Chapter 15: Advertising and Public Relations: Objectives

Chapter 15: Advertising and Public Relations
Objectives:
• Discuss the effect of advertising on market share and

consumers.
• Identify the major types of advertising.
• Discuss the creative decisions in developing an advertising

campaign.
• Describe media evaluation and selection techniques.
• Discuss the role of public relations in the promotional mix.
Chap. 15 Marketing 7e Lamb Hair McDaniel 1

©2004 South-Western/Thomson Learning
1 Advertising
● U.S. advertising spending exceeds

$240 billion per year
● Industry employs only 284,000
● Ad budgets of some firms exceed

over $2 billion per year—over
$6 million per day!

Top Ten Leaders by U.S.
1
Advertising Spending

1 Advertising and Market Share
●● New
New brands
brands spend
spend proportionately
proportionately more
more
for
for advertising
advertising than
than old
old ones.
ones.
●● A
A certain
certain level
level of
of exposure
exposure is
is needed
needed to
to
affect
affect purchase
purchase habits.
habits.
●● Beyond
Beyond aa certain
certain level,
level, diminishing
diminishing
returns
returns set
set in.
in.

1 Advertising and the Consumer
●● Average
Average U.S.
U.S. citizen
citizen is
is exposed
exposed to
to
hundreds
hundreds of
of ads
ads each
each day.
day.
●● Advertising
Advertising may
may change
change aa consumer’s
consumer’s
attitude
attitude toward
toward aa product.
product.
●● Advertising
Advertising can
can affect
affect consumer
consumer
ranking
ranking of
of brand
brand attributes.
attributes.

2 Major Types of Advertising Monster
Designed
Designed to
to enhance
enhance aa company’s
company’s
Institutional
Institutional image
image rather
rather than
than promote
promote aa
Advertising
Advertising particular
particular product.
product.
Product
Product Designed
Designed to
to tout
tout the
the benefits
benefits of
of aa
Advertising
Advertising specific
specific good
good or
or service.
service.

HR
2 Major Types of Advertising Block
Enhance
Enhance
corporation’s
corporation’sidentity
identity
Institutional
Institutional
Advertising
Advertising
Advocacy
Advocacy
advertising
advertising
Pioneering
Pioneering
Product
Product
Advertising
Advertising Competitive
Competitive
Comparative
Comparative
2 Product Advertising On
OnLine
Line
http://www.pizzahut.com
http://www.pizzahut.com
http://www.papajohns.com
http://www.papajohns.com
• Stimulates primary demand for

Pioneering
Pioneering new product or category.
• Used in the PLC introductory stage.
• Influence demand for brand in the

Competitive
Competitive growth phase of the PLC.
• Often uses emotional appeal.
• Compares two or more competing

Comparative
Comparative brands’ product attributes.
• Used if growth is sluggish, or if
Chap. 15 Marketing 7e Lamb Hair McDaniel
competition is strong. 8
3 Advertising Campaign
A series of related
advertisements focusing
on a common theme,
slogan, and set of
advertising appeals.

Steps in Creating an
3
Advertising Campaign
Determine the
advertising objectives.
Make creative decisions. Make media decisions.
Evaluate the campaign.

Setting Objectives:
3
The DAGMAR Approach
Goal
Goal of
of
Advertising
Advertising
Objectives
Objectives
Define
Define Define
Define the
the Time
Time
Target
Target Audience
Audience Frame
Frame for
for Change
Change
Define
Define Desired
Desired
Percentage
Percentage
Change
Change

3 Creative Decisions
Identify
Identify
Product
ProductBenefits
Benefits
Develop
Developand
andEvaluate
Evaluate
Components
Components Advertising
AdvertisingAppeals
Appeals
of
of
Creative
Creative Execute
Execute
Decisions
Decisions the
theMessage
Message
Evaluate
Evaluatethe
the
Campaign’s
Campaign’sEffectiveness
Effectiveness
3 Identify Product Benefits
● “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

3 Advertising Appeal
Reason for a person

to buy a product.

3 Common Advertising Appeals
Profit
Profit Product
Product saves,
saves, makes,
makes, or
or protects
protects money
money
Health
Health Appeals
Appeals to
to body-conscious
body-conscious or
or health
health seekers
seekers
Love
Love or
or romance
romance Used
Used in
in selling
selling cosmetics
cosmetics and
and perfumes
perfumes
Fear
Fear Social
Social embarrassment,
embarrassment, old
old age,
age, losing
losing health
health
Admiration
Admiration Reason
Reason for
for use
use of
of celebrity
celebrity spokespeople
spokespeople
Convenience
Convenience Used
Used for
for fast
fast foods
foods and
and microwave
microwave foods
foods
Fun
Fun and
and pleasure
pleasure Key
Key to
to advertising
advertising vacations,
vacations, beer,
beer, parks
parks
Vanity
Vanity and
and egotism
egotism Used
Used for
for expensive
expensive or
or conspicuous
conspicuous items
items
Environmental
Environmental Centers
Centers around
around environmental
environmental protection
protection
Consciousness
Consciousness
3 Unique Selling Proposition
Desirable, exclusive, and

believable advertising appeal
selected as the theme for a
campaign.
Jingles
Dockers
3 Executing the Message
Goodyear
Scientific
Scientific Slice-of-Life
Slice-of-Life
Musical
Musical Lifestyle
Lifestyle
Demon-
Common
Common Spokes-
Demon- person/
stration
stration Executional
Executional Testimonial
Styles
Styles
Mood
Moodoror Fantasy
Fantasy
Image
Image Real/
Real/
Animated
Animated Humorous
Humorous
Product
Product
Symbols
Symbols
4 Major Types of Advertising Media
Newspapers
Newspapers
Magazines
Magazines
Radio
Radio
Television
Television
Outdoor
Outdoor Media
Media
Internet
Internet
Alternative
Alternative Media
Media
4 Advertising Spending for 2000

4 Newspapers
Advantages
Advantages Disadvantages
Disadvantages
● Year-round readership ● Limited demographic

selectivity
● Geographic selectivity
● Little color
● Immediacy
● May be expensive
● High individual market
coverage ● Low pass-along rate
● Short lead time ● Clutter
● Mass market medium
4 Cooperative Advertising
An arrangement in which
the manufacturer and the
retailer split the costs
of advertising the
manufacturer’s brand.

4 Magazines
Advantages
Disadvantages
● Good reproduction ● Higher cost per contact
● Demographic ● Long-term advertiser

selectivity commitments
● Regional/local ● Slow audience build-up

selectivity ● Limited demonstration
● Long advertising life capabilities
● High pass-along rate ● Lack of urgency

● Long lead time
On
OnLine
Line
http://www.radioindustry.about.com
4 Radio http://www.radioindustry.about.com
Advantages
Disadvantages
● Selectivity and ● No visual treatment
audience segmentation
● Short advertising life
● Immediate and portable
● High frequency to
● Geographic flexibility generate retention
● Entertainment ● Commercial clutter
carryover
● Background
● Short-term ad distractions
commitments

On
OnLine
Line
http://www.fox.com
http://www.fox.com
4 Television http://www.abc.com
http://www.abc.com
Advantages
Disadvantages
● Wide, diverse audience ● Short life of message

● Low cost per thousand ● Expensive with high
campaign cost
● Creative and
demonstrative ● Little demographic
selectivity with network
● Immediacy of messages
● Long-term advertiser
● Entertainment carryover commitments
● Demographic selectivity ● Long lead times
with cable
● Clutter
4 Outdoor Media
Advantages
Disadvantages
● High exposure ● Short message

frequency
● Lack of demographic
● Moderate cost selectivity
● Flexibility ● High “noise” level
● Geographic selectivity
● Broad, diverse market

On
OnLine
Line
http://www.bannerite.com
http://www.bannerite.com
4 Internet http://www.flash-banner-design.com
http://www.flash-banner-design.com
Advantages
Disadvantages
● Fast growing ● Difficult to measure ad

effectiveness and ROI
● Ability to reach narrow
target audience ● Ad exposure relies on
“click through”
● Short lead time
● Not all consumers
● Moderate cost have access to internet

4 Examples of Alternative Media
Fax
Fax Machines
Machines
Video
Video Shopping
Shopping Carts
Carts
Computer
Computer
Screen
Screen Savers
Savers
Interactive
Interactive Kiosks
Kiosks On
OnLine
Line
http://www.looksmart.com
http://www.looksmart.com
http://www.yahoo.com
http://www.yahoo.com
Ads
Ads in
in
Movies
Movies and
and Videos
Videos

4 Media Selection Considerations
Cost
Cost per
per The
The cost
cost of
of reaching
reaching one
one
Contact
Contact member
member of
of the
the target
target market.
market.
The
The number
number of of target
target consumers
consumers
Reach
Reach exposed
exposed toto aa commercial
commercial at at least
least
once
once during
during aa time
time period.
period.
The
The number
number of of times
times an
an individual
individual
Frequency
Frequency is
is exposed
exposed to to aa message
message during
during aa
time
time period.
period.
Audience The
The ability
ability ofof an
an advertising
advertising
Audience medium
medium to to reach
reach aa precisely
precisely
Selectivity
Selectivity defined
defined market.
market.
4 Cable TV Network Viewer Profiles

4 Media Scheduling
Continuous
Continuous Advertising
Advertising is
is run
run steadily
steadily
Media
Media Schedule
Schedule throughout
throughout the
the period.
period.
Flighted
Flighted Advertising
Advertising is
is run
run heavily
heavily every
every
Media
Media Schedule
Schedule other
other month
month oror every
every two
two weeks.
weeks.
Pulsing
Pulsing Advertising
Advertising combines
combines continuous
continuous
Media
Media Schedule
Schedule scheduling
scheduling with
with flighting.
flighting.
Seasonal
Seasonal Advertising
Advertising is
is run
run only
only when
when the
the
Media
Media Schedule
Schedule product
product is
is likely
likely to
to be
be used.
used.

5 Public Relations
The
The Role
Role of
of
Public
Public Relations
Relations
Executes
Executesprograms
programs
Evaluates
Evaluates public
public to
togain
gainpublic
public
attitudes
attitudes acceptance
acceptance
Identifies
Identifiesissues
issuesof
of
public
publicconcern
concern

5 Functions of Public Relations
Press
Press Relations
Relations
Product
Product Publicity
Publicity
Corporate
Corporate Communication
Communication
Public
Public Affairs
Affairs
Lobbying
Lobbying
Employee
Employee and
and Investor
Investor Relations
Relations
Crisis
Crisis Management
Management
5 Public Relations Tools ETrade 2
On
OnLine
Line
http://www.bmwfilms.com
http://www.bmwfilms.com
New
New Product
Product Publicity
Publicity
Product
Product Placement
Placement
Consumer
Consumer Education
Education
Event
Event Sponsorship
Sponsorship
Issue
Issue Sponsorship
Sponsorship
Internet
Internet Web
Web Sites
Sites
5 Crisis Management
A coordinated effort to
handle the effects of
unfavorable publicity or of
an unfavorable event.


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Chapter 15: Advertising and Public Relations: Objectives

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Chapter 15: Advertising and Public Relations

• Discuss the effect of advertising on market share and

• Identify the major types of advertising.

• Discuss the creative decisions in developing an advertising

• Describe media evaluation and selection techniques.

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

Chap. 15 Marketing 7e Lamb Hair McDaniel 1

● U.S. advertising spending exceeds

● Industry employs only 284,000

● Ad budgets of some firms exceed

Chap. 15 Marketing 7e Lamb Hair McDaniel 2

Chap. 15 Marketing 7e Lamb Hair McDaniel 3

Chap. 15 Marketing 7e Lamb Hair McDaniel 4

Chap. 15 Marketing 7e Lamb Hair McDaniel 5

Chap. 15 Marketing 7e Lamb Hair McDaniel 6

• Stimulates primary demand for

• Influence demand for brand in the

• Compares two or more competing

Chap. 15 Marketing 7e Lamb Hair McDaniel 9

Make creative decisions. Make media decisions.

Evaluate the campaign.

Chap. 15 Marketing 7e Lamb Hair McDaniel 10

Chap. 15 Marketing 7e Lamb Hair McDaniel 11

● “Sell the Sizzle, not the Steak”

Chap. 15 Marketing 7e Lamb Hair McDaniel 13

Reason for a person

Chap. 15 Marketing 7e Lamb Hair McDaniel 14

Desirable, exclusive, and

Chap. 15 Marketing 7e Lamb Hair McDaniel 19

● Year-round readership ● Limited demographic

Chap. 15 Marketing 7e Lamb Hair McDaniel 21

● Good reproduction ● Higher cost per contact

● Demographic ● Long-term advertiser

● Regional/local ● Slow audience build-up

● High pass-along rate ● Lack of urgency

Chap. 15 Marketing 7e Lamb Hair McDaniel 23

● Wide, diverse audience ● Short life of message

● High exposure ● Short message

Chap. 15 Marketing 7e Lamb Hair McDaniel 25

● Fast growing ● Difficult to measure ad

Chap. 15 Marketing 7e Lamb Hair McDaniel 26

Chap. 15 Marketing 7e Lamb Hair McDaniel 27

Chap. 15 Marketing 7e Lamb Hair McDaniel 29

Chap. 15 Marketing 7e Lamb Hair McDaniel 30

Chap. 15 Marketing 7e Lamb Hair McDaniel 31

Chap. 15 Marketing 7e Lamb Hair McDaniel 34

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