1. Chapter 19 Managing Advertising, Sales Promotion and Public Relations Marketing Management Tenth Edition Philip Kotler

3. Major Decisions in Advertising Objectives Setting Budget Decisions Message Decisions Media Decisions Campaign Evaluation

5. The Five Ms of Advertising Mission Sales goals Adver- tising objectives Money Factors to consider: Stage in PLC Market share and con- sumer base Competition and clutter Advertising frequency Product substituta- bility Message Message generation Message evaluation and selection Message execution Social-responsibility review Media Reach, frequency, impact Major media types Specific media vehicles Media timing Geographical media allocation Measure- ment Communi- cation impact Sales impact

6. Advertising Budget Factors Stage in the Product Life Cycle Market Share & Consumer Base Competition & Clutter Advertising Frequency Product Substitutability

7. Profiles of Major Media Types Newspapers Advantages: Flexibility, timeliness; good local market coverage; broad acceptance, high believability Limitations: Short life; poor reproduction quality; small pass-along audience Television Advantages: Combines sight, sound, motion; high attention; high reach; appealing to senses Limitations: High absolute costs; high clutter; fleeting exposure; less audience selectivity Direct Mail Advantages: Audience selectivity; flexibility, no ad compe- tition within same medium; allows personalization Limitations: Relative high cost; “junk mail” image

8. Radio Advantages: Mass use; high geographic and demographic selectivity; low cost Limitations: Audio only; fleeting exposure; lower attention; nonstandardized rates; fragmented audiences Magazines Advantages: High geographic and demographic selectivity; credibility and prestige; high-quality reproduction; long life; good pass-along readership Limitations: Long ad purchase lead time; waste circulation; no guarantee of position Outdoor Advantages: Flexibility; high repeat exposure; low cost; low message competition Limitations: Little audience selectivity; creative limitations Profiles of Major Media Types

9. Classification of Advertising Timing Patterns Month Number of messages per month Concen- trated (1) (2) (3) Level Rising Falling Alternating (4) Continuous (8) (7) (6) (5) (9) Inter- mittent (10) (11) (12) (9)

10. Simplified Rating Sheet for Ads __Total (Attention) How well does the ad catch the reader’s attention? __ 20 (Read-through) How well does the ad lead the reader to read further? __ 20 (Cognitive) How clear is the central message or benefit? __ 20 (Affective) How effective is the particular appeal? __ 20 (Behavior) How well does the ad suggest follow-through action? __ 20 Poor ad Mediocre ad Average ad Good ad Great ad 0 20 40 60 80 100

11. Advertising Strategy Message Execution Testimonial Evidence Slice of Life Scientific Evidence Lifestyle Technical Expertise Fantasy Musical Personality Symbol Mood or Image Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest. Typical Message Execution Styles

12. Advertising Evaluation Advertising Program Evaluation Communication Effects Is the Ad Communicating Well? Sales Effects Is the Ad Increasing Sales?

14. Long-Term Promotional Allocation Cox Direct 19th Annual Survey of Promotional Practices 0 10 20 30 40 50 60 1986 88 90 92 94 1996 Year %t of total - 3 yr.MA Trade Promo Media Adv Cons. Promo

15. Channels of Sales Promotions MANUFACTURER RETAILER Trade Promotions CONSUMER Consumer Promotions Push Push Pull Retail Promotions

16. Consumer Promotion Consumer-Promotion Objectives Consumer-Promotion Tools Entice Consumers to Try a New Product Lure Customers Away From Competitors’ Products Get Consumers to “Load Up’ on a Mature Product Hold & Reward Loyal Customers Consumer Relationship Building Point-of-Purchase Displays Premiums Price Packs Cash Refunds Coupons Samples Patronage Rewards Games Sweepstakes Contests Advertising Specialties Patronage Rewards

19. Trade Promotions Trade-Promotion Objectives Trade-Promotion Tools Persuade Retailers or Wholesalers to Carry a Brand Give a Brand Shelf Space Promote a Brand in Advertising Push a Brand to Consumers Specialty Advertising Items Contests Free Goods Buy-Back Guarantees Allowances Price-Offs Patronage Rewards Push Money Discounts Premiums Displays

20. Business-to-Business Promotion Business-Promotion Objectives Business-Promotion Tools Generate Business Leads Stimulate Purchases Reward Customers Motivate Salespeople Conventions Trade Shows Sales Contests

21. Special Events Written Materials Corporate Identity Materials Speeches News Audiovisual Materials Major Public Relations Tools Public Service Activities Web Site

22. Taco Bell has purchased the Liberty Bell!