Lecture M: Marketing (4/e) - Chapter 18: Advertising, public relations, and sales promotions

Chapter 18: Advertising, public relations, and sales promotions. After reading this chapter, you should be able to: Describe the steps in designing and executing an advertising campaign, identify three objectives of advertising, describe the different ways that advertisers appeal to consumers, identify the various types of media,...

ission (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.) 18­20 Public Relations PR Element Function Publications: Brochures, special-purpose singleissue publications such as books Inform various constituencies about the activities of the organization and highlight specific areas of expertise Video and audio: Programs, public service announcements Highlight the organization or support causerelated marketing efforts Annual reports Give required financial performance data and inform investors and others about the unique activities of the organization Media relations: Press kits, news releases, speeches, event sponsorships Generate news coverage of the organization’s activities or products/services Electronic media: Websites, e-mail campaigns Websites can contain all the previously mentioned toolbox elements, while e-mail directs PR efforts to specific target groups TOMS Shoes Website 18­21  check yourself • • Why companies use public relations as part of their IMC strategy? What are the elements of a public relations toolkit? 18­22 Types of Sales Promotion Promotion Advantages Disadvantages Coupons • 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 18­23 Evaluated Sales Promotions  using Marketing Metrics 18­24  check yourself • • What are various forms of sales promotions? What factors should a firm consider when evaluating a sales promotion? 18­25 Glossary 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 Return to slide 18­26 Glossary A 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 Return to slide 18­27 Glossary A flighting advertising schedule is implemented in spurts, with periods of heavy advertising followed by periods of no advertising Return to slide 18­28 Glossary Institutional advertisements inform, persuade, and remind consumers about issues related to places, politics, an industry, or a particular corporation Return to slide 18­29 .. .Public Relations PR Element Function Publications: Brochures, special-purpose singleissue publications such as books Inform various constituencies about the activities of the organization and. .. expertise Video and audio: Programs, public service announcements Highlight the organization or support causerelated marketing efforts Annual reports Give required financial performance data and inform... Evaluated Sales Promotions using Marketing Metrics 18­24  check yourself • • What are various forms of sales promotions? What factors should a firm consider when evaluating a sales promotion? 18­25 Glossary