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Chapter 19
Advertising and Sales Promotions
Tools For Instructors
· Brief Chapter Outline
· Learning Objectives
· Chapter Overview (“Summing Up”)
· Extended Chapter Outline with Teaching Tips
· PowerPoint Slides with Teaching Notes
· Answers to End of Chapter Learning Aids
· Chapter Case Study
· Additional Teaching Tips
Brief Chapter Outline
Identify Target Audience
Set Advertising Objectives
Determine the Advertising Budget
Convey the Message
Evaluate and Select Media
Create Advertisements
Assess Impact Using Marketing Metrics
Regulatory and Ethical Issues in Advertising
Public Relations
Sales Promotion
End of Chapter Learning Aids
Chapter Case Study: Making MasterCard Priceless
Learning Objectives
LO1 Describe the steps in designing and executing an advertising campaign.
LO2 Identify three objectives of advertising.
LO3 Describe the different ways that advertisers appeal to consumers.
LO4 Identify the various types of media.
LO5 Identify agencies that regulate advertising.
LO6 Describe the elements of a public relations toolkit.
LO7 Identify the various types of sales promotions.
Chapter Overview (“Summing Up”)
LO1 Describe the steps in designing and executing an advertising campaign.
Firms (1) identify their target market, (2) set advertising objectives, (3) set the advertising budget, (4)
depict their product or service, (5) evaluate and select the media, (6) create the ad, and (7) assess the
impact of the ad.
LO2 Identify three objectives of advertising.
All advertising campaigns are designed to inform, persuade, or remind customers. Informative
advertising is communication used to create and build brand awareness. Persuasive advertising is
communication used to motivate consumers to take action. Finally, reminder ¬advertising is
communication used to remind or prompt repurchases.
LO3 Describe the different ways that advertisers appeal to consumers.
Advertising appeals are either informational or emotional. Informational appeals influence purchase
decisions with factual information and strong arguments built around relevant key benefits that
encourage consumers to evaluate the brand favorably. Emotional appeals indicate how the product
satisfies emotional desires rather than utilitarian needs.
LO4 Identify the various types of media.
Firms can use mass media channels like newspapers or television to reach large ¬numbers of
anonymous audience members. Niche media, such as cable television and specialty magazines, are
generally used to reach narrower segments with unique demographic characteristics or interests. When
choosing media, firms must match their objectives to that channel. Also, certain media are better at
reaching a particular target audience than others.
LO5 Identify agencies that regulate advertising.
Advertising is regulated by a plethora of federal and state agencies. The most important federal
agencies are the FTC, which protects consumers against general deceptive advertising; the FCC, which
has jurisdiction over radio, television, wire, satellite, and cable and covers issues regarding the use of
tobacco products and objectionable language; and the FDA, which regulates food, dietary supplements,
drugs, cosmetics, and medical devices.
LO6 Describe the elements of a public relations toolkit.
A variety of elements compose a firm’s public relations toolkit. They include publications, video and
audio programs, public service announcements, annual reports, media kits (e.g., press kits), news
releases, and electronic media (e.g., websites).
LO7 Identify the various types of sales promotions.
Sales promotions are special incentives or excitement-building programs that encourage purchase and
include coupons, deals, premiums, contests, sweepstakes, samples, POP ¬displays, rebates, and product
placement. They either push sales through the channel, as is the case with contests directed toward
retail salespeople, or pull sales through the channel, as coupons and rebates do.
Extended Chapter Outline With Teaching Tips
I. Steps in Planning an AD Campaign (PPT
slide 19-4)
A. Step 1. Identify Target Audience (PPT slide 19-5)
B. Step 2. Set Advertising Objectives (PPT slide 19-6, 7, 8)
1. Informative Advertising (PPT slide 19-10)
2. Persuasive Advertising (PPT slide 19-11)
3. Reminder Advertising (PPT slide 19-12)
4. Focus of Advertisements (PPT slide 19-14)
C. Step 3. Determine The Advertising Budget (PPT slide
19-18)
D. Step 4. Convey The Message (PPT slide 19-19)
1. The Message (PPT slide 19-20)
2. The Appeal (PPT slide 19-21)
a) Informational Appeals
b) Emotional Appeals
E. Step 5. Evaluate And Select Media (PPT slide 19-24)
1. Mass and Niche Media (PPT slide 19-25)
2. Choosing the Right Medium (PPT slide 19-26)
3. Determining the Advertising Schedule (PPT slide 19-27)
F. Step 6. Create Advertisements (PPT slide 19-29)
G. Step 7. Assess Impact Using Marketing Metrics (PPT slide
19-31)
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 19-32)
1. What are the steps involved in planning an ad campaign?
Answer: The steps involved in planning an ad campaign include identifying target audiences, setting
2. What is the difference between informational, persuasive and reminder advertising?
Answer: Informational advertising helps consumers make purchase decisions by offering factual
information and strong arguments built around relevant issues that encourage consumers to evaluate the
3. What are the pros and cons of the different media types?
Answer: The advantages of television are that it has wide reach and incorporates sound and video;
however, it has high costs, cluttered airways, and more potential spillover. The advantages of radio are
that it is relatively inexpensive, can be selectively targeted, and has wide reach; however, it has no
4. How can the effectiveness of advertising be evaluated?
II. Regulatory and Ethical Issues in
Advertising (PPT slide 19-33)
III. Public Relations (PPT slide 19-36)
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 19-37)
1. Why do companies utilize public relations as part of their DML strategy?
2. What are the elements of a public relations toolkit?
IV. Sales Promotion (PPT slide 19-38)
A. Types of Sales Promotion (PPT slide 19-39)
1. Deals
2. Premiums
3. Contests
4. Sweepstakes
5. Samples
6. Loyalty Programs
7. Point-of-Purchase Displays
8. Rebates
9. Product Placements
B. Using Sales Promotion Tools (PPT slide 19-41)
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 19-43)
1. What are various forms of sales promotions?
Answer: These can include coupons, deals, premiums, contests, sweepstakes, samples, loyalty
programs, rebates and product placement.
2. What factors should a firm consider when evaluating a sales promotion?
Answer: To evaluate a trade promotion, the retailer considers:
· The realized margin from the promotion.
· The cost of the additional inventory carried due to buying more than the normal amount.
· The potential increase in sales from the promoted merchandise.
· The long-term impact on sales of the promotion.
· The potential loss suffered when customers switch to the promoted merchandise from more
profitable TVs.
· The additional sales made to customers attracted to the store by the promotion.
