media by establishing the ad’s desired reach, frequency, and impact and then choos-
ing the media that will deliver the desired results in terms of circulation, audience,
effective audience, and effective ad-exposed audience; and (e) evaluate the com-
munication and sales effects of advertising.
3.Sales promotionconsists of a diverse collection of incentive tools, mostly short term,
designed to stimulate quicker or greater purchase of particular products or services
by consumers or the trade.
4.Sales promotion includes tools for consumer promotion (samples, coupons, cash
refund offers, prices off, premiums, prizes, patronage rewards, free trials, warranties,
tie-in promotions, cross-promotions, point-of-purchase displays, and demonstra-
tions); trade promotion (prices off, advertising and display allowances, and free
goods); and business- and sales force promotion (trade shows and conventions,
contests for sales reps, and specialty advertising).
5.In using sales promotion, a company must establish its objectives, select the tools,
develop the program, pretest the program, implement and control it, and evaluate
the results. Most people agree that sales promotion works to increase sales and mar-
ket share in the short run, but does not have much effect in the long run. In ad-
dition, marketers face a series of challenges in most forms of sales promotion,
especially the high costs of supporting them.
6.Apublicis any group that has an actual or potential interest in or impact on a com-
pany’s ability to achieve its objectives. Public relations(PR) involves a variety of pro-
grams designed to promote or protect a company’s image or its individual products.
Many companies today use marketing public relations (MPR) to support their mar-
keting departments in corporate or product promotion and image making. MPR
can affect public awareness at a fraction of the cost of advertising, and is often
much more credible. The main tools of PR are publications, events, news, speeches,
public-service activities, and identity media.
7.In considering when and how to use MPR, management must establish the mar-
keting objectives, choose the PR messages and vehicles, implement the plan care-
fully, and evaluate the results. Results are usually evaluated in terms of number of
exposures and cost savings; awareness, comprehension, or attitude changes; and
sales-and-profit contribution.
CONCEPTS
1.Your company knows that bad publicity could have a lasting negative effect on its
future, yet it wants all levels of management to feel comfortable meeting the press
with both good news and bad news. Individually or with a group, assist the pub-
lic-relations staff in developing a 10-point media interview checklist. This check-
list will be used by all managers who might possibly be questioned by either the
print or electronic media.
Two points to get you started:
■ If a reporter calls, determine the reason for the call and the information sought. If you
can’t talk at the time or if you need additional information, promise to call the re-
porter back before his or her deadline. Then make sure you do it.
■ Don’t expect the news story to be exactly the way you would have reported it or writ-
ten it. Expect some confusion in the facts, but if the mistakes aren’t major, don’t ask
for a correction.
2.Suppose a brand of aftershave lotion will be marked down $.09 for a limited pe-
riod. (In other words, the manufacturer will sell the item to retailers or wholesalers
for 9 cents less than its normal price.) The item sells regularly for $1.09, of which
$.40 represents a contribution to the manufacturers’ profits before marketing^611
APPLICATIONS