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 Advertising

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

Product Advertising

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Major Types of Advertising

Institutional Advertising
Enhance corporations identify Advocacy advertising Pioneering

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

Competitive

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

Comparative

Compares two or more competing brands product attributes. Used if growth is sluggish, or if competition is strong.
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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 Advertising Objectives
Define Target Audience

Define the Time Frame for Change

Define Desired Percentage Change

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Creative Decisions
Identify Product Benefits

Components of Creative Decisions

Develop and Evaluate Advertising Appeals

Execute the Message Evaluate the 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 Health Love or romance Fear Admiration Convenience Fun and pleasure Product saves, makes, or protects money

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

Key to advertising vacations, beer, parks

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

Unique Selling Proposition

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

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Executing the Message

Scientific Musical Slice-of-Life Lifestyle

Demonstration

Common Executional Styles

Real/ Animated Product Symbols

Spokesperson/ Testimonial

Mood or Image

Fantasy Humorous
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Learning Objective
Describe media evaluation and selection techniques.

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Media Types
Newspapers
Magazines

Radio
Television

Major Types of Advertising Media

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Outdoor

Internet
Alternative Media
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Advertising Spending for 1999

Magazine Yellow Pages Internet Radio Television Outdoor Newspaper

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Newspapers
Advantages Year-round readership

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Disadvantages Limited demographic selectivity
Little color

Geographic selectivity
Immediacy High individual market coverage Short lead time
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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
Good reproduction Demographic selectivity Regional/local selectivity Long advertising life High pass-along rate
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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
Selectivity and audience segmentation Immediate and portable Geographic flexibility Entertainment carryover Short-term ad commitments
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Disadvantages
No visual treatment

Short advertising life

High frequency to generate retention

Commercial clutter
Background distractions
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Television
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
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 High exposure frequency Moderate cost Flexibility

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Disadvantages
Short message Lack of demographic selectivity High noise level

Geographic selectivity
Broad, diverse market
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Internet and World Wide Web

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

Disadvantages
Difficult to measure ad effectiveness and ROI Ad exposure relies on click through

Moderate cost

Not all consumers have access to internet

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Alternative Media
Fax Machines Video Shopping Carts

Examples of Alternative Media

Computer Screen Savers Interactive Kiosks

Ads in Movies and Videos

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Media Selection Considerations

Cost per Contact

Factors Influencing Media Mix Decisions

Reach

Frequency

Audience Selectivity
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Media Selection Considerations

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 Audience Selectivity
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The number of times an individual is exposed to a message during a time period. The ability of an advertising medium to reach a precisely defined market.
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Media Scheduling
Continuous Media Schedule

Flighted Media Schedule

Pulsing Media Schedule

Types of Media Schedules

Seasonal Media Schedule

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Media Scheduling
Continuous Media Schedule Flighted Media Schedule
Advertising is run steadily throughout the period. Advertising is run heavily every other month or every two weeks.

Pulsing Media Schedule

Seasonal Media Schedule
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Advertising combines continuous scheduling with flighting.

Advertising is run only when the 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 Public Relations

Evaluates public attitudes Identifies issues of public concern

Executes programs to gain public acceptance

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Functions of Public Relations

Press Relations

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

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