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
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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
• 2004 over 265 billion USD spent on advertising
• Biggest spenders Automobiles, financial
  services, food and beverages and retail.
• What could be some threats to advertising?

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Types of Advertising

• Product advertising - message focuses on a
  specific product or service
• Category advertising (Got Milk? The other white
  meat, etc.)
• Brand advertising
• Institutional advertising - message focuses on
  activities, personality, or point of view of a
  company
• advocacy advertising (2004 MTVs choose or
  lose campaign)
• public service advertisements (anti-smoking
  anti-drugs drunk driving, etc.)

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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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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
• Creative boutiques
• Specialize in few options e.g. Internet
  advertising
• full-service

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Largest Ad Agencies

• J. Walter Thompson
• Leo Burnett Worldwide
• McCann-Erickson Worldwide
• BBDO Worldwide
• Grey Worldwide
• Ogilvy Mather
• Foote Cone Belding
• Worldwide billings exceed several billion USD

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The Body of Campaign Creation

• Account management
• Campaign strategy and client relations
• Creative services
• Visualization and writing of the ads
• Research
• Market and Advertising Research
• Media planning
• Planning, buying and placing the campaign

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Developing the Campaign

• Identify the Target Market
• Establish objectives
• What should the campaign achieve
• Budget (in cooperation with client)
• Prepare creative brief
• Design Ad Campaign
• Choose Media and Schedule
• Pretest Campaign
• Full rollout

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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 (e.g.
  Think Small)
• Creatives
• art directors
• copywriters
• photographers

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Advertising Appeals

• Reasons Why (USP) (e.g. MMs melt in your mouth,
  not in your hand)
• Comparative Advertising (e.g. Coke Pepsi DHL,
  Fedex and UPS etc.)
• Demonstration (e.g. kitchen appliances, vacuum
  cleaners, etc.)
• Testimonial (e.g. dentists endorsing toothpastes,
  etc.)

• Slice-of-Life (e.g. breakfast cereal bars on the
  go)
• Lifestyle (e.g. Cars, clothes, personal grooming
  products)
• Fear (e.g. Insurance, drugs)
• Sex (e.g. Victorias Secret Calvin Klein etc.)
• Humor (e.g. Dodge Hemmi Sonic etc.)
• Slogans and Jingles (e.g. Your friendly
  neighborhood agent With Allstate you are in
  good hands, etc.)

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Step 4 Pretest What Will Be Said

• Copy testing measures ad effectiveness
• Concept testing
• Test commercials
• Finished testing
• Focus Groups
• Projective Techniques
• Limited area surveys

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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
• Highly complicated numbers game
• Hundreds of media options from mass media to
  video games, DVDs, placements,MP3 players, cell
  phones, cable channels, etc.

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Television

• Pros
• Creative and flexible (see hear)
• 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
• General decline in reading habits

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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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Internet Advertising

• Banners (less that 1 click through rate)
• Buttons (small banners anywhere in the web page)
• Search engine and directory listings

• Pop-up ads (open a separate window)
• Email
• permission marketing (opt out options given by
  marketer)
• Spamming (junkmail on the internet)

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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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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 at least once.
• Frequency the average number of times a person
  in the target group will be exposed to the
  vehicle in a period

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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
  (products which we buy on a regular basis)
• 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 periods of little to no
  activity

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Evaluating Advertising

• Posttesting means conducting research on
  consumers responses to advertising messages they
  have seen or heard
• unaided recall (recall in the absence of a cue)
• aided recall (recall with a cue provided)
• attitudinal measures (like / dislike)

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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 (e.g. Mel Gibsons film The
  Passion
• Do something good, then talk about it
• Why PR third party reporting is seen to be
  unbiased and therefore credible
• Create a crisis management plan

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Some well known PR crises

• Tylenol and product tampering
• Wendys and finger in chili
• Pepsi Coke pesticides in cola (India)
• Union Carbide in India hundreds of deaths due
  to gas leak
• Vioxx heart attack and stroke victims
• Can you think of more?

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Objectives of Public Relations

• Introducing new products
• Influencing government legislation (lobbying)
• Enhancing the image of a city, region, or country
  (Mauritius, Singapore So easy to enjoy, so
  hard to forget)
• Calling attention to a firms involvement with
  the community (e.g. sponsoring sporting events,
  rock concerts, special events, etc.)

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Planning a PR Campaign

• Develop objectives (e.g. International Apple
  Institute An apple a day)
• Execute the campaign
• Evaluate the campaign
• Problems with gauging effectiveness

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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 (new products, new findings, etc.)
• Internal PR (newsletters, close-circuit TV,
  employee awards, etc.)
• Lobbying (influencing govt. officials to vote a
  certain way on legislation, initiate new
  legislation, etc.)
• Speech writing (write speeches for senior
  executives annual meetings, industry meetings,
  etc.)
• Corporate identity (logos, symbols, stationery
  design, etc. for companies, identity manuals)
• Media relations (create and maintain access with
  reporters to be used when needed)
• Sponsorships (sporting events, rock concerts,
  etc.)
• Special events (e.g. visits of dignitaries to
  plant, planning a christmas party, etc,)
• Advice and counsel (e.g. to top management on
  communication issues)

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Measuring Effectiveness

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

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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 (3 of overall retail US sales)
• Catalogs (e.g. Eddie Bauer, Lands End, Dell,
  Gateway, JC Penney, Neiman Marcus, etc.)
• Direct mail (offers a specific product through
  mail at one point in time can be personalized)
• Telemarketing (cheap and easy 1 in 6 Americans
  cannot resist a telemarketing pitch more
  effective in B2B selling national Do-not-call
  registry)
• Direct response television
• Infomercials
• Home shopping networks (QVC and HSN)
• Top selling categories diet and health products,
  kitchen appliances, exercise equipment and music
  CDs)

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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
• Problems of spim
• What does the future hold?
• Have you seen Minority Report?