7 advertising & public relations

ADVERTISING,SALESPROMOTION,ANDPUBLICRELATIONSContents•Advertising•SalesPromotion•PublicRelationsAdvertising(1)Advertising:Anypaidformofnonpersonalpresentationandpromotionofideas,goods,orservicesbyanidentifiessponsor.ObjectivessettingCommunicationobjectivesSalesobjectivesBudgetdecisionsAffordableapproachPercentofsalesCompetitiveparityObjectiveandtaskMessagedecisionsMessagestrategyMessageexecutionMediadecisionsReach,frequency,impactMajormediatypesSpecificmediavehiclesMediatimingCampaignevaluationCommunicationimpactSalesimpactFigure14-1MajordecisionsinadvertisingAdvertising(2)RandCompanyTotalU.S.advertising(million)TotalU.S.sales(million)Advertisingasapercentofsales1Procter&Gamble$2,690$16,21316.62PhilipMorris$2,413$40,8785.93GeneralMotors$1,929$122,3871.64Ford$1,186$75,6611.35Sears$1,134$54,5596AT&T$1,103$67,7691.67PepsiCo$1,097$20,2465.48Chrysler$972$45,6552.19WaltDisney$935$7,69812.210Johnson&Johnson$934$7,81211.9Source:Reprintedwithpermissionfrom“100LeaddingNationalAdvertisings,”AdvertisingAge,September27,1995.Table14-1Toptennationaladvertising•Settingobjectives•Settingtheadvertisingbudget•Advertisingstrategy•Advertisingevaluation•Organizingforadvertising•InternationaladvertisingdecisionsAdvertising(3)MajorDecisionsinAdvertising(1)------SettingObjectives(1)Advertisingobjective:Aspecificcommunicationtasktobeaccomplishedwithaspecifictargetaudienceduringaspecificperiodoftime.Informationadvertising:Advertisingusedtoinformconsumersaboutanewproductorfeatureandtobuildprimarydemand.Persuasiveadvertising:Advertisingusedtobuildselectivedemandforabrandbypersuadingconsumersthatitoffersthebestqualityfortheirmoney.Comparisonadvertising:Advertisingthatcomparesonebranddirectlyorindirectlywithoneormoreotherbrands.Reminderadvertising:Advertisingusedtokeepconsumersthinkingaboutaproduct.MajorDecisionsinAdvertising(2)------SettingObjectives(2)Table14-2PossibleadvertisingobjectivesInformationadvertisingTellingthemarketaboutanewproductSuggestingnewusesforaproductInformingthemarketofapricechangeExplaininghowtheproductworksDescribingavailableservicesCorrectingfalseimpressionsReducingconsumer’sfearsBuildingacompanyimagePersuasiveadvertisingBuildingbrandpreferenceEncouragingswitchingtoyourbrandChangingcustomer’sperceptionofproductattributesPersuadingcustomertopurchasenowPersuadingcustomertoreceiveasalescallReminderadvertisingRemindingconsumerthattheproductmaybeneededinthenearfutureRemindingconsumerwheretobuyitKeepingitincustomer’smindduringoff-seasonsMaintainingitstop-of-mindawareness•Creatingtheadvertisingmessage-Thechangingmessageenvironment-Messagestrategy-Messageexecution•Selectingadvertisingmedia-Choosingamongmajormediatypes-DecidingonmediatimingMajorDecisionsinAdvertising(3)------Advertisingstrategy(1)MajorDecisionsinAdvertising(4)------Advertisingstrategy(2)Table14-3ProfilesofmajormediatypesMediumAdvantagesLimitationsNewspapersFlexibility;timeliness;goodlocal;marketcoverage;broadacceptability;highbelievabilityShortlife;poorreproductionquality;smallpass-alongaudienceTelevisionGoodmassmarketcoverage;lowcostperexposure;combinessight,sound,andmotion;appealingtothesensesHighabsolutecosts;highclutter;fleetingexposure;lessaudienceselectivityDirectmailHighaudienceselectivity;flexibility;noadcompetitionwithinthesamemedium;allowspersonalizationRelativelyhighcostperexposure;“junkmail”imageRadioGoodlocalacceptance,highgeographicanddemographicselectivity;lowcostAudioonly,fleetingexposure;lowattention(“thehalf-heard”medium);fragmentedaudiencesMagazinesHighgeographicanddemographicselectivity;credibilityandprestige;high-qualityreproduction;longlifeandgoodpass-alongreadershipLongadpurchaseleadtime;highcost;noguaranteeofpositionOutdoorFlexibility;highrepeatexposure;lowcost;lowmessagecompetition;goodpositionselectivityLittleaudienceselectivity;creativelimitationsAdvertisingagency:Amarketingserviceorganizationthatassistsothercompaniesintheplanning,creation,andimplementationoftheiradvertisingprograms.MajorDecisionsinAdvertising(5)------OrganizingforadvertisingSalesPromotion•RapidGrowthofSalesPromotion•SettingSales-PromotionObjectives•SelectingSales-PromotionTools•DevelopingtheSales-PromotionProgramSalespromotion:Short-termincentivestoencouragepurchaseorsalesofaproductorservice.•Consumer-promotiontools-samples-coupons-cashrefundoffers(orrebates)-pricepacks-premiums-advertisingspecialties-patronagerewards-contests,sweepstakes,andgames-point-of-purchase(POP)promotion•Trade-promotiontools-discount-allowance•Business-promotiontools-conventionsandtradeshows-salescontestsSalesPromotion------SelectingSales-PromotionToolsConsumer-promotiontools(1)△Samples:Offerstoconsumersofatrialamountofaproduct.△Coupons:Certificatesthatgivebuyersasavingwhentheypurchaseaspecifiedproduct.△Cashrefundoffers(rebates):Offerstorefundpartofthepurchasepriceofaproducttoconsumerswhosendaproofofpurchasetothemanufacturer.△Pricepacks(cents-offdeals):Reducedpricesthataremarkedbytheproducerdirectlyonthelabelorpackage.△Premiums:Goodsofferedeitherfreeoratlowcostasanincentivetobuyaproduct