22011638 Advertising and Sales Promotion

8/9/2019 22011638 Advertising and Sales Promotion

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Advertising,Advertising,Sales Promotion, andSales Promotion, and

Public RelationsPublic Relations

Chapter 16


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16 - 2

Objectives

Understand the roles of

advertising, salespromotion,and public relations in the

promotion mix. Know the major decisions

involved in developing an

advertising program.


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Objectives

Learn how sales promotion

campaigns are developedand implemented.

Learn how companies use

public relations tocommunicate with theirpublics.


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A few years

ago, only 13%of U.S.recognizedAFLAC

Old ads: warmand fuzzysimilar to

other

1999: AFLAC

developed theduckcampaign toenhance brand

awareness Incredibly

successful:name

recognition is

AFLACFLAC

Case Study


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Definition Advertising

Any paid form ofnonpersonalpresentation and

promotion of ideas,goods, or services by anidentified sponsor.


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Signage in ancient times offersevidence of early advertising.

Modern ad spending tops $231billion in U.S. annually, $500

billion worldwide. Business firms, not-for-profit,

social agencies, and

professionals all advertise.

Advertising


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Advertising

Setting objectives

Setting the budget

Developing theadvertisingstrategy

Evaluatingadvertising

Advertising objectives

can be classified byprimary purpose: Inform

v Introducingnewproducts

Persuadev Becomes more

important ascompetitionincreases

v Comparative

advertising Remind

eyeyecisionsecisions


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Advertising

Setting objectives

Setting the budget



Methods of budgetsetting were listedin chapter 15

Several factors shouldbe considered whensetting the ad

budget: Stage in the PLC Market share

Level ofcompetition

Ad clutter

Degree of brand



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Advertising

Setting objectives

Setting the budget



Creative challenges

Mediafragmentation

Soaring media costs

Advertising clutter

Creating ad messages

Message strategyv Creative

conceptvAdvertising

appeal

Message execution

v Manyexecution



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reative Execution Stylesreative Execution StylesAdvertising

Slice of Life

Lifestyle

Fantasy

Mood orImage

Musical

PersonalitySymbol

TechnicalExpertise

Scientific

Evidence

Te stim o n ia l E v id e n ce o rTe stim o n ia l E v id e n ce o rE n d o rse m e n tE n d o rse m e n t


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Advertising

Setting objectives

Setting the budget


Evaluating

advertising

Select advertisingmedia

Decide on level ofreach, frequencyand impact

Choose among themajor media

types byconsidering:

v Consumermediahabits,nature of

the product,t es of

eyey ecisionsecisions


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ajor Media Typesajor Media TypesAdvertising

Newspapers

Television Direct Mail

Radio

Magazines

Outdoor

In te rn e tIn te rn e t


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Advertising

Setting objectives

Setting the budget



Measuringcommunicationseffects Copy testing

Consumer recall

Product awareness

Product knowledge Product preference

Measuring sales effect Past vs. current

sales comparison

Experimentation



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Organizing the Advertising

Function Small vs. large companies

Nature of advertising

agenciesvAdvantages of advertisingagencies

vDepartments

vCompensation

Advertising


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Advertising to InternationalMarkets

Standardizing worldwideadvertising

vAdvantages include lower

advertising costs,greater global advertisingcoordination, andconsistent global image

vDrawbacks include ignoringdifferences in culture,

Advertising


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Sales Promotion

Sales Promotions areshort-term incentives toencourage the purchaseor sale of a product orservice.

Definition


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Sales Promotions

Can be targeted at finalbuyers, retailers andwholesalers, business

customers, and members ofthe sales force.

The use of sales promotions

has been growing rapidly.

Sales Promotion


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Objectives -- ConsumerPromotions:

Increase short-term sales Generate product trial

Objectives -- Trade Promotions:

Obtaining distribution and shelfspace

Encouraging retailers to advertisethe brand

Objectives -- Sales Force

Sales Promotion


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onsumer Promotion Toolsonsumer Promotion ToolsSales Promotion

Samples Cash Refunds

(Rebates)

Price packs(cents-offdeals)

Advertising

Specialties

Premiums Patronage

Rewards

Point-of-PurchaseCommunications

Contests,Games, and


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Trade Promotion Tools

Discounts ( also called price-off,off-list, and off-invoice)

AllowancesvAdvertising allowancesv

Display allowances Free goods

Push money

Specialty advertising items

Sales Promotion


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Business Promotion Tools

Includes many of the sametools used in consumer andtrade promotions

Two additional tools:vConventions and trade shows

vSales contests

Sales Promotion


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Key Decisions When

Developing the SalesPromotion Program: Size of the incentive

Conditions for participation

Promotion and distribution of theactual sales promotion program

Length of the promotionalprogram

Evaluation

Sales Promotion


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Public Relations:

Building good relations withthe companys variouspublics by obtaining

favorable publicity, buildingup a good corporate image,and handling or heading offunfavorable rumors, stories,

and events.

Definition


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ublic Relations Functionsublic Relations FunctionsPublic Relations

PressRelations

ProductPublicity

Public

Affairs

Lobbying

Investor

Relations Development


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Role and Impact of PublicRelations

Advantages:vStrong impact on public

awareness atlower cost than advertising

vGreater credibility thanadvertising

Publicity is often underused

Good public relations can be

Public Relations


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ublic Relations Toolsublic Relations ToolsPublic Relations

News Speeches

Corporate

IdentityMaterials

Mobile

Marketing

Special Events Written

Materials

AudiovisualMaterials

Public Service

Activities

Documents

22011638 Advertising and Sales Promotion