advtg & pr
TRANSCRIPT
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1Copyright 2009 by Cengage Learning Inc. All rights reserved
Designed byEric BrengleB-books, Ltd.
CHAPTER
17
Advertising and Public Relations
Prepared byAmit Shah
Frostburg State University
MarketingLamb, Hair, McDaniel
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Copyright 2009 by Cengage Learning Inc. All rights reserved
Learning Outcomes
2
Discuss the effects of advertising on marketshare and consumers
Identify the major types of advertising
Discuss the creative decisions in developingan advertising campaign
LOI
LO2
LO3
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Learning Outcomes
3
Describe media evaluation andselection techniques
Discuss the role of public relationsin the promotional mix
LO5
LO4
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The Effects of Advertising
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Discuss the effects ofadvertising on
market share and consumers
LOI
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Copyright 2009 by Cengage Learning Inc. All rights reserved
The Effects of Advertising U.S. advertising was forecasted at
nearly $480 billion in 2008
In 2005, 32 companies spent over
$1 billion each
The advertising and marketingservices employ 800,000 people
Ad budgets of some firms are almost$4 billion annually
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LOI
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The Effects of Advertising
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LOI
Top Ten Leaders by U.S.Advertising Spending
Top Ten Leaders by U.S.Advertising Spending
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Advertising and Market Share
New brands with a small market share spend
proportionally more for advertising and sales
promotion than those with a large market share
1. Beyond a certain level of spending,diminishing returns set in.
2. New brands require higher spending toreach a minimum level of exposureneeded to affect purchase habits.
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LOI
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The Effects of Advertisingon Consumers
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LO
I
The average U.S. citizen is exposed tohundreds of ads each day.
Advertising may change a consumersnegative attitude toward a product, orreinforce a positive attitude.
Advertising can affect consumer
ranking of a brands attributes.
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REVIEW LEARNING OUTCOMEEffects of Advertising
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LOI
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Major Types of Advertising
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Identify the major typesof advertising
LO2
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Major Types of Advertising
11
LO2
InstitutionalAdvertisingInstitutionalAdvertising
Enhances a companys imagerather than promotes aparticular product.
Enhances a companys imagerather than promotes aparticular product.
ProductAdvertising
ProductAdvertising
Touts the benefits of aspecific good or service.Touts the benefits of aspecific good or service.
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Major Types of Advertising
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LO2
Corporate identityCorporate identity
PioneeringPioneering
CompetitiveCompetitive
ComparativeComparative
ProductAdvertising
ProductAdvertising
InstitutionalAdvertisingInstitutionalAdvertising
Advocacy
advertising
Advocacy
advertising
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Product Advertising
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LO2
PioneeringPioneeringPioneeringPioneering Stimulates primary demand for
new product or category Used in the PLC introductory stage
CompetitiveCompetitiveCompetitiveCompetitive
Influences demand for brand in the
growth phase of the PLC
Often uses emotional appeal
ComparativeComparativeComparativeComparative Compares two or more competing
brands product attributes
Used if growth is sluggish, or ifcompetition is strong
Online
http://www.pizzahut.comhttp://www.papajohns.com
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REVIEW LEARNING OUTCOMEThe Major Types of Advertising
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LO2
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Creative Decisions in Advertising
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Discuss the creative decisionsin developing an
advertising campaign
LO3
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Creative Decisions in Advertising
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AdvertisingCampaign
AdvertisingCampaign
A series of related
advertisements focusing on a
common theme, slogan, and
set of advertising appeals.
LO3
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Creative Decisions in Advertising
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LO3
Determine theadvertising objectives
Make creative decisions Make media decisions
Evaluate the campaign
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Setting Objectives:The DAGMAR Approach
18LO3
Define target audienceDefine target audience
Define desired percentage changeDefine desired percentage change
Define the time frame for changeDefine the time frame for change
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Creative Decisions
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LO3
Develop and evaluateadvertising appealsDevelop and evaluateadvertising appeals
Executethe message
Executethe message
Evaluate thecampaigns effectiveness
Evaluate thecampaigns effectiveness
Identifyproduct benefits
Identifyproduct benefits
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Identify Product Benefits
Sell the Sizzle, not the Steak
Sell products benefits, not its attributes
A benefit should answerWhats in it for me?
AskS
o?to determineif it is a benefit
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LO3
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Identify Product Benefits
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LO3
Attribute
Benefit
SoBe Life Water has reformulatedfive delicious, low-calorie flavors,
each infused with essential vitamins
and healthy herbal ingredients.
SoBe Life Water is not only anenhanced water; it is a lifestyle unto
itself. It provides consumers thehealthiest, most fun and refreshingproducts, delivering the incredibly
positive benefits of hydration.
- So?
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Advertising Appeals
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LO3
Profit
Health
Love or romance
Fear
Admiration
Convenience
Fun and pleasure
Vanity and egotism
EnvironmentalConsciousness
Product saves, makes, or protects money
Appeals to body-conscious or health seekers
Used in selling cosmetics and perfumes
Social embarrassment, old age, losing health
Reason for use of celebrity spokespeople
Used for fast foods and microwave foods
Key to advertising vacations, beer, parks
Used for expensive or conspicuous items
Centers around environmental protection
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Unique Selling Proposition
23
LO3
Unique SellingProposition
Unique SellingProposition
A desirable, exclusive, and
believable advertising
appeal selected as the
theme for a campaign.
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LO3
Executing the Message
Mood orImage
Mood orImage
MusicalMusical
Demon-strationDemon-stration
ScientificScientific
Real/AnimatedProductSymbols
Real/AnimatedProductSymbols
FantasyFantasy
LifestyleLifestyle
Slice-of-LifeSlice-of-Life
HumorousHumorous
Spokes-person/
Testimonial
Spokes-person/
Testimonial
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REVIEW LEARNING OUTCOMECreative Decisions for Ad Campaign
25
LO3
Setadvertisingobjectives
Identify benefits
Develop appeal
Evaluatecampaign results
Evaluating
results helpsmarketersadjust objectivesfor futurecampaigns
Execute message
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Media Decisions in Advertising
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Describe media evaluationand
selection techniques
LO4
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Media Decisions in Advertising
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LO4
NewspapersNewspapers
MagazinesMagazines
Yellow PagesYellow Pages
InternetInternet
RadioRadio
TelevisionTelevision
Outdoor MediaOutdoor Media
Direct MailDirect Mail
Trade ExhibitsTrade Exhibits
Cooperative AdvertisingCooperative Advertising
BrochuresBrochures
CouponsCoupons
CatalogsCatalogs
Special EventsSpecial Events
Monitored
Media
Monitored
Media Unmonitored
MediaUnmonitored
Media
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Major Advertising Media
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LO4
NewspapersNewspapers
MagazinesMagazines
RadioRadio
TelevisionTelevision
Outdoor MediaOutdoor Media
Yellow PagesYellow Pages
InternetInternet
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Newspapers
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LO4
AdvantagesAdvantages
Geographic selectivity
Short-term advertisercommitments
News value andimmediacy
Year-round readership
High individual market
coverage Co-op and local tie-in
availability
Short lead time
DisadvantagesDisadvantages
Limited demographic
selectivity Limited color
Low pass-along rate
May be expensive
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Cooperative Advertising
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LO4
CooperativeAdvertisingCooperativeAdvertising
An arrangement in which the
manufacturer and the retailer
split the costs of advertising
the manufacturers brand.
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Magazines
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LO4
AdvantagesAdvantages DisadvantagesDisadvantages
Good reproduction
Demographic selectivity
Regional/local selectivity
Long advertising life
High pass-along rate
Long-term advertiser
commitments Slow audience build-up
Limited demonstrationcapabilities
Lack of urgency Long lead time
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Radio
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LO4
AdvantagesAdvantages DisadvantagesDisadvantages
Low cost
Immediacy of message Short notice scheduling
No seasonal audiencechange
Highly portable
Short-term advertisercommitments
Entertainment carryover
No visual treatment
Short advertising life
High frequency togenerate comprehensionand retention
Background distractions
Commercial clutter
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Television
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LO4
AdvantagesAdvantages DisadvantagesDisadvantages
Wide, diverse audience
Low cost per thousand
Creative opportunities fordemonstration
Immediacy of messages
Entertainment carryover
Demographic selectivity
with cable
Short life of message
Consumer skepticism
High campaign cost Little demographic
selectivity with stations
Long-term advertisercommitments
Long lead times forproduction
Commercial clutter
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TV Advertising: Is Less More?
The number of ads in TV shows is alongstanding complaint of viewers andadvertisers.
The media is cluttered and consumerschange channels or speed throughcommercials on a DVR.
Tests are being conducted to featureshorter commercial pods.
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LO4
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Outdoor Media
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LO4
AdvantagesAdvantages DisadvantagesDisadvantages
Repetition
Moderate cost
Flexibility
Geographic selectivity
Short message
Lack of demographicselectivity
High noise level
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Internet
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LO4
AdvantagesAdvantages DisadvantagesDisadvantages
Fast growing
Ability to reach narrowtarget audience
Short lead time
Moderate cost
Difficult to measure adeffectiveness and ROI
Ad exposure relies onclick through frombanner ads
Not all consumers have
access to Internet
Online
http://www.fox.comhttp://www.abc.com
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Videogame Advertising
In 2006, Microsoft acquired Massive inc., a start-up that places ads in video games.
Ads are inserted into thegame environment.
Video games could becomea large new medium foradvertising.
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LO4
SOURCE: Robert A. Guth and Nick Wingfield,Microsofts Massive Move into Game Ads,
Wall Street Journal, April 26,2006, B1.
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Cell Phones
Newest advertising media
Useful for reaching youth market
3 billion cell phone users in the world
In 2006 cell phone ad sales reached over
$400 million in U.S. nearly $900 millionworldwide
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LO4
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Media Selection
Media Mix Combination of media to beused for a promotional campaign
Cost per contact The cost of reaching one
member of the target market
Reach number of target consumersexposed to a commercial at least onceduring a specific period, usually four weeks
Frequency number of times an individual isexposed to a given message during aspecific period
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LO4
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Qualitative Factors in MediaSelection
Attention to the commercialand the program
Involvement
Program liking
Lack of distractions
Other audience behaviors
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LO4
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Media Scheduling
41
LO4
ContinuousMedia Schedule
Flighted
Media Schedule
PulsingMedia Schedule
SeasonalMedia Schedule
Advertising is run steadilythroughout the period.
Advertising is run heavily every
other month or every two weeks.
Advertising combines continuousscheduling with flighting.
Advertising is run only when theproduct is likely to be used.
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REVIEW LEARNING OUTCOMEMedia Evaluation and Selection
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LO4
Type: NewspaperMagazineRadioTelevisionOutdoorInternet
Alternative
Considerations:
Mix How much of each?Cost per contact How much per person?Reach How many people?Frequency How often?
Audience selectivity How targeted is audience?
Scheduling:continuous
flighted
pulsing
seasonal
Winter Spring Summer Fall
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Public Relations
43
Discuss the role ofpublic relations
in the promotional mix
LO5
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Public Relations
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Public RelationsPublic Relations
LO5
The element in the promotional
mix that:
evaluates public attitudes
identifies issues of public concern
executes programs to gain publicacceptance
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Functions of Public Relations
45
LO5
Press relationsPress relations
Product publicityProduct publicity
Corporate communicationCorporate communication
Public affairsPublic affairs
LobbyingLobbying
Employee and investor relationsEmployee and investor relations
Crisis managementCrisis management
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Public Relations Tools
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LO5
Product placementProduct placement
Consumer educationConsumer education
Event sponsorshipEvent sponsorship
Issue sponsorshipIssue sponsorship
Internet Web sitesInternet Web sites
New product publicityNew product publicity
Online
http://www.vw.comhttp://www.chevrolet.com
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Example of Consumer Education
Corporations are teaching publicschool students about personalfinance.
People under age 25 are a fast-
growing group for credit card debtincreases and bankruptcy.
Is it appropriate to use educationalmaterials with a corporate identity?
How should financial literacy betaught?
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LO5
SOURCE: Diya Gullapalli,Your Kids Teacher: The Bank,
Wall Street Journal, April 8-9, 2006, B1.
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Managing Unfavorable Publicity
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CrisisManagement
CrisisManagement
LO5
A coordinated effort to
handle the effects of
unfavorable publicity or of
an unfavorable event.
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REVIEW LEARNING OUTCOMEThe Role of Public Relations
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LO5