Advertising, Sales Promotion,

and
Public Relations
 Definition

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

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 Major
Advertising Decisions

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 Advertising
Advertising objectives can
Key Decisions: be classified by primary
purpose:
Setting objectives  Inform
 Introducing new
Setting the budget products
Developing the  Persuade
 Becomes more important
advertising as competition increases
strategy  Comparative ads
 Remind
Evaluating  Most important for
advertising mature products
campaigns
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 Advertising
Key Decisions:
Several factors should
Setting objectives be considered when
Setting the budget setting the ad budget:
 Stage in the PLC
Developing the  Market share
advertising  Level of competition
strategy  Ad clutter
 Degree of brand
Evaluating differentiation
advertising
campaigns

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 Advertising
Key Decisions: Creative challenges
 Media fragmentation
Setting objectives  Soaring media costs
 Advertising clutter
Setting the budget
Creating ad messages
Developing the  Message strategy
advertising  Creative concept
strategy  Advertising appeal
 Message execution
Evaluating
 Many execution styles
advertising  Tone, format,
campaigns illustration, headline,
copy

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 Advertising
Creative Execution Styles
Slice of Life Musical
Lifestyle Personality
Symbol
Fantasy
Technical
Mood or Image Expertise
Testimonial Evidence Scientific
or Endorsement Evidence

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 Advertising
Setting objectives Select advertising media
 Decide on level of reach,
Setting the budget frequency and impact
Developing the  Choose among the major
media types by
advertising considering:
strategy  Consumer media habits,
nature of the product,
Evaluating types of messages, and
advertising costs
campaigns  Select specific media
vehicles
 Decide on media timing

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 Advertising
Major Media Types
Newspapers Radio
Television Magazines
Direct Mail Outdoor OOH
Online - Below-the-line
Internet POP or POS

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 Advertising
Setting objectives Measuring
Setting the budget communications effects
 Copy testing
Developing the  Consumer recall
advertising  Product awareness
strategy  Product knowledge
 Product preference
Evaluating
Measuring sales effect
advertising  Past vs. current sales
campaigns comparison
 Experimentation

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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

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 Sales Promotion
Consumer Promotion Tools
Samples Premiums
Cash Refunds Patronage Rewards
(Rebates) – Loyalty Points
Price packs Point-of-Purchase
(price-off deals) Communications
Advertising Contests, Games,
Specialties and Sweepstakes

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 Sales Promotion
Objectives – Trade Promotions:
 Obtaining
distribution and
shelf space
 Encouraging
retailers to
advertise the
brand

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Sales Promotion
Objectives –
Sales Force
Promotions:
Incentives,
Contests
 Signing up new
accounts
 Stimulating sales
of specific items

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 Sales Promotion
Trade Promotion Tools
 Discounts (also called price-offs,
off-list, and off-invoice discounts)
 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 trade
and consumer promotions
 Two additional
tools:
 Conventions
& trade shows
 Sales contests

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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 unfavourable
rumours, stories, and events.

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

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 Public Relations

Role & Impact of Public Relations

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 Public Relations Tools
Special Events
News
Written Materials
Speeches
Audiovisual
Corporate Identity
Materials
Materials
Public Service
Mobile
Activities
Marketing

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