Download Chapter 12 - Advertising

Reaching New Heights . . .
Advertising, Public Relations, and Crisis
Communication
Chapter XII
Integrating Marketing in the Leisure Industry
Objectives…you should be able
to:
• List the elements of the communication mix
• Understand advantages and disadvantages in advertising
methods
• Name and explain the 4 major groups in advertising
• Critically think about advertising methodology and apply them to
real situations
• Understand the difference between advertising and public
relations
• Identify the strategies for crisis communication management
Communication Mix Tools
• Public Relations
• Community Relations
• Advertising
• Direct Sales
• Sponsorships
• Internal Marketing
• Quality Service/Stewardship
Advertising
Advertising is paying for media-related attention.
Textbook definition
Advertising: Any paid form of non-personal communication about an
organization, product, service, or idea by an identified sponsor.
– American Marketing Association
Suggestions for improving the effectiveness of
advertisements:
- Design and layout of ads
- Positioning advertisements in publications
- Size of advertisement
- Frequency of appearance
- Color of ads
The Development of the Advertising
Industry
• Advertising-supported Media
– Penny papers (1930s) resulted in move from
subscription revenues to advertising revenues
– Ladies’ Home Journal (1887) designed as
medium for consumer advertising
– CBS radio founded to sell cigars and other
products
– Robert Niles: “We’re in the business of selling
audiences to advertisers.”
The Development of the Advertising
Industry
• Types of Advertising
– Consumer advertising
• Product or service (ex: new truck)
• Local / direct action – immediate response
• National / indirect action – investment in product image
– Advocacy advertising
• Point of view rather than product (ex: nonsmoking)
– Trade advertising
• Business-to-business (ex: business software)
The Advertising Business
• Four major groups in advertising
– The client with the product to promote
– The advertising agency
– The medium that carries the message
– The audience that the client hopes to
influence
The Advertising Business
• The client
– Goal:
• To sell a product or an idea
• To build awareness of a product or change its
perception by the audience
• To increase sales of a product
– Example: Arm and Hammer’s Baking
Soda
– Example: Coca-Cola and Coke Classic
The Advertising Business
• The advertising agency
– Originated in 1840s with ad space
brokers
– 1868 – N.W. Ayer and Son provide full
advertising services in Philadelphia
– Shift from representing media, with
space to fill, to representing client, with
product to sell
– 3 major services: research, creative
activity, and media planning
The Advertising Business
• The advertising agency
– Research
• Study and track the audience
• Develop objectives
• Ad tests
– Creative activity
• Big idea – grab attention, take notice, take
action
• Develop a brand image
– Media planning
– Agency size and income
The Advertising Business
• The medium
– Carries the advertisements
– Media include: newspapers, magazines,
outdoor, radio, television, Internet, movies,
books
– Each medium has different characteristics
which must be matched to the message and
audience
• Local vs. national Primary or companion
activity
• Degree of detail Number of senses
• General vs. niche Degree of coverage
The Advertising Business
• The audience
– Targeting attempts to reach a particular
group
– Audience defined by:
• Demographics – age, income, sex, marital
status
• Geographics – where the audience lives
• Psychographics – attitudes, opinions, goals,
interests
– Example: Mountain Dew targeted at
audience to whom extreme sports are
attractive
Advertising in Contemporary Culture
• Advertising is a central part of American
culture
• Critics charge that advertising places burden
on society
• Clutter reduces the impact of any given
advertisement
• No research has been done to verify the
effectiveness of subliminal advertising
Advertising in Contemporary Culture
• Advertisements can be more
significant than their context
– Example: “1984” by Apple and Ridley
Scott
• Advertising to children
– Prevalent -- $300 million spent in 1998
on commercials aimed at children
– Joe Camel campaign and the onset of
smoking
Note table 12.1 on p.271
• Very useful resource
– You may also want to reference this table
when completing your marketing plan
budget later in the semester! 
• Some companies believe using celebrities in
their ads to help fight clutter because a
celebrity may make an ad stand out from the
rest
• Most powerful words for Headlines
– free
– new
• The gay market is important to advertisers now
because it is perceived as relatively upscale
Advertising Methods
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Newspapers
Television (cable, local, national)
Radio
Magazines/periodicals/journals
Internet/email
Billboards/ busboards/ benchboards
Direct mail
Yellow pages
Electronic displays (LED strips, interactive computer kiosks)
Signage
Sponsorships
Chamber of commerce, church bulletin, and special programs
Cooperative or exchange advertising with agencies
Posters
Point of purchase displays
Grocery bags, restaurant placemats, bowling alley score sheets,
cash register receipts, etc.
Lets chat!
• Based on your text book reading…Which ones spoke to
you the most and why?
• Now, Get with a partner and face directly (knees to knees
for example) so that your partner has your full attention
– Then, Discuss the advantages and disadvantages of 4 types of
advertising methods (I will give you a list)
– When you are done…let’s chat as a class…..
• Finally, using 2 of the methods…. tips from the beginning
of the chapter, and incorporating what you have learned
thus far….with your partner….come up with to ads.
Examples of Advertising
Selecting an Advertising Agency
• Clearly defined objectives for an advertising agency to accomplish
• The agency should be a partner in achieving the objectives
• Involve all key internal personnel in working with the advertising agency
• Solicit several advertising agencies in a request for proposal (RFP)
process
• The agency ability to be creative and compelling
• The agency culture and expertise
• Can the agency afford them
Slide 21
Extra, Extra:
Important Notes about
Advertising
from your assigned article
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Newspapers
• Original advertising medium
• Today, they carry majority of local advertising and
significant amount of national ads.
• Sunday paper has dropped consistently over the last
several years.
• In what way are Newspaper ads are more effective
than radio or TV ads?
– newspaper ads allow advertisers to give detailed information
• Can target zoned coverage
– Specific areas of the city
Magazines
• Excellent medium for reaching a specific niche
audience (more narrow audience)
• May be the only alternative to direct mail for
reaching the target audience
• Offer higher print quality than newspaper
• Requires a longer read time than newspaper,
thus, requires careful planning.
Outdoor
• The limitation of outdoor ads is that they can
only contain a short simple message
• Most prominent are billboards: “Spots available”
– Have to be short and eye catching!
• $5.2 billion spent on outdoor ads in 2002
• Other methods?
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Painted barns
Shingles on roofs
Posters
Flyers
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Buses
Bottom of golf holes
Cups in the fence
Side walks
Radio
• Enables repeat ads to a narrow audience
– Usually by demographic group
• Teens
• Young-adult males
• Short lead time and low cost
– Can be free if you are non-profit
• Can be effective in big cities in during the
commute time, aka: drive time means – morning and afternoon
Television
• Best way to reach mass audience
– Offers sound motion, and visuals
• Best time slots sold nearly a year in advance
• New age in TV allows for targeted advertising
– MTV
– WB
– Hispanic market
• Local TV networks (and cable) can reach the
local consumer too!
• Biggest problem with TV is Clutter
Internet
• Banner ad
– Most pervasive form of Internet ad
– Major advantage of the banner over broadcast and print ads
• Technology allows clients to know exactly how many people
have viewed them and clicked on them for more info!
– Main problem is not many people click on the ads
• Pop ups and pop-unders
– Only 5% of internet ads in 2002
– Most noticed and effective, clicked on twice as much as
banners in 2002
• Interactive components
– Where you can email a model in the Calvin Klein cologne