Lamb, Hair, McDaniel   CHAPTER 17 Advertising and Public Relations 2010-2011
LO  1  Discuss the effects of advertising on market share and consumers LO  2  Identify the major types of advertising  LO...
The Effects of Advertising Discuss the effects of  advertising on market share and consumers LO 1
The Effects of Advertising <ul><li>U.S. advertising are expected to decline in difficult economic times </li></ul><ul><li>...
Advertising and Market Share <ul><li>New brands with a small market share spend proportionally more for advertising and sa...
The Effects of Advertising  on Consumers <ul><li>The average U.S. citizen is exposed to hundreds of ads each day. </li></u...
REVIEW LEARNING OUTCOME ____ affect how consumers rank brand attributes ____ reinforce positive attitude ____ change negat...
Major Types of Advertising Identify the major types of advertising  LO 2
Major Types of Advertising LO 2 Institutional Advertising Enhances a company’s image  rather than promotes a  particular p...
Major Types of Advertising LO 2 Corporate identity Pioneering Competitive Comparative Product Advertising Institutional Ad...
Product  Advertising LO 2 Pioneering <ul><li>Stimulates primary demand for new product or category </li></ul><ul><li>Used ...
REVIEW LEARNING OUTCOME The Major Types of Advertising LO 2
Creative Decisions in Advertising Discuss the  creative decisions  in developing an  advertising campaign LO 3
Creative Decisions in Advertising A series of related advertisements focusing on a common theme, slogan, and set of advert...
Creative Decisions in Advertising LO 3 Determine the  advertising objectives Make creative decisions Make media decisions ...
Setting Objectives:  The DAGMAR Approach LO 3 Define target audience Define desired percentage change Define the time fram...
Creative Decisions LO 3 Develop and evaluate advertising appeals Execute the message Evaluate the campaign’s effectiveness...
Identify Product Benefits <ul><li>“ Sell the Sizzle, not the Steak”  </li></ul><ul><li>Sell product’s benefits, not its at...
Identify Product Benefits “ So?” LO 3 Attribute Benefit “ Powerade’s new line has been reformulated to combine the scienti...
Advertising Appeals LO 3 Profit  Health Love or romance Fear Admiration Convenience Fun and pleasure Vanity and egotism  E...
Unique Selling Proposition A desirable, exclusive, and believable advertising appeal selected as the theme for a campaign....
Executing the Message LO 3 Mood or Image Musical Demon- stration Scientific Real/ Animated Product Symbols Fantasy Lifesty...
REVIEW LEARNING OUTCOME Creative Decisions for Ad Campaign Set advertising objectives LO 3 Identify benefits Develop appea...
Media Decisions in Advertising Describe media evaluation  and selection techniques LO 4
Media Decisions in  Advertising Monitored Media Unmonitored Media LO 4 Newspapers Magazines Yellow Pages Internet Radio Te...
Major Advertising Media LO 4 Newspapers Magazines Radio Television Outdoor Media Yellow Pages Internet
Newspapers Advantages <ul><li>Geographic selectivity </li></ul><ul><li>Short-term advertiser commitments </li></ul><ul><li...
Cooperative Advertising Cooperative Advertising LO 4 An arrangement in which the manufacturer and the retailer split the c...
Magazines Advantages <ul><li>Good reproduction </li></ul><ul><li>Demographic selectivity </li></ul><ul><li>Regional/local ...
<ul><li>{Contents Brought to you by...} </li></ul><ul><li>The table of contents (TOC) in a magazine commonly appears after...
Radio Advantages <ul><li>Low cost </li></ul><ul><li>Immediacy of message </li></ul><ul><li>Short notice scheduling </li></...
Television Advantages <ul><li>Wide, diverse audience </li></ul><ul><li>Low cost per thousand </li></ul><ul><li>Creative op...
<ul><li>When it comes to advertising, presidential hopefuls continue to favor local TV:  </li></ul><ul><ul><li>Nearly 95 p...
Outdoor Media Advantages <ul><li>Repetition </li></ul><ul><li>Moderate cost </li></ul><ul><li>Flexibility </li></ul><ul><l...
<ul><li>In 1970, billboards accounted for 80 percent of outdoor advertising </li></ul><ul><li>In 2006, billboards accounte...
Internet Advantages <ul><li>Fast growing </li></ul><ul><li>Ability to reach narrow target audience </li></ul><ul><li>Short...
<ul><li>Third-party ad networks provide most of today’s Web ads. These ad networks use cookies to track your Web preferenc...
<ul><li>Google's total revenue in 2008 was $21.8 billion and of this, $21.1 billion was derived from advertising. At the e...
Alternative Media LO 4 Ads in Movies Interactive Kiosks Computer  Screen Savers Shopping Carts DVDs Advertainments Cell Ph...
Qualitative Factors in Media Selection <ul><li>Attention to the commercial and the program </li></ul><ul><li>Program likin...
Media Scheduling Continuous Media Schedule Flighted  Media Schedule Pulsing Media Schedule Seasonal Media Schedule Adverti...
REVIEW LEARNING OUTCOME Media Evaluation and Selection Considerations: LO 4 Scheduling:  continuous flighted pulsing seaso...
Public Relations Discuss the  role of public  relations in the  promotional mix LO 5
Public Relations The element in the promotional mix that: Public  Relations <ul><li>evaluates public attitudes </li></ul><...
Functions of Public Relations LO 5 Press relations  Product publicity Corporate communication Public affairs Lobbying Empl...
Public Relations Tools LO 5 Product placement Consumer education Event sponsorship Issue sponsorship Internet Web sites Ne...
Consumer Education Sites consumer.gov/idtheft Identity theft privacyrights.org Consumer privacy rights and responsibilitie...
Managing Unfavorable Publicity Crisis Management LO 5 A coordinated effort to handle the effects of unfavorable publicity ...
REVIEW LEARNING OUTCOME The Role of Public Relations LO 5
Advertising for TV Shows <ul><li>Aggregating print ads for televisions shows as well as breaking them down, James Hibberd ...
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  • Chapter 17 Advertising and Public Relations Marketing cannot be accomplished in isolation. Even though the marketing function resides with marketers, the concept of marketing must permeate the entire organization.
  • Chapter 17 Advertising and Public Relations
  • Chapter 17 Advertising and Public Relations
  • Chapter 17 Advertising and Public Relations Notes: Advertising, defined as any form of impersonal, paid communication in which the sponsor is identified, is a popular form of promotion especially for consumer packaged goods and services. Advertising expenditures increase annually and were almost $300 billion in 2006. Among the top brands advertised by the ad-leading 32 companies are Verizon Communications, Olay, Crest, and Tylenol.
  • Chapter 17 Advertising and Public Relations Notes: Advertising is utilized for maintaining brand awareness and market share. New brands with a small market share tend to spend proportionately more for advertising than those with a large market share. Why? First, beyond a certain level of spending, diminishing returns set in. Sales or market share decrease no matter how much is spent on advertising. This is called the advertising response function. Second, new brands tend to require higher spending to maintain a certain minimum level of exposure to measurably affect purchase habits.
  • Chapter 17 Advertising and Public Relations Notes: The average television viewer watches at least six hours of commercial television messages a week. From all types of media, the average U.S. citizen is exposed to hundreds of advertisements a day. Discussion/Team Activity: Discuss advertisements that are memorable. What makes them stand out?
  • Chapter 17 Advertising and Public Relations
  • Chapter 17 Advertising and Public Relations
  • Chapter 17 Advertising and Public Relations Notes: The firm’s promotional objectives determines the type of advertising it uses. Institutional advertising is used to build up the image of the company. In contrast, product advertising is used to enhance the sales of a specific good or service.
  • Chapter 17 Advertising and Public Relations Notes: Institutional advertising promotes the corporation as a whole and is designed to establish, change, or maintain the corporation’s identity. A form of institutional advertising is advocacy advertising, typically used to safeguard against negative consumer attitudes and to enhance the company’s credibility among consumers who already favor its position. Discussion/Team Activity: Discuss examples of institutional advertising and the industries that frequently use this form.
  • Chapter 17 Advertising and Public Relations Online Pizza Hut Papa John’s Can you find evidence of comparative advertising on either Pizza Hut’s or Papa John’s Web site? Notes: The product’s stage in its life cycle often determines which of the above types of product advertising is selected. Pioneering advertising is used during the introductory stage of the PLC. Competitive advertising is used during the growth phase of the PLC as competition increases. It is used to influence demand by appealing to emotions. Comparative advertising compares competing brands. Before the 1970s, comparative advertising was allowed only if the competing brand was unidentified. Care should be used with comparative advertising approach in global markets due to government regulations and cultural/social value sensitivity.
  • Chapter 17 Advertising and Public Relations
  • Chapter 17 Advertising and Public Relations
  • Chapter 17 Advertising and Public Relations
  • Chapter 17 Advertising and Public Relations Notes: Advertising strategies are organized around an advertising campaign. An ad campaign is a series of related ads focusing on a common theme, slogan, and set of advertising appeals. Before creative work can begin, advertising goals or objectives are established. The DAGMAR approach (described on the next slide) is one method of setting objectives. Once objectives are defined, creative work can begin, with the advertising campaign often following the AIDA model.
  • Chapter 17 Advertising and Public Relations Notes: According to the DAGMAR (Defining Advertising Goals for Measured Advertising Results) approach, all advertising objectives should precisely define the target market, the desired percentage change in some specified measure of effectiveness, and the time frame in which that change is to occur. Once objectives are defined, creative work can begin on the advertising campaign.
  • Chapter 17 Advertising and Public Relations Notes: Creative decisions include identifying product benefits, developing and evaluating advertising appeals, executing the message, and evaluating the effectiveness of the campaign.
  • Chapter 17 Advertising and Public Relations Notes: A well-known rule of thumb in advertising is to “sell the sizzle, not the steak” by advertising a product’s benefits instead of its attributes. A benefit is what consumers will receive or achieve by using the product. A quick test to determine whether you are offering attributes or benefits is to ask “So?”.
  • Chapter 17 Advertising and Public Relations Notes: An example of an attribute and benefit are shown on this slide.
  • Chapter 17 Advertising and Public Relations Notes: Common advertising appeals are listed in Exhibit 15.1. Choosing the best appeal normally requires market research. The appeal must make a positive impression on the target market, while being unique, distinguishable from the competitors’ messages, and believable. Discussion/Team Activity: Discuss advertisements that use these appeals. How effective are the advertisements? Why?
  • Chapter 17 Advertising and Public Relations Notes: The advertising appeal selected for the campaign becomes its unique selling proposition, usually becoming the campaign’s slogan. Effective slogans become easily recognizable to the consumer. Discussion/Team Activity: Give the class a slogan or jingle, and have them name the product. Historical and current products may be used, demonstrating the lasting value of good advertising appeals.
  • Chapter 17 Advertising and Public Relations Notes: Message execution is the way an advertisement portrays its information. The AIDA plan is a good means of executing an advertising message. An ad should immediately get attention, and hold consumers’ interest, create desire for the good, and motivate an action of purchase. Exhibit 15.2 lists and describes the ten common executional styles for advertising. Executional styles often dictate the media utilized. For example, print works well for scientific executional styles, while demonstration and musical styles are more likely found in broadcast advertising. Executional styles for foreign advertising are different from those in the United States. They often are sexually oriented or aesthetically imaginative. Post-campaign evaluation can be the most demanding task facing advertisers.
  • Chapter 17 Advertising and Public Relations
  • Chapter 17 Advertising and Public Relations
  • Chapter 17 Advertising and Public Relations Notes: The choice of medium is a major decision for advertisers. Monitored media includes those media shown above, and monitored by national reporting services. Almost half of the $300 billion spent annually on advertising is spent on monitored media. Unmonitored media is shown on this slide. Traditional mass market media are declining in usage and more targeted media are growing.
  • Chapter 17 Advertising and Public Relations Notes: A major advertising decision is the choice of medium—the channel used to convey the message to the target market. Media planning is the series of decisions advertisers make regarding the use of media, allowing optimal and cost-effective communication to the target market. Creative and media decisions are made at the same time. Creative work cannot be completed without knowing the medium which will convey the message.
  • Chapter 17 Advertising and Public Relations Notes: Advantages and disadvantages of major advertising media are summarized in Exhibit 15.3. The following slides show a close-up of each media type.
  • Chapter 17 Advertising and Public Relations Notes: The main sources of newspaper ad revenue are local retailers, classified ads, and cooperative advertising. Co-op advertising encourages retailers to devote more effort to the manufacturer’s lines.
  • Chapter 17 Advertising and Public Relations Notes: One of the main advantages of magazine advertising is market selectivity. Although magazine cost per contact may be higher than other media, ads reach specialized audiences and thus more potential customers. The types of products most frequently advertised include autos, apparel, computers, and cigarettes. Discussion/Team Activity: Name magazines that appeal to a specialized audience. If you have copies available, review the publication to identify the advertisers.
  • Chapter 17 Advertising and Public Relations
  • Chapter 17 Advertising and Public Relations Notes: Radio is enjoying a resurgence in popularity because of the meshing of its immediate, portable nature with today’s active lifestyle. Additionally, satellite radio has attracted new audiences that are exposed to ads where allowed on that format.
  • Chapter 17 Advertising and Public Relations Notes: Advertising on television can be very expensive. First-run prime-time shows command rates of $300,000 to $500,000 for a 30-second spot. A 30-second spot during the 2006 Super Bowl cost advertisers an average of $2.5 million.
  • Chapter 17 Advertising and Public Relations
  • Chapter 17 Advertising and Public Relations Notes: Examples of outdoor or out-of-home advertising include Billboards Skywriting giant inflatables mini-billboards signs in sports arenas lighted moving signs in bus and airport terminals ads painted on the sides of vehicles, objects, and Even living people—students rented their foreheads for temporary brand tattoos and then walked around!
  • Chapter 17 Advertising and Public Relations
  • Chapter 17 Advertising and Public Relations Online Fox Network ABC What kind of advertising is done on the Fox Network’s Web site? Compare this with the site for ABC. What differences do you notice? Why do you think a television network would choose not to sell ad space on its Web site? Notes: The Internet has changed the advertising industry. Revenues in 2005 were almost $12 billion and is expected to double by 2010. It provides a versatile platform that offers data on consumer usage, enabling advertisers to improve their ad targetability and achieve measurable results.
  • Chapter 17 Advertising and Public Relations According to the NAI principles, collected data is anonymous - linked only to a numbered cookie on a user&apos;s computer. Their ad networks collect and analyze this data to make inferences about consumers’ interests and preferences. The resulting profile attempts to predict the individual consumer&apos;s tastes, needs, and purchasing habits. That profile enables the ad companies&apos; software to make decisions about how to deliver ads directly targeted to the consumer&apos;s specific interests. However, when the public and media became aware of the plan to link anonymous surfing data with detailed customer profiles, most expressed opposition and urged Congress to take action. One journalist wrote: “ [W]ho is going to hold [data-mining companies] to the promises in their privacy policies? Most online companies insist that they can regulate themselves. Maybe. But as online direct marketing becomes more successful, the value of personal information will soar -- as will the temptations to abuse it. Right now, victims have no clear legal recourse . . . only the federal government can fill those shoes.” Invite students to discuss the value of personal information and privacy abuse. Is an opt-out mechanism enough? Why or why not? Source: &amp;quot;Protecting E-Privacy: Washington Must Step In&amp;quot;, Business Week , July 26, 1999.
  • Chapter 17 Advertising and Public Relations
  • Chapter 17 Advertising and Public Relations
  • Chapter 17 Advertising and Public Relations Notes: Advertisers also evaluate the qualitative factors involved in media selection. The factors shown above affect the likelihood that a commercial message is being seen and absorbed. An audience must pay attention to the ad for it to be effective.
  • Chapter 17 Advertising and Public Relations Notes: After choosing the media for the campaign, advertisers must schedule the ads. The media schedule designates the media to be used, the specific vehicles (such as the TV show), and the insertion dates of the advertising. Continuous media schedule: Examples are Tide detergent and Ivory soap. Flighted media schedule: Examples are television ads for new movies on specific days of the week. Examples: Movie ads on Wednesday and Thursday nights. Pulsing media schedule: Heavier advertising during the best sales periods. Examples are back-to-school sales. Seasonal media schedule: Advertising is concentrated when product is likely to be used. Examples are cold medication and suntan lotion. Recency planning is the theory of scheduling television advertising for frequently purchased products, such as Coca-Cola and Tide detergent. Its main premise is to influence the brand choice of people who are ready to buy.
  • Chapter 17 Advertising and Public Relations
  • Chapter 17 Advertising and Public Relations
  • Chapter 17 Advertising and Public Relations Notes: Marketing managers plan public relations campaigns that fit into the overall marketing plans and focus on targeted audiences. Publicity is the effort to capture media attention and is initiated through a press release that furthers the public relations plans.
  • Chapter 17 Advertising and Public Relations
  • Chapter 17 Advertising and Public Relations Online Volkswagen General Motors How effective do you think the Internet is at achieving new-product publicity? Compare how Volkswagen and General Motors use the Internet to advertise their new models. Does the primary function of each Web site seems to advertising, publicity, or something else?
  • Chapter 17 Advertising and Public Relations The National Association of Consumer Agency Administrators (NACAA) represents consumer agencies at all levels of government. NACAA members work directly with consumers to solve problems, advance legislation, and support consumer education. Here are just some of the links for consumer education listed on the NACAA Web site: NACAA also presents the coveted ACE award (Achievement in Consumer Education) every year based on effectiveness of message, accuracy and usefulness of information, creativity, value to the community, needed changes and program results. Who can win an ACE award? Any government, non-profit or educational institution; any private sector company ; any broadcast or print news organization or freelance professional; any international agencies; and any collaborative projects involving any of the above can apply for the award. For instance, Debbie Brown, Community Education Coordinator for Hillsborough County, Florida, developed a program to teach students about topics to prepare them for the adult financial world and limit their potential for victimization by white collar criminals. The program received national recognition in 2006 by winning the &apos;ACE&apos; award in the best program category. Another award was given to the FDIC for a special issue of FDIC Consumer News devoted to helping seniors make smart decisions about retirement savings and daily money management. The issue was entitled &amp;quot;Fiscal Fitness for Older Americans: Stretching Your Savings and Shaping Up Your Financial Strategies.“ Source: http://www.nacaa.net/index.php
  • Chapter 17 Advertising and Public Relations Notes: Crises do happen. Companies must have a communication policy firmly in hand before a disaster occurs because timing is uncontrollable. For example, in 2004, McDonald&apos;s was caught off-guard after the release of the documentary film Super Size Me, which chronicled the deterioration of filmmaker Morgan Spurlock’s health while eating an all-McDonald’s product diet. Corporate crises range from product recalls to negative online comments about a company&apos;s products or services. Sun Microsystems in California has quarterly crisis simulations that might include a natural disaster [think earthquake], to a breakout of avian flu, to issues surrounding products and services.* Discussion/Team Activity: Identify other corporate crises and discuss how the public relations was handled. Examples: Wal-Mart’s low wages and sparse benefits, Exxon Valdez oil spill, Tylenol capsules cyanide poisoning. *Source: Matthew Schwarz, “Survey: Majority of b-to-b marketers lack crisis plan,” B-to-B Magazine , October 8, 2007.
  • Chapter 17 Advertising and Public Relations
  • Chapter 17 Advertising and Public Relations
  • 2011.2.17 marketing

    1. 1. Lamb, Hair, McDaniel CHAPTER 17 Advertising and Public Relations 2010-2011
    2. 2. LO 1 Discuss the effects of advertising on market share and consumers LO 2 Identify the major types of advertising LO 3 Discuss the creative decisions in developing an advertising campaign LO 4 Describe media evaluation and selection techniques LO 5 Discuss the role of public relations in the promotional mix Learning Outcomes
    3. 3. The Effects of Advertising Discuss the effects of advertising on market share and consumers LO 1
    4. 4. The Effects of Advertising <ul><li>U.S. advertising are expected to decline in difficult economic times </li></ul><ul><li>In recent years, 30 companies spent more than $1 billion each </li></ul><ul><li>850,000 people work in media advertising such as newspapers, magazines, television, radio, and internet media. </li></ul><ul><li>More than 100 companies spend over $300 million annually. </li></ul>LO 1
    5. 5. Advertising and Market Share <ul><li>New brands with a small market share spend proportionally more for advertising and sales promotion than those with a large market share. </li></ul><ul><ul><ul><li>Beyond a certain level of spending, diminishing returns set in. </li></ul></ul></ul><ul><ul><ul><li>New brands require higher spending to reach a minimum level of exposure needed to affect purchase habits. </li></ul></ul></ul>LO 1
    6. 6. The Effects of Advertising on Consumers <ul><li>The average U.S. citizen is exposed to hundreds of ads each day. </li></ul><ul><li>Advertising may change a consumer’s negative attitude toward a product, or reinforce a positive attitude. </li></ul><ul><li>Advertising can affect consumer ranking of a brand’s attributes. </li></ul>LO 1
    7. 7. REVIEW LEARNING OUTCOME ____ affect how consumers rank brand attributes ____ reinforce positive attitude ____ change negative attitude to positive Effects of Advertising Building sales/share Maintaining sales/share Advertising can:    LO 1 Advertising response function Return on advertising expense (in sales or market share) Money spent
    8. 8. Major Types of Advertising Identify the major types of advertising LO 2
    9. 9. Major Types of Advertising LO 2 Institutional Advertising Enhances a company’s image rather than promotes a particular product. Product Advertising Touts the benefits of a specific good or service.
    10. 10. Major Types of Advertising LO 2 Corporate identity Pioneering Competitive Comparative Product Advertising Institutional Advertising Advocacy advertising
    11. 11. Product Advertising LO 2 Pioneering <ul><li>Stimulates primary demand for new product or category </li></ul><ul><li>Used in the PLC introductory stage </li></ul>Competitive <ul><li>Influences demand for brand in the growth phase of the PLC </li></ul><ul><li>Often uses emotional appeal </li></ul>Comparative <ul><li>Compares two or more competing brands’ product attributes </li></ul><ul><li>Used if growth is sluggish, or if competition is strong </li></ul>
    12. 12. REVIEW LEARNING OUTCOME The Major Types of Advertising LO 2
    13. 13. Creative Decisions in Advertising Discuss the creative decisions in developing an advertising campaign LO 3
    14. 14. Creative Decisions in Advertising A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals. Advertising Campaign LO 3
    15. 15. Creative Decisions in Advertising LO 3 Determine the advertising objectives Make creative decisions Make media decisions Evaluate the campaign
    16. 16. Setting Objectives: The DAGMAR Approach LO 3 Define target audience Define desired percentage change Define the time frame for change
    17. 17. Creative Decisions LO 3 Develop and evaluate advertising appeals Execute the message Evaluate the campaign’s effectiveness Identify product benefits
    18. 18. Identify Product Benefits <ul><li>“ Sell the Sizzle, not the Steak” </li></ul><ul><li>Sell product’s benefits, not its attributes </li></ul><ul><li>A benefit should answer “What’s in it for me?” </li></ul><ul><li>Ask “So?” to determine if it is a benefit </li></ul>LO 3
    19. 19. Identify Product Benefits “ So?” LO 3 Attribute Benefit “ Powerade’s new line has been reformulated to combine the scientific benefits of sports drinks with B vitamins and to speed up energy metabolism.” “ So, you’ll satisfy your thirst with a great-tasting drink that will power you throughout the day.”
    20. 20. Advertising Appeals LO 3 Profit Health Love or romance Fear Admiration Convenience Fun and pleasure Vanity and egotism Environmental Consciousness 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
    21. 21. Unique Selling Proposition A desirable, exclusive, and believable advertising appeal selected as the theme for a campaign. Unique Selling Proposition LO 3
    22. 22. Executing the Message LO 3 Mood or Image Musical Demon- stration Scientific Real/ Animated Product Symbols Fantasy Lifestyle Slice-of-Life Humorous Spokes-person/ Testimonial
    23. 23. REVIEW LEARNING OUTCOME Creative Decisions for Ad Campaign Set advertising objectives LO 3 Identify benefits Develop appeal Execute message Evaluate campaign results Evaluating results helps marketers adjust objectives for future campaigns
    24. 24. Media Decisions in Advertising Describe media evaluation and selection techniques LO 4
    25. 25. Media Decisions in Advertising Monitored Media Unmonitored Media LO 4 Newspapers Magazines Yellow Pages Internet Radio Television Outdoor Media Direct Mail Trade Exhibits Cooperative Advertising Brochures Coupons Catalogs Special Events
    26. 26. Major Advertising Media LO 4 Newspapers Magazines Radio Television Outdoor Media Yellow Pages Internet
    27. 27. Newspapers Advantages <ul><li>Geographic selectivity </li></ul><ul><li>Short-term advertiser commitments </li></ul><ul><li>News value and immediacy </li></ul><ul><li>Year-round readership </li></ul><ul><li>High individual market coverage </li></ul><ul><li>Co-op and local tie-in availability </li></ul><ul><li>Short lead time </li></ul>Disadvantages <ul><li>Limited demographic selectivity </li></ul><ul><li>Limited color </li></ul><ul><li>Low pass-along rate </li></ul><ul><li>May be expensive </li></ul>LO 4
    28. 28. Cooperative Advertising Cooperative Advertising LO 4 An arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer’s brand.
    29. 29. Magazines Advantages <ul><li>Good reproduction </li></ul><ul><li>Demographic selectivity </li></ul><ul><li>Regional/local selectivity </li></ul><ul><li>Long advertising life </li></ul><ul><li>High pass-along rate </li></ul>Disadvantages <ul><li>Long-term advertiser commitments </li></ul><ul><li>Slow audience build-up </li></ul><ul><li>Limited demonstration capabilities </li></ul><ul><li>Lack of urgency </li></ul><ul><li>Long lead time </li></ul>LO 4
    30. 30. <ul><li>{Contents Brought to you by...} </li></ul><ul><li>The table of contents (TOC) in a magazine commonly appears after a dozen—sometimes two dozen—or more pages of advertisements. To cut through the noise, Philips Electronics paid $5 million to Time, Inc. to place the TOC on the first page of four magazines—Time, Fortune, People, and Business 2.0. </li></ul><ul><li>In those issues, the TOC appeared on the very first page, opposite an ad on the inside front cover, reading: “Philips Electronics is bringing the table of contents to the front of selected Time, Inc. magazines to make things easier for readers.” </li></ul>Noise-Free Reading SOURCE: Brian Steinberg, “Philips and Time Agree to Keep It Simple,” Wall Street Journal, April 21, 2006, B3. LO 4
    31. 31. Radio Advantages <ul><li>Low cost </li></ul><ul><li>Immediacy of message </li></ul><ul><li>Short notice scheduling </li></ul><ul><li>No seasonal audience change </li></ul><ul><li>Highly portable </li></ul><ul><li>Short-term advertiser commitments </li></ul><ul><li>Entertainment carryover </li></ul>Disadvantages <ul><li>No visual treatment </li></ul><ul><li>Short advertising life </li></ul><ul><li>High frequency to generate comprehension and retention </li></ul><ul><li>Background distractions </li></ul><ul><li>Commercial clutter </li></ul>LO 4
    32. 32. Television Advantages <ul><li>Wide, diverse audience </li></ul><ul><li>Low cost per thousand </li></ul><ul><li>Creative opportunities for demonstration </li></ul><ul><li>Immediacy of messages </li></ul><ul><li>Entertainment carryover </li></ul><ul><li>Demographic selectivity with cable </li></ul>Disadvantages <ul><li>Short life of message </li></ul><ul><li>Consumer skepticism </li></ul><ul><li>High campaign cost </li></ul><ul><li>Little demographic selectivity with stations </li></ul><ul><li>Long-term advertiser commitments </li></ul><ul><li>Long lead times for production </li></ul><ul><li>Commercial clutter </li></ul>LO 4
    33. 33. <ul><li>When it comes to advertising, presidential hopefuls continue to favor local TV: </li></ul><ul><ul><li>Nearly 95 percent of presidential campaign ads between January 1 to October 10, 2007 were aired on local TV stations </li></ul></ul><ul><ul><li>Mitt Romney led other Republican presidential candidates with 10,893 TV ads in that time period </li></ul></ul><ul><ul><li>Bill Richardson led Democrats with 5,975 TV ads, followed by Barack Obama with 4,293 ads </li></ul></ul>Presidential TV Advertising SOURCE: “Candidates Still Bank On Local TV Ads,” Mediaweek , Oct 22, 2007 p22 . LO 4
    34. 34. Outdoor Media Advantages <ul><li>Repetition </li></ul><ul><li>Moderate cost </li></ul><ul><li>Flexibility </li></ul><ul><li>Geographic selectivity </li></ul>Disadvantages <ul><li>Short message </li></ul><ul><li>Lack of demographic selectivity </li></ul><ul><li>High “noise” level </li></ul>LO 4
    35. 35. <ul><li>In 1970, billboards accounted for 80 percent of outdoor advertising </li></ul><ul><li>In 2006, billboards accounted for 64 percent of outdoor advertising, public transport for 12 percent (e.g.. buses, trucks, cars), street furniture for 7 percent (e.g. park benches, bus kiosks), and 17 percent alternative (outdoor) media </li></ul>Outdoor Advertising SOURCE: “Us’s Landscape Turns Luminous As Highway Billboards Go Digital,” Marketing Week, October 25, 2007, p22. <ul><li>Some car owners are paid $200-$800/month for driving a car “wrapped” in the logo and branding of an advertiser </li></ul><ul><li>So far, only 700 of the 450,000 U.S. billboards are digital (only 40 states allow their use) </li></ul>LO 4
    36. 36. Internet Advantages <ul><li>Fast growing </li></ul><ul><li>Ability to reach narrow target audience </li></ul><ul><li>Short lead time </li></ul><ul><li>Moderate cost </li></ul>Disadvantages <ul><li>Difficult to measure ad effectiveness and ROI </li></ul><ul><li>Ad exposure relies on “click through” from banner ads </li></ul><ul><li>Not all consumers have access to Internet </li></ul>LO 4
    37. 37. <ul><li>Third-party ad networks provide most of today’s Web ads. These ad networks use cookies to track your Web preferences and usage patterns, then tailor advertising content to your interests. </li></ul><ul><li>Network Advertising Initiative (NAI) member companies are self-regulating. Each has agreed to post a notice on all Web sites served by their networks. This notice informs consumers that: </li></ul><ul><ul><li>The ad networks may place a cookie on your computer; </li></ul></ul><ul><ul><li>The cookie may be used to tailor ad content both on the site you are visiting as well as other sites within that network that you may visit in the future. </li></ul></ul><ul><ul><li>They have provided an &quot;opt-out&quot; mechanism for the targeted ad programs they provide. </li></ul></ul>Privacy Protection SOURCE: http://networkadvertising.org/managing/principles.asp LO 4
    38. 38. <ul><li>Google's total revenue in 2008 was $21.8 billion and of this, $21.1 billion was derived from advertising. At the end of its third quarter in 2009, the company’s total revenue was $16.9 billion, $16.4 billion from advertising. </li></ul><ul><li>To appreciate just how much Google has grown, consider this—in 2003 the company's total revenue was $1.46 billion with advertising revenue representing $1.42 billion. </li></ul><ul><li>Source: http://investor.google.com/fin_data.html last visited November 12 , 2009 </li></ul>G o o g l e ’s AdWords (Ads Work!) LO 4
    39. 39. Alternative Media LO 4 Ads in Movies Interactive Kiosks Computer Screen Savers Shopping Carts DVDs Advertainments Cell Phone Ads Subway Tunnel Ads Floor Ads Video Game Ads
    40. 40. Qualitative Factors in Media Selection <ul><li>Attention to the commercial and the program </li></ul><ul><li>Program liking </li></ul><ul><li>Lack of distractions </li></ul><ul><li>Other audience behaviors </li></ul>LO 4
    41. 41. Media Scheduling Continuous Media Schedule Flighted Media Schedule Pulsing Media Schedule Seasonal Media Schedule Advertising is run steadily throughout the period. Advertising is run heavily every other month or every two weeks. Advertising combines continuous scheduling with flighting. Advertising is run only when the product is likely to be used. LO 4
    42. 42. REVIEW LEARNING OUTCOME Media Evaluation and Selection Considerations: LO 4 Scheduling: continuous flighted pulsing seasonal Winter Spring Summer Fall Type: Newspaper Magazine Radio Television Outdoor Internet Alternative Mix How much of each? Cost per contact How much per person? Reach How many people? Frequency How often? Audience selectivity How targeted is the audience?
    43. 43. Public Relations Discuss the role of public relations in the promotional mix LO 5
    44. 44. Public Relations The element in the promotional mix that: Public Relations <ul><li>evaluates public attitudes </li></ul><ul><li>identifies issues of public concern </li></ul><ul><li>executes programs to gain public acceptance </li></ul>LO 5
    45. 45. Functions of Public Relations LO 5 Press relations Product publicity Corporate communication Public affairs Lobbying Employee and investor relations Crisis management
    46. 46. Public Relations Tools LO 5 Product placement Consumer education Event sponsorship Issue sponsorship Internet Web sites New product publicity
    47. 47. Consumer Education Sites consumer.gov/idtheft Identity theft privacyrights.org Consumer privacy rights and responsibilities annualcreditreport.com One free credit report/consumer each year consumeraction.gov Broad range of consumer education topics consumerworld.org Latest consumer news consumerreports.org/main/home.jsp Unbiased product information consumer.gov Directs consumers to fed gov’t sites pueblo.gsa.gov Brochures and pamphlets ftc.gov/ftc/consumer.htm Unfair and deceptive business practices fcc.gov Radio, television, satellite, and telephone motorist.org Lists car repair shops meeting set standards recall.gov Safety and product recall information cpsc.gov Safety, toys, nursery equipment, home appliances, furniture, computers, fireworks nhtsa.gov Defects in automobiles, crash test ratings, safety recalls, air bags and child safety seats fda.gov Food safety or food products, prescription or over the counter drugs, or medical devices
    48. 48. Managing Unfavorable Publicity Crisis Management LO 5 A coordinated effort to handle the effects of unfavorable publicity or of an unfavorable event.
    49. 49. REVIEW LEARNING OUTCOME The Role of Public Relations LO 5
    50. 50. Advertising for TV Shows <ul><li>Aggregating print ads for televisions shows as well as breaking them down, James Hibberd offers an informative look at advertising trends in 2009. </li></ul><ul><ul><ul><li>http://www.thrfeed.com/nbcs-trauma-.html </li></ul></ul></ul>LO 5
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