CH 12 Advertising and Public Relations

BUSI 2208 Dr. Irene Lu

 Topics Outline

1. Promotional mix
2. Advertising
3. Public Relations

BUSI 2208 Dr. Irene Lu

 Topic 1

Promotional Mix

BUSI 2208 Dr. Irene Lu

_Promotion Mix_________

• A promotion mix, or marketing communications mix, is a specific

blend of promotion tools:
– Advertising
– Sales promotion
– Personal selling
– Public relations (PR)
– Direct and digital marketing

BUSI 2208 Dr. Irene Lu

_Integraged_ Marketing Communications

BUSI 2208 Dr. Irene Lu

Push versus Pull Promotion Strategy

BUSI 2208 Dr. Irene Lu

 Topic 2

Advertising

BUSI 2208 Dr. Irene Lu

Major Advertising Decisions

BUSI 2208 Dr. Irene Lu

Possible Advertising Objectives

Informative Advertising
Communicating customer value Suggesting new uses for a product

Building a brand and company image Informing the market of a price change

Telling the market about a new product Describing available services and support

Explaining how a product works Correcting false impressions

Persuasive Advertising
Building a brand preference Persuading customers to purchase now

Encouraging switching to a brand Creating customer engagement

Changing customer perceptions of product value Building brand community

Reminder Advertising
Maintaining customer relationships Reminding consumers where to buy the product

Reminding consumers that the product may be Keeping the brand in a customer’s mind during off-seasons
needed in the near future

BUSI 2208 Dr. Irene Lu

Designing the advertisement – Message
Content
Repetition helps us remember but ads 'wear out‘.
• _Cosmetic__variations: Using different backgrounds, different
print types, different advertising spokespersons, while repeating
the same advertising theme.

BUSI 2208 Dr. Irene Lu

Methods of Setting the Advertising Budget

• Affordable Method
• Percentage-of-Sales Method
• Competitive-Parity Method
• Objective-and-Task Method

BUSI 2208 Dr. Irene Lu

Advertising Strategy

• Accomplishes the company’s advertising objectives

• Major advertising strategy elements:
– Creating advertising messages
– Selecting advertising media

BUSI 2208 Dr. Irene Lu

Profiles of Major Media Types
Medium Advantages Limitations
Television Good mass-marketing coverage; low High absolute costs; high
cost per exposure; combines sight, clutter; fleeting exposure;
sound, and motion; appealing to the less audience selectivity
senses
Digital, High selectivity; low cost; immediacy; Potentially low impact;
mobile, and engagement Capabilities high audience control of
social media content and exposure
Newspapers Flexibility; timeliness; good local Short life; poor
market coverage; broad acceptability; reproduction quality; small
high believability pass-along audience.
Direct mail High audience selectivity; flexibility; no Relatively high cost per
ad competition within the same exposure; “junk mail”
medium; allows personalization image.

BUSI 2208 Dr. Irene Lu

 Medium Advantages
Magazines High geographic and demographic
selectivity; credibility and
prestige; high-quality
reproduction; long life and good
pass-along readership
Radio Good local acceptance; high
geographic and demographic
selectivity; low cost.
Outdoor Flexibility; high repeat exposure;
low cost; good positional
selectivity
BUSI 2208 Dr. Irene Lu
Limitations
Long ad purchase lead time; high cost; no
guarantee of position
Audio only; fleeting exposure; low
attention (“the half-heard” medium);
fragmented audiences
Little audience selectivity; creative
limitations
Evaluating Advertising Effectiveness and
Return on Advertising Investment
• __return on advertising investment________: Net
return on advertising investment divided by the costs
of the advertising investment
• Advertisers should regularly evaluate
– Communication effects
– Sales and profit effects

BUSI 2208 Dr. Irene Lu

International Advertising Decisions

• Degree of adaptation
• Standardization benefits
– Lower advertising costs
– Greater global advertising coordination
– More consistent worldwide image
• Standardization drawbacks
– Ignores the fact that country markets differ in their
cultures, demographics, and economic conditions

BUSI 2208 Dr. Irene Lu

Problems Faced by Global Advertisers

• Countries differ in
– Media costs and availability
– Advertising practices
• Diversity between countries requires advertisers to
adapt their campaigns to meet local
– Cultures and customs
– Regulations

BUSI 2208 Dr. Irene Lu

 Topic 3

Public Relations

BUSI 2208 Dr. Irene Lu

Role and Impact of PR

• Strong impact on public awareness at a lower cost

than advertising
• Power to engage consumers and make them part of
the brand’s story, inject them in daily conversations
• Powerful brand-building tool

BUSI 2208 Dr. Irene Lu

Major Public Relations Tools

• News
• Special events
• Written materials
• Audiovisual materials
• Corporate identity materials
• Public service activities

BUSI 2208 Dr. Irene Lu