Download Chapter 15

Priciples of Marketing
by Philip Kotler and Gary Armstrong
Chapter 15
Advertising and Public Relations
PEARSON
Objective Outline
1
2
Advertising
Define the role of advertising in the promotion mix.
Setting Advertising Objectives
Setting the Advertising Budget
Developing Advertising Strategy
Evaluating Advertising Effectiveness and the
Return on Advertising Investment
Other Advertising Considerations
Describe the major decisions involved in developing
an advertising program.
Objective Outline
3
Public Relations
The Role and Impact of PR
Define the role of PR in the promotion mix.
Major Public Relations Tools
4
Explain how companies use PR to communicate with
their publics.
Advertising
 Advertising is any paid form of nonpersonal
presentation and promotion of ideas, goods, or
services by an identified sponsor.
 Marketing management must make four
important decisions when developing an
advertising program: setting advertising
objectives, setting the advertising budget,
developing advertising strategy (message
decisions and media decisions), and evaluating
advertising campaigns.
Setting Advertising Objectives
• It’s used heavily when introducing a new-product
category.
Informative
 An advertising
objective is a specific
• In this case, the objective is to build primary
advertising
communication
task to be accomplished with
demand.
specific target audience during a specific period
of time. • It is important for mature products; it helps to
Reminder • It becomes more important as competition increases.
Persuasive
maintain customer relationships and keep
advertising

Advertising
objectives
can beobjective
classified
their
•
Here,
the company’s
is to by
build
selective
advertising
consumers thinking about the product.
demand.
primary purpose─to inform, persuade, or remind.
Comparative
advertising
• Some persuasive advertising has become
comparative advertising (or attack advertising), in
which a company directly or indirectly compares its
brand with one or more other brands.
Setting the Advertising Budget
• After determining its advertising objectives, the company
next sets its advertising budget─The dollars and other
resources allocated to a product or a company advertising
program─for each product.
• A brand’s advertising budget often depends on its stage in the
product life cycle.
• New products typically need relatively large advertising
budgets to build awareness and to gain consumer trial.
• Market share also impacts the amount of advertising needed:
• Because building the market or taking market share from
competitors requires larger advertising spending than does
simply maintaining current share, low-share brands usually
need more advertising spending as a percentage of sales.
Developing Advertising Strategy
 Advertising strategy is the strategy by which the
company accomplishes its advertising objectives.
It consist of two major elements: creating
advertising messages and selecting advertising
media.
Slice of life
Creating the Advertising
Message
Testimonial
evidence or
Lifestyle
endorsement
Message
Strategy
Breaking Through the Merging Advertising
Message Execution and Entertainment
Clutter
Consumer-Generated
• The first stepMessages
in creating
effective
advertising
• To
break through
the clutter, many
Scientific
messages
is to plan
a clutter
message
strategy—the
generaltoFantasy
marketers
have subscribed
a new
• • IfThe
allevidence
this
approach,
advertising
style,
tone,
words,
bothers
and
message
that will
communicated
consumers.
merging
of to
advertising
and
some
format
used
foradvantage
executing
itbealso
causes
advertising
huge
•consumers,
Taking
ofantoday’s
interactive
• headaches
Thus,
developing
an effective
message dubbed
strategy“Madison &
entertainment,
message.
for advertisers.
technologies,
many companies are now
begins with identifying customer
Vine.” benefits that can be
tapping consumers for message ideas or
used as advertising appeals.
• Madison & Vine is a term has come to
actual ads.
• The advertiser must nextrepresent
develop athe
compelling
merging of advertising
Technical
Mood or and
creative
concept—or bigentertainment
idea—that will
bring
thetoimage
in an
effort
break
expertise
message strategy to life in
a distinctive
and and create new
through
the clutter
memorable way.
avenues for reaching customers with
more engaging messages.
Personality
Musical
symbol
Selecting Advertising Media
Determining
Selecting
Specific media selection are (1)
Reach,
 The major steps
in Frequency,
advertising
Choosing
among
Deciding
on Media
Media
Vehicles
and
Impact
determining onMajor
reach,Media
frequency, and impact; (2)
Timing
Types
choosing
major
types; (3)
• Reach isamong
a measure
of media
the percentage
of selecting specific
• major
Aninadvertiser
must
also
decide
how
to
•The
In
selecting
specific
media
vehicles,
media
people
the
target
market
who
are
exposed
vehicles;
and
(4)
choosing
media
timing.
•media
media
types
are
television,
the
advertising
over
the
course
mustthe
balance
media
costs
against
toplanners
theschedule
adnewspapers,
campaign
during
amail,
given
period
of of a
Internet,
direct
magazines,
year.
several
effectiveness factors.
time.
radio,
andmedia
outdoor.
•• Most
do some
advertising.
First, firms
thea planner
should
the
• Frequency
is
measure
ofseasonal
howevaluate
many
times
Finally,
the advertiser
mustquality.
chooseisthe pattern
media person
vehicle’s
the• average
in audience
the target
market
the
ads.
• of
Second,
the
media planner should
exposed
to the
message.
• Continuity
means
scheduling
consider
audience
engagement.
• The advertiser
also must
determine
the ads evenly
within
a given should
period.
• Third,
theimpact—the
planner
assess the
desired
media
qualitative
value
• Pulsing
means
scheduling
unevenly
vehicle’s
editorial
quality.
of message
exposure
through
a givenads
medium.
over a given time period.
Evaluating Advertising Effectiveness and
the Return on Advertising Investment
 Return on advertising investment is the net return on
advertising investment divided by the costs of the
advertising investment.
 Measuring the communication effects of an ad or ad
campaign tells whether the ads and media are
communicating the ad message well.
 Advertisers have gotten pretty good at measuring the
communication effects of their ads and ad campaigns.
 However, sales and profit effects of advertising are often
much harder to measure.
Other Advertising Considerations
 In developing advertising strategies and programs, the
company must address two additional questions.
• How will the company organize its advertising function—
who will perform which advertising tasks?
• How will the company adapt its advertising strategies and
programs to the complexities of international markets?
Organizing for Advertising
 Advertising agency is a marketing services firm that
assists companies in planning, preparing, implementing,
and evaluating all or portions of their advertising
programs.
 Most large advertising agencies have the staff and
resources to handle all phases of an advertising campaign
for their clients, from creating a marketing plan to
developing ad campaigns and preparing, placing, and
evaluating ads and other brand content.
International Advertising Decisions
The most basic issue concerns the degree to
which global advertising should be adapted to
the unique characteristics of various country
markets.
In recent years, the increased popularity of
online social networks and video sharing has
boosted the need for advertising
standardization for global brands.
Standardization produces many benefits—
lower advertising costs, greater global
advertising coordination, and a more consistent
worldwide image.
But it also has drawbacks. Most importantly, it
ignores the fact that country markets differ
greatly in their cultures, demographics, and
economic conditions.
International Advertising Decisions
Special
problems
Advertising media costs and availability differ vastly
from country to country.
Many countries have extensive systems of laws
restricting how much a company can spend on
advertising, the media used, the nature of advertising
claims, and other aspects of the advertising program.
Thus, although advertisers may develop global strategies
to guide their overall advertising efforts, specific
advertising programs must usually be adapted to meet
local cultures and customs, media characteristics, and
regulations.
Public Relations
Press
Creating and placing newsworthy information in
relations
Public relations
(PR) build good relations with
the news media to attract attention to a person,
or
thepress
company’s
various
publics by obtaining
product,
or service.
agency
favorable publicity; build up a good corporate
image; andMaintaining
handle orrelationships
head off with
unfavorable
Product
Investor
shareholders and
Publicizing
specific
products.
rumors, stories,
events.community.
publicity
relations
others inand
the financial
 PR departments may perform any or all of the
Working
with donors or members of nonprofit
following
functions:
Public
Building
and maintaining national or local
Developm
affairs
ent
Lobbying
organizations to gain financial or volunteer
community relationships.
support.
Building and maintaining relationships with
legislators and government officials to influence
legislation and regulation.
The Role and Impact of PR
 Public relations can have a strong impact on public
awareness at a much lower cost than advertising can.
 Rather, it pays for a staff to develop and circulate
information and manage events.
 Despite its potential strengths, public relations is
occasionally described as a marketing stepchild because
of its sometimes limited and scattered use.
 The point is that PR should work hand in hand with
advertising within an integrated marketing
communications program to help build brands and
customer relationships.
Major Public Relations Tools
News
Public
service
activities
Special
events
PR Tools
Corporat
e identity
materials
Written
materials
Audiovisu
al
materials
The End