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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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slide1
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 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

LO1

Effects of Advertising

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.

Major Types of Advertising

LO2

major types of advertising1
Corporate identity

Institutional

Advertising

Advocacy advertising

Pioneering

Product

Advertising

Competitive

Comparative

Major Types of Advertising

LO2

product advertising
Stimulates primary demand for new product or category
  • Used in the PLC introductory stage

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

LO2

The Major Types of Advertising

creative decisions in advertising
Creative Decisions in Advertising

AdvertisingCampaign

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

LO3

creative decisions in advertising1
Determine the

advertising objectives

Make media decisions

Make creative decisions

Evaluate the campaign

Creative Decisions in Advertising

LO3

setting objectives the dagmar approach
Define target audience

Define desired percentage change

Define the time frame for change

Setting Objectives: The DAGMAR Approach

LO3

creative decisions
Identify product benefits

Develop and evaluate advertising appeals

Execute the message

Evaluate the campaign’s effectiveness

Creative Decisions

LO3

identify product benefits
Identify Product Benefits
  • “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

“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

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

Unique SellingProposition

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

LO3

executing the message
Scientific

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
Setadvertising

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

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

Magazines

Radio

Television

Outdoor Media

Yellow Pages

Internet

Major Advertising Media

LO4

newspapers
Newspapers

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

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

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

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

Advantages

Disadvantages

  • Repetition
  • Moderate cost
  • Flexibility
  • Geographic selectivity
  • Short message
  • Lack of demographic selectivity
  • High “noise” level

LO4

internet
http://www.fox.com

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

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

Program liking

Lack of distractions

Other audience behaviors

Qualitative Factors in Media Selection

LO4

media scheduling
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.

LO4

review learning outcome3
Type:

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
LO5Public 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

Product publicity

Corporate communication

Public affairs

Lobbying

Employee and investor relations

Crisis management

LO5

Functions of Public Relations
public relations tools
New product publicity

Product placement

Consumer education

Event sponsorship

Issue sponsorship

Internet Web sites

http://www.vw.com

http://www.chevrolet.com

Online

LO5

Public Relations Tools
review learning outcome4
REVIEW LEARNING OUTCOME

LO5

The Role of Public Relations

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