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.
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Objectives
Learn how sales promotion
campaigns are developed and
implemented.
Learn how companies use public
relations to communicate with
their publics.
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c
AFLAC
A few years ago,
only 13% of U.S.
recognized AFLAC
Old ads: “warm
and fuzzy” similar
to other insurance
ads
Goal: break
through
advertising clutter
1999: AFLAC
developed the “duck”
campaign to enhance
brand awareness
Incredibly successful:
name recognition is
now 91%; sales
growth of 30% each
year campaign has
run
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What is Advertising?
Any form of nonpersonal presentation
and promotion of ideas, goods, or
services by an identified sponsor.
U.S. advertisers spend in excess of
$231 billion each year ($500b in the
World).
Advertising is used by:
 Business firms,
 Nonprofit organizations,
 Professionals,
 Social Agencies.
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Major Decisions in Advertising*
Objectives Setting
Budget Decisions
Message Decisions
Media Decisions
Campaign Evaluation
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Setting Objectives
Advertising Objectives
• Specific Communication Task
• Accomplished with a Specific Target Audience
• During a Specific Period of Time
Informative Advertising
Persuasive Advertising
Build Primary Demand
Build Selective Demand
Comparison Advertising
Reminder Advertising
Compares One Brand to
Another
Keeps Consumers Thinking
About a Product.
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Setting the Advertising Budget
Advertising Budget Methods
Affordable, Percentage of Sales, Competitive-Parity and
Objective-and-Task
Product
Differentiation
Advertising
Frequency
Stage in the Product
Life Cycle
Factors in
Setting the
Advertising
Budget
Market
Share
Competition
and Clutter
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TABLE 8 1998 Market Share, Advertising Expenditures, and Share-of-Voice figures
Rank
1
2
3
4
5
6
7
8
9
Brand
Compaq
Dell
Gateway
IBM
HP
Apple
Packard-Bell
Toshiba
Acer
1998 Market
Shares
14.1%
12.2
8.1
7.8
7.1
4.6
4.5
3.0
2.0
1
1998 Advertising 1998 Share-of2
3
Expenditures Voice
$108.8
90.6
141.0
148.9
33.9
79.7
3.1
14.5
4.0
10.6%
8.8
13.7
14.5
3.3
7.8
0.3
1.4
0.4
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Developing
Advertising Strategy:
Creating Ad Messages
Plan a Message Strategy
General Message to Be Communicated to Customers
Develop a Message
Focus on
Customer Benefits
Some phrases or Big Ideas become so
effective that they spark trends in speaking,
fashion, or even in other ads.
Creative Concept
“Big Idea”
Visualization or Phrase Advertising Appeals
Meaningful
Combination of Both
Believable
Distinctive
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Developing
Advertising Strategy:
Message
Execution
Message Execution
What type of message
execution do these two
ads employ?
In both cases, what
distinguishes the
product from the
rest of the ad?
Turning the “Big Idea” Into an Actual Ad to Capture the
Target Market’s Attention and Interest.
Click or press spacebar to return.
This Colgate ad
informs customers
about the necessity
of brushing after
lunch.
In addition to
acquiring new
customers, Colgate
may increase
toothpaste use by
present customers.
Testimonial Evidence
Scientific Evidence
Technical Expertise
Slice of Life
Typical
Message
Execution
Styles
Personality Symbol
Lifestyle
Fantasy
Mood or Image
What type of mood does this set ab ou tthe product?
Musical
Which lifestyle does it appeal to?
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Advertising Strategy
Selecting Advertising Media
Step 1. Decide on Reach, Frequency,
and Impact
Step 2. Choosing Among Major Media Types
Media Habits of Target Consumers
Nature of the Product
Type of Message
Cost
Step 3. Selecting Specific Media Vehicles
Specific Media Within a Given Type, i.e. Magazines.
Must Balance Media Cost Against Media Factors:
Audience Quality & Attention, Editorial Quality
Step 4. Deciding on Media Timing
Scheduling of Advertising Over the Course of a Year
Pattern of Ads: Continuity or Pulsing
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Advertising Media
Reach
 Target percentage of people exposed
Frequency
 how many time message is presented
 pulsing vs. continuity
Impact
 which type of media best
communicates
sight vs. sound vs. smell
New Yorker vs. Inquirer
Advertising
Major Media Types
Newspapers
Television
Direct Mail
Radio
Magazines
Outdoor
Internet
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TIVO is one example of how technology
presents challenges to media planners.
With TIVO, consumers can easily zap ads.
TIVO
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Evaluating
Advertising
Advertising Program Evaluation
Communication Effects
Sales Effects
Is the Ad Communicating Well?
Is the Ad Increasing Sales?
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What is Sales Promotion?
Mass communication technique that offers
short-term incentives to encourage
purchase or sales of a product or service.
Rapid growth of Sales promotion 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.
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Consumer - Promotion Tools
Short-Term Incentives to Encourage Purchase
or Sales of a Product or Service.
ConsumerPromotion
Objectives
Entice Consumers to
Try a New Product
Lure Customers Away
From Competitors’ Products
Get Consumers to “Load Up’
on a Mature Product
Hold & Reward Loyal
Customers
Consumer Relationship
Building
Consumer-Promotion
Tools
Samples
Coupons
Cash Refunds
Advertising
Specialties
Patronage
Patronage
Rewards
Rewards
Contests
Price Packs
Premiums
Sweepstakes
Games
Point-of-Purchase
Displays
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Checkout direct
offers marketers
an excellent
opportunity to
reach users of
the competition
Coupons are
only issued to
those who
purchase
specific brands
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Trade - Promotion Tools
Short-Term Incentives That are Directed to
Retailers and Wholesalers.
Trade-Promotion
Objectives
Trade-Promotion
Tools
Persuade Retailers or
Wholesalers to Carry a Brand
Price-Offs
Premiums
Give a Brand Shelf Space
Allowances
Promote a Brand in
Advertising
Patronage
Displays
Rewards
Buy-Back
Guarantees
Discounts
Push a Brand to Consumers
Free Goods
Contests
Push Money
Specialty
Advertising
Items
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Sales Promotion
Objectives –
Sales Force
Promotions:
 Signing up new
accounts
 Stimulating
sales of specific
items
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Business - Promotion Tools
Short-Term Incentives That are Directed to
Industrial Customers.
Business-Promotion
Objectives
Business-Promotion
Tools
Generate Business Leads
Conventions
Stimulate Purchases
Trade Shows
Reward Customers
Sales Contests
Motivate Salespeople
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Developing the Sales Promotion
Program
Decide on the Size of the Incentive
Set Conditions for Participation
Determine How to Promote and
Distribute the Promotion Program
Determine the Length of the Program
Evaluate the Program
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Public Relations
building good relations with
the company’s publics
favorable publicity
building good corporate
image
Major Public Relations
Functions
Press Relations or Agentry
Product Publicity
Public Affairs
Public Relations
Departments May
Perform Any of All
of the Following
Functions:
Lobbying
Investor Relations
Development
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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
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Major Public Relations Tools
Web Site
Public
Service
Activities
News
Corporate
Identity
Materials
Speeches
Special
Events
Audiovisual
Materials
Written
Materials
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Major Public Relations
Decisions
Setting Public Relations Objectives
Choosing the Public Relations Messages
and Vehicles
Implementing the Public Relations Plan
Evaluating Public Relations Results
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