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Advertising,Advertising,Sales Promotion, andSales Promotion, and
Public RelationsPublic Relations
Chapter 16
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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
Developing theadvertisingstrategy
Evaluatingadvertising
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
eyeyecisionsecisions
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Advertising
Setting objectives
Setting the budget
Developing theadvertisingstrategy
Evaluatingadvertising
Creative challenges
Mediafragmentation
Soaring media costs
Advertising clutter
Creating ad messages
Message strategyv Creative
conceptvAdvertising
appeal
Message execution
v Manyexecution
eyeyecisionsecisions
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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
Developing theadvertisingstrategy
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
Developing theadvertisingstrategy
Evaluatingadvertising
Measuringcommunicationseffects Copy testing
Consumer recall
Product awareness
Product knowledge Product preference
Measuring sales effect Past vs. current
sales comparison
Experimentation
eyeyecisionsecisions
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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