advertising & pr

8/7/2019 Advertising & PR

1/47


2/47

20 - 2

The Nature of Advertising

advertising is distinguished from otherforms of promotion as follows

it has a verbal and/or visual message

the sponsor of the message isidentified

delivery is through recognizable media

there is payment by the advertiser tothe media for carrying the message

advertisers are increasingly being ableto reach specific audiences with tailor-

made messages


3/47

20 - 3

Advertising to

Target Audiences

advertising can be classified by thetarget audience to which it isdirected

consumeradvertising generallyappears in mass media and isdirected to end consumers: may beproductorinstitutionalin nature

business-to-business advertising isoften called trade advertising and isdirected to a business market


4/47

20 - 4

What is Being Advertised?

product advertisingproduct advertising is designed topromote the sale of a specific productor service:

may be directdirect--actionaction, quick-response may be indirectindirect--actionaction over a longer

time

institutional advertisinginstitutional advertising promotes the

firm or tries to create a positive image: may promote customer service

or send a public service message


5/47

5Chap. 15 Marketing 7e Lamb HairMcDaniel2004 South-Western/Thomson Learning

MajorTypes of Advertising

Enhancecorporations identity

Pioneering

Competitive

Comparative

ProductProductAdvertisingAdvertising

InstitutionalInstitutionalAdvertisingAdvertising

Advocacyadvertising

2

HR

Block


6/47


On Line

http://www.pizzahut.com

http://www.papajohns.com

Product Advertising

PioneeringPioneering Stimulates primary demand for

new product or category.

Used in the PLC introductory stage.

CompetitiveCompetitive Influence demand for brand in the

growth phase of the PLC.

Often uses emotional appeal.

ComparativeComparative Compares two or more competing

brands product attributes.

Used if growth is sluggish, or if

competition is strong.

2


7/47

20 - 7

What are the Objectives?

primaryprimary--demanddemand advertising is

intended to stimulate use of a

category of products selectiveselective--demanddemand advertising is

intended to encourage purchase of a

particular brand or the products and

services of a specific firm


8/47

20 - 8

Comparative Advertising

SelectiveSelective--demanddemand advertising

Involves comparing a product to its

competing brand May be:

Direct, naming competitors outright

Less direct, alluding to competitors (e.g.,leading brand, Brand X) but notnaming them


9/47

20 - 9

Co-operative Advertising

coco--operativeoperative advertising involves

the sharing of the cost of

advertising by two or moresponsors:

a manufacturer and retailers (verticalvertical), or

a group of retailers (horizontal(horizontal)


10/47


Advertising Campaign

A series of related

advertisements focusing

on a common theme,

slogan, and set of

advertising appeals.

3


11/47


Steps in Creating an

Advertising Campaign

Determine theadvertising objectives.

Make creative decisions. Make media decisions.

Evaluate the campaign.

3


12/47


Setting Objectives:

The DAGMAR Approach

DefineTarget Audience

Define DesiredPercentage

Change

Define the TimeFrame for Change

Goal ofGoal of

AdvertisingAdvertising

ObjectivesObjectives

3


13/47


Creative Decisions

Components

ofCreativeDecisions

Develop and EvaluateAdvertising Appeals

Executethe Message

Evaluate theCampaigns Effectiveness

IdentifyProduct Benefits

3


14/47


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 determineif it is a benefit

3


15/47


Advertising Appeal

Reason for a personto buy a product.

3


16/47


Common Advertising Appeals

Profit

Health

Love or romance

Fear

Admiration

Convenience

Fun and pleasure

Vanity and egotism

EnvironmentalConsciousness

Product saves, makes, or protects money

Appeals to body-conscious orhealth 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

3


17/47


Unique Selling Proposition

Desirable, exclusive, and

believable advertising

appeal selected as the

theme for a campaign.

3

Jingles


18/47


Executing the Message

Mood orImage

Musical

Demon-stration

Scientific

Real/AnimatedProductSymbols

Fantasy

Lifestyle

Slice-of-Life

Humorous

CommonCommon

ExecutionalExecutional

StylesStyles

Spokes-person/

Testimonial

Goodyear

Dockers

3


19/47

20 - 19

Choosing Media

Objectives of the ad.

Audience coverage.

Requirements of the message.

Time and location of the buyingdecision.

Media cost (CPM)

Media characteristics.


20/47


Media Selection Considerations

Cost perCost perContactContact

ReachReach

FrequencyFrequency

AudienceAudienceSelectivitySelectivity

The cost of reaching onemember of the target market.

Th

e number of target consumersexposed to a commercial at leastonce during a time period.

The number of times an individualis exposed to a message during a

time period.The ability of an advertising

medium to reach a preciselydefined market.

4


21/47

20 - 21

Characteristics of

Key Media

Newspapers: flexible, local

Television: versatile, powerful but

costly, fragmented

Direct Mail: personal, selective,

effective, but tough

Radio: strong locally, cheap but

single medium

Magazines: top quality, little

flexibility


22/47

20 - 22

out-of-home advertising

specialty advertising

emerging media:World Wide Web

infomercials

place-based media videos and CD-ROMs

yellow pages

More

Key Media


23/47

23Chap.

15

Marketing

7e

Lamb

Hair

McDaniel

2004 South-Western/Thomson Learning

Examples of Alternative Media

Ads inMovies and Videos

Interactive Kiosks

ComputerScreen Savers

Video Shopping Carts

Fax Machines

On Linehttp://www.looksmart.com

http://www.yahoo.com

4


24/47

20 - 24

Evaluating the MajorMedia

newspapers are flexible and timely,have a local orientation and widecoverage, low cost

television is versatile, but audience isnow fragmented, reaches massaudiences

direct mailis efficient, targets certainaudience


25/47

20 - 25

More Media

Evaluations

radio stations target specific

segments, low cost, local

orientation, short message life

magazines deliver quality

advertising to specific segments,

message stays around


26/47

26Chap.

15

Marketing

7e

Lamb

Hair

McDaniel2004 South-Western/Thomson Learning

Newspapers

AdvantagesAdvantages

Year-round readership

Geographic selectivity

Immediacy

High individual market

coverage

Short lead time

DisadvantagesDisadvantages

Limited demographic

selectivity

Little color

May be expensive

Low pass-along rate

Clutter

Mass market medium

4


27/47

27Chap.

15

Marketing

7e

Lamb

Hair


Magazines

Good reproduction

Demographicselectivity

Regional/localselectivity

Long advertising life

High pass-along rate


Higher cost per contact

Long-term advertisercommitments

Slow audience build-up

Limited demonstration

capabilities

Lack of urgency

Long lead time


4


28/47

28Chap.

15

Marketing

7e

Lamb

Hair


On Line

http://www.radioindustry.about.com

Radio


Selectivity andaudience 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

Backgrounddistractions

4


29/47

29Chap.

15

Marketing

7e

Lamb

Hair


On Line

http://www.fox.com

http://www.abc.comTelevision


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

h

igh

campaign cost

Little demographicselectivity with network

Long-term advertiser

commitments Long lead times

Clutter

4


30/47

30Chap.

15

Marketing

7e

Lamb

Hair


Internet

Fast growing

Ability to reach narrowtarget audience

Short lead time

Moderate cost


Difficult to measure adeffectiveness and ROI

Ad exposure relies onclick through

Not all consumers

have access to internet


4

On Line

http://www.bannerite.com

http://www.flash-banner-design.com


31/47

31Chap.

1

5M

arketing7

eL

ambH

airMcD

aniel2004 South-Western/Thomson Learning

Media Scheduling

ContinuousContinuous

Media ScheduleMedia Schedule

FlightedFlightedMedia ScheduleMedia Schedule

PulsingPulsing


SeasonalSeasonal


Advertising is run steadilythroughout the period.

Advertising is run heavily everyother month or every two weeks.

Advertising combines continuousscheduling with flighting.

Advertising is run only when theproduct is likely to be used.

4


32/47

20 - 32

The Changing Nature

ofMedia

media are becoming less mass, more targeted

cable TV offers many specialty channels

direct-to-home TV adds to fragmentation

lots of new out-of-home media Yellow Pages and other directories on CD-

ROM

place-based media where they shop and live

advertising on the Web works as Yellow Pagesdoes -- the customer seeks out the advertiser


33/47

20 - 33

Evaluating Advertising

It is difficult to measure the sales

effectiveness of advertising because:

Ads have different objectives.

Ads can have an effect over time period.

Measurement problems.

Effectiveness can be tested:

Before an ad is presented. While it is being presented.

After it has completed its run.


34/47

20 - 34

Organizing for Advertising

Develop an internal advertisingdepartment.

Many large retailers do this.

Use an outside advertising agency. Specialized, skilled professionals.

Experienced, many services offered

Do both

.


35/47

20 - 35

Sales Promotion

Demand-stimulating devices designedto supplement advertising andfacilitate personal selling.

Sales promotions include such thingsas coupons, in-store displays,premiums, trade shows, in-storedemonstrations, and contests.

The target for these activities may bemiddlemen, end users, or theproducers own salesforce.


36/47

20 - 36

Types of Sales Promotion

Trade promotions, directed tomembers of the distribution

channel. Consumer promotions, aimed at

consumers.

Consumers got 3.3 billion couponsfor packaged goods alone in 1996.


37/47

20 - 37

Advantages of

Sales Promotion

It can produce short-term results.

Competitors are using sales

promotions. Sales promotions are attractive

to price-conscious consumers.

Can enhance/facilitate retail

salesmanship which is often oflow quality.


38/47

20 - 38

Key Reasons for

Sales Promotion Stimulating end-user demand.

Sampling program for new/improved product

Improving the marketing performance

of middlemen and salespeople. Sell more, win a holiday trip.

Supplementing advertising andfacilitating personal selling.

Displays, promotional giveaways


39/47

20 - 39

Managing Sales Promotion Select from wide range of techniques,

depending on your objectives

Select promotional devices based on:

Nature of target audience

Your promotional objectives: Push vs. Pull.

Cost of device-- sampling can get costly.

Current economic conditions-- coupons, rebateswork best in recessionary period.

Evaluating Sales Promotion:

Much easier than with advertising.

Usually clear start, finish, goal.


40/47

20 - 40

Public Relations

A tool designed to influence favourablyattitudes towards an organization, itsproducts and policies.

Public relationsPublic relations is often overlooked bymanagement because of:

Organization structure; not in marketing.

Inadequate definitions; loosely defined.

Unrecognized benefits; many non-believers.


41/47

20 - 41

Publicity

PublicityPublicity is a form of public

relations that includes any

communication about anorganization or its products

that is presented by the media

but is not paid for by th

eorganization.


42/47

20 - 42

Strengths of Publicity

Can announce new products, recognizeemployees, report good results,breakthroughs.

Key Benefits:

Lower cost than advertising or personalselling.

Increased readership; advertising ignored

often. More information.

Timeliness.


43/47

20 - 43

Weaknesses of Publicity

Some loss of control over

message.

Limited exposure; only happens

once.

Not free; preparation costs.


44/47

44Chap. 15 Marketing 7e Lamb HairMcDaniel


Public Relations

Evaluates publicattitudes

Identifies issues of

public concern

Executes programsto gain publicacceptance

The Role ofThe Role of

PublicRelationsPublicRelations

5


45/47


Functions of Public Relations

Press RelationsPress Relations

Product PublicityProduct Publicity

Corporate CommunicationCorporate Communication

Public AffairsPublic Affairs

LobbyingLobbying

Employee and Investor RelationsEmployee and Investor Relations

Crisis ManagementCrisis Management

5


46/47



On Line

http://www.bmwfilms.com

Public Relations Tools

Product Placement

Consumer Education

Event Sponsorship

Issue Sponsorship

Internet Web Sites

New Product Publicity

ETrade 25


47/47



Crisis Management

A coordinated effort to

handle the effects ofunfavorable publicity or of

an unfavorable event.

5

advertising & pr

Documents