Chapter 16 Advertising and Public Relations Principles of Contemporary Marketing Kurtz & Boone Chapter 16 Advertising and Public Relations

Chapter Objectives Identify the three major advertising objectives and the two basic categories of advertising. List the major advertising strategies. Describe the process of creating an advertisement. Identify the major types of advertising appeals and discuss their uses. Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Chapter Objectives List and compare the major advertising media. Outline the organization of the advertising function and the role of an advertising agency. Explain the roles of cross-promotion, public relations, publicity, and ethics in an organization’s promotional strategy. Explain how marketers assess promotional effectiveness. Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Types of Advertising Product advertising - Nonpersonal selling of a particular good or service Institutional advertising - Promotion of a concept, an idea, a philosophy, or the goodwill of an industry, company, organization, person, geographic location, or government agency Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Objectives of Advertising Informative advertising Persuasive advertising Reminder advertising Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

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Advertising Strategies Comparative advertising Celebrity testimonials Retail advertising Interactive advertising Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

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Advertising Appeals Fear appeals Humor in advertising messages Ads based on sex Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Developing and Preparing Ads Goals: Gain attention and interest Inform or persuade Lead to purchase or other desired action After conceiving an idea, ads must be refined from rough sketch to finished layout Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

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Media Scheduling Setting the timing and sequence for a series of advertisements Influenced by a variety of factors: Seasonal sales patterns Repurchase cycles Competitors’ activities Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

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Public Relations Firm’s communications and relationships with its various publics, including customers, employees, stockholders, suppliers, and government agencies Serves broader objectives than those of other components of promotional strategy The PR department links the firm and the media The Internet gives PR representatives more direct access to the public Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Marketing and Nonmarketing Public Relations Nonmarketing public relations - A company’s messages about general management issues Marketing public relations (MPR) - Narrowly focused public relations activities that directly support marketing goals Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Publicity and Cross-Promotion Publicity - Nonpersonal stimulation of demand for a good, service, place, idea, person, or organization by unpaid placement of significant news regarding the product in a print or broadcast medium Cross-promotion - Promotional technique in which marketing partners share the cost of a promotional campaign that meets their mutual needs Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Measuring Advertising Effectiveness Media research - Assesses how well a particular medium delivers a message, where and when to place the message, and the size of the audience Message research - Tests consumer reactions to an advertisement’s creative message through pretesting and posttesting Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Measuring Public Relations Effectiveness The simplest and least costly method Whether the target audience received, paid attention to, understood, and retained the messages directed to them Count the number of media placements and gauge the extent of media coverage Conduct focus groups, interview opinion leaders, and more detailed and extensive opinion polls Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Advertising Ethics Advertising to children Insertion of product messages in media programs without full disclosure of the marketing relationship to audiences Use of cookies in online advertising Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.

Puffery and Deception Puffery - Exaggerated claims of a product’s superiority or the use of subjective or vague statements that may not be literally true The Uniform Commercial Code standardizes sales and business practices throughout the United States Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.