Chapter 15 Advertising and Public Relations

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Chapter 15 Advertising and Public Relations
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Advertising

• U.S. advertising spending exceeds 215 billion
  per year
• Industry employs only 272,000
• Ad budgets of some firms exceed over 2 billion
  per year

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Advertising and Market Share

• New brands spend proportionately more for
  advertising than old ones.
• A certain level of exposure is needed to affect
  purchase habits.
• Beyond a certain level, diminishing returns set
  in.

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Advertising and the Consumer

• Average U.S. citizen is exposed to hundreds of
  ads each day.
• Advertising may change a consumers attitude
  toward a product.
• Advertising can affect consumer ranking of brand
  attributes.

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Major Types of Advertising
Enhance corporations identify
Institutional Advertising
Advocacy advertising
Pioneering
Product Advertising
Competitive
Comparative
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Product Advertising

• Stimulates primary demand for new product or
  category

Pioneering

• Influence demand for brand in the growth phase of
  the PLC.
• Often uses emotional appeal.

Competitive

• Compares two or more competing brands product
  attributes.
• Used if growth is sluggish, or if competition is
  strong.

Comparative
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Steps in Creating an Advertising Campaign
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Creative Decisions
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Identify Product Benefits

• Sell the Sizzle, not the Steak
• Sell products benefits, not its attributes
• A benefit should answer Whats in it for me?
• Ask So? to determine if it is a benefit

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Common Advertising Appeals
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Executing the Message
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Media Types
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Advertising Spending for 1999
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Newspapers
Advantages
Disadvantages

• Limited demographic selectivity
• Little color
• May be expensive
• Low pass-along rate
• Clutter
• Mass market medium

• Year-round readership
• Geographic selectivity
• Immediacy
• High individual market coverage
• Short lead time

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Magazines
Advantages
Disadvantages

• Higher cost per contact
• Long-term advertiser commitments
• Slow audience build-up
• Limited demonstration capabilities
• Lack of urgency
• Long lead time

• Good reproduction
• Demographic selectivity
• Regional/local selectivity
• Long advertising life
• High pass-along rate

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Radio
Advantages
Disadvantages

• Selectivity and audience segmentation
• Immediate and portable
• Geographic flexibility
• Entertainment carryover
• Short-term ad commitments

• No visual treatment
• Short advertising life
• High frequency to generate retention
• Commercial clutter
• Background distractions

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Television
Advantages
Disadvantages

• Short life of message
• Expensive with high campaign cost
• Little demographic selectivity with network
• Long-term advertiser commitments
• Long lead times
• Clutter

• Wide diverse audience
• Low cost per thousand
• Creative and demonstrative
• Immediacy of messages
• Entertainment carryover
• Demographic selectivity with cable

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Outdoor Media
Advantages
Disadvantages

• High exposure frequency
• Moderate cost
• Flexibility
• Geographic selectivity
• Broad, diverse market

• Short message
• Lack of demographic selectivity
• High noise level

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Internet and World Wide Web
Advantages
Disadvantages

• Difficult to measure ad effectiveness and ROI
• Ad exposure relies on click through
• Not all consumers have access to internet

• Fast growing
• Ability to reach narrow target audience
• Short lead time
• Moderate cost

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Alternative Media
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Media Selection Considerations
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Functions of Public Relations
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Public Relations Tools
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Managing Unfavorable Publicity
A coordinated effort to handle the effects of
unfavorable publicity or of an unfavorable event.
Crisis Management