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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Definition
Advertising
 Any paid form of
nonpersonal
presentation and
promotion of ideas,
goods, or services
by an identified
sponsor.
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Advertising
Signage in ancient times offers
evidence of early advertising.
Modern ad spending
tops $231 billion
in U.S. annually,
$500 billion
worldwide.
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Advertising
Business firms,
not-for-profit firms,
social agencies,
and professionals
such as doctors
and lawyers all
advertise.
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Figure 16-1:
Major
Advertising Decisions
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Advertising
Key Decisions:
Setting objectives
Setting the budget
Developing the
advertising
strategy
Evaluating
advertising
campaigns
Advertising objectives
can be classified by
primary purpose:
 Inform
 Introducing new
products
 Persuade
 Becomes more
important as
competition increases
 Comparative ads
 Remind
 Most important for
mature products
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Comparative
advertising
can be
extremely
persuasive
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Do these ads attempt
to inform, persuade,
or remind?
How effective are
these ads?
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Advertising
Key Decisions:
Setting objectives
Setting the budget
Developing the
advertising
strategy
Evaluating
advertising
campaigns
Methods of budget
setting were listed in
chapter 15
Several factors should
be considered when
setting the ad budget:





Stage in the PLC
Market share
Level of competition
Ad clutter
Degree of brand
differentiation
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Advertising
Key Decisions:
Setting objectives
Setting the budget
Developing the
advertising
strategy
Evaluating
advertising
campaigns
Creative challenges
 Media fragmentation
 Soaring media costs
 Advertising clutter
Creating ad messages
 Message strategy
 Creative concept
 Advertising appeal
 Message execution
 Many execution styles
 Tone, format,
illustration, headline,
copy
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Advertising
Creative Execution Styles
Slice of Life
Lifestyle
Fantasy
Mood or Image
Testimonial Evidence
or Endorsement
Musical
Personality
Symbol
Technical
Expertise
Scientific
Evidence
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Discussion Question
When does advertising
pass the boundaries of
good taste? Can you think
of some examples?
Should marketers be
concerned about the
opinions of anyone other
than the target market?
Why or why not?
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Celebrity endorsers
may be movie stars,
politicians, sports
stars, or other public
personalities
Testimonials feature
ordinary people who
talk about their
product experiences
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Advertising
Key Decisions:
Setting objectives
Setting the budget
Developing the
advertising
strategy
Evaluating
advertising
campaigns
Select advertising media
 Decide on level of reach,
frequency and impact
 Choose among the major
media types by
considering:
 Consumer media
habits, nature of the
product, types of
messages, and costs
 Select specific media
vehicles
 Decide on media timing
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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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Media planners
for Absolut
vodka work
with creatives
to design ads
targeted to
specific
audiences.
The ad at left
appears in
theater playbills.
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Advertising
Major Media Types
Newspapers
Television
Direct Mail
Radio
Magazines
Outdoor
Internet
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Marketers are increasingly using alternate
forms of media to reach their target markets.
What other examples can you think of
besides those shown below?
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Discussion Question
Reddi Wip is one product
whose media strategy
includes heavy ad
expenditures prior to
Thanksgiving.
What types of products
would benefit from a
media flighting strategy?
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Advertising
Key Decisions:
Setting objectives
Setting the budget
Developing the
advertising
strategy
Evaluating
advertising
campaigns
Measuring
communications effects





Copy testing
Consumer recall
Product awareness
Product knowledge
Product preference
Measuring sales effect
 Past vs. current sales
comparison
 Experimentation
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Advertising
Organizing the Advertising Function
 Small vs. large companies
 Nature of advertising agencies
Advantages of advertising agencies
 Departments
 Compensation
 Changes in agency services

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Advertising
Advertising to
International Markets
 Advantages of
standardizing
worldwide advertising:



Lower advertising
costs
Greater global ad
coordination
Consistent global
image
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Advertising
Advertising to
International Markets
 Drawbacks to
standardizing
worldwide advertising:
 Ignores
differences in
demographics and
economic conditions
 Ignores differences in
culture
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U.S., Thai, & German
websites reflect the
worldwide Jeep
brand image of
ruggedness
and reliability
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Advertising
Advertising to International Markets
 Most
marketers
think
globally
but act
locally
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Definition
Sales Promotion
 Sales Promotions
are short-term
incentives to
encourage the
purchase or sale
of a product or
service.
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Sales Promotion
Sales Promotions
 Can be targeted at final buyers,
retailers and wholesalers,
business customers, and
members of the sales force.
 The use of sales promotions has
been growing rapidly.
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Sales Promotion
Objectives –
Consumer
Promotions:
 Increase shortterm sales
 Generate product
trial
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Sales Promotion
Consumer Promotion Tools
Samples
Cash Refunds
(Rebates)
Price packs
(cents-off deals)
Advertising
Specialties
Premiums
Patronage
Rewards
Point-of-Purchase
Communications
Contests, Games,
and Sweepstakes
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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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Sales Promotion
Objectives – Trade Promotions:
 Obtaining
distribution and
shelf space
 Encouraging
retailers to
advertise the
brand
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Sales Promotion
Objectives –
Sales Force
Promotions:
 Signing up new
accounts
 Stimulating
sales of specific
items
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Sales Promotion
Trade Promotion Tools
 Discounts (also called price-offs,
off-list, and off-invoice discounts)
 Allowances
Advertising allowances
 Display allowances

 Free goods
 Push money
 Specialty advertising items
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Sales Promotion
Business Promotion Tools
 Includes many of
the same tools
used in trade
and consumer
promotions
 Two additional
tools:


Conventions
& trade shows
Sales contests
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Sales Promotion
Key Decisions When Developing the
Sales Promotion Program:
 Size of the incentive
 Conditions for participation
 Promotion and distribution of the actual
sales promotion program
 Length of the promotional program
 Evaluation

Surveys and experiments can be used
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Definition
Public Relations:
 Building good relations with the
company’s various publics by
obtaining favorable publicity, building
up a good corporate image, and
handling or heading off unfavorable
rumors, stories, and events.
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Public Relations
Public Relations Functions
Press
Relations
Product
Publicity
Public Affairs
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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Public Relations
Public Relations Tools
News
Speeches
Corporate Identity
Materials
Mobile
Marketing
Special Events
Written Materials
Audiovisual
Materials
Public Service
Activities
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Special Events: Sponsorships
In-Depth
Public Relations Tie-in:
 Sponsorships relate to
special events
Types of Sponsorships:
 Sports sponsorships
 Entertainment, tours, and
attractions
 Festivals, fairs, and annual
events
 Cause-related marketing
 Arts
Sponsorship Trends:
 2001: $9.5 billion spent
Reasons for Growth:
 Avoids clutter
 Cost efficient / effective
 Gains constituencies’
approval
 Enhances brand equity
 Allows for lifestyle or
geographic targeting
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Special Events: Sponsorships
In-Depth
Selecting Sponsorship
Events -- Consider:
 Is it consistent with brand
image or will it benefit the
brand image?
 Does it offer a strong
probability of reaching the
target audience?
 Does the event
complement existing
sponsorships and other
IMC efforts?
Selecting Sponsorship
Events -- Consider:
 Is the event cluttered by
many other sponsors?
 Is the event
economically viable?
 Has the competition
previously sponsored
the event? Is there a risk
of confusing the target
audience as to the
sponsor’s identity?
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Discussion Question
If you were responsible
for marketing an antiaging cream to baby
boomers, what events
or causes would you
choose to sponsor
(local or national) and
why?
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