Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e- Advertising and Sales
Promotion
Text © The McGraw−Hill
Companies, 2002When You
Finish This Chapter,
You Should
1.Understand why a
marketing manager
sets specific objec-
tives to guide the
advertising effort.
2.Understand when
the various kinds of
advertising are
needed.
3.Understand how to
choose the “best”
medium.
4.Understand the
main ways that
advertising on the
Internet differs from
advertising in other
media.
5.Understand how to
plan the “best” mes-
sage—that is, the
copy thrust.
6.Understand what
advertising agencies
do and how they are
paid.
7.Understand how to
advertise legally.
8.Understand the
importance and
nature of sales pro-
motion.
9.Know the advan-
tages and limitations
of different types of
sales promotion.
10.Understand the
important new terms
(shown in red).
Chapter Sixteen
Advertising and
Sales Promotion
Over the years, Frito-Lay
brands—like Doritos, Fritos, and
Lay’s—had captured half of all
snack sales. However, low-priced
dealer brands were stealing marketshare. Worse, the bulging growth
from snacks was tapering off. Aging
consumers were cutting back on
fat, and snacks, in their diet. So
Rebecca Johnson, product man-ager for Lay’s Potato Chips, had to
figure out how to fend off the price
cutters and attract new snackers.
The main weapon in her battle
was a line of low-fat products thatwere in product development.
Baked Lay’s, a low-fat potato
crisp, had great potential. They had
only about 15 percent of the fat in
regular Lay’s Potato Chips andfewer calories. They had also fared
well in consumer taste tests.
Consumers simply wouldn’t com-
promise on good taste.
There were still some chal-lenges. The retail price of Baked
Lay’s would be about one-
third more than regular chips.
That was the difference in the
cost to produce them. Fur-ther, because of FTC rules,
Baked Lay’s could not be
called potato “chips.” Chips are
slices from potatoes, but Baked