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16 0 Advertising SalesPromotion andPublicRelations Chapter16 16 1 Objectives Understandtherolesofadvertising salespromotion andpublicrelationsinthepromotionmix Knowthemajordecisionsinvolvedindevelopinganadvertisingprogram 16 2 Objectives Learnhowsalespromotioncampaignsaredevelopedandimplemented Learnhowcompaniesusepublicrelationstocommunicatewiththeirpublics 16 3 Afewyearsago only13 ofU S recognizedAFLACOldads warmandfuzzy similartootherinsuranceadsGoal breakthroughadvertisingclutter 1999 AFLACdevelopedthe duck campaigntoenhancebrandawarenessIncrediblysuccessful namerecognitionisnow91 salesgrowthof30 eachyearcampaignhasrun AFLAC CaseStudy 16 4 Definition AdvertisingAnypaidformofnonpersonalpresentationandpromotionofideas goods orservicesbyanidentifiedsponsor 16 5 Signageinancienttimesoffersevidenceofearlyadvertising Modernadspendingtops 231billioninU S annually 500billionworldwide Businessfirms not for profit socialagencies andprofessionalsalladvertise Advertising 16 6 Advertising SettingobjectivesSettingthebudgetDevelopingtheadvertisingstrategyEvaluatingadvertisingcampaigns Advertisingobjectivescanbeclassifiedbyprimarypurpose InformIntroducingnewproductsPersuadeBecomesmoreimportantascompetitionincreasesComparativeadvertisingRemindMostimportantformatureproducts KeyDecisions 16 7 Advertising SettingobjectivesSettingthebudgetDevelopingtheadvertisingstrategyEvaluatingadvertisingcampaigns Methodsofbudgetsettingwerelistedinchapter15Severalfactorsshouldbeconsideredwhensettingtheadbudget StageinthePLCMarketshareLevelofcompetitionAdclutterDegreeofbranddifferentiation KeyDecisions 16 8 Advertising SettingobjectivesSettingthebudgetDevelopingtheadvertisingstrategyEvaluatingadvertisingcampaigns CreativechallengesMediafragmentationSoaringmediacostsAdvertisingclutterCreatingadmessagesMessagestrategyCreativeconceptAdvertisingappealMessageexecutionManyexecutionstylesTone format illustration headline copy KeyDecisions 16 9 CreativeExecutionStyles Advertising SliceofLifeLifestyleFantasyMoodorImage MusicalPersonalitySymbolTechnicalExpertiseScientificEvidence TestimonialEvidenceorEndorsement 16 10 Advertising SettingobjectivesSettingthebudgetDevelopingtheadvertisingstrategyEvaluatingadvertisingcampaigns SelectadvertisingmediaDecideonlevelofreach frequencyandimpactChooseamongthemajormediatypesbyconsidering Consumermediahabits natureoftheproduct typesofmessages andcostsSelectspecificmediavehiclesDecideonmediatiming KeyDecisions 16 11 MajorMediaTypes Advertising NewspapersTelevisionDirectMail RadioMagazinesOutdoor Internet 16 12 Advertising SettingobjectivesSettingthebudgetDevelopingtheadvertisingstrategyEvaluatingadvertisingcampaigns MeasuringcommunicationseffectsCopytestingConsumerrecallProductawarenessProductknowledgeProductpreferenceMeasuringsaleseffectPastvs currentsalescomparisonExperimentation KeyDecisions 16 13 OrganizingtheAdvertisingFunctionSmallvs largecompaniesNatureofadvertisingagenciesAdvantagesofadvertisingagenciesDepartmentsCompensationChangesinagencyservices Advertising 16 14 AdvertisingtoInternationalMarketsStandardizingworldwideadvertisingAdvantagesincludeloweradvertisingcosts greaterglobaladvertisingcoordination andconsistentglobalimageDrawbacksincludeignoringdifferencesinculture demographics andeconomicconditions Mostmarketersthinkgloballybutactlocally Advertising 16 15 SalesPromotionSalesPromotionsareshort termincentivestoencouragethepurchaseorsaleofaproductorservice Definition 16 16 SalesPromotionsCanbetargetedatfinalbuyers retailersandwholesalers businesscustomers andmembersofthesalesforce Theuseofsalespromotionshasbeengrowingrapidly SalesPromotion 16 17 Objectives ConsumerPromotions Increaseshort termsalesGenerateproducttrialObjectives TradePromotions ObtainingdistributionandshelfspaceEncouragingretailerstoadvertisethebrandObjectives SalesForcePromotions Signingupnewaccounts SalesPromotion 16 18 ConsumerPromotionTools SalesPromotion SamplesCashRefunds Rebates Pricepacks cents offdeals AdvertisingSpecialties PremiumsPatronageRewardsPoint of PurchaseCommunicationsContests Games andSweepstakes 16 19 TradePromotionToolsDiscounts alsocalledprice off off list andoff invoice AllowancesAdvertisingallowancesDisplayallowancesFreegoodsPushmoneySpecialtyadvertisingitems SalesPromotion 16 20 BusinessPromotionToolsIncludesmanyofthesametoolsusedinconsumerandtradepromotionsTwoadditionaltools ConventionsandtradeshowsSalescontests SalesPromotion 16 21 KeyDecisionsWhenDevelopingtheSalesPromotionProgram SizeoftheincentiveConditionsforparticipationPromotionanddistributionoftheactualsalespromotionprogramLengthofthepromotionalprogramEvaluationSurveysandexperimentscanbeused SalesPromotion 16 22 PublicRelations Buildinggoodrelationswiththecompany svariouspublicsbyobtainingfavorablepublicity buildingupagoodcorporateimage andhandlingorheadingoffunfavorablerumors stories andevents Definition 16 23 PublicRelationsFunctions PublicRelations PressRelationsProductPublicityPublicAffairs LobbyingInvestorRelationsDevelopment 16 24 RoleandImpactofPublicRelationsAdvantages StrongimpactonpublicawarenessatlowercostthanadvertisingGreatercredibilitythanadver
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