1. MANAGING ADVERTISING, SALES
PROMOTION, PUBLIC RELATIONS
AND DIRECT MARKETING
ZYREEN LOU B. FARAMIRAN
MA. JOHANNA ELLA A. FACON

2. DEVELOPING AND MANAGING AN
ADVERTISING PROGRAM
Setting the Advertising Objectives
Deciding on the advertising budget

3. WHAT IS ADVERTISING?
 the use of paid media by a seller to communicate
persuasive information about its products, services,
or organization—is a potent promotional tool.
 Advertising takes on many forms (national,
regional, local, consumer, industrial, retail, product,
brand, institutional, etc.)
 designed to achieve a variety of objectives
(awareness, interest, preference, brand recognition,
brand insistence).

4. SETTING THE ADVERTISING OBJECTIVES
 Informative advertising
 aims to create awareness and knowledge of new products or new
features of existing products. (DOVE, SURF, NIDO, AVON)
 Persuasive advertising
 aims to create liking, preference, conviction, and purchase of a
product or service. Uses comparative advertising (TIDE, JOY,
Pampers)
 Reminder advertising
 aims to stimulate repeat purchase of products and services. (OLAY ,
Palmolive, Ponds, JOY)
 Reinforcement advertising
 aims to convince current purchasers that they made the right
choice. (PANTENE,CHOWKING PORK, KOI, SURF)

5. DECIDING ON THE ADVERTISING BUDGET
 Stage in the product life cycle
 New products typically receive large advertising budgets to
build awareness and to gain consumer trial.
 Market share and consumer base
 high market share brands usually require less advertising
expenditure as a percentage of sales to maintain share.
 Competition and clutter
 a brand must advertise more heavily to be heard. Even
simple clutter from advertisements not directly competitive
to the brand creates need for heavier advertising

6.  Advertising frequency
 the number of repetitions needed to put across the brand’s
message to consumers has an impact on the advertising
budget.
 Product substitutability
 brands in a commodity class require heavy advertising to
establish a differential image.

7. CHOOSING THE ADVERTISING MESSAGE
Steps to develop a creative strategy:
 Message generation
 Message evaluation and selection
 Message execution
 Social responsibility review

8. MESSAGE GENERATION
 Linking the brand directly to a single benefit.
(SLENDA, Optic White Colgate)
 Create a character that express the product’s
benefits (Slim woman, Model with white teeth)
 Developing a narrative story with a problem,
episodes related to the problem and outcomes.
(Cebuana Lhuilier, M Lhuilier)

9. MESSAGE EVALUATION AND SELECTION
 A good ad normally focuses on one core selling
proposition.
 Desirability, exclusiveness and believability
 The advertiser should conduct market research to
determine which appeal works best with its target
audience
 Creative brief- (elaboration of positioning statement)
 includes key message, target audience, communication
objective, benefits to promise, support to the promise,
and media to be used

10. MESSAGE EXECUTION
 Message impact depends not only on what it is
said but more important on How it is said:
 Rational positioning- explicit feature or benefit
 Emotional positioning- (McDo’s Kuya. KAREN)
 Can be decisive to highly similar products:
 Detergents, coffee, vodka
 Slice of life, lifestyle, fantasy, mood or image, musical,
personality symbol, technical expertise, scientific
evidence, and testimonial.

11.  Television Ads
 Radio Ads
 Print Ads
 Testimonials
 Celebrity endorsement

12. SOCIAL RESPONSIBILITY REVIEW
 Make sure that creative advertising does not
overstep social and legal norms
 Republic Act No. 7394
 THE CONSUMER ACT OF THE PHILIPPINES
 McDonald’s Commercial banned

13. DECIDING ON MEDIA AND
MEASURING EFFECTIVENESS
Deciding on Reach, Frequency, and Impact
Choosing Among Major Media Types
New media
Allocating the budget
Selecting specific vehicles
Deciding on the media timing
Deciding on the geographical allocation

14. Deciding on reach, frequency and impact
 Media selection
 is finding the most cost- effective media to deliver the desired number and
type of exposures to the target audience.
 Reach
 the number of different persons or households exposed to a particular
media schedule at least once during a specified time period.
 Frequency
 the number of times within the specified time period that an average
person is exposed to the message.
 Impact
 the qualitative value of an exposure through a given medium.

15. CHOOSING AMONG MAJOR MEDIA TYPES
Medium Advantages Limitations
Newspapers Flexibility; timeliness;
good local market
coverage; broad
acceptance; high
believability
Short life; poor
reproduction quality;
small ―passalong‖
audience
Television Combines sight,
sound, and motion;
appealing to the
senses; high attention;
high reach
High absolute cost;
high clutter; fleeting
exposure; less
audience selectivity
Direct mail Audience selectivity;
flexibility; no ad
competition within the
same medium;
personalization
Relatively high cost;
―junk mail‖ image

16. CHOOSING AMONG MAJOR MEDIA TYPES
 Target-audience media habits: for example, radio and
television are the most effective media for reaching
teenagers.
 Product characteristics: media types have different
potentials for demonstration, visualization, explanation,
believability and color.
 Message characteristics
 Cost- television is expensive, whereas newspaper
advertising is relatively inexpensive.

17. SELECTING SPECIFIC VEHICLES
 Circulation- the number of physical units carrying the
advertising.
 Audience- the number of people exposed to the vehicle.
 Effective audience- the number of people with target
audience characteristics exposed to the vehicle.
 Effective ad- exposed audience- the number of people
with target audience characteristics who actually saw
the ad.

18. DECIDING ON MEDIA TIMING
 Carryover – the rate at which the effect of an advertising
expenditure wears out the passage of time.
 Habitual behavior- indicates how much of the buyers repeat
their brand choice in the next period.
 Timing pattern
 BUYER TURNOVER- the rate at which new buyers enter
the market, the higher the rate thermore continuous the
advertisement should be.
 PURCHASE FREQUENCY- the number of times during
the period that the average buyer buys the product.
 FORGETTING RATE- the rate at which the buyer forgets
the brand.

19.  In launching the product
 Continuity- is achieved by scheduling exposures evenly
throughout the given period.
 Concentration- calls for spending all the advertising money
in a single period (one selling season or holiday)
 Flighting- advertising for some period, followed by hiatus
with no advertising, followed by a second period of
advertising activity.
 Pulsing- continuous advertising at low-weight levels
reinforced periodically by waves of heavier activity.

20. DECIDING ON GEOGRAPHICAL ALLOCATION
 a) National versus international
 National buys- places an ads on national TV
networks or in nationally circulated magazines.
 Spot Buys- when it buys TV times in just a few
markets or in regional editions of magazines.
 Local Buys- when it advertises in local newspapers,
radio or outdoor sites.

21. EVALUATING ADVERTISING
EFFECTIVENESS
 Methods of advertising pretesting
 Communication-effect research—copy testing,
consumer feedback, portfolio tests, laboratory tests
 Sales-effect research—share of voice and share
of market, historical approach, experimental design
 Advertising effectiveness: a summary of current
research

22. SALES PROMOTION

23. SALES PROMOTION
 Consists of a diverse collection of incentive tools,
mostly short term, designed to stimulate quicker
and/or greater purchase of particular
products/services by consumers or the trade

24. PURPOSE OF SALES PROMOTION
 Varying purposes and results, depending on
degree of brand awareness/loyalty
INCENTIVE TYPE PROMOTION- to attract new
triers, to reward customers, to increase
repurchase rates of occasional users.
SALES PROMOTION- to attract brand switchers,
who are primarily looking for low price, good
value, or premiums.

25.  Farris and Quelch sales-promotion
benefits —testing to lead to varied retail
formats
Enables manufacturers to adjust to
short term variation in supply and
demand.
Enable manufacturers to test how high
a list price they can charge, because
they can always discount it.

26. MAJOR DECISIONS IN SALES PROMOTION
 Establishing objectives
 Consumers- encouraging purchase of larger- sized units,
building trial and attracting switchers away from competitor
brands.
 Selecting the sales-promotion tools
 Selecting consumer- promotion tools
 Selecting trade - promotion tools
 Selecting business and sales -force -promotion tools
 Developing the program
 Pretesting, implementing, controlling and
evaluating the program

27. Selecting consumer- promotion tools
 Samples
 Coupons
 Cash Refund Offers (Rebates)
 Price packs
 Premiums (Gifts)
 Frequency Programs
 Prizes
 Patronage awards
 Free trials
 Product warranties
 Tie-in promotions
 Cross promotions
 Point of Purchase Display and Demonstrations

28. Selecting trade- promotion tools
 Price- off
 Allowance
 Advertising allowance
 Display allowance
 Free Goods

29. Selecting business- and - sales -force -
promotion tools
 Trade Shows and Conventions
 Sales Contests
 Specialty advertising

30. DEVELOPING THE PROGRAM
 Determine the size of the incentive,
 Marketing managers should establish conditions for
participation (incentives for everyone or selected
groups)
 Decide on the duration of the promotion (optimal
frequency is about three weeks per quarter)
 Choose distribution vehicle (package, stores, mail)
 Establish the timing of promotion
 Determine the total sales-promotion budget
 Administrative cost
 Incentive cost
 Multiplied by the expected number of units that will be
sold

31. PRETESTING, IMPLEMENTING, CONTROLLING
AND EVALUATING THE PROGRAM
 Pretest- should be conducted to determine if the tools are
appropriate, the incentive size optimal, and the presentation method
efficient. (rate or rank possible deals, trial test can be run in limited
area)
 Implementation and control for promotion that cover lead time and
sell-in time
 Lead time- the time necessary to prepare the program prior to
the launching it.
 Sell-in time- begins with the promotional launch and ends when
approximately 95% of the deal merchandise is in the hands of
consumers.
 Evaluation
 Consumer surveys
 Experiments
 Scanner data