Instructor Manual
Lamb/Hair/McDaniel, MKTG 13E, 9780357127810; Chapter 16: Advertising, Public Relations, and
Sales Promotion
Table of Contents
Purpose and Perspective of the Chapter …………………………………………………………………………. 2
Cengage Supplements …………………………………………………………………………………………………… 2
Learning Outcomes ……………………………………………………………………………………………………….. 3
Complete List of Chapter Activities and Assessments ……………………………………………………… 3
Key Terms ……………………………………………………………………………………………………………………… 4
What’s New in This Chapter ……………………………………………………………………………………………. 7
Chapter Outline …………………………………………………………………………………………………………….. 8
Discussion Questions …………………………………………………………………………………………………… 19
Additional Activities and Assignments …………………………………………………………………………… 20
Additional Resources ……………………………………………………………………………………………………. 26
External Videos or Playlist ……………………………………………………………………………………………………….. 26
Appendix …………………………………………………………………………………………………………………….. 27
Generic Rubrics ……………………………………………………………………………………………………………………… 27
Standard Writing Rubric …………………………..……………………………………………………………………………… 27
Standard Discussion Rubric ……………………………………………………………………………………………………… 29
Purpose and Perspective of the Chapter
The purpose of this chapter is to learn about the effects of advertising on market share and
consumers. Advertising helps marketers increase or maintain brand awareness and,
subsequently, market share. Advertising is any form of nonpersonal, paid communication
in which the sponsor or company is identified. The two major types of advertising are
Cengage Supplements
The following product-level supplements provide additional information that may help you
in preparing your course. They are available in the Instructor Resource Center.
• Transition Guide (provides information about what’s new from edition to edition)
• Educator’s Guide (describes assets in the platform with a detailed breakdown of
activities by chapter with seat time)
Learning Outcomes
The following learning outcomes are addressed in this chapter:
16-1 Discuss the effects of advertising on market share and consumers
16-2 Identify the major types of advertising
Complete List of Chapter Activities and Assessments
For additional guidance refer to the Teaching Online Guide.
Chapter
Learning
Objective
PPT slide
Activity/Assessment
Duration
Certification
Standard
N/A
MindTap: Why Does
Media Type Matter to
Me?
5 minutes
BUSPROG:
Reflective
Thinking
DISC: Promotion
16-1
MindTap: Learn It 16-1:
The Effects of
Advertising
5 minutes
BUSPROG:
Analytic
DISC: Promotion
16-2
MindTap: Learn It 16-2:
The Major Types of
Advertising
BUSPROG:
Analytic
DISC: Promotion
16-4
MindTap: Learn It 16-4:
Media Decisions in
Advertising
5 minutes
BUSPROG:
Analytic
DISC: Strategy
16-5
MindTap: Learn It 16-5:
Public Relations
5 minutes
BUSPROG:
Analytic
DISC: Promotion
16–1 – 16–6
MindTap: Assignment
25 minutes
BUSPROG:
Analytic
DISC: Marketing
MindTap: Case Activity
15 minutes
BUSPROG:
Analytic
DISC: Strategy
16-2
16
Group Activity 1 in PPT
15-20 minutes
BUSPROG:
Analytic
DISC: Promotion
16-3
25
Discussion 1 in PPT
5-10 minutes
BUSPROG:
Analytic
DISC: Promotion
16-4
42
Knowledge Check 2 in
5 minutes
BUSPROG:
Analytic
DISC: Promotion
Technology
Online/Computer
16-6
64
Group Activity 2 in PPT
20-25 minutes
BUSPROG:
DISC: Promotion
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Key Terms
advergaming: placing advertising messages in web-based, mobile, console, or handheld
video games to advertise or promote a product, service, organization, or issue.
advertising appeal: a reason for a person to buy a product.
advocacy advertising: a form of advertising in which an organization expresses its views
on controversial issues or responds to media attacks.
audience selectivity: the ability of an advertising medium to reach a precisely defined
market.
comparative advertising: a form of advertising that compares two or more specifically
named or shown competing brands on one or more specific attributes.
cooperative advertising: an arrangement in which the manufacturer and the retailer split
the costs of advertising the manufacturer’s brand.
cost per click: the cost associated with a consumer clicking on a display or banner ad.
cost per contact (cost per thousand [CPM]): the cost of reaching one member of the
target market.
coupon: a certificate that entitles a consumer to an immediate price reduction when the
product is purchased.
infomercial: a 30-minute or longer advertisement that looks more like a television talk
show than a sales pitch.
medium: the channel used to convey a message to a target market.
pioneering advertising: a form of advertising designed to stimulate primary demand for a
new product or product category.
point of purchase (POP): display a promotional display set up at the retailer’s location to
build traffic, advertise the product, or induce impulse buying.
publicity: an effort to capture media attention, often initiated through press releases that
further a corporation’s public relations plans.
pulsing media schedule: a media scheduling strategy that uses continuous scheduling
throughout the year coupled with a flighted schedule during the best sales periods.
sampling: a promotional program that allows the consumer the opportunity to try a
product or service for free.
seasonal media schedule: a media scheduling strategy that runs advertising only during
times of the year when the product is most likely to be used.
sponsorship: a public relations strategy in which a company spends money to support an
issue, cause, or event that is consistent with corporate objectives, such as improving brand
awareness or enhancing corporate image.
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What’s New in This Chapter
The following elements are improvements in this chapter from the previous edition:
• New examples of how advertising expenditures are changing in total and by
industry
• New content on expanded use of advocacy advertising
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Chapter Outline
In the outline below, each element includes references (in parentheses) to related content. “LO
CH–##” refers to the chapter learning outcome; “PPT Slide #” refers to the slide number in the
PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor Resource
1. The Effects of Advertising (16-1, PPT Slide 3, DISC: Promotion)
a. Advertising is a popular form of promotion, especially for consumer packaged
goods and services. Typically, promotional spending is divided into:
catalogs, product placement, and event marketing
b. The United States, China, Japan, the United Kingdom, and Germany spend the most
on advertising. Advertising and marketing services, agencies, and other firms that
c. Advertising and Market Share: Advertising budgets for most successful consumer
brands in the United States are spent on maintaining brand awareness and market
share. New brands with a small market share tend to spend proportionately more
of their promotion budget for advertising and sales promotion than those with a
large market share for two reasons:
• Beyond a certain level of spending for advertising and sales promotion,
habits.
d. The Effects of Advertising on Consumers: Advertising may:
• Affect peoples’ daily lives by informing them about products and services and
influencing their attitudes, beliefs, and ultimately their purchases
2. Major Types of Advertising (16-2, PPT Slide 9, DISC: Promotion)
a. A firm’s promotional goals determine the type of advertising it uses:
• Institutional advertising – a form of advertising designed to enhance a
company’s image rather than promote a particular product.
• Product advertising – a form of advertising that touts the benefits of a specific
good or service.
b. Institutional Advertising: Institutional, or corporate, advertising is designed to
establish, change, or promote the corporation’s identity as a whole. The purpose is
Example: During Super Bowl LI, Airbnb aired a new commercial centered on the
hashtag #WeAccept, that featured the text, “We believe no matter who you are,
where you’re from, who you love, or who you worship, we all belong. The world is
more beautiful the more you accept.” Following the Super Bowl, Airbnb’s ad
garnered more than 4.5 million views on YouTube and 342,000 likes on Facebook.
c. Product Advertising: The product’s stage in its life cycle often determines which
type of product advertising is used: pioneering, competitive, or comparative
advertising.
Instructor Manual: Lamb/Hair/McDaniel, MKTG 13E, 9780357127810; Chapter 16: Advertising, Public Relations, and Sales
Promotion
o Show subtle differences between competitive brands
o Build recall of a brand name
o Create a favorable attitude toward the brand
• Comparative Advertising: Comparative advertising is a form of advertising that
compares two or more specifically named or shown competing brands on one or
3. Creative Decisions in Advertising (16-3, PPT Slide 18, DISC: Creativity)
a. An advertising campaign is a series of related advertisements focusing on a
common theme, slogan, and set of advertising appeals. Before creative work can
begin on an advertising campaign, it is important to determine what goals or
b. Identifying Product Benefits: In advertising, the goal is to sell the benefits of the
product, not its attributes, because customers buy benefits. A benefit should answer
the consumer’s question, “What’s in it for me?” Benefits might include such things as
convenience, pleasure, improved health, savings, or relief. A quick test to determine
whether you are offering attributes or benefits in your advertising is to ask “So?” as
done in the following example:
f. Criteria for evaluation of an appeal include desirability, exclusiveness, and
believability. The advertising appeal must make a positive impression on and be
desirable to the target market. It must also be exclusive or unique. Consumers must
be able to distinguish the advertiser’s message from competitors’ messages. Most
importantly, the appeal should be believable and shouldn’t make extravagant
claims. The unique selling proposition is a desirable, exclusive, and believable
advertising appeal selected as the theme for a campaign.
PRESENTATION VISUAL: Exhibit 16.1 Common Advertising Appeals
Appeal
Goal
Profit
Lets consumers know whether the product will save them money,
make them money, or keep them from losing money.
Health
Appeals to those who are body conscious or who want to be healthy;
love or romance is often used in selling cosmetics and perfumes.
Admiration
Frequently highlights celebrity spokespeople.
Convenience
Is often used for fast-food restaurants and microwavable foods.
Fun and
Pleasure
Are the keys to advertising vacations, beer, amusement parks, and
more.
Environmental
Consciousness
Centers around protecting the environment and being considerate
g. Executing the Message: Message execution is the way an advertisement portrays
its information. Any ad should immediately draw the attention of the reader, viewer,
or listener. The advertiser must then use the message to hold interest, create desire
for the good or service, and ultimately motivate a purchase. Message execution is
one of the most creative elements of an advertisement. Executional styles often
dictate what type of media is to be employed to convey the message. Common
executional styles for advertising include:
• Slice-of-Life
• Lifestyle
• Scientific
h. Postcampaign Evaluation: Evaluating an advertising campaign can be the most
demanding task facing advertisers. Digital advertising and social media generate
more data that enable marketers to better understand how well campaigns work.
Testing ad effectiveness can be done before and/or after the campaign. Before a
4. Media Decisions in Advertising (16-4, PPT Slide 27, DISC: Promotion)
a. Creating an ad campaign involves several additional decisions, such as the choice
of medium, which is the channel used to convey a message to a target market.
Media planning is the series of decisions advertisers make regarding the selection
and use of media, allowing the marketer to optimally and cost-effectively
b. Media Types:
• Newspapers: Newspapers are one of the oldest forms of media, although they
have significantly declined in popularity. Advantages include geographic
• Magazines: The cost per contact in magazine advertising is usually high as
compared with the cost of advertising in other media. However, the cost per
potential customer may be much lower because magazines are often targeted to
specialized audiences, thus reaching more potential customers.
• Television: Television media include network television, independent stations,
cable television, and direct broadcast satellite television. For every hour of
television programming, an average of 20 minutes is dedicated to nonprogram
material (ads, public service announcements, and network promotions).
• The Internet: Online advertising includes search engine marketing, display
advertising, social media advertising, email marketing, and mobile marketing.
Programmatic advertising uses technology to match audiences and websites
to advertise or promote a product, service, organization, or issue.
• Out-Of-Home Media (OOH): Outdoor advertising is a low-cost medium that takes a
variety of forms, including billboards, skywriting, giant inflatables, signs in sports
arenas, and ads painted on cars, among others. It is ideal for promoting
convenience products and services as well as for directing consumers to local
businesses. It can be customized to local marketing needs. Exposure frequency
is very high, yet the amount of clutter from competing ads is very low.
c. Media Selection Considerations: The media mix is the combination of media to be
used for a promotional campaign. Media mix decisions are typically based on
several factors:
• Cost per contact [cost per thousand (CPM)] is the cost of reaching one
member of the target market. It enables an advertiser to compare the relative
costs of specific media vehicles. Advertisers pick the vehicle with the lowest cost
per contact to maximize advertising punch for the money spent.
• Frequency is the number of times an individual is exposed to a given message
during a specific period. Because the typical ad is short-lived, advertisers repeat
their ads so that potential customers will remember the message. In terms of
frequency, the optimal number of exposures varies by medium, product
category, and type of ad.
• Audience selectivity refers to the ability of an advertising medium to reach a
precisely defined market.
Promotion
advertisement is repeated. So, marketers should evaluate reach and frequency in
assessing the effectiveness of advertising. Advertisers also evaluate the qualitative
e. Media Scheduling: After choosing the media for the advertising campaign,
advertisers must schedule the ads. A media schedule designates the media to be
used, the vehicles (e.g., specific publications or programs), and the insertion dates of
advertising. Four types of media schedules include:
• Continuous media schedule – advertising is run steadily throughout the
advertising period; used for products in the later stages of the product life cycle
f. Research suggests that it is likely more important to reach a potential customer as
close as possible to the time at which a purchase is being considered. Therefore, the
advertiser should maintain a continuous media schedule over as long a period of
time as possible. This is called recency planning. Recency planning’s main premise is
that advertising works by influencing the brand choice of people who are ready to
buy.
5. Public Relations (16-5, PPT Slide 43, DISC: Promotion)
a. Public relations is the element in the promotional mix that evaluates public
attitudes, identifies issues that may elicit public concern, and executes programs to
gain public understanding and acceptance. It is a vital link in a forward-thinking