Chapter 19: Advertising, Public Relations, and Sales Promotions

advertising

A paid form of communication delivered through media from an identifiable source about an organization, product, service, or idea designed to persuade the receiver

7 Steps in Planning and Executive an Ad Campaign

1. Identify target audience

2. Set advertising objectives

3. Determine the advertising budget

4. Convey the message

5. Evaluate and select media

6. Create advertisements

7. Assess impact using marketing metrics

Step 1: Identify Target Audience

Firms conduct research to identify target audience, then use the information to set the tone and select the media they will use

Step 2: Set Advertising Objectives

The objectives of an ad campaign are derived from the overall objectives of the marketing program

Pull strategy for consumers; push strategy for sellers

advertising plan

A subsection of the firm’s overall marketing plan that explicitly analyzes the marketing and advertising situation, identifies the objectives of the ad campaign, and indicates how the firm can determine whether the campaign was successful

pull strategy

Strategy in which the goal is to get consumers to pull the product through the marketing channel by demanding it

push strategy

Strategy designed to increase demand by motivating sellers—wholesalers, distributors, or salespeople—to highlight the product over competitors and push the product to consumers

3 Objectives of Advertising

1. Inform

2. Persuade

3. Remind

informative advertising

Communication used to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase

persuasive advertising

Communication used to motivate consumers to take action

reminder advertising

Communication used to remind consumers of a product or to prompt repurchases, especially for products in the maturity stage of their life cycle

product-focused advertisements

Advertisements used to inform, persuade, or remind consumers about a specific product or service

institutional advertisement

Type of advertising that promotes a company, corporation, business, institution, or organization; not intended to sell a particular product or service

public service advertising (PSA)

Advertising that focuses on public welfare and is generally sponsored by nonprofit institutions, civic groups, religious organizations, or political groups

social marketing

The content distributed through online and mobile technologies to facilitate interpersonal interactions

Step 3: Determine the Advertising Budget

Firms must consider:

The role that advertising plays in its overall promotional objectives

Expenditures vary over the course of the product life cycle

Nature of the market and the product influence the size of budget

Step 4: Convey the Message

Marketers determine what they want to convey about the product or service with a key message and an appeal 

Often uses a unique selling proposition (USP)

unique selling proposition (USP)

A strategy of differentiating a product by communicating its unique attributes in the entire advertising campaign

informational appeal

Helps consumers make purchase decisions by offering factual information

emotional appeal

Aims to satisfy consumers’ emotional desires rather than their utilitarian needs

Step 5: Evaluate and Select Media

Firms must engage in media planning to select the media mix that will deliver a clear, consistent, and compelling message to the intended audience

media planning

The process of evaluating and selecting the media mix that will deliver a clear, consistent, compelling message to the intended audience

media mix

The combination of the media used and the frequency of advertising in each medium

media buy

The actual purchase of airtime or print pages

mass media

Channels ideal for reaching large, anonymous audiences; includes billboards, newspapers, magazines, radio, and television

niche media

Channels that are more focused and used to reach narrower segments, often with unique demographic characteristics or interests

advertising schedule

The specification of the timing and duration of advertising

continuous advertising schedule

Runs steadily throughout the year and is suited to products and services that are consumed continually at relatively steady rates that require persuasive or reminder advertising

flighting advertising schedule

Implemented in spurts, with periods of heavy advertising followed by periods of no advertising for products whose demand fluctuates

pulsing advertising schedule

Combines the continuous and flighting schedules by maintaining a base level of advertising but increasing intensity during certain periods

Step 6: Create Advertisements

After the advertiser has decided on the message, type of ad, and appeal, they create the advertisement by creatively translating the message and appeal into words, pictures, colors, and/or music

headline

The large type in an ad that is designed to draw attention

subhead

A smaller headline that provides a great deal of information through short and simple words

body copy

The main text portion of an ad

brand elements

Characteristics that identify the sponsor of a specific ad

Step 7: Assess Impact Using Marketing Metrics

The effectiveness of an advertising campaign must be assessed before, during, and after the campaign has run using pretesting, tracking, and posttesting

pretesting

Assessments performed before an ad campaign is implemented to ensure that the various elements are working in an integrated fashion and doing what they are intended to do

tracking

Assessments that monitor key indicators, such as daily or weekly sales volume, while the advertisement is running to identify any problems with the message or medium

posttesting

The evaluation of an IMC campaign’s impact after it has been implemented

public relations (PR)

Managing communication and relationships to achieve the objectives of building and maintaining a positive image of the firm, handling unfavorable stories and events, and maintaining positive relationships with the media

cause-related marketing

Commercial activity in which businesses and charities form a partnership to market an image, product, or service for their mutual benefit

event sponsorship

When corporations support various activities (financially or otherwise) usually in the cultural or sports and entertainment sectors

Elements of a Public Relations Toolkit

Print, broadcast, Internet, and out of home media

print media

Informs stakeholders and creates greater awareness around the brand

ex: press release, newsletters, annual reports

broadcast media

Creates awareness of causes brand supports and informs stakeholders of activities the brand is engaging in

ex: PSAs, YouTube videos

Internet media

Websites contain similar functions as print and broadcast media; email directs PR efforts to specific groups

ex: websites, email campaigns, social media sites

out of home media

Allows the brand to inform stakeholders and garner greater awareness

ex: billboards, speech conferences, event appearances

sales promotions

Special incentives or excitement-building programs that encourage the purchase of a product or service

Types of Sales Promotions

Coupons, deals, premiums, contests, sweepstakes, samples, loyalty programs, POP displays, rebates, and product placement

coupon

Offers a discount on the price of specific items when the items are purchased and is used to stimulate demand

deal

Short-term price reduction that can take several forms, such as a featured price, a reduced price, or BOGO

premium

An item offered for free or at a bargain price to reward some type of behavior, such as buying, sampling, or testing

contest

A brand-sponsored competition that requires some form of skill or effort

sweepstake

A form of sales promotion that offers prizes based on a chance drawing of entrants’ names

sampling

Offers potential customers the opportunity to try a product or service before they make a buying decision

loyalty program

Specifically designed to retain customers by offering premiums or other incentives to those who make multiple purchases over time

point-of-purchase (POP) display

A merchandise display located at the point of purchase, such as the checkout counter

product placement

Inclusion of a product in nontraditional situations, such as a TV or movie scene