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
448
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
449
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
449
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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450
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.
Responsible Drinking
Bud
Mobil Oil
Pioneering
Product Advertising
Competitive
Designed to tout the benefits of a specific good
or service.
Comparative
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Product Advertising
451
Learning Objective
Identify major types of advertising.
2

• Stimulates primary demand for new product or
  category

Pioneering
Saturn
Western Products in Russia

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

Competitive
Olay

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

Comparative
Between Brands
Ford vs Chevy
Old vs New New Improved
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Advertising Campaign
452
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.
Internal
External
Small Company
Advertising Agency
1 or 2 People
1. Dev Adv Strategy
Larger Companies
2. Design Produce Ads
Staff in Mkt Dept
3. Schedule Buy Media
10
Learning Objective
Discuss creative decisions in developing an ad
campaign
3
453
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
Defining Advertising Goals for Measured Ad Results
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Step 2A. Identify Product Benefits
453
Learning Objective
Discuss creative decisions in developing an ad
campaign
3

• Sell the Sizzle, not the Steak

WOMEN IN SHAVING PRODUCT ADS

• Sell products benefits, not its attributes

SELL STRONG BONES, NOT MILK
WONDER BREAD

• A benefit should answer Whats in it for me?

• Ask So? to determine if it is a benefit

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2B. Common Advertising Appeals
455
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
454
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
Learning Objective
Discuss creative decisions in developing an ad
campaign
456
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
Different Countries Have Different Acceptable
Styles
2D. Post Campaign Evaluation
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Advertising Spending for 1999
458
Learning Objective
Describe media evaluation and selection
techniques.
4
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A. Newspapers
Learning Objective
Describe media evaluation and selection
techniques.
458
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
458
Learning Objective
Describe media evaluation and selection
techniques.
4
An arrangement in which the manufacturer and the
retailers 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
458
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
459
Learning Objective
Describe media evaluation and selection
techniques.
4
1. Advantages
2. Disadvantages
a. No visual treatment b. Short advertising
life c. High frequency to generate retention d.
Commercial clutter e. Background distractions
a. Selectivity and audience segmentation b.
Immediate and portable c. Geographic
flexibility d. Entertainment carryover e.
Short-term ad commitments
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D. Television
459
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
461
Learning Objective
Describe media evaluation and selection
techniques.
4
1. Advantages
High exposure frequency Moderate
cost Flexibility Geographic selectivity Broad,
diverse market
2. Disadvantages

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

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F. Internet and World Wide Web
461
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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Learning Objective
Describe media evaluation and selection
techniques.
462
4
1. Fax Machines
Unwanted Ads
2. Gas Pumps
Examples of Alternative Media
Banner Ads
3. Computer Screen Savers
4. Interactive Kiosks
Wayne Co Visitors Bureau
5. Ads in Movies Videos
6. DVDs
AOL
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463
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
466
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
467
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 ENGERYLast Summer
ARTICLES ABOUTTREE TRIMMING
RELIABILITY
AEPThis Winter
TIME W/O SERVICE
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B. Functions of Public Relations
Learning Objective
The role of public relations in the promotional
mix.
468
5
1. Press Relations
SCHOLARSHIP NOTES
2. Product Publicity
RECRUITING MATERIAL
3. Corp Communication
ATI EVENTS
4. Public Affairs
BIOHIO
5. Lobbying
REP GIBBS
6. Stakeholder Relations
ConversATIons
7. Crisis Management
SPREADING CORN
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468
Learning Objective
The role of public relations in the promotional
mix.
5
1. New Product Publicity
C. PUBLIC RELATIONS TOOLS Used By PR Professionals
2. Product Placement
Free Samples
3. Consumer Education
Hospital Wellness Prog
4. Event Sponsorship
Nextel
NASCAR
5. Issue Sponsorship
6. Internet Web Sites
7. Press Release
ATI Scholarship Winners
8. News Conference
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Managing Unfavorable Publicity
471
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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Sales Promotion
Learning Objective
472
Define and state the objectives of sales
promotion.
6
Marketing communication activities, other than
advertising, personal selling, and public
relations, in which a short-term incentive
motivates a purchase.
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Learning Objective
472
Define and state the objectives of sales
promotion.
6
Immediate Purchases
Increase Trial
USES OF SALES PROMOTION
Boost consumer inventory
Encourage repurchase
Increase ad effectiveness
Encourage brand switching
Encourage brand loyalty
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Learning Objective
472
Define and state the objectives of sales
promotion.
6
Type of Buyer
Desired Results
Sales PromotionExamples
Loyal Customers

• Reinforce behavior
• Increase consumption
• Change timing

• Loyalty marketing
• Bonus packs

Competitors Customers

• Break loyalty
• Persuade to switch

• Sampling
• Sweepstakes, contests, premiums

Brand Switchers

• Persuade to buy your brand more often

• Price-lowering promotion
• Trade deals

Price Buyers

• Appeal with low prices
• Supply added value

• Coupons, price-offpackages, refunds
• Trade deals

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Learning Objective
Discuss most common tools of consumer sales
promotion.
473
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A1. Coupon
A certificate that entitles consumers to an
immediate price reduction.
1 Yr 6.2 billion _at_ .63
A2. Rebate
A cash refund given with proof of purchase of a
product during a specific product.
St Turbo Tax Free after Rebate
B. Premium
An extra item offered to the consumer, usually in
exchange for some proof of purchase.
Buy Seed Corn Get Jacket
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Learning Objective
Discuss most common tools of consumer sales
promotion.
475
7
A promotional program designed to build
long-term, mutually beneficial relationships
between a company and key customers.
3a. Loyalty Marketing Program(Continuity Plans)
Multiple Year Insurance Discounts
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Learning Objective
Discuss most common tools of consumer sales
promotion.
475
7
3b. Frequent Buyer Program
A loyalty program in which loyal consumers are
rewarded for making multiple purchases.
Frequent Flyer Clubs
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Learning Objective
Discuss most common tools of consumer sales
promotion.
475
7
4. Contest
Promotions that require skill or ability to
compete for prizes.
Pillsbury Baking Contest
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Learning Objective
476
Discuss most common tools of consumer sales
promotion.
7
Promotions that depend on chance or luck, with
free participation.
5. Sweepstakes
Publishers Clearing House
6. Sampling
A promotional program that allow the consumer
the opportunity to try a product or service for
free.
Soap, Toothpaste, Deodorant, Shampoo
a. Direct mail
b. Door-to-door delivery
c. Packaging with another product
d. Retail store demonstration
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Learning Objective
477
Discuss most common tools of consumer sales
promotion.
7
7. Goals of Point-of-Purchase Displays
Loss Leaders
a. Build traffic
b. Advertise the product
c. Induce impulse buying
Check-Out Candy
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Learning Objective
477
Discuss most common tools of consumer sales
promotion.
7
a. Free merchandise
8. Effective Types of On-Line Sales Promotion
Buy One, Get 1 Free
b. Sweepstakes
Publishers Clearing House
c. Free shipping
d. Coupons
National
Local
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Push Money
Learning Objective
List the most common forms of trade sales
promotion.
478
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Trade Allowance
A price reduction offered by manufacturers to
intermediaries, such as wholesalers and retailers.
Money offered to channel intermediaries to
encourage them to push products--that is, to
encourage other members of the channel to sell
the products.
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Learning Objective
478
List the most common forms of trade sales
promotion.
8
Training
Free Merchandise
Jackets, Hats
Store Demonstration
Conventions Trade Shows
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The Role of Trade Sales Promotion
479
Learning Objective
List the most common forms of trade sales
promotion.
8
1. Gain new distributors
2. Obtain support for consumer sales promotions
3. Build or reduce dealer inventories
4. Improve trade relations
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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.

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chapter
44
NEXT TOPIC

• CHAPTER 16
• PRICING