1. Chapter 15 Advertising and PR
Idil Yaveroglu
Lecture Notes

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

3. Advertising
Developing an Advertising Program

4. Setting Advertising Objectives
Informing
Reminding
Persuading
Target
Audience

5. 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
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6. Inform

7. Informative

8. Informative

9. Informative

10. Informative

11. 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
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15. BMW vs. Audi

17. Persuasive
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18. Persuasive
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19. 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

21. 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

22. PLC and the Promotion Mix

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

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

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

26. A Fantasy and Slice of Life Executional Style

27. Musical
Kibbles and Bits &NR=1
Alkaselzer
Dr. Pepper =PlayList&v=v8DWf- rSHn0&list=PLC285D DD37

28. Musical
Folgers

29. Comparison Ads

30. Testimonial Ads Expert Testimonials Celebrity Testimonials
Trident dentists
GM – Mr Goodwrench
Celebrity Testimonials
Proactiv
Average User Testimonials
Mac

31. Demonstration Ads
Use “demonstration” to show how well a product works.
Swiffer
Out

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

33. Humor Appeals

34. Humor Appeal
Create a pleasant and memorable association with the brand

35. Image ads

36. 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

37. 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

38. 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

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

40. 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

41. 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

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

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

44. 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

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

46. 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.

47. 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…

48. 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”