16

CHAPTER

Advertising and Public Relations

Chapter Objectives
1 Identify the three major advertising objectives and the two basic categories of advertising.
2 List the major advertising strategies. 3 Describe the process of creating an advertisement. 4 Identify the major types 7 Explain the roles of crossof advertising appeals and promotion, public discuss their uses. relations, publicity, and ethics in an organizations List and compare the 5 promotional strategy. major advertising media. Outline the organization 6 of the advertising function and the role of an advertising agency. 8 Explain how marketers assess promotional effectiveness.

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ADVERTISING
Advertising Paid, non- personal communication through various media about a business firm, not-forprofit organization, product, or idea by a sponsor identified in a message that is intended to inform or persuade members of a particular audience.

TYPES OF ADVERTISING
Product advertising Nonpersonal selling of a particular good or service.
Institutional advertising Promotion of a concept, an idea, a philosophy, or the goodwill of an industry, company, organization, person, geographic location, or government agency.

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OBJECTIVES OF ADVERTISING
Informative advertising Promotion that seeks to develop initial demand for a good, service, organization, person, place, idea, or cause. Persuasive advertising Promotion that attempts to increase demand for an existing good, service, organization, person, place, idea, or cause. Reminder advertising Advertising that reinforces previous promotional activity by keeping the name of a good, service, organization, person, place, idea, or cause before the public. Advertisers coordinate advertising objectives with the products stage in the product life cycle.

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ADVERTISING STRATEGIES
Advertising is a means of bringing buyers and sellers together. Marketers often combine several strategies to meet their objectives.

COMPARATIVE ADVERTISING
Comparative advertising Advertising strategy that emphasizes messages with direct or indirect promotional comparisons between competing brands. Market leaders seldom acknowledge competing brands.

CELEBRITY TESTIMONIALS
Use of celebrity spokespeople for products. Can build brand equity but can hurt brand if celebrity is hit by scandal.

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RETAIL ADVERTISING
Includes all advertising by retail stores that sell goods or services directly to the consuming public. Cooperative advertising Strategy in which a retailer shares advertising costs with a manufacturer or wholesaler.

INTERACTIVE ADVERTISING
Involves two-way promotional messages transmitted through communication channels that induce message recipients to participate actively in the promotional effort. Changes balance between marketers and consumers.

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ADVERTISING MESSAGES
Advertising campaign Series of different but related ads that use a single theme and appear in different media within a specified time period.

ADVERTISING APPEALS
Appeals can provide information or appeal to emotion. Fear appealsimply or state that incorrect buying decisions could lead to bad consequences.

Humor seeks to create positive mood related to good or service.

Ads based on sex can be attention-getting, but they boost recall only if the appeal is appropriate to the type of product.

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DEVELOPING AND PREPARING ADS

Goals: Gain attention. Inform and/or persuade. Lead to purchase or other desired action. After idea conception, ad must be refined from rough sketch to finished layout.

CREATING INTERACTIVE ADS

Lively, engaging content. Use of advertising in games, or advergames. Banners are the most common form of online advertisement. Use of pop-ups is declining; adware seen as disreputable.

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MEDIA SELECTION
Broadcast Television Cable Television Radio Newspaper Direct Mail Magazines- Consumer/Business Outdoor Internet

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MEDIA SCHEDULING
After selecting media, marketers determine the most effective timing and sequence for a series of advertisements. Influenced by seasonal sales patterns, repurchase cycles, and competitors activities. Measure effectiveness in three ways: Reachthe number of people exposed to an advertisement. Frequencythe number of times an individual is exposed to an advertisement. Minimum of three exposures is recommended. Gross rating pointthe product of the reach times the frequency.

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ORGANIZATION OF THE ADVERTISING FUNCTION

Organizational arrangements vary from company to company. Usually organized as a staff department reporting to a vice president of marketing. Major tasks include include advertising research, design, copywriting, media analysis, and in some cases, sales and trade promotion.

ADVERTISING AGENCIES
Advertising agency Firm whose marketing specialists help advertisers plan and prepare advertisements. May offer creativity and objectivity that is difficult to maintain in an internal department.

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PUBLIC RELATIONS
Firms communications and relationships with its various publics, including customers, employees, stockholders, suppliers, and government agencies.

Serves broad objectives by enhancing prestige and image of all parts of the organization.
PR department is link between the firm and the media. Nonmarketing public relationsa companys messages about general management issues. Marketing public relations (MPR)narrowly focused public relations activities that directly support marketing goals. Publicity Nonpersonal stimulation of demand for a good, service, place, idea, person, or organization by unpaid placement of significant news regarding the product in a print or broadcast medium.

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CROSS-PROMOTION
Cross-promotion Promotional technique in which marketing partners share the cost of a promotional campaign that meets their mutual needs. Provide greater benefits in return for both partners. Example: Cingular Wireless promoting artists such as Coldplay, Gwen Stefani, and Alicia Keys. Cingular sells more ringtones because it features these artists. Artists gain greater exposure.

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MEASURING PROMOTIONAL EFFECTIVENESS

Promotional prices vary widely. Because of expense, advertising professionals must demonstrate how promotional programs contribute to increased sales and profits.

MEASURING ADVERTISING EFFECTIVENESS

Media researchassesses how well particular medium delivers message, where and when to place the message, and the size of the audience.

Message researchtests consumer reactions to an advertisements creative message.

Pretestingassessing an advertisements likely effectiveness before it is completed.

Posttestingassessing advertisements effectiveness after it has appeared.

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MEASURING PUBLIC-RELATIONS EFFECTIVENESS

Count media placements, conducting public opinion polls. Conduct focus groups, interview opinion leaders, before-and-after polls.

EVALUATING INTERACTIVE MEDIA

Hitsuser requests for a file. Impressionsnumber of times a viewer sees an ad. Click-throughsuser clicks ad for more information. View-throughmeasure response over time.

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ETHICS IN NONPERSONAL SELLING

ADVERTISING ETHICS
Advertising to children, advertising alcohol, and the use of cookies on Web sites are all areas of ethical controversy. Pufferyexaggerated claims of a products superiority or the use of subjective or vague statements that may not be literally true. Uniform Commercial Code distinguishes puffery from specific, quantifiable statements.

ETHICS IN PUBLIC RELATIONS

Issues include performing services for companies that produce unsafe products. Public Relations Society of Americas Code of Professional Standards prohibits promoting products or causes widely known to be harmful.