chapter 13 advertising and public relations m a r k e t i n g real people, real choices fourth...
TRANSCRIPT
CHAPTER 13Advertising and Public Relations
M A R K E T I N GReal People, Real Choices
Fourth Edition
13-2
It’s an Ad Ad Ad Ad World
• Advertising is nonpersonal communication paid for by an identified sponsor using mass media to persuade, inform, and remind an audience
• 2004: over 265 billion USD spent on advertising
• Biggest spenders: Automobiles, financial services, food and beverages and retail.
• What could be some threats to advertising?
13-3
Types of Advertising
• Product advertising - message focuses on a specific product or service– Category advertising (Got Milk?; The other
white meat, etc.)– Brand advertising
• Institutional advertising - message focuses on activities, personality, or point of view of a company– advocacy advertising (2004: MTV’s
“choose or lose” campaign)– public service advertisements (anti-
smoking; anti-drugs; drunk driving, etc.)
13-4
Purposes of Product Advertising
• To educate people about a new product and what it does
• To emphasize a brand’s features and try to convince the target market to choose it over other options
• To ensure that people won’t forget about a well-established product
13-5
Who Creates Advertising?
• An advertising campaign is a coordinated, comprehensive plan that carries out promotion objectives and results in a series of advertisements placed in media over a period of time
• Agencies– limited-service
• Creative boutiques• Specialize in few options e.g. Internet
advertising– full-service
13-6
Largest Ad Agencies
• J. Walter Thompson• Leo Burnett Worldwide• McCann-Erickson Worldwide• BBDO Worldwide• Grey Worldwide• Ogilvy & Mather• Foote Cone & Belding
• Worldwide billings exceed several billion USD
13-7
The Body of Campaign Creation
• Account management– Campaign strategy and client relations
• Creative services– Visualization and writing of the ads
• Research– Market and Advertising Research
• Media planning– Planning, buying and placing the campaign
13-8
Developing the Campaign
• Identify the Target Market• Establish objectives
– What should the campaign achieve– Budget (in cooperation with client)
• Prepare creative brief• Design Ad Campaign• Choose Media and Schedule• Pretest Campaign• Full rollout
13-9
Design the Ad
• Creative strategy is the process that turns a concept into an advertisement
• Creatives try to develop a “big idea” (e.g. “Think Small”)
• Creatives:
– art directors
– copywriters
– photographers
13-10
Advertising Appeals
• Reasons Why (USP) (e.g. M&Ms melt in your mouth, not in your hand)
• Comparative Advertising (e.g. Coke & Pepsi; DHL, Fedex and UPS; etc.)
• Demonstration (e.g. kitchen appliances, vacuum cleaners, etc.)
• Testimonial (e.g. dentists endorsing toothpastes, etc.)
• Slice-of-Life (e.g. breakfast cereal bars on the go)
• Lifestyle (e.g. Cars, clothes, personal grooming products)
• Fear (e.g. Insurance, drugs)
• Sex (e.g. Victoria’s Secret; Calvin Klein; etc.)
• Humor (e.g. Dodge Hemmi; Sonic etc.)
• Slogans and Jingles (e.g. “Your friendly neighborhood agent”; With Allstate you are in good hands”, etc.)
13-11
Step 4: Pretest What Will Be Said
• Copy testing measures ad effectiveness
– Concept testing
– Test commercials
– Finished testing
• Focus Groups
• Projective Techniques
• Limited area surveys
13-12
Step 5: Choose the Media
• Media planning is a problem-solving process for getting a message to a target audience in the most effective fashion– Where to say it– When to say it
• Highly complicated numbers game• Hundreds of media options from mass media
to video games, DVDs, placements,MP3 players, cell phones, cable channels, etc.
13-13
Television
• Pros– Creative and flexible
(see & hear)– Prestigious– High impact
messages– Network TV is cost
effective for reaching mass audience
– Cable TV is good for reaching targeted group
• Cons– Quickly forgotten– Requires frequent
repetition– Increasingly
fragmented audiences– High costs on an
absolute basis– Shorter ads result in
increased clutter
13-14
Radio
• Pros– Good for selective
targeting– Heard out of
home– Relatively low
cost– Can be modified
quickly– Uses listener
imagination
• Cons– Listeners may not
pay full attention– Small audiences
mean ads must be repeated frequently
– Not appropriate for products requiring demonstration
13-15
Newspapers
• Pros– Wide exposure and
extensive market coverage
– Flexible format permits use of color, different sizes and editions
– Useful for comparison shopping
– Local retailers can tie in with national ads
• Cons– Most don’t spend
much time reading newspapers
– Low readership among teens and young adults
– Short life span– Very cluttered– General decline in
reading habits
13-16
Magazines
• Pros– Narrowly targeted
audiences by specialized magazines
– High credibility and interest level provide good ad environment
– Long life span and pass along rate
– Excellent visual quality
• Cons– With exception of
direct mail, the most expensive form
– Long deadlines– Must use several
magazines to reach target
13-17
Outdoor
• Pros– Very high reach– Low cost– Good for
supplementing other media
• Cons– Hard to
communicate complex messages
– Cannot demonstrate product effectiveness
– Controversial and disliked
13-18
Internet Advertising
• Banners (less that 1% click through rate)
• Buttons (small banners anywhere in the web page)
• Search engine and directory listings
• Pop-up ads (open a separate window)
• Email– permission
marketing (opt out options given by marketer)
– Spamming (junkmail on the internet)
13-19
Media Scheduling
• Specifies the exact media to use for the campaign, when and how often the message should appear
• Outlines the planner’s best estimate of which media and vehicles will be most effective in attaining campaign objectives
13-20
Factors Affecting Media Scheduling
• Target market profile
• People reached by different vehicles
• Advertising patterns of competitors
• Capability of medium to convey desired information
• Compatibility of product with editorial content
13-21
Media Scheduling Terms 1
• Impressions – the number of people who will be exposed to a message placed in one or more media vehicles
• Reach – the percentage of the target market exposed to the media vehicle at least once.
• Frequency – the average number of times a person in the target group will be exposed to the vehicle in a period
13-22
Media Scheduling Terms 2
• Gross Rating Points (GRPs) – reach * frequency
• Cost per Thousand (CPM) – compares the relative cost effectiveness of different media vehicles that have different exposure rates; it reflects the cost to deliver a message to 1000 people
13-23
Media Scheduling: How Often?
• Continuous – steady stream throughout year (products which we buy on a regular basis)
• Pulsing – varies amount of advertising based on when product is in demand (e.g., suntan lotion)
• Flighting – advertising appears in short, intense bursts alternative with periods of little to no activity
13-24
Evaluating Advertising
• Posttesting means conducting research on consumers’ responses to advertising messages they have seen or heard
– unaided recall (recall in the absence of a cue)
– aided recall (recall with a cue provided)
– attitudinal measures (like / dislike)
13-25
Public Relations
• Attempts to influence the attitudes and perceptions of consumers, stockholders, and other stakeholders toward companies, brands, politicians, celebrities, not-for-profit organizations (e.g. Mel Gibson’s film – “The Passion…”
• Do something good, then talk about it• Why PR – “third party” reporting is seen to be
unbiased and therefore credible• Create a crisis management plan
13-26
Some well known PR crises
• Tylenol and product tampering
• Wendy’s and finger in chili
• Pepsi & Coke – pesticides in cola (India)
• Union Carbide in India – hundreds of deaths due to gas leak
• Vioxx & heart attack and stroke victims
• Can you think of more?
13-27
Objectives of Public Relations
• Introducing new products• Influencing government legislation
(lobbying)• Enhancing the image of a city, region,
or country (Mauritius, Singapore – “So easy to enjoy, so hard to forget”)
• Calling attention to a firm’s involvement with the community (e.g. sponsoring sporting events, rock concerts, special events, etc.)
13-28
Planning a PR Campaign
• Develop objectives (e.g. International Apple Institute – “An apple a day…”)
• Execute the campaign
• Evaluate the campaign
– Problems with gauging effectiveness
13-29
PR Campaign Strategy
• Statement of objectives
• Situation analysis
• Specification of target audiences, messages to be communicated, specific program elements to be used
• Timetable and budget
• Discussion of how the program will be evaluated
13-30
PR Activities
• Press Releases (new products, new findings, etc.)
• Internal PR (newsletters, close-circuit TV, employee awards, etc.)
• Lobbying (influencing govt. officials to vote a certain way on legislation, initiate new legislation, etc.)
• Speech writing (write speeches for senior executives – annual meetings, industry meetings, etc.)
• Corporate identity (logos, symbols, stationery design, etc. for companies, identity manuals)
• Media relations (create and maintain access with reporters to be used when needed)
• Sponsorships (sporting events, rock concerts, etc.)• Special events (e.g. visits of dignitaries to plant, planning a
christmas party, etc,)• Advice and counsel (e.g. to top management on
communication issues)
13-31
Measuring Effectiveness
• In-house assessment
• Awareness and Preference Studies
• Counting of press clippings
• Impression counts
13-32
Direct Marketing
• Any direct communication to a consumer or business recipient that is designed to generate a response in the form of an order, a request for further information, and/or a visit to a store or other place of business for purchase of a product
13-33
Forms of Direct Marketing
• Mail order (3% of overall retail US sales)– Catalogs (e.g. Eddie Bauer, Lands End, Dell,
Gateway, JC Penney, Neiman Marcus, etc.)– Direct mail (offers a specific product through mail
at one point in time – can be personalized) • Telemarketing (cheap and easy; 1 in 6 Americans
cannot resist a telemarketing pitch; more effective in B2B selling; national Do-not-call registry)
• Direct response television– Infomercials– Home shopping networks (QVC and HSN)– Top selling categories: diet and health products,
kitchen appliances, exercise equipment and music CDs)
13-34
M-Commerce
• Promotional activities transmitted over mobile phones and other mobile devices such as personal digital assistants (PDAs)
– Prevalent in Europe and Asia
– Problems of “spim”
• What does the future hold?
– Have you seen Minority Report?