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19-1© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
C H A P T E R
Advertising, Public Relations, and Sales Promotions
19
McGraw-Hill/Irwin Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.
19-2© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
L E A R N I N G O B J E C T I V E S
Describe the steps in designing and executing an advertising campaign.
Identify three objectives of advertising.
Describe the different ways that advertisers appeal to consumers.
Identify the various types of media.
Identify agencies that regulate advertising.
Describe the elements of a public relations toolkit.
Identify the various types of sales promotions.
Advertising, Public Relations, and Sales Promotions
LO1
LO2
LO3
LO4
LO5
LO6
LO7
19-3© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Tropicana
Courtesy Tropicana Products, Inc.
19-4© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Steps in Planning and Executing an Ad Campaign
Identify target audience
Set advertising objectives
Determine the advertising Budget
Convey the message
Evaluate and select media
Create advertisements
Assess impact
Advertising Age Website
19-5© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Identify Target Audience
Conduct research
Use the information to set the tone
Select the mediaGetty Images/Comstock Images
19-6© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Set Advertising Objectives
Push strategyPull strategy
©Brand X Pictures/PunchStock
©Comstock/PunchStock
19-7© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Advertising Objectives
Inform
Persuade
Remind
19-8© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Advertising Objectives
Designing an ad for a
delicate topic for
parents and kids
Courtesy The Procter & Gamble Company
19-9© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Iams Pet
How does this ad
inform, persuade, and
remind?
©Procter & Gamble.
19-10© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Informative Advertising
Create and build brand awareness
Push the consumer through the buying cycle
Inform customers about upcoming sales events or arrival of new merchandise
©TJX Companies, Inc.
19-11© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Persuasive Advertising
Generally occurs in the growth and early maturity stages of the PLC when competition is most intense
May be used to reposition an established brand in the later stage of the PLC
©The Procter & Gamble Company Used by permission
19-12© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Reminder Advertising
Communication used to remind or prompt repurchases
Occurs after the products have gained market acceptance
Used by Permission of Deutsch Inc as Agent for National Fluid Milk Processor Promotion Board
19-13© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Product-focused advertisements
Institutional advertisements
Focus of Advertisements
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19-14© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Social Marketing
Public Service Advertising (PSA)
Under Federal Communication Commission
rules, broadcasters must devote a specific amount of
free airtime to PSAs
Courtesy of the National Crime Prevention Council, ww.ncpc.org
19-15© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
The AdCouncil
Courtesy The Advertising Council, Inc. Courtesy The Advertising Council, Inc.
19-16© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
The TRUTH Takes Hold
How to get young consumers to quit smoking?
Part of the tobacco settlement: “raising generation that would be smoke free”
TRUTH uses a hard-hitting media campaign
In your face adsCourtesy American Legacy Foundation
19-17© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Determining Advertising Budget
Super Bowl Ads
Considerations:
Role that advertising plays in their attempt to meet their overall promotional objectives
Expenditures vary over the course of the Product Life Cycle
Nature of the market and the product influence the size of the budget
19-18© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Convey the Message
Unique selling proposition (USP)
Red Bull . . . Gives You Wings
United Negro College Fund . . . A mind is a terrible thing to waste.
Nike . . . Just Do It.
State Farm Insurance . . . Like a good neighbor, State Farm is there
TNT . . . We know drama
19-19© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
The Message
CLOROX® is a registered trademark of The Clorox Company. Used with permission.
19-20© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
The Appeal
Emotional appeal
Informational appeal
©P
roct
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& G
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©P
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19-21© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Emotional Appeals in Advertising
19-22© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Symbols Help to Convey Messages
Courtesy Con Agra Foods, Inc.
19-23© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Evaluate and Select Media
Media planning
Media mix
Media buy
©Photodisc/Getty Images The McGraw-Hill Companies, Inc/John Flournoy,
photographer
Ryan McVay/Getty Images Photodisc/Getty Images
19-24© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Mass and Niche Media
Mass media reach large anonymous audience
Niche media reach a smaller more targeted
audience
©Digital Vision/PunchStock
©Digital Vision/PunchStock
19-25© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Choosing the Right Medium
19-26© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Viral Marketing Campaign
Courtesy Office Max
19-27© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Determine the Advertising Schedule
Continuous
Pulsing
Flighting
©Procter & Gamble
19-28© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Create Advertisements
Ads
The type of medium
determines the execution style
Creativity plays a major role in the execution
stage
Creativity should not
overshadow the message
The execution style must match the
medium and objectives
19-29© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
What appeal is being used in this advertisement?
Is this ad effective in delivering the selling message?
©Procter & Gamble
19-30© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Assess Impact Using Marketing Metrics
Pretesting
Tracking
Protesting
19-31© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1. What are the steps involved in planning an ad campaign?
2. What are the differences between informational, persuasive, and reminder advertising?
3. What are the pros and cons of the different media types?
4. How can the effectiveness of advertising be evaluated?
CHECK YOURSELF
19-32© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Regulatory and Ethical Issues in Advertising
19-33© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Puffery
©B
ill A
ron/
Ph
oto
Ed
it
19-34© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Public Relations
TOMS Shoes Website
19-35© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1. Why do companies utilize public relations as part of their IMC strategy?
2. What are the elements of a public relations toolkit?
CHECK YOURSELF
19-36© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Sales Promotions
Can be targeted at either the end user consumers or channel members
Can be used in either push or pull strategies
Courtesy Payless Shoe Source, Inc.
19-37© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Types of Sales PromotionPromotion Advantages Disadvantages
Coupons • Stimulates demand. • Allows for direct tracing of sales.
• Has low redemption rates.• Has high cost.
Deals • Encourages trial. • Reduces consumer risk. • May reduce perception of value.
Premiums • Builds goodwill. • Increases perception of value.
• Consumers buy for premium, not product.• Has to be carefully managed.
Contests • Increases consumer involvement. • Generates excitement.
• Requires creativity.• Must be monitored.
Sweepstakes • Increases involvement with the product. • Sales often decline after the sweepstakes is over.
Samples • Encourages trial. • Offers direct involvement. • Has high cost to the firm.
Loyalty Programs • Creates loyalty. • Encourages repurchase. • Has high cost to the firm.
POP Displays • Provides high visibility. • Encourages brand trial.
• Is difficult to get a good location in the store.• Can be costly to the firm.
Rebates • Stimulates demand. • Increases value perception.
• Is easily copied by competitors.• May just advance future sales.
Product Placement • Displays products nontraditionally. • Demonstrates product uses.
• Firm often has little control over display.• Product can be overshadowed.
19-38© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Sales Promotion
What form of sales promotion is represented in this ad?
Do you feel it is an effective promotion?
Courtesy Nestlé SA
19-39© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Using Sales Promotion Tools
Cross-promoting
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The McGraw-Hill Companies, Inc./ Ken Karp, photographer
19-40© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Cross Promotion
Courtesy PetSmart, Inc
19-41© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Evaluated Sales Promotions using Marketing Metrics
Realized margin
Cost of additional inventory
Potential increase in sales
Long-term impact
Potential loss from switches from more profitable items
Additional sales by customers
19-42© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1. What are various forms of sales promotions?
2. What factors should a firm consider when evaluating a sales promotion?
CHECK YOURSELF
19-43© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
An advertising plan is a subsection of the firm’s overall marketing plan that explicitly analyzes the marketing and advertising situation, identifies the objectives of the advertising campaign, clarifies a specific strategy for accomplishing those objectives, and indicates how the firm can determine whether the campaign was successful.
Glossary
19-44© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
A continuous advertising schedule runs steadily throughout the year and therefore is suited to products and services that are consumed continually at relatively steady rates and that require a steady level of persuasive and/or reminder advertising.
Glossary
19-45© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
A flighting advertising schedule is implemented in spurts, with periods of heavy advertising followed by periods of no advertising.
Glossary
19-46© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
Institutional advertisements inform, persuade, and remind consumers about issues related to places, politics, an industry, or a particular corporation.
Glossary
19-47© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
Media buy is the actual purchase of airtime or print pages.
Glossary
19-48© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
The media mix is the combination of the media used and the frequency of advertising in each medium.
Glossary
19-49© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
Media planning is the process of evaluating and selecting the media mix that will deliver a clear, consistent, compelling message to the intended audience.
Glossary
19-50© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
Product-focused advertisements focus on informing, persuading, or reminding customers about a specific product or service.
Glossary
19-51© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
Public service advertising (PSA) focuses on public welfare and generally is sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups.
Glossary
19-52© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
A pull strategy is a strategy in which the goal is to get consumers to pull the product into the supply chain by demanding it.
Glossary
19-53© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
A pulsing advertising schedule combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods.
Glossary
19-54© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
A push strategy is designed to increase demand by focusing on wholesalers, distributors, or sales people.
Glossary