Lamb, Hair, McDaniel
Advertising and Public Relations
Consumers and Advertising:
U.S. advertising expenditure is related to economic conditions.
In recent years, 30 companies spent more than $1 billion each.
More than 100 companies spend over $300 million annually.
850,000 people work in media advertising such as newspapers,
magazines, television, radio, and internet media.
New brands with a small market share spend proportionally more
for advertising and sales promotion than those with a large
Beyond a certain level of spending, diminishing returns set in.
New brands require higher spending to reach a minimum level of
exposure needed to affect purchase habits.
Advertising may change a consumer’s negative attitude toward a
product, or reinforce a positive attitude.
Advertising can affect consumer ranking of a brand’s attributes.
Relationship between Advertising and
Market Share: Effects of Advertising
Return on sales/share
Advertising can: ____ change negative attitude to positive
____ reinforce positive attitude
____ affect how consumers rank brand attributes
Major Types of Advertising
Stimulates primary demand for new
Pioneering product or category
Used in the PLC introductory stage
Influences demand for brand in the
Competitive growth phase of the PLC
Often uses emotional appeal
Compares two or more competing
Comparative brands’ product attributes
Used if growth is sluggish, or if
competition is strong
Types of Advertising and PLC
Creative Decisions in
Make creative decisions Make media decisions
Evaluate the campaign
Profit Product saves, makes, or protects money
Health Appeals to body-conscious or health seekers
Love or romance Used in selling cosmetics and perfumes
Fear Social embarrassment, old age, losing health
Admiration Reason for use of celebrity spokespeople
Convenience Used for fast foods and microwave foods
Fun and pleasure Key to advertising vacations, beer, parks
Vanity and egotism Used for expensive or conspicuous items
Centers around environmental protection
Style in Advertising
Mood or Image
Media Decisions in
Monitored Media Unmonitored Media
Newspapers Direct Mail
Magazines Trade Exhibits
Yellow Pages Cooperative Advertising
Outdoor Media Special Events
Shopping Carts Floor Ads
Screen Savers Tunnel Ads
DVDs Video Game Ads
Interactive Kiosks Cell Phone Ads
Ads in Movies
An arrangement in which the
manufacturer and the retailer
split the costs of advertising
the manufacturer’s brand.
Presidential TV Advertising
When it comes to advertising, presidential hopefuls continue to
favor local TV:
– Nearly 95 percent of presidential campaign ads between
January 1 to October 10, 2007 were aired on local TV
– Mitt Romney led other Republican presidential candidates
with 10,893 TV ads in that time period
– Bill Richardson led Democrats with 5,975 TV ads,
followed by Barack Obama with 4,293 ads
SOURCE: “Candidates Still Bank On Local TV Ads,” Mediaweek, Oct 22, 2007 p22 .
Continuous Advertising is run steadily
Media Schedule throughout the period.
Flighted Advertising is run heavily every
Media Schedule other month or every two weeks.
Pulsing Advertising combines continuous
Media Schedule scheduling with flighting.
Seasonal Advertising is run only when the
Media Schedule product is likely to be used.
Media Evaluation and Selection
Type: Newspaper Outdoor
Magazine Internet Scheduling:
Radio Alternative continuous
Mix How much of each?
Cost per contact How much per person?
Reach How many people?
Frequency How often? seasonal
Audience selectivity How targeted is the
audience? Winter Spring Summer Fall
The element in the promotional
evaluates public attitudes
identifies issues of public concern
executes programs to gain public
The Role of Public Relations
Consumer Education Sites
consumer.gov/idtheft Identity theft
privacyrights.org Consumer privacy rights and responsibilities
annualcreditreport.com One free credit report/consumer each year
consumeraction.gov Broad range of consumer education topics
consumerworld.org Latest consumer news
consumer.gov/idtheft – identity theft
consumerreports.org/main/home.jsp Unbiased product information rights and responsibilities
privacyrights.org – consumer privacy
annualcreditreport.com – one free credit report/consumer each year
consumer.gov consumeraction.gov fed gov’t sites
Directs consumers to – broad range of consumer education topics
consumerworld.org – latest consumer news
consumerreports.org/main/home.jsp – unbiased product information
pueblo.gsa.gov Brochures and pamphlets
consumer.gov – directs consumers to fed gov’t sites
pueblo.gsa.gov – brochures and pamphlets
ftc.gov/ftc/consumer.htm ftc.gov/ftc/consumer.htm – unfair and deceptive business practices
Unfair and deceptive business practices
fcc.gov – radio, television, satellite, and telephone
motorist.org – lists car repair shops meeting set standards
fcc.gov Radio, television, satellite, and telephone
recall.gov – safety and product recall information
cpsc.gov – safety, toys, nursery equipment, home appliances, furniture, computers,
motorist.org Lists car repair shops meeting set standards
nhtsa.gov – defects in automobiles, crash test ratings, safety recalls, air bags
and child safety seats
recall.gov Safety and product recall information
fda.gov – food safety or food products, prescription or over the counter drugs, or
cpsc.gov Safety, toys, nursery equipment, home appliances,
furniture, computers, fireworks
nhtsa.gov Defects in automobiles, crash test ratings, safety
recalls, air bags and child safety seats
fda.gov Food safety or food products, prescription or over the
counter drugs, or medical devices
Ch 17 Discussion Questions
1. Discuss the relationship between
advertising and market share.
2. Discuss the advantages and disadvantages
of various media.
3. Explain media evaluation and selection in
4. Discuss the role of public relations in