Chapter 19

19-1
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CHAPTER
Advertising, Public
Relations, and Sales
Promotions
19
McGraw-Hill/Irwin Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.

19-2
L E A R N I N G O B J E C T I V E S
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.
Advertising, Public Relations,
and Sales Promotions
LO1
LO2
LO3
LO4
LO5
LO6
LO7

19-3
Tropicana
Courtesy Tropicana Products, Inc.

19-4
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
Advertising Age Website

19-5
Identify Target Audience
Conduct research
Use the information to set
the tone
Select the media
Getty Images/Comstock Images

19-6
Set Advertising Objectives
Push strategyPull strategy
©Brand X Pictures/PunchStock
©Comstock/PunchStock

19-7
Advertising Objectives
Inform
Persuade
Remind

19-8
Advertising Objectives
Designing an ad for a
delicate topic for
parents and kids
Courtesy The Procter & Gamble Company

19-9
Iams Pet
How does this ad
inform, persuade, and
remind?
©Procter & Gamble.

19-10
Informative Advertising
 Create and build brand
awareness
 Push the consumer
through the buying cycle
 Inform customers about
upcoming sales events or
arrival of new
merchandise
©TJX Companies, Inc.

19-11
Persuasive Advertising
 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
©The Procter & Gamble Company Used by permission

19-12
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

19-13
Product-focused
advertisements
Institutional
advertisements
Focus of Advertisements
©2000Image100Ltd

19-14
Social Marketing
Public Service
Advertising (PSA)
Under Federal
Communication Commission
rules, broadcasters must
devote a specific amount of
free airtime to PSAs
Courtesy of the National Crime Prevention Council, ww.ncpc.org

19-15
The AdCouncil
Courtesy The Advertising Council, Inc. Courtesy The Advertising Council, Inc.

19-16
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
Courtesy American Legacy Foundation

19-17
Determining Advertising Budget
Super Bowl Ads
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

19-18
Convey the Message
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

19-19
The Message
CLOROX® is a registered trademark of The Clorox Company. Used with permission.

19-20
The Appeal
Emotional appeal
Informational appeal
©Procter&Gamble
©Procter&Gamble

19-21
Emotional Appeals in Advertising

19-22
Symbols Help to Convey Messages
Courtesy Con Agra Foods, Inc.

19-23
Evaluate and Select Media
Media planning
Media mix
Media buy
©Photodisc/Getty Images The McGraw-Hill Companies,
Inc/John Flournoy,
photographer
Ryan McVay/Getty Images Photodisc/Getty Images

19-24
Mass and Niche Media
Mass media reach large
anonymous audience
Niche media reach a
smaller more targeted
audience
©Digital Vision/PunchStock
©Digital Vision/PunchStock

19-25
Choosing the Right Medium

19-26
Viral Marketing Campaign
Courtesy Office Max

19-27
Determine the Advertising Schedule
Continuous
Pulsing
Flighting
©Procter & Gamble

19-28
Create Advertisements
Ads
The type of
medium
determines the
execution style
Creativity plays
a major role in
the execution
stage
Creativity
should not
overshadow
the message
The execution
style must
match the
medium and
objectives

19-29
What appeal is being used
in this advertisement?
Is this ad effective in
delivering the selling
message?
©Procter & Gamble

19-30
Assess Impact
Using Marketing Metrics
Pretesting
Tracking
Protesting

19-31
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?
CHECK YOURSELF

19-32
Regulatory and Ethical Issues
in Advertising

19-33
Puffery
©BillAron/PhotoEdit

19-34
Public Relations
TOMS Shoes Website

19-35
1. Why do companies utilize public relations as
part of their IMC strategy?
2. What are the elements of a public relations
toolkit?
CHECK YOURSELF

19-36
Sales Promotions
 Can be targeted at
either the end user
consumers or channel
members
 Can be used in either
push or pull strategies
Courtesy Payless Shoe Source, Inc.

19-37
Types of Sales Promotion
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.

19-38
Sales Promotion
What form of sales
promotion is represented
in this ad?
Do you feel it is an
effective promotion?
Courtesy Nestlé SA

19-39
Using Sales Promotion Tools
Cross-promoting
TheMcGraw-HillCompanies,Inc./
JohnFlournoy,photographer
The McGraw-Hill Companies, Inc./ Ken Karp, photographer

19-40
Cross Promotion
Courtesy PetSmart, Inc

19-41
Evaluated Sales Promotions
using Marketing Metrics
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

19-42
1. What are various forms of sales promotions?
2. What factors should a firm consider when
evaluating a sales promotion?
CHECK YOURSELF

19-43
Return to slide
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

19-44
Return to slide
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

19-45
Return to slide
A flighting advertising schedule is implemented
in spurts, with periods of heavy advertising
followed by periods of no advertising.
Glossary

19-46
Return to slide
Institutional advertisements inform, persuade,
and remind consumers about issues related to
places, politics, an industry, or a particular
corporation.
Glossary

19-47
Return to slide
Media buy is the actual purchase of airtime or
print pages.
Glossary

19-48
Return to slide
The media mix is the combination of the media
used and the frequency of advertising in each
medium.
Glossary

19-49
Return to slide
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

19-50
Return to slide
Product-focused advertisements focus on
informing, persuading, or reminding customers
about a specific product or service.
Glossary

19-51
Return to slide
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

19-52
Return to slide
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

19-53
Return to slide
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

19-54
Return to slide
A push strategy is designed to increase demand
by focusing on wholesalers, distributors, or
sales people.
Glossary

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