1. Chapter 18: “Advertising and Public Relations”
Joel R. Evans & Barry Berman
Marketing, 10e: Marketing in the 21st Century

2. Chapter Objectives
To examine the scope, importance, and characteristics of advertising
To study the elements in an advertising plan
To examine the scope, importance, and characteristics of public relations
To study the elements in a public relations plan

3. Types of Promotion ADVERTISING PUBLIC RELATIONS Sales Promotion
PROMOTION MIX
Sales Promotion
Personal Selling

4. Advertising
Advertising is paid, nonpersonal communication regarding goods, services, organizations, people, places, and ideas that is transmitted through various media by business firms, government and other nonprofit organizations, and individuals who are identified in the advertising message as the sponsor.
The message is generally controlled by the sponsor.

5. Public Relations
Public relations includes any communication to foster a favorable image for goods, services, organizations, people, places, and ideas among their publics. It may be nonpersonal, personal, paid or nonpaid, and sponsor controlled or not controlled.
Publicity is the form of public relations that entails nonpersonal communication passed on via various media but not paid for an identified sponsor. Wording and placement of publicity messages are generally media controlled.

6. Developing an Advertising Plan
Establishing a Budget
4. Developing Themes
2. Assigning Responsibility
Setting Objectives
Selecting Media
9.Evaluating Success/Failure
6. Creating Ads
8. Considering Cooperative Efforts
7. Timing Ads
Feedback

7. Advertising Plan: Setting Objectives
An organization’s goals can be divided into demand or image types, with image-oriented ads being part of public relations.
Setting Objectives
Demand-Oriented Ads
Inform
Persuade
Remind
Image-Oriented Ads
Develop image
Maintain image
Generate primary demand
Generate selective demand

8. Advertising Plan: Assigning Responsibility
In assigning responsibility, a firm can rely on internal marketing personnel, use an in-house ad department, or hire an outside ad agency.
2. Assigning Responsibility
Setting Objectives
Benefits of Ad Agency
Provides ad-related services
Market and consumer research
Product planning
Public relations
Benefits of In-House Ad Dept.
Full knowledge of product/firm
Complete confidentiality
Control of costs and budgets

9. Advertising Plan: Budgeting
Establishing Budget
The firm establishes a budget after considering various requirements such as types of ads, media, frequency, and campaign goals.
2. Assigning Responsibility
Setting Objectives
Budget types
All-you-can-afford
Incremental
Competitive parity
Percentage-of-sales
Objective-and-task

10. Advertising Plan: Developing Themes
Establishing Budget
4. Developing Themes
2. Assigning Responsibility
Setting Objectives
The advertising theme is the overall appeal of the ad campaign. A good or service appeal centers on the item and its attributes; a consumer appeal describes a product’s benefits rather than features; and institutional ads project an image.

11. Advertising Plan: Selecting Media
Establishing Budget
2. Assigning Responsibility
4. Developing Themes
Setting Objectives
Selecting Media
Media selections include
Newspapers
TV/Radio
Direct Mail
Magazines
Internet
Outdoor

12. Advertising Plan: Creating Ads
Establishing Budget
2. Assigning Responsibility
4. Developing Themes
Setting Objectives
Selecting Media
Key Decisions
Determine message, content, and devise ads
Outline promotion schedule
Specify medium for ads
Determine message type and frequency
6. Creating Ads

13. Advertising Plan: Timing
Establishing Budget
4. Developing Themes
2. Assigning Responsibility
Setting Objectives
Selecting Media
Timing includes how often and when ads run.
6. Creating Ads
7. Timing Ads

14. Advertising Plan: Cooperative Efforts
Establishing Budget
2. Assigning Responsibility
4. Developing Themes
Setting Objectives
Cooperative ads can provide prestige and shared costs, and increase revenues.
Selecting Media
6. Creating Ads
8. Considering Cooperative Efforts
7. Timing Ads

15. Advertising Plan: Evaluation
Establishing Budget
2. Assigning Responsibility
4. Developing Themes
Setting Objectives
Evaluating success or failure includes measuring the goals achieved. Carefully established campaign goals are more easily evaluated and assessed.
Selecting Media
9. Evaluating Success or Failure
6. Creating Ads
8. Considering Cooperative Efforts
7. Timing Ads
Feedback

16. Types of Media
Newspapers
TV/Radio
Direct Mail
Magazines
Outdoor
Internet
Advantages and disadvantages must be weighed carefully — and consider the goals of the campaign, the item advertised, the audience sought, and the cost per viewer.
What are the long-term goals?

17. Media Considerations (1)
Factors to consider include: costs, reach, waste, message permanence, persuasive impact, narrowcasting, frequency, clutter, lead time, and media innovations.
Advertising media costs are outlays for media time or space and are related to ad length or size, and media attributes.
Reach is the number of viewers, readers, or listeners in an audience.
Waste is the audience that is not in advertiser’s target audience.

18. Media Considerations (2)
Message permanence refers to the number of exposures one ad generates and how long it is available to the public.
Persuasive impact is the ability of a medium to stimulate consumers.
Narrowcasting presents messages to limited and well-defined audiences.
Frequency refers to how often a medium can be used.
Clutter involves the number of ads in a medium.
Lead time is the period required by a medium for placing an ad.
Black &
White
Color
Circulation and passalong rates matter!

19. Ethical Issues and Advertising
The U.S. liquor industry has lifted its self-imposed ban on radio and TV ads.
Because national TV networks, media buyers often bypass networks and purchase time directly from local station affiliates or cable systems.
If beer is a dominant product in TV advertising, why should liquor ads be treated differently?

20. The Relationship Between Public Relations and Other Elements of Promotion Mix
Public Relations A McDonald’s ad for Ronald McDonald Advertising House
This institutional ad involves both public relations and advertising.
Public Relations An AT&T salesperson visiting a local high school Personal Selling and encouraging students not to drop out
This community-service gesture involves both public relations and personal selling.
Public Relations
Vons supermarkets participating in a program where it contributes a small percentage of shoppers’ spending to schools
Sales Promotion
This community-service gesture involves both public relations and sales promotion.
Public Relations
News report about health issues related to smoking
Publicity
This news report involves publicity—the nonpaid, mass media, nonsponsored form of public relations.

21. Developing a Public Relations Plan
Outlining Types of Public Relations
2. Assigning Responsibility
Selecting Media
Setting Objectives
5. Creating Messages
7. Evaluating Success/Failure
6. Timing Messages
Feedback

22. Public Relations Plan: Setting Objectives
An organization’s public relations goals are image-oriented. Some goals include:
Gain placement for news releases
Have media report on accomplishments
Present the viewpoint desired
Coordinate publicity with advertising
Gain increased media coverage
Sustain favorable publicity
Gain favorable public opinion
Defuse impact of negative incidents
Appropriately handle emergency situations
Setting Objectives

23. Public Relations Plan: Assigning Responsibility
Setting Objectives
In assigning responsibility, a firm can rely on its existing personnel, an in-house public relations department, or an in-house publicity department. Or it may hire an outside ad agency to handle PR or a specialized PR firm with extensive, customized, resources and expertise.

24. Public Relations Plan: Outlining Types
Types of Publicity
News publicity
Business features articles
Service feature articles
Finance releases
Product releases
Pictorial releases
Video news releases
Background editorial
Emergency publicity
Outlining Types of Public Relations
2. Assigning Responsibility
Setting Objectives

25. Public Relations Plan: Selecting Media
Outlining Types of Public Relations
2. Assigning Responsibility
Selecting Media
Setting Objectives
Types of media
Newspapers TV
Magazines and Journals
Radio
Business publications
Internet

26. Public Relations Plan: Creating Messages
Outlining Types of Public Relations
2. Assigning Responsibility
Setting Objectives
Selecting Media
Message points:
It should be newsworthy & easy to read, view, hear, or use.
Professional standards are established and followed.
Clear language is used.
Effectively discuss positive & negative facts.
Have ‘point person’ available.
5. Creating Messages

27. Public Relations Plan: Timing Messages
Outlining Types of Public Relations
2. Assigning Responsibility
Setting Objectives
Selecting Media
PR precedes new product introductions; ongoing PR should be spaced through year; and firms must handle emergencies immediately.
5. Creating Messages
6. Timing Messages

28. Public Relations Plan: Evaluation
Outlining types of Public Relations
2. Assigning Responsibility
Selecting Media
Setting Objectives
PR may be evaluated based on image surveys, and the quantity and quality of media coverage.
7. Evaluating Success or Failure
5. Creating Messages
6. Timing Messages
Feedback

29. Ethical Issues and Public Relations
The independent media regularly provide extensive coverage regarding poor public relations.
Could problems be avoided if appropriate public relations are employed?

30. Chapter Summary
This chapter examines the scope, importance, and characteristics of advertising.
It provides a study of the elements in an advertising plan.
It reviews the scope, importance, and characteristics of public relations.
It covers the elements in a public relations plan.