1. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 16: Advertising and Public Relations Pride/Ferrell Foundations of Marketing Fourth Edition Prepared by Milton Pressley University of New Orleans

2. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Objectives 1.Describe the nature and types of advertising. 2.Explain the major steps in developing an advertising campaign. 3.Identify who is responsible for developing advertising campaigns. 4.Recognize the tools used in public relations. 5.Understand how public relations is used and evaluated.

3. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Advertising Paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media

4. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Types of Advertising Institutional advertising – Promotes organizational images, ideas, and political issues Advocacy advertising – Promotes a company’s position on a public issues Product advertising – Promotes products’ uses, features, and benefits Pioneer advertising – Tries to stimulate demand for a product category with information about the product Competitive advertising – Tries to stimulate demand for a product with information about the product’s advantages Comparative advertising – Compares the brand to one or more other brands Reminder advertising – Reminds customers about an established brand’s uses, characteristics, and benefits Reinforcement advertising – Assures users they chose the right brand

5. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Advertising Campaign An advertising campaign involves designing a series of advertisements and placing them in various media in order to reach a particular target audience.

6. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Eight Steps to Developing an Advertising Campaign Designing a series of advertisements and placing them in various advertising media to reach a particular target audience

7. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Identifying and Analyzing the Target Audience Target audience - The group of people at whom advertisements are aimed Target Audience LG produces a front-loading, high-efficiency steam washer. Who is the target audience for this ad?

8. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Steps in Developing an Advertising Campaign Advertising Objectives - What the firm hopes to accomplish with the campaign Stated clearly Be precise In measurable terms Advertising Platform - Basic issues or selling points to be included in the advertising campaign

9. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Advertising Platform An advertising platform normally contains multiple issues or selling points.

10. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Advertising Appropriation Is the total amount of money a marketer allocates for advertising during a specific period of time. Is the advertising budget for a specific period

11. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Advertising Appropriation

12. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Determining the Advertising Appropriation Objective-and-task approach - Budgeting for an advertising campaign by determining its objectives and then calculating the cost of all the tasks needed to attain them Percent-of-sales approach - Budgeting for an advertising campaign by multiplying the firm’s past or expected sales by a standard percentage Competition-matching approach - Budgeting for an advertising campaign by trying to match competitors’ ad outlays Arbitrary approach - Budgeting for an advertising campaign as specified by a by high- level executive in the firm

13. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Advertising Appropriation

14. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Developing the Media Plan Specifies media vehicles and schedule for running the advertisements

15. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Advantages and Disadvantages of Major Advertising Media

16. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Creating the Advertising Message Copy - Storyboard Artwork - Illustrations - Layout Components of a Print Ad This Neutrogena ad contains all of the major components of a print advertisement.

17. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Artwork Black-and-White vs. Color This ad highlights the importance of using color when advertising certain products.

18. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Executing the Campaign Execution of an advertising campaign requires extensive planning and coordination because many tasks must be completed on time and many people and firms are involved.

19. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Evaluating Advertising Effectiveness Pretest - Evaluation of ads performed before a campaign begins Consumer jury - A panel of a product’s actual or potential buyers who pretest ads Posttest - Evaluation of advertising effectiveness after the campaign

20. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Evaluating Advertising Effectiveness (cont’d) Recognition test - Respondents are shown the actual advertisement and asked whether they recognize it Unaided recall test - Respondents identify advertisements they have seen recently but are not shown any clues to help them remember Aided recall test - Similar to unaided recall tests but respondents are shown a list of products, brands, company names or trademarks to jog their memories

21. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Public Relations Communication efforts used to create and maintain favorable relations between an organization and its stakeholders Annual Reports Annual reports, when appropriately designed, can generate favorable public relations.

22. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Tools: News (Press) Release A short piece of copy publicizing an event or a product Press Release Press releases are often used to spread news about a company or its products.

23. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Other Publicity Tools Feature article – A manuscript of up to 3,000 words prepared for a specific publication Captioned photograph – A photo with a brief description of its contents Press conference – A meeting used to announce a major news event

24. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. After Reviewing This Chapter You Should: Know the nature and types of advertising. Understand the major steps in developing an advertising campaign. Be able to identify who is responsible for developing advertising campaigns. Recognize the tools used in public relations. Understand how public relations is used and evaluated.

25. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Key Concepts Advertising Institutional Advertising Advocacy Advertising Product advertising Pioneer advertising Competitive advertising Comparative advertising Reminder advertising Reinforcement advertising Advertising campaign Target audience Advertising platform Advertising appropriation Objective-and-task approach Percent-of-sales approach Competition-matching approach Arbitrary approach Media plan Cost comparison indicator Regional issues Copy Storyboard Artwork Illustrations Layout Pretest Consumer jury Posttest

26. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Key Concepts (cont’d) Recognition test Unaided recall test Public relations Publicity News release Feature article Captioned photograph Press conference