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Copyright Cengage Learning 2013All Rights Reserved

1

Chapter 17: Advertising and Public

Relations

Prepared & Designed by Laura Rush, B-books, Ltd.

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Copyright Cengage Learning 2013All Rights Reserved

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Learning Outcomes

Discuss the effects of advertising on marketshare and consumers

Identify the major types of advertising

Discuss the creative decisions in developingan advertising campaign

Describe media evaluation and

selection techniques

Discuss the role of public relations

in the promotional mix

LO1

LO2

LO3

LO5

LO4

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Copyright 2013 by CengageLearning Inc. All Rights Reserved 3

The Effects of Advertising

Discuss the effect ofadvertising on market share

and consumers.

LO1

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Copyright 2013 by CengageLearning Inc. All Rights Reserved

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In recent years, 30companies spent over $1billion each

The advertising andmarketing services employapproximately 750,000

people. Ad budgets of some firms are

almost $4 billion annually.

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Top Ten Leaders by U.S.Advertising Spending

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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 reacha minimum level of exposure needed to affectpurchase habits.

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Review Learning OutcomeEffects of Advertising

LO1

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Major Types of Advertising

Identify the major typesof advertising.

LO2

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Major Types of Advertising

Corporate identity

Pioneering

Competitive

Comparative

ProductAdvertising

InstitutionalAdvertising

Advocacy

advertising

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Product Advertising

Pioneering Stimulates primary demand for

new product or category

Used in the PLC introductory stage

Competitive

Influences demand for brand in the

growth phase of the PLC Often uses emotional appeal

Comparative

Compares two or more competing

brands product attributes

Used if growth is sluggish, or ifcompetition is strong

Online

http://www.pizzahut.com

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

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Review Learning OutcomeThe Major Types of Advertising

LO2

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Creative Decisions in Advertising

Discuss the creative

decisions in developing an

advertising campaign.

LO

3

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Creative Decisions in

Advertising

Advertising Campaign - A series

of related advertisements

focusing on a common theme,

slogan, and set of

advertising appeals.

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Creative Decisions in

Advertising

Determine theadvertising objectives

Make creative decisions Make media decisions

Evaluate the campaign

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Setting Objectives:

The DAGMAR Approach

Define target audience

Define desired percentage change

Define the time frame for change

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Creative Decisions

Develop and evaluateadvertising appeals

Executethe message

Evaluate thecampaigns effectiveness

Identifyproduct benefits

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Identify Product Benefits

Sell the Sizzle, not the Steak

Sell products benefits, not its attributes

A benefit should answerWhats in it for me?

Ask So?to determineif it is a benefit

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Identify Product Benefits

Attribute

Benefit

SoBe Life Water has reformulated five

delicious, low-calorie flavors, each

infused with essential vitamins and

healthy herbal ingredients.

SoBe Life Water is not only an enhanced

water; it is a lifestyle unto itself. It

provides consumers the healthiest, mostfun and refreshing products, delivering

the incredibly positive benefits of

hydration.

- So?

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Advertising Appeals

Profit

Health

Love or romance

Fear

Admiration

Convenience

Fun and pleasure

Vanity and egotism

EnvironmentalConsciousness

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

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Unique Selling Proposition

A desirable, exclusive, and

believable advertising appeal

selected as the theme

for a campaign.

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Executing the Message

Mood orImage

Musical

Demon-stration

Scientific

Real/AnimatedProductSymbols

Fantasy

LifestyleSlice-of-Life

Humorous

Spokes-person/Testimonial

Review Learning Outcome

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Review Learning OutcomeCreative Decisions for Ad Campaign

LO3

Set

advertising

objectivesIdentify benefits

Develop appeal

Evaluate

campaign

results

Evaluating

results helps

marketersadjust objectives

for future

campaigns

Execute

message

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Media Decisions in Advertising

Describe media evaluationand

selection techniques.

LO4

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Media Decisions in Advertising

Newspapers

Magazines

Yellow Pages

Internet

Radio

Television

Outdoor Media

Direct Mail

Trade Exhibits

Cooperative Advertising

Brochures

Coupons

Catalogs

Special Events

Monito red Media Unmon itored Media

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Major Advertising Media

Newspapers

Magazines

Radio

Television

Outdoor Media

Yellow Pages

Internet

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Cooperative Advertising

An arrangement in which themanufacturer and the retailersplit the costs of advertising

the manufacturers brand.

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Magazines

Advantages Disadvantages

Good reproduction

Demographic selectivity

Regional/localselectivity

Long advertising life

High pass-along rate

Long-term advertisercommitments

Slow audience build-up

Limited demonstrationcapabilities

Lack of urgency

Long lead time

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Radio


Low cost

Immediacy of message

Short notice scheduling

No seasonal audiencechange

Highly portable

Short-term advertisercommitments

Entertainment carryover

No visual treatment

Short advertising life

High frequency togenerate comprehensionand retention

Background distractions

Commercial clutter

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Television


Wide, diverse audience

Low cost per thousand

Creative opportunities fordemonstration

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 advertisercommitments

Long lead times forproduction

Commercial clutter

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TV Advertising: Is Less More?

The number of ads in TV shows is alongstanding complaint of viewers andadvertisers.

Tests are being conducted to featureshorter commercial pods.

A significant trend to affect televisionadvertising is the rise in popularity ofdigital video recorders (DVRs) such asTiVo.

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Internet


Fast growing

Ability to reach narrowtarget audience

Short lead time

Moderate cost

Difficult to measure adeffectiveness and ROI

Ad exposure relies onclick through frombanner ads

Not all consumers haveaccess to Internet

Onlinehttp://www.fox.com

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

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Videogame Advertising

Ads are inserted into thegame environment.

Video games could becomea large new medium foradvertising.

Games that are advertisements

(advergaming)exposes customers toproducts and builds companydatabases

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Cell Phones

Newest advertising media.

Useful for reaching youth market.

Over 4 billion cell phone users in theworld.

In 2008 cell phone ad sales reached

over$1.6 billion in U.S.nearly $4.4 billionworldwide.

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Media Selection

Media MixCombination of media to be used for apromotional campaign

Cost per contactThe cost of reaching one member of

the target market

Reachnumber of target consumers exposed to acommercial at least once during a specific period,usually four weeks

Frequencynumber of times an individual is exposedto a given message during a specific period

Q lit ti F t i M di

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Qualitative Factors in Media

Selection

Attention to the commercialand the program

Involvement

Program liking

Lack of distractions

Other audience behaviors

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Media Scheduling

Continuous

Media Schedule

FlightedMedia Schedule

PulsingMedia

Schedule

Seasonal

Media Schedule

Advertising is run steadilythroughout the period.

Advertising is run heavily everyother month or every two weeks.

Advertising combinescontinuous scheduling with

flighting.

Advertising is run only when theproduct is likely to be used.


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Review Learning OutcomeMedia Evaluation and Selection

LO4

Type: NewspaperMagazineRadioTelevisionOutdoorInternet

Alternative

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

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Copyright 2013 by CengageLearning Inc. All Rights Reserved43

Public Relations

The elements in the

promotional mix that:

-evaluate public attitudes,

-identify issues of public concern,

-execute programs to gain

public acceptance.

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Functions of Public Relations

Press relations

Product publicity

Corporate communication

Public affairs

Lobbying

Employee and investor relations

Crisis management

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Example of Consumer

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Example of Consumer

Education

Corporations are teaching public schoolstudents about personal finance.

People under age 25 are a fast-growing

group for credit card debt increases andbankruptcy.

Is it appropriate to use educational

materials with a corporate identity? How should financial literacy be taught?

SOURCE: Diya Gullapalli,Your Kids Teacher: The Bank,

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

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Managing Unfavorable Publicity

Crisis Management -A coordinated effort to handle

the effects of unfavorablepublicity or of an

unfavorable event.


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Chapter 17 Company Clip

With only a small advertising budget, theVans marketing team must developpartnerships with its advertisers and use

tours and events to spread the Vans culture.

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