Advertising and Public Relations

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chapter

Prepared by Deborah Baker Texas Christian University

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Learning Objectives
1. Discuss the effect of advertising on market share and consumers.

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2. Identify the major types of advertising. 3. Discuss the creative decisions in developing an advertising campaign.

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Learning Objectives (continued)

4. Describe media evaluation and selection techniques.

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5. Discuss the role of public relations in the promotional mix.

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Learning Objective

Discuss the effect of advertising on market share and consumers.

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Advertising
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
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Advertising and Market Share

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.

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Advertising and the Consumer

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.
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Learning Objective

Identify the major types of advertising.

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Major Types of Advertising

Institutional Institutional Advertising Advertising Product Product Advertising Advertising

Designed to enhance a companys Designed to enhance a companys image rather than promote a image rather than promote a particular product. particular product. Designed to tout the benefits of a Designed to tout the benefits of a specific good or service. specific good or service.

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Major Types of Advertising

Institutional Institutional Advertising Advertising
Enhance Enhance corporations identify corporations identify Advocacy Advocacy advertising advertising Pioneering Pioneering

Product Product Advertising Advertising

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Competitive Competitive Comparative Comparative

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Product Advertising
Pioneering Pioneering
Stimulates primary demand for new product or category

Competitive Competitive

Influence 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.
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Comparative Comparative
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Learning Objective
Discuss the creative decisions in developing an advertising campaign

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Advertising Campaign

A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals.

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Steps in Creating an Advertising Campaign

Determine the advertising objectives.

Make creative decisions.

Make media decisions.

Evaluate the campaign.

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Setting Objectives: The DAGMAR Approach

Goal of Goal of Advertising Advertising Objectives Objectives
Define Define Target Audience Target Audience Define Desired Define Desired Percentage Percentage Change Change
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Define the Time Define the Time Frame for Change Frame for Change

Creative Decisions
Identify Identify Product Benefits Product Benefits

Components Components of of Creative Creative Decisions Decisions

Develop and Evaluate Develop and Evaluate Advertising Appeals Advertising Appeals Execute Execute the Message the Message Evaluate the Evaluate the Campaigns Effectiveness Campaigns Effectiveness

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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
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Advertising Appeal

Reason for a person to buy a product.

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Common Advertising Appeals

Profit Profit Health Health Love or romance Love or romance Fear Fear Admiration Admiration Convenience Convenience Fun and pleasure Fun and pleasure Product saves, makes, or protects money Product saves, makes, or protects money

Appeals to body-conscious or health seekers Appeals to body-conscious or health seekers Used in selling cosmetics and perfumes Used in selling cosmetics and perfumes Social embarrassment, old age, losing health Social embarrassment, old age, losing health Reason for use of celebrity spokespeople Reason for use of celebrity spokespeople Used for fast foods and microwave foods Used for fast foods and microwave foods Key to advertising vacations, beer, parks Key to advertising vacations, beer, parks

Vanity and egotism Used for expensive or conspicuous items Vanity and egotism Used for expensive or conspicuous items Environmental Environmental Centers around environmental protection Centers around environmental protection Consciousness 6e Chapter 15 Version 2002 South-Western 19 Consciousness

Unique Selling Proposition

Desirable, exclusive, and believable advertising appeal selected as the theme for a campaign.

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Executing the Message

Scientific Scientific Musical Musical Slice-of-Life Slice-of-Life Lifestyle Lifestyle

DemonDemonstration stration

Common Common Executional Executional Styles Styles

Real/ Real/ Animated Animated Product Product Symbols 2002 Symbols

Spokesperson/ Testimonial

Mood or Mood or Image Image

Fantasy Fantasy Humorous Humorous

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Learning Objective
Describe media evaluation and selection techniques.

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Media Types
Newspapers Newspapers Magazines Magazines Radio Radio Television Television

Major Types Major Types of of Advertising Advertising Media Media

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Outdoor Outdoor Internet Internet Alternative Media Alternative Media

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Advertising Spending for 1999

Magazine Yellow Pages Internet Radio Television Outdoor Newspaper

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Newspapers
Advantages Advantages Year-round readership Geographic selectivity Immediacy High individual market coverage Short lead time
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Disadvantages Disadvantages Limited demographic selectivity Little color May be expensive Low pass-along rate Clutter Mass market medium
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Cooperative Advertising

An arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturers brand.

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Magazines
Advantages Advantages
Good reproduction Demographic selectivity Regional/local selectivity Long advertising life High pass-along rate
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Disadvantages Disadvantages
Higher cost per contact Long-term advertiser commitments Slow audience build-up Limited demonstration capabilities Lack of urgency Long lead time
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Radio
Advantages Advantages
Selectivity and audience segmentation Immediate and portable Geographic flexibility Entertainment carryover Short-term ad commitments
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Disadvantages Disadvantages
No visual treatment Short advertising life High frequency to generate retention Commercial clutter Background distractions
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Television
Advantages Advantages
Wide diverse audience Low cost per thousand Creative and demonstrative Immediacy of messages Entertainment carryover Demographic selectivity with cable
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Disadvantages Disadvantages
Short life of message Expensive with high campaign cost Little demographic selectivity with network Long-term advertiser commitments Long lead times Clutter
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Outdoor Media
Advantages Advantages High exposure frequency Moderate cost Flexibility Geographic selectivity Broad, diverse market
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Disadvantages Disadvantages Short message Lack of demographic selectivity High noise level

Internet and World Wide Web

Advantages Advantages Fast growing Ability to reach narrow target audience Short lead time Moderate cost Disadvantages Disadvantages

Difficult to measure ad effectiveness and ROI Ad exposure relies on click through Not all consumers have access to internet

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Alternative Media
Fax Machines Fax Machines Video Shopping Carts Video Shopping Carts Examples of Examples of Alternative Media Alternative Media Computer Computer Screen Savers Screen Savers Interactive Kiosks Interactive Kiosks Ads in Ads in Movies and Videos Movies and Videos
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Media Selection Considerations

Cost per Contact Cost per Contact

Factors Factors Influencing Influencing Media Mix Media Mix Decisions Decisions

Reach Reach

Frequency Frequency

Audience Selectivity Audience Selectivity

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Media Selection Considerations

Cost per Cost per Contact Contact Reach Reach Frequency Frequency Audience Audience Selectivity Selectivity
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The cost of reaching one The cost of reaching one member of the target market. member of the target market. The number of target consumers The number of target consumers exposed to a commercial at least exposed to a commercial at least once during a time period. once during a time period. The number of times an individual The number of times an individual is exposed to a message during a is exposed to a message during a time period. time period. The ability of an advertising The ability of an advertising medium to reach a precisely medium to reach a precisely defined market. defined market.
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Media Scheduling
Continuous Media Schedule Continuous Media Schedule

Flighted Media Schedule Flighted Media Schedule Pulsing Media Schedule Pulsing Media Schedule

Types of Types of Media Schedules Media Schedules

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Seasonal Media Schedule Seasonal Media Schedule

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Media Scheduling
Continuous Continuous Media Schedule Media Schedule Flighted Flighted Media Schedule Media Schedule Pulsing Pulsing Media Schedule Media Schedule Seasonal Seasonal Media Schedule Media Schedule
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Advertising is run steadily Advertising is run steadily throughout the period. throughout the period. Advertising is run heavily every Advertising is run heavily every other month or every two weeks. other month or every two weeks. Advertising combines continuous Advertising combines continuous scheduling with flighting. scheduling with flighting. Advertising is run only when the Advertising is run only when the product is likely to be used. product is likely to be used.
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Learning Objective
Discuss the role of public relations in the promotional mix.

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Public Relations
The Role of The Role of Public Relations Public Relations

Evaluates public Evaluates public attitudes attitudes Identifies issues Identifies issues of public concern of public concern

Executes Executes programs to gain programs to gain public public acceptance acceptance

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Functions of Public Relations

Press Relations Press Relations Product Publicity Product Publicity Corporate Communication Corporate Communication Public Affairs Public Affairs Lobbying Lobbying Employee and Investor Relations Employee and Investor Relations Crisis Management Crisis Management
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Public Relations Tools

New Product Publicity New Product Publicity Product Placement Product Placement Consumer Education Consumer Education Event Sponsorship Event Sponsorship Issue Sponsorship Issue Sponsorship Internet Web Sites Internet Web Sites
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Tools Tools Used By Used By PR PR Professionals Professionals

Managing Unfavorable Publicity

Crisis Management

A coordinated effort to handle the effects of unfavorable publicity or of an unfavorable event.

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