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17
C H A P T E R
Advertising and
Public Relations
McGraw-Hill/Irwin
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
After studying this chapter, you should be able to:
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Understand the characteristics, functions, and types of
advertising.
Realize how people process advertising information and
how it affects buyer behavior.
Discuss approaches to developing advertising campaigns.
Describe different advertising objectives and the message
strategies used to achieve them.
Understand the decisions involved in selecting media and
scheduling advertising.
Explain how marketers assess advertising effectiveness.
Appreciate the roles of public relations and publicity in
marketing.
Bearden Marketing 5th Ed
17-2
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
British Airways
British Airways has used its
advertising in a variety of efforts.
For example, the company’s
“Future and Shape” strategy
includes a marketing blitz to
combat its damaging reputation
as an expensive airline.
BA, which has seen its market
share eroded by budget carriers,
invests heavily in tactical
advertising to promote
competitive fares to Europe.
Recent plans also include heavy
use of public relations to
introduce its lower fares and to
fight against budget airlines such
as easyJet.
Bearden Marketing 5th Ed
17-3
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Total US Advertising – 2004
Medium
Expenditures
Network TV
$ 22,500
Newspapers
24,600
Spot TV
17,300
Magazines
21,800
Cable TV networks
14,200
Syndicated TV
3,900
National newspapers
3,300
National spot radio
2,600
Outdoor
3,200
Internet
7,400
Bearden Marketing 5th Ed
($ million)
17-4
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Advertising Defined
Advertising
Bearden Marketing 5th Ed
A marketing communications element
that is persuasive, nonpersonal, paid
for by an identified sponsor, and
disseminated through mass channels
of communication to promote the
adoption of goods, services, persons,
or ideas.
17-5
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
World's Top Five Advertising Agencies
Global Expenditures
Close to $300 Billion
Bearden Marketing 5th Ed
17-6
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Classification of Advertising
Target
Audience
Geographic
Area
Medium
Purpose
Advertising can be classified by target
audience, geographic area, medium, and
purpose.
Bearden Marketing 5th Ed
17-7
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Classification of Advertising
Target
Audience
Geographic
Area
Medium
Purpose
Consumer advertising: Aimed at people who
buy the product for their own or someone else’s
personal use.
Business advertising: Aimed at people who buy
or specify goods and services for use in business:
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Industrial
Trade
Professional
Agricultural (farm)
Bearden Marketing 5th Ed
17-8
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Classification of Advertising
Target
Audience
Geographic
Area
Medium
Purpose
Local (retail) advertising: Advertising by businesses
whose customers come from only one city or local
trading area.
Regional advertising: Advertising for products sold in
one area or region, but not the whole country.
National advertising: Advertising aimed at customers
in several regions of the country.
International advertising: Advertising directed at
foreign
Bearden
Marketing 5markets.
Ed
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
17-9
th
Classification of Advertising
Target
Audience
Geographic
Area
Medium
Purpose
Print advertising: Newspaper, magazine.
Broadcast (electronic) advertising: Radio, TV.
Out-of-home advertising: Outdoor, transit.
Direct-mail advertising: Advertising sent
through the mail.
Bearden Marketing 5th Ed
17-10
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Classification of Advertising
Target
Audience
Geographic
Area
Medium
Purpose
Product advertising: Intended to promote goods
and services.
Nonproduct (corporate or institutional)
advertising: Intended to promote firm’s mission
or philosophy rather than a product.
Commercial advertising: Intended to promote
goods, services, or ideas with the expectancy of
making a profit.
Bearden Marketing 5th Ed
17-11
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Classification of Advertising
Target
Audience
Geographic
Area
Medium
Purpose
Noncommercial advertising: Sponsored by or
for a charitable institution, civic group, or religious
or political organization.
Action advertising: Intended to bring about
immediate action on the part of the reader.
Awareness advertising: Intended to build the
image of a product or familiarity with the product’s
name and package.
Bearden Marketing 5th Ed
17-12
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Hierarchy of Effects
Advertising’s influence on consumers is often explained
by using the hierarchy of effects, or informationprocessing, model.
Of course, not every consumer consciously, or even
subconsciously, goes through a sequence of steps for all
ads. Yet each stage of this hierarchy represents a
specific goal for advertisers to pursue.
Bearden Marketing 5th Ed
17-13
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Influences on Ad Processing
Motivation
Motivation is related to the concept of
consumer involvement, or the personal
relevance or importance of the marketing
communications message.
Ability
Ability implies the buyer knows enough
about the product category to
understand the advertised message.
Opportunity
Bearden Marketing 5th Ed
Opportunity is the extent to which
distractions or limited exposure time
affect the buyer’s attention to brand
information in an ad.
17-14
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Advertising Development and Evaluation
Bearden Marketing 5th Ed
17-15
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Message Strategy Alternatives
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Subjective Claims
Expansion Advertising
Comparative Advertising
Emotional Appeals
Fear Appeals
Celebrity Endorsement
Humor Appeals
Subliminal Advertising
Advertorial
Infomercial
Product Placement Advertising
Bearden Marketing 5th Ed
17-16
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Selecting and Scheduling Media
Media
Classes
Media
Vehicles
Television
Specific
vehicle
depends
on the cost
effectiveness of a
particular
outlet for
desired
market.
Magazines
Newspapers
Radio
Outdoor
Transit
Direct Mail
Bearden Marketing 5th Ed
Media
Schedules
Evaluation
Reach
Pre-testing
Post-testing
Sales
Effectiveness
Evaluation
Frequency
17-17
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Important Research Findings
1. Advertising elasticities are higher for durables than
nondurables.
2. Price promotion elasticities are up to 20 times greater
than advertising elasticities.
3. Advertising elasticities are greater early in the product
life cycle and for established brands.
4. The first exposures to advertising are most important
to short-term sales.
5. Price advertising increases price sensitivity, whereas
nonprice advertising decreases price sensitivity.
Bearden Marketing 5th Ed
17-18
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Ethical and Legal Issues
Is advertising manipulative?
Is advertising deceptive or misleading?
How does advertising affect children?
Is advertising intrusive?
Cause-related advertising
Advertising harmful products
Bearden Marketing 5th Ed
17-19
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Public Relations
Public relations (PR) is often used as a
complement to support advertising, personal
selling, and sales promotions for disseminating
marketing communications. Publics include:
Customers
Community
Members
Employees
News Media
Stockholders
Government
Bearden Marketing 5th Ed
17-20
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Marketing Public Relations
Public relations functions designed to support
marketing activities are termed marketing
public relations. These activities are as follows:
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Building marketplace excitement before media advertising
breaks.
Creating advertising news where there is no product
news.
Introducing a product with little or no advertising.
Providing a value-added customer service.
Building brand-to-customer bonds.
Influencing the influentials (opinion leaders).
Defending products at risk and giving consumers a
reason to buy.
Bearden Marketing 5th Ed
17-21
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Summary
After studying this chapter, you should be able to:







Understand the characteristics, functions, and types of
advertising.
Realize how people process advertising information and
how it affects buyer behavior.
Discuss approaches to developing advertising campaigns.
Describe different advertising objectives and the message
strategies used to achieve them.
Understand the decisions involved in selecting media and
scheduling advertising.
Explain how marketers assess advertising effectiveness.
Appreciate the roles of public relations and publicity in
marketing.
Bearden Marketing 5th Ed
17-22
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.