Advertising, Sales Promotion, and Public Relations

Explain the current status and historical development of advertising, sales promotion, and public relations.

      Some forms of the nonpersonal&-selling elements of promotion have probably existed since the beginnings of the exchange process. The origins of advertising for instance can be traced

to the vocal chants of criers and hawkers Symbolic signs were an early form of sales promotion. Today these promotional elements enjoy professional status and are vital aspects of most for&-profit and nonprofit organizations

Identify the major types of advertising.

      Advertising may be divided into two broad categories. Product advertising involves the nonpersonal selling of a good or service. Institutional advertising is the nonpersonal promotion of a concept, idea, philosophy, or goodwill of an industry, company, organization, person, geographic area, or government agency. Each of these types can be further subdivided into informative, persuasive, and reminder&-oriented product or institutional advertising.

List and discuss the major advertising media.

      A variety of media exist for the advertiser: broadcast media, such as television and radio, and print media, including newspapers, magazines, outdoor advertising, and direct mail, along with assorted alternative media ranging from transit advertising to ads placed in video cassettes. Each type possesses its own distinct advantages and disadvantages. Newspapers are the dominant local medium, while television is the most significant national advertising medium.

Explain how advertising effectiveness is determined.

      The effectiveness of advertising can be measured by both pretesting and posttesting. Pretesting is the assessment of an ad's effectiveness before it is actually used. It includes such methods as sales conviction tests and blind product tests. Posttesting is the assessment of the advertisement's effectiveness after it has been used. Commonly used posttests include leadership tests, unaided recall tests, inquiry tests, and split runs.

Outline the organization of the advertising function.

      Within a firm, the advertising department is usually a staff group that reports to a vice&-president (or director) of marketing. Advertising departments typically include the following capabilities: research, art and design, copywriting, and media analysis. In many instances, they also include a sales promotion function. Many advertisers use independent advertising agencies to provide the creativity and objectivity that might be missing in their own organizations and to reduce advertising costs. Such marketing specialist firms are typically divided into the functions of creative services; account services; marketing research and sales promotion; and, finance and management.

Describe the process of creating an advertisement.

      Effective advertisements must accomplish the following: (1) gain attention and interest; (2) inform, persuade, and/or remind; and (3) eventually lead to buying action. An advertisement evolves from initial ideas to a thought sketch, which is then converted into a rough layout. The layout is further refined until the final version of the advertisement is ready to print or record.

Identify the principal methods of sales promotion.  

      Expenditures for sales promotion exceed total spending on advertising each year. A variety of methods are used, including (1) point&-of&-purchase advertising (in&-store displays), (2) specialty advertising (giveaway items bearing the advertiser's name), (3) trade shows (large&-scale product demonstrations), (4) samples (product giveaways), (5) coupons (one&-time price reductions), (6) premiums (gift items given with a product purchase), (7) contests, and (8) trading stamps.

Explain the role of public relations and publicity in an organization's promotional strategy.

            Public relations consists of the firm's communications and relationships with its various publics, including customers, employees, stockholders, suppliers, government, and the society in which it operates. Publicity, the aspect of public relations that is most closely linked to promotional strategy, is the dissemination of newsworthy information about a product or organization. This information activity of public relations is frequently used in new&-product introductions.