><ul><ul><li>Evaluation </li></ul></ul>Goal 3: Learn how sales promotion campaigns are developed and implemented
  22. 22. Definition <ul><li>Public Relations: </li></ul><ul><ul><li>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. </li></ul></ul>Goal 4: Learn how companies use public relations
  23. 23. Public Relations <ul><li>Press Relations </li></ul><ul><li>Product Publicity </li></ul><ul><li>Public Affairs </li></ul><ul><li>Lobbying </li></ul><ul><li>Investor Relations </li></ul><ul><li>Development </li></ul>Public Relations Functions Goal 4: Learn how companies use public relations
  24. 24. Public Relations <ul><li>Role and Impact of Public Relations </li></ul><ul><ul><li>Strong impact on public awareness at lower cost than advertising </li></ul></ul><ul><ul><li>Greater credibility than advertising </li></ul></ul><ul><ul><li>Publicity is often underused </li></ul></ul><ul><ul><li>Good public relations can be a powerful brand-building tool </li></ul></ul>Goal 4: Learn how companies use public relations
  25. 25. Public Relations <ul><li>News </li></ul><ul><li>Speeches </li></ul><ul><li>Buzz Marketing </li></ul><ul><li>Corporate Identity Materials </li></ul><ul><li>Mobile Marketing </li></ul><ul><li>Special Events </li></ul><ul><li>Written Materials </li></ul><ul><li>Audiovisual Materials </li></ul><ul><li>Public Service Activities </li></ul><ul><li>Internet </li></ul>Public Relations Tools Goal 4: Learn how companies use public relations

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