Download Chapter 15 - slide 3 Copyright © 2010 Pearson Education, Inc

Chapter Fifteen
Advertising and Public Relations
Copyright © 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 1
Advertising and Public
Relations
Topic Outline
Advertising
– Objectives
– Budget
– Strategy
– Effectives
Public Relations
– Role and impact
– Tools
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 2
The Promotion Mix
Promotion Mix
Marketing Mix
P1: Product
P2: Place
P3: Price
•Advertising
•Publicity
•Packaging
•Direct marketing
•Sponsorship
•Personal selling
•Sales promotion
•Public relation
P4:Promotion
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 3
The Marketing
Communications Mix
Advertising
Sales Promotion
Public Relations
Personal Selling
Direct Marketing
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Any Paid Form of Nonpersonal
Presentation by an Identified
Sponsor.
Short-term Incentives to Encourage
Trial or Purchase.
Protect and/or Promote Company’s
Image/products.
Personal Presentations.
Direct Communications With
Individuals to Obtain an
Immediate Response.
Chapter 15 - slide 4
Advertising
• Advertising is any paid form of non-personal
presentation and promotion of ideas, goods, or
services by an identified sponsor.
o U.S. advertisers spend in excess of $175 billion
each year.
Advertising is used by:
 Business firms
 Nonprofit organizations
 Professionals
 Social Agencies
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 5
Ways to Handle Advertising
Sales Departments
in
Small Companies
Advertising
Departments
in Larger
Companies
Advertising Agency
Firm that Assists Companies
in Planning, Preparing,
Implementing and
Evaluating Their
Advertising
Programs
.
wady
Copyright © 2010 Pearson Education,dr
Inc.
Publishing as Prentice Hall
Chapter 15 - slide 6
MEASUREEMENT
The Five Ms
Of Advertising
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 7
The meaning of The Five Ms
Of Advertising
Mission
money
Message
What are the advertising objective?
How much can be spend ?
What message should send?
Media
What media should be used?
Measurement
How should the results be evaluated?
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 8
Major Decisions in Advertising
Developing and Advertising Programs
Figure 1 : Major advertising decisions
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 9
Advertising
Setting Advertising Objectives
An advertising objective is a specific communication
task to be accomplished with a specific target
audience during a specific time
Objectives are classified by
primary purpose
• Inform
• Persuade
• Remind
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 10
Setting Objectives
Informative Advertising
Build Primary Demand
Comparison Advertising
Compares One Brand to
Another
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Persuasive Advertising
Build Selective Demand
Reminder Advertising
Keeps Consumers Thinking
About a Product.
Chapter 15 - slide 11
Advertising
Setting Advertising Objectives
Informative advertising is used when introducing a new
product category; the objective is to build primary
demand
Comparative advertising directly or indirectly compares the
brand with one or more other brands
Persuasive advertising is important with increased
competition to build selective demand
Reminder advertising is important with mature products to
help maintain customer relationships and keep
customers thinking about the product
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 12
Table 15.1
Possible Advertising Objectives
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 13
 The advertising objectives should emerge from
a thorough analysis of the current marketing situation
If the product class is mature , the company is
the market leader and brand usage is low.
Then the proper objective should be to
stimulate more usage
If the product class is new, the company is not
the market leader But the brand is superior
the leader
Then the proper objective is The convince the
market of the brands superiority
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 14
Setting the Advertising Budget
Advertising Budget Methods
Affordable, Percentage of Sales, Competitive-Parity and
Objective-and-Task
Product
Differentiation
Advertising
Frequency
Stage in the Product
Life Cycle
Factors in
Setting the
Advertising
Budget
Market
Share
Competition
and Clutter
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 15
Advertising
Setting the Advertising Budget
Product life-cycle stage
• New products require larger budgets
• Mature brands require lower budgets
Market share
• Building or taking market share requires larger
budgets
• Markets with heavy competition or high
advertising clutter require larger budgets
• Undifferentiated brands require larger budgets
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 16
Advertising
Developing Advertising Strategy
Advertising strategy is the strategy by which
the company accomplishes its advertising
objectives and consists of:
• Creating advertising messages
• Selecting advertising media
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 17
Click
to add Strategy
title
Advertising
Creating Advertising Messages
Plan a Message Strategy
General Message to Be Communicated to Customers
Develop a Message
Focus on
Customer Benefits
Creative Concept
“Big Idea”
Visualization or Phrase
Combination of Both.
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Advertising Appeals
Meaningful
Believable
Distinctive
Chapter 15 - slide 18
Advertising
Creating the Advertising Message
Advertisements need to break through the clutter:
• Gain attention
• Communicate
well
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 19
Advertising
Creating the Advertising Message
Advertisements need to be better planned, more
imaginative, more entertaining, and more
rewarding to consumers
• Madison & Vine—the intersection of Madison
Avenue and Hollywood—represents the merging
of advertising and entertainment in an effort to
break through the clutter and create new
avenues for reaching consumers with more
engaging messages
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 20
Advertising
Creating the Advertising Message
Message strategy
Creative concept
Message execution
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 21
Advertising
Creating the Advertising Message
Message strategy is the general message that will
be communicated to consumers
• Identifies consumer benefits
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 22
Advertising
Creating the Advertising Message
Creative concept is the idea that will bring the message
strategy to life and guide specific appeals to be used in
an advertising campaign
Characteristics of the appeals include:
• Meaningful
• Believable
• Distinctive
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 23
Advertising
Creating the Advertising Message
• Message execution is when the advertiser
turns the big idea into an actual ad
execution that will capture the target
market’s attention and interest.
• The creative team must find the best
approach, style, tone, words, and format
for executing the message.
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 24
Advertising
Creating the Advertising Message
Slice of life
Lifestyle
Fantasy
Mood or
image
Musical
Personality
symbol
Technical
expertise
Scientific
evidence
Testimonial
or
endorsement
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 25
Advertising
Creating the Advertising Message
Message execution also
includes:
• Tone
–
•
•
Positive or negative
Attention-getting words
Format
–
–
–
Illustration
Headline
Copy
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 26
Advertising
Creating the Advertising Message
Consumer Generated Messages
• YouTube videos
• Brand Web site contests
• Positives
–
–
–
–
Low expense
New creative ideas
Fresh perspective on brand
Boost consumer involvement
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 27
Advertising Strategy
Selecting Advertising Media
Step 1. Decide on Reach, Frequency,
and Impact
Step 2. Choosing Among Major Media Types
Step 3. Selecting Specific Media Vehicles
Step 4. Deciding on Media Timing
Step 5. Deciding on geographical
Media allocation
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 28
Step 1. Decide on Reach, Frequency,
and Impact
Selecting Advertising Media
Reach is a measure of the percentage of people in
the target market who are exposed to the ad
campaign during a given period of time
Frequency is a measure of how many times the
average person in the target market is exposed
to the message
Impact is the qualitative value of a message
exposure through a given medium
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 29
Step 2. Choosing Among Major Media Types
•The major media types are television , the
internet , newspaper , direct mail ,
magazines , radio and outdoor.
•Advertisers can also choose from a wide
array of new digital media , such as cell
phones and other digital devices.
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 30
Step 2. Choosing Among Major Media Types
•Target audience media habits.
• Product characteristics.
• Message characteristics.
• Cost.
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 31
Advertising
Step 3
Selecting media vehicles involves decisions
presenting the media effectively and efficiently
to the target customer and must consider the
message’s:
• Impact
• Effectiveness
• Cost
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 32
Step 3
• In selecting specific media vehicles, the
media planner must balance media costs
against several effectiveness factors such:
1. The planner should evaluate the media
vehicle’s audience quality
2. The media planner should consider
audience engagement
3. The planner should assess the vehicle's
editorial quality
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 33
Step 4: deciding on media timing
• The advertiser must also decide how to
schedule the advertising over the course of
a year.
Narrowcasting focuses the message on
selected market segments
• Lowers cost
• Targets more effectively
• Engages customers better
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 34
Advertising
Selecting Advertising Media
When deciding on media timing,
the planner must consider:
• Seasonality
• Pattern of the advertising
–
–
Continuity—scheduling within
a given period
Pulsing—scheduling unevenly
within a given period
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 35
Step 5. Deciding on geographical
Media allocation
• The company makes “ notional buys “ when it placed
advertising on national TV net or in nationally circulated
magazines.
• The company makes “ local buys “ when it placed advertising
on local newspapers, radio, or outdoor site .
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 36
Advertising Evaluation
Advertising Program Evaluation
Communication Effects
Sales Effects
Is the Ad Communicating Well?
Is the Ad Increasing Sales?
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 37
Advertising
Evaluating the Effectiveness and Return on
Advertising Investment
Communication effects indicate whether the ad and
media are communicating the ad message well
and should be tested before or after the ad runs
Sales and profit effects compare past sales and
profits with past expenditures or through
experiments
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 38
Advertising
Developing and Advertising Programs
Other Advertising Considerations
• Organizing for
advertising
– Agency vs. in-house
• International
advertising decisions
– Standardization
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 39
Public Relations
• Public relations department functions
include:
• Press relations or press agency
• Product publicity
• Public affairs
• Lobbying
• Investor relations
• Development
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 41
Public Relations
Press relations or press agency involves the
creation and placing of newsworthy
information to attract attention to a
person, product, or service
Product publicity involves publicizing specific
products
Public affairs involves building and
maintaining national or local community
relations
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 42
Public Relations
Lobbying involves building and maintaining
relations with legislators and government
officials to influence legislation and
regulation
Investor relations involves maintaining
relationships with shareholders and
others in the financial community
Development involves public relations with
donors or members of nonprofit
organizations to gain financial or
volunteer support
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 43
Public Relations
The Role and Impact of Public Relations
• Lower cost than advertising
• Stronger impact on public awareness than
advertising
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 44
Public Relations
Major Public Relations Tools
News
Speeches
Special events
Written
materials
Audiovisual
materials
Corporate
identity
materials
Public service
activities
Buzz marketing
Social
networking
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Mobile tour
marketing
Internet
Chapter 15 - slide 45
Click to
add title
Major
Public
Relations Decisions
Setting Public Relations Objectives
Choosing the Public Relations Messages
and Vehicles
Implementing the Public Relations Plan
Evaluating Public Relations Results
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 15 - slide 46