This chapter discusses promotion mix strategies, focusing on advertising and public relations. It covers developing advertising programs, setting objectives, budgets, and strategies. Key aspects of strategies include creating messages, selecting media types and vehicles, and timing. It also discusses evaluating advertising effectiveness and return on investment. The chapter then covers public relations tools and functions. Finally, it discusses personal selling, sales promotion objectives and tools, and developing sales promotion programs.

1. Principles of Marketing,
Arab World Edition
Philip Kotler, Gary Armstrong, Anwar Habib, Ahmed
Tolba
Presentation prepared by Annelie Moukaddem Baalbaki
CHAPTER TWELVE
Promotion Mix Strategies:
Advertising and Public Relations
Lecturer: Insert your name here
Ch 12 -0 Copyright © 2011 Pearson Education

2. Promotion: Advertising and Public Relations
Topic Outline
12.1 Advertising
12.2 Public Relations
12.3 Personal Selling
12.4 Sales Promotion
Ch 12 - 1 Copyright © 2011 Pearson Education

3. Advertising is any paid form of non-personal presentation and
promotion of ideas, goods, or services by an identified sponsor.
Advertising
Developing and Advertising Programs
Ch 12 - 2 Copyright © 2011 Pearson Education

4. Advertising
Developing and Advertising Programs

5. Advertising
Setting Advertising Objectives
An advertising objective is a specific communication task
to be accomplished with a specific target audience during a
specific time.
• Objectives are classified by primary purpose
• Inform
• Persuade
• Remind
Ch 12 - 4 Copyright © 2011 Pearson Education

6. Advertising
Informative advertising is used when introducing a new
product category; the objective is to build primary demand.
Comparative advertising directly or indirectly compares the
brand with one or more other brands.
Persuasive advertising is important with increased
competition to build selective demand.
Reminder advertising is important with mature products to
help maintain customer relationships and keep customers
thinking about the product.
Setting Advertising Objectives
Ch 12 - 5 Copyright © 2011 Pearson Education

7. Advertising
Ch 12 - 6 Copyright © 2011 Pearson Education

8. Advertising
1. Product life-cycle stage
• New products require larger budgets
• Mature brands require lower budgets
2. Market share
• Building or taking market share requires larger budgets
• Markets with heavy competition or high advertising
clutter require larger budgets
• Undifferentiated brands require larger budgets
Setting the Advertising Budget
Ch 12 - 7 Copyright © 2011 Pearson Education

9. Advertising
Advertising strategy is the strategy by which the company
accomplishes its advertising objectives and consists of:
1. Creating advertising messages
2. Selecting advertising media
Developing Advertising Strategy
Ch 12 - 8 Copyright © 2011 Pearson Education

10. Advertising: Developing Advertising Strategy
Ads need to break through the clutter:
1. Gain attention
2. Communicate well
Advertisements need to be better planned, more imaginative,
more entertaining, and more rewarding to consumers.
• Madison & Vine—the intersection of Madison Avenue and
Hollywood—represents the merging of advertising and
entertainment
Creating the Advertising Message
Ch 12 - 9 Copyright © 2011 Pearson Education

11. Advertising: Developing Advertising Strategy
Message execution
Creative concept
Message strategy
Creating the Advertising Message
Ch 12 - 10 Copyright © 2011 Pearson Education

12. Advertising: Developing Advertising Strategy
Message strategy is the general message that will be
communicated to consumers. It Identifies consumer benefits.
Creative concept is the idea that will bring the message
strategy to life and guide specific appeals to be used in an
advertising campaign. Characteristics of the appeals:
• Meaningful
• Believable
• Distinctive
Creating the Advertising Message
Ch 12 - 11 Copyright © 2011 Pearson Education

13. Advertising: Developing Advertising Strategy
Message execution is when the advertiser turns the big idea
into an actual ad execution that will capture the target
market’s attention and interest.
The creative team must find the best approach, style, tone,
words, and format for executing the message.
Creating the Advertising Message
Ch 12 - 12 Copyright © 2011 Pearson Education

14. Advertising: Developing Advertising Strategy
Creating the Advertising Message: Execution
Slice of life Lifestyle Fantasy
Mood or
image
Musical
Personality
symbol
Technical
expertise
Scientific
evidence
Testimonial or
endorsement
Ch 12 - 13 Copyright © 2011 Pearson Education

15. Advertising: Developing Advertising Strategy
Message execution also includes:
• Tone
- Positive or negative
• Attention-getting words
• Format
- Illustration
- Headline
- Copy
Creating the Advertising Message: Execution
Ch 12 - 14 Copyright © 2011 Pearson Education

16. Advertising: Developing Advertising Strategy
Consumer Generated Messages
1. YouTube videos, MySpace, Google…
2. Brand Web site contests
Benefits of consumer generated messages:
• Low expense
• New creative ideas
• Fresh perspective on brand
• Boost consumer involvement
Creating the Advertising Message
Ch 12 - 15 Copyright © 2011 Pearson Education

17. Advertising: Developing Advertising Strategy
Major steps include:
1. Deciding on reach-frequency-impact
2. Choosing among major media types
3. Selecting media vehicles
4. Deciding on media timing
Selecting Advertising Media
Ch 12 - 16 Copyright © 2011 Pearson Education

18. Advertising: Developing Advertising Strategy
Reach is a measure of the percentage of people in the target
market who are exposed to the ad campaign during a given
period of time.
Frequency is a measure of how many times the average
person in the target market is exposed to the message.
Impact is the qualitative value of a message exposure through
a given medium.
Selecting Advertising Media
Ch 12 - 17 Copyright © 2011 Pearson Education
Copyright © 2011 Pearson Education

19. Advertising: Developing Advertising Strategy
Choosing among major media types:
1. Television
2. Internet
3. Newspapers
4. Direct Mail
5. Magazines
6. Radio
7. Outdoor
Selecting Advertising Media
Ch 12 - 18 Copyright © 2011 Pearson Education

20. Advertising: Developing Advertising Strategy
Selecting Specific media vehicles involves decisions
presenting the media effectively and efficiently to the target
customer and must consider the message’s:
• Impact
• Effectiveness
• Cost
Selecting Advertising Media
Ch 12 - 19 Copyright © 2011 Pearson Education

21. Advertising: Developing Advertising Strategy
Narrowcasting focuses the message on selected market
segments.
• Lowers cost
• Targets more effectively
• Engages customers better
Narrowcasting Versus Shotgun Approaches
Ch 12 - 20 Copyright © 2011 Pearson Education

22. Advertising: Developing Advertising Strategy
When deciding on media timing, the planner must consider:
1. Seasonality
2. Pattern of the advertising
• Continuity—scheduling within a given period
• Pulsing—scheduling unevenly within a given period
Selecting Advertising Media
Ch 12 - 21 Copyright © 2011 Pearson Education

23. Evaluating Advertising Effectiveness and
Return on Advertising Investment
Return on Advertising Investment is the net return on
advertising investment divided by the costs of the advertising
investment.
Communication effects indicate whether the ad and media
are communicating the ad message well and should be tested
before or after the ad runs.
Sales and profit effects compare past sales and profits with
past expenditures or through experiments.
Return on Advertising Investment
Ch 12 - 22 Copyright © 2011 Pearson Education

24. Other Advertising Considerations
1. Organizing for advertising
• Agency vs. in-house
2. International advertising decisions
• Standardization
Ch 12 - 23 Copyright © 2011 Pearson Education

25. Public relations involves 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.
Public relations is used to promote product, people, ideas, and
activities.
Public Relations
Ch 12 - 24 Copyright © 2011 Pearson Education

26. Public relations department functions include:
• Press relations or press agency
• Product publicity
• Public affairs
• Lobbying
• Investor relations
• Development
Public Relations
Ch 12 - 25 Copyright © 2011 Pearson Education

27. Public Relations
• Lower cost than advertising
• Stronger impact on public awareness than advertising
The Role and Impact of Public Relations
Ch 12 - 26 Copyright © 2011 Pearson Education

28. Public Relations
Major Public Relations Tools
News Speeches
Special
events
Written
materials
Audiovisual
materials
Corporate
identity
materials
Public
service
activities
Buzz
marketing
Social
networking Internet
Ch 12 - 27 Copyright © 2011 Pearson Education

29. Personal Selling
Personal selling is the personal presentation by the firm’s
sales force for the purpose of making sales and building
customer relationships.
Salesperson is an individual representing a company to
customers by performing one or more of the following
activities: prospecting, communicating, selling, servicing,
information gathering, and relationship building.
The Role of the Sales Force
Ch 12 - 28 Copyright © 2011 Pearson Education

30. Personal Selling
Salespeople are an effective link between the company and
its customers to produce customer value and company profit
by:
1. Linking the company with its customers
• Representing the company to customers
• Representing customers to the company
2. Coordinating marketing and Sales
The Role of the Sales Force
Ch 12 - 29 Copyright © 2011 Pearson Education

31. Sales Promotion
Sales promotion refers to the short-term incentives to
encourage purchases or sales of a product or service:
• Consumer promotions
• Trade promotions
• Business promotions
• Sales force promotions
Whereas advertising offers reasons to buy a product or
service, sales promotion offers reasons to buy now.
Ch 12 - 30 Copyright © 2011 Pearson Education

32. Sales Promotion
Several Factors have contributed to this growth.
1. Product managers are under pressure to increase current
sales.
2. Companies face more competition.
3. Competing brands offer less differentiation.
4. Advertising efficiency has declined due to rising costs,
clutter, and legal constraints.
5. Consumers have become more deal-oriented.
Rapid Growth of Sales Promotions
Ch 12 - 31 Copyright © 2011 Pearson Education

33. Sales Promotion
Consumer promotion objectives:
• Urge short-term customer buying
• Enhance long-term customer relationships
Trade promotions urge retailers to:
• Carry new items or more inventory
• Buy in advance
• Advertise company products
• Get more shelf space
Sales Promotion Objectives
Ch 12 - 32 Copyright © 2011 Pearson Education

34. Sales Promotion
Sales force objectives include getting:
• More sales force support for new or current products
• Salespeople to sign up new accounts
Sales Promotion Objectives
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35. Sales Promotion
Samples Coupons Cash refunds Price packs
Premiums
Advertising
specialties
Patronage
rewards
Point-of-
purchase
displays
Demonstrations Contests Sweepstakes Games
Major Sales Promotion Tools
Ch 12 - 34 Copyright © 2011 Pearson Education

36. Sales Promotion
Samples offer a trial amount of a product.
Coupons are certificates that give buyers a saving when
they purchase specified products.
Cash refunds are similar to coupons except that the price
reduction occurs after the purchase.
Price packs offer consumers savings off the regular price of
a product.
Consumer Promotion Tools
Ch 12 - 35 Copyright © 2011 Pearson Education

37. Sales Promotion
Premiums are goods offered either for free or at a low price.
Advertising specialties are useful articles imprinted with
the advertiser’s name, logo, or message that are given as
gifts to consumers.
Point-of-purchase promotions include displays and
demonstrations that take place at the point of sales.
Consumer Promotion Tools
Ch 12 - 36 Copyright © 2011 Pearson Education

38. Sales Promotion
Contests, sweepstakes, and games give consumers the
chance to win something—such as cash, trips, or goods—by
luck or through extra effort.
Contests require an entry by a consumer.
Sweepstakes require consumers to submit their names for
a drawing.
Games present consumers with something that may or may
not help them win a prize.
Event marketing
Consumer Promotion Tools
Ch 12 - 37 Copyright © 2011 Pearson Education

39. Sales Promotion
Discount
Allowance
Free goods
Specialty advertising
Trade Promotion Tools
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40. Sales Promotion
Conventions and trade shows are effective to reach many
customers not reached with the regular sales force.
Sales contests are effective in motivating salespeople or
dealers to increase performance over a given period.
Business Promotion Tools
Ch 12 - 39 Copyright © 2011 Pearson Education

41. Sales Promotion
1. Size of the incentive
2. Conditions for participation
3. Promote and distribute the program
4. Length of the program
5. Evaluation of the program
Developing the Sales Promotion Program
Ch 12 - 40 Copyright © 2011 Pearson Education

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Ch 12 - 41 Copyright © 2011 Pearson Education