Chapter 15Advertising and Public Relations

Advertising

A persuasive message carried by a nonpersonal medium and paid for by an identified sponsor.

Two types:Product advertisingInstitutional advertising

Institutional Advertising

Advertising designed to Advertising designed to promote an promote an organizational image or organizational image or to build goodwill. to build goodwill.

Example:Example:

GE’s “We bring good GE’s “We bring good things to light.”things to light.”

Advocacy AdvertisingAdvertising in which

an organization expresses its views on controversial issues or responds to media attacks

Product AdvertisingAdvertising promoting a specific

product.Two types:Direct-action advertisement:

stimulates immediate purchaseIndirect-action advertisement:

stimulates sales over the long run.

Product AdvertisingPioneering

Competitive

Comparative

Creative Decisions in Advertising

AdvertisingCampaign

AdvertisingCampaign

A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals.

Creative Decisions in Advertising

Determine the advertising objectives

Make creative decisions Make media decisions

Evaluate the campaign

Some Specific Advertising Objectives Might Include:Sales lead

generationIncreasing brand

awarenessIncreasing repeat

purchasesIncreasing

consumption by current users

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 BenefitsWhat is the

attribute?What is the benefit?

The Advertising AppealIdentifies the reason

for a person to buy a productUnique Selling

Proposition

Common Advertising Appeals:ProfitHealthLove or romanceFearFunVanityEnvironmentalism

Executing the Message

Mood or Image

Mood or Image

MusicalMusical

Demon-strationDemon-stration

ScientificScientific

Real/AnimatedProductSymbols

Real/AnimatedProductSymbols

FantasyFantasy

LifestyleLifestyle

Slice-of-Life

Slice-of-Life

HumorousHumorous

Spokes-person/

Testimonial

Spokes-person/

Testimonial

When developing media strategy, answer these two questions:

Which media will effectively and efficiently get the message to the desired audience?

What scheduling of these media will neither bore nor allow people to forget?

Media Advantages/Disadvantages

Newspapers:+ Convenient &

quick- Poor quality of

printMagazines:+ Long-life ad- Clutter

Media Advantages/DisadvantagesTelevision:+ Audio-visual+ Very high reach- Expensive &

perishableRadio:+ Flexible+ Inexpensive- Clutter & perishable

Media Advantages/Disadvantages

Internet+ Inexpensive+ High reach: worldwide- Cannot reach non-

computer usersOutdoor ads+ High reach & frequency+ Inexpensive- Brevity of message

Creating a Media PlanCost per contactReachFrequencyGross Rating

PointsAudience

Selectivity

Media SchedulingContinuous

Media Schedule

Flighted Media Schedule

PulsingMedia Schedule

SeasonalMedia Schedule

Advertising is run steadily throughout the period.

Advertising is run heavily every other month or every

two weeks.

Advertising combines continuous scheduling with

flighting.

Advertising is run only when the product is likely to be

used.

Evaluating AdvertisingPretesting:

Focus groupsQuantitative studies

Posttesting:Recall testsChanges in attitudesGenerating inquiriesSales performance

Ethical Issues in AdvertisingDeceptive Advertising

Misleading advertisingBait-and-switchPuffery

Public StandardsQuality of Children’s Lives

Public RelationsPublic Relations

Public Relations

The element in the promotional mix that:

evaluates public attitudes identifies issues of public

concern executes programs to gain

public acceptance

Publicity versus Public Relations

Press relations Press relations

Product publicityProduct publicity

Corporate communicationCorporate communication

Public affairsPublic affairs

LobbyingLobbying

Employee and investor relationsEmployee and investor relations

Crisis managementCrisis management

Functions of Public Relations

Product placementProduct placement

Consumer educationConsumer education

Event sponsorshipEvent sponsorship

Issue sponsorshipIssue sponsorship

Internet Web sitesInternet Web sites

New product publicityNew product publicity

Public Relations Tools

CrisisManagement

CrisisManagement

Managing Unfavorable Publicity

A coordinated effort to handle the effects of unfavorable publicity or of an unfavorable event.