Lecture M: Marketing (4/e) - Chapter 18: Advertising, public relations, and sales promotions

ission (FCC) (1934)

Regulates interstate and
international communications by
radio, television, wire, satellite,
and cable.

Enforces restrictions on
broadcasting material that
promotes lotteries (with some
exceptions); cigarettes, little
cigars, or smokeless tobacco
products; or that perpetuates a
fraud. Also enforces laws that
prohibit or limit obscene, indecent,
or profane language.

Food and Drug
Administration (1930)

Regulates food, dietary
supplements, drugs, cosmetics,
medical devices (including
radiation emitting devices such as
cell phones), biologics (biological
issues), and blood products.

Regulates package labeling and
inserts, definition of terms such as
“light” and “organic,” and required
disclosure statements (warning

labels, dosage requirements,
etc.).

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Public Relations

PR Element

Function

Publications: Brochures, special-purpose singleissue publications such as books

Inform various constituencies about the activities
of the organization and highlight specific areas of
expertise.

Video and audio: Programs, public service
announcements

Highlight the organization or support causerelated marketing efforts.

Annual reports

Give required financial performance data and
inform investors and others about the unique
activities of the organization.

Media relations: Press kits, news releases,

speeches, event sponsorships

Generate news coverage of the organization’s
activities or products/services.

Electronic media: Websites, e-mail campaigns

Websites can contain all the previously mentioned
toolbox elements, while e-mail directs PR efforts
to specific target groups.

TOMS Shoes Website
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

check yourself

•

•

Why do companies use public relations as
part of their IMC strategy?
What are the elements of a public relations
toolkit?

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Types of Sales Promotion
Promotion

Advantages

Disadvantages

Coupons

• Stimulates demand.
• Allows for direct tracing of sales.

• Has low redemption rates.
• Has high cost.

Deals

• Encourages trial.
• Reduces consumer risk.

• May reduce perception of value.

Premiums

• Builds goodwill.
• Increases perception of value.

• Consumers buy for premium, not product.
• Has to be carefully managed.

Contests

• Increases consumer involvement.
• Generates excitement.

• Requires creativity.
• Must be monitored.

Sweepstakes

• Increases involvement with the product.

• Sales often decline after the sweepstakes is over.

Samples

• Encourages trial.
• Offers direct involvement.

• Has high cost to the firm.

Loyalty Programs

• Creates loyalty.
• Encourages repurchase.

• Has high cost to the firm.

POP Displays

• Provides high visibility.
• Encourages brand trial.

• Is difficult to get a good location in the store.
• Can be costly to the firm.

Rebates

• Stimulates demand.
• Increases value perception.

• Is easily copied by competitors.
• May just advance future sales.

Product Placement

• Displays products nontraditionally.
• Demonstrates product uses.

• Firm often has little control over display.
• Product can be overshadowed.
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Evaluated Sales Promotions 
using Marketing Metrics

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

check yourself

•

•

What are various forms of sales
promotions?
What factors should a firm consider when
evaluating a sales promotion?

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Glossary
An advertising plan is a subsection of the firm’s
overall marketing plan that explicitly analyzes the
marketing and advertising situation, identifies the
objectives of the advertising campaign, clarifies a
specific strategy for accomplishing those
objectives, and indicates how the firm can
determine whether the campaign was successful.

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Glossary
A continuous advertising schedule runs
steadily throughout the year and therefore is
suited to products and services that are
consumed continually at relatively steady rates
and that require a steady level of persuasive
and/or reminder advertising.

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Glossary
A flighting advertising schedule is implemented
in spurts, with periods of heavy advertising
followed by periods of no advertising.

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Glossary
Institutional advertisements inform, persuade,
and remind consumers about issues related to

places, politics, an industry, or a particular
corporation.

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Glossary
Media buy is the actual purchase of airtime or
print pages.

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Glossary
The media mix is the combination of the media
used and the frequency of advertising in each
medium.

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Glossary
Media planning is the process of evaluating and
selecting the media mix that will deliver a clear,
consistent, compelling message to the intended
audience.

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Glossary
Product-focused advertisements focus on
informing, persuading, or reminding customers
about a specific product or service.

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Glossary
Public service advertising (PSA) focuses on
public welfare and generally is sponsored by
nonprofit institutions, civic groups, religious
organizations, trade associations, or political
groups.

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Glossary
A pull strategy is a strategy in which the goal is
to get consumers to pull the product into the
supply chain by demanding it.

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Glossary
A pulsing advertising schedule combines the
continuous and flighting schedules by maintaining
a base level of advertising but increasing
advertising intensity during certain periods.

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Glossary

A push strategy is designed to increase demand
by focusing on wholesalers, distributors, or sales
people.

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