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Sales Promotion And Publicity
If good stories are insufficient, newsworthy events could be sponsored; such sponsorship can be news
creating like anniversary celebrations, art exhibits, bingo games, contests, dances, dinners, fairs, parties
in unusual places, tours and others.
The special stories or events can be publicized in the media, using journalists to cover such special
occasions.
EVALUATE THE PUBLICITY RESULTS
Publicity is usually designed with specific audience-response objectives planned by the firm. The major
response measures are:
• EXPOSURES: the number of exposures created in the media.
• AwARENESS, COMPREHENSION AND ATTITUDE CHANGE: this involves using
survey methodology to measure before and after levels of stated variables.
• SALES AND PROFIT CONTRIBUTION: sales and profit impact is the most satisfactory
measure if it can be tracked by the firm. The management has to make some assumptions
about the role played by publicity in the total impact. Suppose total sales have increased
by $1,500,000 and management conservatively estimates that publicity contributed 15 per
cent of the total sales increase.THE RETURN ON PUBLICITY INVESTMENT is calculated as follows:
Total sales increase $1,500,000
Estimated increase due to publicity (15%) 225,000
Contribution margin on product sales (10%) 22,500
Less total direct cost of publicity programme (10,000)
Contribution margin added by publicity investment $12,500
RETURN ON PUBLICITY INVESTMENT (%) $12,500
10,000 = 25%
RETURN ON PUBLICITY =
contribution margin added by publicity investment
INVESTMENT % total direct cost of publicity program