Advertising And Public Relations

Insert Chapter Picture Here

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15

1

Designed by Eric Brengle B-books, Ltd.

CHAPTER

15

Advertising and Public Relations

Prepared byDeborah Baker

Texas Christian University

MarketingLamb, Hair, McDaniel

9

2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15

Learning Outcomes

Discuss the effects of advertising on market share and consumers

Identify the major types of advertising

Discuss the creative decisions in developing an advertising campaign

LOI

LO2

LO3


Learning Outcomes

Describe media evaluation and selection techniques

Discuss the role of public relations in the promotional mix

LO5

LO4

4Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved

Chapter 15

Discuss the effects of advertising on

market share and consumers

The Effects of AdvertisingLOI

5Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter15

LOI The Effects of Advertising

U.S. advertising was almost $300 billion in 2006

In 2005, 32 companies spent over $1 billion each

The advertising industry is small—only 155,000 employed by the 12,000 advertising agencies

Ad budgets of some firms are almost $4 billion annually


Chapter 15 LOI

The Effects of Advertising Top Ten Leaders by U.S.Advertising Spending


Chapter 15

LOI Advertising and Market Share

New brands with a small market share spend proportionally more for advertising and sales promotion than those with a large market share

1. Beyond a certain level of spending, diminishing returns set in.

2. New brands require higher spending to reach a minimum level of exposure needed to affect purchase habits.


Chapter 15

LOI The Effects of Advertising on Consumers

The average U.S. citizen is exposed to hundreds of ads each day.

Advertising may change a consumer’s negative attitude toward a product, or reinforce a positive attitude.

Advertising can affect consumer ranking of a brand’s attributes.


REVIEW LEARNING OUTCOMEEffects of AdvertisingLOI


Chapter 15

Identify the major types of advertising

Major Types of AdvertisingLO2


Chapter 15

Major Types of AdvertisingLO2

InstitutionalAdvertising

Enhances a company’s image rather than promotes a particular product.

ProductAdvertising

Touts the benefits of a specific good or service.


Chapter 15

LO2 Major Types of Advertising

Corporate identity

Pioneering

Competitive

Comparative

ProductAdvertising

InstitutionalAdvertising

Advocacy advertising


Chapter 15

LO2 Product Advertising

PioneeringPioneering Stimulates primary demand for

new product or category Used in the PLC introductory stage

CompetitiveCompetitive Influences demand for brand in the

growth phase of the PLC Often uses emotional appeal

ComparativeComparative Compares two or more competing

brands’ product attributes Used if growth is sluggish, or if

competition is strong

Online

http://www.pizzahut.comhttp://www.papajohns.com

http://www.pizzahut.com/

http://www.papajohns.com/


REVIEW LEARNING OUTCOMEThe Major Types of AdvertisingLO2


Chapter 15

Discuss the creative decisions in developing an

advertising campaign

Creative Decisions in AdvertisingLO3


Chapter 15

Creative Decisions in Advertising

AdvertisingCampaign

A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals.

LO3


Creative Decisions in AdvertisingLO3

Determine the advertising objectives

Make creative decisions Make media decisions

Evaluate the campaign


LO3 Creative Decisions

Develop and evaluateadvertising appeals

Execute the message

Evaluate thecampaign’s effectiveness

Identify product benefits


Chapter 15 LO3

“Sell the Sizzle, not the Steak”

Sell product’s benefits, not its attributes

A benefit should answer “What’s in it for me?”

Ask “So?” to determine if it is a benefit

Identify Product Benefits


Chapter 15 LO3

Identify Product Benefits

Attribute

Benefit

“Powerade’s new line has been reformulated to combine the scientific

benefits of sports drinks with B vitamins and to speed up energy

metabolism.”

“So, you’ll satisfy your thirst with a great-tasting drink that will power you

throughout the day.”

- So?


Chapter 15

LO3 Advertising AppealsProfit

Health

Love or romance

Fear

Admiration

Convenience

Fun and pleasure

Vanity and egotism Environmental Consciousness

Product saves, makes, or protects money

Appeals to body-conscious or health seekers

Used in selling cosmetics and perfumes

Social embarrassment, old age, losing health

Reason for use of celebrity spokespeople

Used for fast foods and microwave foods

Key to advertising vacations, beer, parks

Used for expensive or conspicuous items

Centers around environmental protection


Chapter 15

LO3

Unique SellingProposition

A desirable, exclusive, and believable advertising appeal selected as the theme for a campaign.

Unique Selling Proposition

Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 23

LO3

Executing the Message

Mood or Image

Musical

Demon-stration

Scientific

Real/AnimatedProductSymbols

Fantasy

LifestyleSlice-of-Life

Humorous

Spokes-person/

Testimonial


REVIEW LEARNING OUTCOMECreative Decisions for Ad CampaignLO3

Setadvertisingobjectives

Identify benefits

Develop appeal

Evaluate campaign results

Evaluatingresults helpsmarketersadjust objectivesfor futurecampaigns

Execute message


Chapter 15

Describe media evaluation and

selection techniques

Media Decisions in AdvertisingLO4


Chapter 15

LO4 Media Decisions in Advertising

Newspapers

Magazines

Yellow Pages

Internet

Radio

Television

Outdoor Media

Direct Mail

Trade Exhibits

Cooperative Advertising

Brochures

Coupons

Catalogs

Special Events

Monitored Media Unmonitored Media


Chapter 15 LO4

Major Advertising MediaNewspapers

Magazines

Radio

Television

Outdoor Media

Yellow Pages

Internet


Chapter 15

LO4 Newspapers

AdvantagesAdvantages

Geographic selectivity Short-term advertiser

commitments News value and

immediacy Year-round readership High individual market

coverage Co-op and local tie-in

availability Short lead time

DisadvantagesDisadvantages

Limited demographic selectivity

Limited color Low pass-along rate May be expensive


Chapter 15

LO4 Free Newspapers?

SOURCE: Joseph T. Hallinan, “Do New Free Dailies Mean Sun is Setting for Paid Newspapers?,”

Wall Street Journal, April 5, 2006, B1.

The new Baltimore Examiner is delivering 250,000 newspapers—at no charge and unsolicited!

Advertising brings in the revenue for this niche publication targeting households with income of $73,000 or more.

The ads are $2,900 for a full page, compared with $17,000 for its competition, the Baltimore Sun.

The Examiner is betting that low ad rates and the target market will be a valuable proposition to advertisers.


Chapter 15

LO4

CooperativeAdvertising

Cooperative Advertising

An arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer’s brand.


Chapter 15

LO4 Magazines

AdvantagesAdvantages DisadvantagesDisadvantages

Good reproduction Demographic selectivity Regional/local selectivity Long advertising life High pass-along rate

Long-term advertiser commitments

Slow audience build-up Limited demonstration

capabilities Lack of urgency Long lead time


Chapter 15

LO4 Radio


Low cost Immediacy of message Short notice scheduling No seasonal audience

change Highly portable Short-term advertiser

commitments Entertainment carryover

No visual treatment Short advertising life High frequency to

generate comprehension and retention

Background distractions Commercial clutter


Chapter 15

LO4 Television


Wide, diverse audience Low cost per thousand Creative opportunities for

demonstration Immediacy of messages Entertainment carryover Demographic selectivity

with cable

Short life of message Consumer skepticism High campaign cost Little demographic

selectivity with stations Long-term advertiser

commitments Long lead times for

production Commercial clutter


Chapter 15

LO4 TV Advertising: Is Less More? The number of ads in TV shows is a longstanding

complaint of viewers and advertisers.

The media is cluttered and consumers change channels or speed through commercials on a DVR.

Tests are being conducted to feature shorter commercial pods.

SOURCE: Suzanne Vranica, “TV-Ad Test to Show if Less is More,” Wall Street Journal, April 5,2006, B3.

Year

Commercial Minutesper Hour

13.5 14 14.5 15 15.5

2000

01

02

03

04

05


Chapter 15

LO4 Outdoor Media


Repetition Moderate cost Flexibility Geographic selectivity

Short message Lack of demographic

selectivity High “noise” level


Chapter 15

LO4 Internet


Fast growing Ability to reach narrow

target audience Short lead time Moderate cost

Difficult to measure ad effectiveness and ROI

Ad exposure relies on “click through” from banner ads

Not all consumers have access to Internet

Online

http://www.fox.comhttp://www.abc.com

http://www.fox.com/

http://www.abc.com/


LO4 Alternative Media

Ads in Movies

Interactive Kiosks

Computer Screen Savers

Shopping Carts

DVDs

Advertainments

Cell Phone Ads

Subway Tunnel Ads

Floor Ads

Video Game Ads


Chapter 15

LO4 Videogame Advertising

SOURCE: Robert A. Guth and Nick Wingfield, “Microsoft’s ‘Massive’ Move into Game Ads,”

Wall Street Journal, April 26,2006, B1.

Microsoft plans to acquire Massive inc., a start-up that places ads in video games.

Ads are inserted into the game environment.

Video games could become a large new medium for advertising.


Chapter 15

LO4 Directory Assistance Advertising

SOURCE: Rebecca Buckman, “Your Listing, and a Word From Our Sponsor,”

Wall Street Journal, April 20,2006, B1.

Companies are offering free telephone directory assistance—but there’s an advertisement first.

The audio ads are narrowly targeted, and are 10 to 12 seconds.

The growth of such free services could represent another change in the telecom industry.

Dial 1-800-FREE411 or 1-800-411-METRO


Chapter 15 LO4

Qualitative Factors in Media Selection

Attention to the commercial and the program

Program liking

Lack of distractions

Other audience behaviors


Chapter 15

Media SchedulingLO4

ContinuousMedia Schedule

Flighted Media Schedule

PulsingMedia Schedule

SeasonalMedia Schedule

Advertising is run steadily throughout the period.

Advertising is run heavily every other month or every two weeks.

Advertising combines continuous scheduling with flighting.

Advertising is run only when the product is likely to be used.


Chapter 15

Media Scheduling on the WebLO4

Competition for Web advertising spots is driving up prices.

Some Web advertisers now run campaigns based on time of day. Examples:– McDonald’s: breakfast meals during morning

hours – Xerox: copier ads during the workday– Budweiser: beer ads on Friday afternoons

Scheduling Web ads during prime times is a more efficient use of ad dollars and more targeted.

SOURCE: David Kesmodel, “More Marketers Place Web Ads by Time of Day,” Wall Street Journal, June 23, 2006, B1.


REVIEW LEARNING OUTCOMEMedia Evaluation and SelectionLO4

Type: NewspaperMagazineRadioTelevisionOutdoorInternetAlternative

Considerations:

Mix How much of each?Cost per contact How much per person?Reach How many people?Frequency How often?Audience selectivity How targeted is audience?

Scheduling: continuous

flighted

pulsing

seasonal

Winter Spring Summer Fall


Chapter 15

Discuss the role of public relations

in the promotional mix

Public RelationsLO5


Chapter 15

Public Relations

LO5 Public Relations

The element in the promotional mix that:

evaluates public attitudes identifies issues of public concern executes programs to gain public

acceptance


Chapter 15

LO5

Press relations

Product publicity

Corporate communication

Public affairs

Lobbying

Employee and investor relations

Crisis management

Functions of Public Relations


Chapter 15

LO5

Product placement

Consumer education

Event sponsorship

Issue sponsorship

Internet Web sites

New product publicity

Public Relations Tools

Online

http://www.vw.comhttp://www.chevrolet.com

http://www.vw.com/

http://www.chevrolet.com/


Chapter 15

LO5 Example of Consumer Education

SOURCE: Diya Gullapalli, “Your Kid’s Teacher: The Bank,”

Wall Street Journal, April 8-9, 2006, B1.

Corporations are teaching public school students about personal finance.

People under age 25 are a fast-growing group for credit card debt increases and bankruptcy.

Is it appropriate to use educational materials with a corporate identity?

How should financial literacy be taught?


Chapter 15

CrisisManagement

LO5 Managing Unfavorable Publicity

A coordinated effort to handle the effects of unfavorable publicity or of an unfavorable event.


REVIEW LEARNING OUTCOMEThe Role of Public RelationsLO5

Advertising And Public Relations

Business

Transcript of Advertising And Public Relations