Business

1. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
ADVERTISING,
SALES
PROMOTION, AND
PUBLIC RELATIONS
CHAPTER

2. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Explain the differences between product
advertising and institutional advertising
and the variations within each type.
• Understand the steps used to develop,
execute, and evaluate an advertising
program.
AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:

3. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Explain the advantages and dis-
advantages of alternative advertising
media.
• Understand the strengths and weaknesses
of consumer-oriented and trade-oriented
sales promotions.
AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:

4. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Recognize public relations as an
important form of communications.
AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:

5. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
WHAT’S THE FUTURE OF
ADVERTISING? THE
ANSWER IS PERSONAL
ADVERTISING, SALES
PROMOTION, AND PUBLIC
RELATIONS

6. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Product Advertisements
• Institutional Advertisements
TYPES OF ADVERTISEMENTS

7. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
1. What is the difference between
pioneering and competitive ads?
A: Pioneering ads tell people what a
product is, whereas competitive ads
promote a specific brand’s features
and benefits.

8. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
2. What is the purpose of an institutional
advertisement?
A: To build goodwill or an image for an
organization.

9. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Identifying the Target Audience
• Specifying Advertising Objectives
• Setting the Advertising Budget
DEVELOPING THE
ADVERTISING PROGRAM

10. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
FIGURE 19-1 Super Bowl, super dollars. Pepsi and
Monster.com place ads

11. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Designing the Advertisement
• Message Content
• Creating the Actual Message
DEVELOPING THE
ADVERTISING PROGRAM

12. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
1. What are the characteristics of good
advertising objectives?
A: (1) A well-defined target audience,
(2) measurable, (3) over a specific
time period.

13. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
2. What is a potential shortcoming of
using a celebrity spokesperson?
A: The spokesperson’s image may
change to become inconsistent with
the company or brand.

14. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
DEVELOPING THE
ADVERTISING PROGRAM
• Selecting the Right Media
• Choosing a Medium and a Vehicle
within That Medium

15. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
FIGURE 19-2
U.S.
advertising
expenditures,
by category
(data in
millions of
dollars)

16. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
DEVELOPING THE
ADVERTISING PROGRAM
• Basic Terms
 Reach
 Rating
 Frequency
 Gross Rating Points
 Cost Per Thousand

17. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
FIGURE 19-3 The language of the media buy

18. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Different Media Alternatives
• Television
 Infomercials
• Radio
• Magazines
• Newspapers
• Internet
• Outdoor
DEVELOPING THE
ADVERTISING PROGRAM

19. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Different Media Alternatives (cont)
• Internet
• Outdoor
• Other Media
• Selection Criteria
• Scheduling the Advertising
DEVELOPING THE
ADVERTISING PROGRAM

20. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
FIGURE 19-4 Advantages and Disadvantages

21. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Scheduling the Advertising
DEVELOPING THE
ADVERTISING PROGRAM

22. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
1. You see the same ad in Time and
Fortune magazines and on billboards and
TV. Is this an example of reach or
frequency?
A: Frequency

23. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
2. Why has the Internet become a
popular advertising medium?
A: Large new audience, offers
advantages over other forms primarily
through combining their advantages,
offers potential for tracking
effectiveness.

24. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
3. What factors must be considered when
choosing among alternative media?
A: Target audience media habits, product
attributes, and cost.

25. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Pretesting the Advertising
• Portfolio Tests
• Jury Tests
• Theater Tests
EXECUTING THE
ADVERTISING PROGRAM

26. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Carrying Out the Advertising Program
 Full-service agency
 Limited-service agencies
 In-house agencies
EXECUTING THE
ADVERTISING PROGRAM

27. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
FIGURE 19-5 Alternative structures of ad agencies used to
carry out the ad program

28. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Posttesting the Advertising
• Aided Recall (Recognition-Readership)
• Unaided Recall
• Attitude Tests
• Inquiry Tests
• Sales Tests
• Making Needed Changes
EVALUATING THE
ADVERTISING PROGRAM

29. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
1. Explain the difference between pretesting
and posttesting advertising copy.
A: Pretesting is done to test alternative copy
or to determine whether the ad
communicates the intended message.
Pretests are done before the ad is placed in
the media. Posttesting determines whether
the ad accomplished its intended purpose.

30. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
2. What is the difference between aided
and unaided recall?
A: With aided recall, respondents see
one or more actual ads on which they
comment. With unaided recall,
respondents are shown no ads and
must rely on memory alone.

31. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Consumer-Oriented Sales Promotion
• Coupons
• Deals
• Premiums
• Contests
• Sweepstakes
SALES PROMOTION

32. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Consumer-Oriented Sales Promotion
(cont)
• Samples
• Continuity Programs
• Point-of-Purchase Displays
• Rebates
• Product Placement
SALES PROMOTION

33. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
FIGURE 19-6
Sales promotion
alternatives

34. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Trade-Oriented Sales Promotions
• Allowances and Discounts
• Cooperative Advertising
• Training of Distributor’s Salesforces
SALES PROMOTION

35. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
1. Which sales promotional tool is most
common for new products?
A: Samples

36. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
2. What’s the difference between a
coupon and a deal?
A: A coupon provides a reduced price
for an item based on redemption. A
deal is a short-term price reduction.

37. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
3. Which trade promotion is used on an
ongoing basis?
A: Trade allowance

38. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Publicity Tools
PUBLIC RELATIONS

39. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Building Long-Term Relationships
with Promotions
• Self-Regulation
INCREASING THE VALUE
OF PROMOTION

40. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
1. What is a news release?
A: An announcement regarding changes
in a company or its product line.

41. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
2. What is the difference between government
regulation and self-regulation?
A: Government regulation involves laws or
other controls set by an agency or local,
state, or federal government, whereas self-
regulation involves ethical guidelines for
business practices set by advertising
agencies, trade associations, and marketing
organizations.