CHAPTER 16 Advertising and Public Relations 16 Advertising and Public Relations ADVERTISING CHAPTER • Advertising Paid, non- personal communication Chapter Objectives through various media about a business firm, not-for- 1 Identify the three major 4 Identify the major types 7 Explain the roles of cross- profit organization, product, or idea by a sponsor identified advertising objectives and of advertising appeals and promotion, public in a message that is intended to inform or persuade the two basic categories of discuss their uses. relations, publicity, and members of a particular audience. advertising. ethics in an organization’s 5 List and compare the promotional strategy. TYPES OF ADVERTISING 2 List the major advertising major advertising media. strategies. • Product advertising Nonpersonal selling of a particular Outline the organization 3 Describe the process of 6 of the advertising 8 good or service. Explain how marketers creating an advertisement. function and the role of assess promotional • Institutional advertising Promotion of a concept, an an advertising agency. effectiveness. idea, a philosophy, or the goodwill of an industry, company, organization, person, geographic location, or government agency. CHAPTER 16 Advertising and Public Relations CHAPTER 16 Advertising and Public Relations OBJECTIVES OF ADVERTISING ADVERTISING STRATEGIES • Informative advertising Promotion that seeks to develop initial demand • Advertising is a means of bringing buyers and sellers together. for a good, service, organization, person, place, idea, or cause. • Marketers often combine several strategies to meet their objectives. • Persuasive advertising Promotion that attempts to increase demand for an existing good, service, organization, person, place, idea, or cause. COMPARATIVE ADVERTISING • Reminder advertising Advertising that reinforces previous promotional • Comparative advertising Advertising strategy that emphasizes messages activity by keeping the name of a good, service, organization, person, place, with direct or indirect promotional comparisons between competing brands. idea, or cause before the public. • Market leaders seldom acknowledge competing brands. • Advertisers coordinate advertising objectives with the product’s stage in the product life cycle. CELEBRITY TESTIMONIALS • Use of celebrity spokespeople for products. • Can build brand equity but can hurt brand if celebrity is hit by scandal. CHAPTER 16 Advertising and Public Relations CHAPTER 16 Advertising and Public Relations RETAIL ADVERTISING CREATING AN ADVERTISEMENT • Includes all advertising by retail stores that sell goods or services directly • Marketers spend $300 billion annually on advertising campaigns. to the consuming public. • Cooperative advertising Strategy in which a retailer shares advertising TRANSLATING ADVERTISING OBJECTIVES INTO costs with a manufacturer or wholesaler. ADVERTISING PLANS INTERACTIVE ADVERTISING • Involves two-way promotional messages transmitted through communication channels that induce message recipients to participate actively in the promotional effort. • Changes balance between marketers and consumers. CHAPTER 16 Advertising and Public Relations CHAPTER 16 Advertising and Public Relations ADVERTISING MESSAGES DEVELOPING AND PREPARING ADS • Goals: • Advertising campaign Series of different but related ads that use a single theme and appear in different media within a specified time period. • Gain attention. • Example: Ecomagination integrated marketing campaign by • Inform and/or persuade. General Electric. • Lead to purchase or other desired action. ADVERTISING APPEALS • After idea conception, ad must be refined from rough • Appeals can provide information or appeal to emotion. sketch to finished layout. • Fear appeals—imply or state that incorrect buying decisions could lead to CREATING INTERACTIVE ADS bad consequences. • Lively, engaging content. • Humor seeks to create positive mood related to good or service. • Use of advertising in games, or advergames. • Ads based on sex can be attention-getting, but they boost recall only if the • Banners are the most common form of online advertisement. appeal is appropriate to the type of product. • Use of pop-ups is declining; adware seen as disreputable. CHAPTER 16 Advertising and Public Relations CHAPTER 16 Advertising and Public Relations MEDIA SELECTION MEDIA SELECTION CHAPTER 16 Advertising and Public Relations CHAPTER 16 Advertising and Public Relations MEDIA SCHEDULING ORGANIZATION OF THE ADVERTISING FUNCTION • After selecting media, marketers determine the most effective timing and sequence for a series of advertisements. • Organizational arrangements vary from company to company. • Influenced by seasonal sales patterns, repurchase cycles, and competitors’ • Usually organized as a staff department reporting to a vice president of activities. marketing. • Measure effectiveness in three ways: • Major tasks include include advertising research, design, copywriting, • Reach—the number of people exposed to an advertisement. media analysis, and in some cases, sales and trade promotion. • Frequency—the number of times an individual is exposed to an ADVERTISING AGENCIES advertisement. Minimum of three exposures is recommended. • Advertising agency Firm whose marketing specialists help advertisers • Gross rating point—the product of the reach times the frequency. plan and prepare advertisements. • May offer creativity and objectivity that is difficult to maintain in an internal department. CHAPTER 16 Advertising and Public Relations CHAPTER 16 Advertising and Public Relations PUBLIC RELATIONS • Firm’s communications and relationships with its various publics, including customers, employees, stockholders, suppliers, and government agencies. • Serves broad objectives by enhancing prestige and image of all parts of the organization. • PR department is link between the firm and the media. • Nonmarketing public relations—a company’s messages about general management issues. • Marketing public relations (MPR)—narrowly focused public relations activities that directly support marketing goals. • Publicity Nonpersonal stimulation of demand for a good, service, place, idea, person, or organization by unpaid placement of significant news regarding the product in a print or broadcast medium. CHAPTER 16 Advertising and Public Relations CHAPTER 16 Advertising and Public Relations CROSS-PROMOTION MEASURING PROMOTIONAL EFFECTIVENESS • Cross-promotion Promotional technique in which marketing partners • Promotional prices vary widely. share the cost of a promotional campaign that meets their mutual needs. • Because of expense, advertising professionals must demonstrate how • Provide greater benefits in return for both partners. promotional programs contribute to increased sales and profits. • Example: Cingular Wireless promoting artists such as Coldplay, Gwen MEASURING ADVERTISING EFFECTIVENESS Stefani, and Alicia Keys. • Media research—assesses how well particular medium delivers message, • Cingular sells more ringtones because it features these artists. where and when to place the message, and the size of the audience. • Artists gain greater exposure. • Message research—tests consumer reactions to an advertisement’s creative message. • Pretesting—assessing an advertisement’s likely effectiveness before it is completed. • Posttesting—assessing advertisement’s effectiveness after it has appeared. CHAPTER 16 Advertising and Public Relations CHAPTER 16 Advertising and Public Relations MEASURING PUBLIC-RELATIONS ETHICS IN NONPERSONAL SELLING EFFECTIVENESS • Count media placements, conducting public opinion polls. ADVERTISING ETHICS • Advertising to children, advertising alcohol, and the use of • Conduct focus groups, interview opinion leaders, cookies on Web sites are all areas of ethical controversy. before-and-after polls. • Puffery—exaggerated claims of a product’s superiority or the EVALUATING INTERACTIVE MEDIA use of subjective or vague statements that may not be literally true. • Hits—user requests for a file. • Uniform Commercial Code distinguishes puffery from • Impressions—number of times a viewer sees an ad. specific, quantifiable statements. • Click-throughs—user clicks ad for more information. ETHICS IN PUBLIC RELATIONS • View-through—measure response over time. • Issues include performing services for companies that produce unsafe products. • Public Relations Society of America’s Code of Professional Standards prohibits promoting products or causes widely known to be harmful.