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Advertising and Public Relations

Advertising and Public Relations. 13. chapter. Prepared by Deborah Baker Texas Christian University. Learning Objectives. 1. Discuss the effect of advertising on market share and consumers. 2. Identify the major types of advertising.

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Advertising and Public Relations

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  1. Advertising and Public Relations 13 chapter Prepared by Deborah Baker Texas Christian University Chapter 13 Version 3e

  2. Learning Objectives 1. Discuss the effect of advertising on market share and consumers. 2. Identify the major types of advertising. 3. Discuss the creative decisions in developing an advertising campaign. 13 chapter Chapter 13 Version 3e

  3. Learning Objectives (continued) 4. Describe media evaluation and selection techniques. 5. Discuss the role of public relations in the promotional mix. 13 chapter Chapter 13 Version 3e

  4. 1 Learning Objective Discuss the effect of advertising on market share and consumers. Chapter 13 Version 3e

  5. 1 Advertising • U.S. advertising spending exceeds $215 billion per year • Industry employs only 272,000 • Ad budgets of some firms exceed over $2 billion per year Chapter 13 Version 3e

  6. 1 Advertising and Market Share • New brands spend proportionately more for advertising than old ones. • A certain level of exposure is needed to affect purchase habits. • Beyond a certain level, diminishing returns set in. Chapter 13 Version 3e

  7. 1 Advertising and the Consumer • Average U.S. citizen is exposed to hundreds of ads each day. • Advertising may change a consumer’s attitude toward a product. • Advertising can affect consumer ranking of brand attributes. Chapter 13 Version 3e

  8. 2 Learning Objective Identify the major types of advertising. Chapter 13 Version 3e

  9. Institutional Advertising Designed to enhance a company’s image rather than promote a particular product. Product Advertising Designed to tout the benefits of a specific good or service. 2 Major Types of Advertising Chapter 13 Version 3e

  10. 2 Major Types of Advertising Enhance corporation’s identify Institutional Advertising Advocacy advertising Pioneering Product Advertising Competitive Comparative Chapter 13 Version 3e

  11. Stimulates primary demand for new product or category Pioneering • Influence demand for brand in the growth phase of the PLC. • Often uses emotional appeal. Competitive • Compares two or more competing brands’ product attributes. • Used if growth is sluggish, or if competition is strong. Comparative 2 Product Advertising Chapter 13 Version 3e

  12. 3 Learning Objective Discuss the creative decisions in developing an advertising campaign Chapter 13 Version 3e

  13. 3 Advertising Campaign A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals. Chapter 13 Version 3e

  14. Determine the advertising objectives. Make creative decisions. Make media decisions. Evaluate the campaign. 3 Steps in Creating an Advertising Campaign Chapter 13 Version 3e

  15. Goal of Advertising Objectives Define Target Audience Define the Time Frame for Change Define Desired Percentage Change 3 Setting Objectives:The DAGMAR Approach Chapter 13 Version 3e

  16. Identify Product Benefits Components of Creative Decisions Develop and Evaluate Advertising Appeals Execute the Message Evaluate the Campaign’s Effectiveness 3 Creative Decisions Chapter 13 Version 3e

  17. 3 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 Chapter 13 Version 3e

  18. 3 Advertising Appeal Reason for a person to buy a product. Chapter 13 Version 3e

  19. Profit Health Product saves, makes, or protects money Love or romance Appeals to body-conscious or health seekers 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 Used for expensive or conspicuous items Environmental Consciousness Centers around environmental protection 3 Common Advertising Appeals Chapter 13 Version 3e

  20. 3 Unique Selling Proposition Desirable, exclusive, and believable advertising appeal selected as the theme for a campaign. Chapter 13 Version 3e

  21. Scientific Slice-of-Life Musical Lifestyle Common Executional Styles Demon- stration Spokes-person/ Testimonial Mood or Image Fantasy Real/ Animated Product Symbols Humorous 3 Executing the Message Chapter 13 Version 3e

  22. 4 Learning Objective Describe media evaluation and selection techniques. Chapter 13 Version 3e

  23. Newspapers Major Types of Advertising Media Magazines Radio Television Outdoor Internet Alternative Media 4 Media Types Chapter 13 Version 3e

  24. 4 Advertising Spending for 1999 Chapter 13 Version 3e

  25. Advantages Disadvantages • Limited demographic selectivity • Little color • May be expensive • Low pass-along rate • Clutter • Mass market medium • Year-round readership • Geographic selectivity • Immediacy • High individual market coverage • Short lead time 4 Newspapers Chapter 13 Version 3e

  26. 4 Cooperative Advertising An arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer’s brand. Chapter 13 Version 3e

  27. Advantages Disadvantages • Higher cost per contact • Long-term advertiser commitments • Slow audience build-up • Limited demonstration capabilities • Lack of urgency • Long lead time • Good reproduction • Demographic selectivity • Regional/local selectivity • Long advertising life • High pass-along rate 4 Magazines Chapter 13 Version 3e

  28. Advantages Disadvantages • Selectivity and audience segmentation • Immediate and portable • Geographic flexibility • Entertainment carryover • Short-term ad commitments • No visual treatment • Short advertising life • High frequency to generate retention • Commercial clutter • Background distractions 4 Radio Chapter 13 Version 3e

  29. Advantages Disadvantages • Short life of message • Expensive with high campaign cost • Little demographic selectivity with network • Long-term advertiser commitments • Long lead times • Clutter • Wide diverse audience • Low cost per thousand • Creative and demonstrative • Immediacy of messages • Entertainment carryover • Demographic selectivity with cable 4 Television Chapter 13 Version 3e

  30. Advantages Disadvantages • High exposure frequency • Moderate cost • Flexibility • Geographic selectivity • Broad, diverse market • Short message • Lack of demographic selectivity • High “noise” level 4 Outdoor Media Chapter 13 Version 3e

  31. Advantages Disadvantages • Difficult to measure ad effectiveness and ROI • Ad exposure relies on “click through” • Not all consumers have access to internet • Fast growing • Ability to reach narrow target audience • Short lead time • Moderate cost 4 Internet and World Wide Web Chapter 13 Version 3e

  32. Fax Machines Video Shopping Carts Examples of Alternative Media Computer Screen Savers Interactive Kiosks Ads in Movies and Videos 4 Alternative Media Chapter 13 Version 3e

  33. Cost per Contact Factors Influencing Media Mix Decisions Reach Frequency Audience Selectivity 4 Media Selection Considerations Chapter 13 Version 3e

  34. Cost per Contact The cost of reaching one member of the target market. Reach The number of target consumers exposed to a commercial at least once during a time period. Frequency The number of times an individual is exposed to a message during a time period. Audience Selectivity The ability of an advertising medium to reach a precisely defined market. 4 Media Selection Considerations Chapter 13 Version 3e

  35. Types of Media Schedules Continuous Media Schedule Flighted Media Schedule Pulsing Media Schedule Seasonal Media Schedule 4 Media Scheduling Chapter 13 Version 3e

  36. 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. 4 Media Scheduling Chapter 13 Version 3e

  37. 5 Learning Objective Discuss the role of public relations in the promotional mix. Chapter 13 Version 3e

  38. The Role of Public Relations Evaluates public attitudes Executes programs to gain public acceptance Identifies issues of public concern 5 Public Relations Chapter 13 Version 3e

  39. Press Relations Product Publicity Corporate Communication Public Affairs Lobbying Employee and Investor Relations Crisis Management 5 Functions of Public Relations Chapter 13 Version 3e

  40. New Product Publicity Tools Used By PR Professionals Product Placement Consumer Education Event Sponsorship Issue Sponsorship Internet Web Sites 5 Public Relations Tools Chapter 13 Version 3e

  41. 5 Managing Unfavorable Publicity Crisis Management A coordinated effort to handle the effects of unfavorable publicity or of an unfavorable event. Chapter 13 Version 3e

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