Advertising,SalesPromotion,andPublicRelationsChapter1616-1Objectives•Understandtherolesofadvertising,salespromotion,andpublicrelationsinthepromotionmix.•Knowthemajordecisionsinvolvedindevelopinganadvertisingprogram.16-2Objectives•Learnhowsalespromotioncampaignsaredevelopedandimplemented.•Learnhowcompaniesusepublicrelationstocommunicatewiththeirpublics.16-3•Afewyearsago,only13%ofU.S.recognizedAFLAC•Oldads:“warmandfuzzy”similartootherinsuranceads•Goal:breakthroughadvertisingclutter•1999:AFLACdevelopedthe“duck”campaigntoenhancebrandawareness•Incrediblysuccessful:namerecognitionisnow91%;salesgrowthof30%eachyearcampaignhasrunAFLACCaseStudy16-4Definition•AdvertisingAnypaidformofnonpersonalpresentationandpromotionofideas,goods,orservicesbyanidentifiedsponsor.16-5•Signageinancienttimesoffersevidenceofearlyadvertising.•Modernadspendingtops$231billioninU.S.annually,$500billionworldwide.•Businessfirms,not-for-profit,socialagencies,andprofessionalsalladvertise.Advertising16-6Advertising•Settingobjectives•Settingthebudget•Developingtheadvertisingstrategy•Evaluatingadvertisingcampaigns•Advertisingobjectivescanbeclassifiedbyprimarypurpose:InformIntroducingnewproductsPersuadeBecomesmoreimportantascompetitionincreasesComparativeadvertisingRemindMostimportantformatureproductsKeyDecisions16-7Advertising•Settingobjectives•Settingthebudget•Developingtheadvertisingstrategy•Evaluatingadvertisingcampaigns•Methodsofbudgetsettingwerelistedinchapter15•Severalfactorsshouldbeconsideredwhensettingtheadbudget:StageinthePLCMarketshareLevelofcompetitionAdclutterDegreeofbranddifferentiationKeyDecisions16-8Advertising•Settingobjectives•Settingthebudget•Developingtheadvertisingstrategy•Evaluatingadvertisingcampaigns•CreativechallengesMediafragmentationSoaringmediacostsAdvertisingclutter•CreatingadmessagesMessagestrategyCreativeconceptAdvertisingappealMessageexecutionManyexecutionstylesTone,format,illustration,headline,copyKeyDecisions16-9CreativeExecutionStylesAdvertising•SliceofLife•Lifestyle•Fantasy•MoodorImage•Musical•PersonalitySymbol•TechnicalExpertise•ScientificEvidence•TestimonialEvidenceorEndorsement16-10Advertising•Settingobjectives•Settingthebudget•Developingtheadvertisingstrategy•Evaluatingadvertisingcampaigns•SelectadvertisingmediaDecideonlevelofreach,frequencyandimpactChooseamongthemajormediatypesbyconsidering:Consumermediahabits,natureoftheproduct,typesofmessages,andcostsSelectspecificmediavehiclesDecideonmediatimingKeyDecisions16-11MajorMediaTypesAdvertising•Newspapers•Television•DirectMail•Radio•Magazines•Outdoor•Internet16-12Advertising•Settingobjectives•Settingthebudget•Developingtheadvertisingstrategy•Evaluatingadvertisingcampaigns•MeasuringcommunicationseffectsCopytestingConsumerrecallProductawarenessProductknowledgeProductpreference•MeasuringsaleseffectPastvs.currentsalescomparisonExperimentationKeyDecisions16-13•OrganizingtheAdvertisingFunctionSmallvs.largecompaniesNatureofadvertisingagenciesAdvantagesofadvertisingagenciesDepartmentsCompensationChangesinagencyservicesAdvertising16-14•AdvertisingtoInternationalMarketsStandardizingworldwideadvertisingAdvantagesincludeloweradvertisingcosts,greaterglobaladvertisingcoordination,andconsistentglobalimageDrawbacksincludeignoringdifferencesinculture,demographics,andeconomicconditions.MostmarketersthinkgloballybutactlocallyAdvertising16-15•SalesPromotionSalesPromotionsareshort-termincentivestoencouragethepurchaseorsaleofaproductorservice.Definition16-16•SalesPromotionsCanbetargetedatfinalbuyers,retailersandwholesalers,businesscustomers,andmembersofthesalesforce.Theuseofsalespromotionshasbeengrowingrapidly.SalesPromotion16-17•Objectives--ConsumerPromotions:Increaseshort-termsalesGenerateproducttrial•Objectives--TradePromotions:ObtainingdistributionandshelfspaceEncouragingretailerstoadvertisethebrand•Objectives--SalesForcePromotions:SigningupnewaccountsSalesPromotion16-18ConsumerPromotionToolsSalesPromotion•Samples•CashRefunds(Rebates)•Pricepacks(cents-offdeals)•AdvertisingSpecialties•Premiums•PatronageRewards•Point-of-PurchaseCommunications•Contests,Games,andSweepstakes16-19•TradePromotionToolsDiscounts(alsocalledprice-off,off-list,andoff-invoice)AllowancesAdvertisingallowancesDisplayallowancesFreegoodsPushmoneySpecialtyadvertisingitemsSalesPromotion16-20•BusinessPromotionToolsIncludesmanyofthesametoolsusedinconsumerandtradepromotionsTwoadditionaltools:ConventionsandtradeshowsSalescontestsSalesPromotion16-21•KeyDecisionsWhenDevelopingtheSalesPromotionProgram:SizeoftheincentiveConditionsforparticipationPromotionanddistributionoftheactualsalespromotionprogramLengthofthepromotionalprogramEvaluationSurveysandexperimentscanbeusedSalesPromotion16-22•PublicRelations:Buildinggoodrelationswiththecompany’svariouspublicsbyobtainingfavorablepublicity,buildingupagoodcorporateimage,andhandlingorheadingoffunfavorablerumors,stories,andevents.Definition16-23PublicRelationsFunctionsPublicRelations•PressRelations•ProductPublicity•P