Introduction to Advertising, Sales Promotion and Public Relations

2

• Process and advantages of integrated marketing communications

• Five promotion tools and factors that must be considered in shaping overall promotion mix

• Major decisions involved in developing an advertising program

• How sales promotion campaigns are developed and implemented

• How companies use public relations to communicate with their publics

Overview

3

Marketing Communications (Promotion) Mix

• Advertising• Sales Promotion• Public Relations• Personal Selling• Direct Marketing

4

New Communications Realities• Mass markets have fragmented, leading to shift

away from mass marketing• Improvements in information technology are

speeding movement toward segmented marketing

• These factors have shifted the marketing communications model

• Less broadcasting• More narrow casting

5

Integrated Marketing Communications

• Using IMC, firms can carefully integrate and coordinate their communication channels to deliver clear, consistent, and compelling messages about themselves and their brands

• Factors influencing the choice of promotional tools include…

6

Advertising

• Can reach masses of geographically dispersed buyers

• Can repeat message many times• Impersonal, one-way communication• Can be very costly for some media types

7

Personal Selling

• Involves personal interaction between two or more people

• Most effective tool at building preferences, convictions and actions

• Allows relationship building• Most expensive promotion tool; requires long-

term commitment

8

Sales Promotion

• Wide assortment of tools• Attracts consumer attention• Offers strong incentives to buy• Invites and rewards quick consumer response• Effects are short-lived

9

Public Relations

• Very believable• Reaches people who avoid salespeople and ads• Can dramatize company or product• Tends to be used as an afterthought• Planned use can be effective and economical

10

Direct Marketing

• Many forms share four primary characteristics• Nonpublic• Immediate• Customized• Interactive

• Well suited to highly targeted marketing

11

Promotion Mix Strategies

• Push Strategy• Producer directs marketing activities toward channel

members to induce them to carry product and promote it to final consumers

• Pull Strategy• Producer directs marketing activities toward final

consumers to induce them to buy product

12

Major Advertising Decisions

• Setting advertising objectives• Setting the advertising budget• Developing advertising strategy• Evaluating advertising campaigns

13

Setting Advertising Objectives• Advertising Objective

• Specific communication task to be accomplished with a specific target audience during a specific period of time

• Classified by Purpose• Inform—to build primary demand• Persuade—to build selective demand• Compare—type of persuasive advertising• Remind—for mature products/brands

14

Setting the Advertising Budget• Affordable method• Percentage-of-sales method• Competitive-parity method• Objective-and-task method

15

Two Major Elements of Advertising Strategies• Creating advertising messages

• Message strategy and message execution must break through the clutter

• Message avoidance—zipping (VCR/DVR), zapping• Selecting advertising media

• Set reach, frequency, and impact goals• Choose among major media types• Select specific media vehicles• Decide on media timing

16

Message Strategy

• Identify customer benefits• Develop compelling creative concept—the “Big

Idea”• Advertising appeals should be meaningful,

believable, and distinctive

17

Message Execution

• Technical Expertise of Firm’s Personnel

• Scientific Evidence• Testimonial or

Endorsement

• Slice of Life• Lifestyle• Fantasy (dream)• Mood or Image• Musical• Personality Symbol

• e.g., Taco Bell dog

18

Message Execution

• Choose a tone• Use memorable, attention-getting words• Choose correct format elements

• Illustration• Headline• Copy

19

Setting Media Objectives

• Reach• Percentage of people exposed to ad

• Frequency• Number of times a person exposed to ad

• Media Impact• Qualitative value of message exposure through

given medium

20

Choosing Media Type

• Factors to consider when selecting media type• Medium’s impact• Message effectiveness• Cost

21

Choosing Media Vehicles

• Media vehicles• Specific media within each general media type

• Factors to consider• Cost per exposure• Audience quality• Audience attention• Editorial quality

22

Deciding on Media Timing

• Must decide how to schedule advertising over course of a year

• Follow seasonal pattern• Oppose seasonal pattern• Same coverage all year

• Choose the ad pattern• Continuity• Pulsing

23

Evaluating Advertising

• Measure the communication effects of an ad—“Copy Testing”

• Measure the sales effects of an ad• Is the ad increasing sales?

24

Sales Promotion

• Sales promotions are short-term incentives to encourage the purchase or sales of a product or service

• Goal of sales promotion is to generate immediate sales

25

Rapid Growth of Sales Promotion• Sales promotion can take the form of consumer,

business, trade, or sales force promotions• Rapid growth in the industry has been achieved

because• Product managers are facing more pressure to

increase their current sales• Companies face more competition• Advertising efficiency has declined• Consumers have become more deal oriented

26

Consumer Promotion

• Objectives• Increase short-term sales • Help build long-term market share

• Many tools exist for achieving these objectives

27

Consumer Sales Promotion Tools

• Patronage rewards for loyal/frequent customers

• Point-of-purchase displays

• Demonstrations• Contests• Sweepstakes• Games

• Samples• Most effective• Most costly

• Coupons• Cash refunds/rebates• Price packs• Premiums• Advertising Specialties

• Good with advertiser’s name

28

Trade Promotion

• Objectives• Persuade resellers to carry brand• Give brand shelf space• Promote brand in advertising• Push brand to customers

• Tools• Discounts, allowances, free goods, push money,

and specialty advertising items

29

Developing the Sales Promotion Program• Decide on the size of the incentive• Set conditions for participation• Decide how to promote and distribute promotion

program• Decide program length• Evaluate program

30

Public Relations

Building good relations with firm’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events

31

Public Relations Functions

• Press relations or press agency• Product publicity• Public affairs• Lobbying• Investor relations• Development

32

Public Relations Role & Impact• May strongly impact public awareness at lower

cost than advertising• Results can be spectacular• Beginning to play increasingly important brand-

building role

33

Public Relations Tools

• Audiovisual materials• Corporate identity

materials• Public service

activities• Company Web site

• News• Speeches• Special events• Buzz marketing• Mobile marketing • Written materials

34

Recap—What was Covered?• Process and advantages of integrated

marketing communications• Five promotion tools and factors that must be

considered in shaping overall promotion mix• Major decisions involved in developing an

advertising program• How sales promotion campaigns are

developed and implemented• How companies use public relations to

communicate with their publics