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1
Chapter 17: Advertising and Public
Relations
Prepared & Designed by Laura Rush, B-books, Ltd.
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Learning Outcomes
Discuss the effects of advertising on marketshare and consumers
Identify the major types of advertising
Discuss the creative decisions in developingan advertising campaign
Describe media evaluation and
selection techniques
Discuss the role of public relations
in the promotional mix
LO1
LO2
LO3
LO5
LO4
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The Effects of Advertising
Discuss the effect ofadvertising on market share
and consumers.
LO1
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The Effects of Advertising
In recent years, 30companies spent over $1billion each
The advertising andmarketing services employapproximately 750,000
people. Ad budgets of some firms are
almost $4 billion annually.
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The Effects of Advertising
Top Ten Leaders by U.S.Advertising Spending
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Advertising and Market Share
New brands with a small market share
spend proportionally more for
advertising and sales promotion than
those with a large market share
1. Beyond a certain level of spending,diminishing returns set in.
2. New brands require higher spending to reacha minimum level of exposure needed to affectpurchase habits.
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Review Learning OutcomeEffects of Advertising
LO1
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Major Types of Advertising
Identify the major typesof advertising.
LO2
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Major Types of Advertising
Corporate identity
Pioneering
Competitive
Comparative
ProductAdvertising
InstitutionalAdvertising
Advocacy
advertising
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Product Advertising
Pioneering Stimulates primary demand for
new product or category
Used in the PLC introductory stage
Competitive
Influences demand for brand in the
growth phase of the PLC Often uses emotional appeal
Comparative
Compares two or more competing
brands product attributes
Used if growth is sluggish, or ifcompetition is strong
Online
http://www.pizzahut.com
http://www.papajohns.com
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Review Learning OutcomeThe Major Types of Advertising
LO2
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Creative Decisions in Advertising
Discuss the creative
decisions in developing an
advertising campaign.
LO
3
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Creative Decisions in
Advertising
Advertising Campaign - A series
of related advertisements
focusing on a common theme,
slogan, and set of
advertising appeals.
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Creative Decisions in
Advertising
Determine theadvertising objectives
Make creative decisions Make media decisions
Evaluate the campaign
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Setting Objectives:
The DAGMAR Approach
Define target audience
Define desired percentage change
Define the time frame for change
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Creative Decisions
Develop and evaluateadvertising appeals
Executethe message
Evaluate thecampaigns effectiveness
Identifyproduct benefits
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Identify Product Benefits
Sell the Sizzle, not the Steak
Sell products benefits, not its attributes
A benefit should answerWhats in it for me?
Ask So?to determineif it is a benefit
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Identify Product Benefits
Attribute
Benefit
SoBe Life Water has reformulated five
delicious, low-calorie flavors, each
infused with essential vitamins and
healthy herbal ingredients.
SoBe Life Water is not only an enhanced
water; it is a lifestyle unto itself. It
provides consumers the healthiest, mostfun and refreshing products, delivering
the incredibly positive benefits of
hydration.
- So?
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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 or health 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
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Unique Selling Proposition
A desirable, exclusive, and
believable advertising appeal
selected as the theme
for a campaign.
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Executing the Message
Mood orImage
Musical
Demon-stration
Scientific
Real/AnimatedProductSymbols
Fantasy
LifestyleSlice-of-Life
Humorous
Spokes-person/Testimonial
Review Learning Outcome
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Review Learning OutcomeCreative Decisions for Ad Campaign
LO3
Set
advertising
objectivesIdentify benefits
Develop appeal
Evaluate
campaign
results
Evaluating
results helps
marketersadjust objectives
for future
campaigns
Execute
message
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Media Decisions in Advertising
Describe media evaluationand
selection techniques.
LO4
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Media Decisions in Advertising
Newspapers
Magazines
Yellow Pages
Internet
Radio
Television
Outdoor Media
Direct Mail
Trade Exhibits
Cooperative Advertising
Brochures
Coupons
Catalogs
Special Events
Monito red Media Unmon itored Media
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Major Advertising Media
Newspapers
Magazines
Radio
Television
Outdoor Media
Yellow Pages
Internet
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Cooperative Advertising
An arrangement in which themanufacturer and the retailersplit the costs of advertising
the manufacturers brand.
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Magazines
Advantages Disadvantages
Good reproduction
Demographic selectivity
Regional/localselectivity
Long advertising life
High pass-along rate
Long-term advertisercommitments
Slow audience build-up
Limited demonstrationcapabilities
Lack of urgency
Long lead time
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Radio
Advantages Disadvantages
Low cost
Immediacy of message
Short notice scheduling
No seasonal audiencechange
Highly portable
Short-term advertisercommitments
Entertainment carryover
No visual treatment
Short advertising life
High frequency togenerate comprehensionand retention
Background distractions
Commercial clutter
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Television
Advantages Disadvantages
Wide, diverse audience
Low cost per thousand
Creative opportunities fordemonstration
Immediacy of messages
Entertainment carryover
Demographic selectivity
with cable
Short life of message
Consumer skepticism
High campaign cost Little demographic
selectivity with stations
Long-term advertisercommitments
Long lead times forproduction
Commercial clutter
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TV Advertising: Is Less More?
The number of ads in TV shows is alongstanding complaint of viewers andadvertisers.
Tests are being conducted to featureshorter commercial pods.
A significant trend to affect televisionadvertising is the rise in popularity ofdigital video recorders (DVRs) such asTiVo.
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Internet
Advantages Disadvantages
Fast growing
Ability to reach narrowtarget audience
Short lead time
Moderate cost
Difficult to measure adeffectiveness and ROI
Ad exposure relies onclick through frombanner ads
Not all consumers haveaccess to Internet
Onlinehttp://www.fox.com
http://www.abc.com
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Videogame Advertising
Ads are inserted into thegame environment.
Video games could becomea large new medium foradvertising.
Games that are advertisements
(advergaming)exposes customers toproducts and builds companydatabases
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Cell Phones
Newest advertising media.
Useful for reaching youth market.
Over 4 billion cell phone users in theworld.
In 2008 cell phone ad sales reached
over$1.6 billion in U.S.nearly $4.4 billionworldwide.
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Media Selection
Media MixCombination of media to be used for apromotional campaign
Cost per contactThe cost of reaching one member of
the target market
Reachnumber of target consumers exposed to acommercial at least once during a specific period,usually four weeks
Frequencynumber of times an individual is exposedto a given message during a specific period
Q lit ti F t i M di
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Qualitative Factors in Media
Selection
Attention to the commercialand the program
Involvement
Program liking
Lack of distractions
Other audience behaviors
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Media Scheduling
Continuous
Media Schedule
FlightedMedia Schedule
PulsingMedia
Schedule
Seasonal
Media Schedule
Advertising is run steadilythroughout the period.
Advertising is run heavily everyother month or every two weeks.
Advertising combinescontinuous scheduling with
flighting.
Advertising is run only when theproduct is likely to be used.
Review Learning Outcome
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Review Learning OutcomeMedia Evaluation and Selection
LO4
Type: NewspaperMagazineRadioTelevisionOutdoorInternet
Alternative
Considerations:
Mix How much of each?Cost per contact How much per person?Reach How many people?Frequency How often?
Audience selectivity How targeted is audience?
Scheduling:continuous
flighted
pulsing
seasonal
Winter Spring Summer Fall
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Public Relations
Discuss the role of public
relations in the promotional mix.
LO5
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Public Relations
The elements in the
promotional mix that:
-evaluate public attitudes,
-identify issues of public concern,
-execute programs to gain
public acceptance.
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Functions of Public Relations
Press relations
Product publicity
Corporate communication
Public affairs
Lobbying
Employee and investor relations
Crisis management
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Example of Consumer
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Example of Consumer
Education
Corporations are teaching public schoolstudents about personal finance.
People under age 25 are a fast-growing
group for credit card debt increases andbankruptcy.
Is it appropriate to use educational
materials with a corporate identity? How should financial literacy be taught?
SOURCE: Diya Gullapalli,Your Kids Teacher: The Bank,
Wall Street Journal, April 8-9, 2006, B1.
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Managing Unfavorable Publicity
Crisis Management -A coordinated effort to handle
the effects of unfavorablepublicity or of an
unfavorable event.
Review Learning Outcome
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Review Learning OutcomeThe Role of Public Relations
LO5
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Chapter 17 Company Clip
With only a small advertising budget, theVans marketing team must developpartnerships with its advertisers and use
tours and events to spread the Vans culture.
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