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PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong
chapter 6

Advertising, Sales
Promotion
and Public Relations
Copyright 1999 Prentice Hall

What is Advertising?
Any form of nonpersonal presentation
and promotion of ideas, goods, or
services by an identified sponsor.
U.S. advertisers spend in excess of $175
billion each year.
Advertising is used by:
Business firms,
Nonprofit organizations,
Professionals,
Social Agencies.

Copyright 1999 Prentice Hall

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Major Decisions in Advertising

Objectives Setting

Budget Decisions

Message Decisions

Media Decisions

Campaign Evaluation
Copyright 1999 Prentice Hall

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Setting Objectives

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Advertising Objectives
Specific Communication Task
Accomplished with a Specific Target Audience
During a Specific Period of Time

Informative Advertising

Persuasive Advertising

Build Primary Demand

Build Selective Demand

Comparison Advertising

Reminder Advertising

Compares One Brand to

Another

Keeps Consumers Thinking

About a Product.

Copyright 1999 Prentice Hall

Setting the Advertising Budget

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Advertising Budget Methods

Affordable, Percentage of Sales, Competitive-Parity and
Objective-and-Task
Product
Differentiation

Advertising
Frequency

Stage in the Product

Life Cycle

Factors in
Setting the
Advertising
Budget

Competition
and Clutter
Copyright 1999 Prentice Hall

Market
Share

Click
to add Strategy
title
Advertising

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Creating Advertising Messages

Plan a Message Strategy
General Message to Be Communicated to Customers

Develop a Message
Focus on
Customer Benefits

Creative Concept
Big Idea
Visualization or Phrase
Advertising Appeals
Combination of Both
Meaningful
Believable
Distinctive

Copyright 1999 Prentice Hall

Advertising Strategy
Selecting Advertising Media
Step 1. Decide on Reach, Frequency,
and Impact
Step 2. Choosing Among Major Media Types
Media Habits of Target Consumers
Nature of the Product
Type of Message
Cost

Step 3. Selecting Specific Media Vehicles

Specific Media Within a Given Type, i.e. Magazines.
Must Balance Media Cost Against Media Factors:
Audience Quality & Attention, Editorial Quality

Step 4. Deciding on Media Timing

Scheduling of Advertising Over the Course of a Year
Pattern of Ads: Continuity or Pulsing
Copyright 1999 Prentice Hall

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Advertising Evaluation

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Advertising Program Evaluation

Communication Effects

Sales Effects

Is the Ad Communicating Well?

Is the Ad Increasing Sales?

Copyright 1999 Prentice Hall

Ways to Handle Advertising

Sales Departments in
Small Companies

Advertising Departments
in Larger Companies

Advertising Agency
Firm that Assists Companies
in Planning, Preparing,
Implementing and
Evaluating Their
Advertising
Programs.

Copyright 1999 Prentice Hall

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International Advertising Decisions

Adaptation of
Global Advertising

Advertising Media Costs

& Availability

Regulation of
Advertising Practices

Copyright 1999 Prentice Hall

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What is Public Relations?

Building good relations with the companys
various publics by obtaining favorable
publicity, building up a good corporate
image and handling or heading off
unfavorable rumors, stories and events.
Major functions are:
Press Relations or Press Agentry
Product Publicity
Public Affairs
Lobbying
Investor Relations
Development
Copyright 1999 Prentice Hall

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Major Public Relations Tools

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Web Site
Public
Service
Activities

News

Corporate
Identity
Materials

Speeches

Special
Events

Audiovisual
Materials
Written
Materials
Copyright 1999 Prentice Hall