Advertising, Sales
Promotion, and Public
Relations
Chapter Objectives
• Tell what advertising is and describe the major types of
advertising
• Describe the process of developing an advertising
campaign
• Explain how marketers evaluate advertising
• Explain what sales promotion is and describe the
different types of trade and consumer sales promotion
activities
• Explain the role of public relations
• Describe the steps in developing a public relations
campaign
2
Real People, Real Choices
• BzzAgent, Inc. (Joe Chernov)
• Negative articles questioned “disclosure”
in word-of-mouth marketing campaigns
• What public relations strategy to use to
respond to the criticism?
 Option 1: take charge of the discussion.
 Option 2: defend without being defensive.
 Option 3: go quiet.
BZZAGENT.COM
3
Advertising: The Image of Marketing
• Advertising: nonpersonal
communication paid for
by an identified sponsor
using mass media to
persuade or inform an
audience
EXTREME MAKEOVER:
HOME EDITION
4
Discussion
• Some people say
advertising is obnoxious,
insults their intelligence,
and promotes claims that
are untrue.
• Others argue it provides
value for consumers.
--What are some arguments on each
side?
--How do you feel about advertising?
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Types of Advertising
• Product advertising:
focuses on a specific
good/service
6
Types of Advertising (cont’d)
• Institutional advertising: promotes the
activities, personality, or point of view of an
organization or company
Advocacy advertising
Public service announcement (PSA)
ROCK THE VOTE
7
Types of Advertising (cont’d)
• Retail and local advertising: encourages
customers to shop at a specific store or
use a local service
• Do-it-yourself advertising
 “Generation C” phenomenon: consumer-generated ad
content on the Web
WWW.PRICELESS.COM
8
Discussion
• Chevy found that DIY advertising
programs can sometimes backfire when
consumers created anti-SUV TV
commercials.
 --Should companies avoid DIY campaigns?
 --What are the benefits of DIY advertising?
9
Who Creates Advertising?
• Advertising campaign: a coordinated,
comprehensive plan that carries out promotion
objectives and results in a series of ads placed
in media over a period of time
LEO BURNETT WORLDWIDE
10
Who Creates Advertising? (cont’d)
• Limited-service agency
• Full-service agency
 Account management
 Creative services
 Research and marketing services
 Media planning
Motorola Video
11
Figure 13.1: Steps in Developing an
Advertising Campaign
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Steps in Developing an
Advertising Campaign
• Step 1: Identify the target audiences
• Step 2: Establish message and budget
objectives
• Step 3: Design the Ads
 Creative strategy: process that turns a concept into an
advertisement
13
Advertising Appeal:
Central Idea of the Ad
Reasons why: the
Unique Selling
Proposition (USP)
Comparative advertising
Demonstration
Slice of life
Lifestyle
14
Advertising Appeal:
Central Idea of the Ad (cont’d)
Testimonial
Fear appeals
Sex appeals
Humorous appeals
Slogans and jingles
15
Group Activity
• As an account team for an advertising agency,
your group has been assigned a new line of
high- quality, high-priced makeup.
• Consider different types of appeals:




USP
Fear appeal
Slice-of-life ad
Humor
Comparative advertising
Celebrity endorsement
Sex appeal
• Outline the strengths and weaknesses of each of
these appeals for advertising the makeup.
16
Step 4: Pretest What the Ads
Will Say
• Pretesting: seeks to minimize mistakes by
getting consumer reactions to ad messages
before they appear in the media
• Copy testing: measures effectiveness of ads
17
Step 5: Choose the Media Type(s) and
Media Schedule
• Media planning: develops media
objectives, strategies and tactics
• Aperture: is the best place and time to
reach the target market
18
Where to Say It: Traditional Media
•
•
•
•
•
•
•
Television
Radio
Newspapers
Magazines
Directories
Out-of-home media
Place-based media
19
Discussion
• When Internet travel company Hotels.nl
began using blankets on sheep for
advertising, one town fined the company for
ignoring a ban on advertising along the
highways.
 --What are the positive and negative aspects for
companies of using sheep, or even horses and cows,
to advertise products? For consumers?
20
Where to Say It: Internet advertising
•
•
•
•
•
Banners
Buttons
Search engine and directory listings
Pop-up ads
Email
 Spamming
 Permission marketing
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Discussion
• Through TV remotes, DVDs, computers,
and cable television, technology gives
today’s consumers control over the
advertising images they see.
 --How has this affected
the advertising industry so far?
 --How do you think consumer
control will affect advertising
in the future?
22
Media Scheduling: When To Say It
• Media schedule: specifies exact media to use
and when to use it
• Advertising exposure: defines degree to which
the target market will see an advertising
message in specific vehicles
• Impressions: measures
number of people exposed
to a message in one or
more vehicles
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Figure 13.3: Media Schedule
for a Video Game
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Media Scheduling: When To Say It
(cont’d)
• Reach: measures
percentage of target
market exposed to media
vehicle
• Frequency: measures
average number of times
a person in the target
group will be exposed to
the message
25
Media Scheduling: When To Say It
(cont’d)
• Gross rating points (GRPs) = reach X
frequency
• Cost per thousand (CPM): the cost to
deliver a message to 1,000 people
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Media Scheduling: How Often To Say It
• Continuous schedule: puts out steady
stream of advertising
• Pulsing schedule: varies the amount of
advertising
• Flighting schedule: puts ads out in short,
intense bursts
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Step 6: Evaluate the Advertising
• Posttesting: research on consumers’
responses to advertising they have seen
or heard
• Unaided recall
• Aided recall
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Sales Promotion
• Programs designed to build interest in or
encourage purchase of a product during a
specified period of time
 Deliver short-term sales results
 Can target end consumers, channel partners, and/or
employees
29
Sales Promotion Directed
Toward the Trade: Trade Promotions
• Discounts and deals
 Merchandising allowances
 Case allowances
• Increasing industry visibility
 Trade shows
 Promotional products
 Incentive programs (push money)
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Sales Promotion Directed
Toward Consumers
• Price-Based Consumer Sales Promotion
 Coupons
 Price deals, refunds, and rebates
 Frequency (loyalty/continuity) programs
 Special/bonus packs
SMARTSOURCE.COM
31
Discussion
• Companies sometimes teach consumers a
“bad lesson” by overusing sales
promotion.
• As a result, consumers expect the product
always to be “on sale.”
 --What are some products for which this bad lesson
has occurred?
 --How can companies prevent it?
32
Sales Promotion Directed
Toward Consumers (cont’d)
• Attention-getting consumer promotion
 Contests and sweepstakes
 Premiums
 Sampling
 Point-of-purchase promotion
 Product/brand placements
 Cross-promotion
FREESAMPLES.COM
33
Group Project
• Your group works for a firm producing
several brands of household cleaning
products.
 --Develop recommendations for trade and consumer
sales promotion activities for a new laundry detergent
 --In a role-playing situation, present and defend your
recommendations to your boss.
34
Public Relations
• PR: communication function that seeks to
build good relationships with an
organization’s publics.
• Publics include consumers, stockholders,
legislators, and other firm stakeholders.
• Basic rule of good PR: do something
good, then talk about it.
35
Public Relations (cont’d)
• Proactive PR activities stem from firm’s
marketing objectives.
• Publicity: unpaid communication about an
organization that gets media exposure.
• PR is even more important when firm’s
image is at risk due to negative publicity.
• PR is responsible for preparing a crisis
management plan.
36
Discussion
• Some critics denounce PR specialists,
calling them “flacks” or “spin doctors”
whose job is to hide the truth about a
company’s problems
 What is the proper role of PR within an organization?
 Should PR specialists try to put a good face on bad
news?
37
Objectives of Public Relations
•
•
•
•
•
Introducing new products to manufacturers
Introducing new products to consumers
Influencing government legislation
Enhancing image of a firm
Enhancing image of a city, region, or
country
• Calling attention to a firm’s involvement
with the community
38
Planning a Public Relations Campaign
• A statement of objectives
• Situation analysis
• Specification of publics, communicated
messages, and specific program elements
• Timetable and budget
• Discussion of program evaluation plan
39
Public Relations Activities
• Press releases (timely topics, research
project stories, and consumer information
releases)
• Internal PR
• Investor relations
• Lobbying
• Speech writing
• Corporate identity
40
Public Relations Activities (cont’d)
•
•
•
•
Media relations
Sponsorships
Special events
Buzz-building: word-ofmouth/blogging
• Advice and counsel
41
Group Activity
• As PR professionals
employed by your
university, your group must
develop strategies for
improving your school’s PR
program.
--Write a memo to your university
president with your
recommendations.
42
Real People, Real Choices
• BzzAgent, Inc. (Joe Chernov)
• Joe chose option 1: take charge of the
discussion.
 BzzAgent issued a press release announcing it had
enhanced its disclosure policy, becoming the first
company to enforce compliance with disclosure
policies.
43
Marketing Plan Exercise
• Think about one of the following:
 A new brand of toothpaste
 Your local city or state
 Your university
• Outline an advertising campaign for the product
and discuss the following:
 The type of appeal
 The main message
 The media (include at least one print and one broadcast
medium)
 How you’ll develop the ads to share the same look and feel
44
Marketing in Action Case:
You Make the Call
• What is the decision facing Amazon?
• What factors are important in
understanding this decision situation?
• What are the alternatives?
• What decision(s) do you recommend?
• What are some ways to implement your
recommendation?
45
Keeping It Real: Fast-Forward to Next
Class, Decision Time at IBM
• Meet Esther Ferre, a General Manager at
IBM.
• IBM sales teams are responsible for IBM
relationships with clients and are
evaluated on maximizing revenue and
profits.
• The decision: How to allocate resources
across a broad customer base?
46