Chapter 13 Advertising, Sales Promotion, and Public Relations.

Chapter 13

Advertising, Sales Promotion, and Public Relations

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall13-2

Chapter Objectives

Understand advertising, the major types of advertising, and the criticisms of advertising

Describe the process of developing an advertising campaign and how marketers evaluate advertising

Explain sales promotion, and describe the different types of trade and consumer sales promotions activities

Explain the role of public relations (PR) and the steps in developing a PR campaign


Real People, Real Choices: Decision Time at BzzAgent

How should the firm respond to the negative articles which questioned “disclosure” in word-of-mouth marketing campaigns?– Option 1: Take charge of the discussion– Option 2: Defend without being defensive– Option 3: Go quiet


Advertising: The Image of Marketing

Marketers spent $285 billion on advertising in the U.S. in 2006

Marketers are increasingly diverting more money into alternative media– Product and brand placements are growing

Advertising:– Nonpersonal communication an identified

sponsor pays for that uses mass media to persuade or inform an audience


Types of Advertising

Product advertising: Focuses on a specific good or service

Institutional advertising: Promotes the activities, personality, or point of view of an organization or company– Public service announcements (PSA) – Advocacy advertising


Types of Advertising

Retail and local advertising: Encourages customers to shop at a specific store or use a local service– Ad copy discusses store hours, locations,

sales, and featured products

Do-it-yourself advertising– “Generation C” phenomenon: consumer-

generated ad content on the Web


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– Limited-service agency – Full-service agency

• Account management• Creative services• Research and marketing services• Media planning


Ethical Issues in Advertising

Ethical criticisms of advertising:– Advertising is manipulative– Advertising is deceptive and untruthful– Advertising is offensive and in bad taste– Advertising creates and perpetuates

stereotypes– Advertising causes people to buy things

that they don’t really need


Steps in Developing an Advertising Campaign

Step 1: Identify the target audiences Step 2: Establish message and budget

objectives Step 3: Create the ads

– Creative strategy: The process that turns a concept into an advertisement

– Advertising appeal: The central idea of the ad


Types of Advertising Appeals

Reasons why—the unique selling proposition (USP)

Comparative advertising

Demonstration Testimonial

Slice of life Lifestyle Fear appeals Sex appeals Humorous appeals Slogans, jingles,

and music



Step 4: Pretest what the ads will say– Pretesting:

Research method that seeks to minimize mistakes by getting consumer reactions to ad messages before they appear in the media



Step 5: Choose the media type(s) and media schedule– Media planning:

The process of developing media objectives, strategies, and tactics

– Aperture:The best place and time to reach the target market


Where To Say It: Traditional Media

Television Radio Newspapers Magazines Directories


Where To Say It: Internet Advertising

Banners Buttons Pop-up ads Search engine and directory listings E-mail

– Spamming– Permission marketing


Where To Say It: Indirect Forms of Advertising

Directories Out-of-home media Place-based media Branded entertainment Advergaming


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 ad message in specific vehicles

Impressions: – Measures number of people exposed to a

message in one or more vehicles


Media Scheduling: When To Say It

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

Gross rating points (GRPs) – Reach multiplied by frequency

Cost per thousand (CPM): – The cost to deliver a message to 1,000 people


Media Scheduling: How Often To Say It

Typical advertising patterns:– Continuous schedule:

Steady stream of advertising throughout year– Pulsing schedule:

Varies the amount of advertising based on when the product is likely to be demanded

– Flighting schedule: Advertising in short, intense bursts, alternated with periods in which no advertising is done



Step 6: Evaluate the advertising– Posttesting:

Research on consumers’ responses to advertising they have seen or heard• Unaided recall

• Aided recall

• Attitudinal measures


Sales Promotion

Sales promotions: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


Sales Promotion DirectedToward the Trade

Allowances, discounts, and deals– Merchandising allowances– Case allowances

Co-op advertising Increasing industry visibility

– Trade shows– Promotional products– Point-of-purchase (POP)– Incentive programs


Sales Promotion DirectedToward Consumers

Price-based consumer sales promotion– Coupons – Price deals, refunds, and rebates– Frequency (loyalty/continuity) programs – Special/bonus packs


Sales Promotion DirectedToward Consumers

Attention-getting consumer promotions– Contests and sweepstakes

• Contests are based on skill• Sweepstakes are based on chance

– Premiums– Sampling

• The premiere technique for generating new product trial


Public Relations

Public relations: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”


Public Relations

Proactive PR activities stem from a firm’s marketing objectives– Publicity

Unpaid communication about an organization that gets media exposure

PR is critical when a firm’s image is at risk due to negative publicity– PR staff is responsible for preparing

a crisis management plan


Objectives of Public Relations

Typical objectives include:– Introducing new products to manufacturers– Introducing new products to consumers– Influencing government legislation– Enhancing the image of a firm– Enhancing image of a city, region, or country– Calling attention to a firm’s involvement with

the community


Planning a PR Campaign

Multistep process includes:– Situation analysis– A statement of objectives– Specification of publics, communicated

messages, and specific program elements – Timetable and budget– Discussion of program evaluation plan


Public Relations Activities

Press releases (various forms)

Internal PR Investor relations Lobbying Speech writing

Corporate identity

Media relations Sponsorships Special events Advice and

counsel


Real People, Real Choices: Decision Made at BzzAgent

Joe chose option 1– Implementation: BzzAgent took charge of the

discussion, refined their disclosure policy, enforced compliance, researched the relationship between disclosure and campaign performance, and issued press releases about revised policy

– Measuring success: The disclosure debate did not interfere with the company’s financing or client relationships


Keeping It Real: Fast-Forward to Next Class Decision Time at Woodtronics

Meet Jeffrey Brechman, a principal of the Woodtronics firm

Woodtronics designs and builds trading room furniture, command centers, and network control centers

The decision to be made: Should Jeffrey sell the new or original product to the Jersey City client?


Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice HallPublishing as Prentice Hall

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic,

mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

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Chapter 13 Advertising, Sales Promotion, and Public Relations.

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