1. Advertising and Public Relations
Chapter Fifteen
Advertising and Public Relations

2. Advertising and Public Relations
Topic Outline
Advertising
Objectives
Budget
Strategy
Effectives
Public Relations
Role and impact
Tools

3. The Promotion Mix Promotion Mix P4:Promotion Advertising Publicity
Packaging
Direct marketing
Sponsorship
Personal selling
Sales promotion
Public relation
Marketing Mix
P1: Product
P2: Place
P3: Price
P4:Promotion

4. The Marketing Communications Mix
Advertising
The Marketing Communications Mix
Any Paid Form of Nonpersonal Presentation by an Identified Sponsor.
Sales Promotion
Short-term Incentives to Encourage Trial or Purchase.
Personal Selling
Public Relations
Protect and/or Promote Company’s Image/products.
Personal Presentations.
Direct Communications With Individuals to Obtain an Immediate Response.
Direct Marketing

5. Advertising
Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.
U.S. advertisers spend in excess of $175 billion each year.
Advertising is used by:
Business firms
Nonprofit organizations
Professionals
Social Agencies

6. Firm that Assists Companies
Ways to Handle Advertising
Advertising
Departments
in Larger
Companies
Sales Departments in
Small Companies
Advertising Agency
Firm that Assists Companies
in Planning, Preparing,
Implementing and
Evaluating Their
Advertising
Programs.
dr wady

7. MISSION MEDIA The Five Ms Of Advertising money MEEEAGE
MEASUREEMENT
MISSION
MEDIA
The Five Ms
Of Advertising
money
MEEEAGE

8. The meaning of The Five Ms
Of Advertising
What are the advertising objective?
Mission
How much can be spend ?
money
What message should send?
Message
Media
What media should be used?
Measurement
How should the results be evaluated?

9. Major Decisions in Advertising
Developing and Advertising Programs
Figure 1 : Major advertising decisions

10. Setting Advertising Objectives
An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific time
Objectives are classified by primary purpose
Inform
Persuade
Remind
Note to Instructor
This YouTube ad is a bit of a blonde joke ad. It is a persuading ad for Mercedes.

11. Setting Objectives Informative Advertising Persuasive Advertising
Build Primary Demand
Persuasive Advertising
Build Selective Demand
Comparison Advertising
Compares One Brand to Another
Reminder Advertising
Keeps Consumers Thinking
About a Product.

12. Setting Advertising Objectives
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
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.

13. Table 15.1 Possible Advertising Objectives

14. The advertising objectives should emerge from
a thorough analysis of the current marketing situation
If the product class is mature , the company is
the market leader and brand usage is low.
Then the proper objective should be to
stimulate more usage
If the product class is new, the company is not
the market leader But the brand is superior the leader
Then the proper objective is The convince the market of the brands superiority

15. Advertising Budget Methods Factors in Setting the Advertising Budget
Affordable, Percentage of Sales, Competitive-Parity and Objective-and-Task
Product
Differentiation
Stage in the Product
Life Cycle
Factors in Setting the Advertising Budget
Advertising
Frequency
Market
Share
Competition
and Clutter

16. Setting the Advertising Budget
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

17. Developing Advertising Strategy
Advertising strategy is the strategy by which the company accomplishes its advertising objectives and consists of:
Creating advertising messages
Selecting advertising media

18. Click to add title Advertising Strategy Creating Advertising Messages
Plan a Message Strategy
General Message to Be Communicated to Customers
Click to add title
Advertising Strategy
Creating Advertising Messages
1-20
Develop a Message
Focus on
Customer Benefits
Creative Concept
“Big Idea”
Visualization or Phrase
Combination of Both.
Advertising Appeals
Meaningful
Believable
Distinctive

19. Creating the Advertising Message
Advertisements need to break through the clutter:
Gain attention
Communicate
well
Note to Instructor
This Web link is for Microsoft’s new advertising campaign that was launched in 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.

20. Creating the Advertising Message
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 in an effort to break through the clutter and create new avenues for reaching consumers with more engaging messages

21. Creating the Advertising Message
Message strategy
Creative concept
Message execution

22. Creating the Advertising Message
Message strategy is the general message that will be communicated to consumers
Identifies consumer benefits
Note to Instructor
This YouTube Web link is to a funny Southwest Airlines ad. It stresses the need to get away and the low prices the airline offers.

23. Creating the Advertising Message
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

24. Creating the Advertising Message
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.

25. Creating the Advertising Message
Slice of life
Lifestyle
Fantasy
Mood or image
Musical
Personality symbol
Technical expertise
Scientific evidence
Testimonial or endorsement
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.

26. Creating the Advertising Message
Message execution also includes:
Tone
Positive or negative
Attention-getting words
Format
Illustration
Headline
Copy
Note to Instructor
In slideshow view, click on movie icon to launch eTrade video snippet. See accompanying DVD for full video segment

27. Creating the Advertising Message Consumer Generated Messages
YouTube videos
Brand Web site contests
Positives
Low expense
New creative ideas
Fresh perspective on brand
Boost consumer involvement
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.

28. Advertising Strategy Selecting Advertising Media
Step 1. Decide on Reach, Frequency,
and Impact
Step 2. Choosing Among Major Media Types
Advertising Strategy Selecting Advertising Media
1-20
Advertising Strategy Selecting Advertising Media
This CTR relates to the discussion on pp
Step 3. Selecting Specific Media Vehicles
Step 4. Deciding on Media Timing
Step 5. Deciding on geographical
Media allocation
Selecting Advertising Media
In selecting media for ads, advertisers must consider the factors that will influence reception of the message. Not all such factors are under the control of the marketer. Of those that are, the following concepts are important:
Reach. 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. Frequency is a measure of the how many times the average person in the target market is exposed to the message.
Media Impact. Impact refers to the qualitative value of a message exposure through a given medium.
Media Vehicles. Vehicles are specific media within a general category. Thus, “The Tonight Show” is a media vehicle on television, whereas a single magazine, The Economist, is a media vehicle in magazine print media.
Media Timing. Timing involves the how and when of presenting a campaign. Advertisements should support strategic decisions based upon such factors as peak seasons and demand. Also, the pattern of the ads while shown must be considered:
Continuity. This schedules ads evenly within a given period.
Pulsing. This schedules ads unevenly within a given period.

29. Step 1. Decide on Reach, Frequency, and Impact
Selecting Advertising Media
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

30. Step 2. Choosing Among Major Media Types
The major media types are television , the internet , newspaper , direct mail , magazines , radio and outdoor.
Advertisers can also choose from a wide array of new digital media , such as cell phones and other digital devices.

31. Target audience media habits. Product characteristics.
Step 2. Choosing Among Major Media Types
Target audience media habits.
Product characteristics.
Message characteristics.
Cost.

32. Advertising
Step 3
Selecting media vehicles involves decisions presenting the media effectively and efficiently to the target customer and must consider the
message’s:
Impact
Effectiveness
Cost
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

33. Step 3
In selecting specific media vehicles, the media planner must balance media costs against several effectiveness factors such:
The planner should evaluate the media vehicle’s audience quality
The media planner should consider audience engagement
The planner should assess the vehicle's editorial quality

34. Step 4: deciding on media timing
The advertiser must also decide how to schedule the advertising over the course of a year.
Narrowcasting focuses the message on selected market segments
Lowers cost
Targets more effectively
Engages customers better

35. Selecting Advertising Media
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

36. Step 5. Deciding on geographical
Media allocation
The company makes “ notional buys “ when it placed advertising on national TV net or in nationally circulated magazines.
The company makes “ local buys “ when it placed advertising on local newspapers, radio, or outdoor site .

37. Advertising Evaluation
Advertising Program Evaluation
Advertising Evaluation
1-20
Communication Effects
Is the Ad Communicating Well?
Sales Effects
Is the Ad Increasing Sales?

38. Evaluating the Effectiveness and Return on Advertising Investment
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

39. Developing and Advertising Programs Other Advertising Considerations
Organizing for advertising
Agency vs. in-house
International advertising decisions
Standardization
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.

40. Public Relations
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

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

42. 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

43. 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

44. The Role and Impact of Public Relations
Lower cost than advertising
Stronger impact on public awareness than advertising

45. Major Public Relations Tools
News
Speeches
Special events
Written materials
Audiovisual materials
Corporate identity materials
Public service activities
Buzz marketing
Social networking
Mobile tour marketing
Internet

46. Major Public Relations Decisions
Click to add title
Setting Public Relations Objectives
Choosing the Public Relations Messages
and Vehicles
Implementing the Public Relations Plan
Evaluating Public Relations Results
Major Public Relations Decisions
1-20
Major Public Relations Decisions
This CTR relates to the discussion on pp
Public Relations Decisions
Objectives. Objectives are the first order of public relations business. PR must determine what it wants to accomplish and how these objectives support the overall promotion objectives.
Messages. Messages require that the PR department creates the "story" it wants to tell about the company and finds the appropriate media for transmitting it.
Teaching Tip: Students may wonder if editors will be angry that PR people are trying to manipulate them. If PR is open and honest, editors are willing to consider the merits of the message. Of course the company has its point of view -- but that’ legitimate and PR people can provide sources of information that save reporters time and are unavailable elsewhere.
Implementation. Implementation relies as much on the personal working relationships the PR people have with media editors as the content of the stories themselves. Good relations are built on trust over time thus implementation is but one step in the on-going process of media relations.
Teaching Tip: In short, PR people have to do something for editors if they expect editors to do something for them.
Evaluation. Evaluation of PR efforts is difficult because so much PR is designed to support other promotion efforts. Traditional evaluation includes clippings books counting the number of media exposures.