Slide 1

Principles of Marketing,
Arab World Edition

Philip Kotler, Gary Armstrong, Anwar Habib, Ahmed
Tolba
Presentation prepared by Annelie Moukaddem Baalbaki
CHAPTER TWELVE
Promotion Mix Strategies:
Advertising and Public Relations
Lecturer: Insert your name here
Ch 12 -0 Copyright © 2011 Pearson Education

Promotion: Advertising and Public Relations
Topic Outline
12.1 Advertising
12.2 Public Relations
12.3 Personal Selling
12.4 Sales Promotion
Ch 12 - 1 Copyright © 2011 Pearson Education

Advertising
Developing and Advertising Programs
Advertising is any paid form of non-personal presentation and

promotion of ideas, goods, or services by an identified sponsor.

Advertising
Developing and Advertising Programs
Advertising
Setting Advertising Objectives
An advertising objective is a specific communication task

to be accomplished with a specific target audience during a
specific time.
• Objectives are classified by primary purpose

• Inform
• Persuade
• Remind

Advertising
Setting Advertising Objectives
Informative advertising is used when introducing a new

product category; the objective is to build primary demand.
Comparative advertising directly or indirectly compares the
brand with one or more other brands.
Persuasive advertising is important with increased
competition to build selective demand.
Reminder advertising is important with mature products to
help maintain customer relationships and keep customers
thinking about the product.

Advertising

Advertising
Setting the Advertising Budget
1. Product life-cycle stage

• New products require larger budgets
• Mature brands require lower budgets
2. Market share
• Building or taking market share requires larger budgets
• Markets with heavy competition or high advertising
clutter require larger budgets
• Undifferentiated brands require larger budgets

Advertising
Developing Advertising Strategy
Advertising strategy is the strategy by which the company

accomplishes its advertising objectives and consists of:
1. Creating advertising messages
2. Selecting advertising media

Advertising: Developing Advertising Strategy
Creating the Advertising Message
Ads need to break through the clutter:

1. Gain attention
2. Communicate well
Advertisements need to be better planned, more imaginative,

more entertaining, and more rewarding to consumers.
• Madison & Vine—the intersection of Madison Avenue and
Hollywood—represents the merging of advertising and
entertainment

Message strategy
Creative concept
Message execution

Message strategy is the general message that will be

communicated to consumers. It Identifies consumer benefits.
Creative concept is the idea that will bring the message
strategy to life and guide specific appeals to be used in an
advertising campaign. Characteristics of the appeals:
• Meaningful
• Believable
• Distinctive

Message execution is when the advertiser turns the big idea

into an actual ad execution that will capture the target
market’s attention and interest.
The creative team must find the best approach, style, tone,
words, and format for executing the message.

Creating the Advertising Message: Execution
Mood or
Slice of life Lifestyle Fantasy
image
Personality Technical Scientific

Musical
symbol expertise evidence
Testimonial or
endorsement

Creating the Advertising Message: Execution
Message execution also includes:

• Tone
- Positive or negative
• Attention-getting words
• Format
- Illustration
- Headline
- Copy

Consumer Generated Messages

1. YouTube videos, MySpace, Google…
2. Brand Web site contests
Benefits of consumer generated messages:
• Low expense
• New creative ideas
• Fresh perspective on brand
• Boost consumer involvement

Selecting Advertising Media
Major steps include:

1. Deciding on reach-frequency-impact
2. Choosing among major media types
3. Selecting media vehicles
4. Deciding on media timing

Reach is a measure of the percentage of people in the target

market who are exposed to the ad campaign during a given
period of time.
Frequency is a measure of how many times the average

person in the target market is exposed to the message.
Impact is the qualitative value of a message exposure through

a given medium.

Copyright © 2011 Pearson Education
Choosing among major media types:

1. Television
2. Internet
3. Newspapers
4. Direct Mail
5. Magazines
6. Radio
7. Outdoor

Selecting Specific media vehicles involves decisions

presenting the media effectively and efficiently to the target
customer and must consider the message’s:
• Impact
• Effectiveness
• Cost

Narrowcasting Versus Shotgun Approaches
Narrowcasting focuses the message on selected market

segments.
• Lowers cost
• Targets more effectively
• Engages customers better

When deciding on media timing, the planner must consider:

1. Seasonality
2. Pattern of the advertising
• Continuity—scheduling within a given period
• Pulsing—scheduling unevenly within a given period

Evaluating Advertising Effectiveness and
Return on Advertising Investment
Return on Advertising Investment
Return on Advertising Investment is the net return on

advertising investment divided by the costs of the advertising
investment.
Communication effects indicate whether the ad and media
are communicating the ad message well and should be tested
before or after the ad runs.
Sales and profit effects compare past sales and profits with
past expenditures or through experiments.

Other Advertising Considerations
1. Organizing for advertising

• Agency vs. in-house
2. International advertising decisions
• Standardization

Public Relations
Public relations involves 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.
Public relations is used to promote product, people, ideas, and

activities.

Public Relations
Public relations department functions include:

• Press relations or press agency
• Product publicity
• Public affairs
• Lobbying
• Investor relations
• Development

Public Relations
The Role and Impact of Public Relations
• Lower cost than advertising

• Stronger impact on public awareness than advertising

Public Relations
Major Public Relations Tools
Special Written
News Speeches
events materials
Corporate Public
Audiovisual Buzz
identity service
materials marketing
materials activities
Social
networking Internet

Personal Selling
The Role of the Sales Force
Personal selling is the personal presentation by the firm’s

sales force for the purpose of making sales and building
customer relationships.
Salesperson is an individual representing a company to

customers by performing one or more of the following
activities: prospecting, communicating, selling, servicing,
information gathering, and relationship building.

Personal Selling
The Role of the Sales Force
Salespeople are an effective link between the company and

its customers to produce customer value and company profit
by:
1. Linking the company with its customers
• Representing the company to customers
• Representing customers to the company
2. Coordinating marketing and Sales

Sales Promotion
Sales promotion refers to the short-term incentives to

encourage purchases or sales of a product or service:
• Consumer promotions
• Trade promotions
• Business promotions
• Sales force promotions
Whereas advertising offers reasons to buy a product or

service, sales promotion offers reasons to buy now.

Sales Promotion
Rapid Growth of Sales Promotions
Several Factors have contributed to this growth.

1. Product managers are under pressure to increase current
sales.
2. Companies face more competition.
3. Competing brands offer less differentiation.
4. Advertising efficiency has declined due to rising costs,
clutter, and legal constraints.
5. Consumers have become more deal-oriented.

Sales Promotion
Sales Promotion Objectives
Consumer promotion objectives:

• Urge short-term customer buying
• Enhance long-term customer relationships
Trade promotions urge retailers to:
• Carry new items or more inventory
• Buy in advance
• Advertise company products
• Get more shelf space

Sales Promotion
Sales Promotion Objectives
Sales force objectives include getting:

• More sales force support for new or current products
• Salespeople to sign up new accounts

Sales Promotion
Major Sales Promotion Tools
Samples Coupons Cash refunds Price packs
Point-of-
Advertising Patronage
Premiums purchase
specialties rewards
displays
Demonstrations Contests Sweepstakes Games

Sales Promotion
Consumer Promotion Tools
Samples offer a trial amount of a product.

Coupons are certificates that give buyers a saving when
they purchase specified products.
Cash refunds are similar to coupons except that the price
reduction occurs after the purchase.
Price packs offer consumers savings off the regular price of
a product.

Sales Promotion
Premiums are goods offered either for free or at a low price.

Advertising specialties are useful articles imprinted with
the advertiser’s name, logo, or message that are given as
gifts to consumers.
Point-of-purchase promotions include displays and
demonstrations that take place at the point of sales.

Sales Promotion
Contests, sweepstakes, and games give consumers the

chance to win something—such as cash, trips, or goods—by
luck or through extra effort.
Contests require an entry by a consumer.
Sweepstakes require consumers to submit their names for
a drawing.
Games present consumers with something that may or may
not help them win a prize.
Event marketing

Sales Promotion
Trade Promotion Tools
Discount
Allowance
Free goods
Specialty advertising

Sales Promotion
Business Promotion Tools
Conventions and trade shows are effective to reach many

customers not reached with the regular sales force.
Sales contests are effective in motivating salespeople or

dealers to increase performance over a given period.

Sales Promotion
Developing the Sales Promotion Program
1. Size of the incentive

2. Conditions for participation
3. Promote and distribute the program
4. Length of the program
5. Evaluation of the program

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Principles of Marketing,

Arab World Edition

Lecturer: Insert your name here

Ch 12 -0 Copyright © 2011 Pearson Education

Ch 12 - 1 Copyright © 2011 Pearson Education

Advertising is any paid form of non-personal presentation and

Ch 12 - 2 Copyright © 2011 Pearson Education

An advertising objective is a specific communication task

• Objectives are classified by primary purpose

Ch 12 - 4 Copyright © 2011 Pearson Education

Informative advertising is used when introducing a new

Ch 12 - 5 Copyright © 2011 Pearson Education

Ch 12 - 6 Copyright © 2011 Pearson Education

1. Product life-cycle stage

Ch 12 - 7 Copyright © 2011 Pearson Education

Advertising strategy is the strategy by which the company

Ch 12 - 8 Copyright © 2011 Pearson Education

Ads need to break through the clutter:

Advertisements need to be better planned, more imaginative,

Ch 12 - 9 Copyright © 2011 Pearson Education

Ch 12 - 10 Copyright © 2011 Pearson Education

Message strategy is the general message that will be

Ch 12 - 11 Copyright © 2011 Pearson Education

Message execution is when the advertiser turns the big idea

Ch 12 - 12 Copyright © 2011 Pearson Education

Personality Technical Scientific

Ch 12 - 13 Copyright © 2011 Pearson Education

Message execution also includes:

Ch 12 - 14 Copyright © 2011 Pearson Education

Consumer Generated Messages

Ch 12 - 15 Copyright © 2011 Pearson Education

Major steps include:

Ch 12 - 16 Copyright © 2011 Pearson Education

Reach is a measure of the percentage of people in the target

Frequency is a measure of how many times the average

Impact is the qualitative value of a message exposure through

Ch 12 - 17 Copyright © 2011 Pearson Education

Choosing among major media types:

Ch 12 - 18 Copyright © 2011 Pearson Education

Selecting Specific media vehicles involves decisions

Ch 12 - 19 Copyright © 2011 Pearson Education

Narrowcasting focuses the message on selected market

Ch 12 - 20 Copyright © 2011 Pearson Education

When deciding on media timing, the planner must consider:

Ch 12 - 21 Copyright © 2011 Pearson Education

Return on Advertising Investment is the net return on

Ch 12 - 22 Copyright © 2011 Pearson Education

1. Organizing for advertising

Ch 12 - 23 Copyright © 2011 Pearson Education

Public relations involves building good relations with the

Public relations is used to promote product, people, ideas, and

Ch 12 - 24 Copyright © 2011 Pearson Education

Public relations department functions include:

Ch 12 - 25 Copyright © 2011 Pearson Education

• Lower cost than advertising

Ch 12 - 26 Copyright © 2011 Pearson Education

Ch 12 - 27 Copyright © 2011 Pearson Education