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. Discussion Question • By clicking on the @ symbols below, visit the Eddie Bauer and L.L. Bean Web Sites. After reviewing the Sites, identify the target audiences for each. @ @

9. 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

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

11. 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

12. Advertising Appropriation

13. 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

14. Advertising Appropriation

15. Discussion Question • In general, do you think advertising is a function of sales OR sales are a function of advertising? • Given your answer, which approach to determining an advertising appropriation do you think is the best approach?

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

17. Media Selection Media Selection Valpak selected magazines as one of the media in its media plan.

18. Advantages and Disadvantages of Major Advertising Media

19. 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.

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

21. 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.

22. 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

23. 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

24. Who Develops the Advertising Campaigns? • Internal to the firm: Individuals or advertising groups • External to the firm: Advertising agencies

25. 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.

26. 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.

27. Possible Issues for News Releases

28. 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

29. Public Relations • Evaluating public relations effectiveness - Environmental monitoring - Public relations audit - Social audit • Dealing with unfavorable public relations - Have predetermined plans - Establish policies and procedures for reducing the adverse impact of news coverage of a crisis - Be forthright with the press and public - respond quickly and honestly

30. Discussion Question • Assume that you are responsible for handling negative publicity for Toyota Motor Company, and it is discovered that one model of your vehicles has a hugely disproportionate rate of accidents which seems to be related to the brand of tires installed on those vehicles. The rate of accidents, many of which involved deaths, becomes an international news event. How would you handle this situation?

31. 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.

32. 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

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