Transcript Chapter 13 PowerPoint Slides

CHAPTER THIRTEEN
ADVERTISING, SALES
PROMOTION AND
PUBLIC RELATIONS
Prepared by Jack Gifford
Miami University (Ohio)
© 2001 South-Western College
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ADVERTISING AND THE CONSUMER
Advertising affects everyone’s lives and
influences many purchases.
Consumers turn to advertising for its
informativeness as well as its entertainment
value
The average American watches 72 minutes of
commercials on TV per day
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ADVERTISING AND BRAND LOYALTY
Consumers with a high degree of brand
loyalty are least susceptible to the
influence of advertising for competing
goods and services.
Advertising also reinforces positive
attitudes toward brands.
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ADVERTISING AND PRODUCT
ATTRIBUTES
Advertising can affect the way consumers
rank a brand’s attributes, such as color,
taste, smell, and texture
Advertising can also influence the order
in which these attitudes are valued and
the relative magnitude of the attribute
importance
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MAJOR TYPES OF ADVERTISING
Institutional
advertising
Product
advertising
Promotes the corporation
as a whole
Designed to influence
corporate identity
Is not usually actionoriented
Promotes good corporate
citizenship
May take the form of
advocacy advertisements
of controversial issues
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MAJOR TYPES OF ADVERTISING
Institutional
advertising
Product
advertising
Promotes the benefits of a
specific good or service
Usually immediate actionoriented
Includes pioneering,
competitive, and
comparative advertising
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MAJOR TYPES OF ADVERTISING:
PRODUCT ADVERTISING (CONTINUED)
Pioneering advertising
Stimulate primary
demand for a new
product
First stage of the
product life cycle
Generate attention and
interest
Primarily informational
Competitive advertising
Used during growth stage
of product life cycle
Promote brand preference
Persuade and remind
Comparative advertising
Must not make false or
misleading statements
(FTC)
Legality and strength of
message is different
around the globe
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CREATING AN ADVERTISING
CAMPAIGN
Is a series of related
advertisements
focusing on a
common theme,
slogan, and set of
advertising appeals
Is related to a specific
product or service
and runs for a defined
period of time
DETERMINE
CAMPAIGN
OBJECTIVES
MAKE CREATIVE
AND MEDIA
DECISIONS
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EVALUATE THE
CAMPAIGN
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CREATING AN ADVERTISING
CAMPAIGN
DETERMINE
CAMPAIGN
OBJECTIVES
MAKE CREATIVE
AND MEDIA
DECISIONS
EVALUATE THE
CAMPAIGN
 Identify specific
communication task
 Identify specific target
market(s)
 Define period, desired
outcomes, and how
these outcomes will be
measured
 DAGMAR = Define
Advertising Goals for
Measured Advertising
Results
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CREATING AN ADVERTISING
CAMPAIGN
DETERMINE
CAMPAIGN
OBJECTIVES
MAKE CREATIVE
AND MEDIA
DECISIONS
EVALUATE THE
CAMPAIGN
Creative and media
decision must work
together
Identify product
benefits; “People buy
holes, not drills”
Give the customer a
reason to buy your
product
Create a unique
selling position
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CREATING AN ADVERTISING
CAMPAIGN
DETERMINE
CAMPAIGN
OBJECTIVES
Execute the
message & media
AIDA: Attention,
Interest, Desire,
Action
Select one or more
execution styles
listed on the
following “page”
MAKE CREATIVE
AND MEDIA
DECISIONS
EVALUATE THE
CAMPAIGN
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EXECUTIONAL STYLES FOR
ADVERTISING
Slice-of-life
Lifestyle
Spokesperson /
testimonial
Fantasy
Humorous
Real / animated
product symbols
Mood or image
Demonstration
Musical
Scientific
 Different combinations of
the above are effective in
different parts of the world
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MAKING MEDIA DECISIONS
Internet
Yellow pages
Radio
Television
Outdoor media
Newspapers
Magazines
0
10
20
30
40
50
National Spending in 1997
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MAKING MEDIA DECISIONS: MEDIA
TYPES
Newspapers (20.6%)
Geographical flexibility
Timelines
Often a local media
High use of horizontal and
vertical cooperative
advertising
Short lead time required
Short-term advertiser
commitments
Year-round readership
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MAKING MEDIA DECISIONS: MEDIA
TYPES
Magazines (16.2%)
Good reproduction
Demographic and regional
selectivity
Relatively long advertising
life
High pass along rate
Cost per contact is relatively
high
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MAKING MEDIA DECISIONS: MEDIA
TYPES
Radio (3.0%)
Selectivity and audience
segmentation
Low cost per contact
Short life of message
Portable media/drive-time
audience
Making a comeback in
popularity
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MAKING MEDIA DECISIONS: MEDIA
TYPES
Television (45.0%)
Reach wide, diverse
audience
Low cost per thousand
Creative opportunities and
flexibility (video & audio)
Immediacy of message
Entertainment carryover
Demographic selectivity
with cable
Infomercials
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MAKING MEDIA DECISIONS: MEDIA
TYPES
Outdoor media (1.7%)
Billboards, transit signs,
Signs in sports centers, etc.
Flexible, low-cost,
geographic selectivity
High exposure frequency
Growing in popularity and
innovativeness
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MAKING MEDIA DECISIONS: MEDIA
TYPES
Internet and the World Wide
Web
Huge growth
Widely used search engines
Used for business-to-business
marketing 10:1 today
Many new innovations and
technologies
Entrepreneurial opportunities
http://www.
amazon.co
m
Alternative media: CD-ROM,
kiosks, movies
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MEDIA SELECTION AND SCHEDULING
CONSIDERATIONS
Media selection
considerations
Cost per contact
Reach and frequency
Audience selectivity
Media scheduling
Continuous media
schedule
Flighted vs pulsing
media scheduling
Seasonal media
scheduling
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EVALUATION OF THE ADVERTISING
CAMPAIGN
Measuring outcomes against goals and
objectives
Pre- and post- campaign analysis
Difficulties in measurement
Interaction and effect over time
Cumulative impact
Imperfect measurement tools
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SALES PROMOTIONS
•Contests and
sweepstakes
Sales Promotions are marketing
•Coupons and
rebates
communication activities, other than
advertising, personal selling and public •Sampling
relations, in which a short-term
•Fashion shows
incentive motivates consumers or
•Entertainment
members of the distribution channel to •Premiums
purchase a good or service immediately, •Special
either by lowering the price or adding
incentives, like
trips, free goods,
value.
etc.
•Loyalty
programs
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SALES PROMOTIONS: OBJECTIVES
AND AUDIENCES
Objectives
Audiences
Stimulate immediate
action
Modify behavior and
increase loyalty
Reward performance
Reinforce existing
behavior
Stimulate repeat
purchases
Consumer sales
promotions (the
ultimate consumer
market)
Trade sales promotions
(members of the
marketing channel,
such as wholesalers or
retailers)
Tools include...
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TRADE SALES PROMOTIONS
INCLUDE...
Trade allowances
Push money
Training
Free merchandise
Store demonstrations
Business meetings,
conventions, and trade
shows
Special prizes for
performance
One week vacation for top
salesperson and family to
Disney World
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PUBLIC RELATIONS
Evaluates public attitudes of stakeholders
Identifies issues that may elicit public
concern
Executes programs to…
Gain public acceptance
Change public perceptions
Counter negative events
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SALES PROMOTIONS TARGETED AT
WHOLESALERS AND RETAILERS
Major Forms:
Trade shows
International, national,
or regional
Acts as a marketplace
for intermediaries
Usually category
specific (boats, men’s
apparel, electronics,
etc.)
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SALES PROMOTIONS TARGETED AT
WHOLESALERS AND RETAILERS
Major Forms:
Trade shows
Contests
Motivate sales force
Increase sales levels
Generate excitement
and extra earning
opportunities
Persuade sales people
to push your line over
other similar lines
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SALES PROMOTIONS TARGETED AT
WHOLESALERS AND RETAILERS
Major Forms:
Trade shows
Contests
Point-of-purchase
displays
Capture prime locations
within store
Acts as a silent
salesperson
Stimulate
Attention
Interest
Desire
Action
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SALES PROMOTIONS TARGETED AT
WHOLESALERS AND RETAILERS
Major Forms:
Trade shows
Contests
Point-of-purchase
displays
Cooperative
advertising and
promotional programs
Share cost of
promotional activities
Vertical cooperative
advertising (M-W-,M-R,WR)
Horizontal cooperative
advertising (R-R,W-W, MM)
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SALES PROMOTIONS TARGETED AT
WHOLESALERS AND RETAILERS
Major Forms:
Trade shows
Contests
Point-of-purchase
displays
Cooperative
advertising and
promotional programs
Allowances
Price reductions
Rebates
Free goods
Demonstration products
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SALES PROMOTIONS TARGETED
AT ULTIMATE CONSUMERS
 Product sampling
 Cents-off coupons
 Rebates
 Contests & sweepstakes
 Premiums
 Multi-purchase offers
 Point-of-purchase
materials
 Product placements
 Reach new
customers by
inducing trial use
 New products
 New brands
 Sample size
 Distributed to…
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 Homes
 Retail settings
 Wherever people are
gathered
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SALES PROMOTIONS TARGETED
AT ULTIMATE CONSUMERS
 Product sampling
 Cents-off coupons
 Increase short-term
sales
 Attract new users
 Stimulate heavier
usage
 Encourage brand
switching
 Distributed in-store,
by mail, and via the
Internet
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SALES PROMOTIONS TARGETED
AT ULTIMATE CONSUMERS
 Product sampling
 Cents-off coupons
 Rebates
 Money back from the
manufacturer
 Encourage multiple
purchases (3 box
tops)
 Low cost of
distribution (on
package)
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SALES PROMOTIONS TARGETED
AT ULTIMATE CONSUMERS
 Product sampling
 Cents-off coupons
 Rebates
 Contests & sweepstakes
 Become winners
based upon chance
 Heavily regulated
 Encourage repeat
purchases to
increase chance of
winning
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SALES PROMOTIONS TARGETED
AT ULTIMATE CONSUMERS
 Product sampling
 Cents-off coupons
 Rebates
 Contests & sweepstakes
 Premiums
 Free or at a reduced
price if another
product, the key
brand, is purchased
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 Collect a set of glasses
 Frequent Flyer
Programs
 Brand loyalty
programs
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SALES PROMOTIONS TARGETED
AT ULTIMATE CONSUMERS
 Product sampling
 Cents-off coupons
 Rebates
 Contests & sweepstakes
 Premiums
 Multi-purchase offers
 Two-for-one deals
 Encourages bigger
than normal
purchases
 Helps maintain
customer loyalty
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SALES PROMOTIONS TARGETED
AT ULTIMATE CONSUMERS
 Product sampling
 Cents-off coupons
 Rebates
 Contests & sweepstakes
 Premiums
 Multi-purchase offers
 Point-of-purchase
materials(POP)
 Banners, pamphlets,
coasters, napkins,
matches
 In-store videos
 Shopping cart
“billboards”
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SALES PROMOTIONS TARGETED
AT ULTIMATE CONSUMERS
 Product sampling
 Cents-off coupons
 Rebates
 Contests & sweepstakes
 Premiums
 Multi-purchase offers
 Point-of-purchase
materials
 Product placements
 Product or company
that appears within a
movie or TV show
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PUBLIC RELATIONS AND PUBLICITY
Public Relations is the managerial activity that
identifies, establishes, and maintains beneficial
relationships between a company and its many
stakeholders
Publicity is one means of accomplishing public
relations
Involves a third party
Is free
Limited control over content
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PUBLICITY
News Releases
Press conferences
Staged newsworthy
events
Photo opportunities
Armed forces air shows to
generate recruits and
positive public support
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PUBLICITY
Written news releases
and videos provided
to media
Appearances of
spokespersons
Participation on talk
shows
Provision of apparel
for famous people
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PUBLICITY
Event Sponsorship
Sporting events and
charity causes
Provide financial
resources, equipment,
personal services and/or
facilities
Positive image through
association
©Speedo Invitational Swim
Meet
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PUBLIC RELATIONS AND CRISIS
MANAGEMENT
PR effort that urgently requires
dissemination of information
about an emergency
Product recall
Takeover rumors
Corporate accidents (fires,
environmental accidents, etc.)
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EVALUATING AND MONITORING
PUBLIC RELATIONS
Requires a systematic
gathering of
information for a
company’s many
publics
Maintenance of image
benchmarks
Maintaining the
corporate and public
pulse!
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