Advtg & PR

Advertising and Public Relations
CHAPTER
17
Marketing
Designed by Eric Brengle B-books, Ltd.
Copyright 2009 by Cengage Learning Inc. All rights reserved
Lamb, Hair, McDaniel
10
Prepared by Amit Shah Frostburg State University
1
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
LO4
Describe media evaluation and selection techniques Discuss the role of public relations in the promotional mix
LO5
LOI
The Effects of Advertising
Discuss the effects of advertising on market share and consumers
LOI

U.S. advertising was forecasted at nearly $480 billion in 2008 In 2005, 32 companies spent over $1 billion each The advertising and marketing services employ 800,000 people Ad budgets of some firms are almost $4 billion annually
LOI

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

The average U.S. citizen is exposed to
hundreds of ads each day.
Advertising may change a consumers

negative attitude toward a product, or reinforce a positive attitude. ranking of a brands attributes.
Advertising can affect consumer
LOI
LOI
REVIEW LEARNING OUTCOME

Effects of Advertising
LO2
Major Types of Advertising
Identify the major types of advertising
10
LO2

Institutional Advertising Enhances a companys image rather than promotes a particular product.
Product Advertising
Touts the benefits of a specific good or service.
11
LO2

Corporate identity
Institutional Advertising
Advocacy advertising Pioneering
Product Advertising
Competitive Comparative
12
LO2
Product Advertising
Pioneering
Stimulates primary demand for new product or category Used in the PLC introductory stage Influences demand for brand in the growth phase of the PLC Often uses emotional appeal Compares two or more competing brands product attributes Used if growth is sluggish, or if competition is strong
http://www.pizzahut.com http://www.papajohns.com
Competitive
Comparative
Online
13
LO2

The Major Types of Advertising
14
LO3 Creative Decisions in Advertising
Discuss the creative decisions in developing an advertising campaign
15
LO3
Creative Decisions in Advertising
Advertising Campaign
A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals.
16
LO3
Creative Decisions in Advertising

Determine the advertising objectives
Make creative decisions
Make media decisions
Evaluate the campaign

17
Setting Objectives: The DAGMAR Approach
Define target audience
Define desired percentage change
Define the time frame for change
LO3
18
LO3
Creative Decisions
Identify product benefits Develop and evaluate advertising appeals Execute the message Evaluate the campaigns effectiveness
19
LO3
Identify Product Benefits

Sell the Sizzle, not the Steak Sell products benefits, not its attributes A benefit should answer Whats in it for me? Ask So? to determine if it is a benefit
20
LO3
Identify Product Benefits

SoBe Life Water has reformulated five delicious, low-calorie flavors, each infused with essential vitamins and healthy herbal ingredients.
Attribute
- So?
SoBe Life Water is not only an enhanced water; it is a lifestyle unto itself. It provides consumers the healthiest, most fun and refreshing products, delivering the incredibly positive benefits of hydration.
21
Benefit
LO3
Profit Health Love or romance Fear Admiration Convenience Fun and pleasure Vanity and egotism Environmental Consciousness
Advertising Appeals
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
22
LO3
Unique Selling Proposition

Unique Selling Proposition
A desirable, exclusive, and believable advertising appeal selected as the theme for a campaign.
23
Executing the Message

Scientific Musical Slice-of-Life Lifestyle
Demonstration
Spokesperson/ Testimonial
Mood or Image
Fantasy Real/ Animated Product Symbols Humorous
LO3
24
LO3

Creative Decisions for Ad Campaign
Set advertising objectives Identify benefits Develop appeal
Evaluating results helps marketers adjust objectives for future campaigns

Execute message
Evaluate campaign results

25
LO4
Media Decisions in Advertising
Describe media evaluation and selection techniques
26
LO4 Media Decisions in Advertising

Monitored Media Newspapers Magazines Yellow Pages Internet Radio Television Outdoor Media
Unmonitored Media Direct Mail Trade Exhibits Cooperative Advertising Brochures Coupons Catalogs Special Events
27
LO4
Major Advertising Media

Newspapers Magazines Radio Television Outdoor Media Yellow Pages Internet
28
LO4
Newspapers
Advantages
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
Disadvantages
Limited demographic selectivity Limited color Low pass-along rate May be expensive
29
LO4
Cooperative Advertising
Cooperative Advertising
An arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturers brand.
30
LO4
Magazines
Advantages
Disadvantages

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
31
LO4
Advantages
Low cost
Radio
Disadvantages
No visual treatment Short advertising life High frequency to generate comprehension and retention Background distractions Commercial clutter
Immediacy of message Short notice scheduling No seasonal audience change Highly portable Short-term advertiser commitments Entertainment carryover

32
LO4
Advantages

Television
Disadvantages
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
Wide, diverse audience Low cost per thousand Creative opportunities for demonstration Immediacy of messages Entertainment carryover Demographic selectivity with cable
33
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.
34
LO4
Outdoor Media
Advantages
Repetition Moderate cost Flexibility Geographic selectivity
Disadvantages
Short message Lack of demographic selectivity High noise level

35
LO4
Advantages
Internet
Disadvantages
Difficult to measure ad effectiveness and ROI Ad exposure relies on click through from banner ads Not all consumers have access to Internet

Fast growing Ability to reach narrow target audience Short lead time Moderate cost
http://www.fox.com http://www.abc.com
Online
36
LO4
Videogame Advertising
In 2006, Microsoft acquired Massive inc., a startup that places ads in video games. Ads are inserted into the game environment. Video games could become a large new medium for advertising.
SOURCE: Robert A. Guth and Nick Wingfield, Microsofts Massive Move into Game Ads, Wall Street Journal, April 26,2006, B1.
37
LO4
Cell Phones
Newest advertising media Useful for reaching youth market 3 billion cell phone users in the world In 2006 cell phone ad sales reached over $400 million in U.S. nearly $900 million worldwide
38
LO4
Media Selection
Media Mix Combination of media to be used for a promotional campaign Cost per contact The cost of reaching one member of the target market Reach number of target consumers exposed to a commercial at least once during a specific period, usually four weeks Frequency number of times an individual is exposed to a given message during a specific period
39
LO4 Qualitative Factors in Media
Selection
Attention to the commercial and the program Involvement Program liking Lack of distractions Other audience behaviors
40
LO4
Media Scheduling
Continuous Media Schedule Advertising is run steadily throughout the period.
Flighted Media Schedule
Advertising is run heavily every other month or every two weeks.
Pulsing Media Schedule
Advertising combines continuous scheduling with flighting.
Seasonal Media Schedule
Advertising is run only when the product is likely to be used.

41
LO4
Type:

Media Evaluation and Selection
Newspaper Magazine Radio Television Outdoor Internet Alternative Considerations: Mix Cost per contact Reach Frequency Audience selectivity
continuous
How much of each? How much per person? How many people? How often? How targeted is audience?
Scheduling:
flighted pulsing seasonal
Winter
Spring
Summer
Fall
42
LO5
Public Relations
Discuss the role of public relations in the promotional mix
43
LO5
Public Relations
The element in the promotional mix that:
evaluates public attitudes identifies issues of public concern executes programs to gain public acceptance
Public Relations
44
LO5
Functions of Public Relations

Press relations Product publicity Corporate communication Public affairs Lobbying Employee and investor relations Crisis management
45
LO5
Public Relations Tools

New product publicity Product placement Consumer education Event sponsorship Issue sponsorship Internet Web sites
http://www.vw.com http://www.chevrolet.com
Online
46
LO5
Example of Consumer Education

Corporations are teaching public school students about personal finance. People under age 25 are a fastgrowing 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?
SOURCE: Diya Gullapalli, Your Kids Teacher: The Bank, Wall Street Journal, April 8-9, 2006, B1.
47
LO5
Managing Unfavorable Publicity
Crisis Management
A coordinated effort to handle the effects of unfavorable publicity or of an unfavorable event.
48
LO5

The Role of Public Relations
49

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Advertising and Public Relations

Lamb, Hair, McDaniel

LOI LO2 LO3

Copyright 2009 by Cengage Learning Inc. All rights reserved

Copyright 2009 by Cengage Learning Inc. All rights reserved

The Effects of Advertising

Discuss the effects of advertising on market share and consumers

Copyright 2009 by Cengage Learning Inc. All rights reserved

The Effects of Advertising

Copyright 2009 by Cengage Learning Inc. All rights reserved

The Effects of Advertising

Copyright 2009 by Cengage Learning Inc. All rights reserved

Advertising and Market Share

Copyright 2009 by Cengage Learning Inc. All rights reserved

The Effects of Advertising on Consumers

 Advertising may change a consumers

 Advertising can affect consumer

Copyright 2009 by Cengage Learning Inc. All rights reserved

REVIEW LEARNING OUTCOME

Copyright 2009 by Cengage Learning Inc. All rights reserved

Major Types of Advertising

Identify the major types of advertising

Copyright 2009 by Cengage Learning Inc. All rights reserved

Major Types of Advertising

Touts the benefits of a specific good or service.

Copyright 2009 by Cengage Learning Inc. All rights reserved

Major Types of Advertising

Advocacy advertising Pioneering

Copyright 2009 by Cengage Learning Inc. All rights reserved

Copyright 2009 by Cengage Learning Inc. All rights reserved

REVIEW LEARNING OUTCOME

Copyright 2009 by Cengage Learning Inc. All rights reserved

LO3 Creative Decisions in Advertising

Discuss the creative decisions in developing an advertising campaign

Copyright 2009 by Cengage Learning Inc. All rights reserved

Creative Decisions in Advertising

Copyright 2009 by Cengage Learning Inc. All rights reserved

Creative Decisions in Advertising

Make creative decisions

Make media decisions

Evaluate the campaign

Setting Objectives: The DAGMAR Approach

Define target audience

Define desired percentage change

Define the time frame for change

Copyright 2009 by Cengage Learning Inc. All rights reserved

Identify Product Benefits

Copyright 2009 by Cengage Learning Inc. All rights reserved

Identify Product Benefits

Copyright 2009 by Cengage Learning Inc. All rights reserved

Copyright 2009 by Cengage Learning Inc. All rights reserved

Unique Selling Proposition

Copyright 2009 by Cengage Learning Inc. All rights reserved

Executing the Message

Fantasy Real/ Animated Product Symbols Humorous

Copyright 2009 by Cengage Learning Inc. All rights reserved

REVIEW LEARNING OUTCOME

Evaluating results helps marketers adjust objectives for future campaigns

Evaluate campaign results

Media Decisions in Advertising

Describe media evaluation and selection techniques

Copyright 2009 by Cengage Learning Inc. All rights reserved

LO4 Media Decisions in Advertising

Advtg & PR

Advtg & PR

Advertising may change a consumers

Advertising can affect consumer