against a competitor's actions. The latter is accomplished because customers build up inventory as a result of the deal and, therefore, do not react to competitive actions (a new product introduction, for example). See Figure 19-6 in the textbook.285.(p. 506-508) A contest requires consumers to apply their skill or analytical or creative thinking to try to win a prize. A sweepstakes requires participants to submit some kind of entry but are purely games of chance requiring no analytical or creative effort by the consumer. See Figure 19-6 in the textbook.286.(p. 506, 509) The best type of sales promotion is to use a coupon in an ad in the college newspaper or a flyer placed on the windshields of cars in parking lots where students park. This marketing action will stimulate demand, an action necessary for a new product or retail store like the sandwich shop.287.(p. 511) Cooperative advertising is a sales promotional activity to encourage both better quality and greater quantity in the local advertising efforts of resellers. These programs involve a manufacturer paying a percentage of a retailer's local advertising expense for advertising the manufacturer's products. The percentage is often 50 percent up to a certain dollar limit, which is based on the amount of the purchases the retailer makes of the manufacturer's products. In addition to paying a part of the advertising space or time, the manufacturer often furnishes the retailer with a selection of different ad executions, sometimes suited for several different media.288.(p. 512) Publicity is a nonpersonal presentation of an organization, good, or service without direct cost. Many companies use the newsrelease, consisting of an announcement regarding changes in the company or the product line. The objective of a news release is to inform a newspaper, radio station, or other medium of an idea for a story. A second common publicity tool is the news conference. Representatives of the media are all invited to an informational meeting, and advance materials regarding the content are sent. This tool is often used when negative publicity requires a company response. Nonprofit organizations rely heavily on public service announcements (PSAs), which are free space or time donated by the media. Finally, many high-visibility individuals are used as publicity tools to create visibility for their companies, their products, and themselves.
ch19 SummaryCategory# of QuestionsAACSB: Analytic284AACSB: Ethics3AACSB: Technology1Kerin - Chapter 19297Learning Objective: 19-01 Explain the differences between product advertising and institutional advertising and the variations within each type.61Learning Objective: 19-02 Describe the steps used to develop; execute; and evaluate an advertising program.60Learning Objective: 19-03 Explain the advantages and disadvantages of alternative advertising media.111Learning Objective: 19-04 Discuss the strengths and weaknesses of consumer-oriented and trade-oriented sales promotions.47Learning Objective: 19-05 Recognize public relations as an important form of communication.9