Chapter 13 Advertising and Public Relations

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Chapter 13 Advertising and Public Relations
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The Nature and Types of Advertising

• Defined
• paid
• non-personal
• mass-media
• Functions of Advertising
• Social
• Business deposit in the BE bank
• Economic

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THE VALUE OF ADVERTISING

• increases the number of units sold and allows
  lower sales prices

SocialImportance
BusinessImportance
EconomicImportance
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Objectives of Advertising
to develop initial demand
INFORM
REMIND
PERSUADE
increase demand for an existing product
to reinforce previous promotions.
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Advertising and Market Share

• New brands spend proportionately more for
  advertising than old ones.
• A certain level of exposure is needed to affect
  purchase habits.
• Beyond a certain level, diminishing returns set
  in.
• Advertising Response Function

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Advertising Response Function
Optimal Advertising
Sales or Market Share ?
Advertising Expenditures ?
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Advertising and the Consumer

• Advertising may change a consumers attitude
  toward a product.
• Advertising can affect consumer ranking of brand
  attributes. PERSUASIVE

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Major Types of Advertising
Enhance corporations identity
Institutional Advertising
Advocacy advertising
Companys image
Pioneering
Product Advertising
Competitive
Comparative
Specific product
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Product Advertising
Primary demand
Demand for a specific brand
Comparative
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Advertising Campaign
A series of related advertisements focusing on a
common theme, slogan, and set of advertising
appeals.
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Steps in Creating an Advertising Campaign
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Setting ObjectivesDAGMAR Approach
Defining Ad Goals for Measured Advertising Results
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DAGMAR Objectives

• Measure effects of August 21 - October 1 1999
  advertising campaign on consumers
• Target audience 25-49, HH Incomes of gt50K
• Awareness objective from less than 10 to 50 in
  the post-wave (November 1999)

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Creative Decisions
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Advertising Appeal
Reason for a person to buy a product.
Desirable, exclusive, and believable advertising
appeal selected as the theme for a campaign.
Unique Selling Proposition
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Common Advertising Appeals
Value
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
Reason for use of celebrity spokespeople
Admiration
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 Consciousness
Centers around environmental protection
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• Copy
• headline
• subhead
• body copy
• slogan

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Steps in Creating an Advertising Campaign
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Media Types Advantages Disadvantages
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Newspapers 19

• Short lead times
• Coop Advertising

• Short lifespan
• Low pass-along rate
• Color capabilities
• Selectivity of narrow
• markets

LOCAL
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Magazines 5

• Image reproduction
• Long life
• High selectivity

• Long lead time

NATIONAL
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Radio 8

• Low cost
• Short lead times
• High selectivity

• No visual treatment
• Short life span
• Highly fragmented
• audience

LOCAL
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Television 25

• Mass coverage
• Low cost per customer
• Demographic
• selectivity
• High color capabilities

• High execution cost
• Skepticism
• Technology
• Clutter

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Outdoor Media

• Geographic selectivity
• Low costs

• High noise level

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Media Selection Considerations
What media?
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Rating, GRPs

• CSI TV show
• 300,000 per 30 seconds
• 18 - rating. HH tuned to the show / total
  households
• If we had 2 commercials per week for 4 weeks,
  Friends would accumulate ___ GRPs. GRP Reach(as
  given by ratings) Frequency
• GRP
• GRP

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CPM (Cost Per Thousand)

• 4-color ad in Sports Illustrated
• Cost 10,000,000 (10 Million)
• Reached 2.0 Million readers
• Cost to reach 1 person
• CPM Cost per person 1000
• CPM
• CPM for ESPN the Magazine 6000

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CPM for SuperBowl

• The super bowl ads cost an average of 2.2
  million
• Estimated audience of 43,618,000
• CPM 50.44

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CPM

• Vehicle Circulation Cost
• TV Guide 12,130,300 149,100
• Word Up! 73,700 5,455
• Dog Fancy 321,700 16,510

12.29
74.02
51.32
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Media Scheduling
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Media Scheduling (p. 457)
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Public Relations
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Functions of Public Relations
Press Relations
Product Publicity
Corporate Communications
Lobbying
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Product Placement

• Product/Brand Placement
• Advertainment
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