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Learn about the importance of advertising and public relations in marketing, and how to set objectives, allocate budget, develop strategies, and utilize effective tools in these areas.
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Chapter Fifteen Advertising and Public Relations
Advertising and Public Relations Topic Outline Advertising • Objectives • Budget • Strategy • Effectives Public Relations • Role and impact • Tools
The Promotion Mix • Promotion Mix • Advertising • Publicity • Packaging • Direct marketing • Sponsorship • Personal selling • Sales promotion • Public relation Marketing Mix P1: Product P2: Place P3: Price P4:Promotion
Advertising Any Paid Form of Nonpersonal Presentation by an Identified Sponsor. Short-term Incentives to Encourage Trial or Purchase. SalesPromotion Protect and/or Promote Company’s Image/products. Public Relations Personal Presentations. Direct Communications With Individuals to Obtain an Immediate Response. Direct Marketing The Marketing Communications Mix Personal Selling
Advertising • Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. • 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 Departments in Larger Companies Sales Departments in Small Companies Advertising Agency Firm that Assists Companies in Planning, Preparing, Implementing and Evaluating Their Advertising Programs. dr wady
MEASUREEMENT MISSION MEDIA The Five Ms Of Advertising money MEEEAGE
The meaning of The Five Ms Of Advertising What are the advertising objective? Mission How much can be spend ? money What message should send? Message 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 Objectives are classified by primary purpose Inform Persuade Remind Setting Advertising Objectives An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific time
Setting Objectives Informative Advertising Build Primary Demand Persuasive Advertising Build Selective Demand Comparison Advertising Compares One Brand to Another Reminder Advertising Keeps Consumers Thinking About a Product.
Advertising 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 advertisingis important with increased competition to build selective demand Reminder advertisingis important with mature products to help maintain customer relationships and keep customers thinking about the product Setting 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 Differentiation Stage in the Product Life Cycle Factors in Setting the Advertising Budget Advertising Frequency Market Share Competition and Clutter
Advertising 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 Setting the Advertising Budget
Advertising Advertising strategy is the strategy by which the company accomplishes its advertising objectives and consists of: Creating advertising messages Selecting advertising media Developing Advertising Strategy
Plan a Message Strategy General Message to Be Communicated to Customers Click to add title Advertising Strategy Creating Advertising Messages Develop a Message Focus on Customer Benefits Creative Concept “Big Idea” Visualization or Phrase Combination of Both. Advertising Appeals Meaningful Believable Distinctive
Advertising Advertisements need to break through the clutter: Gain attention Communicate well Creating the Advertising Message
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 Creating the Advertising Message
Advertising Creating the Advertising Message
Advertising Message strategy is the general message that will be communicated to consumers Identifies consumer benefits Creating the Advertising Message
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 Creating the Advertising Message
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. Creating the Advertising Message
Advertising Creating the Advertising Message
Advertising Message execution also includes: Tone • Positive or negative Attention-getting words Format • Illustration • Headline • Copy Creating the Advertising Message
Advertising YouTube videos Brand Web site contests Positives • Low expense • New creative ideas • Fresh perspective on brand • Boost consumer involvement Creating the Advertising Message Consumer Generated Messages
Step 1. Decide on Reach, Frequency, and Impact Step 2. Choosing Among Major Media Types Advertising StrategySelecting Advertising Media 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 Selecting Advertising Media
Step 2. Choosing Among Major Media Types • 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.
Step 2. Choosing Among Major Media Types • Target audience media habits. • Product characteristics. • Message characteristics. • Cost.
Advertising Selecting media vehiclesinvolves decisions presenting the media effectively and efficiently to the target customer and must consider the message’s: Impact Effectiveness Cost Step 3
Step 3 • In selecting specific media vehicles, the media planner must balance media costs against several effectiveness factors such: • The planner should evaluate the media vehicle’s audience quality • The media planner should consider audience engagement • 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 Selecting Advertising Media
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 Program Evaluation Advertising Evaluation Communication Effects Is the Ad Communicating Well? Sales Effects Is the Ad Increasing Sales?
Advertising 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 Evaluating the Effectiveness and Return on Advertising Investment
Advertising Organizing for advertising • Agency vs. in-house International advertising decisions • Standardization Developing and Advertising Programs Other Advertising Considerations
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 Lower cost than advertising Stronger impact on public awareness than advertising The Role and Impact of Public Relations
Public Relations Major Public Relations Tools
Setting Public Relations Objectives Choosing the Public Relations Messages and Vehicles Click to add title Major Public Relations Decisions Implementing the Public Relations Plan Evaluating Public Relations Results