Advertising,

Sales Promotion, and

Public Relations

Chapter 15
 Learning Goals
1. Understand the roles of advertising, sales
promotion, and public relations in the
promotion mix.
2. Know the major decisions
involved in developing an advertising
program.
3. Learn how sales promotion campaigns are
developed and implemented.
4. Learn how companies use public relations
to communicate with their publics.

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 Case Study
Crispin Porter &
Bogusky
• Located in Coconut • Often suggests
Grove, FL changes in the client’s
procedures, products
• Winner of several and processes to
creative awards enhance brand image
• Known for guerrilla • Clients include Virgin
tactics, Airline, MINI cars, Ikea
furniture, Molson beer,
unconventional Truth and Burger King
media and holistic
marketing strategies

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 Definition
• Advertising
 Any paid form of nonpersonal
presentation and promotion of
ideas, goods, or services by an
identified sponsor.

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1: Understand the roles of advertising, sales promotion and public relat
 Advertising
• Signage in ancient times offers
evidence of early advertising.
• Modern ad spending tops $245
billion in U.S. annually, $498
billion worldwide.
• Business firms, not-for-profit,
social agencies, and
professionals all advertise.

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1: Understand the roles of advertising, sales promotion and public relat
 Advertising

Key • Advertising objectives

can be classified by
Decisions primary purpose:
• Setting objectives  Inform
• Introducing new
• Setting the budget products
 Persuade
• Developing the • Becomes more
advertising strategy important as
competition increases
• Evaluating • Comparative
advertising
advertising  Remind
campaigns • Most important for
mature products
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2: Know the major decisions involved in developing an advertising prog
 Advertising

Key • Methods of budget

setting were listed in
Decisions chapter 14
• Several factors should
• Setting objectives be considered when
• Setting the budget setting the ad budget:
• Developing the  Stage in the PLC
 Market share
advertising strategy  Level of competition
• Evaluating  Ad clutter
 Degree of brand
advertising differentiation
campaigns
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2: Know the major decisions involved in developing an advertising prog
 Advertising

Key • Creative challenges

 Advertising clutter
Decisions  TiVo and PVR’s
• Setting objectives • Creating ad messages
 Message strategy
• Setting the budget • Creative concept or
Big Idea
• Developing the • Advertising appeal
advertising strategy  Message execution
• Many execution styles
• Evaluating • Tone, format,
advertising illustration, headline,
copy
campaigns
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2: Know the major decisions involved in developing an advertising prog
 Advertising

Creative Execution Styles

• Slice of Life • Musical
• Lifestyle • Personality Symbol
• Technical Expertise
• Fantasy
• Scientific Evidence
• Mood or
Image
• Testimonial Evidence or Endorsement

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2: Know the major decisions involved in developing an advertising prog
 Advertising

Key • Select advertising media

 Decide on level of reach,

Decisions frequency and impact

 Choose among the major
• Setting objectives media types by considering:
• Consumer media habits,
• Setting the budget nature of the product, types
of messages, and costs
• Developing the  Select specific media
advertising strategy vehicles
 Decide on media timing
• Evaluating
advertising
campaigns
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2: Know the major decisions involved in developing an advertising prog
 Advertising

Major Media Types

• Newspaper • Radio
s • Magazines
• Television • Outdoor
• Direct Mail
• Internet
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2: Know the major decisions involved in developing an advertising prog
 Advertising

Key • Measuring
communications effects
Decisions  Copy testing
• Setting objectives • Measuring sales effect
 Compare past sales
• Setting the budget with past advertising
• Developing the expenditures
 Experiments
advertising strategy
• Evaluating
advertising
campaigns
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2: Know the major decisions involved in developing an advertising prog
 Advertising
• Organizing the Advertising
Function
 Small vs. large companies
 Nature of advertising agencies
• Advantages of advertising agencies
• Consolidation and growth of
agencies
• Creative boutiques

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2: Know the major decisions involved in developing an advertising prog
 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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2: Know the major decisions involved in developing an advertising prog
 Definition
• Sales Promotion
 Sales promotions are short-term
incentives to encourage the
purchase or sale of a product or
service.

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l 3: Learn how sales promotion campaigns are developed and implemen
 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.
 78% are to the trade with 22% to
end consumers.

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l 3: Learn how sales promotion campaigns are developed and implemen
 Sales Promotion
• Objectives – Consumer Promotions:
 Increase short-term sales or long-term
market share
 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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l 3: Learn how sales promotion campaigns are developed and implemen
 Sales Promotion

Consumer Promotion Tools

• Samples • Premiums
• Coupons • Patronage Rewards
• Cash Refunds • Point-of-Purchase
Communications
(Rebates)
• Contests, Games,
• Price packs and Sweepstakes
(cents-off deals)
• Advertising
Specialties

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l 3: Learn how sales promotion campaigns are developed and implemen
 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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l 3: Learn how sales promotion campaigns are developed and implemen
 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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l 3: Learn how sales promotion campaigns are developed and implemen
 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

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l 3: Learn how sales promotion campaigns are developed and implemen
 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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Goal 4: Learn how companies use public relations
 Public Relations

Public Relations Functions

• Press • Lobbying
Relations • Investor
• Product Relations
Publicity
• Development
• Public Affairs

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Goal 4: Learn how companies use public relations
 Public Relations
• Role and Impact of Public Relations
 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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Goal 4: Learn how companies use public relations
 Public Relations

Public Relations Tools

• News • Special Events
• Speeches • Written
• Buzz Marketing Materials
• Audiovisual
• Corporate Materials
Identity Materials • Public Service
• Mobile Activities
Marketing • Internet 15 - 25
Goal 4: Learn how companies use public relations