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19-1
CHAPTER
ADVERTISING, PUBLIC
RELATIONS, AND SALES
PROMOTIONS
19
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
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
19-4
Identify Target Audience
Conduct research
Use the information to set
the tone
Select the media
Getty Images/Comstock Images
19-5
Set Advertising Objectives
Push strategyPull strategy
©Brand X Pictures/PunchStock
©Comstock/PunchStock
19-6
Advertising Objectives
Inform
Persuade
Remind
19-7
Product-focused
advertisements
Institutional
advertisements
Focus of Advertisements
©2000Image100Ltd
19-8
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
19-9
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
Super
Bowl Ads
19-10
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
19-11
The Appeal
Emotional appeal
Informational appeal
©Procter&Gamble
©Procter&Gamble
19-12
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
19-13
Choosing the Right Medium
19-14
Determine the Advertising Schedule
Continuous
Pulsing
Flighting
©Procter & Gamble
19-15
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
19-16
Assess Impact
Using Marketing Metrics
Pretesting
Tracking
Protesting
19-17
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?
19-18
Regulatory and Ethical Issues
in Advertising
19-19
Public Relations
TOMS
Shoes
19-20
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?
19-21
Sales Promotion
 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.
19-22
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.
19-23
CHECK YOURSELF
1. What are various forms of sales promotions?
2. What factors should a firm consider when
evaluating a sales promotion?

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Advertising, Public Relations, and Sales Promotions

  • 2. 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
  • 3. 19-3 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
  • 4. 19-4 Identify Target Audience Conduct research Use the information to set the tone Select the media Getty Images/Comstock Images
  • 5. 19-5 Set Advertising Objectives Push strategyPull strategy ©Brand X Pictures/PunchStock ©Comstock/PunchStock
  • 8. 19-8 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
  • 9. 19-9 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 Super Bowl Ads
  • 10. 19-10 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
  • 11. 19-11 The Appeal Emotional appeal Informational appeal ©Procter&Gamble ©Procter&Gamble
  • 12. 19-12 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
  • 14. 19-14 Determine the Advertising Schedule Continuous Pulsing Flighting ©Procter & Gamble
  • 15. 19-15 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
  • 16. 19-16 Assess Impact Using Marketing Metrics Pretesting Tracking Protesting
  • 17. 19-17 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?
  • 18. 19-18 Regulatory and Ethical Issues in Advertising
  • 20. 19-20 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?
  • 21. 19-21 Sales Promotion  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.
  • 22. 19-22 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.
  • 23. 19-23 CHECK YOURSELF 1. What are various forms of sales promotions? 2. What factors should a firm consider when evaluating a sales promotion?