Chapter FifteenAdvertising and Public Relations

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Advertising and Public Relations

Advertising◦ Setting Advertising Objectives◦ Setting the Advertising Budget◦ Developing Advertising Strategy◦ Evaluating Advertising Effectiveness

and Return on Advertising Investment

◦ Other Advertising ConsiderationsPublic Relations◦ The Role and Impact of Public

Relations◦ Major Public Relations Tools

Topic Outline

Advertising

Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor

AdvertisingSetting Advertising Objectives

An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific time

Advertising

Informative advertising is used when introducing a new product category; the objective is to build primary demand

Persuasive advertising is important with increased competition to build selective demand; can resulting in an advertising war.

Reminder advertising is important with mature products to help maintain customer relationships and keep customers thinking about the product

Setting Advertising Objectives

Possible Advertising Objectives

Setting Advertising Budget

Stage in product life cycleMarket shareCompetition

Factors

Advertising

Advertising strategy is the strategy by which the company accomplishes its advertising objectives and consists of:

Creating advertising messagesSelecting advertising media

Developing Advertising Strategy

Developing Advertising Strategy

Advertisements need to break through the clutter: Gain attention Communicate well

Creating the Advertising Message

Advertising

Creative concept is the idea that will bring the message strategy to life and guide specific appeals to be used in an advertising campaign

Characteristics of the appeals include: Meaningful Believable Distinctive

Creating the Advertising Message

Advertising

Message execution is when the advertiser turns the big idea into an actual ad execution that will capture the target market’s attention and interest.

The creative team must find the best approach, style, tone, words, and format for executing the message.

Creating the Advertising Message

AdvertisingCreating the Advertising Message

Slice of life Lifestyle Fantasy

Mood or image Musical Personalit

y symbol

Technical expertise

Scientific evidence

Testimonial or endorsement

Advertising

Message execution also includes: Tone

◦ Positive or negative Attention-getting words Format

◦ Illustration◦ Headline◦ Copy

Creating the Advertising Message

Advertising

Major steps include: Deciding on reach-frequency-impact Selecting media vehicles Deciding on media timing

Selecting Advertising Media

Advertising

Reach is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time

Frequency is a measure of how many times the average person in the target market is exposed to the message

Impact is the qualitative value of a message exposure through a given medium

Selecting Advertising Media

Advertising

Selecting media vehicles involves decisions presenting the media effectively and efficiently to the target customer and must consider the

message’s: Impact Effectiveness Cost

Selecting Advertising Media

Advertising

When deciding on media timing, the planner must consider:

Seasonality Pattern of the advertising

◦ Continuity—scheduling within a given period

◦ Pulsing—scheduling unevenly within a given period

Selecting Advertising Media

Public Relations

Public relations involves building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events

Public relations is used to promote product, people, ideas, and activities

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Public Relations

Lower cost than advertising Stronger impact on public awareness

than advertising

The Role and Impact of Public Relations

Public RelationsMajor Public Relations Tools

News Speeches Special events

Written materials

Corporate identity

materialsPublic service

activities

Buzz marketing

Social networking Internet

Personal Selling

Personal selling is the interpersonal part of the promotion mix and can include:

Face-to-face communicationTelephone communicationVideo or Web conferencing

Personal Selling

Salespeople are an effective link between the company and its customers to produce customer value and company profit by:

Representing the company to customersRepresenting customers to the companyWorking closely with marketing

The Nature of Personal Selling

Managing the Sales Force

Sales force management is the analysis, planning, implementation, and control of sales force activities

Managing the Sales Force

Territorial sales force structure

Product sales force structure

Customer sales force structure

Complex sales force structure

Designing Sales Force Structure

Managing the Sales Force

Territorial sales force structure refers to a structure where each salesperson is assigned an exclusive geographic area and sells the company’s full line of products and services to all customers in that territory

Defines salesperson’s job Fixes accountabilityLowers sales expensesImproves relationship building and selling

effectiveness

Sales Force Structure

Managing the Sales Force

Product sales force structure refers to a structure where each salesperson sells along product lines

Improves product knowledgeCan lead to territorial conflicts

Sales Force Structure

Managing the Sales Force

Customer sales force structure refers to a structure where each salesperson sells along customer or industry lines

Improves customer relationships

Sales Force Structure

Managing the Sales Force

Salespeople are one of the company’s most productive and expensive assets.

Increases in sales force size can increase sales and costs

Workload approach to sales forces size refers to grouping accounts into different classes to determine the number of salespeople needed

Sales Force Size

Managing the Sales Force

Careful selection and training increases sales performance

Poor selection increases recruiting and training costs, lost sales and disrupts customer relationships

Recruiting and Selecting SalespeopleIssues in Recruiting and Selecting

Managing the Sales Force

Fixed amounts

Variable amounts

Expenses

Fringe benefits

Salesperson compensation based on

Managing the Sales Force

The goal of supervision is to help salespeople work smart by doing the right things in the right ways

The goal of motivation is to encourage salespeople to work hard and energetically toward sales force goals

Supervising and Motivating Salespeople

Managing the Sales ForceHow Salespeople Spend Their Time

Managing the Sales Force

Sales reports

Call reports

Expense reports

Evaluating Salespeople and Sales Force Performance

The Personal Selling ProcessThe goal of the personal selling process is to

get new customers and obtain orders from them