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Chapter 17 MKT120 Advertising, PR & Sales

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Chapter 17 MKT120 Advertising, PR & Sales

  1. 1. ADVERTISING, PUBLIC RELATIONS, AND SALES PROMOTIONS M marketing 17 GREWAL / LEVYMcGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
  2. 2. Learning Objectives LEARNING OBJECTIVES How do firms plan advertising campaigns? Why do firms advertise and engage in public relations What appeals do advertisers use? How do firms determine which media to use? What legal and ethical issues are of concern to advertisers? Why do firms integrate public relations into their IMC strategy? How do sales promotions supplement a firm’s IMC strategy? 17-2
  3. 3. Steps in Planning an Ad Campaign Advertising Age Website 17-3
  4. 4. Set Advertising ObjectivesPull strategyPull strategy Push strategy Push strategy 17-4
  5. 5. Advertising Objectives 17-5
  6. 6. Designing an ad for a delicate topic for parents and kids 17-6
  7. 7. Museum of Modern Art, NY 17-7
  8. 8. Informative Advertising Communicates to create and build brand awareness Retailers aim to push the consumer through the buying cycle to final purchase Often used to inform customers about upcoming sales events or arrival of new merchandise 17-8
  9. 9. Persuasive Advertising Generally occurs in the growth and early maturity stages of the Product Life Cycle when competition is most intense May be used to reposition an established brand in the later stage of the Product Life Cycle 17-9
  10. 10. Reminder Advertising  Communication used to remind or prompt repurchases  Occurs after the products have gained market acceptance 17-10
  11. 11. Focus of AdvertisementsProduct-focusedProduct-focused Institutional Institutionaladvertisements advertisements advertisements advertisements 17-11
  12. 12. Social Marketing 17-12
  13. 13. The AdCouncil 17-13
  14. 14. The TRUTH Takes Hold 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 TRUTH Campaign Commercial 17-14
  15. 15. Convey the MessageUnique selling proposition (USP) Verizon…….It’s the Network Nokia…..Connecting People 17-15
  16. 16. Creative Advertisements 17-16
  17. 17. Symbols Help to Convey Messages 17-17
  18. 18. Evaluate and Select Media 17-18
  19. 19. Mass and Niche Media Mass media reach Mass media reach large anonymous large anonymous audience audienceNiche media reach a smallerNiche media reach a smaller more targeted audience more targeted audience 17-19
  20. 20. Viral Marketing Campaign 17-20
  21. 21. Determining Advertising Budget 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 17-21
  22. 22. Choosing the Right Medium 17-22
  23. 23. Create Advertisements 17-23
  24. 24. 17-24
  25. 25. Assess Impact 17-25
  26. 26. Puffery 17-26
  27. 27. Public Relations TOMS Shoes Website 17-27
  28. 28. Regulatory and Ethical Issues in Advertising 17-28
  29. 29. Sales Promotions  Can be targeted at either the end user consumers or channel members  Can be used in either push or pull strategies 17-29
  30. 30. Types of Sales Promotion 17-30
  31. 31. Sales Promotion 17-31
  32. 32. Using Sales Promotion ToolsCross-promotingCross-promoting 17-32
  33. 33. Cross Promotion 17-33
  34. 34. The Gap What is The Gap’s current strategy? How does it differ from previous campaigns? How is it similar? Gap Commercial 17-34
  35. 35. The difference between advertising and publicity is that publicity is:A. more effective.B. is almost always used in conjunction with consumer satisfaction surveys.C. not a paid form of marketing communication.D. designed to remind consumers while advertising is used to interview consumers.E. is designed for selective demand and not universalF. demand. 17-35
  36. 36. The three objectives of advertising are to: A. create, stimulate, or ignore. B. beg, borrow, or steal. C. pay, buy, or barter. D. inform, persuade, or remind. E. push, pull, or sell. 17-36
  37. 37. Primary vs. Selective Demand 17-37
  38. 38. “We are your local university” ad campaign is a(n) ________________ campaign. A. product focused B. consumer generated C. primary demand D. institutional advertising E. continuous coupon deal 17-38
  39. 39. Check Yourself1. What are the steps involved in planning an ad campaign?2. What is the difference between informational, persuasive and reminder advertising?3. What are the pros and cons of the different media types? 17-39
  40. 40. “You have tried the rest; now try the best!” is an example of advertising:A. simplicity.B. streaming.C. puffery.D. selectivity.E. sincerity. 17-40
  41. 41. Check Yourself1. Why do companies utilize public relations as part of their DML strategy?2. What are the elements of a public relations toolkit? 17-41
  42. 42. Check Yourself1. What are various forms of sales promotions? 17-42
  43. 43. The AppealInformational appeal Informational appeal Emotional appeal Emotional appeal 17-48
  44. 44. Determine the Advertising Schedule 17-49