Chapter 16: Advertising and Public Relations

1. Chapter 16:Advertising and Public Relations Pride/Ferrell Foundations of Marketing Fourth Edition Prepared by Milton Pressley University of New Orleans

2. Objectives • Describe the nature and types of advertising. • Explain the major steps in developing an advertising campaign. • Identify who is responsible for developing advertising campaigns. • Recognize the tools used in public relations. • Understand how public relations is used and evaluated.

3. Advertising • Paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media

4. Types of Advertising • Institutional advertising – Promotes organizational images, ideas, and political issues • Advocacy advertising – Promotes a company’s position on a public issues • Product advertising – Promotes products’ uses, features, and benefits • Pioneer advertising – Tries to stimulate demand for a product category with information about the product • Competitive advertising – Tries to stimulate demand for a product with information about the product’s advantages • Comparative advertising – Compares the brand to one or more other brands • Reminder advertising – Reminds customers about an established brand’s uses, characteristics, and benefits • Reinforcement advertising – Assures users they chose the right brand

5. Advertising Campaign • An advertising campaign involves designing a series of advertisements and placing them in various media in order to reach a particular target audience.

6. Eight Steps to Developing an Advertising Campaign • Designing a series of advertisements and placing them in various advertising media to reach a particular target audience

7. Identifying and Analyzing the Target Audience • Target audience - The group of people at whom advertisements are aimed Target Audience LG produces a front-loading, high-efficiency steam washer. Who is the target audience for this ad?

8. Steps in Developing an Advertising Campaign • Advertising Objectives - What the firm hopes to accomplish with the campaign Stated clearly Be precise In measurable terms • Advertising Platform - Basic issues or selling points to be included in the advertising campaign

9. Advertising Platform Advertising Platform An advertising platform normally contains multiple issues or selling points.

10. Advertising Appropriation • Is the total amount of money a marketer allocates for advertising during a specific period of time. • Is the advertising budget for a specific period

11. Advertising Appropriation

12. Determining the Advertising Appropriation • Objective-and-task approach - Budgeting for an advertising campaign by determining its objectives and then calculating the cost of all the tasks needed to attain them • Percent-of-sales approach - Budgeting for an advertising campaign by multiplying the firm’s past or expected sales by a standard percentage • Competition-matching approach - Budgeting for an advertising campaign by trying to match competitors’ ad outlays • Arbitrary approach - Budgeting for an advertising campaign as specified by a by high-level executive in the firm

13. Advertising Appropriation

14. Developing the Media Plan • Specifies media vehicles and schedule for running the advertisements

15. Advantages and Disadvantages of Major Advertising Media

16. Creating the Advertising Message • Copy - Storyboard • Artwork - Illustrations - Layout Components of a Print Ad This Neutrogena ad contains all of the major components of a print advertisement.

17. Artwork Black-and-White vs. Color This ad highlights the importance of using color when advertising certain products.

18. Executing the Campaign • Execution of an advertising campaign requires extensive planning and coordination because many tasks must be completed on time and many people and firms are involved.

19. Evaluating Advertising Effectiveness • Pretest - Evaluation of ads performed before a campaign begins • Consumer jury - A panel of a product’s actual or potential buyers who pretest ads • Posttest - Evaluation of advertising effectiveness after the campaign

20. Evaluating Advertising Effectiveness (cont’d) • Recognition test - Respondents are shown the actual advertisement and asked whether they recognize it • Unaided recall test - Respondents identify advertisements they have seen recently but are not shown any clues to help them remember • Aided recall test - Similar to unaided recall tests but respondents are shown a list of products, brands, company names or trademarks to jog their memories

21. Public Relations • Communication efforts used to create and maintain favorable relations between an organization and its stakeholders Annual Reports Annual reports, when appropriately designed, can generate favorable public relations.

22. Tools: News (Press) Release • A short piece of copy publicizing an event or a product Press Release Press releases are often used to spread news about a company or its products.

23. Other Publicity Tools • Feature article – A manuscript of up to 3,000 words prepared for a specific publication • Captioned photograph – A photo with a brief description of its contents • Press conference – A meeting used to announce a major news event

24. After Reviewing This Chapter You Should: • Know the nature and types of advertising. • Understand the major steps in developing an advertising campaign. • Be able to identify who is responsible for developing advertising campaigns. • Recognize the tools used in public relations. • Understand how public relations is used and evaluated.

25. Key Concepts • Advertising • Institutional Advertising • Advocacy Advertising • Product advertising • Pioneer advertising • Competitive advertising • Comparative advertising • Reminder advertising • Reinforcement advertising • Advertising campaign • Target audience • Advertising platform • Advertising appropriation • Objective-and-task approach • Percent-of-sales approach • Competition-matching approach • Arbitrary approach • Media plan • Cost comparison indicator • Regional issues • Copy • Storyboard • Artwork • Illustrations • Layout • Pretest • Consumer jury • Posttest

26. Key Concepts (cont’d) • Recognition test • Unaided recall test • Public relations • Publicity • News release • Feature article • Captioned photograph • Press conference