Chapter 20

Advertising, Sales Promotion,

and Public Relations
 Advertising

• Nonpersonal communication paid for by an

identified sponsor using mass media to inform or
persuade

• Public Service Announcements—advertisements run on

time or space donated by the media
 Types of Advertisements
• Pioneering--informative, tell us about product or
company, where it can be found, what it can do
• Competitive--promotes a specific brand or company’s
benefits and features
• Comparative—show one brand’s strengths relative to
competitor

• Reminder--reinforce previous knowledge of product or

company
• Reinforcement—reassure customers

• Advocacy--state position of company on an issue

 The Advertising Decision Process

Planning Implementation Control

Developing the Executing the Evaluating the
advertising program advertising program advertising program
• Identify the target • Pretest the • Post-test the
audience advertising advertising
• Specify the • Carry out the • Make needed
objectives advertising changes
• Set the budget
• Design the ad
• Select the right
media
• Schedule the
advertising

Corrective actions Corrective actions

 Designing the Ad
• Fear appeals—avoid negative experience of non-use/use
• Sex appeals—get attention, increases attractiveness of user
• Humor appeals—draw audience in, product seems more fun
• Emotional appeals—play on feelings, product seems real
• Endorsements—testimonials about product effectiveness
• done by celebrities, experts, or ordinary people
• Slice of Life—product use situations in everyday life
• Demonstrations—show product in action
• Symbolism—visual images to depict product benefits
• Comparison—strength of product relative to competition

This list is not exhaustive! There are other types of appeals.

 Selecting the Right Media

MEDIUM ADVANTAGES DISADVANTAGES

Television reaches extremely large high cost to prepare and run

audience; uses picture, print, ads; short exposure time and
sound, and motion for effect, perishable message; difficult to
can target specific audiences. convey complex information.

Radio low cost; can target specific no visual excitement; short

audiences; ads can be placed exposure time and perishable
quickly; can use sound, message; difficult to convey
humor, and intimacy complex information.
effectively.
 Selecting the Right Media
MEDIUM ADVANTAGES
Magazines can target specific audiences;
high quality color; long life of
ad; ads can be clipped and
saved; can convey complex
information.
Newspapers excellent coverage of local
markets; ads can be placed
and changed quickly; ads can
saved; quick consumer
response; low cost.
DISADVANTAGES
long time needed to place ad;
limited control of ad position;
relatively high cost; competes
for attention with other
magazine features.
ads compete for attention with
other newspaper features; can’t
control ad position on page;
short life span; can’t target
specific audiences.
 Selecting the Right Media

MEDIUM ADVANTAGES DISADVANTAGES

Internet video and audio capabilities; animation and interactivity

animation can improve require large files and more
attention; ads can be time to load; effectiveness is
interactive and link to still uncertain.
advertiser.

Outdoor low cost; local market focus; message must be short and
high visibility; opportunity simple; low selectivity of
for repeat exposures. audience; criticized as a
traffic hazard, eyesore.
 The Language of the Media Buyer

Term What It Means

Reach The number of different people or
households exposed to an advertisement.
Rating The percentage of households in a market
that are tuned to a particular TV show or
radio station.
Frequency The average no. of times an individual is
exposed to an advertisement.
Gross rating points (GRPs) Reach (expressed as a % of the total
market) multiplied by frequency.
Cost per thousands (CPM) The cost of advertising divided by the
number of thousands of individuals or
households who are exposed.
 Scheduling the Advertising
Most companies follow one of three basic approaches:

Continuous (“drip”) Steady schedule throughout the

Schedule year.
Flighting (“intermittent”) Advertising reflects seasonal
Schedule demand

Pulse (“burst”) Schedule Steady and flighting schedules

are combined
 Executing & Evaluating the Advertising
• Pretesting
• Portfolio Tests—consumers shown several ads, evaluate
• Jury Tests—consumers shown ad and give impressions
• Theater Tests—consumers view new shows, ads embedded, give
impressions

• Post-testing
• Aided Recall—recognize ad or parts of it
• Unaided Recall—what ads did you see?
• Attitude—measure changes in attitude after campaign
• Inquiry—response to offers of information or goods
• Sales Tests—test marketing ads on limited basis
 Sales Promotion

• A program designed to build interest in or

encourage purchase of a product during a
specified time period
 Consumer Oriented Sales Promotions
• Coupons—cents-off discounts
• encourage trial
• Deals—e.g., buy one, get one free
• increase trial, use to retaliate against competitors
• Premiums—free/discounted merchandise
• build goodwill
• Contests—e.g., “name the ____” or halftime shoot-out
• increase involvement with product
• Sweepstakes—games of chance, lotteries
• increase product use
 Consumer Oriented Sales Promotions
• Samples--free product
• generate trial
• Continuity Programs--trading stamps, frequent users
• encourage repeat purchase, create loyalty
• POP Displays--in-store advertising, interactive kiosks
• increase trial, impulse purchasing, product
visibility
• Rebates--cash back for purchase
• encourage purchase, stimulate demand
• Product Placements--products in TV, movies, videos
• introduce new products, demonstrate product use
 Trade Promotions

• Allowances and Discounts

• Cooperative Advertising
• Training of Salespeople
 Public Relations

• Attempts to influence the way consumers, stockholders,

and others feel about organizations and products
– Do something good, then talk about it!
– Objectives: introduce new products, enhance image

• Publicity: unpaid (or indirectly paid) nonpersonal

communication about an organization or product in the
media
 Publicity Tools

• News/press releases
• News conferences
• Stunts
• High visibility individuals
“Rules of Thumb” for Handling Negative Publicity

• Start early (i.e., immediately)

• Place customer interests above your own
• Make it a company-wide, team effort
• Take a long-term view
• Don’t forget that public perception is more
important than reality