Chapter 17 Advertising & PR

PERSUADE Objectives of Advertising REMIND INFORM to develop initial demand increase demand for an existing product to reinforce previous promotions.

Advertising and Market Share  New brands spend proportionately more for advertising than old ones.  A certain level of exposure is needed to affect purchase habits.  Beyond a certain level, diminishing returns set in.  Advertising Response Function

‘Advertising Response’ Function

Advertising Evolution& Effects Ad expenses have risen over the past decade (mature mkt). Ex: Arm & Hammer U.S. spends more on ads than any other country GM, P&G, and Time Warner each spend approx. $10 Million a DAY on U.S advertising!!!!!

Major Types of Advertising Enhance ……………… identity Pioneering Competitive Comparative ……………..Advertising……………..Advertising …………..Advertising…………..Advertising ……………… advertising Institutional Corporation’s Advocacy Product

What kind?

eu

2009

Types of Ads Product Ads – promote a specific item Pioneering: inform/build primary demand for item (intro stage; net phone, and what else??)

Types of Ads Comparative ads Specific brand comparison of a specific attribute (Pain relievers and Caffeine) The Cola Wars! The Beer Wars! The cereal wars! The detergent wars! Research must support (Listerine and plaque) vs. Any differences?

1.6 Competitive (brand) Ads -Later in PLC -Selective demand -Build brand recall -Create affect

Advertising Campaign A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals.

Steps in Creating an Advertising Campaign Determine the advertising objectives. Make creative decisions. Make media decisions. Evaluate the campaign.

How do dirty boys get clean?

Problem Sales plateau. 53% of the target ( year old guys) still switched between bars and shower gel, and 33% stuck entirely with their old-fashioned, non-Axe (and lowmargin)bar soap. Objective: To increase Axe Shower Gel occasions by 4% and sales by 13%.

Creative Decisions Components of Creative Decisions Components of 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

Creative decisions Aha! moment (creative idea) Sell more Axe Shower Gel by creating a manly shower tool (why the leap?) Guys wanted: -Something tough to clean them but…not that tough -Something versatile as some parts are sensitive -Something controllable ( to match the level of scrub with their different needs) -‘because girls notice everything, from head to toe’ -Product benefits? Rough and Gentle scrubbing!!

Common Advertising Appeals Value Health Love or romance Fear Admiration Convenience Fun and pleasure Vanity and egotism Environmental Consciousness 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

What appeal?

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 Spokes- person/ Testimonial Spokes- person/ Testimonial

What kind of execution?

Media Selection Considerations Cost per Contact Factors Influencing Media Mix Decisions Factors Influencing Media Mix Decisions Reach: portion of audience we want to reach Reach: portion of audience we want to reach Frequency: how often? Audience Selectivity What media?

Media Scheduling Types of Media Schedules Types of Media Schedules Continuous Media Schedule Flighted Media Schedule Pulsing Media Schedule Seasonal Media Schedule

Make media decisions Plus PR

Communication in Ads Effectiveness – very difficult to measure Testing improves performance (Dr. Pepper) Recall of ads may be poor (Infiniti)

Results: Plus: 630,000+ YouTube spot views to date and over 500 comments. 101 product reviews on Amazon.com, with a 4 star rating average. 2,839 Facebook requests for a free Detailer and 63,786 Detailer Gifts given. “Axe Detailer” searches were as popular as (and sometimes more) “Axe Effect” searches – traditionally our biggest hit

Public Relations Evaluates public attitudes Identifies issues of public concern Executes programs to gain public acceptance The Role of Public Relations The Role of Public Relations Can you imagine Axe PR?

Functions of Public Relations Press Relations Product Publicity Corporate Communications LobbyingLobbying News Release FLASH... CAR TIPS OVER IN TEST! Consumer Organization Wants Recall. Feature Article

Product Placement Product/Brand Placement Advertainment

PR vs Publicity