1. Chapter Fourteen Advertising, Sponsorships, and Public Relations

2. Chapter Objectives Identify various types of advertising. Identify various types of advertising. Discuss advertising agency responsibilities and trends. Discuss advertising agency responsibilities and trends. Describe the appeals used in designing an advertisement. Describe the appeals used in designing an advertisement. Differentiate the types of message strategies. Differentiate the types of message strategies. Describe the various ad executions that are available. Describe the various ad executions that are available. Discuss the advantages and the disadvantages of the primary media. Discuss the advantages and the disadvantages of the primary media. Describe the use of sponsorships Describe the use of sponsorships Identify the role of public relations in IMC Identify the role of public relations in IMC

3. Dell$50.64 IBM$39.16 Hewlett-Packard$32.49 Intel$19.41 Microsoft$19.26 Revenue per Ad Dollar Computers and Software Amusement parks 9.6% Beverages 9.0% Dolls and stuffed toys 11.2% Eating places 3.2% Food products 11.1% Grocery stores 1.0% Men’s clothing 3.3% Motion pictures, videotapes 12.5% Perfume and cosmetics 7.2% Real Estate Agents 14.0% Women’s clothing 2.7% Consumer Goods Advertising-to-Sales Ratios Consumer Goods Advertising-to-Sales Ratios Milk gains sex appeal in this advertisement— the product is differentiated from hard liquor, which cannot boast the same health benefit. Source: Courtesy of Bozell Worldwide, Inc. as agent for the National Fluid Milk Processor Promotion Board. Advertising

4. Types of Advertising Product advertising Product advertising Brand Brand Informative Informative Persuasive Persuasive Pioneer Pioneer Comparative Comparative Institutional advertising Institutional advertising Designed to build the corporate reputation or develop goodwill for the corporation Designed to build the corporate reputation or develop goodwill for the corporation MacIntosh "1984" Commercial

5. Advertising Agencies Provide the following services: Provide the following services: Identification and development Identification and development of a brand’s target market Business-to-business marketing expertise Business-to-business marketing expertise Brand and image development Brand and image development Planning, preparing, and production of ads Planning, preparing, and production of ads Planning and purchasing of media time and space Planning and purchasing of media time and space Integration of ads with other components of the IMC, along with assistance in the overall IMC plan Integration of ads with other components of the IMC, along with assistance in the overall IMC plan Trends* Trends* In-House, Full-Service Agency, Limited Service In-House, Full-Service Agency, Limited Service Decentralization Decentralization

6. Creative Design Begins with development of advertising Begins with development of advertising objectives, target audiences, and message themes message themesmessage themes Advertising appeal : what the creative designer will use to attract attention and interest in an ad. Advertising appeal : what the creative designer will use to attract attention and interest in an ad. Emotional: Builds a bond between brand and consumer Emotional: Builds a bond between brand and consumer Fear: Focuses on what happens without the product Fear: Focuses on what happens without the product Humor: Grabs attention and keeps the audience’s interest Humor: Grabs attention and keeps the audience’s interest Sex: Increases viewer attention, but can be controversial Sex: Increases viewer attention, but can be controversial Music: Links person emotionally to the product and has strong intrusion value Music: Links person emotionally to the product and has strong intrusion value Rational: Effective with high involvement products and with consumers already interested in the product Rational: Effective with high involvement products and with consumers already interested in the product Message Strategy Message Strategy Execution Execution Media Selection Media Selection Emotion Impact Mean Joe Green

7. Message Strategies Used to deliver the message Used to deliver the message Message strategy is what is being said, while the appeal is how it is being said. Message strategy is what is being said, while the appeal is how it is being said. Types of message strategies: Types of message strategies: Cognitive Cognitive Affective Affective Conative Conative Ad content Attitude toward the brand Emotional response Attitude toward the ad “Affect Transference*”

8. Execution The manner in which the advertisement will be presented The manner in which the advertisement will be presented The setting in the movie scene (Message strategy is what the actor says, while appeal is how he says it.) The setting in the movie scene (Message strategy is what the actor says, while appeal is how he says it.) Types of advertising execution: Types of advertising execution: Animation Animation Slice-of-Life Slice-of-Life Dramatization Dramatization Lifestyle Lifestyle Testimonial Testimonial Fantasy Fantasy Presentation Presentation Kellogg's Brynner Ad

9. Media Choices Advertising Expenditures by Medium Source: “Global Adspend Trends: Global TV Advertising,” International Journal of Advertising, Vol. 22, No. 4 (2003), 567–568.

10. Broadcast Media Television Television Incorporates both visual images and sounds Incorporates both visual images and sounds Has high reach Has high reach Has a relatively low cost per thousand Has a relatively low cost per thousand Is cluttered with ads Is cluttered with ads Commercials have short life spans Commercials have short life spans NetworkShow Advertising Cost NBCFriends$473,500 Will & Grace$414,500 ER$404,814 Scrubs$360,950 Coupling$316,400 Good Morning Miami$279,813 Law & Order$266,220 CBSSurvivor$390,367 CSI$310,324 Fox24$292,200 The Simpsons$249,067 ABCMonday Night Football$272,867 The Bachelor$253,940 Prime-Time Advertising Cost for a 30-Second Ad Radio Radio More intimate More intimate Mobile Mobile Definable target market Definable target market Flexible Flexible Can be done on a short lead-time Can be done on a short lead-time Short exposure time Short exposure time Few national networks available Few national networks available

11. Print Media Primary print media: Newspapers, magazines, Primary print media: Newspapers, magazines, the Yellow Pages, outdoor, and direct mail account for 51.4% of the total advertising expenditures. Largest percentages: direct mail-19.3% and newspapers-19.2% Largest percentages: direct mail-19.3% and newspapers-19.2% Newspapers Newspapers High credibility High credibility Short lead times Short lead times Flexibility Flexibility Geographic selectivity Geographic selectivity Short life span Short life span Poor production quality Poor production quality Lack of freedom in creation of ads Lack of freedom in creation of ads Magazines Magazines Well targeted Well targeted High-quality ads High-quality ads Long advertising life Long advertising life Losing ground to the Internet and tv Losing ground to the Internet and tv Require long lead times Require long lead times Yellow Pages Yellow Pages Essential for local businesses, especially service and specialty Essential for local businesses, especially service and specialty Lack flexibility and creative freedom Lack flexibility and creative freedom Has limited exposure Has limited exposure Outdoor advertising Outdoor advertising Involves billboards, public signs, and blimps Involves billboards, public signs, and blimps Excellent for local ads Excellent for local ads Low cost Low cost Short exposure time Short exposure time Limited audience segmentation Limited audience segmentation

12. Media Schedules and Costs* Advertising on the Super Bowl: In 2005, the cost of a Super Bowl ad was $2,400,000 Scheduling Coverage Coverage Reach X Frequency (GRP) Reach X Frequency (GRP) Timing Timing Steady, Pulse Steady, Pulse Advertising Calendar Advertising CalendarCosts CPM (Cost Per Thousand) CPM (Cost Per Thousand) Total (Advertisement, Campaign) Total (Advertisement, Campaign)

13. Sponsorships Involves a company paying a fee to an event, Involves a company paying a fee to an event, person, or organization in exchange for a direct association with that event, person, or organization Has been very effectively used by a few companies Has been very effectively used by a few companies To be successful, there needs to be a visible link with the sponsored event to maximize the effect through advertising To be successful, there needs to be a visible link with the sponsored event to maximize the effect through advertising Breakdown of North American Sponsorships Source: “Events & Sponsorships,” Marketing News, 38 (July 15, 2004), 18

14. Public Relations Responsible for overseeing publicity Responsible for overseeing publicity and communications with society and organizations Key functions are: Key functions are: Monitoring external and internal publics Monitoring external and internal publics Providing IMC-relevant information to each public Providing IMC-relevant information to each public Promoting image building activities Promoting image building activities Reacting to any news or emergencies that may occur Reacting to any news or emergencies that may occur Examples*: news release, press conference, Examples*: news release, press conference, PSA (public service announcement), “buzz”