Chapter 18 Summary

Advertising is any announcement or persuasive message placed in the mass media in paid or donated time or space by an identified person. Functions of advertising include informing potential customers, conveying information, and create or enhance perceptions of quality or reliability. There are several types of advertising ranging from product advertising to corrective advertising.

The marketing manager must decide how to develop and manage advertising (advertising campaign). In some cases he/she performs this internally or can hire an advertising agency to do it for him/her. In managing advertising, certain tasks must be performe

• Review advertising goals and budgets.
• Create messages and select the media to convey the advertising.
• Pretest ads.
• Schedule and run ads.
• Evaluate advertising effectiveness, and
• Adjust advertising as needed.

Because advertising has the potential to influence consumers, it is regulated by the Federal Trade Commission in terms of unethical, unfair, or deceptive advertising. Another area that has come into prominence is advertising geared to children. In efforts to assist firms in presenting proper advertisements, the National Advertising Division of the Council of Better Business Bureaus provide guidelines for marketing managers to follow.

Besides advertising, marketing managers consider how sales promotion can aid in the sale of products. Sales promotions can be consumer or trade oriented. Consumer promotions can include coupons, deals, premiums, contests, samples, free trials, rebates, and other types of promotions. Trade promotions are aimed at intermediaries and can be trade allowances/discounts and cooperative advertising payments.

Publicity is another component of the marketing mix. There are numerous types of publicity including press releases, news conferences, and activities and events. It is non-paid-for communication of information about the firm or product. As expected publicity can be positive or negative. If negative, the damages can be extensive and difficult to overcome.