Introduction to Advertising, Sales Promotion and Public Relations: Part 2 Click icon to hear Setting Advertising Media • 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 2 Choosing Media Vehicles • Media vehicles • Specific media within each general media type • Factors to consider • • • • Cost per exposure Audience quality Audience attention Editorial quality 3 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 4 Evaluating Advertising • Measure the communication effects of an ad— “Copy Testing” • Measure the sales effects of an ad • Is the ad increasing sales? 5 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 6 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 7 Consumer Promotion • Objectives • Increase short-term sales • Help build long-term market share • Many tools exist for achieving these objectives 8 Consumer Sales Promotion Tools • Samples • Most effective • Most costly • • • • • Coupons Cash refunds/rebates Price packs Premiums Advertising Specialties • Patronage rewards for loyal/frequent customers • Point-of-purchase displays • Demonstrations • Contests • Sweepstakes • Games • Good with advertiser’s name 9 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 10 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 11 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 12 Public Relations Functions • • • • • • Press relations or press agency Product publicity Public affairs Lobbying Investor relations Development 13 Public Relations Role & Impact • May strongly impact public awareness at lower cost than advertising • Results can be spectacular • Beginning to play increasingly important brandbuilding role 14 Public Relations Tools • • • • • • News Speeches Special events Buzz marketing Mobile marketing Written materials • Audiovisual materials • Corporate identity materials • Public service activities • Company Web site 15 Recap—What was Covered? • • • • • Process and advantages of integrated marketing communications 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 16