Ch 18. Advertising, Public Relations, and Sales Promotions PDF

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advertising - a paid form of communication from an identifiable source, delivered through a comm unication channel, and designed to persuade the receiver to take some action now or in the future steps in planning and executing an ad campaign - identify target audience - set advertising objectives - determine the advertising budget - convey the message - evaluate and select media - create advertisements - assess impact Step 1: Identify target audience - The success of an advertising program depends on how well the advertiser can identi fy its target audience. Firms conduct research to identify their target audience, then u se the information they gain to set the tone for the advertising program and help them select the media they will use to deliver the message to that audience. Step 2: Set advertising Objectives - advertising plan a. a section of the firm’s overall marketing plan that explicitly outlines the objecti ves of the advertising campaign, how the campaign might accomplish those o bjectives, and how the firm can determine whether the campaign was succes sful b. All advertising campaigns aim to achieve certain objectives: to inform, persua de, and remind customers - pull strategy a. a strategy in which the goal is to get consumers to pull the product through th e marketing channel by demanding it - push strategy a. a strategy designed to increase demand by motivating sellers - wholesalers, d istributors, or salespeople - to highlight the product, rather than the products o f competitors, and thereby push the product onto consumers - informative advertising a. communication used to create and build brand awareness, with the ultimate g oal of moving the consumer through the buying cycle to a purchase - persuasive advertising a. communication used to motivate consumers to take action - reminder advertising a. communication used to remind consumers of a product or to prompt repurcha ses, especially for products that have gained market acceptance and are in th e maturity stage of their life cycle - focus of advertisements a. product-focused advertisements i. advertisements used to inform, persuade, or remind consumers about a specific product or service b. institutional advertisement

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a type of advertising that promotes a company, corporation, business, institution, or organization; unlike product-focused advertisements, not intended to sell a particular product or service public service advertising (PSA) 1. advertising that focuses on public welfare and generally is spo nsored by nonprofit institutions, civic groups, religious organiza tions, trade associations, or political groups; a form of social m arketing a. the application of marketing principles to a social issue to bring about attitudinal and behavioral change among the general public or a specific population segment

Step 3: Determine the advertising budget Step 4: Convey the message - Marketers determine what they want to convey about the product or service. First, th e firm determines the key message it wants to communicate to the target audience. S econd, the firm decides what appeal would most effectively convey the message. - The message provides the target audience with reasons to respond in the desired wa y. a. unique selling proposition (USP) i. a strategy of differentiating a product by communicating its unique attri butes; often becomes the common theme or slogan in the entire adver tising campaign - Advertisers use different appeals to portray their products or services and persuade c onsumers to purchase them, though advertising tends to combine the types of appeal s into two categories: informational and emotional a. informational appeal i. used in a promotion to help consumers make purchase decisions by o ffering factual information and strong arguments built around relevant i ssues that encourage them to evaluate the brand favorably on the bas is of the key benefits it provides b. emotional appeal i. an appeal that aims to satisfy consumers’ emotional desires rather tha n their utilitarian needs Step 5: Evaluate and select media The content of an advertisement is tied closely to the characteristics of the media that firms s elect to carry the message, and vice versa. media planning - the process of evaluating and selecting the media mix that will deliver a clear, consist ent, compelling message to the intended audience a. the combination of the media used and the frequency of advertising in each m edium media buy - the actual purchase of airtime or print pages two types of media - mass media

a. channels that are ideal for reaching large numbers of anonymous audience m embers; include national newspapers, magazines, radio, and television - niche media a. channels that are focused and generally used to reach narrow segments, ofte n with unique demographic characteristics or interests Communication media vary in their ability to reach the desired audience. - ex) radio is a good medium for products such as grocery purchases or fast food beca use many consumers decide what to purchase either on the way to the store or while in the store. Determining the advertising schedule - advertising schedule a. the specification of the timing and duration of advertising b. 3 types of schedules i. continuous schedule 1. an advertising schedule that runs steadily throughout the year and therefore is suited to products and services that are consu med continually at relatively steady rates and that require a ste ady level of persuasive or reminder advertising ii. flighting 1. an advertising schedule implemented in spurts, with periods of heavy advertising followed by periods of no advertising iii. pulsing 1. an advertising schedule that combines the continuous and fligh ting schedules by maintaining a base level of advertising but in creasing advertising intensity during certain periods Step 6: Create advertisements The message and appeal are translated creatively into words, pictures, colors, and/or music. Often, the execution style for the ad will dictate the type of medium used to deliver the mess age. When using multiple media to deliver the same message, advertisers must maintain co nsistency across styles - that is, integrated marketing - so that the different executions delive r a consistent and compelling message to the target audience. headline - in an advertisement, large type designed to draw attention subhead - an additional smaller headline in an ad that provides a great deal of information throu gh the use of short and simple words Headlines and subheads should be short and use simple words and include the primary prod uct or service benefits, the name of the brand, and an interest-provoking idea. body copy - the main text portion of an ad used to build on the interest generated by the visual an d headlines; explains in more depth what the headline and subheads introduced, aro uses desires for the product, and provides enough information to move the target con sumer to action. brand elements - characteristics that identify the sponsor of a specific ad Although creativity plays a major role in the execution stage, advertisers must remain careful not to let their creativity overshadow the message.

Step 7: Assess impact using marketing metrics The effectiveness of an advertising campaign must be assessed before, during, and after the campaign has run. protesting - assessment performed before an ad campaign is implemented to ensure that the vari ous elements are working in an integrated fashion and doing what they are intended t o do tracking - assessments that monitor key indicators, such as daily or weekly sales volume, while the advertisement is running to shed light on any problems with the message or the medium posttesting - the evaluation of an IMC campaign’s impact after it has been implemented Measuring sales impact can be especially challenging because of the many influences other than advertising on consumers’ choices, purchase behavior, and attitudes. These influences include the level of competitors’ advertising, economic conditions in the target market, socioc ultural changes, in-store merchandise availability, and even the weather. Regulatory and ethical issues in advertising the primary federal agencies that regulate advertising activities - the Federal Trade Commission (FTC) a. enforces federal consumer protection laws b. the primary enforcement agency for most mass media advertising - the Federal Communications Commission (FCC) a. regulates interstate and international communications by radio, television, wir e, satellite, and cable - the Food and Drug Administration (FDA) a. regulates food, dietary supplements, drugs, cosmetics, medical devices(inclu ding radiation-emitting devices such as cell phones), biologics (biological issu es), and blood products puffery - the legal exaggeration of praise, stopping just short of deception, lavished on a produ ct Public Relations public relations (PR) - the organizational function that manages the firm’s communications to achieve a vari ety of objectives, including building and maintaining a positive image, handling or hea ding off unfavorable stories or events, and maintaining positive relationships with the media - In many cases, public relations activities support other promotional efforts by generati ng free media attention and general goodwill. cause-related marketing - commercial activity in which businesses and charities form a partnership to market a n image, a product, or a service for their mutual benefit; a type of promotional campai gn event sponsorship

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popular PR tool that occurs when corporations support various activities (financially o r otherwise), usually in the cultural or sports and entertainment sectors Firms often distribute PR toolkits to communicate with various audiences. Some toolkits ele ments are designed to inform specific groups directly, whereas others are created to generat e media attention and disseminate information. Sales promotion sales promotions - special incentives or excitement-building programs that encourage the purchase of a product or service, such as coupons, rebates, contests, free samples, and point-of-pu rchase displays types of sales promotions - coupon a. provides a stated discount to consumers on the final selling price of a specific item; the retailer handles the discount - deal a. a type of short-term price reduction that can take several forms, such as a “fe atured price,” a price lower than the regular price; a “buy one, get one free” off er; or a certain percentage “more free” offer contained in larger packaging; ca n involve a special financing arrangement, such as reduced percentage intere st rates or extended repayment terms - premium a. an item offered for free or at a bargain price to reward some type of behavior, such as buying, sampling, or testing - contest a. a brand-sponsored competition that requires some form of skill or effort - sweepstakes a. a form of sales promotion that offers prizes based on a chance drawing of ent rants’ names - sampling a. offers potential customers the opportunity to try a product or service before th ey make a buying decision - loyalty program a. specifically designed to retain customers by offering premiums or other incenti ves to customers who make multiple purchases over time - point-of-purchase (POP) display a. a merchandise display located at the point of purchase, such as the checkout counter in a grocery store - rebate a. a consumer discount in which a portion of the purchase price is returned to th e buyer in cash; the manufacturer, not the retailer issues the refund - product placement a. inclusion of a product in nontraditional situations, such as in a scene in a movi e or television program cross-promoting - efforts of two or more firms joining together to reach a specific target market...