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MKTG. Lamb, Hair, McDaniel 2008-2009. 15. CHAPTER. Advertising and Public Relations. Designed by Amy McGuire, B-books, Ltd. Prepared by Deborah Baker, Texas Christian University. Learning Outcomes. Discuss the effects of advertising on market share and consumers

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MKTG

Lamb, Hair, McDaniel 2008-2009

15

CHAPTER

Advertising and

Public Relations

Designed by

Amy McGuire, B-books, Ltd.

Prepared by

Deborah Baker, Texas Christian University


Learning outcomes
Learning Outcomes

Discuss the effects of advertising

on market share and consumers

Identify the major types of advertising Discuss the creative decisions in

developing an advertising campaign

LO1

LO2

LO3


Learning outcomes1
Learning Outcomes

Describe media evaluation

and selection techniques

Discuss the role of public relations in the promotional mix

LO4

LO5


The effects of advertising

U.S. advertising was almost $300 billion in 2006

In that same year, 40 U.S. companies spent over $1 billion each

The advertising industry is small—only 150,000 employed by the 12,000 advertising agencies

Ad budgets of some firms are almost $4 billion annually

The Effects of Advertising

LO1


The effects of advertising1
The Effects of Advertising

Top Ten Leaders by U.S. Advertising Spending

LO1

Source: Advertising Age, June 25, 2007


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.

Beyond a certain level of spending, diminishing returns set in.

New brands require higher spending to reach a minimum level of exposure needed to affect purchase habits.

Advertising and Market Share

LO1


The effects of advertising on consumers
The Effects of Advertising more for advertising and sales promotion than those with a large market share.on Consumers

  • The average U.S. citizen is exposed to hundreds of ads each day.

  • Advertising may change a consumer’s negative attitude toward a product, or reinforce a positive attitude.

  • Advertising can affect consumer ranking of a brand’s attributes.

  • LO1


    Review learning outcome
    REVIEW LEARNING OUTCOME more for advertising and sales promotion than those with a large market share.

    LO1

    Effects of Advertising


    Major types of advertising

    Institutional more for advertising and sales promotion than those with a large market share.

    Advertising

    Enhances a company’s image rather than promotes a particular product.

    Product

    Advertising

    Touts the benefits of a specific good or service.

    Major Types of Advertising

    LO2


    Major types of advertising1

    Corporate identity more for advertising and sales promotion than those with a large market share.

    Institutional

    Advertising

    Advocacy advertising

    Pioneering

    Product

    Advertising

    Competitive

    Comparative

    Major Types of Advertising

    LO2


    Product advertising

    Pioneering

    • Influences demand for brand in the growth phase of the PLC

    • Often uses emotional appeal

    Competitive

    • Compares two or more competing brands’ product attributes

    • Used if growth is sluggish, or if competition is strong

    Comparative

    Product Advertising

    http://www.pizzahut.com

    http://www.papajohns.com

    LO2

    Online


    Review learning outcome1
    REVIEW LEARNING OUTCOME more for advertising and sales promotion than those with a large market share.

    LO2

    The Major Types of Advertising


    Creative decisions in advertising
    Creative Decisions in Advertising more for advertising and sales promotion than those with a large market share.

    AdvertisingCampaign

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

    LO3


    Creative decisions in advertising1

    Determine the more for advertising and sales promotion than those with a large market share.

    advertising objectives

    Make media decisions

    Make creative decisions

    Evaluate the campaign

    Creative Decisions in Advertising

    LO3


    Setting objectives the dagmar approach

    Define target audience more for advertising and sales promotion than those with a large market share.

    Define desired percentage change

    Define the time frame for change

    Setting Objectives: The DAGMAR Approach

    LO3


    Creative decisions

    Identify product benefits more for advertising and sales promotion than those with a large market share.

    Develop and evaluate advertising appeals

    Execute the message

    Evaluate the campaign’s effectiveness

    Creative Decisions

    LO3


    Identify product benefits
    Identify Product Benefits more for advertising and sales promotion than those with a large market share.

    • “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

    LO3


    Identify product benefits1

    Attribute more for advertising and sales promotion than those with a large market share.

    “Powerade’s new line has been reformulated to combine the scientific benefits of sports drinks with B vitamins and to speed up energy metabolism.”

    Benefit

    “So, you’ll satisfy your thirst with a great-tasting drink that will power you throughout the day.”

    Identify Product Benefits

    - So?

    LO3


    Advertising appeals

    Profit more for advertising and sales promotion than those with a large market share.

    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

    Key to advertising vacations, beer, parks

    Fun and pleasure

    Vanity and egotism

    Used for expensive or conspicuous items

    Environmental

    Consciousness

    Centers around environmental protection

    Advertising Appeals

    LO3


    Unique selling proposition
    Unique Selling Proposition more for advertising and sales promotion than those with a large market share.

    Unique SellingProposition

    A desirable, exclusive, and believable advertising appeal selected as the theme for a campaign.

    LO3


    Executing the message

    Scientific more for advertising and sales promotion than those with a large market share.

    Slice-of-Life

    Musical

    Lifestyle

    Demon-

    stration

    Spokes-person/

    Testimonial

    Mood or Image

    Fantasy

    Real/

    Animated

    Product

    Symbols

    Humorous

    Executing the Message

    LO3


    Review learning outcome2

    Set more for advertising and sales promotion than those with a large market share.advertising

    objectives

    Identify benefits

    Develop appeal

    Execute message

    Evaluatingresults helpsmarketersadjust objectivesfor futurecampaigns

    Evaluate campaign results

    REVIEW LEARNING OUTCOME

    LO3

    Creative Decisions for Ad Campaign


    Media decisions in advertising

    Newspapers more for advertising and sales promotion than those with a large market share.

    Direct Mail

    Magazines

    Trade Exhibits

    Yellow Pages

    Cooperative Advertising

    Internet

    Brochures

    Radio

    Coupons

    Television

    Catalogs

    Outdoor Media

    Special Events

    Media Decisions in Advertising

    Monitored Media

    Unmonitored Media

    LO4


    Major advertising media

    Newspapers more for advertising and sales promotion than those with a large market share.

    Magazines

    Radio

    Television

    Outdoor Media

    Yellow Pages

    Internet

    Major Advertising Media

    LO4


    Newspapers
    Newspapers more for advertising and sales promotion than those with a large market share.

    Advantages

    Disadvantages

    • Geographic selectivity

    • Short-term advertiser commitments

    • News value and immediacy

    • Year-round readership

    • High individual market coverage

    • Co-op and local tie-in availability

    • Short lead time

    • Limited demographic selectivity

    • Limited color

    • Low pass-along rate

    • May be expensive

    LO4


    Cooperative advertising

    An arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer’s brand.

    Cooperative Advertising

    CooperativeAdvertising

    LO4


    Magazines
    Magazines split the costs of advertising the manufacturer’s brand.

    Advantages

    Disadvantages

    • Good reproduction

    • Demographic selectivity

    • Regional/local selectivity

    • Long advertising life

    • High pass-along rate

    • Long-term advertiser commitments

    • Slow audience build-up

    • Limited demonstration capabilities

    • Lack of urgency

    • Long lead time

    LO4


    Radio
    Radio split the costs of advertising the manufacturer’s brand.

    Advantages

    Disadvantages

    • No visual treatment

    • Short advertising life

    • High frequency to generate comprehension and retention

    • Background distractions

    • Commercial clutter

    • Low cost

    • Immediacy of message

    • Short notice scheduling

    • No seasonal audience change

    • Highly portable

    • Short-term advertiser commitments

    • Entertainment carryover

    LO4


    Television
    Television split the costs of advertising the manufacturer’s brand.

    Advantages

    Disadvantages

    • Wide, diverse audience

    • Low cost per thousand

    • Creative opportunities for demonstration

    • 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 advertiser commitments

    • Long lead times for production

    • Commercial clutter

    LO4


    Outdoor media
    Outdoor Media split the costs of advertising the manufacturer’s brand.

    Advantages

    Disadvantages

    • Repetition

    • Moderate cost

    • Flexibility

    • Geographic selectivity

    • Short message

    • Lack of demographic selectivity

    • High “noise” level

    LO4


    Internet

    http://www.fox.com split the costs of advertising the manufacturer’s brand.

    http://www.abc.com

    Online

    Internet

    Advantages

    Disadvantages

    • Fast growing

    • Ability to reach narrow target audience

    • Short lead time

    • Moderate cost

    • Difficult to measure ad effectiveness and ROI

    • Ad exposure relies on “click through” from banner ads

    • Not all consumers have access to Internet

    LO4


    Alternative media

    Shopping Carts split the costs of advertising the manufacturer’s brand.

    Floor Ads

    Computer

    Screen Savers

    Subway

    Tunnel Ads

    DVDs

    Video Game Ads

    Interactive Kiosks

    Cell Phone Ads

    Ads in Movies

    Advertainments

    Alternative Media

    LO4


    Qualitative factors in media selection

    Attention to the commercial and the program split the costs of advertising the manufacturer’s brand.

    Program liking

    Lack of distractions

    Other audience behaviors

    Qualitative Factors in Media Selection

    LO4


    Media scheduling
    Media Scheduling split the costs of advertising the manufacturer’s brand.

    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.

    LO4


    Review learning outcome3

    Type: split the costs of advertising the manufacturer’s brand.

    Newspaper

    Magazine

    Radio

    Television

    Outdoor

    Internet

    Alternative

    Scheduling:

    continuous

    flighted

    pulsing

    seasonal

    Winter Spring Summer Fall

    REVIEW LEARNING OUTCOME

    LO4

    Media Evaluation and Selection

    Considerations:

    Mix How much of each?

    Cost per contact How much per person?

    Reach How many people?

    Frequency How often?

    Audience How targeted is

    selectivity audience?


    Public relations

    LO split the costs of advertising the manufacturer’s brand.5

    Public Relations

    Public

    Relations

    The element in the promotional mix that:

    • evaluates public attitudes

    • identifies issues of public concern

    • executes programs to gain public acceptance


    Functions of public relations

    Press relations split the costs of advertising the manufacturer’s brand.

    Product publicity

    Corporate communication

    Public affairs

    Lobbying

    Employee and investor relations

    Crisis management

    LO5

    Functions of Public Relations


    Public relations tools

    New product publicity split the costs of advertising the manufacturer’s brand.

    Product placement

    Consumer education

    Event sponsorship

    Issue sponsorship

    Internet Web sites

    http://www.vw.com

    http://www.chevrolet.com

    Online

    LO5

    Public Relations Tools


    Managing unfavorable publicity

    A coordinated effort to handle the effects of unfavorable publicity or of an unfavorable event.

    LO5

    Managing Unfavorable Publicity

    Crisis

    Management


    Review learning outcome4
    REVIEW LEARNING OUTCOME publicity or of an unfavorable event.

    LO5

    The Role of Public Relations


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