2 Chapter 17 ♦ Advertising, Public Relations, and Sales Promotion
LEARNING OUTCOMES
16-1 Discuss the effects of advertising on market share and consumers
Advertising helps marketers increase or maintain brand awareness and, subsequently, market share. Typically, more is
spent to advertise new brands with a small market share than to advertise older brands. Brands with a large market share
use advertising mainly to maintain their share of the market. Advertising affects consumers’ daily lives as well as their
purchases. Although advertising can seldom change strongly held consumer attitudes and values, it may transform a
consumer’s negative attitude toward a product into a positive one. Finally, advertising can also change the importance of
a brand’s attributes to consumers. By emphasizing different brand attributes, advertisers can change their appeal in
response to consumers’ changing needs to try to achieve an advantage over competing brands.
16-2 Identify the major types of advertising
Advertising is any form of nonpersonal, paid communication in which the sponsor or company is identified. The two
major types of advertising are institutional advertising and product advertising. Institutional advertising is not product-
oriented; rather, its purpose is to foster a positive company image among the general public, investment community,
customers, and employees. Product advertising is designed primarily to promote goods or services, and it is classified
into three main categories: pioneering, competitive, and comparative. A product’s place in the product life cycle is a
major determinant of the type of advertising used to promote it.
16-3 Discuss the creative decisions in developing an advertising campaign
Before any creative work can begin on an advertising campaign, it is important to determine what goals or objectives the
advertising should achieve. The objectives of a specific advertising campaign often depend on the overall corporate
objectives and the product being advertised, and are often determined using the DAGMAR approach. Once objectives
are defined, creative work can begin (e.g., identifying the product’s benefits, developing possible advertising appeals,
evaluating and selecting the advertising appeals, executing the advertising message, and evaluating the effectiveness of
the campaign).
16-4 Describe media evaluation and selection techniques
Media evaluation and selection make up a crucial step in the advertising campaign process. Major types of advertising
media include newspapers, magazines, radio, television, the Internet, outdoor media such as billboards and bus panels.
Recent trends in advertising media include shopping carts, computer screen savers, DVDs, CDs, interactive kiosks,
advertisements before movies, posters on bathroom stalls, and “advertainments.” Promotion managers choose the
advertising campaign’s media mix on the basis of the following variables: cost per contact, reach, frequency,
characteristics of the target audience, flexibility of the medium, noise level, and the life span of the medium. After
choosing the media mix, a media schedule designates when the advertisement will appear and the specific vehicles in
which it will appear.
16-5 Discuss the role of public relations in the promotional mix
Public relations is a vital part of a firm’s promotional mix. A company fosters good publicity to enhance its image and
promote its products. Popular public relations tools include new-product publicity, product placement, consumer
education, sponsorship, company Web sites. An equally important aspect of public relations is managing unfavorable
publicity in a way that is least damaging to a firm’s image.
16-6 Define and state the objectives of sales promotion and the tools used to achieve them
Marketing managers can use sales promotion to increase the effectiveness of their promotional efforts. Sales promotion
can target either trade or consumer markets. Trade promotions may push a product through the distribution channel using
sales contests, premiums, P-O-P displays, trade allowances, push money, training, free merchandise, store
demonstrations, and business meetings. Consumer promotions may push a product through the distribution channel using
coupons, rebates, premiums, loyalty marketing programs or frequent buyer programs, contests, sweepstakes, sampling,
and point-of-purchase displays. The biggest trend in sales promotions on both the trade and consumer side has been the
increased use of the Internet.