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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Case Study
AFLAC
• A few years ago, • 1999: AFLAC
only 13% of U.S. developed the “duck”
recognized AFLAC campaign to enhance
brand awareness
• Old ads: “warm and
• Incredibly successful:
fuzzy” similar to name recognition is
other insurance ads now 91%; sales growth
• Goal: break of 30% each year
through advertising campaign has run
clutter 16 - 4
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.
• Business firms, not-for-profit, social
agencies, and professionals all advertise.
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Advertising
Key Decisions • Advertising objectives can
be classified by primary
purpose:
• Setting objectives Inform
Introducing new products
• Setting the budget Persuade
• Developing the Becomes more important as
competition increases
advertising strategy Comparative advertising
Remind
• Evaluating advertising Most important for mature
campaigns products
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Advertising
Key Decisions • Methods of budget setting
were listed in chapter 15
• Several factors should be
• Setting objectives considered when setting the
• Setting the budget ad budget:
Stage in the PLC
• Developing the Market share
advertising strategy Level of competition
Ad clutter
• Evaluating advertising Degree of brand
differentiation
campaigns
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Advertising
Key Decisions • Creative challenges
Media fragmentation
Soaring media costs
• Setting objectives Advertising clutter
• Setting the budget • Creating ad messages
Message strategy
• Developing the Creative concept
advertising strategy Advertising appeal
Message execution
• Evaluating advertising Many execution styles
campaigns Tone, format, illustration,
headline, copy
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Advertising
Creative Execution Styles
• Slice of Life • Musical
• Lifestyle • Personality Symbol
• Fantasy • Technical Expertise
• Mood or Image • Scientific Evidence
• Testimonial Evidence or Endorsement
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Advertising
Key Decisions • Select advertising media
Decide on level of reach,
frequency and impact
• Setting objectives Choose among the major
media types by considering:
• Setting the budget Consumer media habits,
• Developing the nature of the product, types
of messages, and costs
advertising strategy Select specific media
vehicles
• Evaluating advertising
Decide on media timing
campaigns
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Advertising
Major Media Types
• Newspapers • Radio
• Television • Magazines
• Direct Mail • Outdoor
• Internet
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Advertising
Key Decisions • Measuring communications
effects
Copy testing
• Setting objectives Consumer recall
• Setting the budget Product awareness
Product knowledge
• Developing the Product preference
advertising strategy • Measuring sales effect
Past vs. current sales
• Evaluating advertising comparison
campaigns 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
Standardizing worldwide advertising
Advantages include lower advertising costs,
greater global advertising coordination, and
consistent global image
Drawbacks include ignoring differences in
culture, demographics, and economic conditions.
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 short-term sales
Generate product trial
• Objectives -- Trade Promotions:
Obtaining distribution and shelf space
Encouraging retailers to advertise the brand
• Objectives -- Sales Force Promotions:
Signing up new accounts
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Sales Promotion
Consumer Promotion Tools
• Samples • Premiums
• Cash Refunds • Patronage Rewards
(Rebates)
• Point-of-Purchase
• Price packs (cents- Communications
off deals)
• Advertising
• Contests, Games,
Specialties and Sweepstakes
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Sales Promotion
• Trade Promotion Tools
Discounts ( also called price-off, off-list, and off-
invoice)
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
consumer and trade promotions
Two additional tools:
Conventions and 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 • Lobbying
• Product • Investor
Publicity Relations
• Public Affairs • Development
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Public Relations
• Role and Impact of Public Relations
Advantages:
Strong impact on public awareness at
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 • Special Events
• Speeches • Written Materials
• Corporate Identity • Audiovisual
Materials Materials
• Mobile • Public Service
Marketing Activities
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