Bài giảng Marketing - Chapter 18: Advertising, public relations, and sales promotions

advertising, public relations, and sales promotionseighteenCopyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.LEARNING OBJECTIVESLO 18-1 Describe the steps in designing and executing an advertising campaign.LO 18-2 Identify three objectives of advertising.LO 18-3 Describe the different ways that advertisers appeal to consumers.LO 18-4 Identify the various types of media.LO 18-5 Identify agencies that regulate advertising.LO 18-6 Describe the elements of a public relations toolkit.LO 18-7 Identify the various types of sales promotions.Steps in Planning and Executing an Ad CampaignAdvertising Age WebsiteIdentify Target AudienceGetty Images/Comstock ImagesSet Advertising ObjectivesPush strategyPull strategy©Brand X Pictures/PunchStock©Comstock/PunchStockAdvertising ObjectivesInformative AdvertisingCreate and build brand awarenessPush the consumer through the buying cycleInform customers about upcoming sales events or arrival of new merchandise©TJX Companies, Inc.Persuasive AdvertisingGenerally occurs in the growth and early maturity stages of the PLC when competition is most intenseMay be used to reposition an established brand in the later stage of the PLC©The Procter & Gamble Company Used by permissionReminder Advertising Communication used to remind or prompt repurchases Occurs after the products have gained market acceptanceUsed by Permission of Deutsch Inc as Agent for National Fluid Milk Processor Promotion BoardProduct-focused advertisementsInstitutional advertisementsFocus of Advertisements©2000 Image 100 LtdDetermining Advertising BudgetSuper Bowl AdsConvey the MessageThe AppealEmotional appealInformational appeal©Procter & Gamble©Procter & GambleEvaluate and Select MediaChoosing the Right MediumMediumAdvantagesDisadvantagesTelevisionWide reach.Incorporates sound and video.High cost.A lot of channel and program options.May increase awareness of competitors’ products.RadioRelatively inexpensive.Can be selectively targeted.Wide reach.No video, which limits presentation.Consumers give less focused attention than TV.Exposure periods are short.MagazinesVery targeted.Subscribers pass along to others.Relatively inflexible.Takes some time for the magazine to be available.NewspapersFlexible.Timely.Able to localize.Can be expensive in some markets.Advertisements have short life span.InternetCan be linked to detailed content.Highly flexible and interactive.Allows for specific targeting.Becoming cluttered.The ad may be blocked by software on the computer.OutdoorsRelatively inexpensive.Offers opportunities for repeat exposure.Is not easily targeted.Has placement problems in some markets.Exposure time is very short.Direct MarketingIs highly targeted.Allows for personalization.Cost can vary depending on type of direct marketing used.Traditional media, like mail, will be more expensive than newer media.Determine the Advertising Schedule©Procter & GambleCreate AdvertisementsAssess Impact Using Marketing MetricsWhat are the steps involved in planning an ad campaign?What are the differences between informational, persuasive, and reminder advertising?What are the pros and cons of the different media types?How can the effectiveness of advertising be evaluated?Regulatory and Ethical Issues in AdvertisingFederal AgencyGeneral PurposeSpecific JurisdictionFederal Trade Commission (FTC) (established 1914)Enforces federal consumer protection laws. Enforces truth in advertising laws; defines deceptive and unfair advertising practices.Federal Communications Commission (FCC) (1934)Regulates interstate and international communications by radio, television, wire, satellite, and cable.Enforces restrictions on broadcasting material that promotes lotteries (with some exceptions); cigarettes, little cigars, or smokeless tobacco products; or that perpetuates a fraud. Also enforces laws that prohibit or limit obscene, indecent, or profane language.Food and Drug Administration (1930)Regulates food, dietary supplements, drugs, cosmetics, medical devices (including radiation emitting devices such as cell phones), biologics (biological issues), and blood products.Regulates package labeling and inserts, definition of terms such as “light” and “organic,” and required disclosure statements (warning labels, dosage requirements, etc.).Public RelationsTOMS Shoes WebsitePR ElementFunctionPublications: Brochures, special-purpose single-issue publications such as booksInform various constituencies about the activities of the organization and highlight specific areas of expertise.Video and audio: Programs, public service announcementsHighlight the organization or support cause-related marketing efforts.Annual reportsGive required financial performance data and inform investors and others about the unique activities of the organization.Media relations: Press kits, news releases, speeches, event sponsorshipsGenerate news coverage of the organization’s activities or products/services.Electronic media: Websites, e-mail campaignsWebsites can contain all the previously mentioned toolbox elements, while e-mail directs PR efforts to specific target groups.Why do companies use public relations as part of their IMC strategy?What are the elements of a public relations toolkit?Types of Sales PromotionPromotionAdvantagesDisadvantagesCoupons • Stimulates demand. • Allows for direct tracing of sales. • Has low redemption rates.• Has high cost.Deals • Encourages trial. • Reduces consumer risk.• May reduce perception of value.Premiums • Builds goodwill. • Increases perception of value. • Consumers buy for premium, not product.• Has to be carefully managed.Contests • Increases consumer involvement. • Generates excitement. • Requires creativity.• Must be monitored.Sweepstakes • Increases involvement with the product. • Sales often decline after the sweepstakes is over.Samples • Encourages trial. • Offers direct involvement.• Has high cost to the firm.Loyalty Programs • Creates loyalty. • Encourages repurchase.• Has high cost to the firm.POP Displays • Provides high visibility. • Encourages brand trial. • Is difficult to get a good location in the store.• Can be costly to the firm.Rebates • Stimulates demand. • Increases value perception. • Is easily copied by competitors.• May just advance future sales.Product Placement • Displays products nontraditionally. • Demonstrates product uses. • Firm often has little control over display.• Product can be overshadowed.Evaluated Sales Promotions using Marketing MetricsWhat are various forms of sales promotions?What factors should a firm consider when evaluating a sales promotion?An advertising plan is a subsection of the firm’s overall marketing plan that explicitly analyzes the marketing and advertising situation, identifies the objectives of the advertising campaign, clarifies a specific strategy for accomplishing those objectives, and indicates how the firm can determine whether the campaign was successful.GlossaryA continuous advertising schedule runs steadily throughout the year and therefore is suited to products and services that are consumed continually at relatively steady rates and that require a steady level of persuasive and/or reminder advertising.GlossaryA flighting advertising schedule is implemented in spurts, with periods of heavy advertising followed by periods of no advertising. GlossaryInstitutional advertisements inform, persuade, and remind consumers about issues related to places, politics, an industry, or a particular corporation.GlossaryMedia buy is the actual purchase of airtime or print pages.GlossaryThe media mix is the combination of the media used and the frequency of advertising in each medium.GlossaryMedia planning is the process of evaluating and selecting the media mix that will deliver a clear, consistent, compelling message to the intended audience.GlossaryProduct-focused advertisements focus on informing, persuading, or reminding customers about a specific product or service.GlossaryPublic service advertising (PSA) focuses on public welfare and generally is sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups.GlossaryA pull strategy is a strategy in which the goal is to get consumers to pull the product into the supply chain by demanding it.GlossaryA pulsing advertising schedule combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods.GlossaryA push strategy is designed to increase demand by focusing on wholesalers, distributors, or sales people.Glossary