Advertising, Sales Promotion, and Public RelationsLearning GoalsCase Study Crispin Porter & BoguskyDefinitionAdvertisingSlide 6Slide 7Slide 8Slide 9Slide 10Slide 11Slide 12Slide 13Slide 14Slide 15Sales PromotionSlide 17Slide 18Slide 19Slide 20Slide 21Slide 22Public RelationsSlide 24Slide 25Advertising, Advertising, Sales Promotion, and Sales Promotion, and Public RelationsPublic RelationsChapter 1515 - 2Learning Goals1. Understand the roles of advertising, sales promotion, and public relations in the promotion mix.2. Know the major decisions involved in developing an advertising program.3. Learn how sales promotion campaigns are developed and implemented.4. Learn how companies use public relations to communicate with their publics.15 - 3•Located in Coconut Grove, FL•Winner of several creative awards•Known for guerrilla tactics, unconventional media and holistic marketing strategies•Often suggests changes in the client’s procedures, products and processes to enhance brand image•Clients include Virgin Airline, MINI cars, Ikea furniture, Molson beer, Truth and Burger KingCase Study Crispin Porter & Bogusky15 - 4Definition•AdvertisingAny paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.Goal 1: Understand the roles of advertising, sales promotion and public relations15 - 5Advertising•Signage in ancient times offers evidence of early advertising.•Modern ad spending tops $245 billion in U.S. annually, $498 billion worldwide.•Business firms, not-for-profit, social agencies, and professionals all advertise.Goal 1: Understand the roles of advertising, sales promotion and public relations15 - 6Advertising•Setting objectives•Setting the budget•Developing the advertising strategy•Evaluating advertising campaigns•Advertising objectives can be classified by primary purpose:Inform•Introducing new productsPersuade•Becomes more important as competition increases•Comparative advertisingRemind•Most important for mature productsKey Key Decisions Decisions Goal 2: Know the major decisions involved in developing an advertising program15 - 7Advertising•Setting objectives•Setting the budget•Developing the advertising strategy•Evaluating advertising campaigns•Several factors should be considered when setting the ad budget:Stage in the PLCMarket shareLevel of competitionAd clutterDegree of brand differentiationKey Key Decisions Decisions Goal 2: Know the major decisions involved in developing an advertising program15 - 8Advertising•Setting objectives•Setting the budget•Developing the advertising strategy•Evaluating advertising campaigns•Creative challengesAdvertising clutterTiVo and PVR’s•Creating ad messagesMessage strategy•Creative concept or Big Idea•Advertising appealMessage execution•Many execution styles•Tone, format, illustration, headline, copy•Absolut Ads•Top 10 Jingles•Energizer Bunny•Best SpotsKey Key Decisions Decisions Goal 2: Know the major decisions involved in developing an advertising program15 - 9Creative Execution StylesAdvertising•Slice of Life•Lifestyle•Fantasy•Mood or Image•Musical•Personality Symbol •Technical Expertise•Scientific Evidence•Testimonial Evidence or EndorsementGoal 2: Know the major decisions involved in developing an advertising program15 - 10Advertising•Setting objectives•Setting the budget•Developing the advertising strategy•Evaluating advertising campaigns•Select advertising mediaDecide on level of reach, frequency and impactChoose among the major media types by considering:•Consumer media habits, nature of the product, types of messages, and costs Select specific media vehiclesDecide on media timingKey Key Decisions Decisions Goal 2: Know the major decisions involved in developing an advertising program15 - 11Major Media TypesMajor Media TypesAdvertising•Newspapers•Television•Direct Mail•Radio•Magazines•Outdoor•InternetGoal 2: Know the major decisions involved in developing an advertising program15 - 12Advertising•Setting objectives•Setting the budget•Developing the advertising strategy•Evaluating advertising campaigns•Measuring communications effectsCopy testing•Measuring sales effectCompare past sales with past advertising expendituresExperimentsKey Key Decisions Decisions Goal 2: Know the major decisions involved in developing an advertising program15 - 13Advertising•Organizing the Advertising FunctionSmall vs. large companiesNature of advertising agencies•Advantages of advertising agencies•Consolidation and growth of agencies•Creative boutiquesGoal 2: Know the major decisions involved in developing an advertising program15 - 14Advertising•Advertising to International MarketsStandardizing worldwide advertising•Advantages include lower advertising costs, greater global advertising coordination, and consistent global image•Drawbacks include ignoring differences in culture, demographics, and economic conditionsMost marketers think globally but act locallyGoal 2: Know the major decisions involved in developing an advertising program15 - 15Definition•Sales PromotionSales promotions are short-term incentives to encourage the purchase or sale of a product or service.Goal 3: Learn how sales promotion campaigns are developed and implemented15 - 16Sales Promotion•Sales PromotionsCan be targeted at final buyers, retailers and wholesalers, business customers, and members of the sales force.The use of sales promotions has been growing rapidly.78% are to the trade with 22% to end consumers.Goal 3: Learn how sales promotion campaigns are developed and implemented15 - 17Sales Promotion•Objectives – Consumer Promotions:Increase short-term sales or long-term market shareGenerate product trial•Objectives – Trade Promotions:Obtaining distribution and shelf spaceEncouraging retailers to advertise the brand•Objectives – Sales Force Promotions:Signing up new accountsGoal 3: Learn how sales promotion campaigns are developed and implemented15 - 18Consumer Promotion ToolsSales Promotion•Samples•Coupons•Cash Refunds (Rebates)•Price packs (cents-off deals)•Advertising Specialties•Premiums•Patronage Rewards•Point-of-Purchase Communications•Contests, Games, and SweepstakesGoal 3: Learn how sales promotion campaigns are developed and