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    Advertising, Sales Promotion, and Public Relations

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    Dilip Malekar
    This document provides an overview of advertising, sales promotion, and public relations. It defines each topic and discusses their objectives and major tools. Advertising is defined as paid, nonpersonal promotion to inform and influence. Sales promotion uses short-term incentives to encourage purchase. Public relations involves building goodwill through favorable publicity and managing corporate image and crises. The document outlines the functions, advantages, disadvantages and common techniques for each area.

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    Advertising, Sales Promotion, and Public Relations

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    Dilip Malekar
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    This document provides an overview of advertising, sales promotion, and public relations. It defines each topic and discusses their objectives and major tools. Advertising is defined as paid, nonpersonal promotion to inform and influence. Sales promotion uses short-term incentives to encourage purchase. Public relations involves building goodwill through favorable publicity and managing corporate image and crises. The document outlines the functions, advantages, disadvantages and common techniques for each area.

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    This document provides an overview of advertising, sales promotion, and public relations. It defines each topic and discusses their objectives and major tools. Advertising is defined as paid, nonpersonal promotion to inform and influence. Sales promotion uses short-term incentives to encourage purchase. Public relations involves building goodwill through favorable publicity and managing corporate image and crises. The document outlines the functions, advantages, disadvantages and common techniques for each area.

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    40 views25 pages

    Advertising, Sales Promotion, and Public Relations

    Uploaded by

    Dilip Malekar
    This document provides an overview of advertising, sales promotion, and public relations. It defines each topic and discusses their objectives and major tools. Advertising is defined as paid, nonpersonal promotion to inform and influence. Sales promotion uses short-term incentives to encourage purchase. Public relations involves building goodwill through favorable publicity and managing corporate image and crises. The document outlines the functions, advantages, disadvantages and common techniques for each area.

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    Chapter 15

    Advertising, Sales Promotion, and Public Relations

    Advertising
    Advertising is centuries old. U.S. advertisers spend in excess of $212 billion each year; worldwide spending exceeds $414 billion. Advertising is used by:
    Business firms, Nonprofit organizations, Professionals, and Social agencies.

    What is Advertising?

    Advertising is Any Paid Form of Nonpersonal Presentation and Promotion of Ideas, Goods, or Services by an Identified Sponsor.

    Functions of Advertising
    Provide Product & Provide Product & Brand Information Brand Information

    Provide Incentives Provide Incentives To Take Action To Take Action

    Advertising Advertising Performs 3 Basic Performs 3 Basic Functions Functions

    Provide Reminders Provide Reminders and and Reinforcement Reinforcement

    Roles of Advertising
    Marketing Role Marketing Role Communication Role Communication Role Economic Role Economic Role
    Marketing is the process a business uses to satisfy consumer needs and wants through goods and services. Advertising is a form of mass communication. Two main views about advertising, either the market power model or the economics of information theory. Informs us about new and improved products, teaches us how to use these innovations, etc.

    Societal Role Societal Role

    Types of Advertising
    Interactive Interactive Advertising Advertising Public Service Public Service Advertising Advertising Institutional Institutional Advertising Advertising Business-toBusiness-toBusiness Business Advertising Advertising Brand Brand Advertising Advertising Retail or Local Retail or Local Advertising Advertising Political Political Advertising Advertising Directory Directory Advertising Advertising

    Direct-Response Direct-Response Advertising Advertising

    The Five Ms of Advertising


    Mission Money Message Measurement Media

    Developing an Advertising Plan


    3. 2. 1.
    Assigning Assigning responresponsibility sibility Establishing Establishing a budget a budget

    Figure 19-1

    4.
    Developing Developing themes themes

    Setting Setting objectives objectives Feedback 9. Evaluating Evaluating success/ success/ failure failure 8. Considering Considering cooperative cooperative efforts efforts

    5. Selecting Selecting
    media media

    6. 7.
    Timing Timing ads ads Creating Creating ads ads

    Developing Advertising Strategy:


    Creating Ad Messages
    General Message to Be Communicated to Customers

    Plan a Message Strategy

    Develop a Message Develop a Message


    Focus on Focus on Customer Benefits Customer Benefits

    Some phrases or Big Ideas become so effective that they spark trends in speaking, fashion, or even in other ads.

    Visualization or Phrase Visualization or Phrase Combination of Both Combination of Both

    Creative Concept Creative Concept Big Idea Big Idea

    Advertising Appeals Advertising Appeals


    Meaningful Meaningful Believable Believable Distinctive Distinctive

    M essage Executi on
    What type of message executi on do these two ads employ?

    Developing Advertising Strategy: Message Execution


    T h is C o lg a t e a d in f o r m s c u sto m ers a b o u t th e n ec e s si ty o f b ru s h in g a fte r lu n c h .

    In both cases, what distingui shes the product from the rest of the ad?

    Click or p res s spacebar to retu rn.

    Turning the Big Idea Into an Actual Ad to Capture the Target Markets Attention and Interest.
    I n a dd it io n to a c q u ir in g n ew cu s tom e r s, Colgate m a y i nc re a se to o th p a s te u se b y p re s e nt c u st o m e rs .

    Testimonial Evidence Testimonial Evidence Scientific Evidence Scientific Evidence

    Slice of Life Slice of Life Lifestyle Lifestyle Fantasy Fantasy Mood or Image Mood or Image
    What type of mood does this set ab o tthe product? u

    Technical Expertise Technical Expertise Personality Symbol Personality Symbol

    Typical Message Execution Styles

    Musical Musical
    Which lifestyle does it appeal to?

    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, Types of Message, Cost

    Specific Media Within a Given Type, i.e. Magazines. Must Balance Media Cost Against Media Factors:
    Audience Quality & Attention, Editorial Quality

    Step 3. Selecting Specific Media Vehicles

    Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing

    Step 4. Deciding on Media Timing

    Types of Advertising Media


    Broadcast Media Broadcast Media
    Television Television Network, spot, Network, spot, and cable tv and cable tv Radio Radio

    Print Media Print Media


    Newspapers Newspapers Magazines Magazines Directories Directories

    Out-of-home Out-of-home Media Media

    Interactive Media Interactive Media


    TV shopping TV shopping Computers Computers FAX ads FAX ads E-mail E-mail

    Outdoor media Outdoor media Place-based media Place-based media

    Advertising Agencies
    Large agencies divide their staffs to specialize in creative,media,research, or business (account planning). Ad agencies are moving away from the commission system because it no long accurately reflects the services performed. Most ad agency clients still want just a few of the services that can be provided by the agency, so diversification efforts have been limited.

    Types of Agencies
    Full-Service 4 Major Staff Functions Full-Service 4 Major Staff Functions Specialized Functions, Audiences, Industries Specialized Functions, Audiences, Industries Industry-Focused Certain Fields, Industries Industry-Focused Certain Fields, Industries Minority Focus on Ethnic Group Minority Focus on Ethnic Group Creative Focus on Creative Executive Creative Focus on Creative Executive Media Buying Services Purchase of Media Buying Services Purchase of Media for Clients Media for Clients Virtual Uses Technology to Operate Virtual Uses Technology to Operate

    How Agencies are Organized


    Internal Services Account Management

    Account Planning & Research

    5 Areas of 5 Areas of Importance Importance


    Media Planning & Buying

    Creative Development & Production

    What is Sales Promotion ?


    Sales Promotion is a Mass Communication Technique That Offers Short-Term Incentives to Encourage Purchase or Sales of a Product or Service. Offers Reasons to Buy Now.

    Sales Promotion Objectives


    Increase short-term sales or help build longterm market share. Get retailers to:
    carry new items and more inventory, advertise products, give products more shelf space, and buy product ahead.

    In general, sales promotion should focus on consumer relationship building.

    Sales Promotions Sales Promotions


    Advantages Advantages
    Build interest Build interest Bring quick sales bursts Bring quick sales bursts Build relationships with Build relationships with intermediaries intermediaries Influence laggards Influence laggards Keep traffic high Keep traffic high Gather information for Gather information for databases databases Dilute brand equity Dilute brand equity Poison the well Poison the well Seem temporary Seem temporary Dilute future sales Dilute future sales

    Disadvantages Disadvantages

    Major Consumer Sales Promotion Tools


    Sample Sample Coupons Coupons Cash Refunds Cash Refunds Price Packs Price Packs Premiums Premiums Advertising Advertising Specialties Specialties
    Trial amount of a product Trial amount of a product Savings when purchasing specified Savings when purchasing specified products products Refund of part of the purchase price Refund of part of the purchase price Reduced prices marked on the label or Reduced prices marked on the label or package package Goods offered free or low cost as an Goods offered free or low cost as an incentive to buy a product incentive to buy a product Articles imprinted with an advertisers Articles imprinted with an advertisers name given as gifts name given as gifts

    Major Consumer Sales Promotion Tools


    Patronage Rewards Patronage Rewards Point-of-Purchase Point-of-Purchase Contests Contests Sweepstakes Sweepstakes Game Game
    Cash or other rewards for the use of a Cash or other rewards for the use of a certain product certain product Displays and demonstrations that take Displays and demonstrations that take place at the point of sale place at the point of sale Consumers submit an entry to be judged Consumers submit an entry to be judged Consumers submit their names for a Consumers submit their names for a drawing drawing Presents consumers with something every Presents consumers with something every time they buy time they buy

    What is Public Relations?


    Public Relations Involves Building Good Relations With the Companys Various Publics by Obtaining Favorable Publicity, Building Up a Good Corporate Image, and Handling or Heading Off Unfavorable Rumors, Stories, and Events.

    The Practice of Public Relations


    Public relations is a management function that is practiced by a wide range of organizations such as:
    companies, governments, trade and professional associations, non-profit organizations, travel and tourism industry, educational systems, labor unions, politicians, organized sports, and the media.

    Major Public Relations Functions


    Press Relations or Agentry Press Relations or Agentry Product Publicity Product Publicity Public Affairs Public Affairs Lobbying Lobbying Investor Relations Investor Relations Development Development

    Public Relations Departments May Perform Any of All of the Following Functions:

    Major Public Relations Tools


    News Web Site Public Service Activities Corporate Identity Materials Speeches Special Events

    Audiovisual Materials

    Written Materials

    Comparing Public Relations and Advertising


    Public Relations Differs From Advertising in Three Public Relations Differs From Advertising in Three Important Ways: Important Ways:

    Media Use Media Use Advertising Advertising Pays Pays PR PR Persuades Persuades

    Control Control Advertising Advertising More More PR Less PR Less

    Credibility Credibility AdvertisingAdvertisingSome Some PR Much PR Much More More

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