Chapter 16: Advertising, Public Relations, and Sales Promotion
1
Chapter 16
Advertising, Public Relations, and Sales
Promotion
This chapter begins with the learning outcome summaries followed by a set of lesson plans for
instructors to use to deliver the content.
• Lecture (for large sections) on page 4
• Company Clips (video) on page 5
• Group Work (for smaller sections) on page 7
Review and Assignments begin on page 8
Review questions
Application questions
Ethics exercise
Video assignment
Case assignment
Great Ideas for Teaching Marketing from faculty around the country begin on page 26
Chapter 16: Advertising, Public Relations, and Sales Promotion
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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
16-2 Identify the major types of advertising
Advertising is any form of nonpersonal, paid communication in which the sponsor or company is
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
16-4 Describe media evaluation and selection techniques
Media evaluation and selection make up a crucial step in the advertising campaign process.
Chapter 16: Advertising, Public Relations, and Sales Promotion
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Major types of advertising media include newspapers, magazines, radio, television, the Internet,
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
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
Key Terms
Advergaming
Coupon
Product advertising
Advertising appeal
Crisis management
Product placement
Advertising campaign
Flighted media schedule
Public relations
Advertising objective
Frequency
Publicity
Advertising response function
Frequent buyer program
Pulsing media schedule
Advocacy advertising
Infomercial
Push money
Audience selectivity
Institutional advertising
Reach
Comparative advertising
Loyalty marketing program
Rebate
Competitive advertising
Media mix
Sales promotion
Chapter 16: Advertising, Public Relations, and Sales Promotion
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Consumer sales promotion
Media planning
Sampling
Continuous media schedule
Media schedule
Seasonal media schedule
Cooperative advertising
Medium
Sponsorship
Cost per contact (cost per
thousand or CPM)
Pioneering advertising
Trade allowance
Point of purchase (P-O-P)
display
Trade sales promotion
Cost per click
Premium
Unique selling proposition
Lesson Plan for Lecture
Brief Outline and Suggested PowerPoint Slides
Learning Outcomes and Topics
PowerPoint Slides
LO1 Discuss the effects of advertising on
market share and consumers
16-1 The Effects of Advertising
1. Advertising, Public Relations, and Sales
Promotion
2. Learning Outcomes
3. The Effects of Advertising
4. Effects of Advertising
5. Effects of Advertising on Consumers
LO2 Identify the major types of advertising
16-2 Major Types of Advertising
6. Major Types of Advertising
7. Institutional Advertising
8. Product Advertising
9. Product Advertising (continued)
LO3 Discuss the creative decisions in
developing an advertising campaign
16-3 Creative Decisions in Advertising
10. Creative Decision in Advertising
11. Advertising Campaign
12. AIDA Model
13. Creative Decisions in Advertising
14. Exhibit 16.1: Common Advertising
Appeals
15. Eleven Common Executional Styles for
Advertising
16. Post-Campaign Evaluation
LO4 Describe media evaluation and
selection techniques
16-4 Media Decisions in Advertising
17. Media Decisions in Advertising
18. Media Decisions in Advertising
19. Exhibit 16.3: Advantages and
Disadvantages of Major Advertising Media
20. Alternative Media
Chapter 16: Advertising, Public Relations, and Sales Promotion
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Learning Outcomes and Topics
PowerPoint Slides
21. Factors Affecting Media Mix Selection
22. Qualitative Factors in Media Selection
23. Media Scheduling
LO5 Discuss the role of public relations in
the promotional mix
16-5 Public Relations
24. Public Relations
25. Public Relations
26. Public Relations Tools
27. Functions of Public Relations
LO6 Define and state the objectives of sales
promotion and the tools used to
achieve them
16-6 Sales Promotion
28. Sales Promotion
29. Sales Promotion
30. Targeted Markets for Sales Promotion
31. Exhibit 16.4: Types of Consumers and
Sales Promotion Goals
32. Tools for Trade Sales Promotion
33. Benefits of Trade Promotions
34. Tools for Consumer Sales Promotion
35. Coupons, Rebates, and Premiums
36. Loyalty Marketing Programs
37. Contests and Sweepstakes
38. Sampling
39. Point-of-Purchase (P-O-P) Display
40. Trends in Sales Promotion
41. Key Terms
42. Key Terms
43. Key Terms
44. Summary
Suggested Homework
• The end of this chapter contains assignments for the BoltBus Publications video or the
product placement case.
• This chapter’s online study tools include flashcards, visual summaries, practice quizzes,
and other resources that can be assigned or used as the basis for longer investigations into
marketing.
Lesson Plan for Video
Chapter 16: Advertising, Public Relations, and Sales Promotion
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Company Clips
Segment Summary: BoltBus
BoltBus is Greyhound’s curbside, express bus service. BoltBus operates primarily in the
Northeast between major hubs, with some other service in the Northwest. This clip covers how
BoltBus reaches its target markets through advertising, promotion, and social media.
These teaching notes combine activities that you can assign students to prepare before class, that
you can do in class before watching the video, that you can do in class while watching the video,
and that you can assign students to complete as assignments after watching the video in class.
During the viewing portion of the teaching notes, stop the video periodically where appropriate
to ask students the questions or perform the activities listed on the grid. You may even want to
give the students the questions before starting the video and have them think about the answer
while viewing the segment. That way, students will be engaged in active viewing rather than
passive viewing.
Pre-Class Prep for You
Pre-Class Prep for Your Students
• Preview the Company Clips video segment
for Chapter 16. This exercise reviews
concepts for LO1–LO5.
• Review your lesson plan.
• Make sure you have all of the equipment
needed to show the video to the class,
including the DVD and a way to project the
video.
• You can also stream the video HERE.
• Have students review and familiarize
themselves with the following terms and
concepts: effects of advertising, types of
advertising, advertising appeals, executing
the message, and media decisions in
advertising.
• Ask students to look for an example of
American youth-targeted advertising. If it’s
in print, have them bring it to class.
• Assign students to study Exhibit 16.1 in
their textbook for discussion in class.
Video Review Exercise
Activity
Warm Up
Briefly discuss students’ findings from the Pre-Class Prep youth ad. Discuss the
specific medium of the ad, the execution style, and the product/service being
promoted. Ask if the students have seen ads for the same products that weren’t
aimed at youth and if so, how the ads differed.
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In-Class
Preview
• Discuss Exhibit 16.1, Common Advertising Appeals. You can have students
complete the diagram individually, as teams, or as a full-class activity,
starting with brainstorming for examples and then pointing out that the
advertising appeal becomes what’s known as the company’s, or product’s,
unique selling proposition.
• Discuss Exhibit 16.2, Eleven Common Executional Styles for Advertising.
Brainstorm for examples, and point out that the message execution is the
starting point of the AIDA process.
• Discuss Exhibit 16.3, Advantages and Disadvantages of Major Advertising
Media. Point out that the product being advertised and the message used to
advertise it have great impact on selecting the proper medium.
• Have copies of the Company Clips questions (below) available for students to
take notes on while viewing the video segment.
Viewing
(Solutions
below.)
1. Who does BoltBus consider to be its core consumers? How does the company
use that knowledge to decide how they market BoltBus?
2. Which type of product advertising does BoltBus use?
3. Does BoltBus use consumer sales promotion? If so, what is the primary
promotion they use?
Follow-up
• Divide students into groups of three to five, and have them pretend that they
are working for a company who wants to develop an advertising program
using transportation sources, such as BoltBus. Give them 10 to 15 minutes to
develop an outline for an advertising campaign that targets the BoltBus
customer. Have as many groups as time allows, and share their outlines with
the class.
Solutions for Viewing Activities
1. Who does BoltBus consider to be its core consumers? How does the company use that
knowledge to decide how they market BoltBus?
Students’ answers will vary. BoltBus considers its core customers to be university students
2. Which type of product advertising does BoltBus use?
Students’ answers will vary. Students can argue for either competitive or comparative
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
3. Does BoltBus use consumer sales promotion? If so, what is the primary promotion
they use?
Students’ answers will vary. On the one hand, they can argue that the consistently low
Lesson Plan for Group Work
In most cases, group activities should be completed after some chapter content has been covered,
probably in the second or third session of the chapter coverage. (See “Lesson Plan for Lecture”
above.)
• For “Class Activity: Prime-Time Television,” provide the information and the questions
asked by the class activities as described later in this chapter. The class activity was
designed to be completed by one person, but each student should bring his or her findings
to class and discuss them in small groups.
• Application exercises 1 and 2 are both suited to group work. Application 1 is an interesting
group assignment to be done out of class. Application 2 can work as an in-class activity,
but you can also send students to do videotaping outside of class and then review videos in
class.
Class Activity: Prime-Time Television
Ask students to watch one hour of prime-time television and answer the following questions.
They will need a watch or clock with a second hand and undivided attention during commercials.
• In a one-hour (full 60-minute) period, how many minutes were devoted to advertising?
How were they distributed throughout the hour?
• How many commercials were 60 seconds long? 45 seconds? 30 seconds? 15 seconds?
• Were there any other commercial lengths?
• Was the same product advertised more than once during the hour? Were the commercials
identical?
• In a “pod” of several commercials, do you feel that one position is strongest? Is being first
the best? Is being last the best? Why?
• How well do the commercials fit with the program? Do the programs and the products
Chapter 16: Advertising, Public Relations, and Sales Promotion
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have similar target markets?
Review and Assignments for Chapter 16
Review Questions
1. Discuss the reasons why new brands with a smaller market share spend
proportionately more on advertising than brands with a larger market share.
Students’ answers will vary. Companies that market brands with a small market share tend
2. What is an advertising appeal? Give some examples of advertising appeals you have
observed recently in the media.
Students’ answers will vary. Although students’ answers will vary, they should address
3. What are the advantages of radio advertising?
Students’ answers should address some of these points: In relationship to other media,
4. At what stage in a product’s life cycle are pioneering, competitive, and comparative
Chapter 16: Advertising, Public Relations, and Sales Promotion
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advertising most likely to occur? Give a current example of each type.
Students’ answers will vary. Pioneering advertising is intended to stimulate primary
5. How can advertising and publicity work together? Give an example.
Students’ answers should address some of these points: Each is a way of communicating
6. What is the primary factor that determines sales promotion objectives? Name some
different types of sales promotion techniques, and explain the type of customer they
are intended to influence.
Students’ answers will vary. The general behavior of target consumers determines the sales
7. Discuss how different forms of sales promotion can erode or build brand loyalty. If a
company’s objective is to enhance customer loyalty to its products, which sales
promotion technique would be most appropriate?
Students’ answers will vary. Some promotions—such as coupons, contests, or rebates—
Chapter 16: Advertising, Public Relations, and Sales Promotion
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© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
used to keep these customers. A frequent buyer club is one of the most successful
incentives that encourage customers to stay loyal as they earn points for free merchandise
or other rewards.
8. What forms of consumer sales promotion might induce impulse purchases? What
forms of sales promotion are more effective at persuading consumers to switch
brands?
Students’ answers will vary. The form of promotion that is most likely to promote impulse
9. How does trade sales promotion differ from consumer sales promotion? How is it the
same?
Students’ answers will vary. Manufacturers use many of the same sales promotion tools
used in consumer promotions, such as sales contests, premiums, and point-of-purchase
10. What are the main forms of trade sales promotion? Which type might be most
enticing to a grocery store manager? To a buyer for a major electronics chain?
Students’ answers will vary. Trade sales promotions may be sales contests, premiums, and
Application Questions
1. Form a three-person team. Divide the responsibility for getting newspaper
advertisements and menus for several local restaurants. While you are at the
restaurants to obtain copies of their menus, observe the atmosphere and interview the
manager to determine what he or she believes are the primary reasons people choose
to dine with them. Pool your information, and develop a table comparing the
restaurants in terms of convenience of location, value for the money, food variety and
Chapter 16: Advertising, Public Relations, and Sales Promotion
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quality, atmosphere, and so on. Rank the restaurants in terms of their appeal to
college students. Explain the basis of your rankings. What other market segments
would be attracted to the restaurants, and why? Do the newspaper advertisements
emphasize the most effective appeal for a particular restaurant? Explain.
Students’ results for this project will vary.
2. Design a full-page magazine advertisement for a new brand of soft drink. The name
of the new drink, as well as package design, is at the discretion of the student. On a
separate sheet, specify the benefits stressed or appeals made in the advertisement.
Students’ answers will vary.
3. You are the advertising manager of a sailing magazine, and one of your biggest
potential advertisers has questioned your rates. Write the firm a letter explaining why
you feel your audience selectivity is worth the extra expense for advertisers.
Students’ answers will vary. Although students’ answers will vary, they should address
4. Identify an appropriate media mix for the following products: chewing tobacco,
Playboy magazine, Weed-Eaters, foot odor killers, and “drink responsibly”
campaigns by beer brewers.
Students’ answers will vary. The options for chewing tobacco are limited by laws.
5. How easy is it to find out about advertising options on the Internet? Go to
Looksmart’s and Yahoo’s advertiser pages (http://www.looksmart.com/ and
http://advertising.yahoo.com/). What kind of information do they require from you?
Send an e-mail requesting information, and compare what you receive.
Chapter 16: Advertising, Public Relations, and Sales Promotion
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Students’ responses will vary. Instructors may wish to have some students present their
results to compare advertising options
6. As the new public relations director for a sportswear company, you have been asked
to set public relations objectives for a new line of athletic shoes to be introduced to the
teen market. Draft a memo outlining the objectives you propose for the shoe’s
introduction and your reasons for them.
Students’ answers should address some of these points: Public relations management must
7. Review the newspapers in your area for one week. Try to review several and varied
newspapers (local, campus, cultural, countercultural, etc.) During this period, cut out
all the event advertisements that list sponsors. Once you have your collection, spread
them out so you can see them all at once. Identify any patterns or connections
between the type of event and its sponsors. Identify companies that sponsor more
than one event. What do sponsors tell you about target markets? After analyzing the
ads, write a brief paragraph summarizing your discoveries.
Students’ answers will vary depending on their collections. You may wish to have some
8. You have recently been assigned the task of developing promotional techniques to
introduce your company’s new product, a Cajun chicken sandwich. Advertising
spending is limited, so the introduction will only include some low-budget sales
promotion techniques. Write a sales promotion plan that will increase awareness of
your new sandwich and allow your customer base to try it risk-free.
Chapter 16: Advertising, Public Relations, and Sales Promotion
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© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Students’ answers will vary.
9. Consider the different consumer sales promotion tools. Give an example of how each
type of tool has influenced you to purchase—or purchase more of—a product or
service.
Students’ answers will vary, but must include an example for each of the tools for
10. Not everyone thinks supermarket shopper cards are a bargain. Go to
http://www.nocards.org, and read several pages. Is the information compelling?
What do you think of shopper cards? You may want to use the Internet to research
shopper cards in more detail before forming an opinion.
Students’ responses will vary. This is a good question to use to set up a debate in class.
11. Contests and sweepstakes are very common in the entertainment industry. Radio
stations have contests almost weekly (some daily); local television morning shows quiz
viewers on trivia; even movies offer sweepstakes in conjunction with film previews
and premiere nights. Think of a television or radio program unlikely to have contests
or sweepstakes (things like Cops, The View, Scooby-Doo, or your local classical music
radio station, for example). Once you have chosen your program, design a contest or
sweepstake to promote the show or the channel on which it airs. List the objectives,
and describe the rationale behind each part of your promotion.
Students’ responses will vary.
12. How can uPromote.com (http://www.upromote.com) help you with your sales
promotions efforts? What kind of marketing budget would you need to take
advantage of its services? What kind of company would be best served by
uPromote.com?
Students’ responses will vary.
13. Form a team of three to five students. As marketing managers, you are in charge of
selling Dixie Cups. Design a consumer sales promotion plan and a trade sales
promotion plan for your product. Incorporate at least three different promotion tools
Chapter 16: Advertising, Public Relations, and Sales Promotion
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into each plan. Share your results with the other teams in the class.
Application Exercises
Application 1
You may think that creating advertising is easy. After all, you have a lot of experience with
advertising, having been bombarded with advertisements since you were a child. But creating
advertising presents real challenges. In this exercise, you will be challenged to create an ad for a
new product for animal use that is based on a product used by humans. Some examples include
bras for cows, claw polish for tigers, and “Minute Mice” for cats. You can pick any product and
any animal, but the combination must make sense.
Purpose: To experientially demonstrate how difficult it is to create advertising
Setting It Up: This exercise is an excellent group project. Divide students into groups of three or
four, and have them brainstorm product ideas. The exercise in the text deals with human
products for animals. The original also proposes creating advertising for illegal products (see
below).
Activities
1. You have been hired by the purveyor of your chosen product to create a print
advertisement. Lay out your ad on a piece of paper that is no smaller than 8.5 by 11 inches
and no larger than 11 by 14 inches. Include a headline, illustration, logo, and body copy.
Your illustration may be either hand drawn or clipped from a magazine.
2. Include the copy for your ad directly on the front of the ad unless your copy blocks are too
large for you to be legible or neat. If that is the case, then label your copy blocks with
letters, put them on the back of your ad, and write the corresponding letter in the
appropriate place on the front of the ad.
3. Don’t forget to pick your own brand name for the product or service (like “Minute Mice”).
This exercise was inspired by the following Great Idea in Teaching Marketing:
S. J. Garner, Eastern Kentucky University
Creating Advertising for an Illegal Product or Service
Chapter 16: Advertising, Public Relations, and Sales Promotion
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When I first started teaching Principles of Marketing twelve years ago, I experienced a problem
getting students to really pay attention to the Advertising/Promotion section of the course. I
wanted the students to see how tough it is to create advertisements. I considered having them
create an ad for a product that was already on the market. I quickly realized that the vast majority
of them would simply copy an existing ad. Thus, they would not experience writing copy or
putting together a proper layout. I decided to try something completely different and have
developed the following technique:
I begin by going over in class the parts of a print advertisement. I show the students a variety of
examples using different ad forms, copy styles, and layout designs. I then give them the
following assignment:
Each of you is to pretend that a currently illegal product or service has recently been legalized.
There are a number of things to select from including (but not limited to) theft, murder,
prostitution, speeding, gambling, counterfeiting, tax evasion, drunk driving, buying votes, and
taking drugs. You have been hired by the purveyor of your chosen product or service to create a
magazine advertisement.
Lay out your ad on a piece of paper that is no smaller than 8-1/2 inch by 11inch and no larger
than 11inch by 14inch. Include a headline, illustration, logotype, and body copy. The illustration
may be either hand drawn or clipped from a magazine. The copy you write for the ad may be
placed at the beginning of the presentation (if you can neatly letter it and say everything you
wish to put across). It usually makes for a neater presentation if you mount the layout on a piece
of cardboard or poster board. Pick your own brand name for the product or service. If you decide
to do a layout that can be rated X, enclose it in a brown paper wrapper. This assignment is due
two weeks from today.
No credit will be given for a “Coca-Cola/cocaine” ad. I know you can be more creative than that!
This assignment is only worth 20 points out of a possible 400 in the entire course, but the
students put an amazing amount of effort into their creations. Since I usually have around 120
students in each Principles class, I cannot show everyone’s ad to the class. What I do instead is
select the 15 best ads from the standpoint of layout design, humor, and putting across the sales
message, and show them to the class. As I show each of the best, I discuss why they are good
examples from a marketing standpoint.
I have been using this assignment for many years and have worked some of the bugs out of it
over time. One bug I should mention is that once in a long while, a student will complain about
being made to promote something dangerous. Thus, I have evolved an alternate assignment that I
Chapter 16: Advertising, Public Relations, and Sales Promotion
17
also offer to the students each semester. That is, instead of an illegal product or service, they may
elect to take some current product designed for people and turn it into a product for a specific
animal. Some examples in this alternate category include “Minute Mice” for cats, claw polish for
tigers, and bras for cows (all of which were invented by past students). The same guidelines that
apply to the illegal ad also apply to the animal ad. Students may select either assignment. The
vast majority pick the illegal product.
The students really enjoy this assignment. I have had students ask me the first day of class if they
were going to get to do this during the semester! They actually look forward to it! As a matter of
fact, I suspect it is one of the reasons why students are willing to sign up for an auditorium
section of Marketing Principles rather than one of the smaller sections.
I warn the students that these assignments will not be returned to them. I destroy all but the best
ones from each semester. That way, the new students must do the work and cannot simply copy
some former student’s efforts. I put some of the best ads up on my office walls. It cheers up the
“institutional look,” and students come by to see if their efforts were so honored.
Application 2
In this age of 24-hour cable news channels, tabloid news shows, and aggressive local and
national news reporters intent on exposing corporate wrongdoing, one of the most important
skills for a manager to learn is how to deal effectively with the press. Test your ability to deal
effectively with the press by putting yourself in the following situation. To make the situation
more realistic, read the scenario and then give yourself two minutes to write a response to each
question.
Purpose: To give students an opportunity to role-play crisis management.
Setting It Up: This exercise works well for pair work or group work. The example is dramatic in
nature, supposing a television station’s camera crew has shown up unannounced at your place of
business to do an exposé. Students are given a limited time to answer the interviewer’s questions
and no time to prepare the responses. Consider sending teams to the university’s audio-visual
center to videotape their dramatic role play. Students could watch the videos in class and then
determine how the responses will “play” in the media. As an alternative to the dramatic role-play
in the text, you can use the original Great Idea below.
Activities
Today in the nation’s capital, a public interest group held a press conference to release the results
Chapter 16: Advertising, Public Relations, and Sales Promotion
18
of a study that found that the food sold in most Chinese restaurants is high in fat. The group
claims that the most popular Chinese dishes, including orange chicken, pork fried rice, and
Hunan beef, contain nearly as much fat as the food you get from fast-food chains like
McDonald’s, Wendy’s, and Burger King. (Much of it is fried or is covered with heavy sauces.)
Furthermore, the group says that customers who hope to keep their cholesterol and blood
pressure low by eating Chinese food are just fooling themselves.
A TV reporter from Channel 5 called you at Szechuan Palace, your Szechuan-style Chinese
restaurant, to get your response to this study. When he and the camera crew arrived, he asked
you the following questions:
1. A new study released today claims that food sold in Chinese restaurants is on average
nearly as fattening as that sold at fast-food restaurants. How healthy is the food that you
serve at Szechuan?
2. Get the camera in close here [camera closes in to get the shot] because I want the audience
at home to see that you don’t provide any information on your menu about calories,
calories from fat, or cholesterol. Without this information [camera pulls back to get a
picture of you and the reporter], how can your customers know whether the food that you
serve is healthy for them?
3. These new studies were based on lunches and dinners sampled from Chinese restaurants
across the nation. A local company, Huntington Labs, has agreed to test foods from local
restaurants so that we can provide accurate information to our viewers. Would you agree to
let us sample the main dishes in your restaurant to test the level of calories, calories from
fat, and cholesterol? Furthermore, can we take the cameras into your restaurant so that we
can get your customers’ reactions to these studies?
This exercise was inspired by the following Great Idea in Teaching Marketing:
Jack K. Mandel, Nassau Community College
Putting Students “In the Line of Fire” to Learn Crisis Management Techniques
The concept of crisis management is becoming an important topic for marketing and public
relations classes. As companies continue to globalize, seek to make their staffing more culturally
diverse, and sensitize themselves to community needs and concerns, the role of influencing
public opinion is growing.
I have incorporated fictitious crisis situations (based on actual news events) that students must
respond to. They are asked to assume the role of a Public Relations Director for XYZ
Corporation and lead a press conference to address an issue of some local or national concern,
such as pollution of the environment.