Chapter Fifteen: Advertising and Public Relations

Chapter Fifteen
Advertising and Public Relations
Copyright © 2009 Pearson Education, Inc.

Chapter 15 - slide 1
Publishing as Prentice Hall
Advertising and Public
Relations
Topic Outline
Advertising
– Objectives
– Budget
– Strategy
– Effectives
Public Relations
– Role and impact
– Tools
The Promotion Mix
Promotion Mix
•Advertising
Marketing Mix •Publicity
P1: Product •Packaging
P2: Place •Direct marketing
P3: Price •Sponsorship
•Personal selling
•Sales promotion
•Public relation
P4:Promotion

The Marketing
Communications Mix
Any Paid Form of Nonpersonal
Advertising Presentation by an Identified
Sponsor.
Short-term Incentives to Encourage

Sales Promotion Trial or Purchase.
Protect and/or Promote Company’s

Public Relations Image/products.
Personal Selling Personal Presentations.
Direct Communications With

Direct Marketing Individuals to Obtain an
Immediate Response.

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

Ways to Handle Advertising
Advertising
Sales Departments Departments
in in Larger
Small Companies Companies
Advertising Agency
Firm that Assists Companies
in Planning, Preparing,
Implementing and
Evaluating Their
Advertising
Programs
Copyright © 2010 Pearson Education,dr wady
Inc.
.
MEASUREEMENT
M
M
IS
E
SI
D
O
I
N
A
The Five Ms
Of Advertising
E
e y G
on
EA
m EE
M
The meaning of The Five Ms
Of Advertising
Mission What are the advertising objective?
How much can be spend ?

money
Message What message should send?
Media What media should be used?
Measurement How should the results be evaluated?

Major Decisions in Advertising
Developing and Advertising Programs
Figure 1 : Major advertising decisions

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

Setting Objectives
Informative Advertising Persuasive Advertising

Build Primary Demand Build Selective Demand
Comparison Advertising Reminder Advertising

Compares One Brand to Keeps Consumers Thinking
Another About a Product.

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

Table 15.1
Possible Advertising Objectives

 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

Setting the Advertising Budget
Advertising Budget Methods
Affordable, Percentage of Sales, Competitive-Parity and
Objective-and-Task
Product Stage in the Product

Differentiation Life Cycle
Factors in
Setting the
Advertising
Budget Market
Advertising
Frequency Share
Competition
and Clutter

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
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

Click to add Strategy
Advertising title
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 Advertising Appeals
Combination of Both. Meaningful
Believable
Distinctive

Advertising
Creating the Advertising Message
Advertisements need to break through the clutter:

• Gain attention
• Communicate
well

Advertising
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
Advertising

Advertising
Message strategy is the general message that will

be communicated to consumers
• Identifies consumer benefits

Advertising
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

Advertising
• 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.

Advertising

Advertising
Message execution also includes:

• Tone
– Positive or negative
• Attention-getting words
• Format
– Illustration
– Headline
– Copy

Advertising
Consumer Generated Messages
• YouTube videos
• Brand Web site contests
• Positives
– Low expense
– New creative ideas
– Fresh perspective on brand
– Boost consumer involvement

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

Step 1. Decide on Reach, Frequency,
and Impact
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

•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.
•Target audience media habits.

• Product characteristics.
• Message characteristics.
• Cost.

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

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
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
Advertising
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

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 .

Advertising Evaluation
Advertising Program Evaluation
Communication Effects Sales Effects

Is the Ad Communicating Well? Is the Ad Increasing Sales?

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

Advertising
Developing and Advertising Programs
Other Advertising Considerations
• Organizing for
advertising
– Agency vs. in-house
• International
advertising decisions
– Standardization

Public Relations
• Public relations department functions include:
• Press relations or press agency
• Product publicity
• Public affairs
• Lobbying
• Investor relations
• Development

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

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

Public Relations
The Role and Impact of Public Relations
• Lower cost than advertising

• Stronger impact on public awareness than
advertising

Public Relations
Major Public Relations Tools

Click
Majorto add title
Public Relations Decisions
Setting Public Relations Objectives
Choosing the Public Relations Messages

and Vehicles
Implementing the Public Relations Plan
Evaluating Public Relations Results


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Chapter Fifteen: Advertising and Public Relations

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Chapter Fifteen

Advertising and Public Relations

Copyright © 2009 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Short-term Incentives to Encourage

Protect and/or Promote Company’s

Personal Selling Personal Presentations.

Direct Communications With

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Mission What are the advertising objective?

How much can be spend ?

Message What message should send?

Media What media should be used?

Measurement How should the results be evaluated?

Figure 1 : Major advertising decisions

Copyright © 2010 Pearson Education, Inc.

An advertising objective is a specific communication

Copyright © 2010 Pearson Education, Inc.

Informative Advertising Persuasive Advertising

Comparison Advertising Reminder Advertising

Copyright © 2010 Pearson Education, Inc.

Informative advertising is used when introducing a new

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

If the product class is mature , the company is

Then the proper objective should be to

Then the proper objective is The convince the

Copyright © 2010 Pearson Education, Inc.

Product Stage in the Product

Copyright © 2010 Pearson Education, Inc.

Advertising strategy is the strategy by which

Copyright © 2010 Pearson Education, Inc.

Plan a Message Strategy

Copyright © 2010 Pearson Education, Inc.

Advertisements need to break through the clutter:

Copyright © 2010 Pearson Education, Inc.

Creating the Advertising Message

Advertisements need to be better planned, more

Copyright © 2010 Pearson Education, Inc.

Message strategy is the general message that will

Copyright © 2010 Pearson Education, Inc.

Creative concept is the idea that will bring the message

Characteristics of the appeals include:

Copyright © 2010 Pearson Education, Inc.

• Message execution is when the advertiser

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Message execution also includes:

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Step 2. Choosing Among Major Media Types

Step 3. Selecting Specific Media Vehicles

Step 4. Deciding on Media Timing

Step 5. Deciding on geographical

Copyright © 2010 Pearson Education, Inc.

Reach is a measure of the percentage of people in

Copyright © 2010 Pearson Education, Inc.

•The major media types are television , the

•Advertisers can also choose from a wide

•Target audience media habits.

Copyright © 2010 Pearson Education, Inc.

Selecting media vehicles involves decisions