Advertising, sales promotion & public relation (principles of marketing)
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This document discusses advertising and public relations. It covers key topics such as defining advertising and its major decisions, including setting objectives, budgets, messages, and evaluating campaigns. Advertising appeals and strategies for selecting media are also examined. Public relations is defined and its major tools discussed, such as special events, news, speeches, and written materials. Companies address advertising and public relations either through internal departments or external agencies.
Advertising, sales promotion & public relation (principles of marketing)
- 1. © Copyright 1999 Prentice Hall 15-115-1 Advertising, Sales Promotion and Public Relations PRINCIPLES OF MARKETING Eighth Edition Philip Kotler and Gary Armstrong chapter 6chapter 6
- 2. © Copyright 1999 Prentice Hall 15-215-2 What is Advertising?What is Advertising? • Any form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. • U.S. advertisers spend in excess of $175 billion each year. • Advertising is used by: – Business firms, –Nonprofit organizations, –Professionals, –Social Agencies.
- 3. © Copyright 1999 Prentice Hall 15-315-3 Major Decisions in AdvertisingMajor Decisions in Advertising Objectives SettingObjectives Setting Budget DecisionsBudget Decisions Message DecisionsMessage Decisions Campaign EvaluationCampaign Evaluation Media DecisionsMedia Decisions
- 4. © Copyright 1999 Prentice Hall 15-415-4 Informative Advertising Build Primary Demand Informative Advertising Build Primary Demand Setting ObjectivesSetting Objectives Persuasive Advertising Build Selective Demand Persuasive Advertising Build Selective Demand Comparison Advertising Compares One Brand to Another Comparison Advertising Compares One Brand to Another Advertising Objectives • Specific Communication Task • Accomplished with a Specific Target Audience • During a Specific Period of Time Reminder Advertising Keeps Consumers Thinking About a Product. Reminder Advertising Keeps Consumers Thinking About a Product.
- 5. © Copyright 1999 Prentice Hall 15-515-5 Setting the Advertising BudgetSetting the Advertising Budget Stage in the Product Life Cycle Stage in the Product Life Cycle Competition and Clutter Competition and Clutter Market Share Market Share Advertising Frequency Advertising Frequency Product Differentiation Product Differentiation Factors in Setting the Advertising Budget Advertising Budget Methods Affordable, Percentage of Sales, Competitive-Parity and Objective-and-Task
- 6. © Copyright 1999 Prentice Hall 15-615-6 Click to add titleClick to add title Plan a Message Strategy General Message to Be Communicated to Customers Plan a Message Strategy General Message to Be Communicated to Customers Advertising Strategy Creating Advertising Messages Advertising Strategy Creating Advertising Messages Develop a Message Focus on Customer Benefits Develop a Message Focus on Customer Benefits Creative Concept “Big Idea” Visualization or Phrase Combination of Both Creative Concept “Big Idea” Visualization or Phrase Combination of Both Advertising Appeals Meaningful Believable Distinctive Advertising Appeals Meaningful Believable Distinctive
- 7. © Copyright 1999 Prentice Hall 15-715-7 Advertising Strategy Selecting Advertising Media Advertising Strategy Selecting Advertising Media Step 1. Decide on Reach, Frequency, and Impact Step 1. Decide on Reach, Frequency, and Impact Step 2. Choosing Among Major Media Types Media Habits of Target Consumers Nature of the Product Type of Message Cost Step 2. Choosing Among Major Media Types Media Habits of Target Consumers Nature of the Product Type of Message Cost Step 3. Selecting Specific Media Vehicles Specific Media Within a Given Type, i.e. Magazines. Must Balance Media Cost Against Media Factors: Audience Quality & Attention, Editorial Quality Step 3. Selecting Specific Media Vehicles Specific Media Within a Given Type, i.e. Magazines. Must Balance Media Cost Against Media Factors: Audience Quality & Attention, Editorial Quality Step 4. Deciding on Media Timing Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing Step 4. Deciding on Media Timing Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing
- 8. © Copyright 1999 Prentice Hall 15-815-8 Advertising EvaluationAdvertising Evaluation Communication Effects Is the Ad Communicating Well? Communication Effects Is the Ad Communicating Well? Advertising Program EvaluationAdvertising Program Evaluation Sales Effects Is the Ad Increasing Sales? Sales Effects Is the Ad Increasing Sales?
- 9. © Copyright 1999 Prentice Hall 15-915-9 Ways to Handle AdvertisingWays to Handle Advertising Sales Departments in Small Companies Sales Departments in Small Companies Advertising Agency Firm that Assists Companies in Planning, Preparing, Implementing and Evaluating Their Advertising Programs. Advertising Agency Firm that Assists Companies in Planning, Preparing, Implementing and Evaluating Their Advertising Programs. Advertising Departments in Larger Companies Advertising Departments in Larger Companies
- 10. © Copyright 1999 Prentice Hall 15-1015-10 International Advertising DecisionsInternational Advertising Decisions Adaptation of Global Advertising Adaptation of Global Advertising Advertising Media Costs & Availability Advertising Media Costs & Availability Regulation of Advertising Practices Regulation of Advertising Practices
- 11. © Copyright 1999 Prentice Hall 15-1115-11 What is Public Relations?What is 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 unfavorable rumors, stories and events. • Major functions are: – Press Relations or Press Agentry – Product Publicity – Public Affairs – Lobbying – Investor Relations –Development
- 12. © Copyright 1999 Prentice Hall 15-1215-12 Special Events Special Events Written Materials Written Materials Corporate Identity Materials Corporate Identity Materials SpeechesSpeeches NewsNews Audiovisual Materials Audiovisual Materials Major Public Relations ToolsMajor Public Relations Tools Public Service Activities Public Service Activities Web SiteWeb Site
Editor's Notes
- #4: Major Decisions in Advertising This CTR corresponds to Figure 15-1 on p. 451 and relates to the material on pp. 451-460. Instructor’s Note: This CTR and Notes provide an overview of advertising decisions. Each decision area is covered in greater detail on subsequent CTRs. Major Decisions in Advertising Setting Objectives. Advertising objectives are specific communications tasks to be accomplished for a specific target audience during a specified time period. Advertising objectives can be to inform (build primary demand), persuade (selective demand), or remind (brand loyalty). Advertising objectives are often linked to specific sales objectives. Budget Decisions. Advertising budgets are set for each product consist with the advertising objectives. The details of budget decisions are covered in greater detail on the following CTR. Message Decisions. Advertisers must construct their messages carefully to reach target markets. The details of message decisions are covered in greater detail on a subsequent CTR. Media Decisions. In selecting media for ads, advertisers must consider the several factors to reach consumer when, how, and how often it takes to reach promotional objectives. The details of media decisions are covered in greater detail on a subsequent CTR. Campaign Evaluation. Measures of communication effects and sales effects should be employed. Discussion Note: You might wish to tell students of the controversy involved in measuring campaign effectiveness. Traditionally, advertisers measured effectiveness in terms of recall or recognition. Management wants a behavioral change in purchases. Marketers who successfully merge the two have a bright career ahead of them.
- #6: Setting the Advertising Budget This CTR relates to the discussion on pp. 452-453. Budget Decisions Advertising budgets are set for each product consist with the advertising objectives. To implement objectives, budgets must be set in consideration of the products position in terms of: Stage in the Product Life Cycle. New product usually require larger advertising budgets to build awareness and induce product trial. Mature brands may have large dollar amounts in their budgets, but are lower in terms of advertising as a ratio of sales. Market Share. High share products need more advertising as a percent of sales than do low-share brands. Competition and Clutter. Highly competitive markets with high spending rivals require more advertising expenditures than other markets. Advertising Frequency. The greater the frequency needed to reach the target consumer, the higher the advertising budget. Product Differentiation . Brands that closely resemble other brands in a product class (like soft drinks) require high advertising budgets to create product differentiation.
- #8: Advertising Strategy Selecting Advertising Media This CTR relates to the discussion on pp. 457-460. Selecting Advertising Media In selecting media for ads, advertisers must consider the factors that will influence reception of the message. Not all such factors are under the control of the marketer. Of those that are, the following concepts are important: Reach . Reach is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time. Frequency . Frequency is a measure of the how many times the average person in the target market is exposed to the message. Media Impact . Impact refers to the qualitative value of a message exposure through a given medium. Media Vehicles . Vehicles are specific media within a general category. Thus, “The Tonight Show” is a media vehicle on television, whereas a single magazine, The Economist , is a media vehicle in magazine print media. Media Timing . Timing involves the how and when of presenting a campaign. Advertisements should support strategic decisions based upon such factors as peak seasons and demand. Also, the pattern of the ads while shown must be considered: Continuity. This schedules ads evenly within a given period. Pulsing. This schedules ads unevenly within a given period.
- #12: Press Relations is an on-going process of establishing and maintaining good relations with the news media reporters and editors to help place newsworthy information about company products or objectives in their vehicles. Product Publicity. Product Publicity seeks news coverage of specific products usually in conjunction with other promotional efforts. Public Affairs/ Investor Relations. Public Affairs and Investor Relations involves creating and managing internal and external communications promoting understanding the of company and its objectives. Counseling of management on public issues may be included in corporate communications functions in some companies. Lobbying. Lobbying involves dealing with legislators and government administrators. Discussion Note: Lobbying has justly earned a bad reputation for the “special interest” favors awarded some companies. But it is also true that a great deal of lobbying is ethical and fair -- a point not typically found in the popular press. Also, federalism is designed precisely so that “special interests” can be taken into consideration. Not all “special interests” are bad for society as a whole. What is Public Relations? This CTR relates to the material on pp. 468-469.
- #13: Major Public Relations Tools This CTR relates to the material on pp. 469-471. Key tools of Public Relations include: News and Speeches. Finding or creating favorable news stories about the company or products. Giving talks at trade association meetings or sales meetings. Special Events. Special Events consist of public service activities sponsored and controlled by public relations in-house. Written and Audiovisual Materials. Materials include written information for reporters, and audio-visual information such as slide, sound programs, and videos on corporate identity. Corporate spokespersons also make public speeches to promote the views important to the company. Public Service Activities. Public Service Activities include contributions of time and money for community projects and programs. Discussion Note: Many companies donate land and equipment to towns and cities for parks and recreational areas as part of PR.