Chapter 17 MKT120 Advertising, PR & Sales
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Chapter 17 MKT120 Advertising, PR & Sales
- 1. ADVERTISING, PUBLIC RELATIONS, AND SALES PROMOTIONS M marketing 17 GREWAL / LEVY McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
- 2. Learning Objectives LEARNING OBJECTIVES How do firms plan advertising campaigns? Why do firms advertise and engage in public relations What appeals do advertisers use? How do firms determine which media to use? What legal and ethical issues are of concern to advertisers? Why do firms integrate public relations into their IMC strategy? How do sales promotions supplement a firm’s IMC strategy? 17-2
- 3. Steps in Planning an Ad Campaign Advertising Age Website 17-3
- 4. Set Advertising Objectives Pull strategy Pull strategy Push strategy Push strategy 17-4
- 5. Advertising Objectives 17-5
- 6. Designing an ad for a delicate topic for parents and kids 17-6
- 7. Museum of Modern Art, NY 17-7
- 8. Informative Advertising Communicates to create and build brand awareness Retailers aim to push the consumer through the buying cycle to final purchase Often used to inform customers about upcoming sales events or arrival of new merchandise 17-8
- 9. Persuasive Advertising Generally occurs in the growth and early maturity stages of the Product Life Cycle when competition is most intense May be used to reposition an established brand in the later stage of the Product Life Cycle 17-9
- 10. Reminder Advertising Communication used to remind or prompt repurchases Occurs after the products have gained market acceptance 17-10
- 11. Focus of Advertisements Product-focused Product-focused Institutional Institutional advertisements advertisements advertisements advertisements 17-11
- 12. Social Marketing 17-12
- 13. The AdCouncil 17-13
- 14. The TRUTH Takes Hold How to get young consumers to quit smoking? Part of the tobacco settlement: “raising generation that would be smoke free” TRUTH uses a hard-hitting media campaign In your face ads TRUTH Campaign Commercial 17-14
- 15. Convey the Message Unique selling proposition (USP) Verizon…….It’s the Network Nokia…..Connecting People 17-15
- 16. Creative Advertisements 17-16
- 17. Symbols Help to Convey Messages 17-17
- 18. Evaluate and Select Media 17-18
- 19. Mass and Niche Media Mass media reach Mass media reach large anonymous large anonymous audience audience Niche media reach a smaller Niche media reach a smaller more targeted audience more targeted audience 17-19
- 20. Viral Marketing Campaign 17-20
- 21. Determining Advertising Budget Considerations: − Role that advertising plays in their attempt to meet their overall promotional objectives − Expenditures vary over the course of the Product Life Cycle − Nature of the market and the product influence the size of the budget 17-21
- 22. Choosing the Right Medium 17-22
- 23. Create Advertisements 17-23
- 24. 17-24
- 25. Assess Impact 17-25
- 26. Puffery 17-26
- 27. Public Relations TOMS Shoes Website 17-27
- 28. Regulatory and Ethical Issues in Advertising 17-28
- 29. Sales Promotions Can be targeted at either the end user consumers or channel members Can be used in either push or pull strategies 17-29
- 30. Types of Sales Promotion 17-30
- 31. Sales Promotion 17-31
- 32. Using Sales Promotion Tools Cross-promoting Cross-promoting 17-32
- 33. Cross Promotion 17-33
- 34. The Gap What is The Gap’s current strategy? How does it differ from previous campaigns? How is it similar? Gap Commercial 17-34
- 35. The difference between advertising and publicity is that publicity is: A. more effective. B. is almost always used in conjunction with consumer satisfaction surveys. C. not a paid form of marketing communication. D. designed to remind consumers while advertising is used to interview consumers. E. is designed for selective demand and not universal F. demand. 17-35
- 36. The three objectives of advertising are to: A. create, stimulate, or ignore. B. beg, borrow, or steal. C. pay, buy, or barter. D. inform, persuade, or remind. E. push, pull, or sell. 17-36
- 37. Primary vs. Selective Demand 17-37
- 38. “We are your local university” ad campaign is a(n) ________________ campaign. A. product focused B. consumer generated C. primary demand D. institutional advertising E. continuous coupon deal 17-38
- 39. Check Yourself 1. What are the steps involved in planning an ad campaign? 2. What is the difference between informational, persuasive and reminder advertising? 3. What are the pros and cons of the different media types? 17-39
- 40. “You have tried the rest; now try the best!” is an example of advertising: A. simplicity. B. streaming. C. puffery. D. selectivity. E. sincerity. 17-40
- 41. Check Yourself 1. Why do companies utilize public relations as part of their DML strategy? 2. What are the elements of a public relations toolkit? 17-41
- 42. Check Yourself 1. What are various forms of sales promotions? 17-42
- 43. The Appeal Informational appeal Informational appeal Emotional appeal Emotional appeal 17-48
- 44. Determine the Advertising Schedule 17-49
Hinweis der Redaktion
- Chapter 17 – Advertising, Public Relations, and Sales Promotions
- These are the learning objectives for this chapter.
- This will be covered in the following slides. This web link is for Ad Age – it is interesting to visit the site and have students see current issues in advertising.
- The advertising plan must be specific to the identified target audience and include the strategic objectives and tactics to be used. Group activity : Develop an advertising plan for a product you like. What are the objectives of the campaign? How are you going to accomplish those objectives? How will you measure the campaign’s success?
- An advertising campaign has three broad objectives: inform, persuade, or remind the target audience.
- This is a good ad to help the mother and parent feel more “normal” about their older child’s bedwetting issue and persuade them to purchase this product for their child.
- Remind students that all types of firms, including nonprofits, use advertising, as this ad for the Museum of Modern Art shows. Visually, this ad conveys a lot of information yet also serves to persuade consumers to visit and remind patrons what the museum offers. Thus, this ad fulfills all three advertising objectives .
- Group activity: List brands that might benefit from focusing on informative, persuasive, and reminder advertising. Next, list several brands that enjoy top-of-mind awareness for you (e.g., when you think of a cola, does Coke pop into your head unprompted?).
- When a product has gained a certain level of brand awareness, firms use persuasive advertising to motivate consumers to take action.
- Reminder advertising is communication used to remind or prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle.
- Most advertising is product focused. However, companies like Exxon-Mobile advertise their commitment to the environment, not their products, to inform, persuade, and remind consumers of positive thoughts about the company, which can prompt the purchase of products and services. Ask students: Why might Exxon be particularly interested in institutional advertising? Oil and Gas companies are often accused of engaging in practices that are harmful to the environment. Therefore it is important for the firm to stress that they are an environmentally responsible firm to negate some of this criticism.
- Public service advertisements are designed to raise awareness of public welfare issues and receive free airtime, as required by the FCC.
- Ask students: What issues have you seen “advertised” in PSAs? Are they effective? The AdCouncil creates and distributes most PSAs. This slide shows a campaign for the United Negro College Fund and an anti-bullying initiative.
- As part of the historic tobacco settlement, a fund was created to decrease the incidence of smoking among children and teens. Ask students: Do the shocking images and text used by the TRUTH campaign work? If you think it does not, why do observers consider the overall campaign a success?
- The USP (unique selling proposition) concept conveys core benefits to the target audience. The best USPs stand the test of time; consider examples such as those on the slide. Ask students: do you believe these will stand the test of time? Nokia has been using “connecting people” for a long time; however Verizon tends to change and is currently using “It’s the Network”
- This is a good example of bringing a very mature product category to life with a creative ad.
- Ask students what other symbols they know for brands. They are bound to know the hushpuppie dog, Mr. Clean, and more.
- The ability of any one media outlet to reach a mass audience is declining due to the fragmentation of media and the proliferation of new media outlets. This trend represents a double-edged sword, because fragmenting media have also allowed for very fine targeting in media buys.
- Ask students: How would a firm use both mass and niche media in the same campaign? Often firms will use mass media to reach a broad audience with a product message and then choose specific niche media to customize that same message for various audiences. In the McDonald’s Case in Point in chapter 17 we discussed how McDonald’s is using both mass and niche media.
- Ask students what other campaigns do they know – many will be familiar with the Dove campaign from earlier chapters. If it is near the holiday season – OfficeMax might be running this campaign again. If so, see if you can load up some pictures of people at your university and play it for the students. They will find it very entertaining
- Setting the promotional budget is not easy, and advertising often is the largest single expenditure in the promotional budget. Thus, firms must carefully weigh the benefits of advertising versus other communications when deciding how much to allocate.
- Ask students: What media do you use and under what circumstances do you use them? For example, do you listen to the radio while driving in your car or watch television when you get home at night? Use these lists to discuss how the usage context of each medium affects how marketers design messages for them. For example most people listen to radio in their cars, often by themselves. Radio is considered a more personal medium, thus marketers often use ads that employ dialogues. This allows the person to place themselves in the conversation. This same technique cannot be used in print.
- Ads attempt to make maximum use of the medium’s ability to deliver the message. Discuss the benefits and limitations of various media. For example, television enables advertisers to combine imagery, movement, and music, whereas radio must rely solely on sound to deliver the message.
- This print Ad for Southwest Airlines is using humor to deliver the selling message. The text copy “Maybe We Made Group Travel a Little Too Easy?” informs consumers of the group travel service offered by Southwest. In fact group travel is so easy you can have a birthday party for your cat and invite all of your friends and family. Notice that even though this is a static picture there is a lot of movement in the ad. Lots of people doing lots of different things. Ask students: How long did it take you to figure out that the birthday party is for the cat?
- Group activity : Your group has been assigned to assess the impact of a campaign for a new perfume. The goal of the campaign is to increase awareness of the brand within a chosen target market by 20% over the campaign. What measures would you need to take to ensure that the campaign is remaining on track? Answer: You could design a tracking study that measures sales, website visits and sample requests generated over the course of the campaign. You also might measure awareness levels of the target market at various stages of the campaign.
- Ask students : Could puffery ever be considered deceptive? If so, how should we draw the line between puffery and deception? The line between puffery and deception is a fine one. Obvious exaggerations are not the problem it is the more subtle issues that create the problem. The line is currently drawn by the FTC which determines how many individuals hold a false belief as a result of an advertising. It is a very gray area of advertising law.
- Companies involved with cause related marketing often generate a lot of PR. Ask students if they can think of any events or companies they see advertised on the news, in the papers, or written about in websites. This web link is for TOMS shoes which is discussed in the chapter.
- Advertising regulation exists on federal, state, and local levels and a host of self-regulatory agencies oversee various forms of advertising. Unlike in many European countries, puffery is legal in the United States. Generally these claims are so outrageous that no rational consumer would believe them
- Remind students that as advertising has decreased as a portion of total marketing communications budgets, sales promotions have increased. Promotions can be used to stimulate sales by either the end user consumers or to stimulate channel members to sell more of a given product/service. If focused on the end user, the promotion is using a “pull strategy.” If focused on channel members , it is using a “push strategy”
- Sales promotions occur either in conjunction with an advertising campaign or as a stand-alone component of a marketing communications plan. In either case, they must be consistent with the brand image. Asks students which ones they think are the most effective and why? Ask them which ones they have used in the past week? Month?
- This ad represents a deal. The promotion encourages consumers to increase their rate of purchasing by offering a free product.
- In recent years, firms have become more creative in the types of promotions used. Ask students: How many of them as children collected promotions in Happy Meals or other children’s products? The Happy Meal for years was McDonald’s most successful product, primarily driven by the children’s desire for the toy inside. Many of the happy meal toys have become sought after collectibles. The Beanie Baby promotions a number of years ago was so successful that McDonald’s literally ran out of the featured item for the week within hours of its initial distribution.
- An ad for IAMS and a coupon for Petsmart – an good example of co-marketing
- Current: Gap is trying to use less famous celebrities in black and white photos that look classic. This is more like their initial campaigns' and unlike those with A-list Celebrities like Penelope Cruz. This YouTube video (always check before class) is for a television ad for the gap
- Ans. C Explanation: Advertising is paid marketing communications while publicity is free. Marketers actively cultivate publicity, knowing consumers give greater credibility to publicity than to advertising.
- Ans. D Explanation: Marketing communications typically focus on one or more of the goals of informing, persuading, or reminding consumers about the firm, its brands, or its products.
- The “Got Milk” campaign generates demand for the entire milk category; an advertisement for a single brand of milk tries to generate selective demand for that particular brand. The two are not mutually exclusive; when Coca-Cola introduced Diet Coke, it created both primary demand for diet soda and selective demand for Diet Coke.
- Ans. D Explanation: Institutional advertising includes politics, places, industries, or a particular corporation but does not focus on products or brands.
- (1) identify their target market, (2) set advertising objectives, (3) set the advertising budget, (4) depict their product or service, (5) evaluate and select the media, (6) create the ad, and (7) assess the impact of the ad. Informative advertising communicates to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase. When a product has gained a certain level of brand awareness, firms use persuasive advertising to motivate consumers to take action. Persuasive advertising generally occurs in the growth and early maturity stages of the product life cycle. reminder advertising is communication used to remind or prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle. See exhibit 18.3 on slide #28.
- Ans. C Explanation: Puffery is legal exaggeration, stopping short of deceptive advertising.
- Public relations programs are used to build and maintain a positive image of the firm, head off unfavorable stories or events, and maintaining positive relationships with the media. Firms can accomplish these public relations objectives by working with or providing the media with products or favorable information to be used in articles, television appearances, etc. They can also work with charities or co-sponsor events. Publications, video and audio, annual reports, press kits, news releases, speeches, event sponsorships, electronic media
- Coupons, deals. Premiums. Contests, sweepstakes, samples, loyalty programs, POP displays, rebates, product placement The realized margin from the promotion, the cost of the additional inventory carried due to buying more than the normal amount, the potential increase in sales from the promoted merchandise, the long-term impact on sales of the promotion, the potential loss suffered when customers switch to the promoted merchandise from more profit table tvs, the additional sales made to customers attracted to the store by the promotion. .
- Institutional advertisements inform, persuade, and remind consumers about issues related to places, politics, an industry, or a particular corporation.
- Product-focused advertisements focus on informing, persuading, or reminding customers about a specific product or service.
- Public service advertising (PSA) focuses on public welfare and generally is sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups.
- A pull strategy is a strategy in which the goal is to get consumers to pull the product into the supply chain by demanding it.
- A push strategy is designed to increase demand by focusing on wholesalers, distributors, or sales people.
- Appeals depend on the target audience, chosen media, and type of product/service. Each appeal persuades in different ways. Whereas informational appeals are more cognitive and persuade using rational thought, emotional appeals persuade by triggering an emotional response rather than offering rational arguments. Ask students : how do the two Kleenex ads vary in their type of appeal and how well does each match the product? Which would make you purchase Kleenex?
- Every advertising campaign has a set duration, and during that period, marketers must determine how often and when to show the ads. Ask students : In a media buy when would each strategy be employed? For a frequently purchased good such as soda, most firms use a continuous strategy. A flighting schedule is often used for seasonal goods since they are only advertised during certain times of the year. A pulsing schedule is used by firms who have certain fluctuations in their demand and need to increase advertising during the periods of high or low demand.