This document provides an overview of advertising, sales promotion, and public relations. It discusses the roles and goals of each area, as well as key decisions involved in developing programs. For advertising, it describes setting objectives and budgets, and developing strategies. It also outlines major media types. For sales promotion, it defines tools for consumers, trade partners, and sales forces. Finally, it discusses public relations functions and tools for building relations with key audiences.

1. Advertising,Advertising,
Sales Promotion, andSales Promotion, and
Public RelationsPublic Relations
Anurag Chakraborty

2. 15 - 2
Learning Goals
1. Understand the roles of advertising,
sales promotion, and public relations
in the promotion mix.
2. Know the major decisions
involved in developing an advertising
program.
3. Learn how sales promotion
campaigns are developed and
implemented.
4. Learn how companies use public
relations to communicate with their
publics.

3. 15 - 3
• Located in Coconut
Grove, FL
• Winner of several
creative awards
• Known for guerrilla
tactics, unconventional
media and holistic
marketing strategies
• Often suggests
changes in the client’s
procedures, products
and processes to
enhance brand image
• Clients include Virgin
Airline, MINI cars, Ikea
furniture, Molson beer,
Truth and Burger King
Case Study
Crispin Porter & Bogusky

4. 15 - 4
Definition
• Advertising
 Any paid form of nonpersonal
presentation and promotion of
ideas, goods, or services by an
identified sponsor.
Goal 1: Understand the roles of advertising, sales promotion and public relations

5. 15 - 5
Advertising
• Signage in ancient times offers
evidence of early advertising.
• Modern ad spending tops $245
billion in U.S. annually, $498
billion worldwide.
• Business firms, not-for-profit,
social agencies, and
professionals all advertise.
Goal 1: Understand the roles of advertising, sales promotion and public relations

6. 15 - 6
Advertising
• Setting objectives
• Setting the budget
• Developing the
advertising strategy
• Evaluating
advertising
campaigns
• Advertising objectives
can be classified by
primary purpose:
 Inform
• Introducing new
products
 Persuade
• Becomes more important
as competition
increases
• Comparative advertising
 Remind
• Most important for
mature products
Key DecisionsKey Decisions
Goal 2: Know the major decisions involved in developing an advertising program

7. 15 - 7
Advertising
• Setting objectives
• Setting the budget
• Developing the
advertising strategy
• Evaluating
advertising
campaigns
• Methods of budget
setting were listed in
chapter 14
• Several factors should be
considered when setting
the ad budget:
 Stage in the PLC
 Market share
 Level of competition
 Ad clutter
 Degree of brand
differentiation
Key DecisionsKey Decisions
Goal 2: Know the major decisions involved in developing an advertising program

8. 15 - 8
Advertising
• Setting objectives
• Setting the budget
• Developing the
advertising strategy
• Evaluating
advertising
campaigns
• Creative challenges
 Advertising clutter
 TiVo and PVR’s
• Creating ad messages
 Message strategy
• Creative concept or Big
Idea
• Advertising appeal
 Message execution
• Many execution styles
• Tone, format,
illustration, headline,
copy
Key DecisionsKey Decisions
Goal 2: Know the major decisions involved in developing an advertising program

9. 15 - 9
Creative Execution Styles
Advertising
• Slice of Life
• Lifestyle
• Fantasy
• Mood or Image
• Musical
• Personality Symbol
• Technical
Expertise
• Scientific Evidence
• Testimonial Evidence or Endorsement
Goal 2: Know the major decisions involved in developing an advertising program

10. 15 - 10
Advertising
• Setting objectives
• Setting the budget
• Developing the
advertising strategy
• Evaluating advertising
campaigns
• Select advertising media
 Decide on level of reach,
frequency and impact
 Choose among the major
media types by
considering:
• Consumer media habits,
nature of the product,
types of messages, and
costs
 Select specific media
vehicles
 Decide on media timing
Key DecisionsKey Decisions
Goal 2: Know the major decisions involved in developing an advertising program

11. 15 - 11
Major Media TypesMajor Media Types
Advertising
• Newspapers
• Television
• Direct Mail
• Radio
• Magazines
• Outdoor
• Internet
Goal 2: Know the major decisions involved in developing an advertising program

12. 15 - 12
Advertising
• Setting objectives
• Setting the budget
• Developing the
advertising strategy
• Evaluating
advertising
campaigns
• Measuring
communications effects
 Copy testing
• Measuring sales effect
 Compare past sales with
past advertising
expenditures
 Experiments
Key DecisionsKey Decisions
Goal 2: Know the major decisions involved in developing an advertising program

13. 15 - 13
Advertising
• Organizing the Advertising
Function
 Small vs. large companies
 Nature of advertising agencies
• Advantages of advertising agencies
• Consolidation and growth of agencies
• Creative boutiques
Goal 2: Know the major decisions involved in developing an advertising program

14. 15 - 14
Advertising
• Advertising to International Markets
 Standardizing worldwide advertising
• Advantages include lower advertising costs,
greater global advertising coordination, and
consistent global image
• Drawbacks include ignoring differences in
culture, demographics, and economic
conditions
 Most marketers think globally but act
locally
Goal 2: Know the major decisions involved in developing an advertising program

15. 15 - 15
Definition
• Sales Promotion
 Sales promotions are short-term
incentives to encourage the
purchase or sale of a product or
service.
Goal 3: Learn how sales promotion campaigns are developed and implemented

16. 15 - 16
Sales Promotion
• Sales Promotions
 Can be targeted at final buyers,
retailers and wholesalers, business
customers, and members of the
sales force.
 The use of sales promotions has
been growing rapidly.
 78% are to the trade with 22% to
end consumers.
Goal 3: Learn how sales promotion campaigns are developed and implemented

17. 15 - 17
Sales Promotion
• Objectives – Consumer Promotions:
 Increase short-term sales or long-term
market share
 Generate product trial
• Objectives – Trade Promotions:
 Obtaining distribution and shelf space
 Encouraging retailers to advertise the
brand
• Objectives – Sales Force Promotions:
 Signing up new accounts
Goal 3: Learn how sales promotion campaigns are developed and implemented

18. 15 - 18
Consumer Promotion Tools
Sales Promotion
• Samples
• Coupons
• Cash Refunds
(Rebates)
• Price packs
(cents-off deals)
• Advertising
Specialties
• Premiums
• Patronage
Rewards
• Point-of-
Purchase
Communications
• Contests,
Games, and
Sweepstakes
Goal 3: Learn how sales promotion campaigns are developed and implemented

19. 15 - 19
Sales Promotion
• Trade Promotion Tools
 Discounts (also called price-off, off-
list, and off-invoice)
 Allowances
• Advertising allowances
• Display allowances
 Free goods
 Push money
 Specialty advertising items
Goal 3: Learn how sales promotion campaigns are developed and implemented

20. 15 - 20
Sales Promotion
• Business Promotion Tools
 Includes many of the same tools
used in consumer and trade
promotions
 Two additional tools:
• Conventions and trade shows
• Sales contests
Goal 3: Learn how sales promotion campaigns are developed and implemented

21. 15 - 21
Sales Promotion
• Key Decisions When Developing
the Sales Promotion Program:
 Size of the incentive
 Conditions for participation
 Promotion and distribution of the
actual sales promotion program
 Length of the promotional program
 Evaluation
Goal 3: Learn how sales promotion campaigns are developed and implemented

22. 15 - 22
Definition
• Public Relations:
 Building good relations with the
company’s various publics by
obtaining favorable publicity,
building up a good corporate
image, and handling or heading off
unfavorable rumors, stories, and
events.
Goal 4: Learn how companies use public relations

23. 15 - 23
Public Relations FunctionsPublic Relations Functions
Public Relations
• Press
Relations
• Product
Publicity
• Public Affairs
• Lobbying
• Investor
Relations
• Development
Goal 4: Learn how companies use public relations

24. 15 - 24
Public Relations
• Role and Impact of Public
Relations
 Strong impact on public awareness
at lower cost than advertising
 Greater credibility than advertising
 Publicity is often underused
 Good public relations can be a
powerful brand-building tool
Goal 4: Learn how companies use public relations

25. 15 - 25
Public Relations ToolsPublic Relations Tools
Public Relations
• News
• Speeches
• Buzz Marketing
• Corporate Identity
Materials
• Mobile
Marketing
• Special Events
• Written Materials
• Audiovisual
Materials
• Public Service
Activities
• Internet
Goal 4: Learn how companies use public relations