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15

Chapter 14 - slide *

Copyright © 2009 Pearson Education, Inc.   Publishing as Prentice Hall


Chapter Fifteen

Advertising and Public Relations

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Advertising and Public Relations

Topic Outline

Advertising

  • Objectives
  • Budget
  • Strategy
  • Effectives

Public Relations

  • Role and impact
  • Tools

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Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor

Advertising

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Advertising

Developing and Advertising Programs

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Advertising

Objectives are classified by primary purpose

  • Inform
  • Persuade
  • Remind

Setting Advertising Objectives

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

Note to Instructor

This YouTube ad is a bit of a blonde joke ad. It is a persuading ad for Mercedes.

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Advertising

Informative advertising is used when introducing a new product category; the objective is to build primary demand

Comparative advertising directly or indirectly compares the brand with one or more other brands

Persuasive advertising is important with increased competition to build selective demand

Reminder advertising is important with mature products to help maintain customer relationships and keep customers thinking about the product

Setting Advertising Objectives

Note to Instructor

Discussion Question

When would an advertiser use each of these types of objectives?

You can then draw a strong tie to the PLC. This YouTube link is to a classic Pepsi ad, which is practicing persuasive advertising.

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Table 15.1
Possible Advertising Objectives

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Advertising

Factors to consider when setting the budget

  • Product life-cycle stage
  • Market share

Setting the Advertising Budget

Note to Instructor

This Web link brings you to the AOL Super Bowl ad site. It is interesting to talk to the students about the decision for some brands to spend the majority of their annual advertising budget on this one time event.

This slide leads a discussion of the product life-cycle stages and their influence on advertising budgets. In general new products require larger budgets and mature brands require lower budgets/

Market share can also determine budget where building or taking market share requires larger budgets. In addition, markets with heavy competition or high advertising clutter require larger budgets.

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Advertising

Product life-cycle stage

  • New products require larger budgets
  • Mature brands require lower budgets

Market share

  • Building or taking market share requires larger budgets
  • Markets with heavy competition or high advertising clutter require larger budgets
  • Undifferentiated brands require larger budgets

Setting the Advertising Budget

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Advertising

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

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Advertising

Advertisements need to break through the clutter:

  • Gain attention
  • Communicate

well

Creating the Advertising Message

Note to Instructor

This Web link is for Microsoft’s new advertising campaign that was launched in 2008. The campaign was unusual as it began with two ads featuring Bill Gates and Jerry Seinfeld. These ran for only a short period of time and were followed immediately by the “I’m a PC” campaign. There is thought that the Gates/Seinfeld spots were to draw attention and create buzz because they were not very strongly received by the public.

Advertisements need to be better planned, more imaginative, more entertaining, and more rewarding to consumers.

Madison & Vine—the intersection of Madison Avenue and Hollywood—represents the merging of advertising and entertainment.

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Advertising

Advertisements need to be better planned, more imaginative, more entertaining, and more rewarding to consumers

  • Madison & Vine—the intersection of Madison Avenue and Hollywood—represents the merging of advertising and entertainment

Creating the Advertising Message

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Advertising

Creating the Advertising Message

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Advertising

Creative concept is the idea that will bring the message strategy to life and guide specific appeals to be used in an advertising campaign

Characteristics of the appeals include:

  • Meaningful
  • Believable
  • Distinctive

Creating the Advertising Message

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Advertising

  • 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.

Creating the Advertising Message

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Advertising

Creating the Advertising Message

Note to Instructor

Discussion Question

Categorize the execution of this YouTube ad.

It is one of the cavemen ads for Geico. They should notice that the caveman has become a personality and this has a bit of lifestyle advertising involved.

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Advertising

Message execution also includes:

  • Tone
  • Positive or negative
  • Attention-getting words
  • Format
  • Illustration
  • Headline
  • Copy

Creating the Advertising Message

Note to Instructor

In slideshow view, click on movie icon to launch eTrade video snippet. See accompanying DVD for full video segment.

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Advertising

  • YouTube videos
  • Brand Web site contests
  • Positives
  • Low expense
  • New creative ideas
  • Fresh perspective on brand
  • Boost consumer involvement

Creating the Advertising Message

Consumer Generated Messages

Note to Instructor

An example of this is given in the text:

Doritos held a “Crash the Super Bowl Challenge” contest that invited consumers to create their own video ads about the tasty triangular corn chips.

Doritos received 1,080 user-generated videos and posted the top five on the contest Web site, where consumers could view the ads and vote for a winner.

The five finalists received a $10,000 prize and PepsiCo showed the winning ad during the Super Bowl. The campaign was a smashing success.

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Advertising

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

Selecting Advertising Media

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Advertising

Selecting media vehicles involves decisions presenting the media effectively and efficiently to the target customer and must consider the

message’s:

  • Impact
  • Effectiveness
  • Cost

Selecting Advertising Media

Note to Instructor

When selecting specific media vehicles, the planner must consider the cost of the media as compared to its effectiveness by evaluating:

Audience quality

Audience engagement

Editorial quality

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Advertising

Narrowcasting focuses the message on selected market segments

  • Lowers cost
  • Targets more effectively
  • Engages customers better

Selecting Advertising Media

Narrowcasting Versus Shotgun Approaches

Note to Instructor

The text gives the following example:

Tiny billboards attached to shopping carts.

Ads on shopping bags.

Decals on supermarket floors.

Supermarket eggs are stamped with the names of CBS television shows.

At the local laundromat, you load your laundry through a clever Pepto-Bismol ad plastered on the front of the washing machine.

City trash truck sporting an ad for Glad trash bags.

DVD case.

Parking-lot tickets.

Foreheads of college students for temporary advertising tattoos.

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Advertising

When deciding on media timing, the planner must consider:

  • Seasonality
  • Pattern of the advertising
  • Continuity—scheduling within a given period
  • Pulsing—scheduling unevenly within a given period

Selecting Advertising Media

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Advertising

Communication effects indicate whether the ad and media are communicating the ad message well and should be tested before or after the ad runs

Sales and profit effects compare past sales and profits with past expenditures or through experiments

Evaluating the Effectiveness and Return on Advertising Investment

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Advertising

  • Organizing for advertising
  • Agency vs. in-house
  • International advertising decisions
  • Standardization

Developing and Advertising Programs

Other Advertising Considerations

Note to Instructor

This Web link brings you to the homepage for Advertising Age. Depending on the amount of time the instructor has during this class, it might be interesting to explore the site with the students. At the minimum, students should write down this url, especially if they have an interest in advertising.

For international advertising decisions the most basic issue concerns the degree to which global advertising should be adapted to the unique characteristics of various country markets. Some large advertisers have attempted to support their global brands with highly standardized worldwide advertising, with campaigns that work as well in Bangkok as they do in Baltimore.

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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 is used to promote product, people, ideas, and activities

Public Relations

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  • Public relations department functions include:
  • Press relations or press agency
  • Product publicity
  • Public affairs
  • Lobbying
  • Investor relations
  • Development

Public Relations

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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

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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

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Public Relations

  • Lower cost than advertising
  • Stronger impact on public awareness than advertising

The Role and Impact of Public Relations

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Public Relations

Major Public Relations Tools

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Next Class

  • Chapters 16 (Personal Selling)

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