Transcript Advertising, Sales Promotion, and Public Relations

Chapter 13
Advertising, Sales Promotion
and Public Relations
Prepared by
Deborah Baker
Texas Christian University
Chapter 13 Ver 2e
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Chapter 13 Objectives
1. Discuss the effect advertising has on market
share, consumers, brand loyalty, and
perception of product attributes.
2. Identify the major types of advertising.
3. Describe the advertising campaign process.
4. Describe media evaluation and selection
techniques.
(continued)
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Chapter 13 Objectives
5. Define and state the objectives of sales
promotion.
6. Discuss the most common forms of
consumer sales promotion.
7. List the most common forms of trade
sales promotion.
8. Discuss the role of public relations
in the promotional mix.
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Effects of Advertising
Advertising
and
Market Share
Advertising
and the
Consumer
Advertising
and
Brand Loyalty
• New brands spend proportionately more
for advertising than old ones.
• Beyond a certain level, diminishing returns
set in.
• Average U.S. citizen is exposed to
hundreds of ads each day.
• Advertising may change a person’s
negative attitude.
• Consumers with high brand loyalty are
least susceptible to competitive ads.
• Ads reinforce positive attitudes.
• Advertising can affect a consumer’s rank
Advertising
of brand attributes.
and
Product Attributes
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Major Types of Advertising
The Public
Institutional
Advertising
Investment Community
Customers
Employees
Types
of
Advertising
Pioneering
Product
Advertising
Competitive
Comparative
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Product Advertising
Pioneering
Competitive
Comparative
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• Stimulates primary demand for
new product or category
• Influence demand for brand in the
growth phase of the PLC.
• Often uses emotional appeal.
• Compares two or more competing
brands’ product attributes.
• Used if growth is sluggish, or if
competition is strong.
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Steps in Creating an Advertising Campaign
Determine the
campaign objectives.
Make creative decisions.
Make media decisions.
Evaluate the campaign.
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Make Creative Decisions
Identify
Product Benefits
 “Sell the Sizzle, not the Steak”
 Sell product’s benefits, not features
 A benefit should answer
“What’s in it for me?”
 Ask “So?” to determine
if a benefit
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Common Advertising Appeals
Profit
Product saves, makes, or protects money
Health
Appeals to body-conscious or health seekers
Love or romance
Used in selling cosmetics and perfumes
Fear
Social embarrassment, old age, losing health
Admiration
Reason for use of celebrity spokespeople
Convenience
Used for fast foods and microwave foods
Fun and pleasure
Key to advertising vacations, beer, parks
Vanity and egotism
Used for expensive or conspicuous items
Environmental
Consciousness
Centers around environmental protection
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Execute the Message
Scientific
Slice-of-Life
Musical
Demonstration
Mood or
Image
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Lifestyle
Common
Executional
Styles
Spokesperson/
Testimonial
Fantasy
Real/
Animated
Product
Symbols
Humorous
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Make Media Decisions
Newspapers
Magazines
Radio
Television
Major Types
of
Advertising
Media
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Outdoor
Internet
Alternative Media
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National Ad Spending for Media--1997
Yellow Pages
Internet
Magazines
Radio
Newspapers
Television
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Outdoor
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Newspapers
Advantages
 Year-round readership
 Geographic selectivity
 Immediacy
 High individual market
coverage
 Short lead time
Disadvantages
 Limited demographic
selectivity
 Little color
 May be expensive
 Low pass-along rate
 Clutter
 Mass market medium
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Magazines
Advantages
Disadvantages
 Good reproduction
 Higher cost per contact
 Demographic selectivity
 Long-term advertiser
commitments
 Regional/local selectivity
 Long advertising life
 High pass-along rate
 Slow audience build-up
 Limited demonstration
capabilities
 Lack of urgency
 Long lead time
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Radio
Advantages
 Selectivity and audience
segmentation
 Immediate and portable
Disadvantages
 No visual treatment
 Short advertising life
 Geographic flexibility
 High frequency to generate
retention
 Entertainment carryover
 Commercial clutter
 Short-term ad
commitments
 Background distractions
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Television
Advantages
Disadvantages
 Wide diverse audience
 Short life of message
 Low cost per thousand
 Expensive with high
campaign cost
 Creative and demonstrative
 Immediacy of messages
 Entertainment carryover
 Demographic selectivity
with cable stations
 Little demographic
selectivity with network
 Long-term advertiser
commitments
 Long lead times
 Clutter
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Outdoor Media
Advantages
Disadvantages
 High exposure frequency
 Short message
 Moderate cost
 Lack of demographic
selectivity
 Flexibility
 Geographic selectivity
 High “noise” level
 Broad, diverse market
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Internet and World Wide Web
Advantages
 Fast growing
 Ability to reach narrow
target audience
 Short lead time
 Moderate cost
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Disadvantages
 Difficult to measure ad
effectiveness and ROI
 Ad exposure relies on
“click through”
 Not all consumers have
access to internet
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Alternative Media
Fax Machines
Video Shopping Carts
Examples of
Alternative Media
Computer
Screen Savers
Interactive Kiosks
Ads in
Movies and Videos
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Media Selection Considerations
Cost per Contact
Factors
Influencing
Media Mix
Decisions
Reach
Frequency
Audience Selectivity
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Media Scheduling
Continuous Media Schedule
Flighted Media Schedule
Pulsing Media Schedule
Types of
Media Schedules
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Seasonal Media Schedule
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Sales Promotion
Sales Promotion
Targets
Consumer
Sales Promotion
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Trade
Sales Promotion
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Sales Promotion
Immediate Purchases
Increase Trial
Boost consumer inventory
Encourage repurchase
Objectives
of
Sales Promotion
Increase ad effectiveness
Encourage brand switching
Encourage brand loyalty
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Tools for Consumer Sales Promotion
Coupons and Rebates
Premiums
Loyalty Marketing Programs
Contests & Sweepstakes
Popular Tools
for
Consumer Sales
Promotion
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Sampling
Point-of-Purchase Promotion
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Consumers & Sales Promotion Goals
Type of Buyer
Loyal Customers
Competitor’s
Customers
Brand Switchers
Price Buyers
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Desired Results
Sales Promotion
Examples
• Reinforce behavior
•Loyalty marketing
• Increase consumption
•Bonus packs
• Change timing
•Sampling
• Break loyalty
•Sweepstakes,
• Persuade to switch
contests, premiums
•Price-lowering
• Persuade to buy your
promotion
brand more often
•Trade deals
• Appeal with low
•Coupons, price-off
prices
packages, refunds
• Supply added value
•Trade deals
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Tools for Trade Sales Promotion
Trade Allowances
Push Money
Training
Free Merchandise
Unique Tools
for
Trade Sales
Promotion
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Store Demonstration
Conventions & Trade Shows
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Functions of Public Relations
Press Relations
Product Publicity
Corporate Communication
Public Affairs
Lobbying
Employee and Investor Relations
Crisis Management
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Major Public Relations Tools
New Product Publicity
Product Placement
Tools
Used By
PR
Professionals
Customer Satisfaction
Phone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Internet Web Sites
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