Chapter 13 Ver 2e1 ©2000 South-Western College Publishing Advertising, Sales Promotion and Public Relations.

Chapter 13 Ver 2e 1©2000 South-Western College Publishing

Advertising, Sales PromotionAdvertising, Sales Promotionand Public Relationsand Public Relations

Chapter 13 Ver 2e 2

Chapter 13 ObjectivesChapter 13 Objectives

©2000 South-Western College Publishing

1.1. Discuss the effect advertising has on market Discuss the effect advertising has on market share, consumers, brand loyalty, and share, consumers, brand loyalty, and perception of product attributes.perception of product attributes.

2.2. Identify the major types of advertising.Identify the major types of advertising.

3.3. Describe the advertising campaign process.Describe the advertising campaign process.

4.4. Describe media evaluation and selection Describe media evaluation and selection techniques.techniques.

(continued)(continued)

1.1. Discuss the effect advertising has on market Discuss the effect advertising has on market share, consumers, brand loyalty, and share, consumers, brand loyalty, and perception of product attributes.perception of product attributes.

2.2. Identify the major types of advertising.Identify the major types of advertising.

3.3. Describe the advertising campaign process.Describe the advertising campaign process.

4.4. Describe media evaluation and selection Describe media evaluation and selection techniques.techniques.

(continued)(continued)

Chapter 13 Ver 2e 3

Chapter 13 ObjectivesChapter 13 Objectives


5.5. Define and state the objectives of sales Define and state the objectives of sales promotion.promotion.

6.6. Discuss the most common forms of Discuss the most common forms of consumer sales promotion.consumer sales promotion.

7.7. List the most common forms of trade List the most common forms of trade sales promotion.sales promotion.

8.8. Discuss the role of public relations Discuss the role of public relations in the promotional mix.in the promotional mix.

5.5. Define and state the objectives of sales Define and state the objectives of sales promotion.promotion.

6.6. Discuss the most common forms of Discuss the most common forms of consumer sales promotion.consumer sales promotion.

7.7. List the most common forms of trade List the most common forms of trade sales promotion.sales promotion.

8.8. Discuss the role of public relations Discuss the role of public relations in the promotional mix.in the promotional mix.


Effects of AdvertisingEffects of Advertising

Advertising and the

Consumer

• Average U.S. citizen is exposed to hundreds of ads each day.

• Advertising may change a person’s negative attitude.

Advertising and

Brand Loyalty

• Consumers with high brand loyalty are least susceptible to competitive ads.

• Ads reinforce positive attitudes.

Advertising and

Product Attributes

• Advertising can affect a consumer’s rank of brand attributes.

Advertising and

Market Share

• New brands spend proportionately more for advertising than old ones.

• Beyond a certain level, diminishing returns set in.

Chapter 13 Ver 2e 5

Major Types of AdvertisingMajor Types of Advertising


The PublicThe Public

CustomersCustomers

TypesTypesofof

AdvertisingAdvertising

TypesTypesofof

AdvertisingAdvertisingPioneeringPioneering

CompetitiveCompetitive

ComparativeComparative

ProductAdvertising

ProductAdvertising

InstitutionalAdvertising

InstitutionalAdvertising

Investment CommunityInvestment Community

EmployeesEmployees

Chapter 13 Ver 2e 6

Product AdvertisingProduct Advertising


PioneeringPioneeringPioneeringPioneering• Stimulates primary demand for

new product or category

CompetitiveCompetitiveCompetitiveCompetitive• Influence demand for brand in the

growth phase of the PLC. • Often uses emotional appeal.

ComparativeComparativeComparativeComparative• Compares two or more competing

brands’ product attributes. • Used if growth is sluggish, or if

competition is strong.


Steps in Creating an Advertising CampaignSteps in Creating an Advertising Campaign

Determine the campaign objectives.

Make creative decisions. Make media decisions.

Evaluate the campaign.

Chapter 13 Ver 2e 8

Make Creative DecisionsMake Creative Decisions

“Sell the Sizzle, not the Steak”

Sell product’s benefits, not features

A benefit should answer “What’s in it for me?”

Ask “So?” to determine if a benefit

IdentifyProduct Benefits

IdentifyProduct Benefits


Chapter 13 Ver 2e 9

Common Advertising AppealsCommon Advertising Appeals


Profit Profit

HealthHealth

Love or romanceLove or romance

FearFear

AdmirationAdmiration

ConvenienceConvenience

Fun and pleasureFun and pleasure

Vanity and egotism Vanity and egotism

Environmental ConsciousnessEnvironmental Consciousness

Product saves, makes, or protects money Product saves, makes, or protects money

Appeals to body-conscious or health seekersAppeals to body-conscious or health seekers

Used in selling cosmetics and perfumesUsed in selling cosmetics and perfumes

Social embarrassment, old age, losing health Social embarrassment, old age, losing health

Reason for use of celebrity spokespeopleReason for use of celebrity spokespeople

Used for fast foods and microwave foodsUsed for fast foods and microwave foods

Key to advertising vacations, beer, parksKey to advertising vacations, beer, parks

Used for expensive or conspicuous items Used for expensive or conspicuous items

Centers around environmental protectionCenters around environmental protection


Execute the MessageExecute the Message

Mood or Image

Mood or Image

MusicalMusical

Demon-stration

Demon-stration

ScientificScientific

Real/AnimatedProductSymbols

Real/AnimatedProductSymbols

FantasyFantasy

LifestyleLifestyleSlice-of-LifeSlice-of-Life

HumorousHumorous

CommonCommonExecutionalExecutional

StylesStyles

CommonCommonExecutionalExecutional

StylesStyles

Spokes-person/

Testimonial

Chapter 13 Ver 2e 11

NewspapersNewspapers

MagazinesMagazines

RadioRadio

TelevisionTelevision

OutdoorOutdoor

InternetInternet

Alternative MediaAlternative Media

Major Types Major Types ofof

AdvertisingAdvertisingMediaMedia

Major Types Major Types ofof

AdvertisingAdvertisingMediaMedia


Make Media DecisionsMake Media Decisions


National Ad Spending for Media--1997National Ad Spending for Media--1997


Magazines

Newspapers

OutdoorTelevision

Radio

Yellow Pages Internet


NewspapersNewspapers

AdvantagesAdvantagesAdvantagesAdvantages DisadvantagesDisadvantagesDisadvantagesDisadvantages

Year-round readership

Geographic selectivity

Immediacy

High individual market coverage

Short lead time

Limited demographic selectivity

Little color

May be expensive

Low pass-along rate

Clutter

Mass market medium


MagazinesMagazines


Good reproduction

Demographic selectivity

Regional/local selectivity

Long advertising life

High pass-along rate

Higher cost per contact

Long-term advertiser commitments

Slow audience build-up

Limited demonstration capabilities

Lack of urgency

Long lead time


RadioRadio


Selectivity and audience segmentation

Immediate and portable

Geographic flexibility

Entertainment carryover

Short-term ad commitments

No visual treatment

Short advertising life

High frequency to generate retention

Commercial clutter

Background distractions


TelevisionTelevision


Wide diverse audience

Low cost per thousand

Creative and demonstrative

Immediacy of messages

Entertainment carryover

Demographic selectivity with cable stations

Short life of message

Expensive with high campaign cost

Little demographic selectivity with network

Long-term advertiser commitments

Long lead times

Clutter


Outdoor MediaOutdoor Media


High exposure frequency

Moderate cost

Flexibility

Geographic selectivity

Broad, diverse market

Short message

Lack of demographic selectivity

High “noise” level


Internet and World Wide WebInternet and World Wide Web


Fast growing

Ability to reach narrow target audience

Short lead time

Moderate cost

Difficult to measure ad effectiveness and ROI

Ad exposure relies on “click through”

Not all consumers have access to internet


Alternative MediaAlternative Media

Ads in Movies and Videos

Ads in Movies and Videos

Interactive KiosksInteractive Kiosks

Computer Screen Savers

Computer Screen Savers

Video Shopping CartsVideo Shopping Carts

Fax MachinesFax Machines

Examples ofExamples ofAlternative MediaAlternative Media

Examples ofExamples ofAlternative MediaAlternative Media


Media Selection ConsiderationsMedia Selection Considerations


Cost per ContactCost per Contact

FactorsInfluencingMedia Mix Decisions

FactorsInfluencingMedia Mix Decisions

ReachReach

FrequencyFrequency

Audience SelectivityAudience Selectivity


Types of Types of Media SchedulesMedia Schedules

Types of Types of Media SchedulesMedia Schedules

Continuous Media ScheduleContinuous Media Schedule

Flighted Media ScheduleFlighted Media Schedule

Pulsing Media SchedulePulsing Media Schedule

Seasonal Media ScheduleSeasonal Media Schedule


Media SchedulingMedia Scheduling


Sales PromotionSales Promotion

ConsumerSales Promotion

ConsumerSales Promotion

Trade Sales Promotion

Trade Sales Promotion

Sales PromotionSales PromotionTargetsTargets

Sales PromotionSales PromotionTargetsTargets



Immediate PurchasesImmediate Purchases

Increase TrialIncrease Trial

Boost consumer inventoryBoost consumer inventory

Encourage repurchaseEncourage repurchase

Increase ad effectivenessIncrease ad effectiveness

Encourage brand switchingEncourage brand switching

Objectives Objectives ofof


Objectives Objectives ofof


Encourage brand loyaltyEncourage brand loyalty



Coupons and RebatesCoupons and Rebates

PremiumsPremiums

Loyalty Marketing ProgramsLoyalty Marketing Programs

Contests & SweepstakesContests & Sweepstakes

SamplingSampling

Point-of-Purchase PromotionPoint-of-Purchase Promotion

Popular ToolsPopular Toolsforfor

Consumer SalesConsumer SalesPromotionPromotion

Popular ToolsPopular Toolsforfor

Consumer SalesConsumer SalesPromotionPromotion

Tools for Consumer Sales PromotionTools for Consumer Sales Promotion



Consumers & Sales Promotion GoalsConsumers & Sales Promotion Goals


Type of Buyer Type of Buyer Type of Buyer Type of Buyer

Loyal CustomersLoyal Customers

Competitor’sCustomersCompetitor’sCustomers

Brand SwitchersBrand Switchers

Price BuyersPrice Buyers

Desired Results Desired Results Desired Results Desired Results

•Reinforce behavior• Increase consumption•Change timing

•Reinforce behavior• Increase consumption•Change timing

•Break loyalty•Persuade to switch•Break loyalty•Persuade to switch

•Persuade to buy your brand more often•Persuade to buy your brand more often

•Appeal with low prices•Supply added value

•Appeal with low prices•Supply added value

Sales PromotionSales PromotionExamples Examples

Sales PromotionSales PromotionExamples Examples

•Loyalty marketing•Bonus packs•Loyalty marketing•Bonus packs

•Sampling•Sweepstakes, contests, premiums

•Sampling•Sweepstakes, contests, premiums

•Price-lowering promotion•Trade deals

•Price-lowering promotion•Trade deals

•Coupons, price-offpackages, refunds•Trade deals

•Coupons, price-offpackages, refunds•Trade deals


Trade AllowancesTrade Allowances

Push MoneyPush Money

TrainingTraining

Free MerchandiseFree Merchandise

Store DemonstrationStore Demonstration

Conventions & Trade ShowsConventions & Trade Shows

Unique ToolsUnique Toolsforfor

Trade SalesTrade SalesPromotionPromotion

Unique ToolsUnique Toolsforfor

Trade SalesTrade SalesPromotionPromotion

Tools for Trade Sales PromotionTools for Trade Sales Promotion



Functions of Public RelationsFunctions of Public Relations


Press Relations Press Relations Press Relations Press Relations

Product PublicityProduct PublicityProduct PublicityProduct Publicity

Corporate CommunicationCorporate CommunicationCorporate CommunicationCorporate Communication

Public AffairsPublic AffairsPublic AffairsPublic Affairs

LobbyingLobbyingLobbyingLobbying

Employee and Investor RelationsEmployee and Investor RelationsEmployee and Investor RelationsEmployee and Investor Relations

Crisis ManagementCrisis ManagementCrisis ManagementCrisis Management


Major Public Relations ToolsMajor Public Relations Tools

ToolsUsed By

PRProfessionals

ToolsUsed By

PRProfessionals

Product PlacementProduct Placement

Customer SatisfactionPhone Lines

Customer SatisfactionPhone Lines

Consumer EducationConsumer Education

Event SponsorshipEvent Sponsorship

Issue SponsorshipIssue Sponsorship

Internet Web SitesInternet Web Sites

New Product PublicityNew Product Publicity

Chapter 13 Ver 2e1 ©2000 South-Western College Publishing Advertising, Sales Promotion and Public Relations.

Documents

product attributes advertising

effect advertising

ver 2e6 product advertising

advertising vacations

advertising campaign

ver 2e2 chapter

ver 2e3 chapter

product benefits