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Principles of Marketing - Chapter 15

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Chapter 15 - slide 1
Copyright © 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter Fifteen
Advertising and Public
Relations
Chapter 15 - slide 2
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Advertising and Public
Relations
– Advertising
– Setting Advertising Objectives
– Setting the Advertising Budget
– Developing Advertising Strategy
– Evaluating Advertising Effectiveness and Return
on Advertising Investment
– Public Relations
– The Role and Impact of Public Relations
– Major Public Relations Tools
Topic Outline
Chapter 15 - slide 3
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Advertising is any paid form of non-personal
presentation and promotion of ideas, goods,
or services by an identified sponsor
Advertising
Chapter 15 - slide 4
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Advertising
An advertising objective is a specific
communication task to be accomplished with
a specific target audience during a specific
time
Objectives are classified by primary purpose
• Inform
• Persuade
• Remind
Setting Advertising Objectives
Chapter 15 - slide 5
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Advertising
Informative advertising is used when introducing a
new product category; the objective is to build
primary demand
• Comparative advertising directly or indirectly
compares the brand with one or more other brands
Persuasive advertising is important with increased
competition to build selective demand
Reminder advertising is important with mature
products to help maintain customer relationships
and keep customers thinking about the product
Setting Advertising Objectives
Chapter 15 - slide 6
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Advertising
Factors to consider when setting the budget
• Product life-cycle stage
• Market share
Setting the Advertising Budget

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Principles of Marketing - Chapter 15

  • 1. Chapter 15 - slide 1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Advertising and Public Relations
  • 2. Chapter 15 - slide 2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising and Public Relations – Advertising – Setting Advertising Objectives – Setting the Advertising Budget – Developing Advertising Strategy – Evaluating Advertising Effectiveness and Return on Advertising Investment – Public Relations – The Role and Impact of Public Relations – Major Public Relations Tools Topic Outline
  • 3. Chapter 15 - slide 3 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor Advertising
  • 4. Chapter 15 - slide 4 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific time Objectives are classified by primary purpose • Inform • Persuade • Remind Setting Advertising Objectives
  • 5. Chapter 15 - slide 5 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Informative advertising is used when introducing a new product category; the objective is to build primary demand • Comparative advertising directly or indirectly compares the brand with one or more other brands Persuasive advertising is important with increased competition to build selective demand Reminder advertising is important with mature products to help maintain customer relationships and keep customers thinking about the product Setting Advertising Objectives
  • 6. Chapter 15 - slide 6 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Factors to consider when setting the budget • Product life-cycle stage • Market share Setting the Advertising Budget
  • 7. Chapter 15 - slide 7 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Product life-cycle stage • New products require larger budgets • Mature brands require lower budgets Market share • Building or taking market share requires larger budgets • Markets with heavy competition or high advertising clutter require larger budgets • Undifferentiated brands require larger budgets Setting the Advertising Budget
  • 8. Chapter 15 - slide 8 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Advertising strategy is the strategy by which the company accomplishes its advertising objectives and consists of: • Creating advertising messages • Selecting advertising media Developing Advertising Strategy
  • 9. Chapter 15 - slide 9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Advertisements need to break through the clutter: • Gain attention • Communicate well Creating the Advertising Message
  • 10. Chapter 15 - slide 10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Advertisements need to be better planned, more imaginative, more entertaining, and more rewarding to consumers • Madison & Vine—the intersection of Madison Avenue and Hollywood— represents the merging of advertising and entertainment Creating the Advertising Message
  • 11. Chapter 15 - slide 11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Creating the Advertising Message
  • 12. Chapter 15 - slide 12 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Message strategy is the general message that will be communicated to consumers • Identifies consumer benefits Creating the Advertising Message
  • 13. Chapter 15 - slide 13 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Creative concept is the idea that will bring the message strategy to life and guide specific appeals to be used in an advertising campaign Characteristics of the appeals include: • Meaningful • Believable • Distinctive Creating the Advertising Message
  • 14. Chapter 15 - slide 14 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising • Message execution is when the advertiser turns the big idea into an actual ad execution that will capture the target market’s attention and interest. • The creative team must find the best approach, style, tone, words, and format for executing the message. Creating the Advertising Message
  • 15. Chapter 15 - slide 15 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Creating the Advertising Message Execution Styles
  • 16. Chapter 15 - slide 16 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Message execution also includes: • Tone – Positive or negative • Attention-getting words • Format – Illustration – Headline – Copy Creating the Advertising Message
  • 17. Chapter 15 - slide 17 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising • YouTube videos • Brand Website contests • Positives – Low expense – New creative ideas – Fresh perspective on brand – Boost consumer involvement Creating the Advertising Message Consumer Generated Messages
  • 18. Chapter 15 - slide 18 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Major steps include: • Deciding on reach—frequency—impact • Selecting media vehicles • Deciding on media timing Selecting Advertising Media
  • 19. Chapter 15 - slide 19 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Reach is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time Frequency is a measure of how many times the average person in the target market is exposed to the message Impact is the qualitative value of a message exposure through a given medium Selecting Advertising Media
  • 20. Chapter 15 - slide 20 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Selecting media vehicles involves decisions presenting the media effectively and efficiently to the target customer and must consider the message’s: • Impact • Effectiveness • Cost Selecting Advertising Media
  • 21. Chapter 15 - slide 21 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Narrowcasting focuses the message on selected market segments • Lowers cost • Targets more effectively • Engages customers better Selecting Advertising Media Narrowcasting Versus Shotgun Approaches
  • 22. Chapter 15 - slide 22 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising When deciding on media timing, the planner must consider: • Seasonality • Pattern of the advertising – Continuity—scheduling within a given period – Pulsing—scheduling unevenly within a given period Selecting Advertising Media
  • 23. Chapter 15 - slide 23 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising Communication effects indicate whether the ad and media are communicating the ad message well and should be tested before or after the ad runs Sales and profit effects compare past sales and profits with past expenditures or through experiments Evaluating Advertising Effectiveness and Return on Advertising Investment
  • 24. Chapter 15 - slide 24 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising • Organizing for advertising – Agency versus in-house • International Advertising Decisions – Standardization Other Advertising Considerations
  • 25. Chapter 15 - slide 25 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Public Relations Public relations involves building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events Public relations is used to promote product, people, ideas, and activities
  • 26. Chapter 15 - slide 26 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Public Relations Public relations department functions include: • Press relations or press agency • Product publicity • Public affairs • Lobbying • Investor relations • Development
  • 27. Chapter 15 - slide 27 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Public Relations Press relations or press agency involves the creation and placing of newsworthy information to attract attention to a person, product, or service Product publicity involves publicizing specific products Public affairs involves building and maintaining national or local community relations
  • 28. Chapter 15 - slide 28 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Public Relations Lobbying involves building and maintaining relations with legislators and government officials to influence legislation and regulation Investor relations involves maintaining relationships with shareholders and others in the financial community Development involves public relations with donors or members of nonprofit organizations to gain financial or volunteer support
  • 29. Chapter 15 - slide 29 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Public Relations • Lower cost than advertising • Stronger impact on public awareness than advertising The Role and Impact of Public Relations
  • 30. Chapter 15 - slide 30 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Public Relations Major Public Relations Tools
  • 31. Chapter 15 - slide 31 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc.Copyright © 2010 Pearson Education, Inc. Publishing as Prentice HallPublishing as Prentice Hall