Ch17 Advertising and Public Relations

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Ch17 Advertising and Public Relations Powered By Docstoc
					Lamb, Hair, McDaniel


                 CHAPTER 17

Advertising and Public Relations




                              1
  Consumers and Advertising:
        Basic Facts
 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
  market share.
 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


                                                       Maintaining
  Return on                                            sales/share
  advertising
  expense
                            Building
  (in sales
                           sales/share
  or market
  share)                                            Advertising
                                                 response function



                                         Money spent

                                 P
                Advertising can: ____ change negative attitude to positive
                                 P
                                 ____ reinforce positive attitude
                                 P
                                 ____ affect how consumers rank brand attributes
                                                                                   3
Major Types of Advertising
                   Corporate identity
   Institutional
   Advertising
                      Advocacy
                      advertising

                      Pioneering
     Product
    Advertising       Competitive

                     Comparative

                                        4
 Product 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




                                                     5
Types of Advertising and PLC




                               6
   Creative Decisions in
       Advertising
                  Determine the
               advertising objectives




Make creative decisions        Make media decisions




               Evaluate the campaign

                                                      7
         Advertising Appeals
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
Environmental
                     Centers around environmental protection
Consciousness

                                                                    8
  Common Executional
   Style in Advertising
                             Slice-of-Life
   Musical      Scientific




                              Lifestyle
                 Demon-
Mood or Image
                 stration


    Real/                    Spokes-person/
  Animated                     Testimonial
   Product      Humorous
  Symbols

                                Fantasy
                                              9
Media Decisions in
   Advertising
Monitored Media    Unmonitored Media
  Newspapers            Direct Mail

   Magazines          Trade Exhibits

 Yellow Pages     Cooperative Advertising

    Internet            Brochures

     Radio               Coupons

   Television            Catalogs

 Outdoor Media        Special Events
                                            10
Alternative Media
 Shopping Carts        Floor Ads

  Computer              Subway
 Screen Savers         Tunnel Ads

      DVDs           Video Game Ads

Interactive Kiosks   Cell Phone Ads

 Ads in Movies

 Advertainments

                                      11
Cooperative Advertising

 Cooperative
 Advertising

               An arrangement in which the
               manufacturer and the retailer
               split the costs of advertising
               the manufacturer’s brand.




                                                12
       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
      stations
    – 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 .

                                                                                                 13
     Media Scheduling
 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.



                                                    14
        Media Evaluation and Selection



      Type: Newspaper       Outdoor
            Magazine        Internet        Scheduling:
            Radio           Alternative                continuous
            Television

                                                       flighted
 Considerations:
Mix                  How much of each?
                                                       pulsing
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

                                                                                15
   Public Relations

 Public
            The element in the promotional
Relations
            mix that:
              evaluates public attitudes
              identifies issues of public concern
              executes programs to gain public
               acceptance




                                                     16
The Role of Public Relations




                               17
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,
                                               fireworks
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
                                               medical devices

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
                                                                                                                                  18
 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
   advertising.
4. Discuss the role of public relations in
   promotion.

				
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