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Chapter 19 – Advertising, Public Relations, and Sales Promotions Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
9
• Direct marketing
4 How can MasterCard integrate the “Priceless” campaign into a public relations program?
Public relations people can help orchestrate different events to get the maximum benefit for MasterCard.
The company should attempt to get as much media coverage generated through public relations.
Consumers find this type of communication as more credible and objective than any other aspects of an
IMC program.
Here are some possible elements of a public relations program:
5 Which sales promotion tactics could MasterCard employ?
• Deals—MasterCard has a deal that offers a short-term 0% interest rate for new customers.
• Premiums —MasterCard offers free sports apparel for customers who spend a certain amount
during a larger sporting event.
Additional Teaching Tips
This chapter addresses the steps in planning an advertising campaign, the elements of an effective
advertisement, and sales promotions. Instructors should review the advertising budget strategies in detail.
Students generally have a good idea of sales promotions as consumers.
Students often see advertisements but do not realize that the ad as well as the ad message has
undergone a comprehensive process before the consumer ever sees or hears it. This process is reflected
in Exhibit 19.1. Instructors may want to divide students into 7 groups and assign each group one role that
corresponds to one of the steps in the ad campaign planning process. Students will learn that they need
to work cooperatively in order for the ad to be successful. After group 1 identifies the target audience for
one particular product (perhaps a new cereal) they hand it over to group 2 who sets the advertising
objectives. This may take a bit of time (step 6 can be a rough sketch due to time constraints) but it is
interesting to observe the class and see what the final outcome is.
Online Tip: Have students in the online platform also go through the process in either teams or
individually using the discussion board. One online class could be divided into 3 or 4 representing a
product with 7 parts within which represent the steps in the ad campaign. Product A has a discussion
thread where the person assigned “identify target market” posts, then the person who is assigned Product
A, step 2, then posts, etc. which will culminate into a full process of going through the steps. Product B
would have a discussion thread, as would Product C and Product D.
Chapter 19 – Advertising, Public Relations, and Sales Promotions Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
10
In teaching design concepts of an ad, assign students a familiar product, such as a new candy bar that
also keeps you awake, and have each group design an ad incorporating all the elements of the ad into
their work. Each group then presents and explains the elements to the class stimulating class discussion
on the topic and enhancing understanding of how critical the components are. Students really enjoy the
hands-on creativity that this teaching tip brings.
Students can also design a sales promotion for the above ad stating the purpose of the sales promotion
and the value it brings to both the manufacturer and the consumer.
Connect Activities
Activity
Type
Learning Objectives 19-
01
02
03
04
05
06
07
Conveying the Message
Case Analysis
X
X
X
Steps in Planning an Ad Campaign
Click & Drag
X
Types of Sales Promotions
Click & Drag
X
Advertising: Ford
Video Case
X
MasterCard’s Priceless Campaigns
Case Analysis
X
X
X
X
X
ISeeIt Video Case: Advertising,
Promotions, and Public Relations
Video Case
X
X
X
X
Conveying the Message
▪ Activity Type: Case Analysis
▪ Learning Objectives: 19-01, 19-02, 19-03
▪ Difficulty: Hard
▪ Activity Summary: This case explains Dole’s advertising strategy for the introduction of Dole
Fruit Bowls. The student answers questions applying chapter concepts to the case.
Activity
▪ Introduction: Dole Food Company has been selling pineapples since 1851 and today is the
world's largest producer and marketer of fresh fruit, fresh vegetables, fresh-cut flowers, and a
growing line of packaged foods. In the mid-1990s, Dole developed a new product line to meet
consumers' evolving needs, and along with the new product line came new advertising
challenges. Review the case and answer the corresponding questions about Dole's advertising
strategy.
▪ Concept Review: All advertising campaigns are designed to inform, persuade, or remind
customers about a product, company, or category. Ads can be used to stimulate demand for a
particular category or industry, or for a specific brand, firm, or item. To create a successful
campaign, a firm needs to identify its target market, set advertising objectives, depict its product,
evaluate and select media, create the ad, and assess the ad's impact.
By the end of 2003, volume growth at Dole also was sweet as customers continued to choose Dole's
healthy snack over more traditional ones. Today, Dole is the world's largest producer and marketer of
fresh fruit, fresh vegetables, fresh-cut flowers, and a growing line of packaged foods. Dole does business
Chapter 19 – Advertising, Public Relations, and Sales Promotions Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
11
in more than 90 countries and employs 36,000 full-time employees as well as 23,000 full-time seasonal
(or temporary) employees worldwide. By understanding the needs of consumers, modifying the product to
meet those needs, and using advertising to convey the benefits of the product to different consumer
segments, Dole was able to create a successful product.
Follow-Up Activity
This can be done individually, in small groups, or as a class. Visit the Dole website and choose a fairly
new product mentioned there (the “Videos” page is a good place to look—find one for which they’ve
posted a video). Review the product information on the website (which may be minimal, or may include
splashy graphics) and view product videos. What does the target market appear to be? Identify a different
target market, and describe an ad that would be appropriate for that target market.
Steps in Planning an Ad Campaign
▪ Activity Type: Click & Drag
▪ Learning Objectives: 19-01
▪ Difficulty: Medium
▪ Activity Summary: The student classifies a set of activities according to the steps of the
advertising planning process they represent.
Activity
▪ Introduction: During the process of marketing a new product to address shifting consumer
needs, Dole found itself pursuing a new target market and creating a new product line. Read
about the process Dole went through to develop the advertising campaign and then assemble the
advertising development process as instructed.
▪ Concept Review: Designing a successful advertising program requires much planning at each
step in the process, helping to ensure that the intended message reaches the right audience and
has the desired effect. To get a consumer to remember both the ad and the brand, advertisers
first must get the person's attention. This job has been made difficult by the increasing number of
communication channels and changes in consumers' media usage. Advertisers are attempting to
use creativity and a mix of media that offer better opportunities to reach their target markets.
In the activity, examples of activities are provided and the student must associate each example to the
appropriate step of the advertising planning process.
Follow-Up Activity
(Same as for the previous activity, since both activities relate to Dole). This can be done individually, in
small groups, or as a class. Visit the Dole website and choose a fairly new product mentioned there (the
“Videos” page is a good place to look—find one for which they’ve posted a video). Review the product
information on the website (which may be minimal or may include splashy graphics) and view product
videos. What does the target market appear to be? Identify a different target market, and describe an ad
that would be appropriate for that target market.
Chapter 19 – Advertising, Public Relations, and Sales Promotions Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
12
Types of Sales Promotions
▪ Activity Type: Click & Drag
▪ Learning Objectives: 19-07
▪ Difficulty: Medium
▪ Activity Summary: The student classifies different examples of sales promotions according to
the category each one represents.
Activity
▪ Introduction: Firms, especially retailers, are constantly trying to develop promotions that
stimulate sales and drive purchases. Many sales promotions attempt to build short-term sales,
whereas other sales promotions programs, like loyalty programs and contests, have become
integral components of firms' long-term customer relationship management programs. Billy's
Sporting Goods store is considering offering a sales promotion to stimulate sales and build long-
term relationships. The following exercise examines some of the different types of sales
promotions and their advantages and disadvantages.
▪ Concept Review: Sales promotions are special incentives or excitement-building programs that
encourage consumers to purchase a particular product or service, typically used in conjunction
with other advertising or personal selling programs. The tools of any sales promotion can be
focused on either channel members such as wholesalers or retailers or end-user consumers.
There are many types of sales promotion, including: coupons, deals, premiums, contests,
sweepstakes, samples, loyalty programs, POP displays, rebates, and product placement.
The student is asked to classify eight examples of sales promotions according to the category to which
each one belongs.
Follow-Up Activity
Pick two products that offer a significant contrast (perhaps a car and a pair of shoes, both with college
students as the target market). In small groups, ask the students to decide which types of sales
promotions would be most appropriate for each of the two products, and give some specific examples
(with a level of detail like those in the activity).
Advertising: Ford
▪ Activity Type: Video Case
▪ Learning Objectives: 19-02
▪ Difficulty: Medium
▪ Activity Summary: This case explores the social marketing campaign to support the relaunch of
the Ford Fiesta. After the video ends, students are asked questions about the video and related
course concepts.
Chapter 19 – Advertising, Public Relations, and Sales Promotions Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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Activity
▪ Introduction: Ford's recent relaunch of its Ford Fiesta stands as a great marketing success. As
you will see, it helped to reposition the product to a new target market by using the target's love
for technology and social networking.
▪ Concept Review: This video explores an advertising campaign that Ford has used to incorporate
social networking and the use of technology in reaching its target market. The campaign was very
effective because it met the goal of reaching its target market in ways that far exceeded the
company's original goals.
▪ Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
Follow-Up Activities
▪ Since many of the students will be about the same age as the Fiesta target market, ask them to
assess this campaign. Regardless of what the video says, what aspects of the campaign do they
think were most (and least) appropriate to appeal to young adults, and why?
▪ Use this case in combination with the Scion case in the Integrated Marketing Communications
chapter (Chapter 18). Compare and contrast the IMC efforts of the two companies. It is an
interesting comparison given that they have essentially the same target market.
MasterCard’s Priceless Campaigns
▪ Activity Type: Case Analysis
▪ Learning Objectives: 19-01, 19-02, 19-03, 19-04, 19-07
▪ Difficulty: Hard
▪ Activity Summary: This case describes a campaign building on the long-standing MasterCard
Priceless campaign. The student answers questions applying chapter concepts to the case.
Activity
▪ Introduction: In 1997, MasterCard International and the advertising agency McCann Erickson
Worldwide launched the emotion-based Priceless campaign, which celebrated life's most
precious moments with the tagline, "There are some things money can't buy. For everything else,
there's MasterCard." The campaign was hugely successful, saving MasterCard from disaster.
However, as consumer values and needs changed and the marketplace evolved, MasterCard
faced a new challenge: how to retain customer loyalty and brand identification while reinvigorating
its advertising. The solution was the Priceless Cities campaign.
▪ Concept Review: Advertising is a paid form of communication, delivered through media from an
identifiable source, about an organization, product, service, or idea, designed to persuade the
receiver to take some action, now or in the future. When marketers plan and execute an
advertising campaign, there are a series of steps they need to go through. Among these are
determining the overall advertising objectives and deciding how to convey the message. Firms
Chapter 19 – Advertising, Public Relations, and Sales Promotions Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
14
also need to evaluate and choose from a variety of mass and niche media. As part of an overall
IMC strategy, most firms also combine various types of sales with advertising.
Follow-Up Activities
▪ Individual writing prompt: Ask students to identify another advertising campaign that has been
used over a long period of time but has changed slightly to maintain consumer interest. Ask them
to explain how it has changed, and assess how effective the changes have been in keeping the
campaign fresh and getting consumers’ attention.
Two current examples (as of this writing) are direct competitors in the online insurance market:
Geico and Progressive. Geico’s primary spokes-animal has been the gecko, though they have
also branched out with other types of ads. Progressive has used Flo as their spokesperson, with
only occasional diversions.
▪ Alternatively, you can discuss a classic example: the Energizer Bunny ads. Each ad started with
an apparent ad for some other product, which was then interrupted by a motorized stuffed rabbit
banging a drum with the Energizer logo. The tagline: “Energizer—it keeps going and going.” Over
time, consumers started to wonder, each time an ad started, if it would be interrupted by the
bunny. In this way, Energizer managed to sometimes get consumers’ attention even during other
products’ ads! Several of the ads are available on YouTube; just search on “Energizer Bunny
Ads.”
▪ Another classic example was the Taster’s Choice series, which consisted of a series of small
vignettes in which two neighbors in an apartment building became acquainted, and slowly a
romance developed. Some of these are available on YouTube. Any students who have watched
the Buffy the Vampire Slayer TV series will also find them interesting because the male character
was played by Anthony Stewart Head, who was Giles the librarian on the show.
ISeeIt Video Case: Advertising, PromotionS, and Public Relations
▪ Activity Type: Video Case
▪ Learning Objectives: 19-02, 19-04, 19-06, 19-07
▪ Difficulty: Medium
▪ Activity Summary: This video case considers different tools to promote a coffee shop.
Activity
▪ Introduction: Organizations have a variety of valuable tools and techniques to reach customers
and communicate the unique value they provide. By using advertising to create awareness,
promotions to entice customers to switch brands, and public relations to create awareness,
businesses can influence customers' decision-making behaviors. Take for example the Coffee
Collective and its newest offering—patio seating. Developed with its dog-loving customers in
mind, Martha decides to promote this value-added offering by partnering with the local humane
society. She leverages advertising, in the form of radio and social media, to create awareness of
the pet adoption event hosted on her new patio. By offering a free dog treat for each coffee
purchased, she leverages promotion to entice customers to switch to her coffee shop. Finally, by
partnering with the humane society, she hopes to create awareness by having diverse media
outlets talk about her unique event free of charge. While each of these techniques has their
Chapter 19 – Advertising, Public Relations, and Sales Promotions Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
15
strengths and weaknesses, by all accounts her integrated strategy of using all three channels has
been successful.
▪ Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
