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Chapter 15 - slide 1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Advertising and Public Relations.

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Presentation on theme: "Chapter 15 - slide 1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Advertising and Public Relations."— Presentation transcript:

1 Chapter 15 - slide 1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Advertising and Public Relations

2 Chapter 15 - slide 2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising and Public Relations Topic Outline Advertising –Objectives –Budget –Strategy –Effectives Public Relations –Role and impact –Tools

3 Chapter 15 - slide 3 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Promotion Mix Marketing Mix P1: Product P2: Place P3: Price P4:Promotion Promotion Mix Advertising Publicity Packaging Direct marketing Sponsorship Personal selling Sales promotion Public relation

4 Chapter 15 - slide 4 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Marketing Communications Mix Advertising Any Paid Form of Nonpersonal Presentation by an Identified Sponsor. Sales Promotion Short-term Incentives to Encourage Trial or Purchase. Public Relations Protect and/or Promote Company’s Image/products. Personal Selling Personal Presentations. Direct Marketing Direct Communications With Individuals to Obtain an Immediate Response.

5 Chapter 15 - slide 5 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising is a ny paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. o U.S. advertisers spend in excess of $175 billion each year. Advertising is used by: Business firms Business firms Nonprofit organizations Nonprofit organizations Professionals Professionals Social Agencies Social Agencies Advertising

6 Chapter 15 - slide 6 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall dr wady Ways to Handle Advertising Sales Departments in Small Companies Sales Departments in Small Companies Advertising Departments in Larger Companies Advertising Departments in Larger Companies Advertising Agency Firm that Assists Companies in Planning, Preparing, Implementing and Evaluating Their Advertising Programs. Advertising Agency Firm that Assists Companies in Planning, Preparing, Implementing and Evaluating Their Advertising Programs.

7 Chapter 15 - slide 7 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall MEDIA MEASUREEMENT money MEEEAGE The Five Ms Of Advertising MISSION

8 Chapter 15 - slide 8 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The meaning of The Five Ms Of Advertising Mission money Message Media Measurement What are the advertising objective ? How much can be spend ? What message should send ? What media should be used ? How should the results be evaluated ?

9 Chapter 15 - slide 9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Major Decisions in Advertising Developing and Advertising Programs Figure 1 : Major advertising decisions

10 Chapter 15 - slide 10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Objectives are classified by primary purpose Inform Persuade Remind Setting Advertising Objectives An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific time

11 Chapter 15 - slide 11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Setting Objectives Informative Advertising Build Primary Demand Informative Advertising Build Primary Demand Persuasive Advertising Build Selective Demand Persuasive Advertising Build Selective Demand Comparison Advertising Compares One Brand to Another Comparison Advertising Compares One Brand to Another Reminder Advertising Keeps Consumers Thinking About a Product. Reminder Advertising Keeps Consumers Thinking About a Product.

12 Chapter 15 - slide 12 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising 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 Setting Advertising Objectives

13 Chapter 15 - slide 13 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Table 15.1 Possible Advertising Objectives

14 Chapter 15 - slide 14 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall  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 Chapter 15 - slide 15 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Setting the Advertising Budget Advertising Budget Methods Affordable, Percentage of Sales, Competitive-Parity and Objective-and-Task Factors in Setting the Advertising Budget Product Differentiation Product Differentiation Advertising Frequency Advertising Frequency Competition and Clutter Competition and Clutter Market Share Market Share Stage in the Product Life Cycle Stage in the Product Life Cycle

16 Chapter 15 - slide 16 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising 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 Setting the Advertising Budget

17 Chapter 15 - slide 17 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Advertising strategy is the strategy by which the company accomplishes its advertising objectives and consists of: Creating advertising messages Selecting advertising media Developing Advertising Strategy

18 Chapter 15 - slide 18 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Click to add title Plan a Message Strategy General Message to Be Communicated to Customers Plan a Message Strategy General Message to Be Communicated to Customers Advertising Strategy Creating Advertising Messages Advertising Strategy Creating Advertising Messages Develop a Message Focus on Customer Benefits Develop a Message Focus on Customer Benefits Creative Concept “Big Idea” Visualization or Phrase Combination of Both. Creative Concept “Big Idea” Visualization or Phrase Combination of Both. Advertising Appeals Meaningful Believable Distinctive Advertising Appeals Meaningful Believable Distinctive

19 Chapter 15 - slide 19 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Advertisements need to break through the clutter: Gain attention Communicate well Creating the Advertising Message

20 Chapter 15 - slide 20 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising 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 Creating the Advertising Message

21 Chapter 15 - slide 21 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Message execution Creative concept Message strategy Creating the Advertising Message

22 Chapter 15 - slide 22 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Message strategy is the general message that will be communicated to consumers Identifies consumer benefits Creating the Advertising Message

23 Chapter 15 - slide 23 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising 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 Creating the Advertising Message

24 Chapter 15 - slide 24 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising 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. Creating the Advertising Message

25 Chapter 15 - slide 25 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Creating the Advertising Message Slice of lifeLifestyleFantasy Mood or image Musical Personality symbol Technical expertise Scientific evidence Testimonial or endorsement

26 Chapter 15 - slide 26 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Message execution also includes: Tone –Positive or negative Attention-getting words Format –Illustration –Headline –Copy Creating the Advertising Message

27 Chapter 15 - slide 27 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising YouTube videos Brand Web site contests Positives –Low expense –New creative ideas –Fresh perspective on brand –Boost consumer involvement Creating the Advertising Message Consumer Generated Messages

28 Chapter 15 - slide 28 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Strategy Selecting Advertising Media Step 1. Decide on Reach, Frequency, and Impact Step 1. Decide on Reach, Frequency, and Impact Step 2. Choosing Among Major Media Types Step 3. Selecting Specific Media Vehicles Step 4. Deciding on Media Timing Step 5. Deciding on geographical Media allocation Step 5. Deciding on geographical Media allocation

29 Chapter 15 - slide 29 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Step 1. Decide on Reach, Frequency, and Impact 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 Selecting Advertising Media

30 Chapter 15 - slide 30 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 Chapter 15 - slide 31 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Step 2. Choosing Among Major Media Types Target audience media habits. Product characteristics. Message characteristics. Cost.

32 Chapter 15 - slide 32 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Selecting media vehicles involves decisions presenting the media effectively and efficiently to the target customer and must consider the message’s: Impact Effectiveness Cost Step 3

33 Chapter 15 - slide 33 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall In selecting specific media vehicles, the media planner must balance media costs against several effectiveness factors such: 1.The planner should evaluate the media vehicle’s audience quality 2.The media planner should consider audience engagement 3.The planner should assess the vehicle's editorial quality Step 3

34 Chapter 15 - slide 34 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 Step 4: deciding on media timing

35 Chapter 15 - slide 35 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising 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 Selecting Advertising Media

36 Chapter 15 - slide 36 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Step 5. Deciding on geographical Media allocation 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 Chapter 15 - slide 37 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Evaluation Communication Effects Is the Ad Communicating Well? Communication Effects Is the Ad Communicating Well? Advertising Program Evaluation Sales Effects Is the Ad Increasing Sales? Sales Effects Is the Ad Increasing Sales?

38 Chapter 15 - slide 38 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising 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 Evaluating the Effectiveness and Return on Advertising Investment

39 Chapter 15 - slide 39 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Organizing for advertising –Agency vs. in-house International advertising decisions –Standardization Developing and Advertising Programs Other Advertising Considerations

40 Chapter 15 - slide 40 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 Chapter 15 - slide 41 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Public relations department functions include: Press relations or press agency Product publicity Public affairs Lobbying Investor relations Development Public Relations

42 Chapter 15 - slide 42 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 Chapter 15 - slide 43 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 Chapter 15 - slide 44 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Public Relations Lower cost than advertising Stronger impact on public awareness than advertising The Role and Impact of Public Relations

45 Chapter 15 - slide 45 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Public Relations Major Public Relations Tools NewsSpeechesSpecial events Written materials Audiovisual materials Corporate identity materials Public service activities Buzz marketing Social networking Mobile tour marketing Internet

46 Chapter 15 - slide 46 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Click to add title Setting Public Relations Objectives Choosing the Public Relations Messages and Vehicles Choosing the Public Relations Messages and Vehicles Implementing the Public Relations Plan Evaluating Public Relations Results Major Public Relations Decisions


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