Transcript 1133273874_334261

Introduction
to
Chapter 17: Advertising and Public
Relations
Designed & Prepared by Laura Rush
B-books, Ltd.
Copyright Cengage Learning 2013
All Rights Reserved
1
Learning Outcomes
LO1
Discuss the effects of advertising on market
share and consumers
LO2
Identify the major types of advertising
LO3
Discuss the creative decisions in developing
an advertising campaign
LO4
Describe media evaluation and
selection techniques
LO5
Discuss the role of public relations
in the promotional mix
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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 to reach
a minimum level of exposure needed to affect
purchase habits.
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Major Types of Advertising
Institutional Advertising- Enhances
a company’s image rather than
promotes a particular product.
Product Advertising- Touts the
benefits of a specific good or
service.
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Product Advertising
Pioneering
Competitive
Comparative
 Stimulates primary demand for
new product or category
 Used in the PLC introductory stage
 Influences demand for brand in the
growth phase of the PLC
 Often uses emotional appeal
 Compares two or more competing
brands’ product attributes
 Used if growth is sluggish, or if
competition is strong
Online
http://www.pizzahut.com
http://www.papajohns.com
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5
Creative Decisions in
Advertising
Advertising Campaign - A series
of related advertisements
focusing on a common theme,
slogan, and set of
advertising appeals.
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Setting Objectives:
The DAGMAR Approach
Define target audience
Define desired percentage change
Define the time frame for change
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Creative Decisions
Identify
product benefits
Develop and evaluate
advertising appeals
Execute
the message
Evaluate the
campaign’s effectiveness
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Identify Product Benefits
Attribute
“SoBe Life Water has reformulated five
delicious, low-calorie flavors, each
infused with essential vitamins and
healthy herbal ingredients.”
- So?
Benefit
“SoBe Life Water is not only an enhanced
water; it is a lifestyle unto itself. It
provides consumers the healthiest, most
fun and refreshing products, delivering
the incredibly positive benefits of
hydration.”
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Advertising Appeals
Profit
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
Admiration
Reason for use of celebrity spokespeople
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
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Unique Selling Proposition
A desirable, exclusive, and
believable advertising appeal
selected as the theme
for a campaign.
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Media Decisions in Advertising
Monitored Media
Unmonitored Media
Newspapers
Direct Mail
Magazines
Trade Exhibits
Yellow Pages
Cooperative Advertising
Internet
Brochures
Radio
Coupons
Television
Catalogs
Outdoor Media
Special Events
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Major Advertising Media
Newspapers
Magazines
Radio
Television
Outdoor Media
Yellow Pages
Internet
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Cooperative Advertising
An arrangement in which the
manufacturer and the retailer
split the costs of advertising
the manufacturer’s brand.
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Media Selection
• Media Mix – Combination of media to be used for a
promotional campaign
• Cost per contact – The cost of reaching one member of
the target market
• Reach – number of target consumers exposed to a
commercial at least once during a specific period,
usually four weeks
• Frequency – number of times an individual is exposed
to a given message during a specific period
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Qualitative Factors in Media
Selection
• Attention to the commercial
and the program
• Involvement
• Program liking
• Lack of distractions
• Other audience behaviors
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Media Scheduling
Continuous
Media Schedule
Advertising is run steadily
throughout the period.
Flighted
Media Schedule
Advertising is run heavily every
other month or every two weeks.
Pulsing
Media
Schedule
Advertising combines
continuous scheduling with
flighting.
Seasonal
Media Schedule
Advertising is run only when the
product is likely to be used.
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17
Public Relations
The elements in the
promotional mix that:
-evaluate public attitudes,
-identify issues of public concern,
-execute programs to gain
public acceptance.
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Managing Unfavorable Publicity
Crisis Management A coordinated effort to handle
the effects of unfavorable
publicity or of an
unfavorable event.
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