LO1 Explain the differences between product advertising and institutional advertising and the variations within each type.
Product advertisements focus on selling a good or service and take three forms: Pioneering advertisements tell people what a product is, what it can do, and where it can be found; competitive advertisements persuade the target market to select the firm's brand rather than a competitor's; and reminder advertisements reinforce previous knowledge of a product. Institutional advertisements are used to build goodwill or an image for an organization. They include advocacy advertisements, which state the position of a company on an issue, and pioneering, competitive, and reminder advertisements, which are similar to the product ads but focused on the institution.

LO2 Describe the steps used to develop, execute, and evaluate an advertising program.
The promotion decision process can be applied to each of the promotional elements. The steps to develop an advertising program include identifying the target audience, specifying the advertising objectives, setting the advertising budget, designing the advertisement, creating the message, selecting the media, and scheduling the advertising. Executing the program requires pretesting, and assessing the program requires posttesting.

LO3 Explain the advantages and disadvantages of alternative advertising media.
Television advertising reaches large audiences and uses picture, print, sound, and motion; its disadvantages, however, are that it is expensive and perishable. Radio advertising is inexpensive and can be placed quickly, but it has no visual element and is perishable. Magazine advertising can target specific audiences but it is relatively expensive. Newspapers provide excellent coverage of local markets and can be changed quickly, but they have a short life span and poor color. Yellow pages advertising reaches almost all households with telephones; its disadvantages, however, are that there is a proliferation of directories and they cannot be updated frequently. Internet advertising can be interactive, but its effectiveness is difficult to measure. Outdoor advertising provides repeat exposures, but its message must be very short and simple. Direct mail can be targeted at very selective audiences, but its cost per contact is high.

LO4 Discuss the strengths and weaknesses of consumer-oriented and trade-oriented sales promotions.
Coupons encourage consumer trial but are often more expensive than the face value of the coupon. Deals also increase trial and may be used during a competitor's promotion. Premiums offer consumers additional merchandise free with a purchase or at a significant savings over its retail price. Contests create involvement but require creative thinking. Sweepstakes encourage repeat purchases and require no creative effort by the consumer. Samples are often used for new products and encourage purchase of the product. Loyalty programs encourage and reward repeat purchases. Displays provide visibility in high-traffic areas. Rebates offer a return of money based on proof of purchase. Product placement involves the use of a brand-name product in a movie, TV show, or commercial. Trade-oriented sales promotions include (a) allowances and discounts, which increase purchases but may change retailer ordering patterns, (b) cooperative advertising, which encourages local advertising, and (c) salesforce training, which helps increase sales by providing the salespeople with product information and selling skills.

LO5 Recognize public relations as an important form of communication.
Public relations activities seek to influence the image of an organization and its products and services. A frequently used public relations tool is publicity. Publicity tools include new releases and news conferences. Nonprofit organization often use public service announcements.