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19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

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Page 1: 19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

19-1

Page 2: 19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

19-2

Advertising, Sales

Promotion, and Public Relations

Chapter 19Chapter 19Chapter 19Chapter 19

McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Page 3: 19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

19-3

Chapter GoalsChapter GoalsChapter GoalsChapter Goals

McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

• Nature and scope of advertising, sales promotion, and public relations

• Characteristics of the major types of communication tools

• How advertising campaigns are developed and media are selected

• Alternative ways firms organize the advertising efforts

• How sales promotion is managed to maximize effectiveness

• The role of public relations in the promotion mix

Page 4: 19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

19-4

AdvertisingAdvertising

Verbal and/or visual

Nonpersonalmessage

Delivery through

media

Identified sponsor

PaymentBy sponsorTo mediaCarrying message

Page 5: 19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

19-5

Advertising ExpendituresAdvertising Expenditures

Page 6: 19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

19-6

10 National Advertisers10 National Advertisers

Page 7: 19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

19-7

Types of AdvertisingTypes of Advertising

TARGET: Consumer or BusinessTARGET: Consumer or Business

TYPE OF DEMAND: Primary or SelectiveTYPE OF DEMAND: Primary or Selective

MESSAGE: Product or InstitutionalMESSAGE: Product or Institutional

SOURCE: Commercial or SocialSOURCE: Commercial or Social

Page 8: 19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

19-8

Advertising CampaignAdvertising Campaign

All tasks involved in transforming a theme

into a coordinated advertising program to accomplish a specific goal

for a product or brand

All tasks involved in transforming a theme

into a coordinated advertising program to accomplish a specific goal

for a product or brand

Several different messagesOver an extended time

Using a variety of media

Several different messagesOver an extended time

Using a variety of media

AdvertisingCampaign

Involves

Page 9: 19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

19-9

Developing an Advertising Developing an Advertising CampaignCampaign

Framework for an advertising campaignFramework for an advertising campaign

Identify the

Target audience

EstablishPromotional

goals

SetPromotional

budget

Determinepromotional

theme

Page 10: 19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

19-10

BudgetsBudgets

VerticalCooperativeAdvertising

HorizontalCooperativeAdvertising

Advertisingallowance

Page 11: 19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

19-11

Creating a MessageCreating a Message

AttentionAttention

ExecutionExecution

AppealAppeal

InfluenceInfluence

Page 12: 19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

19-12

Selecting MediaSelecting Media

TypeOf

Media

Specific Media

Vehicles

CategoryOf

Medium

Page 13: 19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

19-13

Selecting Media: General FactorsSelecting Media: General Factors

Objectives of the

Ad

Requirementsof the

Message

AudienceCoverage

Timeand

Location MediaCost

Page 14: 19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

19-14

MediaMedia

TV

MAGAZINES

NEWSPAPERS DIRECT MAIL

RADIO

OUT-OF-HOME INTERACTIVE

YELLOW PAGES

Page 15: 19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

19-15

Cost of AdvertisingCost of Advertising

Page 16: 19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

19-16

Evaluating the Advertising EffortEvaluating the Advertising Effort

DifficultyOf Evaluation

MethodsUsed to Measure

Effectiveness

Page 17: 19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

19-17

Organizing for AdvertisingOrganizing for Advertising

Internal DepartmentsInternal Departments

Advertising AgenciesAdvertising Agencies

Inside department and

Outside Agency

Inside department and

Outside Agency

Page 18: 19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

19-18

Sales PromotionSales Promotion

Demand-stimulating devicesto supplement advertising

and facilitate personal selling

Demand-stimulating devicesto supplement advertising

and facilitate personal selling

TradePromotions

ConsumerPromotions

Page 19: 19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

19-19

Developing Sales Promotion PlansDeveloping Sales Promotion Plans

DetermineObjectives

andStrategies

DetermineBudgets

DirectThe Sales

PromotionEffort

SelectAppropriateTechniques

Page 20: 19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

19-20

Major Sales Promotion DevicesMajor Sales Promotion Devices

Page 21: 19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

19-21

Examples of Product PlacementsExamples of Product Placements

Page 22: 19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

19-22

Public RelationsPublic Relations

Management tool designed to favorably

influence attitudes toward an organization,

Its products, and its policies

Management tool designed to favorably

influence attitudes toward an organization,

Its products, and its policies

Page 23: 19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

19-23

Benefits of PublicityBenefits of Publicity

Lower CostsLower Costs

Increased attentionIncreased attention

TimelinessTimeliness

More informationMore information

Page 24: 19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

19-24

Limitations of PublicityLimitations of Publicity

Loss of controlLoss of control

Limited exposureLimited exposure

Publicity is not freePublicity is not free

Page 25: 19-1. 19-2 Advertising, Sales Promotion, and Public Relations Chapter 19 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights.

19-25

Key Terms and ConceptsKey Terms and ConceptsKey Terms and ConceptsKey Terms and Concepts

McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Advertising

Business-to-Consumer advertising

Primary-demand advertising

Selective-demand advertising

Comparison advertising

Product advertising

Institutional advertising

Advertising campaign

Cooperative advertising

Advertising media

Cost per thousand

Direct tests

Indirect tests

Advertising agency

Sales promotion

Public relations

Publicity


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