Advertising and Public Relations

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Advertising and Public Relations
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Prepared by Deborah Baker Texas Christian
UniversityRevisedby Dr. R. BaurAgricultural
Technical Institute
chapter
2
Chapter 12 Review

• 1. The role of promotion in the marketing mix.
• 2. Elements of the promotional mix.
• The communication process.
• Explain the goal and tasks of promotion.
• AIDA concept and its relationship to the
  promotional mix.
• Factors that affect the promotional mix.
• Concept of integrated marketing communications.

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chapter
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Chapter 13 Learning Objectives

• 1. Discuss the effect of advertising on market
  share and consumers.
• 2. Identify the major types of advertising.
• Discuss the creative decisions in developing an
  advertising campaign.
• Describe media evaluation and selection
  techniques.
• Discuss the role of public relations in the
  promotional mix.

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chapter
4
Learning Objective
438
Discuss the effect of advertising on market
share consumers.
1

• U.S. advertising spending exceeds 215 billion
  per year
• Industry employs only 272,000
• Ad budgets of some firms exceed over 2 billion
  per year (6 Mill/Day)

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Advertising and Market Share
439
Learning Objective
Discuss the effect of advertising on market
share consumers.
1

• New brands spend proportionately more for
  advertising than old ones.
• A certain level of exposure is needed to affect
  purchase habits.
• Beyond a certain level, diminishing returns set
  in.

Frito Lay Baked vs Frito Lay Regular
Repeated Exposure in Multiple Media
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Advertising and the Consumer
439
Learning Objective
Discuss the effect of advertising on market
share consumers.
1

• Average U.S. citizen is exposed to hundreds of
  ads each day.
• Advertising may change a consumers attitude
  toward a product.
• Advertising can affect consumer ranking of brand
  attributes.

1/3 of Every TV Hour is Ads
Repositioning
Car Power Speed vs Safety
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440
Learning Objective
Identify major types of advertising.
2
Enhance corporations identify
Institutional Advertising
Advocacy Advertising
Designed to enhance a companys image rather
than promote a particular product.
Alaska Oil Spill
Mobil Oil
Pioneering
Product Advertising
Competitive
Designed to tout the benefits of a specific good
or service.
Comparative
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Product Advertising
441
Learning Objective
Identify major types of advertising.
2

• Stimulates primary demand for new product or
  category

Pioneering
Saturn

• Influence demand for brand in the growth phase of
  the PLC.
• Often uses emotional appeal.

Competitive
Emotional Appeals For Brands

• Compares two or more competing brands product
  attributes.
• Used if growth is sluggish, or if competition is
  strong.

Comparative
Ford vs Chevy
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Advertising Campaign
442
Learning Objective
Discuss creative decisions in developing an ad
campaign
3
A series of related advertisements focusing on a
common theme, slogan, and set of advertising
appeals.
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443
Learning Objective
Discuss creative decisions in developing an ad
campaign
3
Steps in Creating an Advertising Campaign
Step 1. Setting Advertising Objectives
Define Target Audience
Define the Time Frame for Change
Define Desired Percentage Change
WHO
BY WHEN
HOW MUCH
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Step 2. Creative Decisions
443
Learning Objective
Discuss creative decisions in developing an ad
campaign
3
A. Identify Product Benefits
Components of Creative Decisions
B. Develop and Evaluate Advertising Appeals
C. Execute the Message
D. Evaluate the Campaigns Effectiveness
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Step 2A. Identify Product Benefits
443
Learning Objective
Discuss creative decisions in developing an ad
campaign
3

• 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

WOMEN IN SHAVING PRODUCT ADS
SELL STRONG BONES, NOT MILK
WONDER BREAD
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2B. Common Advertising Appeals
444
Reasons for a person to buy a product.
Profit
Product saves, makes, or protects money
Health
Appeals to body-conscious or health seekers
Love or romance
Used in selling cosmetics and perfumes
Fear
Social embarrassment, old age, losing health
Reason for use of celebrity spokespeople
Admiration
Convenience
Used for fast foods and microwave foods
Fun and pleasure
Key to advertising vacations, beer, parks
Vanity and egotism
Used for expensive or conspicuous items
Environmental Consciousness
Centers around environmental protection
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Unique Selling Proposition
444
Learning Objective
Discuss creative decisions in developing an ad
campaign
3
Desirable, exclusive, and believable advertising
appeal selected as the theme for a campaign.
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2C. Executing the Message
445
Learning Objective
Discuss creative decisions in developing an ad
campaign
3
10. Scientific
1. Slice-of-Life
9 Musical
2. Lifestyle
Common Executional Styles
8. Demon- stration
3. Spokes-person/ Testimonial
7. Mood or Image
4. Fantasy
6. Product Symbols
5. Humorous
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Advertising Spending for 1999
447
Learning Objective
Describe media evaluation and selection
techniques.
4
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A. Newspapers
448
Learning Objective
Describe media evaluation and selection
techniques.
4
1. Advantages
2. Disadvantages
a. Year-round readership b. Geographic
selectivity c. Immediacy d. High individual
market coverage e. Short lead time
a. Limited demographic selectivity b. Little
color c. May be expensive d. Low pass-along
rate e. Clutter f. Mass market medium
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Cooperative Advertising
448
Learning Objective
Describe media evaluation and selection
techniques.
4
An arrangement in which the manufacturer and the
retailer(s) split the costs of advertising the
manufacturers brand.
TV AD....AT YOUR NORTHERN OHIO BUICK DEALERS
MAG AD OH FARMER LISTS ALL OH JD DEALERS
NEWPAPER FLYER LISTING ALL TRUE VAL STORES
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B. Magazines
448
Learning Objective
Describe media evaluation and selection
techniques.
4
2. Disadvantages

• Higher cost per contact
• Long-term advertiser commitments
• Slow audience build-up
• Limited demonstration capabilities
• Lack of urgency
• Long lead time

1. Advantages
a. Good reproduction b. Demographic
selectivity c. Regional/local selectivity d. Long
advertising life e. High pass-along rate
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C. Radio
450
Learning Objective
Describe media evaluation and selection
techniques.
4
1. Advantages
2. Disadvantages
a. Selectivity and audience segmentation b.
Immediate and portable c. Geographic
flexibility d. Entertainment carryover e.
Short-term ad commitments
a. No visual treatment b. Short advertising
life c. High frequency to generate retention d.
Commercial clutter e. Background distractions
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D. Television
450
Learning Objective
Describe media evaluation and selection
techniques.
4
2. Disadvantages
1. Advantages
Short life of message Expensive with high
campaign cost Little demographic selectivity with
network Long-term advertiser commitments Long
lead times Clutter
a. Wide diverse audience b. Low cost per
thousand c. Creative demonstrative d. Immediacy
of messages e. Entertainment carryover f.
Demographic selectivity with cable
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E. Outdoor Media
451
Learning Objective
Describe media evaluation and selection
techniques.
4
1. Advantages
2. Disadvantages
High exposure frequency Moderate
cost Flexibility Geographic selectivity Broad,
diverse market

• Short message
• Lack of demographic selectivity
• High noise level

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F. Internet and World Wide Web
451
Learning Objective
Describe media evaluation and selection
techniques.
4
1. Advantages
2. Disadvantages
a. Difficult to measure ad effectiveness and
ROI b. Ad exposure relies on click through c.
Not all consumers have access to internet
a. Fast growing b. Ability to reach narrow target
audience c. Short lead time d. Moderate cost
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452
Learning Objective
Describe media evaluation and selection
techniques.
4
1. Fax Machines
2. Video Shopping Carts
Examples of Alternative Media
3. Computer Screen Savers
4. Interactive Kiosks
5. Ads in Movies and Videos
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454
Learning Objective
Describe media evaluation and selection
techniques.
4
Factors Influencing Media Mix Decisions
Cost per Contact
The cost of reaching one member of the target
market.
The number of target consumers exposed to a
commercial at least once during a time period.
Reach
Frequency
The number of times an individual is exposed to a
message during a time period.
Audience Selectivity
The ability of an advertising medium to reach a
precisely defined market.
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Media Scheduling
457
Learning Objective
Describe media evaluation and selection
techniques.
4
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.
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Learning Objective
458
The role of public relations in the promotional
mix.
5
A. The Role of Public Relations
1. Evaluates public attitudes
3. Executes programs to gain public acceptance
2. Identifies issues of public concern
FIRST ENGERY
ARTICLES ABOUTTREE TRIMMING
RELIABILITY
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B. Functions of Public Relations
458
Learning Objective
The role of public relations in the promotional
mix.
5
1. Press Relations
SCHOLARSHIP NOTES
2. Product Publicity
RECRUITING MATERIAL
ATI EVENTS
3. Corp Communication
4. Public Affairs
BIOHIO
5. Lobbying
REP GIBBS
6. Stakeholder Relations
ConversATIons
7. Crisis Management
SPREADING CORN
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459
Learning Objective
The role of public relations in the promotional
mix.
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1. New Product Publicity
C. PUBLIC RELATIONS TOOLS Used By PR Professionals
2. Product Placement
3. Consumer Education
4. Event Sponsorship
5. Issue Sponsorship
6. Internet Web Sites
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Managing Unfavorable Publicity
462
Learning Objective
The role of public relations in the promotional
mix.
5
Crisis Management
A coordinated effort to handle the effects of
unfavorable publicity or an unfavorable event.
AIRLINE CRASHES
OIL SPILLS
PLANT CLOSING
ILLNESS ON CRUISE SHIPS
ENERGY BLACKOUTS
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Chapter 13 Summary

• 1. Discuss the effect of advertising on market
  share and consumers.
• 2. Identify the major types of advertising.
• Discuss the creative decisions in developing an
  advertising campaign.
• Describe media evaluation and selection
  techniques.
• Discuss the role of public relations in the
  promotional mix.

13
chapter
32
NEXT TOPIC

• CHAPTER 16
• PRICING