1. © 2013 Cengage Learning. All rights reserved. 1-1

2. 1-2 17: Advertising and Public Relations Part 7: Promotion Decisions © 2013 Cengage Learning. All rights reserved.

3. 1-3  Describe the nature and types of advertising  Explore the major steps in developing an advertising campaign  Identify who is responsible for developing advertising campaigns  Examine the tools used in public relations  Analyze how public relations is used and evaluated

4. 1-4  A paid non-personal communication that is transmitted to a target audience through mass media  Effective advertising can influence customers’ purchasing behavior throughout their lifetimes  Most organizations employ advertising to communicate with stakeholders © 2013 Cengage Learning. All rights reserved.

5. 1-5  Institutional advertising: Promotes organizational images, ideas, and political issues  May be used to create or maintain a favorable image  Advocacy advertising: A type of institutional advertising that promotes a company’s position on a public issue © 2013 Cengage Learning. All rights reserved.

6. 1-6  Ben & Jerry’s ice cream is famous for its social and environmental responsibility  Is this an advocacy advertisement? How can you tell? Courtesy of the Advertising Archives

7. © 2013 Cengage Learning. All rights reserved. 1-7  Click here to watch an advertisement created by the World Wildlife Fund for Earth Hourhere  Would you classify this as an advocacy ad?  What is the advertisement advocating?

8. 1-8  Product advertising: Promotes the uses, features, and benefits of products  Pioneer advertising: Focuses on stimulating demand for a product category by informing potential buyers about the product’s features, uses, and benefits  Competitive advertising: Attempts to stimulate demand for a specific brand by indicating its features, uses, and advantages relative to competing brands © 2013 Cengage Learning. All rights reserved.

9. 1-9  Comparative advertising: Compares the sponsor brand with other brand(s) on the basis of one or more product characteristics  Marketers must be careful not to misrepresent the characteristics of competing brands  Reminder advertising: Tells customers than an established brand is still around and offers certain characteristics and benefits  Reinforcement advertising: Assures current users that they have made the right choice and shows how to get the most satisfaction from the brand © 2013 Cengage Learning. All rights reserved.

10. 1-10  Designing a series of advertisements and placing them in various media to reach a certain audience  There are eight basic steps to developing an advertising campaign  The number of steps and their order varies by organization and the nature of the campaign © 2013 Cengage Learning. All rights reserved.

11. 1-11

12. 1-12  Target audience  The group of people at whom advertisements are aimed  Advertisers must identify and analyze the target audience Location and geographic distribution of target group Distribution of age, income, race, sex, and education Consumer attitudes regarding the purchase and use of the advertiser’s products and competing products © 2013 Cengage Learning. All rights reserved.

13. 1-13  What the firm hopes to accomplish with the campaign; objectives guide campaign development  Objectives should be Stated clearly Precise In measurable terms  Objectives in advertising are stated in terms of  Sales  Communication  Benchmarks help the advertiser evaluate progress and success © 2013 Cengage Learning. All rights reserved.

14. 1-14  Advertising platform  The basic issues or selling points an advertiser wishes to be included in the advertising campaign  Should consist of issues important to consumers Research and customer surveys help determine the best advertising platform  Is the basis on which a marketer builds the message and should be constructed carefully © 2013 Cengage Learning. All rights reserved.

15. 1-15  Click here to watch a Gatorade advertisementhere  What is the advertising platform in this ad?  What messages is this ad sending to its audience?

16. 1-16  Advertising appropriation  The total amount of money a marketer allocates for advertising during a time period  Many factors affect a firm’s advertising budget Geographic size of market Distribution of buyers Type of product Firm’s sales volume vs. competitor’s  Appropriation for business products is small relative to sales; the opposite is true for convenience products © 2013 Cengage Learning. All rights reserved.

17. 1-17

18. 1-18  Objective-and-task approach: Determining the campaign objectives and calculating the costs of the tasks needed to accomplish them  Percent-of-sales approach: Budgeting for an advertising campaign by multiplying the firm’s past and expected sales by a standard percentage  Competition-matching approach: Determining an advertising budget by trying to match competitor’s advertising outlays  Arbitrary approach: Budget specified by high-level executives in the firm; can lead to under- or over-spending © 2013 Cengage Learning. All rights reserved.

19. 1-19  Media plan  Sets forth the exact media vehicles to be used in an advertising campaign and the dates and times the advertisements will appear Reach: The percentage of consumers in the target audience exposed to advertisements in a stated period Frequency: The number of times these targeted consumers are exposed to the advertisements © 2013 Cengage Learning. All rights reserved.

20. 1-20

21. 1-21  Media planners must consider many factors Location and demographics of target audience Sizes and types of audiences typical for each advertising medium Feasibility of alternative media like the Internet or product placement  Cost comparison indicator: Compares the costs of advertising vehicles within a specific medium relative to the number of people reached  Three basic types of media schedules 1.Continuous: Ads run at a constant level 2.Flighting: Ads run periodically, alternating with periods when no ads run 3.Pulsing: Combining continuous and flighting © 2013 Cengage Learning. All rights reserved.

22. 1-22

23. © 2013 Cengage Learning. All rights reserved. 1-23

24. 1-24  Basic content and form of advertising messages are a function of several factors  Product’s features, uses, and benefits  Target audience characteristics  Campaign objectives and advertising platform  Choice of media  Regional issues: Versions of a magazine or newspaper that differ across geographic regions © 2013 Cengage Learning. All rights reserved.

25. 1-25  The written or verbal portion of advertisements  Body copy guidelines  Identify a specific desire/problem  Recommend product  State product benefits  Substantiate claims  Ask for buyer action © 2013 Cengage Learning. All rights reserved.

26. 1-26  Copy usually includes headline, subheadline, body copy, and signature  The headline is important as the only part of the copy people usually read  The subheadline links the headline to the body copy  Body copy is the main text  Storyboard: A blueprint that combines copy and visual material to show the sequence of major scenes in a commercial © 2013 Cengage Learning. All rights reserved.

27. 1-27  Contains the firm’s trademark, logo, name, and contact information  Should be  Easy to identify in a variety of sizes and contexts  Attractive  Legible  Distinctive © 2013 Cengage Learning. All rights reserved.

28. 1-28  Consists of illustrations and layout  Illustrations: Often photographs, but can be drawings, graphs, charts, and tables  Used to spark audience interest  Layout: The physical arrangement of an advertisement’s illustrations and copy © 2013 Cengage Learning. All rights reserved.

29. 1-29  Here is an advertisement with different elements labeled  Are all of these elements necessary in successful advertisements? Courtesy of the Advertising Archives

30. 1-30  Requires extensive planning and coordination  Requires detailed schedules to ensure the phases of work are finished on time  Management should monitor the quality of the work and take corrective measures when necessary © 2013 Cengage Learning. All rights reserved.

31. 1-31  Pretest: Evaluation of advertisements performed before a campaign begins  Consumer jury: A panel of existing/potential buyers of the advertised product who are asked to judge the advertisements  Sometimes utilized during the pretest  In the initial stages, managers typically rely on inquiries to judge the effectiveness of a campaign © 2013 Cengage Learning. All rights reserved.

32. 1-32  Posttest: Evaluation of advertising effectiveness after the campaign  Advertising objectives often determine which kind of posttest is appropriate  Recognition test: Individual respondents are shown the advertisement and asked whether they recognize it  Unaided recall: Asks subjects to identify recently- seen ads, but does not provide clues  Aided recall: Asks subjects to identify recently-seen ads and provides clues to jog their memories © 2013 Cengage Learning. All rights reserved.

33. 1-33

34. 1-34  Varies between firms and depends on firm size  Smaller firms  One or two internal employees  Larger firms  May have an advertising department, which could consist of a few generalists or many specialists  May use an advertising agency with skilled specialists © 2013 Cengage Learning. All rights reserved.

35. 1-35  A broad set of communication efforts used to create and maintain favorable relations between an organization and its stakeholders  Focuses on enhancing the public image of the total organization © 2013 Cengage Learning. All rights reserved.

36. 1-36  Companies use a wide variety of public relations tools to convey messages and create images Written material Digital material Speeches Event sponsorship © 2013 Cengage Learning. All rights reserved.

37. 1-37  Is communication in a news-story format about the organization and/or its products transmitted through mass media at no charge  News release: A short piece of copy publicizing an event or product  Feature article: A manuscript prepared for a specific publication  Captioned photograph: A photo with a brief description of its contents  Press conference: A meeting used to announce major news events  Is a part of public relations © 2013 Cengage Learning. All rights reserved.

38. 1-38

39. © 2013 Cengage Learning. All rights reserved. 1-39

40. 1-40  Good PR has potential benefits, so it is important for firms to monitor their PR campaigns  Environmental monitoring: Identifies changes in public opinion  PR audit: Assesses an organization’s public image  Communications audit: May include a content analysis of messages, a readability study, or a readership survey  Social audit: Measures the extent to which stakeholders view an organization as responsible © 2013 Cengage Learning. All rights reserved.

41. 1-41  Many organizations will have to deal with unanticipated negative publicity  One negative incident can demolish a firm’s positive image  Take preventative measures to reduce misconduct  Have a plan in place to deal with negative PR  Be forthright with the problem  Take prompt action © 2013 Cengage Learning. All rights reserved.

42. 1-42 AdvertisingAdvertising campaign Institutional advertisingTarget audience Advocacy advertisingAdvertising platform Product advertisingAdvertising appropriation Pioneer advertisingObjective-and-task approach Competitive advertisingPercent-of-sales approach Comparative advertisingCompetition-matching approach Reminder advertisingArbitrary approach Reinforcement advertisingMedia plan

43. © 2013 Cengage Learning. All rights reserved. 1-43 Cost comparison indicatorRecognition test Regional issues Unaided recall test CopyAided recall test StoryboardPublic relations ArtworkPublicity IllustrationsNews release LayoutFeature article PretestCaption photograph Consumer juryPress conference Posttest