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Chapter 12

Advertising, Public Relations


And Sales Promotion

Prepared by
Abellera, Joseph M.
Montecillo, Danilo
Urdaneta, Jessavel
Marga, Reign

1
Advertising Defined

Advertising may be define


as any form of non-personal
presentation and promotion
of ideas, goods or services,
by an identified sponsor.

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Why Must a Firm advertise

Advertising Creates
Awareness
Advertising
Strengthens Attitudes
Advertising Leads to
Action

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Factors to Determine Advertisability

1. Primary Demand
2. Buying Motives
3. Hidden Qualities
4. Differential Advantage; and
5. Money
Types of Advertisers

• Producers of consumer goods,


industrial goods, and services

• Middlemen such as wholesalers and


retailers

• Non-profit organizations like the


Social Security System, the Philippine
Airlines, and Development Bank of
the Philippines
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Types of Advertisement

Product Advertisement
Pioneer Advertisement
Competitive Advertisement
Comparative Advertisement
Institutional Advertisement

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Types of Advertisement

CONSUMER
NEWSPAPER RADIO TELEVISION
MAGAZINS

OUTDOOR DIRECT YELLOW


CABLE TV
AD MAIL PAGES

POINT-OF- THE
TRANSIT PURCHASE INTERNET CELLPHONES

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Newspaper

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Consumer Magazine

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Radio

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Television

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Outdoor Ad

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Direct Mail

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Cable TV

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Yellow Pages

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Transit

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Point-of-Purchase

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The Internet

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Cellphone

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PUBLIC
RELATIONS

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Public Relations Defined

Public relations is a form of


promotion designed to
favorably influence
attitudes toward an
organization, its products,
and its policies.
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Two Components of Public Relations

PUBLICITY

PUBLIC AFFAIRS

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Publicity

Publicity – is the generation


of news about a person,
product, or organization
that appears in broadcast
or electronic media.

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Publicity

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Forms of Publicity

NEWS RELEASE

PRESS AGENTRY

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News Release

News release – is a brief


memo or report containing
news information, such as
the announcement of a new
product, or change in
management.
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News Release

The purpose of news


release is to inform a
newspaper, radio station, or
other medium, of an idea
for a story

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Press agentry

Press agentry – is the


planning and staging of an
event in order to generate
publicity. The tools of press
agentry are:

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Tools of Press Agentry

• which contain information about


PRESS KITS the event and key information for
publication in news stories.

• which are actually listings of


SPEAKER’S
company officials who will speak at
BUREAUS
civic and industry events

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Two Components of Public Relations

PUBLICITY

PUBLIC AFFAIRS

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Public Affairs

Public affairs – is that part


of public relations that
deals with community
groups. It consist of two
types:

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Two Types of Public Affairs

LOBBYING

COMMUNITY INVOLVEMENT

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Lobbying

Lobbying – is the attempt


to persuade a government
official or governing body
to adopt policies,
procedures, or legislation
in favor community
involvement.
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Two Types of Public Affairs

LOBBYING

COMMUNITY INVOLVEMENT

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Community Involvement

Community involvement – is
that type of public affairs
which undertakes company
participation in community
activities like sponsoring a
sports event, a musical show,
or scholarship programs.
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PUBLIC
RELATIONS

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Sales Promotion

Sales promotion – is a short-


term inducement of value
offered to arouse interest in
buying good or service. It is
offered to the middleman or
to the final consumer.

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Sales Promotion Objectives
1. To identify and attract new 6. To bring more customers into
customers retail stores

7. To stabilize a fluctuating
2. To introduce a new product
sales pattern

3. To increase the total number


8. To increase reseller
of users for an established
inventories
brand

4. To encourage greater usage 9. To combat or offset


among users competitor’s marketing efforts

5. To educate consumers
10. To obtain more and better
Regarding product
shelf-space and displays38
improvement
Sales Promotion Methods

Promotion techniques encourage or


CONSUMER stimulate consumers to patronize a
SALES specific retailer or to try a new
product

TRADE Promotion stimulates wholesalers


and retailers to carry a firm’s
SALES product and to sell it aggressively.

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Sales Promotion Methods used by Retailers

RETAILERS COUPONS

DEMONSTRATIONS

TRADING STAMPS

POINT-OF-PURCHASE DISPLAYS
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Sales Promotion Technique (New Product)

FREE SAMPLES

PRICE-OFF COUPONS

MONEY REFUNDS

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Sales Promotion Technique (Established Product)

PREMIUMS

CENT-OFF OFFERS

CONSUMER CONTESTS

POINT-OF-PURCHASE DISPLAYS
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