Advertising and Public Relations

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• Chapter 16
• Advertising and Public Relations

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Objectives

• Identify the three major advertising objectives
  and the two basic categories of advertising.
• List the major advertising strategies.
• Describe the process of creating an
  advertisement.
• List and compare the major advertising media.
• Outline the organization of the advertising
  function and the role of an advertising agency.
• Identify the principal methods of sales
  promotion.
• Explain the roles of cross promotions, public
  relations, publicity, and ethics in an
  organizations promotional strategy.
• Explain how marketers assess promotional
  effectiveness.

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Advertising

• Involves paid nonpersonal communication through
  various media with the purpose of informing or
  persuading members of a particular audience.
• Used by marketers to reach target markets.
• A typical consumer is exposed to hundreds of
  advertising messages each day.
• Provides an efficient, inexpensive, and fast
  method of reaching the ever-elusive, increasingly
  segmented consumer market.

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Two Broad Categories of Advertisements

• Product advertising is nonpersonal selling of a
  particular good or service.
• This is the type of advertising the average
  person usually thinks of.
• Institutional advertising, in contrast, promotes
  a concept, an idea, a philosophy, or the goodwill
  of an industry, company, organization, person,
  geographical location, or government agency.
• Often closely related to the public-relations
  function of the enterprise.

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Advertising Objectives in Relation to Stage in
the Product Life Cycle

• Informative advertising seeks to develop initial
  demand for a good, service, organization, person,
  place, idea, or cause.

• Persuasive advertising attempts to increase
  demand for an existing good, service,
  organization, person, place,

• Reminder advertising strives to reinforce
  previous promotional activity.

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Where do you think Quiznos is on the Product Life
Cycle? As the Advertising Manager what form of
advertising would you recommend?
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Comparative Advertising
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Creating Ads

• What does J. Walter Thompson stand for?
• We are for Brands. We are for bringing Brands
  to life. We are for bringing Brands back to
  life, where necessary. We are for nurturing,
  building and sustaining Brands so that this
  should not become necessary. We are for Brands
  you can eat, or drink, or drive, or read, or
  wear, or give, or receive, or join technological
  Brands, trendy Brands, traditional Brands. We
  are for Brands which cross borders and Brands
  from across the street. More than anything, we
  are for Branding Ideas vivid enough to make all
  of these things possible, in every communications
  channel conceivable. After all, we have our own
  Branding to think about...

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Advertising

• Retail Advertising, which includes all
  advertising by retail stores that sell goods or
  services directly to the consuming public.
• Varies widely in its effectiveness.
• Source, message, and shopping experience seem to
  affect consumer attitudes toward these
  advertisements.
• Cooperative advertising - A retailer often shares
  advertising costs with a manufacturer or
  wholesaler.
• Originated to take advantage of the medias
  practice of offering lower rates to local
  advertisers than to national ones.
• Can create vertical links.

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Creating an Advertisement

• Develop Goals
• Create Plan
• Develop and create ad
• Select media

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Elements of the Advertising Planning Process
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Advertising Messages

• Starts with the customer benefits and moves to
  the creative concept phase.
• Marketers work to create an ad with meaningful,
  believable, and distinctive appeals.

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Anatomy of an Ad
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An Advertisement Should

• Gain attention and interest
• Inform and/or persuade
• Eventually lead to a purchase or other desired
  action.

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Ad Text

• Serif font
• Easy to read
• Tiny horizontal strokes help readers eye flow
  from letter to letter
• Times, Garamound, Goudy, New Century Schoolbook
• Bold sans serif (without serifs)
• Good for headlines subheads
• Bring more attention since slow reader down
• Arial bold, helvetica black, univers bold, trade
  gothic
• Turn Eye Appeal into Buy Appeal
• www.MacGraphics.net, Karen Saunders, 888-796-7300

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Comparison of Advertising Media Alternatives
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Interactive Ads WSJ 5/05

• By 2010, 80 of viewers will watch TV on demand
  and skip through traditional commercials
• Interactive ads allowing viewers to opt to get
  more info about products
• Chrysler- 15,000 click-throughs for more info in
  3 weeks
• Old Spice Red Zone Body Wash, Reebok, Cadillac
• Sonys XXXState of the Union ad on
  satellite-tv
• On-screen icon linked to 30-min. program about
  the movie

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Outdoor Ads 23B Industry in Growth 2006

• CBS won bid for London subway adv. (Tube)
• Development team of 18 in London for 2 yrs.
• TV screens projectors beaming ads on walls
• Will stick up glueless posters by 3M
• 2 growing adv. segment after Internet
• Clear Channel billboards in London with
  reflective cells that change color

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Interactive Ads

• Sharps Aquos LCD, 9-04
• Tell mysterious story -www.moretosee.com
• Consumers must go to the Web for the conclusion
• Live performances of story in NY storefront
• Man in pool, women watches from afar, car comes
  flying through air and crashes into pool.
• www.subservientchicken.com 328M hits for BK in
  1st 4 months (Crispin, Porter, Bogusky)
• Viral or buzz advertising

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Sports Illustrated MagazineDigital platforms wsj
06

• Magazine model for new millenium
• Verizon V Cast phone broadcasts Rick Reillys
  weekly video segment, Riffs of Reilly
• I Pod video from 2006 swimsuit edition sold as
  a podcast
• Download of edition, photo shoot outtakes other
  content for 6
• Web Internet frame-grad from SI.com
• Shock magazine
• Digital subscriptions by email for 15/yr.

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Digital Formats

• TV Guide 60 blogs from staffers
• Runners World podcasts
• Adidas sponsored free training podcasts for NY
  Boston Marathon
• Car and Driver engine sounds as ring tones from
  cars such as Ferrari
• Hearst unit focused on podcasts, video,
  blogging mobile content
• Times Office Pirates web only publication
• Conde Nast Epi to Go sends food lists to
  cellphones from Bon Appetit Gourmet
• MaximToGo.com sexy women for cellphones rude
  ring tones (burbs) for 2 up
• Give print advertisers added value promo online
• Vogue puts up ShopVogue.com 3 times/yr.

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Media Scheduling

• Setting the timing and sequence for a series of
  advertisements.
• A variety of factors influence this decision
• Sales patterns
• Repurchase cycles
• Competitors activities

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Alloy Media Scheduling

• Alloy is a media, direct marketing and marketing
  services company focusing on Generation Y. Their
  media scheduling integrates direct mail catalogs,
  print media, websites, on-campus marketing
  programs, and promotional events.

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Measure the Effectiveness of Media Schedule Plans

• Reach refers to the number of different people or
  households exposed to an advertisement at least
  once during a certain time period.
• Frequency refers to the number of times an
  individual person is exposed to an advertisement
  during a certain time period.
• By multiplying reach times frequency, advertisers
  quantitatively describe the total weight of a
  media effort, which is called the campaigns
  gross rating point.

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HeadOn 07

• Sales up 234
• Spots annoy viewers
• www.youtube.com/watch?vIs3icfcbmbs
• Among worst commercials
• Annoying, repetitive, obnoxious -- and effective.

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Best Ads of 06

• Low key, anti-advertising approach (non-typical
  Madison Ave.)
• Merge advertising entertainment
• Monkey business viral ad, Careerbuilder.com
• Cramer-Krasselt
• Consumers build video email with a chimp record
  custom voice greeting via telephone
• Site traffic up 25
• Smirnoffs new malt iced tea by Diageo PLC
• 2-min. video seen by over 2 M people on YouTube
  mentioning tea only in passing

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Best Ads of 06

• Apple by Omnicom
• Hip (Accepted actor) Justin Long debates
  Apples features with nerd (Daily Show
  commentator John Hodgman)
• Competitive ads to a new height
• KFC by Interpublic Group
• Circumvent video recorders
• One frame with secret code Buffalo used for
  coupon for free Buffalo Snacker sandwich
• 100,000 redeemed, 40 traffic increase

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Sales Promotion

• Marketing activities other than personal selling,
  advertising, and publicity.
• Accounts for double the promotional dollar
  outlays of advertising.
• Originally intended as short-term incentives
  aimed at producing immediate consumer buying
  responses.
• Traditionally, these techniques were viewed as
  supplements to other elements of the firms
  promotional mix.
• Today, however, marketers recognize them as an
  integral part of many marketing plans.
• Shifted from short-term to long-term goals.

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Principal Methods of Sales Promotion

• Two major categories
• Consumer-oriented promotions take the form of
  coupons and refunds, samples, contests and
  sweepstakes, and specialty advertising.
• Trade promotions include trade allowances,
  point-of-purchase advertising, trade shows, and
  dealer incentives, contests, and training
  programs.

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Sampling as a Promotional Tool

• There are many companies that are taking
  advantage of sampling to promote their products.
• Many of those same companies have found the
  internet to be an effective tool to market their
  products through sampling.
• The StartSampling Web Site is just one place
  marketers can use to provide samples and gather
  information on the market.

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Assessing Promotional Effectiveness

• Pretesting is the assessment of an ads
  effectiveness before it is actually used.
• Includes conviction tests and blind product
  tests.
• Posttesting is the assessment of the ads
  effectiveness after it has been used.
• Include readership test, unaided recall tests,
  inquiry tests, and split runs.

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Advertising Ethics

• Puffery and Deception
• Puffery refers to exaggerated claim of a
  products superiority or the use of subjective or
  vague statements that many not be literally true.

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UCC

• The Uniform Commercial Code standardizes sales
  and business practices throughout the U.S. It
  makes a distinction between puffery and any
  specific or quantifiable statement about product
  quality or performance that constitutes an
  express warranty.

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Select Top TV Commercials since
1980http//www.usatoday.com/money/top25-ads.htm
Wendys Wheres the Beef?
Life Alert Ive Fallen, and I Cant Get Up!
Energizer Bunny
Got Milk?
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California Raisin Advisory Board Heard it
Through the Grapevine
Chevy trucks Like a Rock
Playtex Model
Tasters Choice Soap Opera
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Budweiser Croaking Frogs
Pepsi Michael Jackson on Fire
This is Your Brain on Drugs
Federal government Crash Test Dummies
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Pets.com Because Pets Cant Drive
New Coke Max Headroom