advertising and public relations

Chapter 13 Version 3e 1©2003 South-Western

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Advertising and Public RelationsAdvertising and Public Relations

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Prepared byPrepared byDeborah BakerDeborah Baker

Texas Christian UniversityTexas Christian University


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Learning ObjectivesLearning Objectives

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1.1. Discuss the effect of advertising on market Discuss the effect of advertising on market share and consumers.share and consumers.

2. Identify the major types of advertising.2. Identify the major types of advertising.

3. Discuss the creative decisions in 3. Discuss the creative decisions in developing an advertising campaign.developing an advertising campaign.


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Learning Objectives (continued)Learning Objectives (continued)

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4. Describe media evaluation and selection 4. Describe media evaluation and selection techniques.techniques.

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


Learning Objective Learning Objective 11

Discuss the effect of advertising Discuss the effect of advertising on market share and consumers.on market share and consumers.


AdvertisingAdvertising

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 ShareAdvertising 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 ConsumerAdvertising and the Consumer

Average U.S. citizen is exposed to hundreds of ads each day.

Advertising may change a consumer’s attitude toward a product.

Advertising can affect consumer ranking of brand attributes.

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Learning Objective Learning Objective 22

Identify the major types of advertising.Identify the major types of advertising.


Major Types of AdvertisingMajor Types of Advertising

InstitutionalAdvertisingInstitutionalAdvertising

Designed to enhance a company’s image rather than promote a

particular product.

Designed to enhance a company’s image rather than promote a

particular product.

ProductAdvertising

ProductAdvertising

Designed to tout the benefits of a specific good or service.

Designed to tout the benefits of a specific good or service.

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Major Types of AdvertisingMajor Types of Advertising22

Enhance corporation’s identify

Enhance corporation’s identify

PioneeringPioneering

CompetitiveCompetitive

ComparativeComparative

ProductProductAdvertisingAdvertising

ProductProductAdvertisingAdvertising

InstitutionalInstitutionalAdvertisingAdvertisingInstitutionalInstitutionalAdvertisingAdvertising

Advocacy advertisingAdvocacy advertising


Product AdvertisingProduct Advertising

PioneeringPioneeringPioneeringPioneering• Stimulates primary demand for

new product or category

CompetitiveCompetitiveCompetitiveCompetitive• Influence demand for brand in the

growth phase of the PLC. • Often uses emotional appeal.

ComparativeComparativeComparativeComparative• Compares two or more competing

brands’ product attributes. • Used if growth is sluggish, or if

competition is strong.

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Learning Objective Learning Objective

Discuss the creative decisions Discuss the creative decisions in developing an advertising campaignin developing an advertising campaign

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Advertising CampaignAdvertising 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 Steps in Creating an Advertising CampaignAdvertising Campaign

Determine the advertising objectives.

Make creative decisions. Make media decisions.

Evaluate the campaign.

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Setting Objectives:Setting Objectives:The DAGMAR ApproachThe DAGMAR Approach

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Define Target Audience

Define Target Audience

Define DesiredPercentage

Change

Define DesiredPercentage

Change

Define the Time Frame for Change Define the Time

Frame for Change

Goal ofGoal ofAdvertising Advertising ObjectivesObjectives

Goal ofGoal ofAdvertising Advertising ObjectivesObjectives


Creative DecisionsCreative Decisions33

Componentsof

Creative Decisions

Componentsof

Creative Decisions

Develop and EvaluateAdvertising Appeals

Develop and EvaluateAdvertising Appeals

Execute the Message

Execute the Message

Evaluate theCampaign’s Effectiveness

Evaluate theCampaign’s Effectiveness

Identify Product Benefits

Identify Product Benefits


Identify Product BenefitsIdentify Product Benefits33

“Sell the Sizzle, not the Steak”

Sell product’s benefits, not its attributes

A benefit should answer “What’s in it for me?”

Ask “So?” to determine if it is a benefit


Advertising AppealAdvertising Appeal33

Reason for a person

to buy a product.


Common Advertising AppealsCommon Advertising Appeals33

Profit Profit

HealthHealth

Love or romanceLove or romance

FearFear

AdmirationAdmiration

ConvenienceConvenience

Fun and pleasureFun and pleasure

Vanity and egotism Vanity and egotism

Environmental ConsciousnessEnvironmental Consciousness

Product saves, makes, or protects money Product saves, makes, or protects money

Appeals to body-conscious or health seekersAppeals to body-conscious or health seekers

Used in selling cosmetics and perfumesUsed in selling cosmetics and perfumes

Social embarrassment, old age, losing health Social embarrassment, old age, losing health

Reason for use of celebrity spokespeopleReason for use of celebrity spokespeople

Used for fast foods and microwave foodsUsed for fast foods and microwave foods

Key to advertising vacations, beer, parksKey to advertising vacations, beer, parks

Used for expensive or conspicuous items Used for expensive or conspicuous items

Centers around environmental protectionCenters around environmental protection


Unique Selling PropositionUnique Selling Proposition33

Desirable, exclusive, and

believable advertising

appeal selected as the

theme for a campaign.


Executing the MessageExecuting the Message

Mood or Image

Mood or Image

MusicalMusical

Demon-stration

Demon-stration

ScientificScientific

Real/AnimatedProductSymbols

Real/AnimatedProductSymbols

FantasyFantasy

LifestyleLifestyleSlice-of-LifeSlice-of-Life

HumorousHumorous

CommonCommonExecutionalExecutional

StylesStyles

CommonCommonExecutionalExecutional

StylesStyles

Spokes-person/

Testimonial

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Describe media evaluation Describe media evaluation and selection techniques.and selection techniques.

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Media TypesMedia TypesNewspapersNewspapers

MagazinesMagazines

RadioRadio

TelevisionTelevision

OutdoorOutdoor

InternetInternet

Alternative MediaAlternative Media

Major Types Major Types ofof

AdvertisingAdvertisingMediaMedia

Major Types Major Types ofof

AdvertisingAdvertisingMediaMedia

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Advertising Spending for 1999 Advertising Spending for 1999

MagazineYellow PagesInternetRadioTelevisionOutdoorNewspaper

MagazineYellow PagesInternetRadioTelevisionOutdoorNewspaper

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NewspapersNewspapers44

AdvantagesAdvantagesAdvantagesAdvantages

Year-round readership

Geographic selectivity

Immediacy

High individual market coverage

Short lead time

DisadvantagesDisadvantagesDisadvantagesDisadvantages

Limited demographic selectivity

Little color

May be expensive

Low pass-along rate

Clutter

Mass market medium


Cooperative AdvertisingCooperative Advertising

An arrangement in which

the manufacturer and the

retailer split the costs

of advertising the

manufacturer’s brand.

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MagazinesMagazines44

Good reproduction

Demographic selectivity

Regional/local selectivity

Long advertising life

High pass-along rate


Higher cost per contact

Long-term advertiser commitments

Slow audience build-up

Limited demonstration capabilities

Lack of urgency

Long lead time



RadioRadio44


Selectivity and audience segmentation

Immediate and portable

Geographic flexibility

Entertainment carryover

Short-term ad commitments


No visual treatment

Short advertising life

High frequency to generate retention

Commercial clutter

Background distractions


TelevisionTelevision44


Wide diverse audience Low cost per thousand Creative and

demonstrative Immediacy of messages Entertainment carryover Demographic selectivity

with cable


Short life of message Expensive with high

campaign cost Little demographic

selectivity with network Long-term advertiser

commitments Long lead times Clutter


Outdoor MediaOutdoor Media44


High exposure frequency

Moderate cost

Flexibility

Geographic selectivity

Broad, diverse market


Short message

Lack of demographic selectivity

High “noise” level


Internet and World Wide WebInternet and World Wide Web44

Fast growing

Ability to reach narrow target audience

Short lead time

Moderate cost


Difficult to measure ad effectiveness and ROI

Ad exposure relies on “click through”

Not all consumers have access to internet



Alternative MediaAlternative Media

Ads in Movies and Videos

Ads in Movies and Videos

Interactive KiosksInteractive Kiosks

Computer Screen Savers

Computer Screen Savers

Video Shopping CartsVideo Shopping Carts

Fax MachinesFax Machines

Examples ofExamples ofAlternative MediaAlternative Media

Examples ofExamples ofAlternative MediaAlternative Media

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Media Selection ConsiderationsMedia Selection Considerations

Cost per ContactCost per Contact

FactorsInfluencingMedia Mix Decisions

FactorsInfluencingMedia Mix Decisions

ReachReach

FrequencyFrequency

Audience SelectivityAudience Selectivity

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Media Selection ConsiderationsMedia Selection Considerations

Cost perCost perContactContact

Cost perCost perContactContact

ReachReachReachReach

FrequencyFrequencyFrequencyFrequency

AudienceAudienceSelectivitySelectivityAudienceAudienceSelectivitySelectivity

The cost of reaching one member of the target market.

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.

The number of target consumers exposed to a commercial at least

once during a time period.

The number of times an individual is exposed to a message during a

time period.

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.

The ability of an advertising medium to reach a precisely

defined market.

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Media SchedulingMedia Scheduling

Types of Types of Media SchedulesMedia Schedules

Types of Types of Media SchedulesMedia Schedules

Continuous Media ScheduleContinuous Media Schedule

Flighted Media ScheduleFlighted Media Schedule

Pulsing Media SchedulePulsing Media Schedule

Seasonal Media ScheduleSeasonal Media Schedule

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Media SchedulingMedia Scheduling

ContinuousContinuousMedia ScheduleMedia Schedule

ContinuousContinuousMedia ScheduleMedia Schedule

Flighted Flighted Media ScheduleMedia Schedule

Flighted Flighted Media ScheduleMedia Schedule

PulsingPulsingMedia ScheduleMedia Schedule

PulsingPulsingMedia ScheduleMedia Schedule

SeasonalSeasonalMedia ScheduleMedia Schedule

SeasonalSeasonalMedia ScheduleMedia Schedule

Advertising is run steadily throughout the period.

Advertising is run steadily throughout the period.

Advertising is run heavily every other month or every two weeks.Advertising is run heavily every other month or every two weeks.

Advertising combines continuous scheduling with flighting.

Advertising combines continuous scheduling with flighting.

Advertising is run only when the product is likely to be used.

Advertising is run only when the product is likely to be used.

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

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Public RelationsPublic Relations55

Evaluates public attitudes

Evaluates public attitudes

Identifies issues of public concernIdentifies issues of public concern

Executes programs to gain

public acceptance

Executes programs to gain

public acceptance

The Role of The Role of Public RelationsPublic Relations

The Role of The Role of Public RelationsPublic Relations


Functions of Public RelationsFunctions of Public Relations

Press Relations Press Relations Press Relations Press Relations

Product PublicityProduct PublicityProduct PublicityProduct Publicity

Corporate CommunicationCorporate CommunicationCorporate CommunicationCorporate Communication

Public AffairsPublic AffairsPublic AffairsPublic Affairs

LobbyingLobbyingLobbyingLobbying

Employee and Investor RelationsEmployee and Investor RelationsEmployee and Investor RelationsEmployee and Investor Relations

Crisis ManagementCrisis ManagementCrisis ManagementCrisis Management

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Public Relations ToolsPublic Relations Tools

ToolsToolsUsed ByUsed By

PRPRProfessionalsProfessionals

ToolsToolsUsed ByUsed By

PRPRProfessionalsProfessionals

Product PlacementProduct Placement

Consumer EducationConsumer Education

Event SponsorshipEvent Sponsorship

Issue SponsorshipIssue Sponsorship

Internet Web SitesInternet Web Sites

New Product PublicityNew Product Publicity

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Managing Unfavorable PublicityManaging Unfavorable Publicity55

A coordinated effort to

handle the effects of

unfavorable publicity or of

an unfavorable event.

CrisisCrisis

ManagementManagement

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