View
216
Download
0
Category
Preview:
Citation preview
Chapter 15 Version 6e 1©2002 South-Western
chap
ter
Advertising and Public RelationsAdvertising and Public Relations
1515
Prepared byPrepared byDeborah BakerDeborah Baker
Texas Christian UniversityTexas Christian University
Chapter 15 Version 6e 2©2002 South-Western
chap
ter
Learning ObjectivesLearning Objectives
1515
1.1. Discuss the effect of advertising on market Discuss the effect of advertising on market share and consumers.share and consumers.
2. Identify the major types of advertising.2. Identify the major types of advertising.
3. Discuss the creative decisions in 3. Discuss the creative decisions in developing an advertising campaign.developing an advertising campaign.
Chapter 15 Version 6e 3©2002 South-Western
chap
ter
Learning Objectives (continued)Learning Objectives (continued)
1515
4. Describe media evaluation and selection 4. Describe media evaluation and selection techniques.techniques.
5.5. Discuss the role of public relations in the Discuss the role of public relations in the promotional mix.promotional mix.
Chapter 15 Version 6e 4©2002 South-Western
Learning Objective Learning Objective 11
Discuss the effect of advertising Discuss the effect of advertising on market share and consumers.on market share and consumers.
Chapter 15 Version 6e 5©2002 South-Western
AdvertisingAdvertising
U.S. advertising spending exceeds $215 billion per year
Industry employs only 272,000
Ad budgets of some firms exceed over $2 billion per year
11
Chapter 15 Version 6e 6©2002 South-Western
Advertising and Market ShareAdvertising 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.
11
Chapter 15 Version 6e 7©2002 South-Western
Advertising and the ConsumerAdvertising and the Consumer
Average U.S. citizen is exposed to hundreds of ads each day.
Advertising may change a consumer’s attitude toward a product.
Advertising can affect consumer ranking of brand attributes.
11
Chapter 15 Version 6e 8©2002 South-Western
Learning Objective Learning Objective 22
Identify the major types of advertising.Identify the major types of advertising.
Chapter 15 Version 6e 9©2002 South-Western
Major Types of AdvertisingMajor Types of Advertising
InstitutionalAdvertisingInstitutionalAdvertising
Designed to enhance a company’s image rather than promote a
particular product.
Designed to enhance a company’s image rather than promote a
particular product.
ProductAdvertising
ProductAdvertising
Designed to tout the benefits of a specific good or service.
Designed to tout the benefits of a specific good or service.
22
Chapter 15 Version 6e 10©2002 South-Western
Major Types of AdvertisingMajor Types of Advertising22
Enhance corporation’s identify
Enhance corporation’s identify
PioneeringPioneering
CompetitiveCompetitive
ComparativeComparative
ProductProductAdvertisingAdvertising
ProductProductAdvertisingAdvertising
InstitutionalInstitutionalAdvertisingAdvertisingInstitutionalInstitutionalAdvertisingAdvertising
Advocacy advertisingAdvocacy advertising
Chapter 15 Version 6e 11©2002 South-Western
Product AdvertisingProduct Advertising
PioneeringPioneeringPioneeringPioneering• Stimulates primary demand for
new product or category
CompetitiveCompetitiveCompetitiveCompetitive• Influence 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 if
competition is strong.
22
Chapter 15 Version 6e 12©2002 South-Western
Learning Objective Learning Objective
Discuss the creative decisions Discuss the creative decisions in developing an advertising campaignin developing an advertising campaign
33
Chapter 15 Version 6e 13©2002 South-Western
Advertising CampaignAdvertising Campaign
A series of related
advertisements focusing
on a common theme,
slogan, and set of
advertising appeals.
33
Chapter 15 Version 6e 14©2002 South-Western
Steps in Creating an Steps in Creating an Advertising CampaignAdvertising Campaign
Determine the advertising objectives.
Make creative decisions. Make media decisions.
Evaluate the campaign.
33
Chapter 15 Version 6e 15©2002 South-Western
Setting Objectives:Setting Objectives:The DAGMAR ApproachThe DAGMAR Approach
33
Define Target Audience
Define Target Audience
Define DesiredPercentage
Change
Define DesiredPercentage
Change
Define the Time Frame for Change Define the Time
Frame for Change
Goal ofGoal ofAdvertising Advertising ObjectivesObjectives
Goal ofGoal ofAdvertising Advertising ObjectivesObjectives
Chapter 15 Version 6e 16©2002 South-Western
Creative DecisionsCreative Decisions33
Componentsof
Creative Decisions
Componentsof
Creative Decisions
Develop and EvaluateAdvertising Appeals
Develop and EvaluateAdvertising Appeals
Execute the Message
Execute the Message
Evaluate theCampaign’s Effectiveness
Evaluate theCampaign’s Effectiveness
Identify Product Benefits
Identify Product Benefits
Chapter 15 Version 6e 17©2002 South-Western
Identify Product BenefitsIdentify Product Benefits33
“Sell the Sizzle, not the Steak”
Sell product’s benefits, not its attributes
A benefit should answer “What’s in it for me?”
Ask “So?” to determine if it is a benefit
Chapter 15 Version 6e 18©2002 South-Western
Advertising AppealAdvertising Appeal33
Reason for a person
to buy a product.
Chapter 15 Version 6e 19©2002 South-Western
Common Advertising AppealsCommon Advertising Appeals33
Profit Profit
HealthHealth
Love or romanceLove or romance
FearFear
AdmirationAdmiration
ConvenienceConvenience
Fun and pleasureFun and pleasure
Vanity and egotism Vanity and egotism
Environmental ConsciousnessEnvironmental Consciousness
Product saves, makes, or protects money Product saves, makes, or protects money
Appeals to body-conscious or health seekersAppeals to body-conscious or health seekers
Used in selling cosmetics and perfumesUsed in selling cosmetics and perfumes
Social embarrassment, old age, losing health Social embarrassment, old age, losing health
Reason for use of celebrity spokespeopleReason for use of celebrity spokespeople
Used for fast foods and microwave foodsUsed for fast foods and microwave foods
Key to advertising vacations, beer, parksKey to advertising vacations, beer, parks
Used for expensive or conspicuous items Used for expensive or conspicuous items
Centers around environmental protectionCenters around environmental protection
Chapter 15 Version 6e 20©2002 South-Western
Unique Selling PropositionUnique Selling Proposition33
Desirable, exclusive, and
believable advertising
appeal selected as the
theme for a campaign.
Chapter 15 Version 6e 21©2002 South-Western
Executing the MessageExecuting the Message
Mood or Image
Mood or Image
MusicalMusical
Demon-stration
Demon-stration
ScientificScientific
Real/AnimatedProductSymbols
Real/AnimatedProductSymbols
FantasyFantasy
LifestyleLifestyleSlice-of-LifeSlice-of-Life
HumorousHumorous
CommonCommonExecutionalExecutional
StylesStyles
CommonCommonExecutionalExecutional
StylesStyles
Spokes-person/
Testimonial
33
Chapter 15 Version 6e 22©2002 South-Western
Learning Objective Learning Objective
Describe media evaluation Describe media evaluation and selection techniques.and selection techniques.
44
Chapter 15 Version 6e 23©2002 South-Western
Media TypesMedia TypesNewspapersNewspapers
MagazinesMagazines
RadioRadio
TelevisionTelevision
OutdoorOutdoor
InternetInternet
Alternative MediaAlternative Media
Major Types Major Types ofof
AdvertisingAdvertisingMediaMedia
Major Types Major Types ofof
AdvertisingAdvertisingMediaMedia
44
Chapter 15 Version 6e 24©2002 South-Western
Advertising Spending for 1999 Advertising Spending for 1999
MagazineYellow PagesInternetRadioTelevisionOutdoorNewspaper
MagazineYellow PagesInternetRadioTelevisionOutdoorNewspaper
44
Chapter 15 Version 6e 25©2002 South-Western
NewspapersNewspapers44
AdvantagesAdvantagesAdvantagesAdvantages
Year-round readership
Geographic selectivity
Immediacy
High individual market coverage
Short lead time
DisadvantagesDisadvantagesDisadvantagesDisadvantages
Limited demographic selectivity
Little color
May be expensive
Low pass-along rate
Clutter
Mass market medium
Chapter 15 Version 6e 26©2002 South-Western
Cooperative AdvertisingCooperative Advertising
An arrangement in which
the manufacturer and the
retailer split the costs
of advertising the
manufacturer’s brand.
44
Chapter 15 Version 6e 27©2002 South-Western
MagazinesMagazines44
Good reproduction
Demographic selectivity
Regional/local selectivity
Long advertising life
High pass-along rate
AdvantagesAdvantagesAdvantagesAdvantages
Higher cost per contact
Long-term advertiser commitments
Slow audience build-up
Limited demonstration capabilities
Lack of urgency
Long lead time
DisadvantagesDisadvantagesDisadvantagesDisadvantages
Chapter 15 Version 6e 28©2002 South-Western
RadioRadio44
AdvantagesAdvantagesAdvantagesAdvantages
Selectivity and audience segmentation
Immediate and portable
Geographic flexibility
Entertainment carryover
Short-term ad commitments
DisadvantagesDisadvantagesDisadvantagesDisadvantages
No visual treatment
Short advertising life
High frequency to generate retention
Commercial clutter
Background distractions
Chapter 15 Version 6e 29©2002 South-Western
TelevisionTelevision44
AdvantagesAdvantagesAdvantagesAdvantages
Wide diverse audience Low cost per thousand Creative and
demonstrative Immediacy of messages Entertainment carryover Demographic selectivity
with cable
DisadvantagesDisadvantagesDisadvantagesDisadvantages
Short life of message Expensive with high
campaign cost Little demographic
selectivity with network Long-term advertiser
commitments Long lead times Clutter
Chapter 15 Version 6e 30©2002 South-Western
Outdoor MediaOutdoor Media44
AdvantagesAdvantagesAdvantagesAdvantages
High exposure frequency
Moderate cost
Flexibility
Geographic selectivity
Broad, diverse market
DisadvantagesDisadvantagesDisadvantagesDisadvantages
Short message
Lack of demographic selectivity
High “noise” level
Chapter 15 Version 6e 31©2002 South-Western
Internet and World Wide WebInternet and World Wide Web44
Fast growing
Ability to reach narrow target audience
Short lead time
Moderate cost
AdvantagesAdvantagesAdvantagesAdvantages
Difficult to measure ad effectiveness and ROI
Ad exposure relies on “click through”
Not all consumers have access to internet
DisadvantagesDisadvantagesDisadvantagesDisadvantages
Chapter 15 Version 6e 32©2002 South-Western
Alternative MediaAlternative Media
Ads in Movies and Videos
Ads in Movies and Videos
Interactive KiosksInteractive Kiosks
Computer Screen Savers
Computer Screen Savers
Video Shopping CartsVideo Shopping Carts
Fax MachinesFax Machines
Examples ofExamples ofAlternative MediaAlternative Media
Examples ofExamples ofAlternative MediaAlternative Media
44
Chapter 15 Version 6e 33©2002 South-Western
Media Selection ConsiderationsMedia Selection Considerations
Cost per ContactCost per Contact
FactorsInfluencingMedia Mix Decisions
FactorsInfluencingMedia Mix Decisions
ReachReach
FrequencyFrequency
Audience SelectivityAudience Selectivity
44
Chapter 15 Version 6e 34©2002 South-Western
Media Selection ConsiderationsMedia Selection Considerations
Cost perCost perContactContact
Cost perCost perContactContact
ReachReachReachReach
FrequencyFrequencyFrequencyFrequency
AudienceAudienceSelectivitySelectivityAudienceAudienceSelectivitySelectivity
The cost of reaching one member of the target market.
The cost of reaching one member of the target market.
The number of target consumers exposed to a commercial at least
once during a time period.
The number of target consumers exposed to a commercial at least
once during a time period.
The number of times an individual is exposed to a message during a
time period.
The number of times an individual is exposed to a message during a
time period.
The ability of an advertising medium to reach a precisely
defined market.
The ability of an advertising medium to reach a precisely
defined market.
44
Chapter 15 Version 6e 35©2002 South-Western
Media SchedulingMedia Scheduling
Types of Types of Media SchedulesMedia Schedules
Types of Types of Media SchedulesMedia Schedules
Continuous Media ScheduleContinuous Media Schedule
Flighted Media ScheduleFlighted Media Schedule
Pulsing Media SchedulePulsing Media Schedule
Seasonal Media ScheduleSeasonal Media Schedule
44
Chapter 15 Version 6e 36©2002 South-Western
Media SchedulingMedia Scheduling
ContinuousContinuousMedia ScheduleMedia Schedule
ContinuousContinuousMedia ScheduleMedia Schedule
Flighted Flighted Media ScheduleMedia Schedule
Flighted Flighted Media ScheduleMedia Schedule
PulsingPulsingMedia ScheduleMedia Schedule
PulsingPulsingMedia ScheduleMedia Schedule
SeasonalSeasonalMedia ScheduleMedia Schedule
SeasonalSeasonalMedia ScheduleMedia Schedule
Advertising is run steadily throughout the period.
Advertising is run steadily throughout the period.
Advertising is run heavily every other month or every two weeks.Advertising is run heavily every other month or every two weeks.
Advertising combines continuous scheduling with flighting.
Advertising combines continuous scheduling with flighting.
Advertising is run only when the product is likely to be used.
Advertising is run only when the product is likely to be used.
44
Chapter 15 Version 6e 37©2002 South-Western
Learning Objective Learning Objective
Discuss the role of public relations Discuss the role of public relations in the promotional mix.in the promotional mix.
55
Chapter 15 Version 6e 38©2002 South-Western
Public RelationsPublic Relations55
Evaluates public attitudes
Evaluates public attitudes
Identifies issues of public concernIdentifies issues of public concern
Executes programs to gain
public acceptance
Executes programs to gain
public acceptance
The Role of The Role of Public RelationsPublic Relations
The Role of The Role of Public RelationsPublic Relations
Chapter 15 Version 6e 39©2002 South-Western
Functions of Public RelationsFunctions of Public Relations
Press Relations Press Relations Press Relations Press Relations
Product PublicityProduct PublicityProduct PublicityProduct Publicity
Corporate CommunicationCorporate CommunicationCorporate CommunicationCorporate Communication
Public AffairsPublic AffairsPublic AffairsPublic Affairs
LobbyingLobbyingLobbyingLobbying
Employee and Investor RelationsEmployee and Investor RelationsEmployee and Investor RelationsEmployee and Investor Relations
Crisis ManagementCrisis ManagementCrisis ManagementCrisis Management
55
Chapter 15 Version 6e 40©2002 South-Western
Public Relations ToolsPublic Relations Tools
ToolsToolsUsed ByUsed By
PRPRProfessionalsProfessionals
ToolsToolsUsed ByUsed By
PRPRProfessionalsProfessionals
Product PlacementProduct Placement
Consumer EducationConsumer Education
Event SponsorshipEvent Sponsorship
Issue SponsorshipIssue Sponsorship
Internet Web SitesInternet Web Sites
New Product PublicityNew Product Publicity
55
Chapter 15 Version 6e 41©2002 South-Western
Managing Unfavorable PublicityManaging Unfavorable Publicity55
A coordinated effort to
handle the effects of
unfavorable publicity or of
an unfavorable event.
CrisisCrisis
ManagementManagement
Recommended