2. 17 Advertising and Public Relations Dr. Close

3. "Advertising is salesmanship mass produced. No one would bother to use advertising if he could talk to all his prospects face-to-face. But he can't." Morris Hite

4. Advertising Evolution& Effects Ad expenses have risen over the past decade (mature mkt). Ex: Arm & Hammer –U.S. spends more on ads than any other country –GM, P&G, and Time Warner each spend approx. $10 Million a DAY on U.S advertising!!!!!

5. Types of Ads Institutional Advertising Advocacy ads (a form of institutional ads): promote goodwill, organization/industry (AT&T Supports The Cyclists of the Tour de GA race) Sunkist & Subway/Jared Support Healthy Lifestlyes…

6. Bud & Advocacy Advertising

7. Types of Ads Product Ads – promote a specific item (bamboo steamer) –Pioneering: inform/build primary demand for item (intro stage; net phone, and what else??)

8. Types of Ads Type of competitive ad: comparative ads –Specific brand comparison of a specific attribute (Pain relievers and Caffeine) –The Cola Wars! The Beer Wars! (Less carbs than Bud!) –Research must support (Listerine and plaque) vs. Any differences?

9. 1.6 Competitive Ads (Type of Product Ad) -Later in PLC -Selective demand -Build brand recall -Create affect

10. Mockvertising

11. Priceless Brand Recall

12. Ad Appeals Feel good ads Feel good ads Humor ads Humor ads Sexual-appeal ads Sexual-appeal ads Love or RomanceLove or Romance AdmirationAdmiration CourageCourage FunFun PleasurePleasure Environmentally ConsciousnessEnvironmentally Consciousness Affect

13. Got Milk?... Got Milk?... What Appeals Are Used? What Appeals Should Sell Milk?

14. Not-So Warm (yet effective) Appeals Fear-appeal ads Fear-appeal ads Scare the consumer into action Anxiety ads Anxiety ads Change behavior by inducing anxiety

15. Ad Objectives and Execution Reason-why ads Reason-why ads Hard-sell ads Hard-sell ads Comparison ads Comparison ads Information-only ads Information-only ads Testimonial ads Testimonial ads Demonstration ads Demonstration ads Advertorials Advertorials Infomercials Infomercials Persuade

16. Ad Objectives and Execution Transformational ads Transformational ads Transform consumption experiences Slice-of-life ads Slice-of-life ads Product-brand placement/ Short Internet Films Product-brand placement/ Short Internet Films Situate the brand socially Image ads Image ads Define the brand image

17. Repetition ads Repetition ads Slogan and jingle ads Slogan and jingle ads Promote brand recall Unique selling proposition (USP) ads Unique selling proposition (USP) ads Link a key attribute to the brand name Ad Objectives and Execution

18. "Great designers seldom make great advertising men, because they get overcome by the beauty of the picture - and forget that merchandise must be sold." – James Randolph Adams

19. Ad Issues Ad allowances: producer discount for retailer ads (ex: Wal-Mart circular) Cooperative ads: firms at different levels share costs (Franchises and what else??) Horizontal cooperation: agreements at same level

20. Choosing A Medium (1) 4 steps (interactive decisions): –Set Objectives: most specific; quantify time –Match media with market Must find a way to reach market (Letterman or Oprah?; Maxim or Vogue?; MySpace or Facebook?) Problem with network/mainstream advertising: you pay for the whole audience

21. Choosing A Medium (2) 4 steps (cont…) –Budgeting (most buys may use budget; Yellow Pages; local paper) –Selecting media: modern media allows targeting –Do you know the demographic/psychographic profile of readers of each of these vehicles?:

22. Where Would you Run this Honda Ad? Why?

23. Communication in Ads Effectiveness – very difficult to measure –Testing improves performance (Dr. Pepper) –Recall of ads may be poor (Infiniti)

24. Ethics in Ads (1) FTC Federal Trade Commission –Regulates deceptive ads Wrong impression (Office Depot “low cost” PC: $269 but mandatory 3 year ‘Net made it over $1000) May be true but still mislead: Kraft singles

25. Ethics in Ads (2) FTC Federal Trade Commission (cont…) –Regulates unfair ads = may not be deceptive BUT>>> “Cause injury” (kids, elderly, omit needed info…) Unpopular with business (vague) – narrower; injury not avoidable Walgreen’s: Advil as anti-inflammatory

26. Ethics in Ads (3) FTC Federal Trade Commission (cont…) –Require support (Listerine) –Can order corrective ads (Listerine & Doan’s pills) –Some feel FTC is “big brother” (hair dryers)

27. Summary 3 promotions goals Promotion methods Ethics and Ads/Promotions Any questions??