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16
CHAPTER
Advertising and
Public Relations
Chapter Objectives
1 Identify the three major
advertising objectives and
the two basic categories of
advertising.
2 List the major advertising
strategies.
3 Describe the process of
creating an advertisement.
4 Identify the major types 7 Explain the roles of crossof advertising appeals and promotion, public
discuss their uses.
relations, publicity, and
ethics in an organization’s
List
and
compare
the
5
promotional strategy.
major advertising media.
Outline the organization
6 of the advertising
function and the role of
an advertising agency.
8
Explain how marketers
assess promotional
effectiveness.
CHAPTER 16 Advertising and Public Relations
ADVERTISING
• Advertising Paid, non- personal communication
through various media about a business firm, not-forprofit organization, product, or idea by a sponsor identified
in a message that is intended to inform or persuade
members of a particular audience.
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.
CHAPTER 16 Advertising and Public Relations
OBJECTIVES OF ADVERTISING
• Informative advertising Promotion that seeks to develop initial demand
for a good, service, organization, person, place, idea, or cause.
• Persuasive advertising Promotion that attempts to increase demand for an
existing good, service, organization, person, place, idea, or cause.
• Reminder advertising Advertising that reinforces previous promotional
activity by keeping the name of a good, service, organization, person, place,
idea, or cause before the public.
• Advertisers coordinate advertising objectives with the product’s stage in
the product life cycle.
CHAPTER 16 Advertising and Public Relations
ADVERTISING STRATEGIES
• Advertising is a means of bringing buyers and sellers together.
• Marketers often combine several strategies to meet their objectives.
COMPARATIVE ADVERTISING
• Comparative advertising Advertising strategy that emphasizes messages
with direct or indirect promotional comparisons between competing brands.
• Market leaders seldom acknowledge competing brands.
CELEBRITY TESTIMONIALS
• Use of celebrity spokespeople for products.
• Can build brand equity but can hurt brand if celebrity is hit by scandal.
CHAPTER 16 Advertising and Public Relations
RETAIL ADVERTISING
• Includes all advertising by retail stores that sell goods or services directly
to the consuming public.
• Cooperative advertising Strategy in which a retailer shares advertising
costs with a manufacturer or wholesaler.
INTERACTIVE ADVERTISING
• Involves two-way promotional messages transmitted through
communication channels that induce message recipients to participate
actively in the promotional effort.
• Changes balance between marketers and consumers.
CHAPTER 16 Advertising and Public Relations
ADVERTISING MESSAGES
• Advertising campaign Series of different but related ads that use a single
theme and appear in different media within a specified time period.
ADVERTISING APPEALS
• Appeals can provide information or appeal to emotion.
• Fear appeals—imply or state that incorrect buying decisions could lead to
bad consequences.
• Humor seeks to create positive mood related to good or service.
• Ads based on sex can be attention-getting, but they boost recall only if the
appeal is appropriate to the type of product.
CHAPTER 16 Advertising and Public Relations
DEVELOPING AND PREPARING ADS
• Goals:
• Gain attention.
• Inform and/or persuade.
• Lead to purchase or other desired action.
• After idea conception, ad must be refined from rough
sketch to finished layout.
CREATING INTERACTIVE ADS
• Lively, engaging content.
• Use of advertising in games, or advergames.
• Banners are the most common form of online advertisement.
• Use of pop-ups is declining; adware seen as disreputable.
CHAPTER 16 Advertising and Public Relations
MEDIA SELECTION
Broadcast Television
Cable Television
Radio
Newspaper
Direct Mail
Magazines- Consumer/Business
Outdoor
Internet
CHAPTER 16 Advertising and Public Relations
MEDIA SCHEDULING
• After selecting media, marketers determine the most effective timing and
sequence for a series of advertisements.
• Influenced by seasonal sales patterns, repurchase cycles, and competitors’
activities.
• Measure effectiveness in three ways:
• Reach—the number of people exposed to an advertisement.
• Frequency—the number of times an individual is exposed to an
advertisement. Minimum of three exposures is recommended.
• Gross rating point—the product of the reach times the frequency.
CHAPTER 16 Advertising and Public Relations
ORGANIZATION OF THE ADVERTISING
FUNCTION
• Organizational arrangements vary from company to company.
• Usually organized as a staff department reporting to a vice president of
marketing.
• Major tasks include include advertising research, design, copywriting,
media analysis, and in some cases, sales and trade promotion.
ADVERTISING AGENCIES
• Advertising agency Firm whose marketing specialists help advertisers
plan and prepare advertisements.
• May offer creativity and objectivity that is difficult to maintain in an
internal department.
CHAPTER 16 Advertising and Public Relations
PUBLIC RELATIONS
• Firm’s communications and relationships with its various publics,
including customers, employees, stockholders, suppliers, and government
agencies.
• Serves broad objectives by enhancing prestige and image of all parts of the
organization.
• PR department is link between the firm and the media.
• 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.
• 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.
CHAPTER 16 Advertising and Public Relations
CROSS-PROMOTION
• Cross-promotion Promotional technique in which marketing partners
share the cost of a promotional campaign that meets their mutual needs.
• Provide greater benefits in return for both partners.
• Example: Cingular Wireless promoting artists such as Coldplay, Gwen
Stefani, and Alicia Keys.
• Cingular sells more ringtones because it features these artists.
• Artists gain greater exposure.
CHAPTER 16 Advertising and Public Relations
MEASURING PROMOTIONAL EFFECTIVENESS
• Promotional prices vary widely.
• Because of expense, advertising professionals must demonstrate how
promotional programs contribute to increased sales and profits.
MEASURING ADVERTISING EFFECTIVENESS
• Media research—assesses how well particular medium delivers 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.
• Pretesting—assessing an advertisement’s likely effectiveness before it is
completed.
• Posttesting—assessing advertisement’s effectiveness after it
has appeared.
CHAPTER 16 Advertising and Public Relations
MEASURING PUBLIC-RELATIONS
EFFECTIVENESS
• Count media placements, conducting public opinion polls.
• Conduct focus groups, interview opinion leaders,
before-and-after polls.
EVALUATING INTERACTIVE MEDIA
• Hits—user requests for a file.
• Impressions—number of times a viewer sees an ad.
• Click-throughs—user clicks ad for more information.
• View-through—measure response over time.
CHAPTER 16 Advertising and Public Relations
ETHICS IN NONPERSONAL SELLING
ADVERTISING ETHICS
• Advertising to children, advertising alcohol, and the use of
cookies on Web sites are all areas of ethical controversy.
• Puffery—exaggerated claims of a product’s superiority or the
use of subjective or vague statements that may not be literally true.
• Uniform Commercial Code distinguishes puffery from
specific, quantifiable statements.
ETHICS IN PUBLIC RELATIONS
• Issues include performing services for companies that produce unsafe
products.
• Public Relations Society of America’s Code of Professional Standards
prohibits promoting products or causes widely known to be harmful.