Advertising, Sales Promotion, and Public RelationsObjectivesSlide 3Slide 3DefinitionAdvertisingSlide 7Slide 7Slide 9Slide 9Slide 10Slide 12Slide 13Slide 14Slide 14Slide 15Slide 17Slide 17Slide 18Slide 20Slide 20Slide 21Slide 23Slide 24Slide 25Slide 26Slide 26Slide 28Slide 29Sales PromotionSlide 31Slide 32Slide 32Slide 34Slide 35Slide 36Slide 37Slide 38Slide 39Public RelationsSlide 41Slide 42Slide 42Slide 43Slide 44Advertising, Sales Advertising, Sales Promotion, and Promotion, and Public RelationsPublic RelationsChapter 16Chapter 1616- 2ObjectivesUnderstand the roles of Understand the roles of advertising, sales promotion, advertising, sales promotion, and public relations in the and public relations in the promotion mix.promotion mix.Know the major decisions Know the major decisions involved in developing an involved in developing an advertising program.advertising program.16- 3ObjectivesLearn how sales promotion Learn how sales promotion campaigns are developed and campaigns are developed and implemented.implemented.Learn how companies use public Learn how companies use public relations to communicate with relations to communicate with their publics.their publics.16- 4A few years ago, A few years ago, only 13% of U.S. only 13% of U.S. recognized AFLACrecognized AFLACOld ads: “warm and Old ads: “warm and fuzzy” similar to fuzzy” similar to other insurance adsother insurance adsGoal: break through Goal: break through advertising clutteradvertising clutter1999: AFLAC developed 1999: AFLAC developed the “duck” campaign to the “duck” campaign to enhance brand enhance brand awarenessawarenessIncredibly successful: Incredibly successful: name recognition is now name recognition is now 91%; sales growth of 91%; sales growth of 30% each year 30% each year campaign has runcampaign has runcAFLACAFLAC16- 5DefinitionAdvertisingAdvertisingAny paid form of Any paid form of nonpersonal nonpersonal presentation and presentation and promotion of ideas, promotion of ideas, goods, or services goods, or services by an identified by an identified sponsor.sponsor.16- 6Signage in ancient times offers Signage in ancient times offers evidence of early advertising.evidence of early advertising.Modern ad spending Modern ad spending tops $231 billion tops $231 billion in U.S. annually, in U.S. annually, $500 billion $500 billion worldwide.worldwide.Advertising16- 7Business firms, Business firms, not-for-profit firms, not-for-profit firms, social agencies, social agencies, and professionals and professionals such as doctors such as doctors and lawyers all and lawyers all advertise.advertise.Advertising16- 8Figure 16-1: Major Advertising Decisions16- 9AdvertisingAdvertising objectives can Advertising objectives can be classified by primary be classified by primary purpose:purpose:InformInformIntroducing new Introducing new productsproductsPersuadePersuadeBecomes more important Becomes more important as competition increasesas competition increasesComparative adsComparative adsRemindRemindMost important for Most important for mature productsmature productsSetting objectivesSetting objectivesSetting the budgetSetting the budgetDeveloping the Developing the advertising advertising strategystrategyEvaluating Evaluating advertising advertising campaignscampaignsKey Decisions:Key Decisions:16- 10Comparative advertising can be extremely persuasive16- 11Do these ads attempt to inform, persuade, or remind? How effective are these ads?16- 12AdvertisingMethods of budget Methods of budget setting were listed in setting were listed in chapter 15chapter 15Several factors should be Several factors should be considered when setting considered when setting the ad budget:the ad budget:Stage in the PLCStage in the PLCMarket shareMarket shareLevel of competitionLevel of competitionAd clutterAd clutterDegree of brand Degree of brand differentiationdifferentiationSetting objectivesSetting objectivesSetting the budgetSetting the budgetDeveloping the Developing the advertising advertising strategystrategyEvaluating Evaluating advertising advertising campaignscampaignsKey Decisions:Key Decisions:16- 13AdvertisingCreative challengesCreative challengesMedia fragmentationMedia fragmentationSoaring media costsSoaring media costsAdvertising clutterAdvertising clutterCreating ad messagesCreating ad messagesMessage strategyMessage strategyCreative conceptCreative conceptAdvertising appealAdvertising appealMessage executionMessage executionMany execution stylesMany execution stylesTone, format, illustration, Tone, format, illustration, headline, copyheadline, copySetting objectivesSetting objectivesSetting the budgetSetting the budgetDeveloping the Developing the advertising advertising strategystrategyEvaluating Evaluating advertising advertising campaignscampaignsKey Decisions:Key Decisions:16- 14AdvertisingCreative Execution StylesCreative Execution StylesSlice of LifeSlice of LifeLifestyleLifestyleFantasyFantasyMood or ImageMood or ImageTestimonial Evidence Testimonial Evidence or Endorsementor EndorsementMusicalMusicalPersonality Personality Symbol Symbol Technical Technical ExpertiseExpertiseScientific Scientific EvidenceEvidence16- 15When does advertising When does advertising pass the boundaries of pass the boundaries of good taste? Can you think good taste? Can you think of some examples?of some examples?Should marketers be Should marketers be concerned about the concerned about the opinions of anyone other opinions of anyone other than the target market? than the target market? Why or why not?Why or why not? Discussion Question16- 16Celebrity endorsers may be movie stars, politicians, sports stars, or other public personalities Testimonials feature ordinary people who talk about their product experiences16- 17AdvertisingSelect advertising mediaSelect advertising mediaDecide on level of reach, Decide on level of reach, frequency and impactfrequency and impactChoose among the major Choose among the major media types by media types by considering:considering:Consumer media Consumer media habits, nature of the habits, nature of the product, types of product, types of messages, and costs messages, and costs Select specific media Select specific media vehiclesvehiclesDecide on media timingDecide on media timingSetting objectivesSetting objectivesSetting the budgetSetting the budgetDeveloping the Developing the advertising