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Chapter 16: Advertising, Public Relations, and Sales Promotion
1
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
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
© 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.
Chapter 16: Advertising, Public Relations, and Sales Promotion
2
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
I have incorporated fictitious crisis situations (based on actual news events) that students must
After each student issues a policy statement citing the stance the company is taking, the
classroom (press conference) is opened up to other students. Here is where the fun begins.
Selected students are previously chosen by me (the instructor) to role-play specific publics and to
raise critical and timely questions to the public relations director standing before them. For
example, I will have one young lady play a production worker who feigns crying because she is
Teaching Tip for This Exercise: Always select at least four volunteers to allow different
viewpoints and approaches. Ask each student to wait outside of the classroom to guarantee that
© 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.
Chapter 16: Advertising, Public Relations, and Sales Promotion
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Here is an example:
Chemo Technology Corporation
Riverhead, NY
Situation: Chemco Technology Corporation is a large metalworking manufacturer that employs
over 500 Nassau and Suffolk residents in Riverhead, LI.
Founded in 1948, this publicly held company has seen its share value increase from $3 to $67
(plus annual dividends). Many shareholders live on Long Island and admire the company. Now
The New York State Environmental Protection Agency is planning to indict the company, and the
media is publicizing the incident.
Your Challenge: You are Director of Community Relations at Chemco Technology Corporation.
Prepare a written statement based on a plan of action to deal with the crisis.
Ethics Exercise
Creative Advertising Agency has been asked to help its largest client improve its corporate image
after a highly publicized product recall. The client requests a television advertisement
highlighting the company’s generous donation of products to low-income families. The only such
donation the company has made, however, is a donation of the recalled products. The account
executive fears promoting the donation could cause further consumer backlash, but the client
continues to press for the spot.
1. Should Creative Advertising meet the client’s expectations (i.e., create the promotional
spot) or risk losing the account? Explain your reasoning.
© 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.
Chapter 16: Advertising, Public Relations, and Sales Promotion
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Students’ answers will vary. This question elicits a free response from the students. A way
to use this as a class activity is as follows: You may wish to have students divide into three
2. What does the AMA Code of Ethics say about truth in advertising? Go to
http://www.marketingpower.com, and review the code. Then write a brief paragraph
on what the AMA Code of Ethics contains that relates to this issue.
Students’ answers will vary. The AMA Code of Ethics is very clear in its position on truth
in advertising. It states that the marketer’s responsibilities include “avoidance of false or
Video Assignment: BoltBus
BoltBus is Greyhound’s curbside, express bus service. BoltBus operates primarily in the
Northeast between major hubs, with some other services in the Northwest. This clip covers how
BoltBus reaches its target markets through advertising, promotion, and social media.
1. Which of the following appeals would be the BEST choice for BoltBus to use in its
advertising?
a. Health
b. Fun and pleasure
c. Environmental consciousness
d. Vanity and egoism
2. Identify which of the following would be the correct attribute/benefit combination for
BoltBus.
a. Boltbus is a curbside bus service operating on the Southwest Airlines model
© 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.
Chapter 16: Advertising, Public Relations, and Sales Promotion
5
that gives customers reservations and comfort!
b. Boltbus is a curbside bus service operating between major metropolitan
areas that has Wi-Fi and plugs for each seat—not to mention great leg room!
c. Boltbus is a curbside bus service operating between major metropolitan
areas that gets you there quickly, comfortably, and with a smile!
d. BoltBus is an express type bus service that lets you order your ticket online
and avoid bus stations by hopping on the bus from the street corner!
3. Which of the following would be a good example of BoltBus’s unique selling
proposition?
a. Low-cost travel, from one curb-side to the next, no terminals
necessary!
b. Getting you there without a care—with plenty of money to spare! (Not to
mention extra battery life from our plugs and the roomy seats with extra
leg room)
c. Nonstop service from your favorite cities, at a price that won’t break the
bank!
d. We can get you anywhere, just show us how to go, we’ll make sure
you’re able to show!
4. A loyalty program, such as the one used by BoltBus, is an example of:
a. a type of trade allowance
b. a product benefit
c. an advertising appeal
d. a tool for consumer trade promotion
© 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.
Chapter 16: Advertising, Public Relations, and Sales Promotion
6
5. Based on what you saw in this video, which type of consumer does BoltBus
target?
a. Loyal customers
b. Price buyers
c. Brand switchers
d. Competitor’s customers
6. What is BoltBus’s primary media selection for advertising?
a. The Internet
b. Radio stations
c. Billboards
d. Magazines
Case Assignment: KFC
Several years ago, but already many years after the company stopped featuring the real Colonel
Sanders in their ads, Kentucky Fried Chicken officially changed their name to KFC. The
However, in recent years, KFC has decided that instead of distancing themselves from the
“We were thinking about, ‘What’s our North Star?’ And our North Star is the Colonel,
© 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.
Chapter 16: Advertising, Public Relations, and Sales Promotion
7
With that in mind, KFC launched an advertising campaign featuring a variety of Colonel
The campaign launched in 2015, featuring Saturday Night Live alumnus Darrell
Six months later, Norm MacDonald took on the role. MacDonald’s ads poked fun at the
In the first non-authentic portrayal, George Hamilton became the “extra crispy Colonel”
KFC launched their latest iteration of Sanders just in time for football season. Rob
Riggle, best known for his appearances on the Daily Show and Saturday Night Live, depicts the
Riggle was selected after people on the Internet began calling for the company to use a
The campaign has paid off for Yum Brands (KFC’s parent company). In July 2016, KFC
Hochman said the company is trying to embrace its founder, not just in advertising but in
philosophy. They will be subtly moving back to the name “Kentucky Fried Chicken.”
© 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.
Chapter 16: Advertising, Public Relations, and Sales Promotion
8
Sources: D. Mann, “KFC and the Four Colonels: It’s All Part of a Plan,” Louisville Business
First, July 1, 2016, accessed October 20, 2016,
That,” Who2, June 30, 2016, accessed October 20, 2016,
Totey, “George Hamilton Is the ‘Extra Crispy Colonel’ – Why KFC Keeps Switching the
Actors,” Inquisitr, June 27, 2016, accessed October 20, 2016,
September 8, 2016, accessed October 20, 2016,
TRUE/FALSE
1. How a company chooses to advertise is ultimately of no real consequence to anyone but them.
PTS: 1 OBJ: LO: 16-1 TOP: AACSB: Reflective Thinking
KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge
2. George Hamilton’s “Extra Crispy” KFC commercial is part of an advertising campaign.
PTS: 1 OBJ: LO: 16-3 TOP: AACSB: Reflective Thinking
KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge
3. The Rob Riggle commercials are considered advergaming because they play during football
games and are targeting football fans.
PTS: 1 OBJ: LO: 16-4 TOP: AACSB: Reflective Thinking
© 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.
Chapter 16: Advertising, Public Relations, and Sales Promotion
9
KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge
4. Airing fried chicken commercials during football games is a wise move for KFC as that
timeslot has a large reach.
PTS: 1 OBJ: LO: 16-4 TOP: AACSB: Reflective Thinking
KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge
5. The rumor that “Kentucky Fried Chicken” had to legally change their name to “KFC” because
of the use of mutant chicken parts was a public relations nightmare.
PTS: 1 OBJ: LO: 16-5 TOP: AACSB: Reflective Thinking
KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge
MULTIPLE CHOICE
1. Darrell Hammond’s and Norm McDonald’s KFC commercials served as __________
advertising.
a. institutional
b. product
c. advocacy
d. pioneering
PTS: 1 OBJ: LO: 16-2 TOP: AACSB: Reflective Thinking
KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge
2. Jim Gaffigan’s commercial served as __________ advertising.
a. institutional
b. product
c. advocacy
d. pioneering
© 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.
Chapter 16: Advertising, Public Relations, and Sales Promotion
10
PTS: 1 OBJ: LO: 16-2 TOP: AACSB: Reflective Thinking
KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge
3. KFC’s main medium for their new colonel campaign was __________.
a. magazines
b. television
c. radio
d. outdoor media
PTS: 1 OBJ: LO: 16-4 TOP: AACSB: Reflective Thinking
KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge
4. Which of the following is an example of a seasonal media schedule?
a. KFC focusing their advertising campaigns to football season
b. Coopertown sunscreen being advertised during summer
c. Sudafed cold tablets advertising heavier during cold season
d. All of these
PTS: 1 OBJ: LO: 16-4 TOP: AACSB: Reflective Thinking
KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge
5. Showing football players eating KFC at a party in a major Hollywood sports film would be an
example of __________.
a. new product publicity
b. product placement
c. consumer education
d. sponsorship
PTS: 1 OBJ: LO: 16-5 TOP: AACSB: Reflective Thinking
KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge
© 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.
