Marketing Management

Part : 07
Promotion
Chapter-18

Managing Mass Communications

Advertising, Sales Promotion, Events and
Public Relations

Marketing Manageme 1
MARKETING MANAGEMENT
12th edition

18
Managing Mass
Communications

Marketing Manageme 2
Kotler
nt Keller
 Chapter Questions
 What steps are involved in developing an advertising program?
 How should sales promotion decisions be made?
 What are the guidelines for effective brand-building events and
experiences?
 How can companies exploit the potential of public relations and
publicity?

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 Advertising

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 Advertising

Advertising is the paid form of non-personal presentation
and promotion of ideas, goods or services by an identified
sponsor.
 In small companies, advertising is handled by someone in the
sales or marketing department, who works with the
advertising agency.
 A large company will often set-up its own advertising
department.

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 Advertising Agency
 Most companies use an outside agency to help create
advertising campaigns and to select and purchase media.
 An Advertising Agency is an independent company that
provides specialized advertising services.
 Today Advertising Agencies are redefining themselves as
“Communication Companies” that assist clients to improve
their overall communications effectiveness by offering
strategic and practical advice on many forms of
communication.

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 Major Advertising Agencies in Pakistan
Sr# Advertising Agency Main Clients
01 JWT Bata, Orient, Hang-Ten
02 Maxus Nestle, Tetrapak, Mitchell’s
03 Orient Advertising Mobilink, Coca-Cola,
Unilever, Nestle, Sony
04 Evernew Lake City, Royal Fans
05 Red PEL, Haleeb
05 Synergy Dawn Bread, Bank Alfalah
06 Blitz Nurpur, Unifoam
07 Lowe & Rauf Rose Petal, Servis
08 Media Network Sufi, Nirala, Master
09 Digital Creations Care, Black Beauty
10 Time & Space Seasons, Treat, Marhaba
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 Product vs Institutional Advertising
 A very basic scheme classifies advertising as Product
Advertising or Institutional Advertising.

a. Product Advertising : An advertisement promoting a specific

product. Example: Ads of brands like Pepsi, Coca-Cola etc.

b. Institutional Advertising : An advertisement designed to

promote an organizational image, stimulate generic demand
for a product, or build goodwill for an industry. Example: Ads
by Health/Dairy Departments to promote milk/tea as a drink.
Example: United Airlines spent millions over the years
communicating its corporate philosophy with the ‘Fly the
Friendly Skies’ campaign.

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 Product vs Institutional Advertising

Product Advertising United Airlines

‘Fly the Friendly Skies’ campaign
Institutional Advertising
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 Advertising Objectives

Informative Persuasive
Advertising Advertising

Reminder Reinforcement
Advertising Advertising

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 Advertising Objectives
 There are generally four advertising objectives.
1. Informative Advertising : To create brand awareness and
knowledge of new products or new features of existing
products. Example : Nestle Milkpak ad featuring more iron
contents in milk.
2. Persuasive Advertising : To create liking, preference and
conviction and purchase of a product or service. Some
persuasive advertising uses Comparative Advertising, which
makes an explicit comparison of attributes of two or more
brands. Example : Ariel ads against Surf Excel.
3. Reminder Advertising : To stimulate repeat purchase.
Example : Coca-Cola or Pepsi ads.

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 Advertising Objectives
4. Reinforcement Advertising : To convince current purchasers
that they made the right choice. Example : Automobile ads
often depict satisfied customers enjoying special features of
their new car.

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 Advertising Objectives

Nestle Milkpak Honda

Informative Advertising Reinforcement Advertising

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 Advertising Objectives

Coca-Cola Ariel
Reminder Advertising Comparative Advertising against
Surf Excel

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 Choosing Among Major Media Types
The major advertising media are as follows.
 Newspapers
 Television
 Direct Mail
 Radio
 Magazines
 Outdoor
 Yellow Pages (a telephone directory of businesses,
categorized according to the product or service provided)
 Newsletter
 Brochures
 Internet

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 Alternative Advertising Options
 For a long time, TV was the dominant medium, however in
recent years, researchers have noticed its reduced
effectiveness; while its costs have risen faster than other
media costs. Therefore many marketers are looking for
alternative advertising media as follows.

a. Place Advertising
b. Product Placement
c. Point-OF-Purchase (POP)

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 Alternative Advertising Options
 Place Advertising or Out-of-Home or Outdoor Advertising
(Billboards, Public Spaces include the placement of traditional
TV and print ads in unconventional places such as movies,
airlines, hotel elevators, and other public spaces. It also
includes the Transit Ads on buses, subways and trains)
 Product Placement (Product Placement has expanded from
movies to all types of TV shows. Cameo Appearance in
movies or TV, Virtual Logos in Sports, Ads in monthly bills,
Branded Entertainment (online mini films) etc.)
 Point-OF-Purchase (POP) (In-store Advertising like ads on
shopping carts, shelves, aisles, floor space etc. as well as
promotion options such as in-store demonstrations, and live
sampling. As per research 70% of all buying decisions are
made in the store. In-store advertising is designed to increase
the number of spontaneous buying decisions)
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 Place Advertising
 Billboards
 Public spaces
 Product placement
 Point-of-purchase

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 Alternative Advertising Options

Transit Ads Virtual Logos In-Store Ads

Outdoor Advertising Product Placement POP Promotions

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 Sales Promotion

Coupons
Trade Shows POP Displays

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 Sales Promotion
 Sales Promotion consists of a collection of incentive tools,
mostly short-term, designed to stimulate quicker or greater
purchase of particular products or services by consumers or
the trade.
 Sales Promotion includes the following.

a. Consumer Promotion (targeted at end consumers)

b. Trade Promotion (targeted at intermediaries)
c. Business and Sales Force Promotion (targeted at business
growth and sales force)

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 Sales Promotion

Consumer
Promotion

Sales
Promotion

Business and Sales Force Trade

Promotion Promotion

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 a) Major Consumer Promotion Tools
 Consumer Promotion is directed at end-consumers. It can be
categorized as either ‘Manufacturer Promotions’ or ‘Retailer
Promotions’. Major consumer promotion tools are as follows.
i. Samples : Offer a free amount of product or service.
ii. Coupons
iii. Cash Refund (Rebates) : A price reduction by the
manufacturer instead of retailer.
iv. Price Packs : A product sold at reduced price mentioned on
the package.
v. Premiums (Gifts)
vi. Frequency Programs : Rewards related to the consumer’s
frequency and intensity in purchasing the company’s
product/service.
vii. Prizes (contents, sweepstakes, games)
viii. Product Warranties
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 a) Major Consumer Promotion Tools
9. Tie-in Promotions : Two or more brands or companies team
up on coupons , refunds, and contests.

10. Point-of-Purchase (POP) Promotion : POP displays and

demonstrations take place at the point-of-purchase or sale.

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 b) Major Trade Promotion Tools
1. Price-off (Off-Invoice or Off-List) : A stated discount off the
list price on each case purchased during a stated time period.

2. Allowance : An amount offered to an intermediary in return

for a large order or performance of a specific activity like
advertising or display.

3. Free Goods : Offers of extra cases of merchandise to

intermediaries who buy a certain quantity.

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 c) Major Business and
Sales Force Promotion Tools
1. Trade Shows and Conventions : Industry associations
organize annual trade shows and conventions. The firms can
get several benefits by participating in such trade shows,
including generating new sales leads, maintaining customer
contacts, introducing new products, meeting new and present
customers etc.
2. Sales Contests : A sales contest aims at inducing the sales
force or dealers to increase their sales results over a stated
period, with prizes (money, trips, gifts, or points) going to
those who succeed.
3. Specialty Advertising : Consists of useful, low-cost items
bearing the company’s name, address or message, like
ballpoints, calendars, key-chains, diaries etc. The salespeople
give those items to prospects and customers.

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 c) Major Business and
Sales Force Promotion Tools

Specialty Advertising Gifts and Awards

Sales Contest

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 Events and Experiences
 It relates to promoting products/services through Sports,
Entertainment tours, Festivals, Fairs, Annual Events, Arts and
Cause Marketing.
 The daily encounters with brands may also affect consumers’
brand attitudes and beliefs.
 Example : Coca-Cola has created a brand experience through
“Everything Coca-Cola in Las Vegas with a 100-foot lighted
Coke bottle as part of the front of the building.
 Example : To create a memorable brand experience, Harley-
Davidson decided to “bring the party to the people” to
celebrate its 100th-year anniversary in 2003. The Centennial
Celebration was a gala of road tours, parades, music, test
rides, exhibits, and exclusive parties.
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 Events and Experiences

‘Everything Coca-Cola’ Harley-Davidson

In Las Vegas-USA Road Tour in USA

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 Public Relations
 Public : A Public is any group that has an actual or potential
interest in or impact on a company’s ability to achieve its
objectives.
 Public Relations, PR : PR involves a variety of programs
designed to promote or protect a company’s image or its
individual products.
 Publicity : Publicity is any communication about an
organization, its products, or policies through the media not
paid for by the organization. Publicity can be good or bad.

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 Public Relations- Major Tools
 The major tools in PR are as follows.
a. Publications (Like annual reports, brochures, articles,
company newsletters, and magazines)
b. Events (Like news conferences, seminars, outings, trade-
shows, exhibits, contests, and anniversaries)
c. Sponsorships (Companies can promote their brands and
corporate name by sponsoring sports and cultural events and
highly regarded causes)
d. News (One of the major tasks of PR professionals is to find
and create favourable news about the company, its products,
and its people, and get the media to accept press releases
and attend press conferences)

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 Public Relations- Major Tools

e. Speeches (Increasingly, company executives must field

questions from the media or give talks at trade associations
or sales meetings, and these appearances can build the
company’s image)

f. Public Service Activities (Companies can build goodwill by

contributing money and time to good causes)

g. Identity Media (Companies need a visual identity that the

public immediately recognizes. The visual identity is carried
by logos, stationery, brochures, signs, business cards,
buildings, uniforms, and dress codes)

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 Public Relations- Major Tools

Yellow Color and Logo of Shell

Company Newsletters
Identity Media
Publications

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 Assignment

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