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  1. 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. 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. 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. 4. Advertising Developing and Advertising Programs
  5. 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. 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. 7. Advertising Ch 12 - 6 Copyright © 2011 Pearson Education
  8. 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. 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. 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. 11. Advertising: Developing Advertising Strategy Message execution Creative concept Message strategy Creating the Advertising Message Ch 12 - 10 Copyright © 2011 Pearson Education
  12. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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 Ch 12 - 33 Copyright © 2011 Pearson Education
  35. 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. 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. 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. 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. 39. Sales Promotion Discount Allowance Free goods Specialty advertising Trade Promotion Tools Ch 12 - 38 Copyright © 2011 Pearson Education
  40. 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. 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
  42. 42. This work is protected by local and international copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted. The work and materials from this site should never be made available to students except by instructors using the accompanying text in their classes. All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials. Ch 12 - 41 Copyright © 2011 Pearson Education