marketing management

1. Chapter 15
Advertising, Sales Promotion, and
Public Relations
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2. Advertising
Advertising is centuries old.
U.S. advertisers spend in excess of $212
billion each year; worldwide spending
exceeds $414 billion.
Advertising is used by:
 Business firms,
 Nonprofit organizations,
 Professionals, and
 Social agencies.
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3. What is Advertising?
Advertising is Any Paid Form
of Nonpersonal Presentation
and Promotion of Ideas,
Goods, or Services by an
Identified Sponsor.
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4. Major Advertising Decisions
(Fig. 15.1)
Message Decisions
•Message Strategy
•Message Execution
Objectives Setting Budget
•Communication Decisions Campaign Evaluation
objectives •Affordable Approach •Communication Impact
•Sales Objectives •Percent of sales •Sales Impact
•Competitive parity
•Objective and task
Media Decisions
•Reach, Frequency, Impact
•Major Media Types
•Specific Media Types
•Media Timing
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5. Setting Advertising Objectives
Informative Advertising Persuasive Advertising
Inform Consumers or Build Selective Demand
Build Primary Demand i.e Sony CD Players
i.e CD Players
Advertising Objective
Specific Communication Task
Accomplished with a Specific
Target Audience
During a Specific Period of Time
Comparison Advertising Reminder Advertising
Compares One Brand to Keeps Consumers Thinking
Another About a Product
i.e. Avis vs. Hertz i.e. Coca-Cola
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6. Setting the Promotion Budget
After Determining Its Advertising Objectives, the
Each Product and Market. (From Chapter 14)
Marketer Must Set the Advertising Budget for
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Affordable Percentage o
Percentage o
Based on What the Based on a Certain
Based on a Certain
Company Can Afford of Current or Forec
of Current or Forec
Objective-and-Task
Objective-and-Task Competitive
Competitive
Based on Determining
Based on Determining Based on the Co
Based on the Com
Objectives & Tasks, Then
Objectives & Tasks, Then Promotion B
Promotion Bu
Estimating Costs
Estimating Costs

7. Setting the Advertising
Budget
Factors to be
considered when
setting the advertising
budget:
 Stage in the product
life cycle,
 Market share,
 Competition and
clutter,
 Product differentiation.
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8. Developing Advertising
Strategy
Advertising Strategy Consists of Two Major Elements
and Companies are Realizing the Benefits of Planning
These Two Elements Jointly.
Creating the Selecting the
Advertising Advertising Media
Messages
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9. Developing Advertising
Strategy: Creating Ad
Messages
Plan a Message Strategy
General Message to Be Communicated to Customers
Develop a Message
Develop a Message
Focus on
Focus on
Customer Benefits
Customer Benefits Creative Concept
Creative Concept
“Big Idea”
“Big Idea”
Some phrases or Big Ideas become so
effective that they spark trends in speaking, Visualization or Phrase Advertising Appeals
Visualization or Phrase Advertising Appeals
fashion, or even in other ads.
Combination of Both
Combination of Both Meaningful
Meaningful
Believable
Believable
Distinctive
Distinctive
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10. Mes sa ge
E xec u t i on
What type of message
executi on do these two
Developing Advertising
ads employ?
In both cases, what
distingui shes the
product from the
rest of the ad?
Strategy: Message Execution
Click or p res s spacebar to retu rn.
Turning the “Big Idea” Into an Actual Ad to Capture the
This Colgate ad
Target Market’s Attention and Interest.
informs customers
about the necessity
of brushing after
lunch.
In addition to
acquiring new
customers, Colgate
may increase
toothpaste use by
present customers.
Testimonial Evidence
Testimonial Evidence Slice of Life
Slice of Life
Scientific Evidence
Scientific Evidence Typical Lifestyle
Lifestyle
Message
Technical Expertise
Execution Fantasy
Technical Expertise Fantasy
Styles
Personality Symbol
Personality Symbol Mood or Image
Mood or Image
What type of mood does this set ab o t the product?
u
Musical
Musical
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Which lifestyle does it appeal to?

11. Advertising Strategy:
Selecting Advertising Media
Step 1. Decide on Reach, Frequency,
and Impact
Step 2. Choosing Among Major Media Types
Media Habits of Target Consumers,
Nature of the Product, Types of Message, Cost
Step 3. Selecting Specific Media Vehicles
Specific Media Within a Given Type, i.e. Magazines.
Must Balance Media Cost Against Media Factors:
Audience Quality & Attention, Editorial Quality
Step 4. Deciding on Media Timing
Scheduling of Advertising Over the Course of a Year
Pattern of Ads: Continuity or Pulsing
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12. Jon Steel, of
Goodby, Silverstein, and Partners:
Evaluating Advertising
Advertising Program Evaluation
Communication Effects
Communication Effects Sales Effects
Sales Effects
Is the Ad Communicating Well?
Is the Ad Communicating Well? Is the Ad Increasing Sales?
Is the Ad Increasing Sales?
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13. Discussion Connections
Advertising objectives can be classified
by primary purpose: to inform, persuade,
or remind.
Using your local newspaper, find
examples of ads pursuing each of the
above.
Apply Table 15.1 to explain your answers.
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14. Other Advertising
Considerations
Sales Departments in Advertising Departments
Small Companies in Larger Companies
Advertising Agency
Firm that Assists Companies
in the Planning, Creation, &
Implementation of Their
Advertising Programs
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15. Advertising Agencies
Large agencies divide their staffs to specialize in
creative,media,research, or business (account
planning).
Ad agencies are moving away from the
commission system because it no long accurately
reflects the services performed.
Most ad agency clients still want just a few of the
services that can be provided by the agency, so
diversification efforts have been limited.
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16. International Advertising
Decisions
Adaptation of Global Advertising
Advertising Media Differ
Considerably in Availability and
Cost
Regulation in Advertising Practices
Comparison Ads Not Acceptable in
All Countries
Programs Must be Matched to
Local Cultures and Customs
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17. What is Sales Promotion ?
Sales Promotion is a Mass
Communication Technique That
Offers Short-Term Incentives to
Encourage Purchase or Sales of a
Product or Service.
Offers Reasons to Buy Now.
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18. Rapid Growth of Sales
Promotion
Sales promotion can take the form of consumer
promotions, business promotions, trade
promotions or sales force promotions.
Rapid growth in the industry has been achieved
because:
 Product managers are facing more pressure to
increase their current sales,
 Companies face more competition,
 Advertising efficiency has declined,
 Consumers have become more deal oriented.
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19. Sales Promotion Objectives
Increase short-term sales or help build
long-term market share.
Get retailers to:
 carry new items and more inventory,
 advertise products,
 give products more shelf space, and
 buy product ahead.
In general, sales promotion should focus
on consumer relationship building.
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20. Major Consumer Sales
Promotion Tools
Sample
Sample Trial amount of a product
Trial amount of a product
Savings when purchasing specified
Savings when purchasing specified
Coupons
Coupons products
products
Cash Refunds
Cash Refunds Refund of part of the purchase price
Refund of part of the purchase price
Reduced prices marked on the label or
Reduced prices marked on the label or
Price Packs
Price Packs package
package
Goods offered free or low cost as an
Goods offered free or low cost as an
Premiums
Premiums incentive to buy a product
incentive to buy a product
Advertising
Advertising Articles imprinted with an advertiser’s
Articles imprinted with an advertiser’s
Specialties
Specialties name given as gifts
name given as gifts
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21. Major Consumer Sales
Promotion Tools
Cash or other rewards for the use of a
Cash or other rewards for the use of a
Patronage Rewards
Patronage Rewards certain product
certain product
Displays and demonstrations that take
Displays and demonstrations that take
Point-of-Purchase
Point-of-Purchase place at the point of sale
place at the point of sale
Contests
Contests Consumers submit an entry to be judged
Consumers submit an entry to be judged
Consumers submit their names for a
Consumers submit their names for a
Sweepstakes
Sweepstakes drawing
drawing
Presents consumers with something every
Presents consumers with something every
Game
Game time they buy
time they buy
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22. Major Trade Sales
Promotion Tools
Trade-Promotion Trade-Promotion
Objectives Tools
Persuade Retailers or
Persuade Retailers or
Wholesalers to Carry a Brand
Wholesalers to Carry a Brand Discounts
Discounts
Give a Brand Shelf Space
Give a Brand Shelf Space
Promote a Brand in Allowances
Allowances
Promote a Brand in
Advertising
Advertising
Push a Brand to Consumers
Push a Brand to Consumers
Sales Promotion
T his K ibble s ‘n Bit s
promotion off ered
pet owner s a chance
to see their dogs in
a commer cial.
Which of the fou r
obj ectives does this
type of promoti on
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fulfill?

23. Major Business Sales
Promotion Tools
Business-Promotion Business-Promotion
Objectives Tools
Generate Business Leads
Generate Business Leads Conventions
Conventions
Stimulate Purchases
Stimulate Purchases Trade Shows
Trade Shows
Reward Customers
Reward Customers Sales Contests
Sales Contests
Motivate Salespeople
Motivate Salespeople
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24. Developing the Sales
Promotion Program
Decide on the Size of the Incentive
Decide on the Size of the Incentive
Set Conditions for Participation
Set Conditions for Participation
Determine How to Promote and
Determine How to Promote and
Distribute the Promotion Program
Distribute the Promotion Program
Determine the Length of the Program
Determine the Length of the Program
Evaluate the Program
Evaluate the Program
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25. What is Public Relations?
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.
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26. Perform Any of All
Departments May
Public Relations
of the Following
Functions:
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Major Public Relations
Press Relations or Agentry
Press Relations or Agentry
Product Publicity
Product Publicity
Public Affairs
Public Affairs
Lobbying
Lobbying
Functions
Investor Relations
Investor Relations
Developm
Developme

27. Major Public Relations Tools
News
Web Site Speeches
Public Special
Service Events
Activities
Corporate
Written
Identity
Audiovisual Materials
Materials
Materials
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28. 28
Major Public Relations
Setting Public Relations Objectives
Setting Public Relations Objectives
Choosing the Public Relations Message
Choosing the Public Relations Messages
and Vehicles
and Vehicles
Implementing the Public Relations Plan
Implementing the Public Relations Plan
Decisions
Evaluating Public Relations Results
Evaluating Public Relations Results

29. Review of Concept
Connections
Define the roles of advertising, sales
promotion, and public relations in the
promotion mix.
Describe the major decisions involved in
developing an advertising program.
Explain how sales promotion campaigns are
developed and implemented.
Explain how companies use public relations
to communicate with their publics.
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