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PRINCIPLES OF MARKETING Eighth Edition Philip Kotler and Gary Armstrong

Chapter Chapter 15 15 Advertising, Sales Promotion and Public Relations ď›™ Copyright 1999 Prentice Hall


What What is is Advertising? Advertising? • Any form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. • U.S. advertisers spend in excess of $175 billion each year. • Advertising is used by: – Business firms, – Nonprofit organizations, – Professionals, – Social Agencies.

 Copyright 1999 Prentice Hall

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Major Major Decisions Decisions in in Advertising Advertising Objectives Objectives Setting Setting

Budget Budget Decisions Decisions

Message Message Decisions Decisions

Media Media Decisions Decisions

Campaign Campaign Evaluation Evaluation ď›™ Copyright 1999 Prentice Hall

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Setting Setting Objectives Objectives

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Advertising Objectives • Specific Communication Task • Accomplished with a Specific Target Audience • During a Specific Period of Time

Informative Informative Advertising Advertising

Persuasive Persuasive Advertising Advertising

Comparison Comparison Advertising Advertising

Reminder Reminder Advertising Advertising

Build BuildPrimary PrimaryDemand Demand

Compares ComparesOne OneBrand Brand to to Another Another

Build BuildSelective SelectiveDemand Demand

Keeps KeepsConsumers ConsumersThinking Thinking About AboutaaProduct. Product.

 Copyright 1999 Prentice Hall


Setting Setting the the Advertising Advertising Budget Budget

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Advertising Budget Methods Affordable, Percentage of Sales, Competitive-Parity and Objective-and-Task Product Product Differentiation Differentiation

Advertising Advertising Frequency Frequency

Stage Stagein inthe theProduct Product Life LifeCycle Cycle

Factors in Setting the Advertising Budget

Competition Competition and and Clutter Clutter ď›™ Copyright 1999 Prentice Hall

Market Market Share Share


Click to title Advertising Click to add add Strategy title Advertising Strategy

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Creating Creating Advertising Advertising Messages Messages Plan Plan aa Message Message Strategy Strategy

General General Message Messageto toBe BeCommunicated Communicatedto toCustomers Customers

Develop DevelopaaMessage Message Focus Focuson on Customer CustomerBenefits Benefits

Creative Creative Concept Concept “Big “Big Idea” Idea”

Visualization Visualizationor orPhrase Phrase Combination Combinationof ofBoth Both

 Copyright 1999 Prentice Hall

Advertising AdvertisingAppeals Appeals Meaningful Meaningful Believable Believable Distinctive Distinctive


Advertising Advertising Strategy Strategy

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Message Message Execution Execution

Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest.

Testimonial Testimonial Evidence Evidence Scientific Scientific Evidence Evidence Technical Technical Expertise Expertise

Slice Sliceof ofLife Life

Typical Typical Message Message Execution Execution Styles Styles

Personality Personality Symbol Symbol

Lifestyle Lifestyle Fantasy Fantasy Mood Moodor or Image Image

Musical Musical  Copyright 1999 Prentice Hall


Advertising Advertising Strategy Strategy

Selecting Selecting Advertising Advertising Media Media Step Step1. 1. Decide Decideon onReach, Reach, Frequency, Frequency, and andImpact Impact Step Step2. 2. Choosing ChoosingAmong AmongMajor MajorMedia MediaTypes Types Media MediaHabits Habitsof ofTarget TargetConsumers Consumers Nature Natureof ofthe theProduct Product Type of Message Type of Message Cost Cost

Step Step3. 3. Selecting Selecting Specific Specific Media MediaVehicles Vehicles

Specific SpecificMedia MediaWithin WithinaaGiven GivenType, Type,i.e. i.e.Magazines. Magazines. Must Balance Media Cost Against Media Must Balance Media Cost Against MediaFactors: Factors: Audience AudienceQuality Quality&&Attention, Attention,Editorial EditorialQuality Quality

Step Step 4. 4. Deciding Decidingon onMedia MediaTiming Timing

Scheduling Schedulingof ofAdvertising AdvertisingOver Overthe theCourse Courseof ofaaYear Year Pattern Patternof ofAds: Ads:Continuity Continuityor orPulsing Pulsing ď›™ Copyright 1999 Prentice Hall

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Advertising Advertising Evaluation Evaluation

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Advertising Advertising Program Program Evaluation Evaluation

Communication Communication Effects Effects

Sales Sales Effects Effects

Is Isthe theAd AdCommunicating CommunicatingWell? Well?

Is Isthe theAd AdIncreasing IncreasingSales? Sales?

ď›™ Copyright 1999 Prentice Hall


Ways Ways to to Handle Handle Advertising Advertising

Sales SalesDepartments Departmentsin in Small SmallCompanies Companies

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Advertising Advertising Departments Departments in in Larger LargerCompanies Companies

Advertising AdvertisingAgency Agency Firm Firmthat thatAssists AssistsCompanies Companies in inPlanning, Planning,Preparing, Preparing, Implementing Implementingand and Evaluating Their Evaluating Their Advertising Advertising Programs. Programs. ď›™ Copyright 1999 Prentice Hall


International International Advertising Advertising Decisions Decisions Adaptation Adaptation of of Global Global Advertising Advertising Advertising Advertising Media Media Costs Costs & & Availability Availability Regulation Regulation of of Advertising Advertising Practices Practices

ď›™ Copyright 1999 Prentice Hall

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What What is is Sales Sales Promotion? Promotion? • Mass communication technique that offers short-term incentives to encourage purchase or sales of a product or service. • Rapid growth in the industry has been achieved because: – Product managers are facing more pressure to increase their current sales, – Companies face more competition, – Advertising efficiency has declined, – Consumers have become more deal oriented.  Copyright 1999 Prentice Hall

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Consumer Consumer -- Promotion Promotion Tools Tools

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Short-Term Incentives to Encourage Purchase or Sales of a Product or Service. Consumer-Promotion Tools

Consumer-Promotion Objectives Entice EnticeConsumers Consumersto to Try TryaaNew NewProduct Product Lure LureCustomers CustomersAway Away From Competitors’ Products From Competitors’ Products Get GetConsumers Consumersto to“Load “LoadUp’ Up’ on onaaMature MatureProduct Product Hold Hold&&Reward Reward Loyal Loyal Customers Customers Consumer ConsumerRelationship Relationship Building Building

Samples Samples Coupons Coupons Cash CashRefunds Refunds Price PricePacks Packs Premiums Premiums

Advertising Advertising Specialties Specialties Patronage Patronage Rewards Rewards Contests Contests Sweepstakes Sweepstakes Games Games

Point-of-Purchase Point-of-Purchase Displays Displays  Copyright 1999 Prentice Hall


Trade Trade -- Promotion Promotion Tools Tools

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Short-Term Incentives That are Directed to Retailers and Wholesalers. Trade-Promotion Tools

Trade-Promotion Objectives Persuade PersuadeRetailers Retailersor or Wholesalers Wholesalersto toCarry CarryaaBrand Brand

Price-Offs Price-Offs

Premiums Premiums

Give GiveaaBrand BrandShelf ShelfSpace Space

Allowances Allowances

Promote PromoteaaBrand Brandin in Advertising Advertising

Patronage Displays Rewards

Buy-Back Buy-Back Guarantees Guarantees

Discounts Discounts

Push PushaaBrand Brandto toConsumers Consumers

Free FreeGoods Goods Contests Contests

ď›™ Copyright 1999 Prentice Hall

Push PushMoney Money Specialty Specialty Advertising Advertising Items Items


Business Business -- Promotion Promotion Tools Tools Short-Term Incentives That are Directed to Industrial Customers. Business-Promotion Objectives

Business-Promotion Tools

Generate GenerateBusiness BusinessLeads Leads

Conventions Conventions

Stimulate StimulatePurchases Purchases

Trade TradeShows Shows

Reward RewardCustomers Customers

Sales SalesContests Contests

Motivate MotivateSalespeople Salespeople

ď›™ Copyright 1999 Prentice Hall

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Developing Developing the the Sales Sales Promotion Promotion Program Program Decide Decideon onthe the Size Size of of the theIncentive Incentive Set SetConditions Conditionsfor for Participation Participation Determine Determine How How to toPromote Promoteand and Distribute Distributethe the Promotion Promotion Program Program Determine Determinethe theLength Length of of the the Program Program Evaluate Evaluate the theProgram Program

ď›™ Copyright 1999 Prentice Hall

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What What is is Public Public Relations? Relations? • Building good relations with the company’s various publics by obtaining favorable publicity, building up a good “corporate image” and handling or heading off unfavorable rumors, stories and events. • Major functions are: – Press Relations or Press Agentry – Product Publicity – Public Affairs – Lobbying – Investor Relations – Development  Copyright 1999 Prentice Hall

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Major Major Public Public Relations Relations Tools Tools Public Public Service Service Activities Activities

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Web Web Site Site News News

Corporate Corporate Identity Identity Materials Materials

Speeches Speeches

Audiovisual Audiovisual Materials Materials

Written Written Materials Materials

ď›™ Copyright 1999 Prentice Hall

Special Special Events Events


Click add Major Public Relations Click to add title title Majorto Public Relations Decisions Decisions

Setting SettingPublic Public Relations Relations Objectives Objectives Choosing Choosing the the Public PublicRelations RelationsMessages Messages and and Vehicles Vehicles Implementing Implementingthe the Public Public Relations RelationsPlan Plan

Evaluating Evaluating Public PublicRelations RelationsResults Results

ď›™ Copyright 1999 Prentice Hall

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Chapter 15: Advertising, Sales Promotion, and