Chapter 15 Advertising and PR Idil Yaveroglu Lecture Notes

Advertising Any paid form of nonpersonal presentation and promotion of ideas, goods and services by an identified sponsor.

Advertising Developing an Advertising Program

Setting Advertising Objectives Informing Reminding Persuading Target Audience

Advertising Objectives Informative Objective Increase awareness Explain how product works Suggest new uses Build company image Inform about new product Inform a price change Describe services Correct false impressions Page #5

Inform

Informative

Informative

Informative

Informative

Goals and Tasks of Promotion Persuasion Objective Building brand preference Encourage brand switching Change customers’ perception of product attributes Influence buying decision Persuade customers to call Page #11

BMW vs. Audi

Persuasive Page #17

Persuasive Page #18

Goals and Tasks of Promotion Reminder Objective Reminding customers that the product may be needed in the near future Keeping the product in customers' minds during off-seasons Reminding customers where to buy the product Maintaining top-of-mind product awareness

Setting the Advertising Budget Several factors should be considered when setting the ad budget: Stage in the PLC Market share Level of competition Ad clutter Degree of brand differentiation

PLC and the Promotion Mix

Developing Advertising Strategy Two major decisions are included in advertising strategy: Advertising creative Advertising media

Message Strategy Message strategy Message execution Creative concept or Big Idea Advertising appeal Message execution Many execution styles Tone, format, illustration, headline, copy

Message Execution Styles (Advertising Appeals) Slice of Life Lifestyle Fantasy Mood or Image Musical Personality Symbol Technical Expertise Scientific Evidence Testimonial Evidence or Endorsement

A Fantasy and Slice of Life Executional Style

Musical Kibbles and Bits http://www.youtube.com/watch?v=NP9dn3j6uDk &NR=1 Alkaselzer Dr. Pepper http://www.youtube.com/watch?index=4&feature =PlayList&v=v8DWf- rSHn0&list=PLC285D5948545DD37

Musical Folgers

Comparison Ads

Testimonial Ads Expert Testimonials Celebrity Testimonials Trident dentists http://www.youtube.com/watch?v=xAVALXH9nxU GM – Mr Goodwrench Celebrity Testimonials Proactiv Average User Testimonials Mac

Demonstration Ads Use “demonstration” to show how well a product works. Swiffer Out http://www.youtube.com/watch?v=_mIgrpw5G-k

Feel good Ads (Mood) Try to link the good feeling elicited by the ad with the brand. Mc Donalds Coke – Happiness factory

Humor Appeals

Humor Appeal Create a pleasant and memorable association with the brand

Image ads

Selecting Advertising Media Decide on level of reach, frequency and impact Choose among the major media types by considering: Consumer media habits, nature of the product, types of messages, and costs Select specific media vehicles Decide on media timing

Major Media Types Newspapers Television Direct Mail Radio Magazines Good mass market coverage Low cost per exposure High absolute costs High clutter Direct Mail Radio Magazines High selectivity Outdoor Internet

Media Timing (Continuity) Continuity involves the matter of how advertising should be allocated during the course of an advertising campaign. Continuous schedule Pulsing Schedule Flighting Schedule

Advertising Schedules 600 400 Continuous Ad $ (in thousands) Pulsing Flighting 200 J F M A M J J A S O N D

Media Planning Media Plan Media Class Media Vehicle Media Mix Specifies media in which advertising message will be placed to reach a desired audience Media Class Broad category of media, such as TV, radio, or newspapers Media Vehicle Specific option within a class, i.e., Vogue Media Mix Blend of different media to reach target audience

Media Objectives Key Issues: What proportion of a target audience do we want to reach with our advertising message during a specified period? Reach How frequently do we need to expose the audience during a specified period? Frequency How much total advertising is required to accomplish reach and frequency objectives? Weight How should we allocate the advertising budget over time? Continuity What is the most economically justified way to accomplish the other objectives? Cost

Measuring Advertising Effectiveness Measuring communications effect Copy testing Measuring sales effect Compare past sales with past advertising expenditures Experiments

Public Relations Press Relations Product Publicity Public Affairs Lobbying Investor Relations Development

Role and Impact of Public Relations Strong impact on public awareness at lower cost than advertising Greater credibility than advertising Publicity is often underused Good public relations can be a powerful brand- building tool

PR Tools News Speeches Buzz Marketing Corporate Identity Materials Mobile Marketing Special Events Written Materials Audiovisual Materials Public Service Activities Internet

The Haagen Dazs Story Was established in New York in 1920s, not a Danish or Belgium brand. Founder Mr Mattus, called his new brand Häagen-Dazs, to convey an aura of the old-world traditions and craftsmanship to which he remained dedicated. The brand was introduced to Europe in late 80s First opened posh ice-cream parlors in prominent, affluent locations with heavy foot traffic Obtained placement in quality hotels and restaurants with name featured on menus Used branded freezers Low budget print campaign Sponsored the arts – was featured in Don Giovanni in London – got lots of free publicity Today brand commands 1/3rd of premium ice cream market – all with no 30 second commercials.

Special Events Tennis Australian Open Davis Cup Monte Carlo Rolex Masters Wimbledon Golf US Open Championship Presidents Cup Senior Open Championship Ryder Cup… Yachting ISAF Rolex World Sailor Maxi Yacht Rolex Club Rolex Farr World Championship Rolex Fastness Race…

Hugo Boss Sponsorships – sponsored Porsche in Formula One International Tennis, golf and ski competitions Funded exhibitions and artists Placements in “LA Law” and “Miami Vice”