Transcript Solomon_6e_PPT_Chapter_13

Chapter 13
Advertising, Sales Promotion,
and Public Relations
Chapter Objectives
 Understand advertising, the major types of
advertising, and the criticisms of advertising
 Describe the process of developing an
advertising campaign and how marketers
evaluate advertising
 Explain sales promotion, and describe the
different types of trade and consumer sales
promotions activities
 Explain the role of public relations (PR) and the
steps in developing a PR campaign
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Real People, Real Choices:
Decision Time at BzzAgent
 How should the firm respond to the
negative articles which questioned
“disclosure” in word-of-mouth
marketing campaigns?
– Option 1: Take charge of the discussion
– Option 2: Defend without being defensive
– Option 3: Go quietly
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Advertising:
The Image of Marketing
 Marketers spent $285 billion on
advertising in the United States in 2006
 Marketers are increasingly diverting
more money into alternative media
– Product and brand placements are growing
 Advertising:
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– Nonpersonal communication (paid for by an
identified sponsor) that uses mass media to
persuade or inform the targeted
audience
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Types of Advertising
 Product
advertising:
Focuses on a
specific good or
service
– The ad at left is
attempting to
generate primary
demand for beef
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Types of Advertising
 Institutional advertising:
Promotes the activities, personality, or
point of view of an organization or
company
– Public service announcements (PSA)
– Advocacy advertising
View American Red Cross PSAs
How do they differ from ads for services?
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Types of Advertising
 Retail and local advertising:
Encourages customers to shop at a
specific store or use a local service
– Ad copy discusses store hours, locations,
sales, and featured products
 Do-it-yourself advertising
– “Generation C” phenomenon: consumergenerated ad content on the Web
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It’s Debatable
Class Discussion Question
Marketers of items from Doritos to MasterCard are
capitalizing upon the “Generation C” craze to locate
fresh concepts for advertising. At MasterCard’s
Priceless.com Web site, for example, consumers
submit their own story and photos explaining how
MasterCard helped make an experience or trip
“Priceless.” Is consumer-generated advertising
content here to stay? Should marketers compensate
consumers for their efforts? Where do you stand?
Visit Priceless.com
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Who Creates Advertising?
 Advertising campaign:
A coordinated, comprehensive plan that
carries out promotion objectives and results
in a series of ads placed in media over a
period of time
– Limited-service agency
– Full-service agency
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Account management
Creative services
Research and marketing services
Media planning
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Ethical Issues in Advertising
 Ethical criticisms of advertising:
– Advertising is manipulative
– Advertising is deceptive and untruthful
– Advertising is offensive and in bad taste
– Advertising creates and perpetuates
stereotypes
– Advertising causes people to buy things
that they don’t really need
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Figure 13.1
Steps to Develop an Advertising Campaign
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Steps in Developing an
Advertising Campaign
 Step 1: Understand
the target audience
– Getting inside the
consumer’s head can
help marketers
understand how the
product fits into users
lives
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Steps in Developing an
Advertising Campaign
 Step 2: Establish
message and budget
objectives
– Inform? Persuade?
Remind? What seems
to be the objective of
the ad shown at left?
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Steps in Developing an
Advertising Campaign
 Step 3: Create the ads
– Creative strategy:
The process that turns
a concept into an
advertisement
– Advertising appeal:
The central idea of the
advertisement
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Types of Advertising Appeals
 Reasons why—the
unique selling
proposition (USP)
 Comparative
advertising
 Demonstration
 Testimonial
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Types of Advertising Appeals
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Slice of life
Lifestyle
Fear appeals
Sex appeals
Humorous appeals
Slogans, jingles,
and music
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Steps in Developing an
Advertising Campaign
 Step 4: Pretest what the ads will say
– Pretesting:
Research method that seeks to minimize
mistakes by getting consumer reactions to ad
messages before they appear in the media
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Steps in Developing an
Advertising Campaign
 Step 5: Choose the media type(s) and
media schedule
– Media planning:
The process of developing media objectives,
strategies, and tactics
– Aperture:
The best place and time to reach the target
market
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Where to Say It:
Traditional Media
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Television
Radio
Newspapers
Magazines
Directories
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Where to Say It:
Internet Advertising
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Banners
Buttons
Pop-up ads
Search engine and directory listings
E-mail
– Spamming
– Permission marketing
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Where to Say It:
Indirect Forms of Advertising
 Directories
 Branded
entertainment
 Out-of-home media
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 Advergaming
 Place-based media
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Figure 13.3
Media Schedule for a Video Game
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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 ad message in specific vehicles
 Impressions:
– Measures number of people exposed to a
message in one or more vehicles
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Media Scheduling: When to Say It
 Reach:
– Measures percentage 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
 Gross rating points (GRPs)
– Reach multiplied by 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
 Typical advertising patterns:
– Continuous schedule:
Steady stream of advertising throughout year
– Pulsing schedule:
Varies the amount of advertising based on
when the product is likely to be demanded
– Flighting schedule:
Advertising in short, intense bursts, alternated
with periods in which no
advertising is done
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Steps in Developing an
Advertising Campaign
 Step 6: Evaluate the advertising
– Posttesting:
Research on consumers’ responses to
advertising they have seen or heard
• Unaided recall
• Aided recall
• Attitudinal measures
NutriSystem Video
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Sales Promotion
 Sales promotions:
Programs designed to build interest in
or encourage purchase of a product
during a specified period of time
– Deliver short-term sales results
– Can target end consumers, channel partners,
and/or employees
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Sales Promotion Directed
Toward the Trade
 Allowances, discounts, and deals
– Merchandising allowances
– Case allowances
 Co-op advertising
 Increasing industry visibility
– Trade shows
– Promotional products
– Point-of-purchase (POP)
– Incentive programs
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Trade Shows
Trade shows are a great place to introduce new
products, meet potential customers, and take orders
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Sales Promotion Directed
Toward Consumers
 Price-based
consumer sales
promotion
– Coupons
– Price deals,
refunds, and
rebates
– Frequency
(loyalty/continuity)
programs
– Special/bonus
packs
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Sales Promotion Directed
Toward Consumers
 Attention-getting consumer promotions
– Contests and sweepstakes
• Contests are based on skill
• Sweepstakes are based on chance
– Premiums
– Sampling
• The premiere technique for generating new
product trial
FreeSamples.com
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Public Relations
 Public relations:
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
 Proactive PR activities stem from a
firm’s marketing objectives
– Publicity
Unpaid communication about an organization
that gets media exposure
 PR is critical when a firm’s image is at
risk due to negative publicity
– PR staff is responsible for preparing
a crisis management plan
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Objectives of Public Relations
 Typical objectives include:
– Introducing new products to manufacturers
– Introducing new products to consumers
– Influencing government legislation
– Enhancing the image of a firm
– Enhancing image of a city, region, or country
– Calling attention to a firm’s involvement with
the community
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Planning a PR Campaign
 Multistep process includes:
– Situation analysis
– A statement of objectives
– 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
(various forms)
 Internal PR
 Investor relations
 Lobbying
 Speech writing
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 Corporate
identity
 Media relations
 Sponsorships
 Special events
 Advice and
counsel
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Eye-Catching Publicity
Tylenol hired runners to run on treadmills above Times Square to
promote their sponsorship of the NY City Marathon
The Weinermobile always gets attention!
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Real People, Real Choices:
Decision Made at BzzAgent
 Joe chose option 1
– Implementation: BzzAgent took charge of the
discussion, refined their disclosure policy,
enforced compliance, researched the
relationship between disclosure and
campaign performance, and issued press
releases about revised policy
– Measuring success: The disclosure debate
did not interfere with the company’s financing
or client relationships
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Keeping It Real: Fast-Forward to
Next Class Decision Time at Woodtronics
 Meet Jeffrey Brechman, a principal of
the Woodtronics firm
 Woodtronics designs and builds
trading room furniture, command
centers, and network control centers
 The decision to be made:
Should Jeffrey sell the new or original
product to the Jersey City client?
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