Chapter Objectives

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