Chapter 16 by lanyuehua

VIEWS: 2 PAGES: 45

									Advertising, Sales
  Promotion, and
 Public Relations

       Chapter 16
        Objectives

Understand the roles of
advertising, sales promotion,
and public relations in the
promotion mix.
Know the major decisions
involved in developing an
advertising program.
                                16- 1
        Objectives

Learn how sales promotion
campaigns are developed and
implemented.
Learn how companies use public
relations to communicate with
their publics.



                                 16- 2
                AFLAC
                  c


A few years ago,      1999: AFLAC
only 13% of U.S.      developed the “duck”
recognized AFLAC      campaign to enhance
Old ads: “warm        brand awareness
and fuzzy” similar    Incredibly successful:
to other insurance    name recognition is
ads                   now 91%; sales
Goal: break           growth of 30% each
through               year campaign has
advertising clutter   run
                                        16- 3
          Definition

Advertising
 Any paid form of
  nonpersonal
  presentation and
  promotion of ideas,
  goods, or services
  by an identified
  sponsor.

                        16- 4
       Advertising

Signage in ancient times offers
evidence of early advertising.
Modern ad spending
tops $231 billion
in U.S. annually,
$500 billion
worldwide.
                                  16- 5
Advertising

    Business firms,
    not-for-profit firms,
    social agencies,
    and professionals
    such as doctors
    and lawyers all
    advertise.

                            16- 6
      Figure 16-1:
        Major
Advertising Decisions




                        16- 7
           Advertising
                     Advertising objectives
Key Decisions:       can be classified by
                     primary purpose:
Setting objectives    Inform
                          Introducing new
Setting the budget         products
Developing the        Persuade
advertising               Becomes more
                           important as
strategy                   competition increases
Evaluating                Comparative ads

advertising           Remind
                          Most important for
campaigns                  mature products
                                            16- 8
Comparative
advertising
can be
extremely
persuasive




              16- 9
Do these ads attempt
to inform, persuade,
     or remind?




 How effective are
   these ads?
                 16- 10
           Advertising
                     Methods of budget
Key Decisions:       setting were listed in
                     chapter 15
Setting objectives   Several factors should
Setting the budget   be considered when
                     setting the ad budget:
Developing the          Stage in the PLC
advertising             Market share
strategy                Level of competition
Evaluating              Ad clutter
                        Degree of brand
advertising              differentiation
campaigns
                                                16- 11
           Advertising
                     Creative challenges
Key Decisions:        Media fragmentation
                      Soaring media costs
Setting objectives    Advertising clutter
Setting the budget   Creating ad messages
                      Message strategy
Developing the           Creative concept
advertising              Advertising appeal
strategy              Message execution
                         Many execution styles
Evaluating
                         Tone, format,
advertising               illustration, headline,
campaigns                 copy

                                             16- 12
        Advertising
  Creative Execution Styles

Slice of Life          Musical
Lifestyle              Personality
                       Symbol
Fantasy
                       Technical
Mood or Image          Expertise
Testimonial Evidence   Scientific
or Endorsement         Evidence
                                16- 13
Discussion Question

        When does advertising
        pass the boundaries of
        good taste? Can you think
        of some examples?

        Should marketers be
        concerned about the
        opinions of anyone other
        than the target market?
        Why or why not?

                                   16- 14
                       Celebrity endorsers
                       may be movie stars,
                       politicians, sports
                       stars, or other public
                       personalities



Testimonials feature
ordinary people who
talk about their
product experiences

                                         16- 15
           Advertising
                     Select advertising media
Key Decisions:        Decide on level of reach,
                       frequency and impact
Setting objectives    Choose among the major
                       media types by
Setting the budget     considering:
Developing the            Consumer media
                           habits, nature of the
advertising                product, types of
strategy                   messages, and costs
                      Select specific media
Evaluating             vehicles
advertising           Decide on media timing
campaigns
                                            16- 16
TIVO is one example of how technology
presents challenges to media planners.
With TIVO, consumers can easily zap ads.




                                      TIVO

                                           16- 17
Media planners
for Absolut
vodka work
with creatives
to design ads
targeted to
specific
audiences.
The ad at left
appears in
theater playbills.


              16- 18
     Advertising

   Major Media Types

Newspapers         Radio
Television         Magazines
Direct Mail        Outdoor
        Internet

                               16- 19
Marketers are increasingly using alternate
forms of media to reach their target markets.
What other examples can you think of
besides those shown below?




                                          16- 20
Discussion Question

        Reddi Wip is one product
        whose media strategy
        includes heavy ad
        expenditures prior to
        Thanksgiving.
        What types of products
        would benefit from a
        media flighting strategy?


                                    16- 21
           Advertising
                     Measuring
Key Decisions:       communications effects
                        Copy testing
Setting objectives      Consumer recall
Setting the budget      Product awareness
                        Product knowledge
Developing the          Product preference
advertising          Measuring sales effect
strategy              Past vs. current sales
                       comparison
Evaluating
                      Experimentation
advertising
campaigns
                                              16- 22
         Advertising

Organizing the Advertising Function
 Small vs. large companies
 Nature of advertising agencies
   Advantages of advertising agencies
   Departments
   Compensation
   Changes in agency services



                                         16- 23
Advertising

     Advertising to
     International Markets
       Advantages of
        standardizing
        worldwide advertising:
            Lower advertising
             costs
            Greater global ad
             coordination
            Consistent global
             image

                                 16- 24
            Advertising

Advertising to
International Markets
 Drawbacks to
  standardizing
  worldwide advertising:
    Ignores differences in
     demographics and
     economic conditions
    Ignores differences in
     culture

                              16- 25
U.S., Thai, & German
 websites reflect the
      worldwide Jeep
      brand image of
         ruggedness
        and reliability




                   16- 26
        Advertising

Advertising to International Markets
 Most
  marketers
  think
  globally
  but act
  locally


                                  16- 27
         Definition

Sales Promotion
 Sales Promotions
  are short-term
  incentives to
  encourage the
  purchase or sale
  of a product or
  service.

                      16- 28
    Sales Promotion

Sales Promotions
 Can be targeted at final buyers,
  retailers and wholesalers,
  business customers, and
  members of the sales force.
 The use of sales promotions has
  been growing rapidly.
                                     16- 29
Sales Promotion

       Objectives –
       Consumer
       Promotions:
        Increase short-
         term sales
        Generate product
         trial

                       16- 30
      Sales Promotion
 Consumer Promotion Tools

Samples             Premiums
Cash Refunds        Patronage
(Rebates)           Rewards
Price packs         Point-of-Purchase
(cents-off deals)   Communications
Advertising         Contests, Games,
Specialties         and Sweepstakes

                                   16- 31
Checkout direct
offers marketers
an excellent
opportunity to
reach users of
the competition

Coupons are
only issued to
those who
purchase
specific brands

             16- 32
    Sales Promotion

Objectives – Trade Promotions:
                  Obtaining
                   distribution and
                   shelf space
                  Encouraging
                   retailers to
                   advertise the
                   brand
                                 16- 33
Sales Promotion

       Objectives –
       Sales Force
       Promotions:
         Signing up new
          accounts
         Stimulating
          sales of specific
          items
                          16- 34
      Sales Promotion

Trade Promotion Tools
 Discounts (also called price-offs,
  off-list, and off-invoice discounts)
 Allowances
   Advertising allowances
   Display allowances
 Free goods
 Push money
 Specialty advertising items
                                         16- 35
      Sales Promotion

Business Promotion Tools
 Includes many of
  the same tools
  used in trade
  and consumer
  promotions
 Two additional
  tools:
     Conventions
      & trade shows
     Sales contests
                           16- 36
       Sales Promotion

Key Decisions When Developing the
Sales Promotion Program:
 Size of the incentive
 Conditions for participation
 Promotion and distribution of the actual
  sales promotion program
 Length of the promotional program
 Evaluation
      Surveys and experiments can be used

                                             16- 37
          Definition

Public Relations:
 Building good relations with the
  company’s various publics by
  obtaining favorable publicity, building
  up a good corporate image, and
  handling or heading off unfavorable
  rumors, stories, and events.


                                        16- 38
   Public Relations
Public Relations Functions

Press           Lobbying
Relations       Investor
Product         Relations
Publicity
                Development
Public
Affairs

                              16- 39
       Public Relations

Role & Impact of Public Relations
 Advantages:
    Strong impact on public awareness
     at a lower cost than advertising
    Greater credibility than advertising

 Publicity is often underused
 Good public relations can be a powerful
  brand-building tool
                                            16- 40
      Public Relations
     Public Relations Tools

News                 Special Events
Speeches             Written Materials
Corporate Identity   Audiovisual
Materials            Materials
Mobile               Public Service
Marketing            Activities
                                   16- 41
  Special Events: Sponsorships
                  In-Depth
Public Relations Tie-in:         Sponsorship Trends:
 Sponsorships relate to          2001: $9.5 billion spent
  special events
                                 Reasons for Growth:
Types of Sponsorships:
                                  Avoids clutter
 Sports sponsorships
 Entertainment, tours, and       Cost efficient / effective
  attractions                     Gains constituencies’
 Festivals, fairs, and annual     approval
  events                          Enhances brand equity
 Cause-related marketing         Allows for lifestyle or
 Arts                             geographic targeting

                                                        16- 42
  Special Events: Sponsorships
                  In-Depth
Selecting Sponsorship            Selecting Sponsorship
Events -- Consider:              Events -- Consider:
 Is it consistent with brand     Is the event cluttered by
  image or will it benefit the     many other sponsors?
  brand image?                    Is the event
 Does it offer a strong           economically viable?
  probability of reaching the     Has the competition
  target audience?                 previously sponsored
 Does the event                   the event? Is there a risk
  complement existing              of confusing the target
  sponsorships and other           audience as to the
  IMC efforts?                     sponsor’s identity?

                                                         16- 43
Discussion Question

        If you were responsible
        for marketing an anti-
        aging cream to baby
        boomers, what events
        or causes would you
        choose to sponsor
        (local or national) and
        why?

                            16- 44

								
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