Copyright Cengage Learning 2013 All Rights Reserved 1 Chapter 17: Advertising and Public Relations Introduction to Designed & Prepared by Laura Rush B-books, Ltd.

Copyright Cengage Learning 2013 All Rights Reserved 2 Learning Outcomes Discuss the effects of advertising on market share and consumers Identify the major types of advertising Discuss the creative decisions in developing an advertising campaign Describe media evaluation and selection techniques Discuss the role of public relations in the promotional mix LO 1 LO 2 LO 3 LO 5 LO 4

3 Advertising and Market Share New brands with a small market share spend proportionally more for advertising and sales promotion than those with a large market share 1.Beyond a certain level of spending, diminishing returns set in. 2.New brands require higher spending to reach a minimum level of exposure needed to affect purchase habits. Copyright Cengage Learning 2013 All Rights Reserved

4 Major Types of Advertising Institutional Advertising- Enhances a company’s image rather than promotes a particular product. Product Advertising- Touts the benefits of a specific good or service. Copyright Cengage Learning 2013 All Rights Reserved

5 Product Advertising PioneeringPioneering  Stimulates primary demand for new product or category  Used in the PLC introductory stage CompetitiveCompetitive  Influences demand for brand in the growth phase of the PLC  Often uses emotional appealComparativeComparative  Compares two or more competing brands’ product attributes  Used if growth is sluggish, or if competition is strong Online Copyright Cengage Learning 2013 All Rights Reserved

6 Creative Decisions in Advertising Advertising Campaign - A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals. Copyright Cengage Learning 2013 All Rights Reserved

7 Setting Objectives: The DAGMAR Approach Define target audience Define desired percentage change Define the time frame for change Copyright Cengage Learning 2013 All Rights Reserved

8 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 Copyright Cengage Learning 2013 All Rights Reserved

9 Identify Product Benefits Attribute Benefit “SoBe Life Water has reformulated five delicious, low-calorie flavors, each infused with essential vitamins and healthy herbal ingredients.” “SoBe Life Water is not only an enhanced water; it is a lifestyle unto itself. It provides consumers the healthiest, most fun and refreshing products, delivering the incredibly positive benefits of hydration.” - So? Copyright Cengage Learning 2013 All Rights Reserved

10 Advertising Appeals Profit Health Love or romance Fear Admiration Convenience Fun and pleasure Vanity and egotism 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 Copyright Cengage Learning 2013 All Rights Reserved

11 Unique Selling Proposition A desirable, exclusive, and believable advertising appeal selected as the theme for a campaign. Copyright Cengage Learning 2013 All Rights Reserved

12 Media Decisions in Advertising Newspapers Magazines Yellow Pages Internet Radio Television Outdoor Media Direct Mail Trade Exhibits Cooperative Advertising Brochures Coupons Catalogs Special Events Monitored Media Unmonitored Media Copyright Cengage Learning 2013 All Rights Reserved

13 Major Advertising Media Newspapers Magazines Radio Television Outdoor Media Yellow Pages Internet Copyright Cengage Learning 2013 All Rights Reserved

14 Cooperative Advertising An arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer’s brand. Copyright Cengage Learning 2013 All Rights Reserved

15 Media Selection Media Mix – Combination of media to be used for a promotional campaign Cost per contact – The cost of reaching one member of the target market Reach – number of target consumers exposed to a commercial at least once during a specific period, usually four weeks Frequency – number of times an individual is exposed to a given message during a specific period Copyright Cengage Learning 2013 All Rights Reserved

16 Qualitative Factors in Media Selection Attention to the commercial and the program Involvement Program liking Lack of distractions Other audience behaviors Copyright Cengage Learning 2013 All Rights Reserved

17 Media Scheduling Continuous Media Schedule Flighted Media Schedule Pulsing Media Schedule Seasonal Media Schedule Advertising is run steadily throughout the period. Advertising is run heavily every other month or every two weeks. Advertising combines continuous scheduling with flighting. Advertising is run only when the product is likely to be used. Copyright Cengage Learning 2013 All Rights Reserved

18 Public Relations The elements in the promotional mix that: -evaluate public attitudes, -identify issues of public concern, -execute programs to gain public acceptance. Copyright Cengage Learning 2013 All Rights Reserved

19 Managing Unfavorable Publicity Crisis Management - A coordinated effort to handle the effects of unfavorable publicity or of an unfavorable event. Copyright Cengage Learning 2013 All Rights Reserved