17Advertising and Public

RelationsDr. Close

"Advertising is salesmanship mass produced. No one would bother to

use advertising if he could talk to all his prospects face-to-face. But he

can't." Morris Hite

Advertising Evolution& Effects

Ad expenses have risen over the past decade (mature mkt). Ex: Arm & Hammer

– U.S. spends more on ads than any other country – GM, P&G, and Time Warner each spend approx.

$10 Million a DAY on U.S advertising!!!!!

Types of Ads

• Institutional Advertising• Advocacy ads (a form of institutional ads):

promote goodwill, organization/industry (AT&T Supports The Cyclists of the Tour de GA race)

Sunkist &

Subway/Jared

Support Healthy Lifestlyes…

Bud & Advocacy Advertising

Types of Ads

• Product Ads – promote a specific item (bamboo steamer)– Pioneering: inform/build primary demand for

item (intro stage; net phone, and what else??)

Types of Ads

• Type of competitive ad: comparative ads– Specific brand comparison of a specific attribute (Pain

relievers and Caffeine)– The Cola Wars! The Beer Wars! (Less carbs than Bud!)– Research must support (Listerine and plaque)

vs. Any differences?

1.6

Competitive Ads

(Type of Product Ad)

-Later in PLC-Selective demand

-Build brand recall

-Create affect

Mockvertising

Priceless Brand Recall

Ad Appeals

• Feel good adsFeel good ads

• Humor adsHumor ads

• Sexual-appeal adsSexual-appeal ads•Love or RomanceLove or Romance•AdmirationAdmiration•CourageCourage•FunFun•PleasurePleasure•Environmentally Environmentally ConsciousnessConsciousness

AffectAffect

Got Milk?...Got Milk?... What Appeals Are Used?

What Appeals Should Sell Milk?

Not-So Warm(yet effective) Appeals

• Fear-appeal adsFear-appeal adsScare the consumer Scare the consumer into actioninto action

• Anxiety adsAnxiety adsChange behavior by Change behavior by inducing anxietyinducing anxiety

Ad Objectives and Execution

• Reason-why adsReason-why ads

• Hard-sell adsHard-sell ads

• Comparison adsComparison ads

• Information-only adsInformation-only ads

• Testimonial adsTestimonial ads

• Demonstration adsDemonstration ads

• AdvertorialsAdvertorials

• InfomercialsInfomercials

Persuade Persuade

Ad Objectives and Execution

• Transformational adsTransformational adsTransform consumption Transform consumption experiencesexperiences

• Slice-of-life adsSlice-of-life ads

• Product-brand placement/ Product-brand placement/ Short Internet Films Short Internet Films

Situate the brand Situate the brand sociallysocially

• Image adsImage adsDefine the brand imageDefine the brand image

• Repetition adsRepetition ads

• Slogan and jingle adsSlogan and jingle adsPromote brand recallPromote brand recall

• Unique selling Unique selling proposition (USP) adsproposition (USP) ads

Link a key attribute to Link a key attribute to the brand namethe brand name

Ad Objectives and Execution

"Great designers seldom make great advertising men, because they get overcome

by the beauty of the picture - and forget that merchandise

must be sold." – James Randolph Adams

Ad Issues• Ad allowances: producer discount for

retailer ads (ex: Wal-Mart circular)

• Cooperative ads: firms at different levels share costs (Franchises and what else??)

• Horizontal cooperation:

agreements at same

level

Choosing A Medium (1)• 4 steps (interactive decisions):

– Set Objectives: most specific; quantify time– Match media with market

• Must find a way to reach market

(Letterman or Oprah?; Maxim or Vogue?;

MySpace or Facebook?)• Problem with network/mainstream advertising: you

pay for the whole audience

Choosing A Medium (2)• 4 steps (cont…)

– Budgeting (most buys may use budget; Yellow Pages; local paper)

– Selecting media: modern media allows targeting– Do you know the demographic/psychographic Do you know the demographic/psychographic

profile of readers of each of these vehicles?:profile of readers of each of these vehicles?:

Where Would you Run this Honda Where Would you Run this Honda Ad? Why?Ad? Why?

Communication in Ads

• Effectiveness – very difficult to measure– Testing improves performance (Dr. Pepper)– Recall of ads may be poor (Infiniti)

Ethics in Ads (1)

• FTC Federal Trade Commission– Regulates deceptive ads

• Wrong impression (Office Depot “low cost” PC: $269 but mandatory 3 year ‘Net made it over $1000)

• May be true but still mislead: Kraft singles

Ethics in Ads (2)

• FTC Federal Trade Commission (cont…)– Regulates unfair ads = may not be deceptive

BUT>>>• “Cause injury” (kids, elderly, omit needed info…)• Unpopular with business (vague) – narrower; injury

not avoidable• Walgreen’s: Advil as anti-inflammatory

Ethics in Ads (3)

• FTC Federal Trade Commission (cont…)– Require support (Listerine)– Can order corrective ads (Listerine & Doan’s

pills)– Some feel FTC is “big brother” (hair dryers)

Summary

• 3 promotions goals

• Promotion methods

• Ethics and Ads/Promotions

• Any questions??