Chapter 13

Advertising, Sales Promotion

and Public Relations

Prepared by
Deborah Baker
Texas Christian University

Chapter 13 Ver 2e ©2000 South-Western College Publishing 1

Chapter 13 Objectives
1. Discuss the effect advertising has on market
share, consumers, brand loyalty, and
perception of product attributes.

2. Identify the major types of advertising.

3. Describe the advertising campaign process.

4. Describe media evaluation and selection

techniques.

(continued)
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Chapter 13 Objectives

5. Define and state the objectives of sales

promotion.

6. Discuss the most common forms of

consumer sales promotion.

7. List the most common forms of trade

sales promotion.

8. Discuss the role of public relations

in the promotional mix.

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Effects of Advertising
Advertising • New brands spend proportionately more f
and or advertising than old ones.
Market Share • Beyond a certain level, diminishing returns
set in.
Advertising • Average U.S. citizen is exposed to hundre
and the ds of ads each day.
Consumer • Advertising may change a person’s
negative attitude.
Advertising • Consumers with high brand loyalty are lea
and st susceptible to competitive ads.
Brand Loyalty • Ads reinforce positive attitudes.

Advertising • Advertising can affect a consumer’s rank

and of brand attributes.
Product Attributes

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 Major Types of Advertising
The Public

Investment Community
Institutional
Advertising Customers

Types Employees
of
Advertising
Pioneering

Product Competitive
Advertising

Comparative
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Product Advertising
• Stimulates primary demand for
Pioneering new product or category

• Influence demand for brand in the gro

Competitive wth phase of the PLC.
• Often uses emotional appeal.

• Compares two or more competing bra

Comparative nds’ product attributes.
• Used if growth is sluggish, or if comp
etition is strong.

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Steps in Creating an Advertising Campaign

Determine the
campaign objectives.

Make creative decisions. Make media decisions.

Evaluate the campaign.

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Make Creative Decisions
Identify
Product Benefits

 “Sell the Sizzle, not the Steak”

 Sell product’s benefits, not features

 A benefit should answer

“What’s in it for me?”

 Ask “So?” to determine

if a benefit

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Common Advertising Appeals
Profit Product saves, makes, or protects money

Health Appeals to body-conscious or health seekers

Love or romance Used in selling cosmetics and perfumes

Fear Social embarrassment, old age, losing health

Admiration Reason for use of celebrity spokespeople

Convenience Used for fast foods and microwave foods

Fun and pleasure Key to advertising vacations, beer, parks

Vanity and egotism Used for expensive or conspicuous items

Environmental
Centers around environmental protection
Consciousness
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 Execute the Message
Scientific Slice-of-Life
Musical Lifestyle

Demon-
Common Spokes-perso
n/
stration Executional Testimonial
Styles

Mood or Imag
Fantasy
e
Real/
Animated
Humorous
Product
Symbols
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Make Media Decisions
Newspapers

Magazines

Radio

Television

Major Types Outdoor

of
Advertising Internet
Media
Alternative Media
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National Ad Spending for Media--1997

Internet Magazines
Yellow Pages
Radio

Newspapers

Outdoor
Television

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 Newspapers
Advantages Disadvantages

 Year-round readership  Limited demographic select

ivity
 Geographic selectivity
 Little color
 Immediacy
 May be expensive
 High individual market cove
rage  Low pass-along rate

 Short lead time  Clutter

 Mass market medium

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 Magazines
Advantages Disadvantages

 Good reproduction  Higher cost per contact

 Demographic selectivity  Long-term advertiser comm

itments
 Regional/local selectivity
 Slow audience build-up
 Long advertising life
 Limited demonstration cap
 High pass-along rate abilities

 Lack of urgency

 Long lead time

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 Radio
Advantages Disadvantages

 Selectivity and audience se  No visual treatment

gmentation
 Short advertising life
 Immediate and portable
 High frequency to generate
 Geographic flexibility retention

 Entertainment carryover  Commercial clutter

 Short-term ad commitment  Background distractions

s

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 Television
Advantages Disadvantages

 Wide diverse audience  Short life of message

 Low cost per thousand  Expensive with high campa

ign cost
 Creative and demonstrative
 Little demographic selectivi
 Immediacy of messages ty with network

 Entertainment carryover  Long-term advertiser comm

itments
 Demographic selectivity wit
h cable stations  Long lead times

 Clutter
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 Outdoor Media
Advantages Disadvantages

 High exposure frequency  Short message

 Moderate cost  Lack of demographic select

ivity
 Flexibility
 High “noise” level
 Geographic selectivity

 Broad, diverse market

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 Internet and World Wide Web
Advantages Disadvantages

 Fast growing  Difficult to measure ad effe

ctiveness and ROI
 Ability to reach narrow targ
et audience  Ad exposure relies on “clic
k through”
 Short lead time
 Not all consumers have acc
 Moderate cost ess to internet

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Alternative Media
Fax Machines

Video Shopping Carts

Examples of Computer
Alternative Media Screen Savers

Interactive Kiosks

Ads in
Movies and Videos
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©2000 South-Western College Publishing
Media Selection Considerations
Cost per Contact

Factors Reach
Influencing
Media Mix
Decisions Frequency

Audience Selectivity

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 Media Scheduling

Continuous Media Schedule

Flighted Media Schedule

Pulsing Media Schedule

Types of
Media Schedules Seasonal Media Schedule

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 Sales Promotion

Sales Promotion
Targets

Consumer Trade
Sales Promotion Sales Promotion

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 Sales Promotion
Immediate Purchases

Increase Trial

Boost consumer inventory

Encourage repurchase

Objectives Increase ad effectiveness

of
Encourage brand switching
Sales Promotion
Encourage brand loyalty
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 Tools for Consumer Sales Promotion

Coupons and Rebates

Premiums

Loyalty Marketing Programs

Contests & Sweepstakes

Popular Tools
for Sampling
Consumer Sales
Promotion Point-of-Purchase Promotion

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 Consumers & Sales Promotion Goals
Sales Promotion
Type of Buyer Desired Results
Examples
• Reinforce behavior
•Loyalty marketing
Loyal Customers • Increase consumption
•Bonus packs
• Change timing
Competitor’s •Sampling
• Break loyalty
•Sweepstakes,
Customers • Persuade to switch
contests, premiums
•Price-lowering
• Persuade to buy your
Brand Switchers brand more often
promotion
•Trade deals
• Appeal with low •Coupons, price-off
Price Buyers prices packages, refunds
• Supply added value •Trade deals

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Tools for Trade Sales Promotion

Trade Allowances

Push Money

Training

Free Merchandise
Unique Tools
for Store Demonstration
Trade Sales
Promotion Conventions & Trade Shows

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Functions of Public Relations

Press Relations

Product Publicity

Corporate Communication

Public Affairs

Lobbying

Employee and Investor Relations

Crisis Management

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Major Public Relations Tools
New Product Publicity

Product Placement

Customer Satisfaction
Phone Lines
Tools
Used By Consumer Education
PR
Professionals
Event Sponsorship

Issue Sponsorship

Internet Web Sites

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