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Chapter 15 Advertising & PR

Chapter 15 Advertising & PR. Objectives of Advertising. to develop initial demand. INFORM. REMIND. PERSUADE. increase demand for an existing product. to reinforce previous promotions. Advertising and Market Share. New brands spend proportionately more for advertising than old ones.

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Chapter 15 Advertising & PR

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  1. Chapter 15Advertising & PR

  2. Objectives of Advertising to develop initial demand INFORM REMIND PERSUADE increase demand for an existing product to reinforce previous promotions.

  3. 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. • Advertising Response Function

  4. ‘…………………………………..’Function

  5. Advertising Evolution& Effects Ad expenses have risen over the past decade (mature mkt). Ex: Arm & Hammer • U.S. spends more on ads than any other country • GM, P&G, and Time Warner each spend approx. $10 Million a DAY on U.S advertising!!!!!

  6. Major Types of Advertising Enhance ……………… identity ………….. Advertising ………………advertising Pioneering …………….. Advertising Competitive Comparative

  7. What kind?

  8. What kind?

  9. What kind?

  10. 2004 2005 2007 eu

  11. 2009

  12. Types of Ads • Product Ads – promote a specific item • Pioneering: inform/build primary demand for item (intro stage; net phone, and what else??)

  13. Types of Ads • Comparative ads • Specific brand comparison of a specific attribute (Pain relievers and Caffeine) • The Cola Wars! The Beer Wars! The cereal wars! The detergent wars! • Research must support (Listerine and plaque) vs. Any differences?

  14. Competitive (brand) Ads • -Later in PLC • -Selective demand • -Build brand recall • -Create affect 1.6

  15. Advertising Campaign A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals.

  16. Determine the advertising objectives. Make creative decisions. Make media decisions. Evaluate the campaign. Steps in Creating an Advertising Campaign

  17. How do dirty boys get clean?

  18. ProblemSales plateau. 53% of the target (18-34 year old guys) still switched between bars and shower gel, and 33% stuck entirely with their old-fashioned, non-Axe (and lowmargin)bar soap. Objective: To increase Axe Shower Gel occasions by 4% and sales by 13%.

  19. Identify Product Benefits Components of Creative Decisions Develop and Evaluate Advertising Appeals Execute the Message Evaluate the Campaign’s Effectiveness Creative Decisions

  20. Creative decisions • Aha! moment (creative idea) • Sell more Axe Shower Gel by creating a manly shower tool (why the leap?) • Guys wanted: • Something tough to clean them but…not that tough • Something versatile as some parts are sensitive • Something controllable ( to match the level of scrub with their different needs) • ‘because girls notice everything, from head to toe’ • Product benefits? Rough and Gentle scrubbing!!

  21. Common Advertising Appeals Value Product saves, makes, or protects money Health Appeals to body-conscious or health seekers Love or romance Used in selling cosmetics and perfumes Fear Social embarrassment, old age, losing health Reason for use of celebrity spokespeople Admiration 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

  22. What appeal?

  23. Scientific Slice-of-Life Musical Lifestyle Demon- stration Spokes-person/ Testimonial Mood or Image Fantasy Real/ Animated Product Symbols Humorous Executing the Message

  24. What kind of execution? • http://www.youtube.com/watch?v=zu_EKCrjTqg

  25. Cost per Contact Factors Influencing Media Mix Decisions Reach: portion of audience we want to reach Frequency: how often? Audience Selectivity Media Selection Considerations What media?

  26. Types of Media Schedules Continuous Media Schedule Flighted Media Schedule Pulsing Media Schedule Seasonal Media Schedule Media Scheduling

  27. Make media decisions Plus PR

  28. Communication in Ads • Effectiveness – very difficult to measure • Testing improves performance (Dr. Pepper) • Recall of ads may be poor (Infiniti)

  29. Results: Plus: 630,000+ YouTube spot views to date and over 500 comments. • 101 product reviews on Amazon.com, with a 4 star rating average. • 2,839 Facebook requests for a free Detailer and 63,786 Detailer Gifts given. • “Axe Detailer” searches were as popular as (and sometimes more) “Axe Effect” searches – traditionally our biggest hit

  30. The Role of Public Relations Evaluates public attitudes Executes programs to gain public acceptance Identifies issues of public concern Public Relations Can you imagine Axe PR?

  31. FLASH . . . CAR TIPS OVERIN TEST! Consumer Organization Wants Recall. News Release Feature Article Functions of Public Relations Press Relations Product Publicity Corporate Communications Lobbying

  32. Product Placement • Product/Brand Placement • Advertainment • www.bmwfilms.com

  33. PR vs Publicity

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