advertising, sales promotion, and public relations

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Advertising, Sales Promotion, and Public Relations

Chapter 18


Objectives1. Identify the three major advertising objectives and the

two basic categories of advertising.2. List the major advertising strategies.3. Describe the process of creating an advertisement.4. List and compare the major advertising media.5. Outline the organization of the advertising function and

the role of an advertising agency.6. Identify the principal methods of sales promotion.7. Explain the roles of cross promotions, public relations,

publicity, and ethics in an organization’s promotional strategy.

8. Explain how marketers assess promotional effectiveness.


Advertising• Involves paid nonpersonal communication through various

media with the purpose of informing or persuading members of a particular audience.

• Used by marketers to reach target markets.• A typical consumer is exposed to hundreds of advertising

messages each day.• Provides an efficient, inexpensive, and fast method of

reaching the ever-elusive, increasingly segmented consumer market.


Two Broad Categories of Advertisements

1. Product advertising is nonpersonal selling of a particular good or service.• This is the type of advertising the average person

usually thinks of.

2. Institutional advertising, in contrast, promotes a concept, an idea, a philosophy, or the goodwill of an industry, company, organization, person, geographical location, or government agency.• Often closely related to the public-relations function

of the enterprise.


Advertising Objectives in Relation to Stage in the Product Life Cycle

1. Informative advertising seeks to develop initial demand for a good, service, organization, person, place, idea, or cause.

2. Persuasive advertising attempts to increase demand for an existing good, service, organization, person, place,

3. Reminder advertising strives to reinforce previous promotional activity.


Comparative Advertising


Creating Ads“What does J. Walter Thompson stand for?

We are for Brands. We are for bringing Brands to life. We are for bringing Brands back to life, where necessary. We are for nurturing, building and sustaining Brands so that this should not become necessary. We are for Brands you can eat, or drink, or drive, or read, or wear, or give, or receive, or join; technological Brands, trendy Brands, traditional Brands. We are for Brands which cross borders and Brands from across the street. More than anything, we are for Branding Ideas vivid enough to make all of these things possible, in every communications channel conceivable. After all, we have our own Branding to think about...”

http://www.jwtworld.com/jwt/subindex.html?url=portfolio/index_y.html

http://www.jwtworld.com/


1.Retail Advertising, which includes all advertising by retail stores that sell goods or services directly to the consuming public.– Varies widely in its effectiveness.– Source, message, and shopping experience seem to

affect consumer attitudes toward these advertisements.

2.Cooperative advertising - A retailer often shares advertising costs with a manufacturer or wholesaler.– Originated to take advantage of the media’s practice of

offering lower rates to local advertisers than to national ones.

– Can create vertical links.

Advertising


Creating an Advertisement

1. Develop Goals2. Create Plan3. Develop and create ad4. Select media


Elements of the Advertising Planning Process


Advertising Messages

1. Starts with the customer benefits and moves to the creative concept phase.

2. Marketers work to create an ad with meaningful, believable, and distinctive appeals.


An Advertisement Should…1. Gain attention and

interest

2. Inform and/or persuade

3. Eventually lead to a purchase or other desired action.


Comparison of Advertising Media Alternatives

MEDIA OUTLET

PERCENTAGE OF TOTAL*

ADVANTAGES DISADVANTAGES

Broadcast

Network television

17 Mass coverage; repetition; flexibility; prestige High cost; temporary message; public distrust; lack of selectivity

Cable television 8 Mass coverage; repetition; flexibility; prestige Temporary message

Radio 8 Immediacy; low cost; flexibility; targeted audience; mobility

Short life span; highly fragmented audience

Print

Newspapers 19 Tailored to individual communities; ability to refer back to ads

Short life span

Direct mail 19 Selectivity; intense coverage; speed; flexibility; opportunity to convey complete information; personalization

High cost; consumer resistance; dependence on effective mailing list

Magazines 5 Selectivity; quality image reproduction; long life; prestige

Lack of flexibility

Outdoor 2 Quick, visual communication of simple ideas; link to local goods and services; repetition

Brief exposure; environmental concerns

Electronic

Internet 3 Two-way communications; flexibility; link to self-directed entertainment

Poor image reproduction; limited scheduling options; difficult to measure effectiveness

*An estimated 20 percent is spent on a variety of miscellaneous media, including Yellow Pages listings, business papers, transit displays, point-of-purchase displays, cinema advertising, and regional farm papers.SOURCE: Data from “Advertising Boom in U.S. Ended in ’01,” Advertising Age, May 13, 2002, p. 24.


Media Scheduling

1.Setting the timing and sequence for a series of advertisements.

2.A variety of factors influence this decision

1.Sales patterns

2.Repurchase cycles

3.Competitors’ activities


Alloy & Media Scheduling

Alloy is a media, direct marketing and marketing services company focusing on Generation Y. Their media scheduling integrates direct mail catalogs, print media, websites, on-campus marketing programs, and promotional events.

http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=ALOY&script=2100


Measure the Effectiveness of Media Schedule Plans1. Reach refers to the number of different people or

households exposed to an advertisement at least once during a certain time period.

2. Frequency refers to the number of times an individual person is exposed to an advertisement during a certain time period.• By multiplying reach times frequency, advertisers

quantitatively describe the total weight of a media effort, which is called the campaign’s gross rating point.


Sales Promotion Marketing activities other than personal selling,

advertising, and publicity. Accounts for double the promotional dollar outlays of

advertising. Originally intended as short-term incentives aimed at

producing immediate consumer buying responses. Traditionally, these techniques were viewed as

supplements to other elements of the firm’s promotional mix.

Today, however, marketers recognize them as an integral part of many marketing plans.

Shifted from short-term to long-term goals.


Principal Methods of Sales Promotion

Two major categories:1. Consumer-oriented promotions take the form of

coupons and refunds, samples, contests and sweepstakes, and specialty advertising.

2. Trade promotions include trade allowances, point-of-purchase advertising, trade shows, and dealer incentives, contests, and training programs.


There are many companies that are taking advantage of sampling to promote their products.

– Many of those same companies have found the internet to be an effective tool to market their products through sampling.

– The StartSampling Web Site is just one place marketers can use to provide samples and gather information on the market.

Sampling as a Promotional Tool

http://www.startsampling.com/


Assessing Promotional Effectiveness

1. Pretesting is the assessment of an ad’s effectiveness before it is actually used.• Includes conviction tests and blind product tests.

2. Posttesting is the assessment of the ad’s effectiveness after it has been used. • Include readership test, unaided recall tests, inquiry

tests, and split runs.


Advertising Ethics

Puffery and Deception• Puffery refers to exaggerated claim of a product’s

superiority or the use of subjective or vague statements that many not be literally true.


UCC

The Uniform Commercial Code standardizes sales and business practices throughout the U.S. It makes a distinction between puffery and any specific or quantifiable statement about product quality or performance that constitutes an “express warranty.”

advertising, sales promotion, and public relations

Documents