Introduction to Advertising,
Sales Promotion and Public
Relations
Overview
• 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
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Marketing Communications
(Promotion) Mix
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Advertising
Sales Promotion
Public Relations
Personal Selling
Direct Marketing
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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
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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…
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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
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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 longterm commitment
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Sales Promotion
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Wide assortment of tools
Attracts consumer attention
Offers strong incentives to buy
Invites and rewards quick consumer response
Effects are short-lived
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Public Relations
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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
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Direct Marketing
• Many forms share four primary characteristics
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Nonpublic
Immediate
Customized
Interactive
• Well suited to highly targeted marketing
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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
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Major Advertising Decisions
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Setting advertising objectives
Setting the advertising budget
Developing advertising strategy
Evaluating advertising campaigns
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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
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Inform—to build primary demand
Persuade—to build selective demand
Compare—type of persuasive advertising
Remind—for mature products/brands
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Setting the Advertising Budget
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Affordable method
Percentage-of-sales method
Competitive-parity method
Objective-and-task method
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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
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Message Strategy
• Identify customer benefits
• Develop compelling creative concept—the “Big
Idea”
• Advertising appeals should be meaningful,
believable, and distinctive
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Message Execution
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Slice of Life
Lifestyle
Fantasy (dream)
Mood or Image
Musical
Personality Symbol
• Technical Expertise of
Firm’s Personnel
• Scientific Evidence
• Testimonial or
Endorsement
• e.g., Taco Bell dog
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Message Execution
• Choose a tone
• Use memorable, attention-getting words
• Choose correct format elements
• Illustration
• Headline
• Copy
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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
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Choosing Media Type
• Factors to consider when selecting media type
• Medium’s impact
• Message effectiveness
• Cost
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Choosing Media Vehicles
• Media vehicles
• Specific media within each general media type
• Factors to consider
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Cost per exposure
Audience quality
Audience attention
Editorial quality
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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
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Evaluating Advertising
• Measure the communication effects of an ad—
“Copy Testing”
• Measure the sales effects of an ad
• Is the ad increasing sales?
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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
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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
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Consumer Promotion
• Objectives
• Increase short-term sales
• Help build long-term market share
• Many tools exist for achieving these objectives
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Consumer Sales Promotion Tools
• Samples
• Most effective
• Most costly
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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
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Trade Promotion
• Objectives
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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
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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
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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
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Public Relations Functions
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Press relations or press agency
Product publicity
Public affairs
Lobbying
Investor relations
Development
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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
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Public Relations Tools
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News
Speeches
Special events
Buzz marketing
Mobile marketing
Written materials
• Audiovisual materials
• Corporate identity
materials
• Public service
activities
• Company Web site
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Recap—What was Covered?
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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
34