Ppt Chapter 19

Principles of Marketing
MKT3010
Chapter 19
Advertising, Public
Relations, and Sales
Promotions
Patricia Knowles, Ph.D.
Associate Professor
Clemson University 1

2
MKT3010
2
Advertising, Public Relations, and Sales
Promotions
These are the learning objectives guiding the chapter and will be explored in more detail in the
following slides.
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.
LO1
LO2
LO3
LO4
LO5
LO6
LO7

33
Tropicana
PepsiCo’s Tropicana dominates the domestic orange juice market with approximately $1 billion
in annual sales. Tropicana wanted to consolidate its market lead by unleashing a new wave of
advertising, with costs of $500–$600 million, in a vigorous attempt to gain even more market
share.
MKT3010
Courtesy Tropicana Products, Inc.

44
Steps in Planning and Executing an Ad
Campaign
MKT3010
Identify target audience
Set advertising objectives
Determine the advertising Budget
Convey the message
Evaluate and select media
Create advertisements
Assess impact

55
Identify Target Audience
MKT3010
The success of an advertising program depends on how well the advertiser can identify its
target audience. Firms conduct research to identify their target audience, then use the
information they gain to set the tone for the advertising program and help them select the media
they will use to deliver the message to that audience.
Conduct research
Use the information to set the tone
Select the media Getty Images/Comstock Images

66
Set Advertising Objectives
MKT3010
The advertising plan must be specific to the identified target audience and include the strategic
objectives and tactics to be used. Think about developing an advertising plan for a product you
like. What are the objectives of the campaign? How are you going to accomplish those
objectives? How will you measure the campaign’s success?
Push StrategyPull Strategy
©Brand X Pictures/PunchStock
©Comstock/PunchStock

77
Advertising Objectives
MKT3010
An advertising campaign has three broad objectives: inform, persuade, or remind the target
audience.
Inform
Persuade
Remind

88
Advertising Objectives
MKT3010
This is a good ad to help the mother and parent feel more “normal” about their older child’s
bedwetting issue and persuade them to purchase this product for their child.
Designing an ad for a delicate
topic for parents and kids
Courtesy The Procter & Gamble Company

99
MKT3010
Iams Pet
This ad reminds students about the benefits of Iams. Reminder advertising is used to remind or
prompt repurchases, especially for products that have gained market acceptance and are in the
maturity stage of their life cycle.
How does this ad inform,
persuade, and remind?
©Procter & Gamble.

1010
MKT3010
Informative Advertising
What brands would benefit from focusing on informative, persuasive, and reminder advertising?
List several brands that enjoy top-of-mind awareness for you (e.g., when you think of a cola,
does Coke pop into your head unprompted?).
©TJX Companies, Inc.
• Create and build brand awareness
• Push the consumer through the buying cycle
• Inform customers about upcoming sales
events or arrival of new merchandise

1111
Persuasive Advertising
MKT3010
When a product has gained a certain level of brand awareness, firms use persuasive
advertising to motivate consumers to take action.
©The Procter & Gamble Company Used by permission
• 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

1212
Reminder Advertising
MKT3010
Reminder advertising is communication used to remind or prompt repurchases, especially for
products that have gained market acceptance and are in the maturity stage of their life cycle.
Used by Permission of Deutsch Inc as Agent for
National Fluid Milk Processor Promotion Board
• Communication used to remind or prompt
repurchases
• Occurs after the products have gained
market acceptance

1313
MKT3010
Focus of Advertisements
Most advertising is product focused. However, companies like Exxon-Mobile advertise their
commitment to the environment, not their products, to inform, persuade, and remind consumers
of positive thoughts about the company, which can prompt the purchase of products and
services.
Exxon might be particularly interested in institutional advertising because oil and gas companies
are often accused of engaging in practices that are harmful to the environment. Therefore it is
important for the firm to stress that they are an environmentally responsible firm to negate some
of this criticism.
©2000Image100Ltd
Product-Focused
Advertisements
Institutional
Advertisements

1414
Social Marketing
MKT3010
Public service advertisements are designed to raise awareness of public welfare issues and
receive free airtime, as required by the FCC.
Courtesy of the National Crime Prevention
Council, ww.ncpc.org
Public Service
Advertising (PSA)
Under Federal
Communication Commission
rules, broadcasters must
devote a specific amount of
free airtime to PSAs

1515
MKT3010
The AdCouncil
What issues have you seen “advertised” in PSAs? Are they effective? The AdCouncil creates
and distributes most PSAs. This slide shows a campaign for the United Negro College Fund and
an anti-bullying initiative.
Courtesy The Advertising Council, Inc. Courtesy The Advertising Council, Inc.

1616
The TRUTH Takes Hold
MKT3010
As part of the historic tobacco settlement, a fund was created to decrease the incidence of
smoking among children and teens. Do the shocking images and text used by the TRUTH
campaign work? If you think it does not, why do observers consider the overall campaign a
success?
Courtesy American Legacy Foundation
• 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

1717
MKT3010
Determining Advertising Budget
Setting the promotional budget is not easy, and advertising often is the largest single
expenditure in the promotional budget. Thus, firms must carefully weigh the benefits of
advertising versus other communications when deciding how much to allocate.
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

1818
Convey the Message
MKT3010
The USP (unique selling proposition) concept conveys core benefits to the target audience. The
best USPs stand the test of time; consider examples such as those on the slide. Nokia has been
using “connecting people” for a long time; however Verizon tends to change and is currently
using “It’s Powerful.”
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

1919
MKT3010
The Message
This is a good example of bringing a very mature product category to life with a creative ad.
CLOROX® is a registered trademark of The Clorox
Company. Used with permission.

2020
MKT3010
The Appeal
Appeals depend on the target audience, chosen media, and type of product/service. Each
appeal persuades in different ways. Whereas informational appeals are more cognitive and
persuade using rational thought, emotional appeals persuade by triggering an emotional
response rather than offering rational arguments. How do the two Febreeze ads vary in their
type of appeal and how well does each match the product? Which would make you purchase
Febreeze? Why?
Emotional appeal
Informational appeal
©Procter&Gamble
©Procter&Gamble

2121
MKT3010
Emotional Appeals in Advertising
These appeals therefore focus on feelings about the self. The key to a successful emotional
appeal is the use of emotion to create a bond between the consumer and the brand.

2222
MKT3010
Symbols Help to Convey Messages
What other symbols do you know for brands? Mr. Clean? Others?
Courtesy Con Agra Foods, Inc.

2323
MKT3010
Evaluate and Select Media
The ability of any one media outlet to reach a mass audience is declining due to the
fragmentation of media and the proliferation of new media outlets. This trend represents a
double-edged sword, because fragmenting media have also allowed for very fine targeting in
media buys.
Media Planning
Media Mix
Media Buy
©Photodisc/Getty Images The McGraw-Hill Companies,
Inc/John Flournoy, photographer
Ryan McVay/Getty Images Photodisc/Getty Images

2424
MKT3010
Mass and Niche Media
Often firms will use mass media to reach a broad audience with a product message and then
choose specific niche media to customize that same message for various audiences. In the
McDonald’s Case in Point in chapter 17 we discussed how McDonald’s is using both mass and
niche media.
Mass media reach large anonymous
audience
Niche media reach a smaller more
targeted audience
©Digital Vision/PunchStock
©Digital Vision/PunchStock

2525
MKT3010
Choosing the Right Medium
What media do you use and under what circumstances do you use them? For example, do you
listen to the radio while driving in your car or watch television when you get home at night?
The usage context of each
medium affects how marketers
design messages for them. For
example most people listen to
radio in their cars, often by
themselves.
Radio is considered a more
personal medium, thus marketers
often use ads that employ
dialogues.
This allows the person to place
themselves in the conversation.
This same technique cannot be
used in print.

2626
MKT3010
Viral Marketing Campaign
Many of you will be familiar with the Dove campaign from earlier chapters. If it is near the
holiday season – OfficeMax might be running this campaign again. If so, see if you can load up
some pictures of people at your university and play it for the students. They will find it very
entertaining
Courtesy Office Max

2727
MKT3010
Determine the Advertising Schedule
Every advertising campaign has a set duration, and during that period, marketers must
determine how often and when to show the ads. For a frequently purchased good such as soda,
most firms use a continuous strategy. A flighting schedule is often used for seasonal goods
since they are only advertised during certain times of the year. A pulsing schedule is used by
firms who have certain fluctuations in their demand and need to increase advertising during the
periods of high or low demand.
©Procter & Gamble
Continuous
Pulsing
Flighting

2828
MKT3010
Create Advertisements
Ads attempt to make maximum use of the medium’s ability to deliver the message. There are
benefits and limitations for each of the various media. For example, television enables
advertisers to combine imagery, movement, and music, whereas radio must rely solely on sound
to deliver the message.
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

2929
MKT3010
Eukanuba Ad
This print Ad for Eukanuba is using humor to deliver the selling message. The text copy “Feeling
& Looking This Good Outside Starts On The Inside” informs consumers of the benefits of
Eukanuba.
©Procter & Gamble
What appeal is being used in this
advertisement?
Is this ad effective in delivering the
selling message?

3030
MKT3010
Assess Impact Using Marketing Metrics
Say that you have been assigned to assess the impact of a campaign for a new perfume. The
goal of the campaign is to increase awareness of the brand within a chosen target market by
20% over the campaign. What measures would you need to take to ensure that the campaign is
remaining on track? You could design a tracking study that measures sales, website visits and
sample requests generated over the course of the campaign. You also might measure
awareness levels of the target market at various stages of the campaign.
Pretesting
Tracking
Protesting

3131
MKT3010
Check Yourself
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?

3232
MKT3010
Regulatory and Ethical Issues in Advertising
Advertising regulation exists on federal, state, and local levels and a host of self-regulatory
agencies oversee various forms of advertising. Unlike in many European countries, puffery is
legal in the United States. Generally these claims are so outrageous that no rational consumer
would believe them.

3333
MKT3010
Puffery
Could puffery ever be considered deceptive? If so, how should we draw the line between puffery
and deception? The line between puffery and deception is a fine one. Obvious exaggerations
are not the problem it is the more subtle issues that create the problem. The line is currently
drawn by the FTC which determines how many individuals hold a false belief as a result of an
advertising. It is a very gray area of advertising law.
©BillAron/PhotoEdit

3434
MKT3010
Public Relations
Companies involved with cause related marketing often generate a lot of PR.

3535
MKT3010
Check Yourself
1. Why do companies utilize public relations as
part of their IMC strategy?
2. What are the elements of a public relations
toolkit?

3636
MKT3010
Sales Promotions
Remind students that as advertising has decreased as a portion of total marketing
communications budgets, sales promotions have increased. Promotions can be used to
stimulate sales by either the end user consumers or to stimulate channel members to sell more
of a given product/service. If focused on the end user, the promotion is using a “pull strategy.” If
focused on channel members, it is using a “push strategy.”
Courtesy Payless Shoe Source, Inc.
• Can be targeted at either the end user
consumers or channel members
• Can be used in either push or pull strategies

3737
MKT3010
Types of Sales Promotion
Sales promotions occur either in conjunction with an advertising campaign or as a stand-alone
component of a marketing communications plan. In either case, they must be consistent with
the brand image. Which ones do you think are the most effective and why? Which ones have
you used in the past week? Month?
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.

3838
MKT3010
Sales Promotion
This ad represents a demonstration. The promotion encourages consumers to increase their
level of interest by offering demonstration of the coffee maker.
• What form of sales promotion
is represented in this ad?
• Do you feel it is an effective
promotion?
Courtesy Nestlé SA

3939
MKT3010
Using Sales Promotion Tools
In recent years, firms have become more creative in the types of promotions used. As a child,
did you collect promotions in Happy Meals or other children’s products? The Happy Meal for
years was McDonald’s most successful product, primarily driven by the children’s desire for the
toy inside. Many of the happy meal toys have become sought after collectibles. The Beanie
Baby promotions a number of years ago was so successful that McDonald’s literally ran out of
the featured item for the week within hours of its initial distribution.
Cross-promoting
TheMcGraw-HillCompanies,Inc./
JohnFlournoy,photographer
The McGraw-Hill Companies, Inc./ Ken Karp, photographer

4040
MKT3010
Cross Promotion
An ad for IAMS and a coupon for Petsmart – an good example of co-marketing.
Courtesy PetSmart, Inc

4141
MKT3010
Evaluated Sales Promotions Using Marketing
Metrics
Many sales promotion opportunities undertaken by retailers are initiated by manufacturers.
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

4242
MKT3010
Check Yourself
1. What are various forms of sales promotions?
2. What factors should a firm consider when
evaluating a sales promotion?

4343
Glossary
MKT3010
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.
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.
A flighting advertising schedule is implemented in spurts, with periods of heavy advertising
followed by periods of no advertising.
Institutional advertisements inform, persuade, and remind consumers about issues related to
places, politics, an industry, or a particular corporation.
Media buy is the actual purchase of airtime or print pages.
The media mix is the combination of the media used and the frequency of advertising in each
medium.

4444
Glossary
MKT3010
Media planning is the process of evaluating and selecting the media mix that will deliver a
clear, consistent, compelling message to the intended audience.
Product-focused advertisements focus on informing, persuading, or reminding customers
about a specific product or service.
Public service advertising (PSA) focuses on public welfare and generally is sponsored by
nonprofit institutions, civic groups, religious organizations, trade associations, or political groups.
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.
A pulsing advertising schedule combines the continuous and flighting schedules by
maintaining a base level of advertising but increasing advertising intensity during certain
periods.
A push strategy is designed to increase demand by focusing on wholesalers, distributors, or
sales people.

Ppt Chapter 19

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (19)

Similar to Ppt Chapter 19

Similar to Ppt Chapter 19 (20)

Recently uploaded

Recently uploaded (20)

Ppt Chapter 19