978-1259709074 Chapter 19 Part 1

Chapter 19 – Advertising, Public Relations, and Sales Promotions Marketing 6th

McGraw-Hill Education.

1

Chapter 19

Advertising, Public Relations, and Sales Promotions

Tools for Instructors

• Brief Chapter Outline

• Learning Objectives

• Extended Chapter Outline with Teaching Tips

• Answers to End of Chapter Learning Aids

• Chapter Case Study

• Additional Teaching Tips

• Connect Activities

Brief Chapter Outline

Step 1: Identify Target Audience

Step 2: Set Advertising Objectives

Step 3: Determine the Advertising Budget

Step 4: Convey the Message

Step 5: Evaluate and Select Media

Step 6: Create Advertisements

Step 7: Assess Impact Using Marketing Metrics

Regulatory and Ethical Issues in Advertising

Public Relations

Sales Promotion

Chapter Case Study: Making MasterCard Priceless

Learning Objectives

LO19-1 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)

LO19-2 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

LO19-3 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

LO19-4 Identify the various types of media.

Chapter 19 – Advertising, Public Relations, and Sales Promotions Marketing 6th

McGraw-Hill Education.

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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

LO19-5 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

LO19-6 Describe the elements of a public relations toolkit.

A variety of elements composes a firm’s public relations toolkit. They include publications, video and

LO19-7 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

Extended Chapter Outline with Teaching Tips

I. Step 1. Identify Target Audience

II. Step 2. Set Advertising Objectives

A. Informative Advertising

B. Persuasive Advertising

C. Reminder Advertising

D. Focus of Advertisements

III. Step 3. Determine the Advertising Budget

IV. Step 4. Convey the Message

A. The Message

B. The Appeal

1. Informational Appeals

2. Emotional Appeals

V. Step 5. Evaluate and Select Media

A. Mass and Niche Media

Chapter 19 – Advertising, Public Relations, and Sales Promotions Marketing 6th

McGraw-Hill Education.

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B. Choosing the Right Medium

C. Determining the Advertising Schedule

VI. Step 6. Create Advertisements

VII. Step 7. Assess Impact Using Marketing Metrics

Progress Check: Several questions are offered for students to check their understanding of core

concepts.

1. What are the steps involved in planning an ad campaign?

Answer: The steps involved in planning an ad campaign include identifying target audiences,

2. What is the difference between informational, persuasive, and reminder advertising?

Answer: Informational advertising helps consumers make purchase decisions by offering

information and strong arguments built around relevant issues that encourage consumers to

stage of their life cycle.

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, several channel and program options, and may increase

awareness of competitors’ brands. The advantages of radio are that it is relatively inexpensive,

can be selectively targeted, and has wide reach; however, it has no video, which limits

presentation; consumers give less focused attention than TV; and exposure periods are short.

The advantages of magazines are that they are very targeted and subscribers pass them along to

4. How can the effectiveness of advertising be evaluated?

VIII. Regulatory and Ethical Issues in Advertising

IX. Public Relations

Chapter 19 – Advertising, Public Relations, and Sales Promotions Marketing 6th

McGraw-Hill Education.

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Progress Check: Several questions are offered for students to check their understanding of core

concepts.

1. Why do companies utilize public relations as part of their IMC strategy?

benefit for both parties. Good PR has always been an important success factor.

2. What are the elements of a public relations toolkit?

Answer: They include publications, video and audio offerings, annual reports, media relations

X. Sales Promotion

A. Types of Sales Promotion

1. Coupons

2. Deals

3. Premiums

4. Contests

5. Sweepstakes

6. Samples

7. Loyalty Programs

8. Point-of-Purchase Displays

9. Rebates

10. Product Placement

B. Using Sales Promotion Tools

Progress Check: Several questions are offered for students to check their understanding of core

concepts.

1. What are various forms of sales promotions?

programs, point-of–purchase displays, 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:

Chapter 19 – Advertising, Public Relations, and Sales Promotions Marketing 6th

McGraw-Hill Education.

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Answers to End of Chapter Learning Aids

Marketing Digitally

1 Go to the website for the Children’s Advertising Review Unit (CARU), one of the major self–

regulatory bodies for children’s advertising, at www.caru.org. Click on “CARU” and then

“About Us—CARU” and examine the activities of CARU. How does this form of regulation

complement the more formal regulation of federal and state agencies? Now look under the

“Press Releases” link. Choose one of the press releases and discuss what action CARU took

against the identified company or group. What was the main issue in the case?

This exercise is designed to help students understand what kind of watchdog groups exist for children’s

advertising.

CARU’s form of regulation complements the more formal regulations of federal and state agencies by

acting as a precursor to formal proceedings directed toward an advertiser that violates government

2 PR Newswire attempts to provide information for “professional communicators.” Visit its

website at www.prnewswire.com and click on the “PR Newswire Services” link to explore the

services it has to offer. What would you consider this organization’s primary purpose to be?

To whom does PR Newswire address the advertising appeals on its website?

PR Newswire provides electronic distribution of broadcast services for breaking news. It solicits news

stories from government, labor, nonprofit, and corporate entities and provides full-text information to the

Marketing Applications

1 What are the objectives of the McDonald’s ad in the chapter opener? Does the ad have more

than one objective? Explain your answer.

All advertising campaigns aim to achieve certain objectives: to inform, persuade, and remind customers.

Another way of looking at advertising objectives is to examine an ad’s focus.

2 Using the same ad, explain what kind of appeal it uses.

The ad uses an informational appeal to help consumers make purchase decisions by offering information

3 Verizon spends millions of dollars each year on advertising for many different purposes.

Provide an example of how it might design an informative ad, a persuasive ad, and a reminder

ad.

Chapter 19 – Advertising, Public Relations, and Sales Promotions Marketing 6th

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Informative ads communicate to create and build brand awareness, with the goal of moving the consumer

through the buying cycle to a purchase. When Verizon started selling the iPhone, it created numerous

ads informing consumers about this technology.

4 Name a current advertising slogan you believe is particularly effective for developing a unique

selling proposition.

Students’ answers will vary. A unique selling proposition is the common theme or slogan in an

5 Bernard’s, a local furniture company, target markets to college students with apartments and

households of young people purchasing their first furniture items. If you worked for

Bernard’s, what type of media would you use for your advertising campaign? Justify your

answer.

To reach the target consumer segments, Bernard’s should use a combination of local television

advertising, newspaper ads, and Internet marketing. Local television ads would give the firm wide reach

in the geographic area, especially if Bernard’s shows them during popular local events, such as televised

6 Should Bernard’s use continuous, pulsing, or flighting for its advertising schedule? Why?

This question asks students to think about the three different schedules and which will be most effective

in this case.

Bernard’s should use a pulsing schedule and ensure it maintains a base level of advertising (e.g.,

7 Suppose Porsche is introducing a new line of light trucks and has already created the

advertising campaign. How would you assess the effectiveness of the campaign?

Rather than designing a campaign, students must assess the existing efforts of a company like Porsche.

To test its effectiveness, students must assess the campaign before (pretesting), during (tracking), and

after (posttesting) it has run.

To determine the effectiveness of Porsche’s new advertising campaign, students should use pretesting to

evaluate brand awareness and increases in unaided recall.

Chapter 19 – Advertising, Public Relations, and Sales Promotions Marketing 6th

McGraw-Hill Education.

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8 Suppose now that Porsche is planning a sales promotion campaign to augment its advertising

campaign for the new line of light trucks. Which push and pull sales promotion tools do you

believe would be most effective? Why?

Students should determine which type(s) of sales promotion might be more beneficial in conjunction with

Porsche’s advertising campaign—coupons, deals, premiums, contests, sweepstakes, samples, loyalty

programs, POP displays, rebates, or product placement.

9 Consider all the diet products that are currently advertised on television today, including

weight-loss supplements, weight-loss programs, and fitness equipment. Do you believe that

some of these ads overstate what the product or service can actually do? Do you think any of

these ads are actually deceptive or puffery?

Many diet products show customers who have achieved significant weight loss (often, it seems these

customers have also gotten tanner too). Some of these ads may overstate what the product can do.

However, most ads have a disclaimer at the bottom that says “results not typical” or “expect 1-2 lbs.

10 You are invited to your 6-year–old niece’s birthday party and bring her the new superhero doll

being advertised on television. She’s thrilled when she unwraps the gift but is in tears a short

time later because her new doll is broken. She explains that on TV, the doll flies and does

karate kicks, but when she tried to play with the doll this way, it broke. You decide to call the

manufacturer, and a representative tells you he is sorry your niece is so upset but that the ad

clearly states the doll does not fly. The next time you see the televised ad, you notice very

small print at the bottom stating that the doll does not fly. You decide to write a letter to the

FTC about this practice. What information should you include in your letter?

The FTC is the primary enforcement agency for most mass media advertising. Although the FTC is

conducting investigations into whether claims in some advertisements are deceptive, it remains the

responsibility of individual consumers to evaluate them. In this case, students should list the type of

Chapter 19 – Advertising, Public Relations, and Sales Promotions Marketing 6th

McGraw-Hill Education.

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Quiz Yourself

1 Firms often use _____ advertising to convince consumers to take action such as switching brands,

trying a new product, or even continuing to buy the advertised product.

a. pull

b. push

c. reminder

d. persuasive

e. informative

2 _______ is a tool used to communicate the distinct attributes of a product; it can be used as a slogan

or a theme and often becomes a snapshot of the entire advertising campaign.

a. The media mix

b. A unique selling proposition

c. An informational appeal

d. Puffery

e. A headline

Chapter Case Study: Making MasterCard Priceless

1 What is the primary objective of the “Priceless” campaign?

MasterCard’s Priceless campaign was designed to persuade shoppers to keep their MasterCard at the

top of their wallets. The campaign was targeted toward customers to create positive “self-assessment

well-known brand names, creating more brand awareness and positive associations with MasterCard.

2 Does the “Priceless” campaign use an informational or an emotional appeal?

The campaign uses an emotional appeal. An emotional appeal aims to satisfy consumers’ emotional

desires rather than their utilitarian needs. These appeals therefore focus on feelings about the self. The

3 Given its various target markets, which media are most appropriate for each market?

Retailers

• Television

• Magazines

• Direct marketing

Consumers