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PRINCIPLES OF MARKETING Eighth Edition Philip Kotler and Gary Armstrong
Chapter 15 Advertising, Sales Promotion and Public Relations Copyright 1999 Prentice Hall
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.
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Major Decisions in Advertising Objectives Setting
Budget Decisions
Message Decisions
Media Decisions
Campaign Evaluation Copyright 1999 Prentice Hall
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Setting Objectives
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Advertising Objectives
• Specific Communication Task • Accomplished with a Specific Target Audience • During a Specific Period of Time
Informative Advertising
Persuasive Advertising
Comparison Advertising
Reminder Advertising
Build Primary Demand
Compares One Brand to Another
Build Selective Demand
Keeps Consumers Thinking About a Product.
Copyright 1999 Prentice Hall
Setting the Advertising Budget
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Advertising Budget Methods Affordable, Percentage of Sales, CompetitiveParity and ObjectiveandTask Product Differentiation
Advertising Frequency
Stage in the Product Life Cycle
Factors in Setting the Advertising Budget
Competition and Clutter Copyright 1999 Prentice Hall
Market Share
Click to add title Advertising Strategy
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Creating Advertising Messages Plan a Message Strategy
General Message to Be Communicated to Customers
Develop a Message Focus on Customer Benefits
Creative Concept “Big Idea”
Visualization or Phrase Combination of Both
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Advertising Appeals Meaningful Believable Distinctive
Advertising Strategy
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Message Execution
Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest.
Testimonial Evidence Scientific Evidence Technical Expertise
Slice of Life
Typical Message Execution Styles
Personality Symbol
Lifestyle Fantasy Mood or Image
Musical Copyright 1999 Prentice Hall
Advertising Strategy
Selecting Advertising Media 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 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 Copyright 1999 Prentice Hall
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Advertising Evaluation
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Advertising Program Evaluation
Communication Effects
Sales Effects
Is the Ad Communicating Well?
Is the Ad Increasing Sales?
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Ways to Handle Advertising
Sales Departments in Small Companies
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Advertising Departments in Larger Companies
Advertising Agency Firm that Assists Companies in Planning, Preparing, Implementing and Evaluating Their Advertising Programs.
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International Advertising Decisions Adaptation of Global Advertising
Advertising Media Costs & Availability Regulation of Advertising Practices
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What is Sales Promotion?
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• Mass communication technique that offers shortterm incentives to encourage purchase or sales of a product or service. • Rapid growth in the industry has been achieved because: – Product managers are facing more pressure to increase their current sales, – Companies face more competition, – Advertising efficiency has declined, – Consumers have become more deal oriented. Copyright 1999 Prentice Hall
Consumer Promotion Tools
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ShortTerm Incentives to Encourage Purchase or Sales of a Product or Service. ConsumerPromotion Objectives Entice Consumers to Try a New Product Lure Customers Away From Competitors’ Products Get Consumers to “Load Up’ on a Mature Product Hold & Reward Loyal Customers Consumer Relationship Building
ConsumerPromotion Tools Samples Coupons Cash Refunds Price Packs Premiums
Advertising Specialties Patronage Patronage Rewards Rewards Contests Sweepstakes Games
PointofPurchase Displays Copyright 1999 Prentice Hall
Trade Promotion Tools
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ShortTerm Incentives That are Directed to Retailers and Wholesalers. TradePromotion Tools
TradePromotion Objectives Persuade Retailers or Wholesalers to Carry a Brand
PriceOffs
Premiums
Give a Brand Shelf Space
Allowances
Promote a Brand in Advertising
BuyBack Guarantees
Patronage Displays Rewards
Push a Brand to Consumers
Free Goods Contests
Copyright 1999 Prentice Hall
Discounts Push Money Specialty Advertising Items
Business Promotion Tools
ShortTerm Incentives That are Directed to Industrial Customers.
BusinessPromotion Objectives
BusinessPromotion Tools
Generate Business Leads
Conventions
Stimulate Purchases
Trade Shows
Reward Customers
Sales Contests
Motivate Salespeople
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Developing the Sales Promotion Program Decide on the Size of the Incentive Set Conditions for Participation Determine How to Promote and Distribute the Promotion Program Determine the Length of the Program Evaluate the Program
Copyright 1999 Prentice Hall
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What is Public Relations?
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• 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 Copyright 1999 Prentice Hall
Major Public Relations Tools Public Service Activities
Web Site News
Corporate Identity Materials
Audiovisual Materials
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Speeches
Special Events Written Materials Copyright 1999 Prentice Hall
Click to add title Major Public Relations Decisions
Setting Public Relations Objectives Choosing the Public Relations Messages and Vehicles Implementing the Public Relations Plan
Evaluating Public Relations Results
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