advertising, sales promotion, and public relations
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Advertising, Sales Promotion, and Public Relations. Chapter Objectives. Define advertising types of advertising advertising campaigns evaluating advertising. Chapter Objectives. sales promotion trade and consumer sales promotions public relations public relations campaigns. - PowerPoint PPT PresentationTRANSCRIPT
Advertising, Sales Promotion, and Public
Relations
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Chapter Objectives
• Define advertising
• types of advertising
• advertising campaigns
• evaluating advertising
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Chapter Objectives
• sales promotion
• trade and consumer sales promotions
• public relations
• public relations campaigns
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Advertising: The Image of Marketing
• Advertising:
• nonpersonal communication
• paid for by an identified sponsor
• using mass media
• to persuade or inform an audience
EXTREME MAKEOVER:HOME EDITION
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Types of Advertising
• Product advertising:
• focuses on a specific good/service
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Types of Advertising (cont’d)
• Institutional advertising:
• promotes the activities, personality, or point of view of an organization or companyAdvocacy advertising Public service announcement (PSA)
ROCK THE VOTE
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Types of Advertising (cont’d)
• Retail and local advertising: encourages customers to shop at a specific
store or use a local service
• Do-it-yourself advertising“Generation C” phenomenon:
• consumer-generated ad content on the Web
WWW.PRICELESS.COM
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Who Creates Advertising?
• Advertising campaign: • a coordinated, comprehensive plan • that carries out promotion objectives• results in a series of ads
placed in media
• over a period of time
LEO BURNETT WORLDWIDE
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Who Creates Advertising?
• Limited-service agency
• Full-service agency Account managementCreative servicesResearch and marketing servicesMedia planning
Motorola Video
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Figure 13.1: Steps for Advertising Campaigns
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Steps in Developing an Advertising Campaign
• Step 1: Identify the target audiences
• Step 2: Establish message objectivesbudget objectives
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Steps in Developing an Advertising Campaign
• Step 3: Design the AdsCreative strategy: process that turns a concept into an
advertisement
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Advertising Appeals: Central Idea of the Ad
Reasons why
Unique Selling Proposition (USP)
Comparative advertising
Demonstration
Slice of life
Lifestyle
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Advertising Appeal: Central Idea of the Ad (cont’d)
Testimonial
Fear appeals
Sex appeals
Humorous appeals
Slogans and jingles
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Step 4: Pretest What the Ads Will Say
• Pretesting: seeks to minimize mistakes by getting
consumer reactions to ad messages before they appear in the media
• Copy testing: measures effectiveness of ads
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Step 5: Choose the Media Types and Media Schedule
• Media planning: develops media objectives, strategies and
tactics
• Aperture: is the best place and time to reach the target
market
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Where to Say It: Traditional Media
• Television• Radio• Newspapers• Magazines• Directories• Out-of-home media• Place-based media
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Where to Say It: Internet advertising
• Banners • Buttons • Search engine and directory listings• Pop-up ads • Email
Spamming Permission marketing
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Media Scheduling: When To Say It
• Media schedule: specifies exact media to use and when to use
it
• Advertising exposure: defines degree to which the target market will see an advertising message in specific vehicles
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Media Scheduling: When To Say It
• Impressions: measures number of people exposed to a message in one or more vehicles
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Figure 13.3: Media Schedule for a Video Game
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Media Scheduling: When To Say It (cont’d)
• Reach: measures % of target market
• exposed to media vehicle
• Frequency: measures average number of times a person in the target group will be exposed to the message
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Media Scheduling: When To Say It
• Gross rating points (GRPs) = reach X frequency
• Cost per thousand (CPM): the cost to deliver a message to 1,000
people
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Media Scheduling: How Often To Say It
• Continuous schedule: puts out steady stream of advertising
• Pulsing schedule: varies the amount of advertising
• Flighting schedule: puts ads out in short, intense bursts
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Step 6: Evaluate the Advertising
• Post-testing: research on consumers’ responses to advertising they
have seen or heard
• Unaided recall
• Aided recall
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Sales Promotion
• Programs designed to build interest in or encourage purchase of a product during a specified period of timeDeliver short-term sales resultsCan target end consumers, channel partners,
and/or employees
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Sales Promotion DirectedToward the Trade: Trade Promotions
• Discounts and dealsMerchandising allowancesCase allowances
• Increasing industry visibility Trade showsPromotional products Incentive programs (push money)
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Sales Promotion DirectedToward Consumers
• Price-Based Consumer Sales PromotionCoupons Price deals, refunds, and rebatesFrequency (loyalty/continuity) programs Special/bonus packs
SMARTSOURCE.COM
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Sales Promotion DirectedToward Consumers (cont’d)
• Attention-getting consumer promotionContests and sweepstakesPremiumsSamplingPoint-of-purchase promotionProduct/brand placementsCross-promotion
FREESAMPLES.COM
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Public Relations
• PR: communication function that seeks to build good
relationships with an organization’s publics.
• Publics include consumers, stockholders, legislators, and other firm stakeholders.
• Basic rule of good PR: do something good, then talk about it.
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Public Relations (cont’d)
• Proactive PR activities stem from firm’s marketing objectives.
• Publicity: unpaid communication about an organization that
gets media exposure.
• PR is even more important when firm’s image is at risk due to negative publicity.
• PR is responsible for preparing a crisis management plan.
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Objectives of Public Relations
• Introducing new products to manufacturers to consumers
• Influencing government legislation
• Enhancing image ofA firm, a city, region, or country
• Calling attention to a firm’s involvement with the community
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Planning a Public Relations Campaign
• A statement of objectives
• Situation analysis
• Specification of publics,
• communicated messages, and
• specific program elements
• Timetable and budget
• Discussion of program evaluation plan
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Public Relations Activities
• Press releases (timely topics, research project stories, and consumer
information releases)
• Internal PR• Investor relations• Lobbying • Speech writing• Corporate identity
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Public Relations Activities (cont’d)
• Media relations
• Sponsorships
• Special events
• Buzz-building: word-of-mouth/blogging
• Advice and counsel
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THE END
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Real People, Real Choices
• BzzAgent, Inc. (Joe Chernov)
• Negative articles questioned “disclosure” in word-of-mouth marketing campaigns
• What public relations strategy to use to respond to the criticism?Option 1: take charge of the discussion.Option 2: defend without being defensive.Option 3: go quiet.
BZZAGENT.COM
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Real People, Real Choices
• BzzAgent, Inc. (Joe Chernov)
• Joe chose option 1: take charge of the discussion.BzzAgent issued a press release announcing it had
enhanced its disclosure policy, becoming the first company to enforce compliance with disclosure policies.
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Discussion
• Some people say advertising is obnoxious, insults their intelligence, and promotes claims that are untrue.
• Others argue it provides value for consumers.--What are some arguments on each
side?--How do you feel about advertising?
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Discussion
• Chevy found that DIY advertising programs can sometimes backfire when consumers created anti-SUV TV commercials. --Should companies avoid DIY campaigns? --What are the benefits of DIY advertising?
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Group Activity
• As an account team for an advertising agency, your group has been assigned a new line of high- quality, high-priced makeup.
• Consider different types of appeals: USP Comparative advertising Fear appeal Celebrity endorsement Slice-of-life ad Sex appeal Humor
• Outline the strengths and weaknesses of each of these appeals for advertising the makeup.
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Discussion
• When Internet travel company Hotels.nl began using blankets on sheep for advertising, one town fined the company for ignoring a ban on advertising along the highways. --What are the positive and negative aspects for
companies of using sheep, or even horses and cows, to advertise products? For consumers?
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Discussion
• Through TV remotes, DVDs, computers, and cable television, technology gives today’s consumers control over the advertising images they see. --How has this affected
the advertising industry so far? --How do you think consumer
control will affect advertising in the future?
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Discussion
• Companies sometimes teach consumers a “bad lesson” by overusing sales promotion.
• As a result, consumers expect the product always to be “on sale.” --What are some products for which this bad lesson
has occurred? --How can companies prevent it?
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Group Project
• Your group works for a firm producing several brands of household cleaning products. --Develop recommendations for trade and consumer
sales promotion activities for a new laundry detergent --In a role-playing situation, present and defend your
recommendations to your boss.
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Discussion
• Some critics denounce PR specialists, calling them “flacks” or “spin doctors” whose job is to hide the truth about a company’s problemsWhat is the proper role of PR within an organization?Should PR specialists try to put a good face on bad
news?
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Group Activity
• As PR professionals employed by your university, your group must develop strategies for improving your school’s PR program.--Write a memo to your university
president with your recommendations.
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Marketing in Action Case:You Make the Call
• What is the decision facing Amazon?
• What factors are important in understanding this decision situation?
• What are the alternatives?
• What decision(s) do you recommend?
• What are some ways to implement your recommendation?
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Keeping It Real: Fast-Forward to Next Class, Decision Time at IBM
• Meet Esther Ferre, a General Manager at IBM.
• IBM sales teams are responsible for IBM relationships with clients and are evaluated on maximizing revenue and profits.
• The decision: How to allocate resources across a broad customer base?
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Marketing Plan Exercise
• Think about one of the following: A new brand of toothpaste Your local city or state Your university
• Outline an advertising campaign for the product and discuss the following: The type of appeal The main message The media (include at least one print and one broadcast
medium) How you’ll develop the ads to share the same look and feel