1. 19 Advertising and Public Relations

2. Copyright © Houghton Mifflin Company. All rights reserved.19 | 2 Agenda The Nature and Types of Advertising Developing an Advertising Campaign Who Develops the Advertising Campaign? Public Relations

3. Copyright © Houghton Mifflin Company. All rights reserved.19 | 3 The Nature and Types of Advertising Advertising –Paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media –Promotes goods, services, ideas, images, issues, people, and anything else that advertisers want to publicize or foster

4. Copyright © Houghton Mifflin Company. All rights reserved.19 | 4 The Nature and Types of Advertising

5. Copyright © Houghton Mifflin Company. All rights reserved.19 | 5 Developing an Advertising Campaign Advertising Campaign –The design of a series of advertisements and placing them in various advertising media to reach a particular target audience

6. Copyright © Houghton Mifflin Company. All rights reserved.19 | 6 General Steps in Developing and Implementing an Advertising Campaign FIGURE 19.1

7. Copyright © Houghton Mifflin Company. All rights reserved.19 | 7 Developing an Advertising Campaign (cont’d) Identifying and Analyzing the Target Audience –The group of people at whom advertisements are aimed Location and geographic distribution Distribution of demographic factors Lifestyle information Consumer attitudes

8. Copyright © Houghton Mifflin Company. All rights reserved.19 | 8 Developing an Advertising Campaign (cont’d) Defining the Advertising Objectives –What does the firm hope to accomplish with the campaign? Objectives should be clear, precise, and measurable. Increased sales (units or dollars) and/or increased product or brand awareness

9. Copyright © Houghton Mifflin Company. All rights reserved.19 | 9 Altoids Understands the Importance of Advertising in Building Its Brand Equity Reprinted with permission of the American Advertising Federation.

10. Copyright © Houghton Mifflin Company. All rights reserved.19 | 10 Developing an Advertising Campaign (cont’d) Creating the Advertising Platform –Basic issues or selling points to be included in the advertising campaign Issues in the selection and use of the product that are important to customers Determining the Advertising Appropriation –Advertising budget for a specified period Geographic size of the market and distribution of buyers within the market are important factors in determining the size of the budget

11. Copyright © Houghton Mifflin Company. All rights reserved.19 | 11 Developing an Advertising Campaign (cont’d)

12. Copyright © Houghton Mifflin Company. All rights reserved.19 | 12 Top 10 Product Categories for Ad Spending in the U.S. Source:”U.S. Advertising Spending Rose More than 5% in 2003, Nielsen Monitor-Plus Reports,” Nielsen Media Research, press release, February 19, 2004, www.nielsenmedia.com. Data based on spending estimates in the following media: Network TV, Spot TV, Syndicated TV, Hispanic TV, National/Local Magazine, Network/Spot Radio (19 markets), Outdoor, FSI (CPGs only), National/Local Newspapers (display ads only), National/Local Sunday Supplements. Product Category Advertising Spending 2003 (in millions) Automotive - Factory$8,938 Auto Dealerships - Local$4,953 Autos - Dealer Associations$4,301 Department Stores$4,070 Motion Pictures$3,468 Restaurants - Quick Service$3,442 Prescription Drugs - Human$3,226 Telephone Services - Wireless$2,307 Direct Response Products$1,757 Furniture Stores$1,402

13. Copyright © Houghton Mifflin Company. All rights reserved.19 | 13 Advertising in the Automotive Industry YearTotal Ad Spending (millions) Vehicles Sold in U.S. (millions) Ad Spending per Vehicle Sold 1995$5,39214.7$366 2000$8,11317.3$468 2004 (est.) $10,68416.6$644 Source: Adapted from David J. Kiley, “The Only Way into the Fast Lane,” American Demographics, April 2004, p.38.

14. Copyright © Houghton Mifflin Company. All rights reserved.19 | 14 Developing an Advertising Campaign (cont’d) Developing the Media Plan –Specifies media vehicles (e.g., magazines, radio, and television stations, and newspapers) and the schedule for running the advertisements –Plan objectives focus on achieving the reach and frequency that the budget will allow. Reach: the percentage of consumers in a target market exposed to an advertisement in a specified period Frequency: the number of times targeted consumers are exposed to an advertisement in a specified period

15. Copyright © Houghton Mifflin Company. All rights reserved.19 | 15 Developing an Advertising Campaign (cont’d) Developing the Media Plan (cont’d) –Cost comparison indicator A means of comparing the cost of vehicles in a specific medium in relation to the number of people reached The indicator is stated as the cost for exposing one thousand people (CPM) to an advertisement in a medium. –Media scheduling types Continuous Flighting Pulsing

16. Copyright © Houghton Mifflin Company. All rights reserved.19 | 16 Developing an Advertising Campaign (cont’d) Creating the Advertising Message Product Features, Uses, and Benefits Characteristics of the Target Audience Advertising Campaign Objectives and Platform Choice of Media Form and Content of Advertising Message

17. Copyright © Houghton Mifflin Company. All rights reserved.19 | 17 Geographic Divisions for Time Regional Issues FIGURE 19.2 Source: Time magazine.

18. Copyright © Houghton Mifflin Company. All rights reserved.19 | 18

19. Copyright © Houghton Mifflin Company. All rights reserved.19 | 19

20. Copyright © Houghton Mifflin Company. All rights reserved.19 | 20

21. Copyright © Houghton Mifflin Company. All rights reserved.19 | 21

22. Copyright © Houghton Mifflin Company. All rights reserved.19 | 22 Developing an Advertising Campaign (cont’d) Creating the Advertising Message (cont’d) –Copy: the verbal portion of advertisements Includes headlines, subheadlines, body copy, and signature –Copy guidelines Identify a specific desire or problem Recommend the product as the best way to satisfy the desire or solve the problem State product benefits Substantiate advertising claims Ask the buyer to take action

23. Copyright © Houghton Mifflin Company. All rights reserved.19 | 23 Exercise Identify the company or brand that is associated with each slogan. 1.“Like a rock” 2.“Always a Low Price. Always” 3.“It’s the Cheesiest” 4.“We’ll leave the light on” 5.“Maybe She’s Born with It”

24. Copyright © Houghton Mifflin Company. All rights reserved.19 | 24 Class Exercise 8.“You’re in Good Hands” 9.“For all your 2000 body parts” 10.“Eat More Chicken” 11.“Think outside the bun” 12.“M’m M’m Good”

25. Copyright © Houghton Mifflin Company. All rights reserved.19 | 25 Developing an Advertising Campaign (cont’d) Creating the Advertising Message (cont’d) –Storyboard: A mockup combining copy and visual material to show the sequence of major scenes in a commercial Plugged “Hum” Unplugged “Buzz” Leap “Yeah” Upset “Oops”

26. Copyright © Houghton Mifflin Company. All rights reserved.19 | 26 Developing an Advertising Campaign (cont’d) Creating the Advertising Message (cont’d) –Artwork An ad’s illustration and layout –Illustrations Photos, drawings, graphs, charts, and tables used to spark audience interest –Layout The physical arrangement of an ad’s illustration and copy

27. Copyright © Houghton Mifflin Company. All rights reserved.19 | 27 Illustration Techniques for Advertisements Product alone Emphasis on special features Product in setting Product in use Product being tested Result of product’s use Dramatizing headline Dramatizing situation Comparison Contrast Diagrams, charts, and graphs Symbolic Testimonials

28. Copyright © Houghton Mifflin Company. All rights reserved.19 | 28 Components of a Print Advertisement Reprinted with permission of Del Monte Foods. All Rights Reserved.

29. Copyright © Houghton Mifflin Company. All rights reserved.19 | 29 Developing an Advertising Campaign (cont’d) Executing the Campaign –Planning and coordination –Implementation Detailed scheduling of campaign phases Evaluation and corrective action as necessary to make the campaign more effective

30. Copyright © Houghton Mifflin Company. All rights reserved.19 | 30 Developing an Advertising Campaign (cont’d) Evaluating Advertising Effectiveness

31. Copyright © Houghton Mifflin Company. All rights reserved.19 | 31 Question Is using celebrities in an ad campaign a good way to stimulate brand appeal?

32. Copyright © Houghton Mifflin Company. All rights reserved.19 | 32 Who Develops the Advertising Campaign? Individuals Firm’s Advertising Department Advertising Agency

33. Copyright © Houghton Mifflin Company. All rights reserved.19 | 33 Who Develops the Advertising Campaign? (cont’d) Individuals Persons within the firm –Advertising departments in larger firms Copywriters, artists, media buyers, and technical production coordinators Advertising agency –Copywriting, artwork, technical production, and formulation of the media plan Media experts, researchers, and legal advisers

34. Copyright © Houghton Mifflin Company. All rights reserved.19 | 34 Public Relations Communications efforts used to create and maintain favorable relations between an organization and its stakeholders Focuses on enhancing the image of the total organization

35. Copyright © Houghton Mifflin Company. All rights reserved.19 | 35 Public Relations Tools Brochures Newsletters Company magazines News releases Annual reports Corporate identity materials Speeches Event sponsorship

36. Copyright © Houghton Mifflin Company. All rights reserved.19 | 36 Net Sights Domestic and international corporate press releases are available at PR Newswire (www.prnewswire.com). Special subject areas highlight market segments, investor interests, and current news.www.prnewswire.com

37. Copyright © Houghton Mifflin Company. All rights reserved.19 | 37 Publicity A news story type of communication transmitted through a mass medium at no charge –News release A short piece of copy publicizing an event or a product –Feature article A manuscript of up to 3,000 words 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

38. Copyright © Houghton Mifflin Company. All rights reserved.19 | 38

39. Copyright © Houghton Mifflin Company. All rights reserved.19 | 39 Publicity (cont’d) Advantages –Credibility –News value –Significant word-of-mouth communications –A perception of being endorsed by the media Limitations –Must be accepted by news media –Must be timely, interesting, accurate, and in the public interest –Inability to control content or time of release to public

40. Copyright © Houghton Mifflin Company. All rights reserved.19 | 40 Evaluating Public Relations Effectiveness Environmental monitoring –Identifies changes in public opinion affecting the organization Public relations audit –Assesses an organization’s image among the public or evaluates the effect of a specific public relations program Communications audit –Analyzes the content of organizational messages Social audit –Measures the extent to which stakeholders view the organization as being socially responsible

41. Copyright © Houghton Mifflin Company. All rights reserved.19 | 41 Dealing with Unfavorable Public Relations Prevention of negative incidents and events –Safety programs, inspections, and effective quality control procedures Preparedness for negative incidents and events –Predetermined policies and procedures that expedite news coverage –Being forthright with the press and the public