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Principles of Marketing Seventeenth Edition

Chapter 15

Advertising and Public Relations

Learning Objectives

15-1 Define the role of advertising in the promotion mix. 15-2 Describe the major decisions involved in developing an advertising

program. 15-3 Define the role of public relations in the promotion mix. 15-4 Explain how companies use PR to communicate with their

publics.

Learning Objective 1

Define the role of advertising in the promotion mix.

Advertising Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

Advertising

Learning Objective 2

Describe the major decisions involved in developing an advertising program.

Setting Advertising Objectives An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific time.

Setting Advertising Objectives Informative advertising is used when introducing a new product category to build primary demand. Persuasive advertising is important with increased competition to build selective demand. Comparative advertising is when a company compares its brand with other brands. Reminder advertising is important with mature products to help maintain customer relationships and keep customers thinking about the product.

Setting Advertising Objectives

Setting the Advertising Budget

Factors to Consider • Stage in product life cycle • Market share • Competition

Developing Advertising Strategy

Advertising strategy is the strategy by which the company accomplishes its advertising objectives and consists of: • Creating advertising messages • Selecting advertising media

Developing Advertising Strategy Creating the Advertising Message and Brand Content Advertising clutter: Today’s consumers, armed with an arsenal of weapons, can choose what they watch and don’t watch. Increasingly, they are choosing not to watch ads.

Developing Advertising Strategy Creating the Advertising Message and Brand Content Merging advertising and entertainment: • Madison & Vine—the intersection of Madison Avenue and Hollywood—

represents the merging of advertising and entertainment. • Native advertising—advertising or other brand-produced online content

that looks in form and function like the other natural content surrounding it on a web or social media platform.

Developing Advertising Strategy Creating the Advertising Message and Brand Content Message and content strategy: The first step in creating effective advertising content is to plan a message strategy—the general message that will be communicated to consumers. • Identifies consumer benefits • Follows from company’s broader positioning and customer value creation

strategies

Developing Advertising Strategy

Creating the Advertising Message and Brand Content The creative concept is the compelling “big idea” that will bring an advertising message strategy to life in a distinctive and memorable way. Characteristics of the appeals should be: • Meaningful • Believable • Distinctive

Developing Advertising Strategy Creating the Advertising Message and Brand Content

Message execution is when the advertiser turns the big idea into an actual ad execution that will capture the target market’s attention and interest. The creative team must find the best approach, style, tone, words, and format for executing the message.

Developing Advertising Strategy Message Execution Styles

Slice of life Lifestyle Fantasy

Mood or image

Musical Personality symbol

Technical expertise

Scientific evidence

Testimonial or

endorsement

Developing Advertising Strategy Creating the Advertising Message and Brand Content Message execution also includes: • Tone § Positive or negative

• Attention-getting words • Format § Illustration § Headline § Copy

Developing Advertising Strategy Creating the Advertising Message and Brand Content Consumer-generated content: • Consumers submit ad message

ideas, videos, and other brand content.

• Incorporates the voice of the customer into brand messages

• Generates greater customer engagement

Developing Advertising Strategy

Selecting Advertising Media The major steps in advertising media selection are: • Determining reach, frequency, impact, and engagement • Choosing among major media types • Selecting specific media vehicles • Choosing media timing

Developing Advertising Strategy

Reach is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time. Frequency is a measure of how many times the average person in the target market is exposed to the message. Impact is the qualitative value of a message exposure through a given medium. Engagement is a measure of things such as ratings, readership, listenership, and click-through rates.

Developing Advertising Strategy

Developing Advertising Strategy Selecting Advertising Media Selecting specific media vehicles involves decisions presenting the message effectively and efficiently to the target customer and must consider the message’s: • Impact • Effectiveness • Cost

Developing Advertising Strategy Selecting Advertising Media Deciding on media timing: When deciding on media timing, the planner must consider: • Seasonality • Pattern of the advertising § Continuity—scheduling

evenly within a given period § Pulsing—scheduling unevenly

within a given period

Evaluating Advertising Effectiveness and Return on Advertising Investment

Return on advertising investment is the net return on advertising investment divided by the costs of the advertising investment.

Evaluating Advertising Effectiveness and Return on Advertising Investment Communication effects indicate whether the ad and media are communicating the ad message well and can be tested before or after the ad runs. Sales and profit effects compare past sales and profits with past expenditures or through experiments.

Other Advertising Considerations Organizing for advertising • Agency vs. in-house International advertising decisions • Standardization or Adaptation

Learning Objective 3

Define the role of public relations in the promotion mix.

Public Relations

Public relations involves building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.

Public Relations Press relations or press agency involves the creation and placing of newsworthy information to attract attention to a person, product, or service. Product publicity involves publicizing specific products. Public affairs involves building and maintaining national or local community relations.

Public Relations Lobbying involves building and maintaining relations with legislators and government officials to influence legislation and regulation.

Investor relations involves maintaining relationships with shareholders and others in the financial community.

Development involves public relations with donors or members of nonprofit organizations to gain financial or volunteer support.

Public Relations

The Role and Impact of PR • Lower cost than advertising • Stronger impact on public awareness than advertising • Has power to engage consumers and make them part of the brand story

Learning Objective 4

Explain how companies use PR to communicate with their publics.

Public Relations Major Public Relations Tools

News Speeches Special events

Written materials

Corporate identity

materials Public service

activities

Buzz marketing

Social networking Internet