1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 Advertising and Prepared by Deborah Baker Texas Christian University 15 Public Relations

2 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 Learning Objectives 1.Discuss the effects of advertising on market share and consumers 2. Identify the major types of advertising 3. Discuss the creative decisions in developing an advertising campaign

3 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 Learning Objectives (continued) 4.Describe media evaluation and selection techniques 5.Discuss the role of public relations in the promotional mix

4 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15Advertising U.S. advertising expected to reach $300 billion per year in 2006 Top 200 brands account for 37 percent of media spending The advertising industry is small—only 13,000 employed in advertising agencies Ad budgets of some firms exceed over $2 billion per year—over $6 million per day! 1

5 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 Major Types of Advertising Institutional Advertising Institutional Advertising Product Advertising Product Advertising Designed to enhance a company’s image rather than promote a particular product. Designed to tout the benefits of a specific good or service. 2

6 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 Online Product Advertising PioneeringPioneering CompetitiveCompetitive ComparativeComparative 22

7 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 Steps in Creating an Advertising Campaign Determine the advertising objectives Make creative decisions Make media decisions Evaluate the campaign 3

8 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 Setting Objectives: The DAGMAR Approach Define target audience Define desired percentage change Define the time frame for change 3

9 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 Creative Decisions Develop and evaluate advertising appeals Develop and evaluate advertising appeals Execute the message Evaluate the campaign’s effectiveness Evaluate the campaign’s effectiveness Identify product benefits 3

10 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 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 3

11 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 Common Advertising Appeals Vanity/ Egotism Vanity/ Egotism Other Environ- mental conscious- ness Profit Fun/ Pleasure Fun/ Pleasure Admiration Health Love/ Romance Love/ Romance Conven- ience CommonAppealsCommonAppeals Fear 3

12 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 Executing the Message Mood or Image Musical Demon- stration Demon- stration Scientific Real/ Animated Product Symbols Real/ Animated Product Symbols Fantasy Lifestyle Slice-of-Life Humorous CommonExecutionalStylesCommonExecutionalStyles Spokes- person/ Testimonial Spokes- person/ Testimonial 3

13 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 Major Types of Advertising Media Newspapers Magazines Radio Television Outdoor Media Internet Alternative Media 4

14 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 Online Media Mix Decisions Cost Per Contact ReachReach FrequencyFrequency 22 Audience Selectivity

15 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 Media Scheduling ContinuousContinuous FlightedFlighted PulsingPulsing 22 Seasonal

16 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 The Role of Public Relations Evaluates public attitudes Identifies issues of public concern Executes programs to gain public acceptance 5

17 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 Functions of Public Relations Press relations Product publicity Corporate communication Public affairs Lobbying Employee and investor relations Crisis management 5

18 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 Public Relations Tools Product placement Consumer education Event sponsorship Issue sponsorship Internet Web sites New product publicity 5