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  • 1. CHAPTER 13 Advertising and Public Relations M A R K E T I N G Real People, Real Choices Fourth Edition
  • 2. It’s an Ad Ad Ad Ad World
    • Advertising is nonpersonal communication paid for by an identified sponsor using mass media to persuade, inform, and remind an audience
    • 2004: over 265 billion USD spent on advertising
    • Biggest spenders: Automobiles, financial services, food and beverages and retail.
    • What could be some threats to advertising?
  • 3. Types of Advertising
    • Product advertising - message focuses on a specific product or service
      • Category advertising (Got Milk?; The other white meat, etc.)
      • Brand advertising
    • Institutional advertising - message focuses on activities, personality, or point of view of a company
      • advocacy advertising (2004: MTV’s “choose or lose” campaign)
      • public service advertisements (anti-smoking; anti-drugs; drunk driving, etc.)
  • 4. Purposes of Product Advertising
    • To educate people about a new product and what it does
    • To emphasize a brand’s features and try to convince the target market to choose it over other options
    • To ensure that people won’t forget about a well-established product
  • 5. Who Creates Advertising?
    • An advertising campaign is a coordinated, comprehensive plan that carries out promotion objectives and results in a series of advertisements placed in media over a period of time
    • Agencies
      • limited-service
        • Creative boutiques
        • Specialize in few options e.g. Internet advertising
      • full-service
  • 6. Largest Ad Agencies
    • J. Walter Thompson
    • Leo Burnett Worldwide
    • McCann-Erickson Worldwide
    • BBDO Worldwide
    • Grey Worldwide
    • Ogilvy & Mather
    • Foote Cone & Belding
    • Worldwide billings exceed several billion USD
  • 7. The Body of Campaign Creation
    • Account management
      • Campaign strategy and client relations
    • Creative services
      • Visualization and writing of the ads
    • Research
      • Market and Advertising Research
    • Media planning
      • Planning, buying and placing the campaign
  • 8. Developing the Campaign
    • Identify the Target Market
    • Establish objectives
      • What should the campaign achieve
      • Budget (in cooperation with client)
    • Prepare creative brief
    • Design Ad Campaign
    • Choose Media and Schedule
    • Pretest Campaign
    • Full rollout
  • 9. Design the Ad
    • Creative strategy is the process that turns a concept into an advertisement
    • Creatives try to develop a “big idea” (e.g. “Think Small”)
    • Creatives:
      • art directors
      • copywriters
      • photographers
  • 10. Advertising Appeals
    • Reasons Why (USP) (e.g. M&Ms melt in your mouth, not in your hand)
    • Comparative Advertising (e.g. Coke & Pepsi; DHL, Fedex and UPS; etc.)
    • Demonstration (e.g. kitchen appliances, vacuum cleaners, etc.)
    • Testimonial (e.g. dentists endorsing toothpastes, etc.)
    • Slice-of-Life (e.g. breakfast cereal bars on the go)
    • Lifestyle (e.g. Cars, clothes, personal grooming products)
    • Fear (e.g. Insurance, drugs)
    • Sex (e.g. Victoria’s Secret; Calvin Klein; etc.)
    • Humor (e.g. Dodge Hemmi; Sonic etc.)
    • Slogans and Jingles (e.g. “Your friendly neighborhood agent”; With Allstate you are in good hands”, etc.)
  • 11. Step 4: Pretest What Will Be Said
    • Copy testing measures ad effectiveness
      • Concept testing
      • Test commercials
      • Finished testing
    • Focus Groups
    • Projective Techniques
    • Limited area surveys
  • 12. Step 5: Choose the Media
    • Media planning is a problem-solving process for getting a message to a target audience in the most effective fashion
      • Where to say it
      • When to say it
    • Highly complicated numbers game
    • Hundreds of media options from mass media to video games, DVDs, placements,MP3 players, cell phones, cable channels, etc.
  • 13. Television
    • Pros
      • Creative and flexible (see & hear)
      • Prestigious
      • High impact messages
      • Network TV is cost effective for reaching mass audience
      • Cable TV is good for reaching targeted group
    • Cons
      • Quickly forgotten
      • Requires frequent repetition
      • Increasingly fragmented audiences
      • High costs on an absolute basis
      • Shorter ads result in increased clutter
  • 14. Radio
    • Pros
      • Good for selective targeting
      • Heard out of home
      • Relatively low cost
      • Can be modified quickly
      • Uses listener imagination
    • Cons
      • Listeners may not pay full attention
      • Small audiences mean ads must be repeated frequently
      • Not appropriate for products requiring demonstration
  • 15. Newspapers
    • Pros
      • Wide exposure and extensive market coverage
      • Flexible format permits use of color, different sizes and editions
      • Useful for comparison shopping
      • Local retailers can tie in with national ads
    • Cons
      • Most don’t spend much time reading newspapers
      • Low readership among teens and young adults
      • Short life span
      • Very cluttered
      • General decline in reading habits
  • 16. Magazines
    • Pros
      • Narrowly targeted audiences by specialized magazines
      • High credibility and interest level provide good ad environment
      • Long life span and pass along rate
      • Excellent visual quality
    • Cons
      • With exception of direct mail, the most expensive form
      • Long deadlines
      • Must use several magazines to reach target
  • 17. Outdoor
    • Pros
      • Very high reach
      • Low cost
      • Good for supplementing other media
    • Cons
      • Hard to communicate complex messages
      • Cannot demonstrate product effectiveness
      • Controversial and disliked
  • 18. Internet Advertising
    • Banners (less that 1% click through rate)
    • Buttons (small banners anywhere in the web page)
    • Search engine and directory listings
    • Pop-up ads (open a separate window)
    • Email
      • permission marketing (opt out options given by marketer)
      • Spamming (junkmail on the internet)
  • 19. Media Scheduling
    • Specifies the exact media to use for the campaign, when and how often the message should appear
    • Outlines the planner’s best estimate of which media and vehicles will be most effective in attaining campaign objectives
  • 20. Factors Affecting Media Scheduling
    • Target market profile
    • People reached by different vehicles
    • Advertising patterns of competitors
    • Capability of medium to convey desired information
    • Compatibility of product with editorial content
  • 21. Media Scheduling Terms 1
    • Impressions – the number of people who will be exposed to a message placed in one or more media vehicles
    • Reach – the percentage of the target market exposed to the media vehicle at least once.
    • Frequency – the average number of times a person in the target group will be exposed to the vehicle in a period
  • 22. Media Scheduling Terms 2
    • Gross Rating Points (GRPs) – reach * frequency
    • Cost per Thousand (CPM) – compares the relative cost effectiveness of different media vehicles that have different exposure rates; it reflects the cost to deliver a message to 1000 people
  • 23. Media Scheduling: How Often?
    • Continuous – steady stream throughout year (products which we buy on a regular basis)
    • Pulsing – varies amount of advertising based on when product is in demand (e.g., suntan lotion)
    • Flighting – advertising appears in short, intense bursts alternative with periods of little to no activity
  • 24. Evaluating Advertising
    • Posttesting means conducting research on consumers’ responses to advertising messages they have seen or heard
      • unaided recall (recall in the absence of a cue)
      • aided recall (recall with a cue provided)
      • attitudinal measures (like / dislike)
  • 25. Public Relations
    • Attempts to influence the attitudes and perceptions of consumers, stockholders, and other stakeholders toward companies, brands, politicians, celebrities, not-for-profit organizations (e.g. Mel Gibson’s film – “The Passion…”
    • Do something good, then talk about it
    • Why PR – “third party” reporting is seen to be unbiased and therefore credible
    • Create a crisis management plan
  • 26. Some well known PR crises
    • Tylenol and product tampering
    • Wendy’s and finger in chili
    • Pepsi & Coke – pesticides in cola (India)
    • Union Carbide in India – hundreds of deaths due to gas leak
    • Vioxx & heart attack and stroke victims
    • Can you think of more?
  • 27. Objectives of Public Relations
    • Introducing new products
    • Influencing government legislation (lobbying)
    • Enhancing the image of a city, region, or country (Mauritius, Singapore – “So easy to enjoy, so hard to forget”)
    • Calling attention to a firm’s involvement with the community (e.g. sponsoring sporting events, rock concerts, special events, etc.)
  • 28. Planning a PR Campaign
    • Develop objectives (e.g. International Apple Institute – “An apple a day…”)
    • Execute the campaign
    • Evaluate the campaign
      • Problems with gauging effectiveness
  • 29. PR Campaign Strategy
    • Statement of objectives
    • Situation analysis
    • Specification of target audiences, messages to be communicated, specific program elements to be used
    • Timetable and budget
    • Discussion of how the program will be evaluated
  • 30. PR Activities
    • Press Releases (new products, new findings, etc.)
    • Internal PR (newsletters, close-circuit TV, employee awards, etc.)
    • Lobbying (influencing govt. officials to vote a certain way on legislation, initiate new legislation, etc.)
    • Speech writing (write speeches for senior executives – annual meetings, industry meetings, etc.)
    • Corporate identity (logos, symbols, stationery design, etc. for companies, identity manuals)
    • Media relations (create and maintain access with reporters to be used when needed)
    • Sponsorships (sporting events, rock concerts, etc.)
    • Special events (e.g. visits of dignitaries to plant, planning a christmas party, etc,)
    • Advice and counsel (e.g. to top management on communication issues)
  • 31. Measuring Effectiveness
    • In-house assessment
    • Awareness and Preference Studies
    • Counting of press clippings
    • Impression counts
  • 32. Direct Marketing
    • Any direct communication to a consumer or business recipient that is designed to generate a response in the form of an order, a request for further information, and/or a visit to a store or other place of business for purchase of a product
  • 33. Forms of Direct Marketing
    • Mail order (3% of overall retail US sales)
      • Catalogs (e.g. Eddie Bauer, Lands End, Dell, Gateway, JC Penney, Neiman Marcus, etc.)
      • Direct mail (offers a specific product through mail at one point in time – can be personalized)
    • Telemarketing (cheap and easy; 1 in 6 Americans cannot resist a telemarketing pitch; more effective in B2B selling; national Do-not-call registry)
    • Direct response television
      • Infomercials
      • Home shopping networks (QVC and HSN)
      • Top selling categories: diet and health products, kitchen appliances, exercise equipment and music CDs)
  • 34. M-Commerce
    • Promotional activities transmitted over mobile phones and other mobile devices such as personal digital assistants (PDAs)
      • Prevalent in Europe and Asia
      • Problems of “spim”
    • What does the future hold?
      • Have you seen Minority Report?