CHAPTER ADVERTISING, PUBLIC RELATIONS, AND SALES PROMOTIONS 18 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
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C H A P T E R
ADVERTISING, PUBLIC RELATIONS, AND SALES PROMOTIONS
18
McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
18-2
L E A R N I N G O B J E C T I V E S
Advertising, Public Relations, and Sales Promotions
LO1 Describe the steps in designing and executing an advertising campaign.
LO2 Identify three objectives of advertising. LO3 Describe the different ways that advertisers
appeal to consumers. LO4 Identify the various types of media. LO5 Identify agencies that regulate advertising. LO6 Describe the elements of a public relations
toolkit. LO7 Identify the various types of sales promotions.
18-3
Victorinox
Co
urt
esy
Sw
iss
Arm
y V
icto
rin
ox
18-5
Set Advertising Objectives
Push strategy Pull strategy
©Brand X Pictures/PunchStock
©Comstock/PunchStock
18-6
Advertising Objectives
Inform
Persuade
Remind
18-7
Advertising Objectives
Designing an ad for a delicate topic for parents and kids
Courtesy The Procter & Gamble Company
18-8
Iams Pet
How does this ad inform, persuade, and remind?
©Procter & Gamble.
18-9
Informative Advertising
• Communicates to create and build brand awareness
• Retailers aim to push the consumer through the buying cycle to final purchase
• Often used to inform customers about upcoming sales events or arrival of new merchandise
©TJX Companies, Inc.
18-10
Persuasive Advertising
• Generally occurs in the growth and early maturity stages of the Product Life Cycle when competition is most intense
• May be used to reposition an established brand in the later stage of the Product Life Cycle
©The Procter & Gamble Company Used by permission
18-11
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
18-12
Using Brand History
18-13
Product-focused advertisements
Institutional advertisements
Focus of Advertisements
©20
00
Im
age
10
0 L
td
18-14
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
18-15
The AdCouncil
Courtesy The Advertising Council, Inc Courtesy The Advertising Council, Inc
18-16
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 ads
TRUTH Campaign Commercial
Courtesy American Legacy Foundation
18-17
Determining Advertising Budget
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
18-18
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
18-19
Creative Advertisements
18-20
The Appeal
Emotional appeal
Informational appeal
©P
roct
er
& G
amb
le
©P
roct
er
& G
amb
le
18-21
Symbols Help to Convey Messages
Courtesy Con Agra Foods, Inc.
18-22
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
18-23
Mass and Niche Media
Mass media reach
large anonymous
audience
Niche media reach a
smaller more targeted audience
©Digital Vision/PunchStock
©Digital Vision/PunchStock
18-24
Choosing the Right Medium
18-25
Viral Marketing Campaign
Courtesy Office Max
18-26
Determine the Advertising Schedule
Continuous
Pulsing
Flighting
©Procter & Gamble
18-27
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
18-28
What appeal is being used in this advertisement?
Is this ad effective in delivering the selling message?
18-29
Assess Impact Using Marketing Metrics
Pretesting
Tracking
Protesting
18-30
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?
Check Yourself
18-31
Regulatory and Ethical Issues in Advertising
18-32
FDA Rules on Prescription Side Effects
18-33
Puffery
©B
ill A
ron
/Ph
oto
Ed
it
18-35
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
18-36
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.
18-37
Types of Sales Promotion
18-38
Sales Promotion
What form of sales promotion is represented in this ad?
Do you feel it is an effective promotion?
Courtesy Nestlé SA
Courtesy Nestlé S.A.
18-39
Using Sales Promotion Tools
Cross-promoting
Th
e M
cGra
w-H
ill C
om
pan
ies,
In
c/
Joh
n F
lou
rno
y, p
ho
tog
rap
he
r
The McGraw-Hill Companies, Inc/ Ken Karp, photographer
18-40
Cross Promotion
Courtesy PetSmart, Inc
18-41
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
18-42
1. What are various forms of sales promotions?
2. What factors should a firm consider when evaluating a sales promotion?
Check Yourself
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