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Advertising and Public Relations
Chapter 15
Prepared by
Deborah Baker
Texas Christian University
Chap. 15 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
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Learning Objectives
1. Discuss the effect of advertising on market
share and consumers.
2. Identify the major types of advertising.
3. Discuss the creative decisions in
developing an advertising campaign.
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Learning Objectives (continued)
4. Describe media evaluation and selection
techniques.
5. Discuss the role of public relations in the
promotional mix.
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Learning Objective
On Line
http://www.redbull.com
Discuss the effect
of advertising on
market share and
consumers.
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Advertising
 U.S. advertising spending exceeds
$240 billion per year
 Industry employs only 284,000
 Ad budgets of some firms exceed
over $2 billion per year—over
$6 million per day!
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Top Ten Leaders by U.S.
Advertising Spending
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Advertising and Market Share
 New brands spend proportionately more
for advertising than old ones.
 A certain level of exposure is needed to
affect purchase habits.
 Beyond a certain level, diminishing
returns set in.
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Advertising and the Consumer
 Average U.S. citizen is exposed to
hundreds of ads each day.
 Advertising may change a consumer’s
attitude toward a product.
 Advertising can affect consumer
ranking of brand attributes.
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Learning Objective
Identify the major
types of advertising.
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Major Types of Advertising
Institutional
Advertising
Designed to enhance a company’s
image rather than promote a
particular product.
Product
Advertising
Designed to tout the benefits of a
specific good or service.
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Major Types of Advertising
Institutional
Advertising
Enhance
corporation’s identity
Advocacy
advertising
Pioneering
Product
Advertising
Competitive
Comparative
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Product Advertising
On Line
http://www.pizzahut.com
http://www.papajohns.com
Pioneering
Competitive
• Stimulates primary demand for
new product or category.
• Used in the PLC introductory stage.
• Influence demand for brand in the
growth phase of the PLC.
• Often uses emotional appeal.
• Compares two or more competing
Comparative
brands’ product attributes.
• Used if growth is sluggish, or if
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competition is strong.
©2004 South-Western/Thomson Learning
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Learning Objective
Discuss the
creative decisions
in developing an
advertising
campaign.
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Advertising Campaign
A series of related
advertisements focusing
on a common theme,
slogan, and set of
advertising appeals.
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Steps in Creating an
Advertising Campaign
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Determine the
advertising objectives.
Make creative decisions.
Make media decisions.
Evaluate the campaign.
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Setting Objectives:
The DAGMAR Approach
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Goal of
Advertising
Objectives
Define
Target Audience
Define the Time
Frame for Change
Define Desired
Percentage
Change
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Creative Decisions
Identify
Product Benefits
Components
of
Creative
Decisions
Develop and Evaluate
Advertising Appeals
Execute
the Message
Evaluate the
Campaign’s Effectiveness
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Identify Product Benefits
 “Sell the Sizzle, not the Steak”
 Sell product’s benefits,
not its attributes
 A benefit should answer
“What’s in it for me?”
 Ask “So?” to determine
if it is a benefit
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Advertising Appeal
Reason for a person
to buy a product.
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Common Advertising Appeals
Profit
Product saves, makes, or protects money
Health
Appeals to body-conscious or health seekers
Love or romance
Used in selling cosmetics and perfumes
Fear
Social embarrassment, old age, losing health
Admiration
Reason for use of celebrity spokespeople
Convenience
Used for fast foods and microwave foods
Fun and pleasure
Key to advertising vacations, beer, parks
Vanity and egotism
Environmental
Consciousness
Used for expensive or conspicuous items
Centers around environmental protection
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Unique Selling Proposition
Desirable, exclusive, and
believable advertising
appeal selected as the
theme for a campaign.
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Executing the Message
Scientific
Slice-of-Life
Musical
Demonstration
Mood or
Image
Lifestyle
Common
Executional
Styles
Real/
Animated
Product
Symbols
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Spokesperson/
Testimonial
Fantasy
Humorous
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Learning Objective
Describe media
evaluation and
selection techniques.
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Major Types of Advertising Media
Newspapers
Magazines
Radio
Television
Outdoor Media
Internet
Alternative Media
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Advertising Spending for 2000
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Newspapers
Advantages
Disadvantages
 Year-round readership
 Limited demographic
selectivity
 Geographic selectivity
 Immediacy
 High individual market
coverage
 Short lead time
 Little color
 May be expensive
 Low pass-along rate
 Clutter
 Mass market medium
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Cooperative Advertising
An arrangement in which
the manufacturer and the
retailer split the costs
of advertising the
manufacturer’s brand.
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Magazines
Advantages
Disadvantages
 Good reproduction
 Higher cost per contact
 Demographic
selectivity
 Long-term advertiser
commitments
 Regional/local
selectivity
 Slow audience build-up
 Long advertising life
 Limited demonstration
capabilities
 High pass-along rate
 Lack of urgency
 Long lead time
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Radio
On Line
http://www.radioindustry.about.com
Disadvantages
Advantages
 Selectivity and

audience segmentation

 Immediate and portable

 Geographic flexibility
 Entertainment
carryover
 Short-term ad
commitments
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No visual treatment
Short advertising life
High frequency to
generate retention
 Commercial clutter
 Background
distractions
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On Line
http://www.fox.com
http://www.abc.com
Advantages
 Wide, diverse audience
 Low cost per thousand
 Creative and
demonstrative
 Immediacy of messages
 Entertainment carryover
 Demographic selectivity
with cable
Chap. 15 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
Television
Disadvantages
 Short life of message
 Expensive with high
campaign cost
 Little demographic
selectivity with network
 Long-term advertiser
commitments
 Long lead times
 Clutter
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Outdoor Media
Advantages
 High exposure
frequency
Disadvantages
 Short message
 Moderate cost
 Lack of demographic
selectivity
 Flexibility
 High “noise” level
 Geographic selectivity
 Broad, diverse market
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On Line
http://www.bannerite.com
http://www.flash-banner-design.com
Advantages
 Fast growing
Internet
Disadvantages
 Difficult to measure ad
effectiveness and ROI
 Ability to reach narrow
 Ad exposure relies on
target audience
“click through”
 Short lead time
 Not all consumers
 Moderate cost
have access to internet
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On Line
http://www.looksmart.com
http://www.yahoo.com
Examples of Alternative Media
Fax Machines
Video Shopping Carts
Computer
Screen Savers
Interactive Kiosks
Ads in
Movies and Videos
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Media Selection Considerations
Cost per
Contact
The cost of reaching one
member of the target market.
Reach
The number of target consumers
exposed to a commercial at least
once during a time period.
Frequency
The number of times an individual
is exposed to a message during a
time period.
Audience
Selectivity
The ability of an advertising
medium to reach a precisely
defined market.
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Cable TV Network Viewer Profiles
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Media Scheduling
Continuous
Media Schedule
Advertising is run steadily
throughout the period.
Flighted
Media Schedule
Advertising is run heavily every
other month or every two weeks.
Pulsing
Media Schedule
Advertising combines continuous
scheduling with flighting.
Seasonal
Media Schedule
Advertising is run only when the
product is likely to be used.
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Learning Objective
Discuss the role of
public relations in
the promotional mix.
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Public Relations
The Role of
Public Relations
Executes
programs to gain
public
acceptance
Evaluates public
attitudes
Identifies issues
of public concern
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Functions of Public Relations
Press Relations
Product Publicity
Corporate Communication
Public Affairs
Lobbying
Employee and Investor Relations
Crisis Management
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Public Relations Tools
On Line
http://www.bmwfilms.com
New Product Publicity
Product Placement
Consumer Education
Event Sponsorship
Issue Sponsorship
Internet Web Sites
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Crisis Management
A coordinated effort to
handle the effects of
unfavorable publicity or of
an unfavorable event.
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