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Chapter 17 Advertising and Public Relations Advertising A persuasive message carried by a nonpersonal medium and paid for by an identified sponsor. Two types: Product advertising Institutional advertising Institutional Advertising Advertising designed to promote an organizational image or to build goodwill. Example: “Responsibility matters” Advocacy Advertising Advertising in which an organization expresses its views on controversial issues or responds to media attacks Product Advertising Advertising promoting a specific product. Two types: Direct-action advertisement: stimulates immediate purchase Indirect-action advertisement: stimulates sales over the long run. Product Advertising Pioneering Competitive Comparative Creative Decisions in Advertising Advertising Campaign A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals. Creative Decisions in Advertising Determine the advertising objectives Make creative decisions Make media decisions Evaluate the campaign Some Specific Advertising Objectives Might Include: Sales lead generation Increasing brand awareness Increasing repeat purchases Increasing consumption by current users Creative Decisions Identify product benefits Develop and evaluate advertising appeals Execute the message Evaluate the campaign’s effectiveness Identify Product Benefits What is the attribute? What is the benefit? The Advertising Appeal Identifies the reason for a person to buy a product Unique Selling Proposition Common Advertising Appeals: Profit Health Love or romance Fear Fun Vanity Environmentalism Executing the Message Scientific Musical Slice-ofLife Spokesperson/ Testimonial Demonstration Mood or Image Lifestyle Real/ Animated Product Symbols Fantasy Humorous When developing media strategy, answer these two questions: Which media will effectively and efficiently get the message to the desired audience? What scheduling of these media will neither bore nor allow people to forget? Media Advantages/Disadvantages Newspapers: + Convenient & quick - Poor quality of print Magazines: + Long-life ad - Clutter Media Advantages/Disadvantages Television: + Audio-visual + Very high reach - Expensive & perishable Radio: + Flexible + Inexpensive - Clutter & perishable Media Advantages/Disadvantages Internet + Inexpensive + High reach: worldwide - Cannot reach noncomputer users Outdoor ads + High reach & frequency + Inexpensive - Brevity of message Creating a Media Plan Cost per contact Reach Frequency Gross Rating Points Audience Selectivity 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. Evaluating Advertising Pretesting: Focus groups Quantitative studies Posttesting: Recall tests Changes in attitudes Generating inquiries Sales performance Ethical Issues in Advertising Deceptive Advertising Misleading advertising Bait-and-switch Puffery Public Standards Quality of Children’s Lives 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 Publicity versus Public Relations Functions of Public Relations Press relations Product publicity Corporate communication Public affairs Lobbying Employee and investor relations Crisis management Public Relations Tools New product publicity Product placement Consumer education Event sponsorship Issue sponsorship Internet Web sites Managing Unfavorable Publicity Crisis Management A coordinated effort to handle the effects of unfavorable publicity or of an unfavorable event.