Download Chapter 15

Advertising and Public Relations
CHAPTER
17
Marketing
10
Lamb, Hair, McDaniel
Designed by
Eric Brengle
B-books, Ltd.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Prepared by
Amit Shah
Frostburg State University
1
LOI
The Effects of Advertising
Top Ten Leaders by U.S.
Advertising Spending
Copyright ©2009 by Cengage Learning Inc. All rights reserved
2
LOI
Advertising and Market Share
New brands with a small market share spend
proportionally more for advertising and sales
promotion than those with a large market share
1. Beyond a certain level of spending,
diminishing returns set in.
2. New brands require higher spending to
reach a minimum level of exposure
needed to affect purchase habits.
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3
The Effects of Advertising
on Consumers
 The average U.S. citizen is exposed to
hundreds of ads each day.
 Advertising may change a consumer’s
negative attitude toward a product, or
reinforce a positive attitude.
 Advertising can affect consumer
ranking of a brand’s attributes.
LOI
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4
LO2
Major Types of Advertising
Corporate identity
Institutional
Advertising
Advocacy
advertising
Pioneering
Product
Advertising
Competitive
Comparative
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5
LO2
Product Advertising
Pioneering
 Stimulates primary demand for
new product or category
 Used in the PLC introductory stage
Competitive
 Influences demand for brand in the
growth phase of the PLC
 Often uses emotional appeal
Comparative
 Compares two or more competing
brands’ product attributes
 Used if growth is sluggish, or if
competition is strong
http://www.pizzahut.com
http://www.papajohns.com
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Online
6
LO3
Creative Decisions in Advertising
Determine the
advertising objectives
Make creative decisions
Make media decisions
Evaluate the campaign
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7
Setting Objectives:
The DAGMAR Approach
(Defining Advertising Goals for
Measured Advertising Results)
Define target audience
Define desired percentage change
Define the time frame for change
LO3
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8
LO3
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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9
LO3
Identify Product Benefits
Attribute
“SoBe Life Water has reformulated
five delicious, low-calorie flavors,
each infused with essential vitamins
and healthy herbal ingredients.”
- So?
Benefit
“SoBe Life Water is not only an
enhanced water; it is a lifestyle unto
itself. It provides consumers the
healthiest, most fun and refreshing
products, delivering the incredibly
positive benefits of hydration.”
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10
LO3
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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11
LO4
Major Advertising Media
Newspapers
Magazines
Radio
Television
Outdoor Media
Yellow Pages
Internet
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12
LO4
Newspapers
Advantages




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

Geographic selectivity
Short-term advertiser
commitments
News value and
immediacy
Year-round readership
High individual market
coverage
Co-op and local tie-in
availability
Short lead time
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Disadvantages



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Limited demographic
selectivity
Limited color
Low pass-along rate
May be expensive
13
LO4
Magazines
Advantages

Good reproduction

Demographic selectivity

Regional/local selectivity

Long advertising life

High pass-along rate
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Disadvantages

Long-term advertiser
commitments

Slow audience build-up

Limited demonstration
capabilities

Lack of urgency

Long lead time
14
LO4
Radio
Advantages
Disadvantages

Low cost

No visual treatment

Immediacy of message

Short advertising life

Short notice scheduling


No seasonal audience
change
High frequency to
generate comprehension
and retention

Background distractions

Commercial clutter

Highly portable

Short-term advertiser
commitments

Entertainment carryover
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15
LO4
Television
Advantages

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
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Wide, diverse audience
Low cost per thousand
Creative opportunities for
demonstration
Immediacy of messages
Entertainment carryover
Demographic selectivity
with cable
Disadvantages







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Short life of message
Consumer skepticism
High campaign cost
Little demographic
selectivity with stations
Long-term advertiser
commitments
Long lead times for
production
Commercial clutter
16
LO4
Outdoor Media
Advantages
Disadvantages

Repetition

Short message

Moderate cost


Lack of demographic
selectivity
Flexibility


High “noise” level
Geographic selectivity
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17
LO4
Internet
Advantages

Fast growing

Ability to reach narrow
target audience

Short lead time

Moderate cost
Disadvantages

Difficult to measure ad
effectiveness and ROI

Ad exposure relies on
“click through” from
banner ads

Not all consumers have
access to Internet
http://www.fox.com
http://www.abc.com
Online
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18
LO4
Videogame Advertising
• In 2006, Microsoft acquired Massive inc., a startup that places ads in video games.
• Ads are inserted into the
game environment.
• Video games could become
a large new medium for
advertising.
SOURCE: Robert A. Guth and Nick Wingfield,
“Microsoft’s ‘Massive’ Move into Game Ads,”
Wall Street Journal, April 26,2006, B1.
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19
LO4
Cell Phones
• Newest advertising media
• Useful for reaching youth market
• 3 billion cell phone users in the world
• In 2006 cell phone ad sales reached over
$400 million in U.S. – nearly $900 million
worldwide
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20
LO4
Quantitative Factors in
Media Selection
• Media Mix – Combination of media to be
used for a promotional campaign
• Cost per contact – The cost of reaching one
member of the target market
• Reach – number of target consumers
exposed to a commercial at least once
during a specific period, usually four weeks
• Frequency – number of times an individual is
exposed to a given message during a
specific period
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21
LO4
Qualitative Factors in
Media Selection
• Attention to the commercial
and the program
• Involvement
• Program liking
• Lack of distractions
• Other audience behaviors
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22
LO4
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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23
LO5
Public Relations
Public Relations
The element in the promotional
mix that:
 evaluates public attitudes
 identifies issues of public concern
 executes programs to gain public
acceptance
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24
LO5
Functions of Public Relations
Press relations
Product publicity
Corporate communication
Public affairs
Lobbying
Employee and investor relations
Crisis management
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25
LO5
Managing Unfavorable Publicity
Crisis
Management
A coordinated effort to
handle the effects of
unfavorable publicity or of
an unfavorable event.
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26