CHAPTER 13 Advertising and Public Relations

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CHAPTER 13Advertising and Public Relations
M A R K E T I N G
Real People, Real Choices Fourth Edition
Michael R. Solomon Greg W. Marshall
Elnora W. Stuart
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Chapter Objectives

• Tell what advertising is and describe the major
  types of advertising
• Describe the process of developing an advertising
  campaign
• Explain how marketers evaluate advertising
• Explain the role of public relations
• Describe the steps in developing a public
  relations campaign
• Understand direct marketing
• Explain the future of m-commerce

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Its an Ad Ad Ad Ad World

• Advertising is nonpersonal communication paid for
  by an identified sponsor using mass media to
  persuade, inform, and remind an audience.

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Types of Advertising

• Product advertising - message focuses on a
  specific product
• Institutional advertising - message focuses on
  activities, personality, or point of view of a
  company
• advocacy advertising
• public service advertisements (PSAs)

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Purposes of Product Advertising

• To educate people about a new product and what it
  does
• To emphasize a brands features and try to
  convince the target market to choose it over
  other options
• To ensure that people wont forget about a
  well-established product

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Product Advertising
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Institutional Advertising PSAs
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Who Creates Advertising?

• An advertising campaign is a coordinated,
  comprehensive plan that carries out promotion
  objectives and results in a series of
  advertisements placed in media over a period of
  time
• Agencies
• limited-service
• full-service

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Largest Ad Agencies

• J. Walter Thompson
• Leo Burnett Worldwide
• McCann-Erickson Worldwide
• BBDO Worldwide
• Grey Worldwide

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Leo Burnett
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The Body of Campaign Creation

• Account management (soul)
• Creative services (heart)
• Research and marketing services (brains)
• Media planning (legs)

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Figure 13.1 Developing the Campaign
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Step 1 Identifying the Target Market?
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Establish Advertising Objectives

• Message objectives
• Budget objectives

Click here
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Design the Ad

• Creative strategy is the process that turns a
  concept into an advertisement
• Creatives try to develop a big idea
• Creatives
• art directors
• copywriters
• photographers

Video The creative process used for branding
AFLAC
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Advertising Appeals

• Reasons Why (USP)
• Comparative Advertising
• Demonstration
• Testimonial

• Slice-of-Life
• Lifestyle
• Fear
• Sex
• Humor
• Slogans and Jingles

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USP Creative Strategy

• USP clearly communicates the reason a product can
  satisfy a need

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Humor
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Name that Brand!

• Double your pleasure, double your fun
• Good to the last drop
• My bologna has a first name.
• Id like to buy the world a _____

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Step 4 Pretest What Will Be Said

• Copy testing measures ad effectiveness
• Concept testing
• Test commercials
• Finished testing

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Step 5 Choose the Media

• Media planning is a problem-solving process for
  getting a message to a target audience in the
  most effective fashion
• Where to say it
• When to say it

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Is Your Product in the Right Place?
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Figure 13.2 Changes in Media Usage
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Television

• Pros
• Creative and flexible
• Prestigious
• High impact messages
• Network TV is cost effective for reaching mass
  audience
• Cable TV is good for reaching targeted group

• Cons
• Quickly forgotten
• Requires frequent repetition
• Increasingly fragmented audiences
• High costs on an absolute basis
• Shorter ads result in increased clutter

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Radio

• Pros
• Good for selective targeting
• Heard out of home
• Relatively low cost
• Can be modified quickly
• Uses listener imagination

• Cons
• Listeners may not pay full attention
• Small audiences mean ads must be repeated
  frequently
• Not appropriate for products requiring
  demonstration

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Newspapers

• Pros
• Wide exposure and extensive market coverage
• Flexible format permits use of color, different
  sizes and editions
• Useful for comparison shopping
• Local retailers can tie in with national ads

• Cons
• Most dont spend much time reading newspapers
• Low readership among teens and young adults
• Short life span
• Very cluttered

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Magazines

• Pros
• Narrowly targeted audiences by specialized
  magazines
• High credibility and interest level provide good
  ad environment
• Long life span and pass along rate
• Excellent visual quality

• Cons
• With exception of direct mail, the most expensive
  form
• Long deadlines
• Must use several magazines to reach target

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Outdoor

• Pros
• Very high reach
• Low cost
• Good for supplementing other media

• Cons
• Hard to communicate complex messages
• Cannot demonstrate product effectiveness
• Controversial and disliked

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Out-of-Home Media
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Place-based Media
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Internet Advertising

• Banners
• Buttons
• Search engine and directory listings

• Pop-up ads
• Email
• permission marketing
• spamming

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Media Scheduling

• Specifies the exact media to use for the
  campaign, when and how often the message should
  appear
• Outlines the planners best estimate of which
  media and vehicles will be most effective in
  attaining campaign objectives

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Figure 13.3 Media Schedule
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Factors Affecting Media Scheduling

• Target market profile
• People reached by different vehicles
• Advertising patterns of competitors
• Capability of medium to convey desired
  information
• Compatibility of product with editorial content

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Media Scheduling Terms_1

• Impressions - the number of people who will be
  exposed to a message placed in one or more media
  vehicles
• Reach - the percentage of the target market
  exposed to the media vehicle
• Frequency - the average number of times a person
  in the target group will be exposed to the vehicle

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Media Scheduling Terms_2

• Gross Rating Points (GRPs) - reach frequency
• Cost per Thousand (CPM) - compares the relative
  cost effectiveness of different media vehicles
  that have different exposure rates it reflects
  the cost to deliver a message to 1000 people

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Media Scheduling How Often?

• Continuous - steady stream throughout year
• Pulsing - varies amount of advertising based on
  when product is in demand (e.g., suntan lotion)
• Flighting - advertising appears in short, intense
  bursts alternative with period of little to no
  activity

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Scheduling Software
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1984 - Apple
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Evaluating Advertising

• Posttesting means conducting research on
  consumers responses to advertising messages they
  have seen or heard
• unaided recall
• aided recall
• attitudinal measures

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Public Relations

• Attempts to influence the attitudes and
  perceptions of consumers, stockholders, and other
  stakeholders toward companies, brands,
  politicians, celebrities, not-for-profit
  organizations
• Do something good, then talk about it

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Objectives of Public Relations

• Introducing new products to manufacturers
• Introducing new products to consumers
• Influencing government legislation
• Enhancing the image of a city, region, or country
• Calling attention to a firms involvement with
  the community

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• When companies introduce new products, they use
  press releases and other PR activities to
  publicize the new product

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Planning a PR Campaign
Develop Objectives
Execute the PR Campaign
Evaluate the Campaign
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PR Campaign Strategy

• Statement of objectives
• Situation analysis
• Specification of target audiences, messages to be
  communicated, specific program elements to be
  used
• Timetable and budget
• Discussion of how the program will be evaluated

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PR Activities

• Press Releases
• Internal PR
• Lobbying
• Speech writing
• Corporate identity
• Media relations
• Sponsorships
• Special events
• Advice and counsel

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Press Release Types

• Timely topics
• Research project stories
• Consumer information

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Press Releases

• Accessing recent press releases press room on
  the web

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Oscar Mayer
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Sponsorships

• Sponsorships are an important part of PR

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Sponsorships

• PR activities through which companies provide
  financial support to help fund an event in return
  for publicized recognition of the companys
  contribution
• Examples
• Olympics
• NASCAR

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Measuring Effectiveness of PR Efforts

• In-house assessment
• Awareness and Preference Studies
• Counting of press clippings
• Impression counts
• Media equivalencies

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Direct Marketing

• Any direct communication to a consumer or
  business recipient that is designed to generate a
  response in the form of an order, a request for
  further information, and/or a visit to a store or
  other place of business for purchase of a product

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Forms of Direct Marketing

• Mail order
• Catalogs
• Direct mail
• Telemarketing
• Direct response television
• Infomercials
• Home shopping networks

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M-Commerce

• Promotional activities transmitted over mobile
  phones and other mobile devices such as personal
  digital assistants (PDAs)
• Prevalent in Europe and Asia

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M-Commerce

• Improvements in mobile phone technology are
  making M-commerce more attractive

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Issues for Discussion_1

• Is advertising bad because it may be untrue and
  manipulative or is it good because it provides
  value to consumers?
• Technology has given consumers more control over
  the advertising they see. How has this affected
  the advertising industry? How can advertising
  respond to this?

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Issues for Discussion_2

• Do you think consumers will respond positively to
  M-commerce? What are the benefits to consumers?
• What is the proper role of PR within an
  organization? Are PR specialists just spin
  doctors?