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Chapter 12: Advertising and PR

1. Advertising: the image of marketing


- Product placement (product plugs in films) are turning up more often because people
watch less ads on TV (86% skip the adds on tv)
- Advertising: non personal communication paid for by an identified sponsor using mass
media to persuade and inform audience: can be fun, glamorous, annoying and
informative let customers know what they are selling and why people should buy it
today.
- Advertising is a potent force that creates desire for products by transporting us to
imaginary worlds where people are happy, beautiful, rich
- Repeat the message as often as it deems
Rely on public relations event in addition to traditional advertising

1. Types of advertising
marketers have to decide which type of ad will work best given their organizational and
marketing goals
Product advertising:
=Message focuses on specific good or service; most of the advertisements we see
are product advertisements
Institutional advertising
= promotes activities, personality or point of view of an organization or company or
can be used for recruitment purposes to attract potential employees to jobs
o Advocacy advertising: state firms position on an issue to sway public opinion
o Public service advertisement (PSAs): ads that media run free for charge;
promote non-profit organizations; e.g. discouraging drunk driving
Pro-bono basis: for free, advertising agencies usually take 1 or more public
service campaigns.
Retail and local advertising
= encourage customers to shop at specific store or use local service (informs us
about shop hurs, location and products)
Consumer generated advertising:
Generation C, consumer generated content such as that included in blogs is
building on the web. - Encourage customers to contribute to next advertising
campaign.
Putting content in the hands of consumers is risky.
Ex: Loral: You make the commercial

2. Who creates advertising?


Trend towards DIY advertising BUT most advertising is far more complicated
Advertising campaign = a coordinated, comprehensive plan that carries out
promotion objectives and results in a series of advertisements placed in media over
a period of time.
Multiple messages with all ads in the campaign having the same look and feel
Need broad range of skilled people Most of the time: outside advertising
agencies
o Limited service agency: provides one or more specialized services
o Full-service agency: provides most or all of the services needed to mount a
campaign (research, creation of ad copy and art, media selection, production)
o Campaign requires different specialists to produce:
Account management: soul of the operation develops campaign
strategy for the client, supervises day-to-day activities; primary liaison.
Make sure that the client is happy while verifying that people within the
agency are executing the desired strategy.
Creative services: heart of the communication efforts; dream upon and
produce ads
creative directors, copywriter, art director. They are the artists who
breathe life into marketing objectives and craft messages that will interest
consumers.
Research and marketing services: brains of the campaign, they collect
and analyze information that will help account executives develop a sensible
strategy. They assist creative in getting consumers reactions to different
versions of ads and provide detail on the target group.
Media planner: legs of the campaign; determine which communication
vehicles most appropriate; recommend most effective and efficient means
for delivering the ad by deciding where, when and how often it will appear
Use integrated marketing communication (IMC): advertising is just one element of it
must work together with PR, sales promotion and direct
marketing.

2. Developing the advertising campaign


should be related to the organizations overall
communications goals
The firm (and its outside agency if it uses one) must have a
good idea of whom it wants to reach, what it will take to
appeal to this market, and where and when the message
should be placed.

o Step1: identify the target audiences


understand as much as possible about them and what turns them on and off.
Marketers/researchers often identify the target audience for an advertising campaign from
research related to a segmentation strategy: Researcher try to get inside the customers
head to understand just how to create a message to which he or she will understand and
respond to.

o Step2: establish message and budget objectives


Objectives should be consistent with the overall communications plan.
Underlying message and costs need to be related to what the marketer is trying to say
about the product and what the marketer is willing or able to spend. Objectives for both
- Setting message objectives
o Advertisement alone is quiet limited in what it achieves. It:
Inform (aim to make customer knowledgeable about the features of the
product and how to use it).
Persuade (persuade to like brand; prefer it over another one)
Remind (keep the name of the brand in front of customers).
- Setting budget objectives
o Must allocate a % of their overall communications budget depending on what
the company can afford
o Major approaches and techniques to setting overall promotional budgets, such
as percentage of sales and objective task methods (chapter 11), also set
advertising budget

o Step3: design the ads


Creative strategy: process that turns a concept into an advertisement; spark
between objective and execution the how. develop a big idea in a tangible,
attention-getting, memorable way
Advertising appeal: central idea of the ad
can be emotional with dramatic coulour or powerful images. Sexy people or
experts,
o Reasons why: a unique selling proposition (USP): effective if there is some
clear product advantage that consumers can readily identify and that is
important to them. It gives consumers a single, clear reason why one product is
better at solving a problem. It focuses on a need and show how to satisfy it.
o Comparative advertising: explicit names one or more competitors
Best for brands that have a smaller share for those that can focus on a
specific feature that makes them superior to a major brand; risk that
consumers feel that Goliath is picking on David
o Demonstration: the ad shows a product in action to prove that it performs as
claimed (celebrity endorsement useful when consumers are unable to identify
important benefits except seeing the product in use).
o Testimonial: a celebrity, expert, or man in the street states the products
effectiveness (effective for products that need to differentiate themselves from
competitors).
o Slice of life: presents a (dramatized) scene from everyday life consumers
feel good about if they see real people buying and using them.
o Lifestyle: shows person(s) attractive to target market in appealing setting
people who buys it will attain the lifestyle
o Fear appeals: negative consequences of not using a product; e.g. deodorant,
gum, life insurance ad focus on physical harm or create concern for social
harm or disapproval
o Sex appeals: selling sex rather than products get consumers attention;
more likely to be effective when there is a connection between product and sex
(or at least romance)
o Humorous appeals: break through advertising clutter: can be tricky what
is funny to one person may not be for another cultures have humor
o Slogans: simple linguistic devise that is memorable; jingles: same just set
slogan to music

o Step4: pre-test what the ads will say


Pre-testing: research that goes on in the early stages of a campaign center on
gathering basic information that will help planners be sure they have accurately
defined the products market, consumers and competitors survey or focus group
Copy testing: measures the effectiveness of ads; process determines whether
consumers are receiving, comprehending, and responding to ad according to plan

o Step5: choose the media types and media schedule


Media planning: problem-solving process for getting a message to a target
audience in the most effective way. Include: audience selection and where, when
and how often the expose should be
Aperture: First task is to find out when and where people in the target market
are most likely to be exposed to the communication (aperture: window to reach
the target market)

No perfect medium for advertising depends on the specific target audience, the
objective of the message and the budget Need to match up the profile of the target
market with specific media vehicles.
No laughing matter

1) Where to say it: traditional media


Vehicle Pros cons
Television Creative and flexible Very expensive on absolute
Medium of Most cost-effective way to reach mass basis (too high for smaller
audience companies)
choice for
Cable and satellite TV allow to reach Message quickly forgotten
national or unless repeated often
selected groups
regional Prestigious way Audience increasingly
companies Demonstrate product in use fragmented
Entertainment and excitement Fewer people watching national
High impact: sight and sound TV
Zapping during commercials
Rising cost shorter ads
more clutter
Less effective as DVRs and
video-on-demand grow
popularity
radio Good for selectively targeting an Lack of attention
audience Difficult to buy radio time
Is heard out of home (national ads)
Personal and intimate level Not appropriate for products
Local personalities that must be seen
Low cost: producing spot and for Small audience of individual
running it repeatedly stations means ads must be
Short lead time modified quickly placed with many different
Sound effects imagination to create stations and must be repeated
vivid scene frequently
newspaper Wide exposure provides extensive Most people spend not much
market coverage time reading news paper
Flexible format permits the use of Low among teenagers and
color, different size ads, and targeted young adults
editions Short life span
Ability to use detailed copy Very cluttered environment
Allows local retailers to tie in with Quality of images low
national advertisers Not effective in reaching specific
People are in the right mental frame to audience
process advertisements about new
products, sales, etc.
Timeliness, i.e., short lead time
between placing ad and having it run
Excellent for local advertising and for
events that demand a quick response
magazines Audience can be narrowly targeted by Expensive: highest cost per
specialized magazines exposure
High credibility and interest level Long deadlines reduce flexibility
good environment for ads Several magazines to reach
Long life, passed to other readers majority of target market
Visual quality excellent Clutter
Detailed product information
Selective binding advertisements
for local business included in issues at
specific locations only
Directories Down to earth
Yellow pages
Outdoor; out-of- Most of the population can be reached Hard to communicate complex
home media at low cost messages short exposure
Good for supplementing media time
High frequency Difficult to measure
Reaching all segments of the advertisements audience
population Controversial, dislike in many
Geographic flexible communities
Public places Cannot pinpoint specific market
segments
Direct response Narrow audience High cost per exposure
Message can be timed Target lists must be constantly
Effectiveness easy to measure updated
Ads lack credibility among many
consumers
Place-based Transmit message to captive audience in
media : public places such as doctors offices,
airports, in-store TV, bus stop poster, RFID
(radio frequency identification bip when
you passed sth from the aisles, e.g.
peanuts butterthey are watching you)

2) new media: Internet advertising


gives marketers the ability to reach customers in new and exciting ways).
o Advantages:
New ways to finely target customers
Registration and cookies track user preferences and deliver ads based on
previous internet behavior
clicked can measure How are people responding to online message?
Can be interactive the customer participate in the campaign
o Specific forms:
Banners: most popular; although effectiveness remains in question only
1% click
Buttons: small banner-type advertisements that a company can place
anywhere on a page
Search engine and directory listing: pay search engines for more visible
or higher placement
Pop-up ads: difficult to ignore nuisance ad-blocker
E-mail: as persuasive as radio and television one of easiest ways of
communication with consumers spamming = unsolicited email, you dont
know the sender personally not always legal and can result in mawsuits
Permission marketing: gives consumer power to opt in or out

3) Media scheduling: when to say it


o Media schedule: specifies the exact media to use for the campaign as well as
when and how often the message should appear
much of advertising reaches its target audience in the months just before
Christmas
o The media planner considers such factors as the match between the
demographic and psychographic profile of a target audience and the people
reached by a media vehicle, the advertising patterns of competitors and the
capability of the medium to convey the desired information adequately
o Consider factors such as the compatibility of the product with editorial content
o Advertising exposure: degree to which the target market will see an
advertising message in a specific medium
o Impressions: the number of people who will be exposed to a message placed in
one or more media vehicles To calculate the exposure a message will have in a
certain medium, planners consider reach and frequency
Reach: % of the target market that will be exposed to media vehicle at least
one time; important for widely used products when the message needs to
get to as many consumers as possible
Frequency: average number of times that these members of the target
market will be exposed to the message; important for complex products or
targeted to relatively small markets many exposures necessary to make
an impact.
Gross rating point (GRPs): multiplying reach by frequency
use to compare the GRP number to another magazine or to the GRP of
placing an ad on television or on a bus or any other advertising medium
compare the effectiveness
o Cost per thousands (CPT): compare relative cost effectiveness of different
media vehicles that have exposure rates ; reflects the cost to deliver a
message to 1000 people CPM is used for websites

Televisions: advertising rates are determined by how many viewers their programming
attracts
Magazines and newspapers: try to boost circulation in order to charge higher rater to
their advertising clients

4) Media scheduling: how to say it


o Continuous schedule maintains a steady stream of advertising throughout the
year; most appropriate for products that we buy on regular basis e.g. shampoo
and unwanted goods e.g. plumbers
Can sustain market leadership
Advertising wear-out = people ignore the same old ad message
o Pulsing schedule: varies amount of advertising throughout the year based on
when the product is likely to be demanded
Fighting: extreme form of pulsing in which advertising appears short, intense
busts with periods of little to ne activity

o Step6: evaluate the advertising


- A lot of advertising is ineffective
- Love-hate relationship to advertisement
- Should evaluate their effort to increase the effect of their messages
Post testing: conducting research on consumers response to advertising messages
they have seen or heard bizarre advertising are unsuccessful because they dont
communicate what needs to be said about the product itself
To say less is to say more to consumers

Three ways to measure the impact of advertisement


o Unaided recall: test by telephone survey or personnel interview, whether the
person remembers seeing an ad during a specified period of time without giving
the person the name of the brand.
o Aided: uses name of brand and sometimes other clues to promote answers
o Attitudinal measures: testing belief or feelings about a product before and
after being exposed to messages about it

3. Public Relations
Marketers use PR activities to influence the attitudes and perceptions of various groups
not only towards companies and brands but also towards politician, celebrities and not-for-
profit organizations.
Basic rules of goods PR= Doing something good and talk about it.
- PR: communication function that seeks to build good relationships with an
organizations publics; all stakeholders
When PR messages are placed successfully they are more credible than if the same
information appeared
in a paid advertisement
Crucial to an organizations ability to establish hand maintain a favorable image
proactive PR
- Publicity: unpaid communication about an organization thats gets media exposure
create awareness about a product or an event
Internet has expanded the capabilities of the traditional PR testimonials from
customers, new product announcements and respond quickly to important event or crisis

o Objectives of public relations


Companies that practice IMC know that PR strategies are best used in concert with
advertising, sales promotion and personnel selling to send consistent message to
customers and other stakeholders. As part of IMC plan, PR is often used to accomplish the
following objectives:
o Introducing new products to manufacturers
o Introducing new products to customer
o Influencing government legislation
o Enhancing the image of an organization
o Enhancing image of city, region or country
o Crisis management
product tampering or an accident at a companys plant or some other related
problems
prepare a crisis management plan what the organization will do if a crisis
occurs
goal is to manage the flow of information to address concerns so that
customers dont panic and distributors dont abandon the product
o Calling attention to a firms involvement with community

o Planning a public relations campaign


- Public relations campaign: coordinated effort to communicate with one ore more of the
firms audience
- Three-step process:
o Developing objectives and campaign strategy
A statement of objectives
A situation analysis
Specification of target audience, messages to be communicated and specific
programme elements to be used
A timetable and a budget
Discussion of how the programme will be evaluated
o Executing: deciding precisely how the message should be communicated to the
targeted publics (news conferences, sponsorships of charity events, attention-
getting promotions)
o Evaluating
Much more difficult to assess compared with advertising
Possible to tell if PR campaign is getting media exposure but difficult to
assess bottom-line impact

o Public relations activities


- All activities lead to one goal: maintaining that positive image the organization needs
o Press releases: report of some event that organization writes itself and sends
it to the media in hope that it will be published for free most common
Video news release(VRN): story in film format
Common types of press releases
Timely topics topics in the news
Research project stories published by universities highlighting
breakthrough by faculty researchers
Consumer information releases: help consumer to make product
decisions
e.g. helpful tips
o Internal PR: companys newsletter; keep employees informed about company
objectives, also distributed outside the firm to suppliers or other important
publics
o Investor relations: develop & distribute annual and quarterly reports & provide
essential communications
o Lobbying: providing info to gvt officials to persuade them to vote a certain way
(that would benefit the organization)
o Speech writing: most of the time written by PR with few modifications by the
executive (the latter sometime does its own)
o Corporate identity: providing input on corporate identity materials (eg. Logo,
building design communicate a positive image for the firm)
o Media relations: work to develop and maintain positive relationships with the
media
Ex: product it developed that saved someones life
news editors will be less incline to present a story of a crisis in its most
negative way if they have a good relationship with PR people in the organization
o Sponsorships: provide financial support to help an event in return for
publicized recognition of the companys contribution
effective because consumers often connect their enjoyment of the event with
the sponsor
o Special events eg. visit of a group of foreign investors, Bank Holiday picnic for
company employees make sure that people go home happy
o Buzz-building: word of mouth to build a positive buzz about an org.
o Advice and consultancy: PR professionals have much more to offer than just
planning parties and writing news releases
role of consultants to top management needs advice of its PR staff: what is
the best way to handle these situation? How should the announcement be
made? Who should be told first?